Highest and Best Use Study Presentation for the
Highest and Best Use Study Presentation for the Tennessee State Fairground November 19, 2008
Background
Background �Study was conducted in response to request for long-term lease of the racetrack �Study was originally focused on future use of the Fairgrounds, as a Fairgrounds – not moving �Board members posed two questions that refocused the study
The Questions �What is the future potential for the annual Tennessee State Fair? �How does the future of the Fair impact site and facility needs?
Components of the Study I. Assessment of Long-Term Viability of the Fair and Identification of Potential Future Uses of the Fairgrounds II. Recommendations of Future Fair and Fairground Use
Phase I Viability of the Tennessee State Fair Mission and Operating Realities Interviews Input and Comments Economic And Demographic Factors Current Physical Conditions Potential Future Uses Historical Events and Activities Competitive Factors Racetrack Lease Request for Information Fairground and Event Facility Trends
Mission & Vision
Mission To be a major venue for agricultural, exhibition, entertainment, cultural, and educational uses to enhance the economic and social benefits to the residents and visitors to the middle Tennessee region. Of primary importance is the staging of the annual Tennessee State Fair that showcases agriculture, commerce, technology, and industry of the region and provides quality educational and entertainment opportunities for its patrons.
Realities of the TN State Fair �Tennessee State Fair – a county/regional fair �Declines in paid and total attendance �Perceived “static” programming �Perceived safety issues �Decline in 4 -H participation
Viability of the TN State Fair �Tennessee State Fair’s future is very viable – potential to become a true State Fair �Requires changes to operating model, programming, facilities and, perhaps, site location �Potential for strengthened and new partnerships with key organizations
Input Process
Interviews, Input and Comments �Public meetings in January, May, August �Neighborhood district visioning session �Comments submitted at websites �Interviews of current users, stakeholders, interested parties and public officials
Site Characteristics
Current Physical Conditions �Access/Road System, Public Transportation �Site Size and Layout �Surrounding Land Uses �Zoning and Deed Restrictions �Topography and Special Conditions
Access Factors
Access Factors
Access Factors
Site Size and Layout �Approximately 117 acres � 35 acres in floodplain and embankments �About 23 acres for main facilities �About 14 acres related to grandstand, racetrack and pit areas
Topography and Special Features
Topography and Special Features
Topography and Special Features
Topography and Special Features
Demographic/Economic Factors
Economic & Demographic Factors �Population trends of the Nashville/Davidson County area �Socio-Demographics of area within 15 miles of the Fairgrounds
Market Penetration �In 2007, attendance represented 12. 6% of County resident population �True state fair should be able to garner 25% to 35% market penetration �Range of potential attendance – 350, 000 to 500, 000
Current Uses of Fairgrounds
Events and Activities Three Principal Business Units Annual Tennessee State Fair Monthly Flea Market Non-Fair Rentals and Leases
Competitive Factors
Competitive Factors Exhibition Space Competition Nashville Convention Center Gaylord Opryland Convention Center Local area hotels
Competitive Factors Spectator Event Facility Competition Municipal Auditorium Sommet Center Curb Event Center Allen Arena
Racetrack Lease/Operations
Racetrack Lease � Current lease provides base rent of $50, 000 per year for all facilities plus percentage of concessions revenues � Base rent – less than $140 per day for the facilities included in the agreement � Ten years ago the lease payment exceeded $250, 000 per year
Racetrack Lease �Though car counts are up in recent years, attendance has been unremarkable
Racetrack Attendance Trends
Racetrack Attendance Trends
Racetrack Lease �NASCAR’s televising of major races has negatively impacted weekly racing series attendance nationwide �Continued competition from Nashville Superspeedway and Music City Raceway
Fairground Trends
Fairground/Event Facility Trends Review of State and Regional Fairgrounds 100% have livestock and exhibit facilities 92% have horse show facilities 72% have an arena 69% have RV facilities (average of 250 to 300) 53% have a grandstand 14% have amphitheater
Fairground/Event Facility Trends �Multi-purpose event facilities �Addition of sports and recreation venues �Partnerships with carnival operators for permanent rides and entertainment areas �Lease of out lots for retail, commercial and hotel developments
Request for Information
RFI Approach �In June, issued RFI to public organizations and private companies �More than 100 – real estate developers, sports and entertainment, racing, economic development �Purpose of the RFI: Solicit interest and ideas for the possible redevelopment of the Fairgrounds
RFI Response �Nine Responses �Two Did Not Meet Development Criteria �Five Were Similar in Redevelopment Concepts and Impacts �Two Were Unique in Concept and Impact
RFI Responses �Presentation to Fair Board on August 5 �Public Presentation on Aug 20 by Southern Land Company TEAM 821 Tennessee Motor Sports Conservancy Wedgewood Partners
Southern Land Company Mixed-Use, Town Center Concept �For Sale/Rental Housing (1, 000 – 1, 100 Units) �Entertainment District (Amphitheater) �Retail/Commercial (350 K – 500 K sq. ft. ) �Park Area (43 acres)
Legion Park Single-Family Cottage District Residential Overlook District Green District IMAGE Mixed Use Entertainment / Venue District
Legion Park IMAGE
Team 821 Film and Entertainment Development �Film and Television Production Studio �Higher Education Film School �Mixed-Use Office and Housing �Arts and Entertainment Venue
Browns Creek Media Village
Browns Creek Media Village
TN Motor Sports Conservancy Sports and Entertainment District � NASCAR Speed Park � Water Park Hotel � Baseball Stadium � Hall of Fame � Entertainment District (800 K sq. ft. ) � RV Park � Educare � Amphitheater � Music City Motorplex
TN Motor Sports Conservancy
Wedgewood Partners Mixed Use Development �Office – 60%/65% �Retail – 15%/20% �Housing – 15%/20%
Wedgewood Partners
Wedgewood Partners
Assessment of RFI Responses
Comparison of RFI’s �All would purchase the site at market value �TN Motor Sports Conservancy proposed the Fair remaining at the site, make substantial improvements to existing buildings �Wedgewood Partners proposed a site specific swap, building program and endowment
Mixed Use Development �Mixed use development (housing/retail/commercial) investment potential - $275 million to $1. 2 billion over 10 years �Benefits to County in form of real estate and sales taxes - $12 million to $42 million per year �Best meets the needs/desires of the surrounding neighborhoods
Other Commercial Development �Browns Creek Development investment potential of $500 million over 10 years �Benefits to County in form of real estate and sales taxes - $18 million to $20 million per year �Compatible with surrounding neighborhoods �Financially, more risk than mixed-use development
Motor Sports/Entertainment �TN Motor Sports Conservancy investment potential of $150 million to $160 million �Benefits to County in form of real estate taxes – $2. 5 million to $3. 0 million per year �Least compatible with surrounding neighborhood �Question as to market potential for continued racetrack operation
Options for the Fairgrounds
Options for the Fairgrounds �Highest and best future use(s) of the Fairground site depends on one of two choices: Continue as county/regional fair Re-invent as true State Fair
Operate as County/Regional Fair Required changes to operations and facilities: Consider taking over racetrack operations Contract with private management company Plan and implement landscaping, beautification and building upgrades - $5. 5 M to 7. 5 M Create a foundation for capital projects and educational programs
Re-Invent the TN State Fair Initial Options for Site: Move to another site and construct a new Fairgrounds Make significant changes to existing site layout, buildings and structures
Re-Invent the TN State Fair Initial Options for Site: Move to another site and construct a new Fairgrounds Site size ranges between 225 acres and 380 acres
Range of New Fairground Costs
New Governance and Focus �Wholesale change in governance model Fair Authority Division of State Department/Agency �Fair must be more “state” focused in educational programming, competitive exhibits, sponsorships and attendance appeal
Re-Invented Fair Impacts to Site Highest and best use for current site is a mixeduse/commercial development Best addresses issues of: Neighborhood compatibility Fiscal benefits to local and state government Catalyst for growth/development of South Nashville area
Re-Invented Fair Impacts to Site Motor Sports and Entertainment Development Historical operations and current market factors do not support projected attendance Development concept lacks compatibility with surrounding neighborhoods
Funding a New Fairgrounds �Sale of fairground site at highest market value �Dedication of portion of future property taxes or fees �Partnership with State of Tennessee �Major donations/capital drive and naming rights sponsorships
Next Steps For Metro �Decide what the Tennessee State Fair will be in the future �Determine needed facilities for the future Tennessee State Fair
Highest and Best Use Study Presentation for the Tennessee State Fairground November 19, 2008
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