Community Center Study 2010

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Victoria Community Center: Market Analysis and Feasibility Study

February 2010


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Victoria Community Center: Market Analysis and Feasibility Study

February 2010

TABLE OF CONTENTSIntroduction 3

CHAPTER 1: OVERVIEW OF THE COMMUNITY CENTER

Facility Description 5

Rental Spaces 5

Photographs 8

User Profiles 10

Current Economic Impact 14

Assumptions 15

Current Impact 16

CHAPTER 2: OPPORTUNITIES ASSESSMENT

Customer Reviews 18

Comparison Profiles 20

Fee Comparison 27

Development Scenarios 30

Forecasted Economic Impacts, Scenarios 1-3 31

Scenario Timing 35

CHAPTER 3: RECOMMENDATIONS

Marketing Recommendations 37

Rental Rate Recommendations 51

Facility Improvement Cost Estimate 54

CHAPTER 4: FINAL IMPACT ANALYSIS 59


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Victoria Community Center: Market Analysis and Feasibility Study 3

February 2010

INTRODUCTION

In June 2009, the City of Victoria, Texas, engaged Avalanche Consulting, Inc. to conduct a

market analysis and feasibility study of Victorias Community Center. The study was sparked by

the Citys desire to increase the Centers economic impact on the area and better serve

residents needs. Doing so will require facility upgrades and more targeted marketing activities.

It is our goal to help the City identify what specific future investments will maximize the

Centers value to the area.

As illustrated below, several steps are required to conduct the Study. The consulting teams

first step was to assess the current state of the Community Center. We toured the Center and

discussed the facilitys strengths and challenges with Parks and Recreation Staff and the Parks

Commission. Following the tour, we studied facility usage, revenue, and expenditures.

Avalanche conducted an economic impact analysis of the Center based on current utilization

rates. The results of this baseline assessment are presented in this Study, which comprises

Chapter 1 of the Market Analysis and Feasibility Study.

The teams next step was to assess opportunities for improving the Center (Chapter 2) .

Avalanche interviewed prior customers about their experiences. We also examined five

benchmark community centers in Texas and contrasted their space, location, bookings, and fee

structure against Victorias.

Through discussions with the City and a meeting with BRW+ Architects, three future

development scenarios were presented. In Scenario 1, the City would make necessary repairsto the Center, but would not change the function or facilities within the Center. In Scenario 2,

the Arena would be demolished and, in its place, the City would construct 23,162 square feet of

additional meeting space, including a large exhibit hall and six meeting rooms. In Scenario 3,

the Arena would be demolished and replaced with an exhibit hall (Scenario 2) and the City

constructs a standalone covered pavilion elsewhere on the property. Avalanche forecasted the

estimated economic impact of each scenario and presented them in Chapter 2 of this Study.

Chapter 3 presents recommendations related to marketing, rental rates, and improvements to the

existing facilities. The chapter contains cost estimates for currently needed repairs as well as price

per square foot for new construction. To conclude this Study, Chapter 4 provides an impact analysison a fourth scenario that maintains the current Community Center and adds a new Exhibit Hall and a

new Covered Pavilion on the Centers grounds.


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Project Process

Chapter 1:Overview of

Current Center

Chapter 2:OpportunitiesAssessment

Chapter 3:Recommendations

Chapter 4:ExpectedOutcomes

Assessment Recommendations

Facility Description

User Profiles

Rental Structure

Economic Impact

Final Economic

Impact of Selected

Scenario

Customer Reviews

Competitor Profiles

3 Development Scenarios

Forecasted Impact of Each

Physical Improvements

Fee Structure

Target Audiences

Marketing


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CHAPTER 1: COMMUNITY CENTER OVERVIEW

FACILITY DESCRIPTION

The Victoria Community Center is a multi-faceted facility, with a variety of spaces capable of serving

the diverse needs of the City of Victoria, Victoria County, and surrounding communities in the region.

Located in Victoria, the Community Center is situated at the intersection of North Street and Ben

Wilson Street, near Highway 87.

The Center is owned and operated by the City of Victoria.The Centers three main facilities, grounds, and other

spaces are capable of hosting numerous events, including:

banquets, dances, trade fairs, and livestock shows to name

a few. The Center is the largest event space in Victoria,

and both the Dome and Annex are booked well in advance

for a majority of the year.

Rental Spaces

The following section provides a brief description of thepropertys facilities.

The Dome

The 12,305 square foot, 1,200 standing capacity Dome is the Centers largest and most updated

indoor space. On an annual basis, the Dome hosts numerous events, including: trade shows,

wrestling matches, festivals, dances, weddings, and car shows. The Dome is enclosed on all sides and

offers adjustable lighting, a stage, commercial kitchen, green room, and full sound system. (See page

6, Figure 1 for a photo of the Domes interior.)

The Annex

The Annex offers an additional 7,279 square feet and a 500 average seating capacity. Smaller than

the Dome, the Annex is equipped with four track-mounted dividers that allow the space to be

divided into a maximum of four, 75-person average seating capacity rooms. Amenities in the Annex

include adjustable lighting, a sound system, stage, and an attached loading dock and kitchen (Figures


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3 and 7). Also adjacent to the Annex is a large room capable of storing 400 long tables. The Annex

frequently hosts wedding receptions, business meetings, benefits, dances, and arts and craft shows

among others.

The Annex appears outdated. It is not equipped to easily accommodate technologies such as LCDprojectors for PowerPoint presentations, making hosting business meetings a challenge. Several

customers commented on the aged color palette and surface appearance. Track-based room

dividers appear bulky (Figure 1). Parks and Recreation Staff note that the Annexs roof needs to be

replaced.

The Arena

The 46,641 square foot, 1,625-seat Arena hosts 25-30 days of outdoor events each year, including

the Victoria Livestock Show, Camper Clinic RV Show, the South Texas Farm and Ranch Show, and

portions of other community events.

Nonetheless, the facility lacks appropriate dirt surfacing to host most rodeo events. Other attributes

limit the Arenas use for non-livestock events. The long, narrow configuration and seating on only

one side has been cited as a problem for spectators. Ventilation issues impact the Arenas

marketability during warm months of the year. Sound from the Arena can be heard from within the

Dome, and the Arena lacks a separate entrance. The Citys ability to schedule simultaneous events is

severely hindered, so the Arena is largely underutilized.

The Grounds Area

Alongside its facilities, the Center has a large and open grounds space capable of hosting carnivals,

circuses, exhibits, and other outdoor needs. Approximately 500 grass area and 1,000 paved parking

spaces are available for visitors (Figure 9). The lot has a limited number of RV spaces with the

electrical hookups attached to the Arenas outside wall.

Other Spaces and Equipment

Based on the site tour and discussions with personnel, storage space is a major issue. The Center

lacks ample space to stow the hundreds of tables and chairs when they are not being used for an

event. Figure 10 is an example of the server and electrical room, which is also used for storage.

Around 30 percent of events require use of the Centers kitchens. Both the Dome and Annex are

accompanied by large kitchens.


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In addition, a concession stand with refrigerator, wash stations, microwave, and ice machine is

located between the Dome and Annex. A $200 per day fee is charged to cover basic costs, and the

City does not receive an up charge on food or drink sales.

Garbage disposal has been problematic on event days. Due to the facility layout, rubbish from aDome event must be carried around the perimeter of the building and through the Arena when there

is an event taking place in the Annex.

While the Dome and the Annex offer sound systems the equipment is dated (Figure 6). The current

systems are not iPod accessible, which is a common request from event organizers.

Surrounding Land Use

The Center is surrounded by a sizable city sports

complex that includes 12 youth ball fields, fouradult softball fields, two soccer fields, municipal

swimming pool, 15,000 square foot skate park,

basketball and tennis courts. The Memorial High

School campus is located across the street at

3002 East North Street. The High School will be

transitioned into a middle school in 2011.

Next door to the Center is an event hall managed

and operated by the Jaycees. The Hall consists

of a large room, kitchen and restrooms.

Rental Fees

The Victoria Community Center has a variable rental structure, with weekday and weekend events

having different rates. Weekday rentals of the 12,305 square foot Dome are $750, while weekends

are $900. The 7,279 square foot Annex rents for $550 on weekdays and $675 on weekends.

Meanwhile the 46,641 square foot Arena rents for $450 regardless of the day and the Grounds for

$450 as well.

It is important to note, that unlike many other civic centers, Victoria does not charge additional feesfor services such as set up and tear down of tables and chairs, use of audio and visual equipment,

wireless internet access. Customers may engage the caterer of their choice, and the City does not

charge a catering surcharge.


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Figure 1: Dome Interior

Figure 1: Annex Interior

Figure 2: Annex Ceiling

Figure 2: Arena Ceiling

Figure 3: Arena Interior

Figure 4: Audio Equipment


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Figure 7: Dome Kitchen

Figure 9: Server and Electric Room

Figure 11: Exterior Behind Arena

Figure 8: Annex Loading Dock

Figure 10: Annex Kitchen

Figure 12: Pavilion


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USER PROFILES

As of the writing of this Study, the Victoria Community Center has booked 79 events in 2009, with

many events running for numerous days. The largest categories of events have been private

banquets and parties, public events and festivals, and conferences. Other common events include

trade shows and livestock events. The vast majority of facility users are local groups and have hosted

at the Center for many years. Although the Center has hosted sporting events such as wrestling

matches in the past, in 2009 to date the only sporting event was automotive-related.

The following two tables illustrate utilization of the Community Center by event type. The first table

shows percentages for 2009, and the second table shows how utilization has varied over the past

four years.

24.4%23.1%

17.9%

11.5%9.0%

6.4%3.8% 3.8%

0.0%

10.0%

20.0%

30.0%

Percent of Events per Category (2009)

Source: City of Victoria


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Private

Private parties include banquets, weddings, private dances, and fundraisers. These types of events

make up 24 percent of events hosted at the Center, the largest category and a significant source of

repeat business. These events generally make use of the Dome, sometimes incorporating the Annex

for additional space. Customers in this category are almost entirely local businesses and

organizations, requiring enough space to accommodate their members, invitees, and the public in

some circumstances.

Public Event / Festival

The Victoria Community Center hosts festivals and public events, roughly 23 percent of all eventseach year. The most common of these events are church festivals, but also include Czech Fest and

the July 4th Concert and Fireworks Show. Public events and festivals are good opportunities to bring

the community together, and Center offers the largest space in the region to host a diversity of

activities, booths, eating areas, and visitors, with both outdoor and indoor options.

0%

5%

10%

15%

20%

25%

30%

35%

Change in Facility Usage: 2006-2009

2006

2007

2008

2009

Source: City of V ictoria


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Professional

Professional events loosely include business meetings, educational sessions, seminars, and

conferences, and make up 18 percent of events hosted at the in 2009. Examples of professional

events include a Parenting Legal Clinic, the MidCoast Hurricane Conference hosted by the American

Red Cross, and Parent Conferences. These events generally use the Dome for large speaking sessions

and the Annex for breakaway smaller group meetings.

Agricultural / Livestock

Agricultural and livestock events in Victoria consist of a variety of horse, livestock, and dog shows,

throughout the year. This category made up only 9 percent of events hosted at the Victoria

Community Center in 2009. The largest event in this category in 2009 was the Victoria LivestockShow and Carnival, which ran from February 19 until March 1. The livestock show is hosted in the

Arena. As mentioned earlier, design and dirt surface issues prohibit the use of the Arena by most

rodeo events.

Trade Show

Trade shows make up roughly 12 percent of customers and generally occurring annually for many

years. Frequent events include the Bridal Fair, Home Product Show, and Victoria Gem and Mineral

Show. These trade shows and exhibits are almost all organized by local groups and cater to a local

and regional audience.

Youth

Youth events are a relatively small category at the Victoria Community Center, including a broad

range of events geared towards children and young people, including the New Wine Ministries Youth

Camp, the Public Librarys Summer Reading Program Party, Head Starts Fam ily Celebration and a

Career Fair. Alongside professional and sporting events, youth programming offers and opportunity

to work with children on education, healthy living, and safety. This category also has a high potential

for growth in Victoria.

Entertainment

Events in this category include concerts, comedy shows, and circuses. This category makes up the

smallest percentage of hosted events at the Center in 2009 and has been in a steady decline over the

past three years. The annual Shriners Circus has been a consistent event for many years. The


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dropoff in entertainment events can be attributed to the Country Opry, which stopped renting the

Center for its annual show two years ago.

Sports / Automotive

Although they have hosted sporting events such as wrestling matches in the past, in 2009 the

Victoria Community Center hosted no sporting events besides the equipment distribution for the

Crossroads Youth Football League, and only two Automotive events, a Monster Truck Show and a

Custom Car and Motorcycle show. Because of the infrequency of these events and increasing

national interest in new sporting activities and continued interest in automotive, this category

represents an area of high potential growth for the VCC.


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CURRENT ECONOMIC IMPACT

This economic impact analysis examines spending patterns and tax revenues brought into Victoria

County by the Victoria Community Center (the Center).

Out of county visitors generate the highest level of economic impact for community centers.

Travel is considered an export industry because spending by tourists is a new injection of money into

the local economy, generating revenue and jobs at other local venues. Visitors support the local

economy with their shopping dollars, yet use virtually no city or county services, such as schools and

local government.

The key inputs into this analysis were based on a review of the Centers current expenditures,

revenues, and recent bookings. Avalanche met with City of Victoria officials and stakeholders to gain

additional insight on the Centers impact.

The following is a basic conceptual formula for the Centers impact as applied in this study:

Annual Economic Center Impact =

(Center Operations Spending x Multipliers) + (Total Visitor Spending x Multipliers)

As shown in the above equation, the economic impact of the Center derives from two major sources:

(1) annual expenditures by the Center on supplies, salaries, and services, and (2) annual-out-of-

county visitor spending on lodging, food, beverages, local transportation, entertainment and other

activities. The spending by both sources ripple through the local economy, boosting incomes and

spending for many firms and households not directly associated with Center events.

To estimate the effect the Center has on Victoria County, an input-output model was built using data

on Victoria County. Input-output models are used to estimate multipliers that, when applied to

direct spending, reveal the indirect impacts. A multiplier of 1.5, for example, indicates that for every

$1 spent by the Center or its visitors, an additional $0.50 is generated in the local economy.

In this analysis, direct effects are the sales, employment, and wages generated by operational and

visitor dollars. Indirect impacts are generated by local businesses companies selling to the Center

and its visitors (such as concession vendors) and the household spending resulting from an increase

in wages (and jobs) at these local companies. Together, the direct and indirect effects capture a

broad range of services in the local economy.


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Direct impactsare attributable to the Centers operations, such as payroll and local

purchases, as well as spending by out of county event attendees at local hotels, restaurants,

and retail establishments.

Indirect impacts are attributable to the additional demand for local goods and servicesgenerated by Center employees and out-of-county visitors to the Center due to their ripple

effect in the economy.

The impact assessment includes overnight and day visitors traveling to Victoria County to attend

Center events. Excluded from the study are expenditures outside the Center from permanent

residents of Victoria County. This off-site spending by locals does not represent new dollars into the

local economy.

Inputs

For the purposes of this study, estimates were made based on current bookings and standard

expenditures of tourists (as experienced at similar facilities elsewhere in Texas). Avalanche

Consulting used conservative estimates of growth to formulate the following assumptions, and based

the impact analysis on 2008 calendar year activity (most recent complete year of activity):

The Centers total revenue (rental income plus hotel/motel tax) and operating budget for the

2008 calendar year were $470,591.

During the 2008 calendar year, the Center hosted 216 total events, including 84 public events

and 132 private events.

Of the 216 events hosted between January 1 and December 31, 2008, 171 attracted out-of-

county visitors which spent new money in the county.

Public and private events draw an estimated 6,467 out-of-county visitors to Victoria County

each year, which translates to approximately 1,070 room-nights. The number of room night

estimates includes 925 for 63 large public events plus an additional 145 associated with

guests attending private parties.

Events at the Center last from one to eleven days, with the average length being 1.4 days.

Each out-of-county visitor who stays overnight spends an average of $90 per night on hotel

accommodations and an additional $35 on retail, dining, and other miscellaneous

expenditures.


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Each out-of-county visitor who does not spend the night in a hotel will spend approximately

$35 per day of their stay.

Total non-hotel expenditures by out-of-county visitors attending Community Center events

are estimated to be $226,000 per year.

Total hotel expenditures by out-of-county visitors attending Community Center events are

approximately $96,000 per year.

Annual Economic Impact of Operations and Visitor Spending

The current economic impact of the Centers operations is shown in the following table:

Baseline: Current Configuration

Annual Economic ImpactVictoria Community Center

Sales/Output

Jobs

(FTE's) Annual Wages

DIRECT IMPACTS:

Facility Operations and Suppliers

Current $471,000 9 $182,000

Retail Spending by Visitors

Current $226,000 5 $106,000

Hotel Spending by Visitors

Current $96,000 2 $36,605

INDIRECT IMPACTS

Current $375,800 12 $294,839

TOTAL ECONOMIC IMPACT

Current $1,168,800 28 $619,444

The Center generates an economic impact on the county of$1.16 million per year.

28 jobsare attributable to direct and indirect output generated by the Centers expenditures

and visitor spending.

The Center and its visitors generate an estimated $619,400 in direct and indirect wages

annually.


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The mix of events at the Center weighs heavily toward private parties hosted by area

organizations and residents (61 percent of events), which cater primarily to a local audience

but do attract a small percentage of out of town guests.

Community Center customers that typically draw a higher percentage of out-of-countyvisitors, such as professional, trade, sports, youth-oriented, and entertainment events

comprise less than 40 percent of total activity.

Heavy local usage and a low operating budget attributes to the Centers relatively small

economic impact. (Avalanche Consulting, for example, conducted a similar analysis of the

Brazos County Expo Complex in 2008, which revealed that the Complex generates a $12.9

million annual impact.)


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CHAPTER 2: OPPORTUNITIES ASSESSMENTThe purpose of this chapter is to explore the potential for improving or repurposing the Community

Center in the future. It begins with recent customer comments about the strengths and weaknesses

of the facility. Next, it highlights seven competitor convention / community centers in Texas,

comparing them against the Victoria Community Center in terms of facility capacity and rental fee

structure. The chapter concludes with an examination of two future usage scenarios, contrasting the

projected economic impact of each option to aid the Citys decisions regarding investment in the

Center.

CUSTOMER REVIEWS

Avalanche contacted over 20 customers of the Victoria Community Center and conducted interviews

with 11 individuals. All customers contacted have been hosting events at the Center for over ten

years and expressed positive reviews of their relationships with the facilities. The following section

summarizes the most common responses from customers.

Facility Trends

The Center is most frequently the chosen venue for events because it has thegreatest guest capacity in the immediate region.

Staff was commended for exceptional customer service. The flexibility of having three connected facility types is seen as a positive

attribute because it allows for diverse programming during events. For example Czech Fest

can have dining and dancing in the dome, displays and the beer and wine show in the Annex,

and band member staging in the Arena.

The convenient location is a major draw. Events that have vendors and booths appreciate the ample space in the

Dome for set up.


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The venue grounds offer a nice alternative space for some events. The Center is booked for well over 200 days and evenings each year.

Customers know to book early (one year in advance for many) in order to secure their

preferred dates on the calendar.

Room for Improvement

Although most events choose the Center due to its large capacity, eight ofthe eleven interviewees expressed a desire for more space in both the Annex and Dome.

o Those seeking more Dome space were interested in additional dance floorand banquet spaces.

o Those seeking additional Annex space were interested in bigger trainingrooms. Some customers expressed concern with the austere interiors and would

like to see warmer aesthetic.

The lighting options could be improved, particularly by allowing forincreased flexibility and control of the lighting, possibly from a podium set up for speaking

events.

The audio/visual equipment could be modernized. Professional eventcustomers are interested in built-in screens for PowerPoint presentations, installed

projectors, and improved sound systems and acoustics.

Larger kitchen facilities would be helpful for some customers. Although smaller events had few problems, those that hosted over 1,000

guests would like additional and more convenient parking.

Some customers expressed concern that rental fees might increase withimprovements to the facility.


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COMPARISON PROFILES

A review of community and expo centers located in similar markets across Texas is helpful inunderstanding Victorias competitive position and opportunities for improvement.

When identifying Victorias comparison facilities, Avalanche Consulting sought communities with

similar (1) geographic positions to Victoria, (2) comparable distances from major cities and interstate

highways, and (3) regional population base. The following facilities were identified and profiled

below: Brazos County Expo Complex in Bryan-College Station, Taylor County Expo Center in Abilene,

San Angelo Civic Events Facilities in San Angelo, Lufkin Convention Facilities in Lufkin, Longview

Convention Complex in Longview, Nacogdoches County Expo Center in Nacogdoches, and the

Wichita Falls Multipurpose Events Complex in Wichita Falls.

Brazos County Expo Complex

The Brazos County Expo Complex (BCEC) was recently expanded

and now offers three modern facilities for a diverse range of

activities. The complex is located in Bryan-College Station in East

Texas off Highway 47. Similar to Victorias position between

Houston, San Antonio, and Corpus Christi, Bryan-College Station

is located roughly in a triangle between Houston, Austin, and

Waco. Along with visitors from outside, the BCEC serves Brazos

Countys population of 175,122 residents, roughly double

Victoria Countys 86,755. Similarly the Bryan-College Station

MSA has a population of 207,425 versus Victoria MSAs

population of 114,313. This is one of the larger communities

examined in this competitor study, but the BCEC has had strong

regional success and could potential offer significant lessons for

Victoria.

The BCEC consists of three primary facilities: the Arena, the

Pavilion, and the Exhibit Hall. The 70,000 square feet 3,000-seat

covered, open-air Arena hosts rodeos, livestock shows,

equestrian competitions, and other outdoor events. The 60,000

square foot pavilion has space for numerous horse stalls, livestock pens, and cattle ties. The 50,000

square foot exhibit hall building contains 28,830 square feet of usable space for business meetings,

conferences, trade shows, banquets, and other social events. Although the Arena is nearly twice as


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large as the Victoria Arena, the square footage to county population ratio of 0.4 is actually less than

Victorias ratio of 0.5.

The BCEC primarily hosts regional and local scale events, lacking the significant draw for national

scale rodeo and other events. The facilities continue to primarily target livestock, rodeo andequestrian events for the Arena and Pavilion. The Exhibit hall is marketed to tradeshow, fair, and

festival events. Local audience targets include Texas A&M University, residents, churches, non-profits

organizations, school districts, and FFA/4-H Clubs.

The BCEC offers a variety of rental options. For non-livestock events, the Arenas rental rate is $1,500

for non-ticketed events and $2,500 or 10 percent of gross sales for ticketed events. The Exhibit Hall

rents for $2,500 a day. The facility charges additional fees for services and every piece of equipment

and furniture, including podiums, tables, chairs, and banners.

Taylor County Expo Center

The Taylor County Expo Center (TCEC) resides in the

fourth largest competitor community, with 126,791

residents in Taylor County and 159,521 in the Abilene

MSA. Although Taylor County is 50 percent larger than

Victoria County, their respective MSAs are closer in size.

Although Abilene is located relatively far from major

metropolitan areas such as Dallas-Fort Worth, it is the

only competitor community located directly on an

Interstate Highway, I-20. Nonetheless, Abilenes relatively remote location in Central Texas offers acomparable geographic situation to Victoria.

The TCEC is an expansive development, consisting of over nine structures, including an Indoor

Coliseum, Outdoor Arena, Entertainment Pavilion, three exhibit spaces, and two barns. The Exhibit

space totals over 57,000 square feet including special event rooms. The 30,000 square foot Coliseum

has 5,000 permanent seats, and the Outdoor Arena is roughly the same size (45,000 square feet and

2,000 permanent seats). Although the TCECs arena is similar in scale to Victorias, the ratio of arena

square footage to county population is only 0.4 in Taylor County to 0.5 in Victoria.

The TCEC facilities, particularly the barns, Coliseum, and Arena are primarily utilized for livestock,rodeo, and equestrian events. Although there are numerous private parties and events in the exhibit

halls throughout the year, the majority of bookings are agriculture and animal-related events from

Team Roping to Rodeos to a Goat Clinic. Many of these livestock and rodeo events are on a large

scale, drawing farm and ranch shows with audiences from outside the county and even the state.


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The TCECs Coliseum rents for $2,500 a day plus utilities, while the 18,000 square foot Display

Building costs $1,200 for private events and $1,400 for public events. Similarly, the Big Country Hall

(8,000 square feet) has a rental rate of $900 for private events and $1,100 for public events. The

smaller TCEC structures rent for $400 or less.

San Angelo Civic Events Facilities

Like Victoria, San Angelo is not located on an interstate

highway and is more than two hours from a major

metropolitan center. Tom Green County has a population of

107,864, and the San Angelo MSA has a population of

109,563.

The City of San Angelo does not have a dedicated

convention complex but numerous civic event facilitiesowned by the City and managed by the Civic Events

Division, including the McNease Convention Center, City

Auditorium, and Coliseum. The Convention Center has

approximately 19,000 square feet of flexible exhibit space,

including special event rooms, and the Auditorium offers

1,570 permanent seats of theater space for speakers,

concerts, and other events. The Coliseum has 20,000

climate-controlled square feet and nearly 5,000 permanent

seats. The ratio of coliseum square footage to county

population is only 0.2, the lowest in this study, despite theirhosting of a large rodeo.

The Coliseum hosts the San Angelo Rodeo, one of the nations largest, and also can accommodate

concerts, ice shows, circuses, arena football, trade shows, and numerous other events. The

Convention Center has a flexible layout of space capable of hosting meetings, exhibits, trade shows,

and banquets. At over 80 years old, the Auditorium is home to the San Angelo Symphony and Civic

Ballet, as well as hosting frequent concerts and events, including past national attractions such as

Alison Kraus and a young Elvis Presley. Despite the national scale of some events, most events hosted

in the town are local users and frequently repeat users, such as the symphony with 7-8 performances

a year and the stock show and rodeo with several annual events.

The San Angelo Coliseum rents for $750 a day, while the McNease Convention Center has variable

pricing: $2,500 for conventions, $2,250 for non-commercial fundraisers, and $2,000 for non-

commercial non-fundraisers. The 12,000 square foot large meeting room in the Convention Center

rents for $1,500. Additionally, city council policy offers rental incentives for users who repeat five or

six times per year. The facility charges fees for equipment, furniture, and set-up services.


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capacity of 5,000). These facilities are located on a 100-acre site near downtown and convenient to

hotels and amenities. The rodeo arena has a square footage to county population ratio of 0.2.

The facilities host a wide variety of events, including rodeos, business meetings, conferences, trade

shows, dog shows, and festivals. Because of the metro size and location along the interstate, thecomplex plays host to a mixture of local, regional, and national events.

The facilities have rental schedules that vary depending on use. The Convention Center costs

between $1,200 and $2,000 for commercial uses and $400 for non-commercial. The Exhibit Hall

costs between $725 and $1,100 for commercial uses and $450 for non-commercial. The largest

Activity Room, at 650 square feet, rents for $50 commercial and $25 non-commercial. Additional

equipment rental fees apply.

Nacogdoches County Expo Center

The Nacogdoches County Expo Center (NCEC) is located in the City of Nacogdoches in Nacogdoches

County, which has a population of 62,768. Nacogdoches is situated in East Texas near the Louisiana

border. It is not located on an interstate highway.

The NCEC consists entirely of a 78,000 square foot covered open-air arena with 4,300 permanent

seats. Although there is no explicit exhibit building, there is a small amount of office and exhibit

space attached to the arena. Despite the size of the county, NCEC has the largest outdoor arena of

any competitor communities, with a square footage to population ratio of 1.2.

Despite the relatively removed location of Nacogdoches, the NCEC hosts a wide variety of events,primarily regional and local but with the occasional national draw. The facility is home to numerous

livestock, rodeo, and equestrian shows. Unlike many competitors, the NCEC has a very flexible space

capable of adapting to various needs, including carpeting the arena.

Recently, the NCEC has added a number of new events, including demolition derbies, motorcycle

rallies, fairs, cage fights, boxing, and circuses. Although many users include local groups such as the

Junior High, High School, Mexican Rodeo, and others, the facility sometimes can attract national

names for concerts when their tour routing will take them through the region. They also host the

National Buck and Bull Association. Because they are an open-air, non air conditioned facility, it is


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February 2010

difficult for them to host gun shows and electronic shows or other trade shows that require

overnight security.

The Expo Center rents at a base level of $650 for the 78,000 square foot facility, but numerous

additional fees apply for other services, including: $250 for use of the sky box, $150 for use of thebarns, $250 for set-up, $250 for use of the stage, $250 for clean-up, $1 per ticket for ticketed events,

and 10 percent of any merchandise sold. Some discounts are offered on a per case basis for non-

profits and schools.

Wichita Falls Multipurpose Events Complex

Wichita Falls Multipurpose Events Complex (MPEC) is

located in Wichita Falls MSA (population 147,328) in

Wichita County (population 127,321). The city is situated

in North Texas along the Oklahoma Border. Thiscommunity is the second largest competitor community

examined in this study.

Wichita Falls lies at the termination of Interstate 44,

which runs northward to Oklahoma City. Similar to

Victoria, Wichita Falls is not close to a major metro area.

The MPEC is an expansive and well-developed set of

facilities, including the J.S. Bridwell Ag Center, a 50,000

square foot livestock barn with usable floor space andarena seating for 1,200; the Key Yeager Coliseum, an

indoor arena of 30,000 square feet with 6,500 permanent seats; the MPEC Events Center exhibit hall,

totaling 57,141 square feet of usable floor space; and the Memorial Auditorium, a theater with 2,700

seats. The ratio of arena square footage to county population is 0.3, the second lowest among

competitor communities examined in this study.

Kay Yeager Coliseum is capable of hosting a wide variety of sporting events, including hockey,

basketball, tennis, soccer as well as motorcycle and auto events, livestock shows, rodeos, and other

equestrian and agricultural events. The facility is capable of being arranged for concerts, lectures,

and conventions as well. On the other side, the Events Center hosts numerous meetings, banquets,seminars, trade shows, and other convention events. The Auditorium has a long tradition of hosting

concerts and theater events from Duke Ellington to Garth Brooks to performances of Cats. The

facilities primarily serve a broad regional audience from throughout North Texas and Southern

Oklahoma.


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February 2010

Comparison of Texas Event Centers

ConventionSpace

SpecialEventRoom(s)

AssemblyBuilding

AssemblyBuilding

(permanentseats)

IndoorColliseum

IndoorColliseum

(permanentseats)

OutdoorCovered

Pavilion

OutdoorArena

RatioofArenaSFto

CountyPopulation

SecondPavillion

OpenAirEventSpac

e

RVHookUps

Victoria Community Center 7,279 SF yes no no 12,305 SF no 46,641 SF 1,625 seats 0.5 no yes n/a

Lufkin Convention Facilities 16,000 SF yes no no 90,000 SF 6,950 seats 62,500 SF no 0.8 no n/a n/a

Longview Convention Complex 40,000 SF yes no no no no 27,000 SF 5,000 seats 0.2 n/a yes n/a

Wichita Falls GPEC 57,141 SF yes yes 2,700 seats 30,000 SF 6,500 seats 32,400 SF 1,200 seats 0.3 no n/a n/a

Taylor County Expo Complex 57,000 SF yes no no 30,000 SF 5,000 seats 45,000 SF 2,000 seats 0.4 yes n/a n/a

Brazos County Expo Complex 28,828 SF no no no no no 70,000 SF 3,000 seats 0.4 yes yes 32

San Angelo McNease Convention Center 19,000 SF yes yes 1,570 seats 20,000 SF 4,898 seats no no 0.2 yes no n/a


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Rental Fee Comparison

Although the Victoria Community Center has lower rental base rates than some of its competitors,

they are comparable to others on a square footage basis. However, most competitor event centers

charge numerous fees that significantly raise the costs per square foot. Because these fees and

different facility sizes cause significant variation in the actual rates, Avalanche Consulting assessed

the rate at each facility for a standard speaking event, incorporating appropriate fees for furniture,

equipment, and set-up. These rates were then divided by the utilized square footage to give a

comparable variable for Victoria and competitors. The resulting variable reveals that competitor

locations rent convention space for between roughly $0.064 and $0.132 per square foot. At $0.067

per square foot, Victoria is just above the least expensive competitor, Lufkins Pitser Garrison Civic

Center with $0.064 per square foot.

This variable is highly flexible, however, because fees at other facilities can be greater or lower

depending on the amenities utilized and the type of event. Additionally, actual useable space doesnot always match total listed facility size. Nonetheless, Victoria charges rates nearly half of its most

expensive competitor, the San Angelo McNease Convention Center. Part of the reason for higher

rates at competitor facilities such as the Brazos and Taylor County Expo Centers is more up-to-date

structures and equipment.

$0.132

$0.095

$0.095

$0.088

$0.073

$0.067

$0.064

San Angelo McNease Convention Center

Brazos County Expo Complex

Taylor County Expo Center

Wichita Falls MPEC

Longview Convention Complex

Victoria Community Center

Lufkin Pister Garrison Civic Center

Convention Center Rental Rate per Square Foot (2009)


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Convention

Space

BaseRate

UtilityFees

TicketSurch

arge

FurnitureFe

es

A/VEquipm

ent

l

StageFees

DanceFloor

Fees

RVFees

VictoriaCommunity Center $825 n/a No No No No No Yes

Lufkin Convention Facilities $1020 Yes No n/a n/a Yes n/a n/a

Longview Convention Complex $1320 Yes No n/a n/a n/a n/a n/a

Wichita Falls MPEC $2000 Yes Yes Yes Yes Yes Yes Yes

Taylor County Expo Center $2500 Yes Yes No n/a n/a n/a Yes

Brazos County Expo Complex $2500 Yes Yes Yes Yes Yes Yes Yes

San Angelo McNease Convention Center $2500 Yes Yes Yes n/a No n/a n/a

Comparison Texas Event Center Fee Schedules


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DEVELOPMENT SCENARIOS

The City of Victoria is evaluating the Community Centers long -range potential. Capacity,functionality, age, and appearance of the facility are of concern. The following section aims to assist

the City in determining if and how to invest in the Centers future.

To conduct this analysis, Avalanche Consulting created three development scenarios. Each scenario

represents a different direction that the City could take with regard to investing in the Center.

Scenario 1: This scenario represents the baseline situation plus an additional exhibit hall

and meeting facility. It projects that the City will sustain the space as it is currently while

adding an exhibit hall building elsewhere on the property making needed equipment and

facility repairs to keep the Center operational.

Scenario 2: This scenario responds to the question of whether the Community Center can

fill a larger role as a regional events center. It estimates the impact of removing the Arena

and constructing a large exhibit hall and meeting rooms in its place.

Scenario 3: This scenario expands the Community Centers role as a regional events center

and provides a space for covered outdoor events. In this situation, the Arena will be

replaced with a large exhibit hall (Scenario 2) and a covered pavilion building will be

constructed elsewhere on the property.

A more detailed description of each scenario, including an economic impact and rough cost estimate,

is provided below. It concludes with a side-by-side comparison of forecasted 10-year impacts of each

scenario.

Please keep in mind that these are concepts developed to begin the exploration of future

investments in the Community Center. This is a long-term view, as some scenarios will take a decade

or longer to come to fruition. Once the City determines which of the three scenarios it wants to

pursue, a master site plan will be needed.


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Scenario 1: Current Configuration Plus Exhibit Hall Building

The first scenario represents the Centers current configuration plus the addition of an exhibit hallbuilding elsewhere on the property. The Dome, Annex, and Arena floor plans remain the same, as

does event capacity. In addition, the Center would add an indoor events building, that has capacity

to be broken into multiple smaller break out meeting rooms. The events building will be constructed

in year 3 and economic benefits will be generated starting in year 4. The annual economic impact of

this scenario is estimated to be:

Scenario 1: Current Configuration + New Exhibit HallAnnual Economic Impact


Sales/Output

Jobs


DIRECT IMPACTS:


Current 560,692$ 11 216,371$


Current 491,478$ 10 229,668$


Current 309,052$ 7 165,039$

INDIRECT IMPACTS

Current 707,835$ 20 293,317$


Current 2,069,057$ 40 904,395$

The total annual impact of the expanded Community Center Complex would be $2.07 million per

year. Approximately 40 full time jobs and $900,000 million in annual wages would result from direct

and indirect impacts.

This scenario is based on the following inputs:

Rental activity and profile in the Dome, Annex, and Arena remain the same.

The new event building rents for $1200 per day. An additional $200 per day rental fee ischarged for the new buildings concession stand, and another $150 per day fee is charged for


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security.

Calculations are based on the new event building hosts 20 2-day events per year and 20 1-day events per year. Ten of these events would also rent the Dome, Annex, and Dome

kitchen. The other events are stand-alone and allow for separate rental activity in the restof the Community Center complex. * Based on current requests staff feels this number is

extremely conservative and would be twice the total number of days proposed for

calculations with the possibility of additional days with the help of the newly formed CVB.

Please note that in addition to constructing a new events building on site, the City will need to

investment in maintenance, equipment upgrades, and expansion of storage space in the existing

building. These improvements will have no effect on the Centers current economic impact, although

not making needed repairs would affect demand for the Center in future years.

The original concept of the new event building includes 23,162 square feet of additional rentablespace. A 7,528 main exhibit / banquet hall is accompanied by two 3,982 square foot meeting rooms

and four 1,925 square foot break out rooms. All walls will be movable to allow for multiple

configurations, including one single 23,162 square foot room. This configuration is based on the

footprint of the current Arena so that an impact comparison can be made with Scenario 2, in which

the new events building replaces the Arena.

Considerations

This scenario allows all current users to continue renting the Center, while providing room toexpand events or recruit larger-scale functions to Victoria.

Design of the new events building should integrate into the current layout. Ideally, the twobuildings will be connected via a covered walkway.

The specific location of the new events building is yet to be determined. The City shouldconsider how the new building will affect parking capacity. First, will the new events building

be located on top of existing parking spaces? Second, how much additional parking capacity

will be needed to accommodate increased visitor traffic?

As with all three scenarios, the Centers economic impact will improve if the percentage ofCenter usage by out-of-county events and visitors increases. A concerted marketing effort

will help. Increased rental fees could decrease local customers and open the calendar for

external events (which often negotiate a discounted rate anyway, knowing that their

attendees bring additional dollars into the community). The (future) opening of event space

elsewhere in the community could absorb private events, again increasing opportunity to fill


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dates with out-of-county functions.

The specific size and configuration of the new events building will depend on a number offactors, and does not necessarily have to match the square footage estimated for this Study.

The approximate cost of constructing the new Exhibit Hall and Meeting Space is presented inChapter 3 of this report.

Scenario 2: Replace Arena with New Exhibit Hall

Under Scenario 2, the Community Center is expanded by removing the Arena and replacing it with a

new Exhibit Hall and Meeting Space (the building described in Scenario 1). This scenario aims

address local demand for additional indoor event capacity and has potential to accommodate larger

out-of-county events that might utilize the Dome, Annex, and new events space simultaneously.

As with Scenario 1, this scenario would happen no earlier than 3-5 years from now. In addition,

Avalanche assumes Victoria adds 20 overnight and 20 one-day events per year with 30 percent or

more attendees visiting from out of the county. The economic impact of the Centers operations

after construction is completed (likely 4 years from now) is shown in the following table:

Scenario 2: Replace Arena with New Exhibit HallAnnual Economic Impact


Sales/Output

Jobs

(FTE's) Annual Wa ges

DIRECT IMPACTS:


Current 502,000$ 10 193,722$


Current 442,330$ 9 206,701$


Current 305,902$ 7 155,809$

INDIRECT IMPACTS

Current 650,121$ 11 266,991$


Current 1,900,353$ 37 823,224$

Under scenario 2, the Center would generate an economic impact on the county of$1.9million per year.


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37 jobswould be attributable to direct and indirect output generated by the Centersexpenditures and visitor spending.

The Center and its visitors would generate an estimated $823,000 in direct and indirectwages annually following the construction of the new event space.

Considerations

The replacement of the Arena with additional meeting space means that 2-3 annual publicevents would entirely move to another location. These include the Wild Horse Auction and

possibly the Victoria Livestock Show and the Shriners Circus. This loss of revenue is

considered in the above impact estimate. Several functions currently hosted in the Arena,

including the Kennel Club Dog Match, South Texas Farm and Ranch Show, the Czech Fest,

and the Outdoors Expo can be accommodated in the new convention space.

The loss of Arena events results in a lower economic impact than Scenario 1 in which thenew Exhibit Hall is located elsewhere on the Community Center property.

The Centers location and lack of nearby hotels and restaurants is a serious constraint onrecruiting out of town conferences, even if meeting space capacity is significantly increased.

Victoria Independent School District is currently considering the construction of a 1,500 seatperforming arts center. The ISD currently rents the Center for student and faculty events,

including elementary and GED graduation ceremonies.

A private developer is currently evaluating the possibility of constructing a 5,000 square footcapacity event center in another part of town.

Scenario 3: New Exhibit Hall Plus Covered Outdoor Pavilion

As with Scenario 2, in Scenario 3 the Community Centers Arena is replaced with a new Exhibit Hall

and Meeting Space. In addition, however, the City also constructs a Covered Pavilion elsewhere on

the property. The Pavilion can accommodate the events that would be lost without the Arena, such

as the Livestock Show, while being flexible enough to host a wide range of other activities (live music,festivals, market days, school functions, sports tournament support, and others to name a few).

The open sided Covered Pavilion would have a concrete floor and metal roof. Concession facilities

and restrooms will need to adjoin the Pavilion to maximize utilization. It is assumed that the Pavilion

would host 40 events per year, including 10 two-day, and 30 one-day functions. The rental rate will


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average $800 per day. The economic impact of the Centers operations after construction of the

open air pavilion is completed (estimated to occur in Year 3) is shown in the following table:

Scenario 3: Covered Pavilion + Replace Arena with Exhibit Hall

Annual Economic ImpactVictoria Community Center

Sales/Output

Jobs


DIRECT IMPACTS:


Current 549,942$ 11 212,223$


Current 948,575$ 19 443,269$

Hotel Spending by VisitorsCurrent 456,554$ 10 235,759$

INDIRECT IMPACTS

Current 1,016,637$ 18 427,800$


Current 2,971,708$ 58 1,319,051$

Under Scenario 3, the Center has potential to generate its largest annual economic impact on

the county: $2.9 million per year, well more than double current conditions.

Approximately 58 jobs would be attributable to direct and indirect output generated by the

Centers expenditures and visitor spending. The Center and its visitors would generate an

estimated $1.4 million in direct and indirect wages annually.

The estimated cost of the complete project is provided in Chapter 3.

Scenario Timing

The above economic impacts reflect the year in which the new configuration is complete. Since

construction will take time, and for some years lower revenues can be expected due to part ofthe center being unavailable, Avalanche provides a 10-year timeline of expected impacts for each

scenario.


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10-Year Economic Impact: Baseline and Scenarios 1-3


Scenario 2: Scenario 3:

Scenario 1: Replace Arena Scenario 2 Configuration

Base line Current + Exhibit Ha ll w ith Exhibit Ha ll Plus Covered Pavilion

Year 1 1,168,800$ 1,168,800$ 1,168,800$ 1,168,800$

Year 2 1,168,800$ 1,168,800$ 1,168,800$ 1,168,800$

Year 3 1,168,800$ 2,069,057$ 1,051,920$ 1,051,920$

Year 4 1,168,800$ 2,069,057$ 1,900,353$ 2,971,708$

Year 5 1,168,800$ 2,069,057$ 1,900,353$ 2,971,708$

Year 6 1,168,800$ 2,069,057$ 1,900,353$ 2,971,708$

Year 7 1,168,800$ 2,069,057$ 1,900,353$ 2,971,708$

Year 8 1,168,800$ 2,069,057$ 1,900,353$ 2,971,708$

Year 9 1,168,800$ 2,069,057$ 1,900,353$ 2,971,708$

Year 10 1,168,800$ 2,069,057$ 1,900,353$ 2,971,708$

10-Year Total 11,688,000$ 18,890,060$ 16,691,991$ 24,191,475$

For Scenarios 2 and 3, a decrease in impact is projected in year 3 as two events (the Livestock

Show and Wild Horse Auction) are lost when the Arena is demolished and the new Exhibit Hall

and Pavilion are under construction.

Scenario 3 is projected to produce the highest economic impact for the City of Victoria.

Note: All dollar estimates are in current dollars and are not adjusted for inflation to keep

dollars comparable from future years equal to the current year.


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CHAPTER 3: RECOMMENDATIONSThe purpose of this chapter is to provide recommendations related to improving and enhancing the

impact of the Victoria Community Center. Recommendations emerge from the analysis presented in

the first two chapters of this Study. It begins with a discussion about marketing the current facility to

external audiences. Travel trends, target audiences, and communication strategies are described.

Next, this chapter explores potential for increasing the Centers rental revenue through rate

increases and changes to fee structure. The chapter concludes with an evaluation of the physical

infrastructure improvements needed to expand the Centers meeting and event capacity.

MARKETING RECOMMENDATIONS

Before new facilities are constructed, the City can increase rental revenue and the economic impact

of the Community Center by marketing to audiences located outside of Victoria. A higher number of

out of town guests will result in a higher impact. The following section provides an overview of

tourism trends and recommendations for promoting the Center.

Travel and Tourism Trends

The tourism industry has experienced significant decline in 2008 and 2009. As of October2009, U.S. year to date job losses in accommodations exceeded 7 percent. Recreational jobs

were down by 4 percent, and air transportation by nearly 5 percent. In addition, RevPAR

(revenue per available room) for Texas and its neighboring states was down 18 percent

between October 2008 and October 2009. (source: U.S. Travel Association)

People are taking shorter vacations and traveling by car. Auto travel is leading tourismtrends. In addition, travelers are cutting back on the number of overnight stays, and in turn

seek destinations which offer a lot to do in a short amount of time.

Weekend travel is increasing in popularity. The number of vacations lasting one week orlonger is diminishing. More than 50 percent of American adults take at least one weekend

trip each year, and 30 percent take five or more weekend trips. Many weekend trips are

planned less than two weeks before travel. Cities and small towns are top weekend

destinations (30 percent), followed by beaches (16 percent), mountains (10 percent), lakes (4

percent) and amusement parks (3 percent).


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Fairs and festivals are popular travel destinations. Each year, around 40 percent of adulttravelers (59 million) attended at least one fair or festival. Around one-half of these

individuals visited an ethnic, heritage, or folk festival, and two-thirds attended a state/county

fair or arts and crafts festival.

Outdoor recreation, such as visiting a state or national park, was cited by 25 percent ofAmerican adults as a travel destination. Of these, 75 percent traveled via car to the

destination and around 20 percent camped in a tent or recreational vehicle.

Shopping is the most popular leisure travel activity for American adult travelers. Although itmay not be the primary purpose of the trip, more than 60 percent of tourists shop during a

vacation. Around 50 percent of these individuals stay in a hotel or motel, and 50 percent

stay with friends or family. Enclosed shopping centers and malls comprise about 60 percent

of tourist shopping experiences.

Sports events are a destination for around 40 percent of all travelers. Baseball and softballtop the list of tourist attended events (17 percent of all American travelers), followed by

football (15 percent), basketball (9 percent) and auto / truck racing (8 percent). Youth

sporting events are a special area of opportunity. Communities that can accommodate

regional tournaments will benefit from visitor traffic and increased brand awareness that

these functions generate.

Cultural activities are popular, with 75 percent of travelers attending a cultural activity duringtheir vacation.

Baby Boomers account for the largest volume of travel in the country, while individuals over55 years old take the longest duration vacations.

According to the Travel Industry Association, relatives and friends are the top source ofrecommendations about travel destinations as well as hotels, flights, and rental cars. Travel

agents, travel companies, and community tourism offices also rank highly. This includes

direct communication with these organizations as well as visits to their websites.

More than 50 percent of American adults rely on travel media, such as TV, travel shows,online newsletters, and newspapers, to plan their vacations. When asked which information

source is the most helpful to them, 25 percent cited websites, followed by newspaper travel

sections and television travel shows. One-third said that something they saw or read in

travel media determined their tourism destination.


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Today, the Internet is the dominate travel resource. More than 70 percent of travelersvisited websites to plan at least one aspect of their trip, and 80 percent of these individuals

used the Web to book all reservations, including flights, hotels, and rental cars.

What Trends Mean for Victoria Community Center Marketing

The trends described above are positive news for Victoria. They indicate that community centers are

likely vacation destinations because they host the fairs, festivals, cultural, and sporting events that

are attended by the more than 40 percent of American tourists. For the more than 50 percent of

Texans taking at least one weekend trip per year, Victoria is a good option. It is located within a

region that is underserved by events facilities, and the area offers a combination of amenities,

historic sites, and shopping that can entertain visitors for an entire weekend.

A large portion of weekend tourists book trips less than two weeks in advance, with most utilizing the

Internet to plan itineraries. In response, the Community Centers website could be redeveloped as amarketing tool.

Other travel media, such as television, newspaper, and newsletter segments, also influence tourist

choices. For Victoria, informing regional travel media about upcoming events will increase exposure

and further the chance that tourists will choose to visit the Community Center.

As noted in previous chapters, the biggest challenge in recruiting regional events is the lack of hotel

infrastructure in close proximity to the Center. Expanding the number of RV spaces on the grounds

is one part of the solution. The City will need to closely coordinate with the CVB and area hoteliers

to package overnight stays in a way that makes it easy for event goers to navigate betweenaccommodations and the Center. Long-term, the City should consider placing directional signage on

roadways between the retail/hotel section of town and the Community Center.

External Target Audiences

The Community Centers target audiences are individuals and organizations that are the primary

focus of promotional activities. The more customized the marketing campaign is for specific

audiences, the greater the return on investment. Targeting is the process of narrowly defining

audiences and tailoring the campaign to suit. This process requires in-depth understanding of

audiences, their preferences, and the trends affecting them. It impacts all aspects of a marketingcampaign, from the sales message to the methods used to reach each audience.

The audiences recommended for the Community Center were selected because they meet two

primary criteria:

#1: They have a high probability of demanding and utilizing the Centers facilities.


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#2: Their use of the facility results in a long-term benefit to the local economy.

The universe of potential audiences is great. On the largest scale, it includes any individual or

organization that hosts events in a covered event space and/or rodeo arena. This would include

private parties, business functions, trade shows, festivals, craft and food events, faith basedfunctions, concerts, sports competitions, and livestock shows and rodeos, to name a few.

The Community Centers capacity and current infrastructure, however, is a limiting factor. Outdated

facilities and shortage of space limits the breadth of private parties, business functions, and trade

shows that can be hosted at the Center. The Arenas configuration and flooring surface restricts

rodeo and concert activity. Rodeo and livestock centers located in nearby Gonzales, Cuero, and Bee

County are better equipped to serve larger organizations, reducing Victorias viability.

After taking larger scale state and national events from the pool of possible target audiences,

Avalanche Consulting recommends that the City concentrate marketing of the currentfacility on thefollowing three external targets:

Regional sports tournaments Tradeshows, fairs, and festivals Faith-based events

REGIONAL SPORTS TOURNAMENTS

While tourism trends have been down in 2008 and 2009,

sports events remain a destination for around 40 percentof all travelers, or around 75.3 million U.S. adults.

Baseball and softball top the list of tourist attended

events (17 percent of all American travelers), followed by

football (15 percent), basketball (9 percent) and auto /

truck racing (8 percent). Youth sports tournaments are a

special area of opportunity, and communities that can

accommodate regional events from visitor traffic and increased brand awareness that these

functions generate.

The Victoria Community Center is well positioned to host regional youth sports tournaments thatutilize the surrounding sports complex as well as Center facilities. Registration, awards

ceremonies, clinics and merchandise sales may be housed in the Center. Based on a similar study

conducted by Avalanche Consulting for a sports complex in Williamson County, Avalanche

estimates that Victoria could conservatively attract six 2-day tournaments and six 1-day

tournaments each year. These tournaments would bring thousands of visiting players and family

Regional Sports League Targets:

Youth baseball Youth softball Adult softball Soccer (long-term)


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members to Victoria who would spend money on local hotels, retail, and concessions at the

tournaments.

Marketing collateral targeted at tournaments must package the Center as an added benefit of

the sports complex. Help organizers imagine potential of incorporating the Centers indoor spaceinto overall event organization by providing examples of how they may utilize the Dome, Annex,

and kitchen facilities.

TRADESHOWS, FAIRS, AND FESTIVALS

This audience group represented a variety of interests, from arts and crafts, to sporting goods,

job fairs, and rallies, to name a few. No matter the subject, all event planners share the same

goal: that their functions are seamlessly operated and well attended. Two main selling points

should be addressed when communicating with this

audience:

1. The Victoria Community Center is the regionstop choice for tradeshows, fairs, and festivals

because it can accommodate a variety of

audiences and facility needs.

2. The Victoria Community Center is the regionstop choice for tradeshows fairs and festivals

because the Centers staff will go out of their

way to ensure your event is executed withouta hitch from beginning to end.

When developing collateral materials for this

audience, using a casual theme stays true to the

Centers modest amenities and expresses that Victoria is not a big -city events location.

FAITH BASED EVENTS

The Victoria Community Center already hosts a number

of local religiously-affiliated events each year, includingchurch festivals, gospel music concerts, and family

expos. There is an opportunity to extend marketing to

faith based organizations located within a 1-2 hour

driving distance of Victoria, and even organizations

whose ministries travel across Texas.

Tradeshow, Fair, and Festival Targets:

Arts and crafts shows Cook-offs Biker rallies County Fair Bridal shows Home and garden RV, camping, and boating shows Sporting goods Classic car shows Antique shows Job fairs Music concerts

Faith Based Event Targets:

Meetings and assemblies Musical concerts Retreats Leadership conferences Family festivals Education and certification events


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According to the World Religious Travel Association, religious travel and hospitality is an $18-

billion global industry with 300 million travelers. Of this, the U.S. market is estimated to

comprise $10 billion. A recent Travel Industry Association of America reported that 25 percent of

travelers today are interested in spiritual vacations. A large component of the U.S. religious

travel market includes conventions and conferences. The Religious Conference ManagementAssociation calculates that nearly 15 million people attend more than 17,000 religious meetings

each year. Within the U.S., residents of the West South Central region (Arkansas, Louisiana,

Oklahoma and Texas) reported the highest religious event attendance while traveling (37

percent).

Organizers of faith based events seek facilities that can accommodate a number of different

functions, including hands-on learning, music, large group assembly, and recreational activities

such as sports and dining. As with the other audiences, Victorias primary selling point will be its

venue size, flexibility, and regional hub location.

As external demand for the Center increases so will requests for additional event space. The

property surrounding the Center allows ample room for expansion. As recommended in earlier

chapters, and as agreed to by the Parks Commission, the City wishes to add new facilities to the

property within the next 10-15 years. Improvements under consideration include constructing an

events/meeting building that provides more than 20,000 square feet of additional indoor space as

well as building a 40,000 square foot (estimated) covered pavilion with a concrete floor that can

accommodate a variety of other functions. (In combination with an enhanced marketing initiative,

the new meeting building and covered pavilion would double the Centers economic impact.)

Marketing Recommendations

The following section contains recommendations for improving how the Community Center is

marketed. Recommendations focus on what can be done now to boost the proportion of events

hosted at the Center by external target audiences and thus increase the Centers economic impact. It

is followed by budget estimates and metrics to help the City measure its progress.

Goal: To maximize visitor spending and economic impact generated by the Victoria

Community Center

Tourism is an export-oriented business for Victoria. Visitors spend money at hotels, restaurants,retailers, and other local businesses. Those sales result in new spending by local businesses and

their employees, generating jobs and wages. Taxes collected on visitor spending contribute funding

for community improvements, promotion, and public assets like the Community Center.

The goal of marketing the Victoria Community Center is to draw visitors into the city of Victoria,

whose expenditures not only afford the Centers operations but also results in direct and indirect


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benefits to the local economy. Proactive marketing of the Community Center is a critical step in

accomplishing this goal.

In the next three years, building awareness of the Community Centers name in the larger region

should be the primary objective of marketing. Recommendations offered in this Studyaim toincrease name recognition among the Centers external target audiences so that it becomes top-of-

mind when these groups consider locations for future events.

To begin, the City must develop tools to promote the Center and proactively pursue prospects. Next,

launch a direct sales initiative to inform audiences about the Center. Reinforce name awareness

through a targeted direct mail campaign. Finally, ensure that customers coming from outside of the

City continue to have a positive perception of the Center. Word-of-mouth promotion is the strongest

form of marketing and happens when customers have a great experience at the Center. Reward

customers for choosing Victoria by providing outstanding customer service from initial contact

through the event and follow up.

Recommendation 1: Develop tools to support marketing and information needs.

Set the Community Center apart from its competition by conveying a sophisticated, highly

professional image in everything it does. The City will need to improve its Web presence and

appearance as well as produce new coordinated printed materials. Ensure that all marketing

materials share the same graphical appearance. Avalanche Consulting suggests developing the

following marketing materials in 2010 to support the campaign:

A marketing website is the primary requirement for campaign. It is a must. While theCitys website contains good information about the Community Center, the link is buried

within the Parks and Recreation section of the website. The City has an opportunity to

stand out from the competition by creating a quality, standalone marketing website for

the Center and the surrounding sports complex. Take the following into consideration

when creating this site:

o Technically, the marketing website can still be housed within the architecture ofthe Citys website. Purchase a separate URL that is memorable and brands the

Center (e.g.,www.VictoriaTXCommunityCenter.com ). The URL can either link

directly back to the Community Center section of the Citys website or to a newmarketing website created to support this campaign. Use this URL in all

marketing activities.

o Ensure that the Centers website always contains a current calendar of events.o Allow users to submit reservation requests online and view available calendar

dates.
http://www.victoriatxcommunitycenter.com/http://www.victoriatxcommunitycenter.com/http://www.victoriatxcommunitycenter.com/http://www.victoriatxcommunitycenter.com/


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o Provide information specific to each of the Citys three external audiences.Consider creating a separate webpage for each audience, describing the facilitys

assets in terms that will appeal to their particular market.

o Include links to other tourism assets in the region such as shopping and culturalactivities, to assure visitors that they will find a full weekends worth ofentertainment in and around Victoria.

o Ask other Victoria travel organizations, such as hotels, the CVB, and otherattractions, to include a link to the Community Center on their websites.

The websites design should inspire the design of printed

collateral materials. Avalanche believes that the

appearance of Community Center materials is key factor

in the success of the marketing campaign. It must be

improved. The text box to the right lists model

community and expo center websites that can serve asreferences.

A pocket folder to house marketing and publicrelations materials. Folder content can be

customized depending on the audience by changing out the inserts. This can be as simple as

designing a stylized sticker to adhere the outside of an off-the-shelf pocket folder or as

elaborate as designing and printing custom, full-color folders.

One sheet slicks for customizing handouts in-house. These are useful for sharinginformation that quickly outdates, such as press releases, lists of upcoming events, or eventagendas. The slick will have a pre-printed border that coordinates with other collateral

materials. The Center may generate its own content, and print to the slick using its own in-

house printers.

Postcards for use in a direct mail campaign. Develop postcards for mailings to each targetaudience group. Postcards should share a theme, each featuring a distinct sales point.

Improved marketing brochure(s) to provide to prospects. The City may create one brochureproviding an overview o the Center and short blurbs aimed at each target audience, or the

City may opt to develop a separate brochure for each audience (sports leagues, fair/festivalorganizers, and faith based event organizers). Use the direct mail postcards as a palette for

the brochure design and copywriting.

Recommendation 2: Populate a contact database and keep it updated.

Model Community/Expo Center Websites

www.brazoscountyexpo.com

www.theciviccenter.com

www.humbleecc.comwww.aransaspassciviccenter.com

www.thelonestar.org
http://www.brazoscountyexpo.com/http://www.brazoscountyexpo.com/http://www.theciviccenter.com/http://www.theciviccenter.com/http://www.humbleecc.com/http://www.humbleecc.com/http://www.aransaspassciviccenter.com/http://www.aransaspassciviccenter.com/http://www.thelonestar.org/http://www.thelonestar.org/http://www.thelonestar.org/http://www.aransaspassciviccenter.com/http://www.humbleecc.com/http://www.theciviccenter.com/http://www.brazoscountyexpo.com/


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The City needs a comprehensive, updated contact database of its external target audiences for

distributing its direct mail postcards and other communications activities. This will require leg-

work on behalf of the Centers staff, but is a critical component of any external marketing

initiatives. Most contact information can be found by searching the Internet for association

websites, and then pulling member information. Contact lists are also available for purchasethrough various association directories. The database should contain names, mailing addresses,

phone numbers, and email addresses (if possible), for the following:

Regional and state baseball and softball leagues

Professional event planners, fair and festival organizers

Major employers located in the region

Faith based organizations located in the region and religious associations

State religious associations

Recommendation 3: Launch a concentrated direct mail

campaign.

Direct mail is the delivery of unsolicited advertising

through postal mail or e-mail. Although traditional, it has

the potential to yield good results if properly executed.

For the Community Center, a direct mail campaign is a

good kick-off for external promotions. Begin by selecting

a theme that will carry throughout all direct mail pieces.

The primary reason for the campaign is to let audiences

know that the City of Victoria welcomes them and has

the capacity for hosting a variety of functions. The

theme should convey its primary marketing message, for

example:

The Victoria Community Center is a premier eventsfacility in South Texas.

Engage a designer to create direct mail postcards that

reflect the design of the Centers website and printed

collateral materials. The campaign will require three

postcard mailings, scheduled four weeks apart, for each

Tips for a Successful Direct Mail Campaign

Spend time developing anattention-grabbing headline for

each piece.

Include a call to action. Specifywhat you want readers to do.

Target the message one permailing - and keep it simple. Dont

jam too much information on one

piece.

Establish a design and carry itthrough the entire campaign.

Consider using a 5x5 postcardsize to help the piece stand out.

Schedule mailings so that thepiece arrives on a Tuesday or

Wednesday the lightest mailing

days.

Commit to at least 3 mailings in acampaign, scheduling 2-4 weeks

apart.

Follow up with sales calls after thecampaign is complete.


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of the three external marketing audiences (nine total designs). Postcards should be similarly

formatted.

The more targeted the message, the more effective the mail campaign will be. Sports

tournaments have a different audience demographic than faith based events, for example.Rather than watering down a one-size-fits-all message to fit all three audiences, commit

additional resources to customizing a campaign for each.

Recommendation 4: Promote the Community Center through trade association membership

and event attendance.

Relationships are the key to long-term success, and direct marketing must be a significant part of

the Citys external marketing initiative. The City should become active members of regional

chapters of event planning, expo, festival, and fair associations. In addition to memberships,

subscribe to state and regional publications. Peruse newsletters and magazines for upcomingevents, and identify those that could be suitable for the Community Center in the future.

Recommendation 5: Frequently share news about the Community Center with the local

market.

Victoria-based organizations and individuals will continue to provide a steady source of revenue

for the Community Center. Keeping these groups informed and impressing them is important for

business and reminds them of Centers value to the community.

Tactic 5.1: Produce a monthly news release listing upcoming events.

Entitled This Month at the Community Center (or similar), the news release should list all

public events at the Center scheduled in the upcoming month, including the date, time, location,

and other details. Look at editorial schedules to determine the best day of the week to distribute

the new

Community Center Study 2010

Documents

Transcript of Community Center Study 2010