HVS 205 W Randolph Street, Suite 1650 Chicago, Illinois Presented to: Convention Center Hotel - Finance Subcommittee Economic Impact Analysis May 18, 2010

HVS 205 W Randolph Street, Suite 1650 Chicago, Illinois Overview 1.Does Lost Business = Demand Potential? 2.Substitution Effect (i.e. Displacement) 3.Estimate of Incremental Room Night Demand 4.Direct Spending Estimate 5.Spending Categories 6.Multiplier Effect 7.New Tax Revenues

HVS 205 W Randolph Street, Suite 1650 Chicago, Illinois Lost Business Analysis Event YearEventsAttendanceRoom Nights 2006 CY Total Lost218549,635997,620 Winnable2664,850154,757 Citywides1553,250128, CY Total Lost195558,391814,710 Winnable3169,560174,198 Citywides1555,600141, CY Total Lost206623,075906,642 Winnable2452,500114,383 Citywides1543,60096, CY Total Lost235793,0701,061,154 Winnable26112,750151,285 Citywides1699,800120,705 Four-Year Totals Total Lost8542,524,1713,780,126 Winnable107299,660594,623 Citywides61252,250486,852 Percent of Total7.1%10.0%12.9% Sources: HVS, Event Planners, KCCVA

HVS 205 W Randolph Street, Suite 1650 Chicago, Illinois Incremental Room Nights: Substitution Effect Lost Room Nights = 128,340 Regression Coefficient = 1, Citywide Events 77 Event Days Incremental Room Nights = 98,494 3

HVS 205 W Randolph Street, Suite 1650 Chicago, Illinois Sources of New Spending Delegates = $311 per delegate per day Organizers = $142 per attendee Exhibiting Companies = $399 per attendee 4

HVS 205 W Randolph Street, Suite 1650 Chicago, Illinois Direct Spending Estimates Summary of Direct Spending Delegate Spending $ 32,100,000 Event Organizer Spending 9,000,000 Exhibiting Company Spending 25,200,000 Total Direct Spending $ 66,300,000

HVS 205 W Randolph Street, Suite 1650 Chicago, Illinois Direct Spending by Industry Category 6 IndustryAmount% of Total Retail Trade $ 5,878,2688.9% Transit / Ground Transportation 4,317,0186.5% Advertising Services 1,059,7321.6% Equipment Rental 3,561,5995.4% Professional / Technical Services 5,800,5298.7% Amusement / Recreation 931,6991.4% Sporting Events 107,8410.2% Accommodations 25,045, % Food and Beverage Places 14,322, % Facility Rentals 2,656,6964.0% Other Services 2,642,9544.0% Total Direct Spending $ 66,323, % Rounded $ 66,300, %

HVS 205 W Randolph Street, Suite 1650 Chicago, Illinois Multipliers IndustryOutputEarningsJobs Retail Trade Transit / Ground Transportation Advertising Services Equipment Rental Professional / Technical Services Amusement / Recreation Sporting Events Accommodations Food and Beverage Places Facility Rentals Other Services

HVS 205 W Randolph Street, Suite 1650 Chicago, Illinois Total Economic Impacts 8 IndustryOutputEarningsJobs Retail Trade $ 11,481,433 $ 2,719, Transit / Ground Transportation 9,138,264 2,556, Advertising Services 1,832, , Equipment Rental 5,691,791 1,003, Professional / Technical Services 10,305,220 2,599, Amusement / Recreation 1,798, , Sporting Events 224,558 70, Accommodations 45,993,035 11,726, Food and Beverage Places 28,617,576 7,580, Facility Rentals 4,713,244 1,415, Other Services 5,134,995 1,200, Total Annual Impacts $ 124,930,945 $ 31,754,7071, Rounded $ 124,900,000 $ 31,800,0001,333

HVS 205 W Randolph Street, Suite 1650 Chicago, Illinois Sources of New Tax Revenues 9 Name of Tax 1 Applicable Spending Categories Tax Rates %$ Convention & Tourism Tax HotelHotel7.500% Convention & Tourism Tax RestaurantMeals2.000% Sales Tax Hotel, Retail, Meals, Rentals2.375% Utilities TaxGas and Electric10.000% Arena Fee AccommodationsHotel $ 1.50 Rental CarsCar Rental $ 4.00 Aviation Department Charges Auto Rental Concession FeeCar Rental10.000% Rental Car FacilityCar Rental $ 3.00 Bus Transportation SystemCar Rental $ 2.10 Earnings TaxEmployee Earnings1.000% 1 Gaming taxes and user fees at ticketed events would be additional, but are considered insignificant. Sources: City's Finance Department, Aviation Department, Entertainment Center District

HVS 205 W Randolph Street, Suite 1650 Chicago, Illinois Estimates of New Tax Revenues 10 Name of Tax Spending Estimate Taxed Unit Incremental Tax Revenue Convention & Tourism Tax Hotel $ 45,993,035 Gross Sales $ 3,449,478 Convention & Tourism Tax Restaurant28,617,576Gross Sales572,352 Sales Tax105,635,342Gross Sales2,508,839 Utilities Tax 1 2,623,550Gross Sales262,355 Arena Fee Accommodations 2 98,250Room Nights147,375 Rental Cars 3 28,126Rental Car Days112,504 Aviation Department Charges Auto Rental Concession Fee1,406,296Gross Sales140,630 Rental Car Facility28,126Rental Car Days84,378 Bus Transportation System28,126Rental Car Days59,064 Earnings Tax31,754,707Earnings317,547 Total Incremental Tax Impact $ 7,654,521 Total Incremental Tax Impact (Rounded) $ 7,700,000 1 Based on Annual Industry Accounts, Advanced Statistics on GDP, which indicate Utilities share of GDP is 2.1%. 2 Based on HVS forecast of incremental new room nights in a stable operating year. 3 HVS assumes a price of $50 per rental car day as the basis for tax calculations. Sources: U.S. Bureau of Economic Analysis, City of Kansas City, HVS

HVS 205 W Randolph Street, Suite 1650 Chicago, Illinois THANK YOU