Economic Research Associates (ERA) Report February 17, 2004 Mark Lewis, City Manager

Original Study The original feasibility study for the arena was completed on April 12, 2002 by ERA and recommended: –6,000 to 9,000 seats in the arena –Approximately 30 suites and 500 club seats –Sports bar/restaurant

Summary Update The summary update was completed February 16, 2004 by ERA with the following recommendations for the Arena: –10,500 seat arena –Approximately 24 suites and 500 club seats –Arena club area –Clear exhibition space for trade shows –Approximately 5,000 square feet of meeting rooms

Summary Update (cont.) The updated numbers are based on the following information: Average per event attendance is approximately 4,800 but a larger venue is needed to attract larger events Average per event attendance is approximately 4,800 but a larger venue is needed to attract larger events 3 professional league sports teams will be occupying the arena 3 professional league sports teams will be occupying the arena Approximately 105 event days Approximately 105 event days

Arena - Preliminary Design

Other Venues that City Subsidizes Billy Hebert Field $230,000 Billy Hebert Field $230,000 Civic Auditorium $215,000 Civic Auditorium $215,000 Fox Theatre $350,000 * Fox Theatre $350,000 * *Amount subsidized when Fox Theatre was open

Sources and Uses Sources of Funds Infrastructure Reinvestment Fund$ 52.5 million Infrastructure Reinvestment Fund$ 52.5 million Special Projects Fund$ 1.5 million Special Projects Fund$ 1.5 million Gas Tax$ 1.3 million Gas Tax$ 1.3 million Measure K$ 1.5 million Measure K$ 1.5 million Public Facilities Fees$ 13.1 million Public Facilities Fees$ 13.1 million Ports Prepaid$ 1.2 million Ports Prepaid$ 1.2 million Naming rights, Arena$ 1.0 million Naming rights, Arena$ 1.0 million Bond Issuance$ 37.3 million Bond Issuance$ 37.3 million Total Sources of Funds$109.4 million Amounts as of February 17, 2004 Amounts as of February 17, 2004

Sources and Uses (cont.) Uses of Funds Arena$ 65.1 million Arena$ 65.1 million Stadium$ 13.4 million Stadium$ 13.4 million Public Improvements$ 7.2 million Public Improvements$ 7.2 million Other Related Expenses$ 12.8 million Other Related Expenses$ 12.8 million Contingency$ 10.9 million Contingency$ 10.9 million Total Uses of Funds$109.4 million Amounts as of February 17, 2004 Amounts as of February 17, 2004

STOCKTON EVENTS CENTER

Bond Issuance Maximum Guaranteed Maximum Price (GMP) for City Council consideration March 2, 2004 Maximum Guaranteed Maximum Price (GMP) for City Council consideration March 2, 2004 Maximum Bond Issuance of $47 Million for City Council consideration March 2, 2004 Maximum Bond Issuance of $47 Million for City Council consideration March 2, 2004 Receive Final Guaranteed Maximum Price (GMP) from Contractors by April 2, 2004 Receive Final Guaranteed Maximum Price (GMP) from Contractors by April 2, 2004 Bond Issuance on April 16, 2004 Bond Issuance on April 16, 2004

Benefits Analysis Annual Economic Impacts Gross Annual on-site revenues approximately $15 million Gross Annual on-site revenues approximately $15 million Operating expenditures approximately $7.98 million Operating expenditures approximately $7.98 million –$5.19 million wages (174 Full Time Equivalent employees) –$2.78 million non-wage costs Estimated 506,000 annual event attendees Estimated 506,000 annual event attendees –30% from outside the County estimated to spend $702,000 annually for eating & drinking, lodging, transportation and retail Arena will create a total of 205 new jobs Arena will create a total of 205 new jobs

MASTER SITE PLAN