Randy J.
10-03-2005, 11:19 PM
I know not many of you care about this but I do very much and this would be a great thing to happen for this city whether you like soccer or not. Just something to create jobs and another source of recreation and entertainment for our city:
Supporters say projections buttress their arguments for building a home for Wizards
Study sees upside to soccer complex
By FINN BULLERS and PETE GRATHOFF
The Kansas City Star
Building a major-league soccer complex in Johnson County could spawn thousands of jobs, pump the economy and give the Kansas City Wizards a place to call home.
Those conclusions and many more are contained in an updated study to be released Wednesday by the Greater Kansas City Sports Commission & Foundation. The study, a copy of which The Star obtained Saturday, shows that interest in soccer is booming nationwide.
And with it, soccer complex supporters say, is a potential windfall for someone willing to take a risk and pony up the money to build a 22,000-seat stadium, retail shops and youth soccer fields west of State Line Road in the next three years.
That someone — be it the county, a private investor or some combination — was not identified in the study.
The updated study, conducted by Convention, Sports & Leisure of Minneapolis, a nationally recognized consulting firm that did work on the Sprint Center, shows that economic benefits to the Kansas City region could eclipse the projection made three years ago, when the study was first commissioned.
Those who helped finance the update — the Johnson County Commission, Lenexa, Olathe, Overland Park, Shawnee and an unidentified prospective owner of the Wizards — began Saturday to digest the details of the 190-page study.
On the surface, the numbers look impressive:
■ Total economic impact over three decades: $2.4 billion.
■ Annual new revenue to Johnson County: $79 million.
■ Annual new tax revenue: $9.6 million — $5.2 million to Kansas, $2.6 million to Johnson County, $1.8 million to cities.
■ New jobs created: 3,250.
■ Annual attendance: 1.4 million.
■ Bottom-line cost of the complex: $89 million to $125 million, including land.
“What the study shows is that this project has tremendous promise. There is just an overwhelming need for more youth soccer fields in this area,” said attorney Fred Logan, co-chairman of the original study.
But, Logan cautioned, “You have to be realistic and say, ‘Under certain circumstances, it might not turn a profit.’ ”
If attendance lags or corporate support through suites, sponsorships and naming rights doesn’t materialize, the operation could see an annual deficit of $1.4 million.
And in a county faced with more than $1 billion in infrastructure needs, rising taxes and a recent setback involving Overland Park’s quest for an arena, this might not be the time for a soccer complex.
Kansas City Wizards owner Lamar Hunt announced Dec. 9 that he intended to sell the team. But before an ownership group anywhere could buy the Wizards, he said, it had to have plans to build a new soccer-specific stadium.
Kevin Gray, president of the sports commission, and Dave Lindstrom, a Johnson County commissioner and former player for Hunt’s Kansas City Chiefs, are leading the local effort to build a stadium and complex.
The two hope to create an economic engine — a vibrant, 365-day-a-year destination spot. The stadium would stand at the center of 30 youth soccer fields covered with synthetic turf. Adjacent retail venues would complement the site.
They envision a trendy, family-friendly venue where parents could shop and have dinner while their children played on the youth fields.
“It’s well worth the risk now to take this chance, because once customized stadiums like this begin to emerge across the country … it is going to be difficult to get in the game,” said Gray. “It is the right project at the right time for Johnson County and the region.”
Within five years, Gray predicts, all cities with major-league soccer franchises will have customized complexes like the one proposed for Kansas City.
Three Major League Soccer stadiums have been constructed in recent years: the Crew Stadium in Columbus, Ohio; The Home Depot Center in Carson, Calif.; and Pizza Hut Park in Frisco, Texas.
Several communities and soccer franchises, such as Harrison, N.J.; Washington, D.C.; Denver; Chicago; Milwaukee; Toronto; and Rochester, N.Y., are building or plan to build soccer-specific stadiums.
Aside from Wizards games, the complex could host international and collegiate soccer games, concerts and other entertainment events and become home for the National Soccer Coaches Association of America in Mission and the National Intercollegiate Soccer Officials Association in Longwood, Fla.
Officials with both organizations said they would agree to be host to annual events at the complex and help communities lobby for national and international events.
Estimates show the proposed stadium could have about 35 events a year, including Wizards games and events such as lacrosse, rugby, field hockey, concerts, and games sponsored by the National Association of Intercollegiate Athletics; the Mid-America Intercollegiate Athletics Association; the National Collegiate Athletic Association, Divisions I and II; and the Kansas State High School Activities Association.
Attendance projections show that the stadium could attract 438,000 people, or an average of 12,500 per event. The soccer fields are projected to be in use 265 days a year for tournament play to league practices and draw more than 900,000 people.
The combined operation of the Wizards and the sports complex is estimated to generate a net income before franchise or stadium debt of $800,000 in 2008, which the study says represents an 8 percent profit margin.
That is estimated to increase slightly, to $1.1 million, in five years.
The study also says that Johnson County still has room for retail ventures.
Assuming all proposed retail projects now under consideration are built, Johnson County can still support between 245,000 and 430,000 square feet of additional retail space in the next five years, the study said.
At first blush, Johnson County Commissioner Ed Peterson said, the study makes “fairly reasonable assumptions that could make some financial sense” with a “reasonable likelihood that the county can get its investment back.”
But, the soccer complex won’t be built without an infusion of private and public money, which might include a combination of operating income, ticket surcharges, registration fees, STAR bonds, county and city sales tax increases, and tax increment financing.
The study identifies such funding options as $70.3 million in STAR bonds, $81 million to $203 million in increased county sales taxes, $16 million to $41.5 million in increased city sales taxes and $17 million in tax increment financing.
“It’s not going to happen if government doesn’t step in,” Peterson said. “We then need to establish if it is needed or if it is wanted.”
A site has yet to be located, and Lindstrom said it’s incumbent upon cities to put together their own groups to determine whether a soccer complex has merit. “These cities have to take a leadership position if they want such a complex,” he said.
The next step is for city and county officials, a potential ownership group and Major League Soccer to analyze the report.
“Is this a lot of money? Sure. But the benefits far outweigh the risks. This is good for the whole metropolitan area,” Gray said.
“We’re going to bring a lot of energy and passion to the table, because our goal is not just to do this study and let it sit on a shelf.”
To reach Finn Bullers, call (816) 234-7705 or send e-mail to fbullers@kcstar.com.
Supporters say projections buttress their arguments for building a home for Wizards
Study sees upside to soccer complex
By FINN BULLERS and PETE GRATHOFF
The Kansas City Star
Building a major-league soccer complex in Johnson County could spawn thousands of jobs, pump the economy and give the Kansas City Wizards a place to call home.
Those conclusions and many more are contained in an updated study to be released Wednesday by the Greater Kansas City Sports Commission & Foundation. The study, a copy of which The Star obtained Saturday, shows that interest in soccer is booming nationwide.
And with it, soccer complex supporters say, is a potential windfall for someone willing to take a risk and pony up the money to build a 22,000-seat stadium, retail shops and youth soccer fields west of State Line Road in the next three years.
That someone — be it the county, a private investor or some combination — was not identified in the study.
The updated study, conducted by Convention, Sports & Leisure of Minneapolis, a nationally recognized consulting firm that did work on the Sprint Center, shows that economic benefits to the Kansas City region could eclipse the projection made three years ago, when the study was first commissioned.
Those who helped finance the update — the Johnson County Commission, Lenexa, Olathe, Overland Park, Shawnee and an unidentified prospective owner of the Wizards — began Saturday to digest the details of the 190-page study.
On the surface, the numbers look impressive:
■ Total economic impact over three decades: $2.4 billion.
■ Annual new revenue to Johnson County: $79 million.
■ Annual new tax revenue: $9.6 million — $5.2 million to Kansas, $2.6 million to Johnson County, $1.8 million to cities.
■ New jobs created: 3,250.
■ Annual attendance: 1.4 million.
■ Bottom-line cost of the complex: $89 million to $125 million, including land.
“What the study shows is that this project has tremendous promise. There is just an overwhelming need for more youth soccer fields in this area,” said attorney Fred Logan, co-chairman of the original study.
But, Logan cautioned, “You have to be realistic and say, ‘Under certain circumstances, it might not turn a profit.’ ”
If attendance lags or corporate support through suites, sponsorships and naming rights doesn’t materialize, the operation could see an annual deficit of $1.4 million.
And in a county faced with more than $1 billion in infrastructure needs, rising taxes and a recent setback involving Overland Park’s quest for an arena, this might not be the time for a soccer complex.
Kansas City Wizards owner Lamar Hunt announced Dec. 9 that he intended to sell the team. But before an ownership group anywhere could buy the Wizards, he said, it had to have plans to build a new soccer-specific stadium.
Kevin Gray, president of the sports commission, and Dave Lindstrom, a Johnson County commissioner and former player for Hunt’s Kansas City Chiefs, are leading the local effort to build a stadium and complex.
The two hope to create an economic engine — a vibrant, 365-day-a-year destination spot. The stadium would stand at the center of 30 youth soccer fields covered with synthetic turf. Adjacent retail venues would complement the site.
They envision a trendy, family-friendly venue where parents could shop and have dinner while their children played on the youth fields.
“It’s well worth the risk now to take this chance, because once customized stadiums like this begin to emerge across the country … it is going to be difficult to get in the game,” said Gray. “It is the right project at the right time for Johnson County and the region.”
Within five years, Gray predicts, all cities with major-league soccer franchises will have customized complexes like the one proposed for Kansas City.
Three Major League Soccer stadiums have been constructed in recent years: the Crew Stadium in Columbus, Ohio; The Home Depot Center in Carson, Calif.; and Pizza Hut Park in Frisco, Texas.
Several communities and soccer franchises, such as Harrison, N.J.; Washington, D.C.; Denver; Chicago; Milwaukee; Toronto; and Rochester, N.Y., are building or plan to build soccer-specific stadiums.
Aside from Wizards games, the complex could host international and collegiate soccer games, concerts and other entertainment events and become home for the National Soccer Coaches Association of America in Mission and the National Intercollegiate Soccer Officials Association in Longwood, Fla.
Officials with both organizations said they would agree to be host to annual events at the complex and help communities lobby for national and international events.
Estimates show the proposed stadium could have about 35 events a year, including Wizards games and events such as lacrosse, rugby, field hockey, concerts, and games sponsored by the National Association of Intercollegiate Athletics; the Mid-America Intercollegiate Athletics Association; the National Collegiate Athletic Association, Divisions I and II; and the Kansas State High School Activities Association.
Attendance projections show that the stadium could attract 438,000 people, or an average of 12,500 per event. The soccer fields are projected to be in use 265 days a year for tournament play to league practices and draw more than 900,000 people.
The combined operation of the Wizards and the sports complex is estimated to generate a net income before franchise or stadium debt of $800,000 in 2008, which the study says represents an 8 percent profit margin.
That is estimated to increase slightly, to $1.1 million, in five years.
The study also says that Johnson County still has room for retail ventures.
Assuming all proposed retail projects now under consideration are built, Johnson County can still support between 245,000 and 430,000 square feet of additional retail space in the next five years, the study said.
At first blush, Johnson County Commissioner Ed Peterson said, the study makes “fairly reasonable assumptions that could make some financial sense” with a “reasonable likelihood that the county can get its investment back.”
But, the soccer complex won’t be built without an infusion of private and public money, which might include a combination of operating income, ticket surcharges, registration fees, STAR bonds, county and city sales tax increases, and tax increment financing.
The study identifies such funding options as $70.3 million in STAR bonds, $81 million to $203 million in increased county sales taxes, $16 million to $41.5 million in increased city sales taxes and $17 million in tax increment financing.
“It’s not going to happen if government doesn’t step in,” Peterson said. “We then need to establish if it is needed or if it is wanted.”
A site has yet to be located, and Lindstrom said it’s incumbent upon cities to put together their own groups to determine whether a soccer complex has merit. “These cities have to take a leadership position if they want such a complex,” he said.
The next step is for city and county officials, a potential ownership group and Major League Soccer to analyze the report.
“Is this a lot of money? Sure. But the benefits far outweigh the risks. This is good for the whole metropolitan area,” Gray said.
“We’re going to bring a lot of energy and passion to the table, because our goal is not just to do this study and let it sit on a shelf.”
To reach Finn Bullers, call (816) 234-7705 or send e-mail to fbullers@kcstar.com.