HomeMy WebLinkAbout2008_11_18 CC PKTCity Council Packet
November 18, 2008
1
Brookings City Council
Tuesday, November 18, 2008
City Hall Council Chambers
311 Third Avenue
5:00 p.m. ~~ Work Session
6:00 p.m. ~~ Council Meeting
Mission Statement
The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse economic base through
innovative thinking, strategic planning, and proactive, fiscally responsible municipal management.
5:00 P.M. WORK SESSION
** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular
meeting, introduce future topics, and provide a time for Council members to introduce topics.
1. Consultant report on Swiftel Center feasibility validation study.
2. Update on City Council’s 2008 Strategic Goals.
3. 6:00 p.m. Meeting Review.
4. Council Invites & Obligations
5. City Council member introduction of topics for future discussion. *
*Any Council member may request discussion of any issue at a future meeting only. Items can not be added for action at this meeting. A
motion and second is required starting the issue, requested outcome, and time. A majority vote is required.
6:00 P.M. REGULAR MEETING
1. Call to order.
2. Pledge of Allegiance.
3. City Clerk records council attendance.
4. Action to approve the following Consent Agenda Items *
A. Action to approve the agenda.
B. Action on Resolution No. 94-08, for 2009 Medical Insurance Contribution Rates.
C. Action on Resolution No. 95-08, for 2009 Dental Insurance Contribution Rates.
D. Action on Resolution No. 104-08, for 2009 Vision Insurance Contribution Rates.
E. Action on Resolution No. 96-08, authorizing the City Manager to sign a Liquor
Operating Agreement renewal for Pheasant Restaurant & Lounge.
F. Action on Resolution No. 97-08, awarding bids for City of Brookings Custodial
Services.
G. Action on Resolution No. 98-08, awarding bids for a front end loader for the
landfill.
H. Action to approve a contract for the Library Coffee Shop.
I. Action on Resolution No. 99-08, authorizing the City Manager to sign a Liquor
Operating Agreement renewal for Applebee’s Neighborhood Grill & Bar.
J. Action on Resolution No. 100-08, establishing effective date of new fee
schedules for the City of Brookings.
K. Action on Resolution No. 105-08, Authorizing Uncollectible Accounts to be
removed from Liquor Records.
City Council Packet
November 18, 2008
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L. Action to appoint Kim Wells to the Committee for People who have Disabilities.
Action: Motion to approve, request public comment, roll call
* Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time,
without discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed
from the Consent Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items
means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting
documentation.
Presentations/Reports/Special Requests:
5. Open Forum.
6. SDSU Report.
Ordinances – 1st Readings **:
** No vote is taken on the first reading of ordinances. The title of the ordinance is read and the date
for the public hearing is announced.
Second Readings & Public Hearings:
7. Ordinance No. 41-08: An Ordinance Entitled “An Ordinance Authorizing A
Supplemental Appropriation To The 2008 Budget For The Purpose Of Providing For
Additional Funds For The Operation Of The City.
Action: Motion to approve, request public comment, Roll Call
8. Ordinance No. 42-08: An ordinance amending the zoning ordinance of the City of
Brookings and pertaining to Extended Stay Hotels for the purposes of administration of
the zoning ordinance.
Action: Open & Close Public Hearing, Motion to approve, Roll Call
9. Public hearing and action on Resolution No. 101-08, SRF loan application for Innovation
Campus infrastructure.
Action: Open & Close Public Hearing, Motion to approve, Roll Call
Other Business:
10. Action on Resolution No. 102-08, a resolution authorizing Change Order (CCO#7) for
2008-03STI Downtown Streetscape Project.
Action: Motion to approve, request public comment, Roll Call
11. Action on Resolution No. 103-08, setting the fee for (Ordinance No. 30-08) on-sale
licenses for full-service restaurants.
Action: Motion to approve, request public comment, Roll Call
12. Update on Railroad Safety Projects (crossing arms/whistle free zones).
Action: Informational
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November 18, 2008
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13. Action on Resolution No. 106-08, A Resolution Providing For The Development And
Transfer Of Lot 3, Nelson Eighth Addition For Purposes Of Constructing Homes To
Eligible Clients Of The Inter-Lakes Community Action Partnership.
Action: Motion to approve, request public comment, Roll Call
14. Executive Session for purposes of discussing marketing or pricing strategies.
Action: Motion to enter session – voice vote
Motion to leave executive session – voice vote
15. Adjourn.
Brookings City Council
Scott Munsterman, Mayor
Tim Reed, Deputy Mayor
Mike Bartley, Council Member
Tom Bezdichek, Council Member
Ryan Brunner, Council Member
Mike McClemans, Council Member
Julie Whaley, Council Member
Council Staff:
Jeffrey W. Weldon, City Manager
Steven Britzman, City Attorney
Shari Thornes, City Clerk
View the City Council Meeting Live on the City Government Access Channel 9.
Rebroadcast Schedule: Wednesday @ 1pm, Thursday @ 7 pm, Friday @ 9 pm, and Saturday @ 1 pm.
The complete City Council agenda packet is available on the city website: www.cityofbrookings.org
If you require assistance, alternative formats, and/or accessible locations consistent with the Americans with
Disabilities Act, please contact Shari Thornes, City ADA Coordinator, at 692-6281 at least 3 working days prior to
the meeting.
City Council Packet
November 18, 2008
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5:00 P.M. WORK SESSION
** Work sessions are open to the public. During the work session the city staff would brief the council on items
for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics.
1. Consultant report on Swiftel Center feasibility validation study.
TO: Mayor and City Council Members
FROM: City Manager Jeff Weldon
RE: Swiftel Center feasibility validation report
After reviewing the feasibility report for the possible expansion of the Swiftel Center
which was conducted by VenuWorks Consulting, the City Council decided to have a
validation study by having another firm analyze the market data for a second opinion.
This was enumerated in Goal Number 8 of the Strategic Plan. Requests for Proposals
were issued for consulting services to conduct the validation study. Three respondents
were evaluated and HVS Consulting from Chicago, IL was selected. They were here a
few months ago for a field visit and conducted extensive research before, during, and
after their visit.
Their final report is enclosed. The lead consultant for the project, Mr. Tom Hazinski,
will be here to present the findings of the report and answer your questions. This
report has also been presented to the Swiftel Center Advisory Board. With the results
of two independent studies on issue of a possible expansion of the Swiftel Center, we
will need to decide in the coming months what course of action to take, if any, on this
issue.
This project effectively completes Goal #8 of the Strategic Plan.
Brookings Validation Study
Brookings, South Dakota
Prepared by:
HVS Convention, Sports and Entertainment
205 West Randolph, Suite 1650
Chicago, Illinois 60606
312-587-9900
312-587-9908 FAX
Submitted to:
Mr. Jeff Weldon
City of Brookings
311 Third Avenue
Brookings, SD 57006
Phone: 605-692-6281
Email: jweldon@cityofbrookings.org
Page 1 of 1
October 24, 2008
Mr. Jeff Weldon
City of Brookings
311 Third Avenue
Brookings, SD 57006
Phone: 605-692-6281
Email: jweldon@cityofbrookings.org
Dear Mr. Weldon,
HVS is pleased to submit the attached Brookings Validation Study.
We hereby certify that we have no undisclosed interest in the
property, and our employment and compensation are not contingent
upon our findings. This study is subject to the comments made
throughout this report and to all assumptions and limiting conditions
set forth herein.
We look forward to presenting our findings on November 18, 2008.
Sincerely,
Thomas Hazinski
Managing Director
HVS Global Hospitality Services
205 West Randolph, Suite 1650
Chicago, Illinois 60606
Phone (312) 587-9900
Fax (312) 587-9908
Email: thazinski@hvs.com
www.hvs.com
New York
San Francisco
Boulder
Denver
Boston
Miami
Dallas
Chicago
Washington, DC
Newport, RI
Atlanta
Mexico City
Vancouver
Toronto
London
Madrid
Athens
New Delhi
Singapore
Hong Kong
São Paulo
Buenos Aires
Shanghai
HVS Convention, Sports & Entertainment Tables of Contents
Table of Contents
Section Title
1 Executive Summary
2 Facility Description
3 Market Overview and Competitive Venues
4 Comparable Venues
5 Facility Recommendations
6 Operations Analysis
7 Statement of Assumptions and Limiting Conditions
8 Certification
HVS Convention, Sports, and Entertainment Executive Summary 1-1
Brookings Validation Study
1. Executive Summary
The City of Brookings, South Dakota engaged HVS Convention, Sports &
Entertainment Facilities Consulting (“HVS”) to review the “Public Assembly
Facility Feasibility Study: Options for Expansion of the Swiftel Center” (the
“VenuWorks Study”) by VenuWorks. The City of Brookings, as well as the
County of Brookings, owns the Swiftel Center and contracts with VenuWorks
to operate the venue. The Swiftel Center is an events center with a 5,500-seat
arena, a multi-purpose banquet room, and meeting space.
To review the VenuWorks Study, HVS consultants traveled to Brookings in
the week of August 21, 2008 during which we performed a site inspection,
reviewed plans for the proposed expansion, met with key industry
participants, visited competitive venues and lodging facilities, and gathered
relevant data. HVS analyzed and interpreted event planner survey data that
was previous collected in the course of the VenuWorks Study. HVS also
gathered and analyzed event and financial data from comparable facilities,
and compared them with the Swiftel Center’s historical operations.
Additionally, HVS developed an alternative facility expansion
recommendation and independently forecasted event demand and financial
operations with and without an expansion.
Analyzing VenuWorks survey results, data from comparable facilities and
historical demand of the Swiftel Center, provided HVS with a strong basis
from which we could provide independent facility recommendations and
demand and financial projections.
As part of its study, VenuWorks conducted a survey of South Dakota
convention and meeting planners. HVS analyzed sections of the survey
results to determine event planner needs. Survey responses regarding exhibit,
banquet and meeting space requirements, as well as demand for proximate
hotels, provided HVS with insight into the needs of event planners who have
previously and would potentially use the Swiftel Center. Figure 1-1 illustrates
the space requirements of survey respondents.
Overview
Methodology
Key Findings
HVS Convention, Sports, and Entertainment Executive Summary 1-2
Brookings Validation Study
Figure 1-1
Space Requirements
0%
5%
10%
15%
20%
25%
600-2,500 3,000-
4,000
5,000-
6,000
7,000-
10,000
15,000-
20,000
30,000+
Exhibit Space: SF
0%
10%
20%
30%
40%
50%
60%
70%
1-50 51-100 101-300 301-500 501-700 701-1000 1001-
1500
Banquet Space: Capacity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
One Two Three Four 5-7
Meeting Space - Required Rooms
0%
5%
10%
15%
20%
25%
30%
35%
0-25 26-75 76-100 101-200 201-300 301-450 450+
Meeting Space - Capacity
Source: VenuWorks Survey 2008
An overwhelming majority, almost 70 percent, of event planners recorded
that they require a ballroom with capacity for between 101 and 300 persons.
Only 11 of survey respondents indicated the need a ballroom large to
accommodate 501 and 700 attendees and no respondents require banquet
space for between 701 and 1,000. Roughly 60 percent of meeting planners
require meeting space with no greater than a 200 person capacity, while
almost 80 percent of respondents need only one meeting room.
The VenuWorks survey also questioned event planner as to their preferences
in the proximity of hotels. Figure 1-2 shows the results.
HVS Convention, Sports, and Entertainment Executive Summary 1-3
Brookings Validation Study
Figure 1-2
Hotel Proximity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Attached Within 1-10 Min Within 21-30 Min Within 11-20 Min Not Applicable
Potential Clients Current Clients
Source: VenuWorks Survey 2008
For current users of the Swiftel Center, over 90 percent prefer attached
accommodations, while sixty percent of potential Swiftel Center clients prefer
an attached hotel, demonstrating the demand for an attached hotel to the
Swiftel Center.
VenuWorks provided HVS with historical demand for events held at the
Swiftel Center from January 2001 until June 2008. HVS removed all internal
events from the database and reclassified events to allow for comparison to
other comparable venues. Figure 1-3 summarizes event data for 2001 through
2007.
HVS Convention, Sports, and Entertainment Executive Summary 1-4
Brookings Validation Study
Figure 1-3
Historical Demand
0
50
100
150
200
250
300
350
2001 2002 2003 2004 2005 2006 2007Number of EventsMeetings and Conferences Banquets
Other Sports
Consumer Shows, Conventions & Tradeshows Concert/Entertainment
Source: Swiftel Center
Between 2001 and 2007, the number of events held at the Swiftel Center grew
significantly, however demand peaked in 2006 with 366 events. Much of the
increase in events between 2005 and 2006 was due to the use of the facility by
Daktronics for training and meetings. In 2007, the company opened a meeting
room and training facility on its property and moved some seminars out of
Brookings.
Since 2003, the number of sports events held at the Swiftel Center remained
relatively stable at 20 to 28 events; however, through the first six months of
2008, the Swiftel Center has already hosted 22 sports events. The number of
banquets and concerts and entertainment events have also remained stable,
proportionally to the total number of events. The number of events
categorized as “other” has significantly increased from 2004 through 2007.
HVS compared Swiftel Center’s 2007 event data to the 2007 historical event
demand of the seven comparable facilities that HVS describes and analyzes in
this report. Figure 1-4 shows the 2007 event histories of the seven facilities in
comparison with the Swiftel Center.
HVS Convention, Sports, and Entertainment Executive Summary 1-5
Brookings Validation Study
Figure 1-4
Comparable Facilities: Total Events and Total Attendance
0 100 200 300 400 500 600 700 800
Casper Events Center
Dixie Center
Clay County Regional Events Center
Swiftel Center
St. Cloud Civic Center
Alerus Center
Mid-America Center
Total Events
Clay County Regional Events Center
Swiftel Center
St. Cloud Civic Center
Casper Events Center
Alerus Center
Dixie Center
Mid-America Center
Total Attendance
Source: Respective Facilities
In 2007 the Swiftel Center hosted 284 events, the median of all comparable
facilities; however total attendance of roughly 94,000, falls short of total
HVS Convention, Sports, and Entertainment Executive Summary 1-6
Brookings Validation Study
attendance at all comparable facilities, with the exception of the Clay County
Regional Events Center.
The low total attendance figure falls as a direct result of low average
attendance at concerts and entertainment events and consumer show. While,
the Swiftel Center hosts a comparable number of these types of events, it
draws significantly lower attendance for those events than its peers, due to its
location and population.
While the VenuWorks study calls for the addition of a 12,000 square foot
ballroom and a modification of the 11,000 square feet of meeting space at the
Swiftel Center, HVS recommends an alternative approach to broadening the
appeal of the Swiftel Center and attracting additional convention business to
the City of Brookings. The original VenuWorks study did not discuss a hotel
adjacent to the facility, but in interviews with key informants it was noted
that discussions about an expansion of the Swiftel Center generally assumed
the development of a hotel in addition to building a ballroom and meeting
space.
HVS recommends that Brookings consider the development of a hotel
property immediately adjacent and physically connected to the Swiftel
Center. New meeting and ballroom space could be developed as a part of the
hotel development. While further hotel market research would be required to
recommend a specific room count for the facility, the size of the hotel could
range from 100 to 150 rooms.
Industry research, analysis of comparable facilities and review of the
VenuWorks survey of event planners, in addition to interviews with local
industry participants, demonstrates that the success of an expanded Swiftel
Center depends on the addition of new and proximate hotel rooms. Without
the appropriate hotel room supply an expanded center will not be able to
attract new convention events. Furthermore, most state-association events
that the Swiftel Center would like to attract are meetings, which are most
likely to be based in hotels rather than in a stand-alone convention center.
Survey data indicates that most events considering Brookings could be
accommodated with somewhat smaller amounts of meeting and ballrooms
space than the amounts recommended in the VenuWorks Study. HVS also
recommends that Brookings give serious consideration to making the certain
improvements to the to the storage and kitchen areas of the Swiftel Center, as
well as to the staff office areas, as recommended in the VenuWorks Study.
Facility
Recommendations
HVS Convention, Sports, and Entertainment Executive Summary 1-7
Brookings Validation Study
HVS projected demand and financial projections for two scenarios: if
Brookings decides not to expand the Swiftel Center, and if Brookings does
expand the Swiftel Center. Table 1-1 shows demand projections for both
scenarios in a stabilized year.
Table 1-1
Event Demand Projections in a Stabilized Year
Without
Expansion
Expanded
Property
Events
Assemblies 2 2
Banquets 40 75
Concerts & Entertainment 12 12
Meetings & Conferences 80 100
Consumer Shows 15 15
Conventions & Tradeshows 3 20
Sports 30 30
Other 73 73
Total 255 327
Average Attendance
Assemblies 1,200 1,200
Banquets 200 200
Concerts & Entertainment 1,350 1,350
Meetings & Conferences 150 150
Consumer Shows 650 650
Conventions & Tradeshows 1,000 400
Sports 300 300
Other 250 250
Total Attendance
Assemblies 2,400 2,400
Banquets 8,000 15,000
Concerts & Entertainment 16,200 16,200
Meetings & Conferences 12,000 15,000
Consumer Shows 9,750 9,750
Conventions & Tradeshows 3,000 8,000
Sports 9,000 9,000
Other 18,250 18,236
Total 78,600 93,586
Without an expansion, HVS projects the Swiftel Center will host
approximately 255 events annually in a stabilized year, relatively close to the
284 events hosted in 2007. Total attendance, before the loss of SDSU’s use of
the arena for athletic practices, should also remain steady at approximately
85,350 people annually. If, as is currently proposed, SDSU successfully secures
Demand Projections
HVS Convention, Sports, and Entertainment Executive Summary 1-8
Brookings Validation Study
the funding necessary to build an indoor field house, event demand for
“other” events, like athletics practice during inclement weather are expected
to decrease substantially.
The proposed expansion of the Swiftel Center provides an opportunity to
correct some of the functional problems of the current Center in addition to
potentially attracting a number of state association conferences and
conventions. The community and university also have modest demand for
additional banquet and meeting space. The projected events and attendance
for 2013 represents stabilized demand. These projections assume a decrease in
overall demand from the opening year in 2011 due to the expected reduction
in use of the Swiftel Center by SDSU sports teams for practices. Convention
and trade show demand is expected to stabilize in its second year and, for all
other events, demand is expected to stabilize in its first year. HVS expects
increased demand for banquets, meetings, and conventions and tradeshows
at the Swiftel Center. While improvements to the arena configuration are
planned, without a significant expansion in size, it is unlikely that additional
concerts or sporting events will increase substantially.
While HVS recommends the addition of an adjacent hotel with meeting room
space adjacent to the Swiftel Center property, the financial projections
included in this report reflect only the cost and revenues associated with the
proposed expanded ballroom and meeting room space discussed in the
VenuWorks feasibility study. The financial projections for both scenarios,
presented below in Table 1-2, do not take into consideration the cost of
building or operating a hotel nearby.
Financial Projections
HVS Convention, Sports, and Entertainment Executive Summary 1-9
Brookings Validation Study
Table 1-2
Financial Projections in a Stabilized Year
Without Expansion Expanded Property
$ % of Total $ % of Total
OPERATING REVENUE
Advertising & Sponsorships $136,000 9.3% $136,000 6.7%
Box Office 6,000 0.4% 6,000 0.3%
Event Services (Gross) 302,000 20.5% 505,000 24.7%
Facility Rental 379,000 25.8% 499,000 24.4%
Food & Beverage (Gross) 532,000 36.2% 786,000 38.4%
Naming Rights 50,000 3.4% 50,000 2.4%
Pouring Rights 14,000 1.0% 14,000 0.7%
Promotions 50,000 3.4% 50,000 2.4%
Total $1,470,000 100.0% $2,045,000 100.0%
OPERATING EXPENSES
Salaries $350,000 23.8% $422,000 20.6%
Benefits 213,000 14.5% 267,000 13.1%
Administrative & General 75,000 5.1% 119,000 5.8%
Food & Beverage Costs 346,000 23.5% 511,000 25.0%
Event Services Costs 419,000 28.5% 459,000 22.4%
Marketing & Sales 57,000 3.9% 114,000 5.6%
Repair & Maintenance 126,000 8.6% 145,000 7.1%
Supplies & Equipment 0 0.0% 0 0.0%
Utilities 138,000 9.4% 157,000 7.7%
Box Office 2,000 0.1% 2,000 0.1%
Total $1,725,000 117.3% $2,195,000 107.3%
OPERATING INCOME (LOSS)($256,000) -17.3% ($150,000) -7.3%
NON-OPERATING REVENUE
Interest Income $0 0.0% $0 0.0%
Fund Transfers In 0 0.0% 0 0.0%
Other Non-Operating Revenue 31,000 2.1% 31,000 1.5%
Total $31,000 2.1% $31,000 1.5%
NON-OPERATING EXPENSES
Management Fees $120,000 8.2% $136,000 6.7%
Insurance 51,000 3.5% 85,000 4.2%
Capital Maintenance 84,000 5.7% 84,000 4.1%
Other Non-Operating Expense 72,000 4.9% 72,000 3.5%
Total $325,000 22.1% $376,000 18.4%
TOTAL NET INCOME (LOSS)($550,000) -37.4% ($494,000) -24.2%
HVS Convention, Sports, and Entertainment Executive Summary 1-10
Brookings Validation Study
Under the two scenarios analyzed, an expansion of the Swiftel Center based
on the VenuWorks expansion or no expansion or renovation of the facility,
the Swiftel Center’s operating deficit is projected to grow. During the first
year of stabilized demand at the expanded Swiftel Center, HVS projects an
operating loss of approximately $494,000. This projected deficit actually
decreases initially, between 2011 and 2013, but then increases with inflation. If
the Swiftel Center is not expanded, HVS projects the facility will realize a net
deficit of approximately $550,000.
HVS Convention, Sports & Entertainment Description of the Swiftel Center and Current Operations 2-1
Brookings Validation Study
2. Description of the Swiftel Center and Current
Operations
The City of Brookings and County of Brookings own the Swiftel Center and
VenuWorks (a third party public assembly facility operator) has managed the
facility since 2001. Near I-29 and east of the downtown area of Brookings, SD,
the complex includes an arena, an arena concourse, a large banquet space that
can be divided into two separate rooms for meetings and/or banquets, two
conference rooms on the ground floor and a small conference room on the
mezzanine level near Swiftel Center staff offices.
Event space in the Swiftel Center totals 45,375 square feet. For agricultural
shows, the Swiftel Center offers a 22,500-square foot holding barn for staging
use. Table 2-1 summarizes the event space in the facility.
Table 2-1
Summary of Function Spaces
Capacity
Type of Space
Square
Feet Theatre Banquet Classroom
Exhibit
Booths
Arena 29,500 3,333 2,496 1,413 150
Concourse 4,002 444 225 168 25
Daktronics Rooms (A&B) 6,800 604 330 265 33
County Room C 1,845 155 112 78 14
County Room D 2,928 222 160 114 17
Mezzanine Conference Room 300 - - 18 -
Total 45,375
Source: Swiftel Center
From the parking lot, one enters the Swiftel Center through the lobby. The
Swiftel Center is roughly divided into two main function areas with the arena
and concourse to the west of the lobby and box office and the banquet and
HVS Convention, Sports & Entertainment Description of the Swiftel Center and Current Operations 2-2
Brookings Validation Study
meeting rooms to the north and east of the lobby. Figure 2-1 shows a floor
plan of the facility.
Figure 2-1
Swiftel Center Floor Plan
Source: Swiftel Center
The Swiftel Center arena offers 29,500 square feet of event space on its floor
and holds up to 6,000 attendees for concerts with festival seating. The arena is
used for concerts, large banquets, South Dakota State University athletics
team practices during inclement weather, high school and college sports
tournaments and motocross events. Since the Swiftel Center does not have
dedicated exhibit space, the arena also acts as exhibit space for consumer
shows as well as the occasional trade show.
While the arena was not designed as exhibit space, it can be used to hold up
to 150 10’ by 10’ trade show booths. The concourse area accommodates up to
20 additional trade show booths. Figure 2-2 shows a floor plan of the arena.
Arena Space
HVS Convention, Sports & Entertainment Description of the Swiftel Center and Current Operations 2-3
Brookings Validation Study
Figure 2-2
Arena Map
Source: Swiftel Center
The layout of the arena presents some challenges with respect to its
functionality for concert events. The arena was constructed without an
adjacent green room for performers. In its current form, entertainers use the
athletic locker rooms located in the west hallway. , which also houses two
public restrooms. During concerts, access to the hallway is blocked and
attendees sitting on the western side of the arena can only access the stairs
and facility exit from the southern end of the arena. Entrances to the corridor
must be staffed during events to prohibit use and to also provide guidance in
the event of an emergency.
The Daktronics Banquet Room divides into two sections and accommodates
up to 944 people standing. An adjacent corridor on the eastern side of the
arena and a small room adjacent to the entrance lobby provide access to the
banquet room.
Banquet Space
HVS Convention, Sports & Entertainment Description of the Swiftel Center and Current Operations 2-4
Brookings Validation Study
In addition to the above mentioned banquet space, the SC offers three
meeting rooms. Two of these rooms, County Room C and D are on the
ground level of the facility, and the third room is located on the mezzanine
level.
While event space totals 45,375 square feet, not all of the space is accessible at
the same time. While the City owns the majority of the space inside the SC,
the County owns its office space and County Rooms C and D. Therefore, the
County space can only be rented for events when the County is not using the
space for its own functions. In addition, due to the physical layout of the
Swiftel Center, when events in the arena take place, only half of the large
meeting space (Daktronics Room A) is accessible. When the arena is in use,
access to Daktronics Room B is blocked off.
The County conference space totals 4,777 square feet of meeting space and
divides into two breakout rooms, one with 2,928 square feet, and the other
with 1,845 square feet. The mezzanine conference room totals 300 square feet.
In addition to meeting rooms inside the Swiftel Center, the R&T conference
room, located in a nearby office building that houses hi-tech research, can be
rented from the Swiftel Center. This conference room totals 700 square feet.
While the VenuWorks feasibility study included information on the R&T
Conference Room, HVS did not include it in the list of event space as the
small conference room is located in a separate building.
In addition to the arena and the meeting room space, the Swiftel Center has
held a variety of events in the concourse space as well as used the holding
barn located adjacent to the facility for staging agricultural shows.
The arena concourse offers 4,002 square feet of event space. Event planners
have used the concourse to host teen dances, wedding receptions and cocktail
parties and receptions. The arena concourse can be used for standalone
events only on occasions when the arena is not in use.
In addition to the lack of a green room and inability to access part of the event
space during other events, the current layout of the Swiftel Center limits its
functionality.
As mentioned in the VenuWorks study, the Swiftel Center lacks adequate
storage space and this lack of storage has necessitated creative usage of space
by Swiftel Center staff. Over the past several years, storage space has been
Meeting Space
Additional Event Space
Event Space Issues
HVS Convention, Sports & Entertainment Description of the Swiftel Center and Current Operations 2-5
Brookings Validation Study
added by building closets under formerly trapped spaces beneath staircases.
When the facility opened, only one room, totaling 1,275 square feet, existed
for storage. In addition to the storage space built under staircases, staff built a
351 square foot room for storage use near the concession stand on the east
side of the arena.
The current kitchen in the facility is 813 square feet and all of the necessary
kitchen equipment does not fit inside the space. As mentioned in the
VenuWorks feasibility study, the Swiftel Center was originally designed with
off-site food preparation in mind. While the proposed kitchen is larger, it is
questionable whether 1,458 square feet will be sufficient to support the
proposed ballroom.
HVS Convention, Sports & Entertainment Market Analysis 3-1
Brookings Validation Study
3. Market Analysis and Competitive Venues
HVS interviewed several key informants who provided information about the
Brookings event market. In addition to collecting interview data, HVS
carefully reviewed the VenuWorks study. As part of its study, VenuWorks
conducted a survey of South Dakota convention and meeting planners. HVS
analyzed sections of the survey results to determine event planner needs. The
VenuWorks study also compared the existing and proposed expanded Swiftel
Center to 17 other facilities in South Dakota. HVS organized the facilities into
two separate categories—stand-alone convention/exhibition centers and
hotels with significant conference space. In this chapter, HVS describes and
analyzes the facility programs of these facilities that compete with the existing
or expanded Swiftel Center.
The interviews, survey results and review of the VenuWorks study shed light
on the Brookings market and the facility needs of current and potential users
of the Swiftel Center.
HVS reviewed the survey results presented in the VenuWorks study. The
survey asked a sample of South Dakota Convention and Meeting Planners
about the needs relating to the events they plan each year. VenuWorks
conducted an online and telephone surveys of 89 South Dakota convention
and meeting planners and obtained a 31 percent overall response rate. HVS
analyzed a portion of these results that we found most pertinent to our
market analysis and their implications for the Swiftel Center.
Introduction
VenuWorks Survey
Results
HVS Convention, Sports & Entertainment Market Analysis 3-2
Brookings Validation Study
Figure 2-1
Event Type - Combined Current and Potential Clients
Meetings 29%
Conventions
26%
Conferences
13%
Tradeshows
13%
Banquets 12%
Sporting
Events 4%Other 3%
Source: VenuWorks Survey 2008
Over fifty percent of functions planned by surveyed event planners are
meetings or conventions, followed by the approximately 40 percent, which
are conferences, tradeshows, or banquets. These types of events, particularly
meetings and convention, require varied and flexible amounts of function
space.
VenuWorks asked survey participants to describe their needs with respect to
each of three basic types of event space, including exhibition, banquet and
meeting space; the following distribution charts highlight their wide range of
facility requirements. See Figure 2-2.
HVS Convention, Sports & Entertainment Market Analysis 3-3
Brookings Validation Study
Figure 2-2
Function Space – Combined Current and Potential Clients
0%
5%
10%
15%
20%
25%
600-2,500 3,000-
4,000
5,000-
6,000
7,000-
10,000
15,000-
20,000
30,000+
Exhibit Space: SF
0%
10%
20%
30%
40%
50%
60%
70%
1-50 51-100 101-300 301-500 501-700 701-1000 1001-
1500
Banquet Space: Capacity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
One Two Three Four 5-7
Meeting Space - Required Rooms
0%
5%
10%
15%
20%
25%
30%
35%
0-25 26-75 76-100 101-200 201-300 301-450 450+
Meeting Space - Capacity
Source: VenuWorks Survey 2008
Event planners require various amounts of exhibit space with the majority
requiring between 3,000 and 4,000 square feet. About 14 percent require
30,000 or more square feet of exhibit space. In terms of banquet and meeting
capacity, a distinct majority of survey respondents require space for 100-300
persons for banquets and 100-200 persons for meetings. Roughly 30 percent of
event planners surveyed require meeting space for up to 75 persons.
Event attendance can help in determining the ideal size of a hotel and/or
event facility. Event planners host events for very small groups of 50 or less
and large groups of thousands attendees and participants. Exhibitors,
delegates, and attendees that come from out of town are likely to have the
HVS Convention, Sports & Entertainment Market Analysis 3-4
Brookings Validation Study
greatest impacts on the local economy. These overnight visitors require
lodging, which is one of the largest spending categories for most event
participants.
Figure 2-3
Event Attendance – Combined Current and Potential Clients
Event Attendance
0%
5%
10%
15%
20%
25%
30%
35%
40%
Less than
50
100-200 201-500 600-1,500 2,000-
3,000
3,700-
5,800
0% 10% 20% 30% 40% 50%
Montana
Midwest
National
Other
Regional
Iowa
Wyoming
Nebraska
Minnesota
North Dakota
South Dakota
Attendee Origin
Source: VenuWorks Survey 2008
Most events planned by survey respondents last between one and four days,
with roughly 50 percent organizing events that last three or four days.
HVS Convention, Sports & Entertainment Market Analysis 3-5
Brookings Validation Study
Figure 2-4
Event Length (Days) and Hotel Demand—Combined Current and Potential Clients
0%
5%
10%
15%
20%
25%
One Two Three Four Five Six Seven Eight Nine Ten
Includes move-in and move-out days
Event Length (Days)
0%
10%
20%
30%
40%
50%
60%
Less than
50
51 to 99 100 to 200 201 to 300 301 to 500 500 +
Peak Room Nights
Source: VenuWorks Survey 2008
Respondents require between 300 and 400 room nights across the length of
their event. A distinct majority of respondents require between 100 and 200
rooms on their peak event night, followed by those who require between 50
and 100 rooms. Between eight and nine percent require 500 or more rooms on
their peak night, showing the relatively booking potential for large these
kinds of large-scale events. Surveyed event planners do not show a distinct
preference for any particular hotel brand.
HVS Convention, Sports & Entertainment Market Analysis 3-6
Brookings Validation Study
The majority of event planners rotate between pre-selected cities. Thirty-
seven percent select a location on a yearly basis, followed by twenty-two
percent that meet in the same location every year. Surveyed event planners
hold roughly 20 percent of their events in Sioux Falls or Rapid City, South
Dakota. Six respondents or 11 percent reported they chose Brookings, but not
the Swiftel Center. The event was hosted at a Brookings hotel facility. Other
host cities chosen:
Thirteen percent chose Pierre, SD;
Eleven percent chose EACH chose Aberdeen or Brookings, SD (not
the Swiftel Center);
Five percent EACH chose Spearfish or Huron, SD;
Four percent Watertown, SD; and
Two percent EACH chose Chamberlain, Deadwood, Kansas City,
Mitchell, Silver Lake Lodge, or Brookings (Swiftel Center).
According to the VenuWorks survey, event planners overwhelmingly prefer
convention facilities with an attached hotel.
Event Location
HVS Convention, Sports & Entertainment Market Analysis 3-7
Brookings Validation Study
Figure 2-5
Hotel Proximity – Combined Current and Potential Clients
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Attached Within 1-10 Min Within 21-30 Min Within 11-20 Min Not Applicable
Potential Clients Current Clients
Source: VenuWorks Survey 2008
For current users of the Swiftel Center, over 90 percent prefer attached
accommodations. The “not applicable” category amounts for less than 10
percent of planners who do not require lodging facilities of any kind. Sixty
percent of potential Swiftel Center clients prefer an attached hotel. The
further away a hotel, the less attractive that facility becomes to event
planners.
VenuWorks identified several key site selection factors that are important to
event planners in deciding where to locate an event. According to those
surveyed, a convenient and accessible location is most important in
determining where event planners hold their events
HVS Convention, Sports & Entertainment Market Analysis 3-8
Brookings Validation Study
Figure 2-6
Site Selection Criteria – Potential Clients
12345
Proximity to key legislative agencies
Proximity to airport
Recreational amenities
Dining & entertainment amenities
Distance between Hotel & Event Facilities
Convenient parking
Geographic location within State
Low High
Source: VenuWorks Survey 2008
Geographic location and convenient parking received the highest ratings,
while leisure amenities were of average or below average importance. The
relatively low importance of airport proximity is most likely due to the high
in-state population of drive-in event participants and attendees.
VenuWorks asked event planners to explain why they have not considered
using the Swiftel Center. The most frequently cited answers include issues
with current hotel amenities and event space.
HVS Convention, Sports & Entertainment Market Analysis 3-9
Brookings Validation Study
Table 2-7
Swiftel Center Specific – Potential Clients
Response % Total
Prefer location w/ attached hotel 7 22%
Size of Swiftel Center (too small) 5 16%
Proximity of hotel rooms 4 13%
Reason unknown 4 13%
Event always held in same location 4 13%
Cost of event & hotel facilities 3 9%
Proximity to membership 2 6%
Do not require full convention center 13%
ADA Accessbility 1 3%
Recreational Amenities 1 3%
32 100%
Source: VenuWorks Survey 2008
The Brookings Area Chamber of Commerce and Convention Bureau
provided HVS with a list of North and South Dakota State Associations. HVS
analyzed these associations, which may act as potential demand to an
expanded Swiftel Center. HVS sorted the associations by location and type of
organization to better understand the potential market demand for the
Swiftel Center. Additionally, HVS tallied the number of conventions these
associations reported hosting.
Table 2-8 illustrates the number of South Dakota and North Dakota State
Associations by their city.
South Dakota State
Associations
HVS Convention, Sports & Entertainment Market Analysis 3-10
Brookings Validation Study
Table 2-8
State Associations by Location
South Dakota City
Number of
State
Associations
Pierre 35
Sioux Falls 33
Rapid City 8
Aberdeen 5
Watertown 5
Brookings 4
Huron 4
Mitchell 2
Spearfish 2
Other 19
Total 117
North Dakota City
Bismarck 54
Fargo 23
Grand Forks 9
Dickinson 6
Mandan 6
Minot 4
Jamestown 3
Valley City 2
Other 12
Total 119 Source: Brookings Arena Chamber of Commerce and Convention Bureau
North Dakota has a greater number of state associations than South Dakota. A
majority of state associations, as is typical of most states, reside in the capital,
Pierre, while a significant number of South Dakota state associations are
headquartered in Sioux Falls. Only eight state associations reside in Rapid
City. Brookings and Sioux Falls, both located almost an equal distance from
Pierre potentially allows both cities to compete for South Dakota association
business from Pierre. Most associations rotate their annual events around the
state and Brookings would have to compete with Sioux Falls for events
rotating to the Eastern part of the state. Given the large number of
HVS Convention, Sports & Entertainment Market Analysis 3-11
Brookings Validation Study
associations located in Sioux Falls, Brookings would be at a disadvantage in
this competition.
Table 2-9 organizes the North Dakota and South Dakota State Associations by
type of association, as categorized by the Brookings Area Chamber of
Commerce and Convention Bureau.
Table 2-9
State Associations by Type
Type of Organization Number of State
Associations
Medicine 21
Service Organizations 17
Education 16
Agriculture 13
Trades 13
Food 10
Real Estate 10
Activisim 9
Animals 9
Government 8
Human Resources 7
Banking 6
Business 6
Legal 6
Construction 5
Other 80
Total 236
Source: Brookings Area Chamber of Commerce and Convention Bureau
A majority of associations fall into the Medical category. A significant portion,
13 associations, are agriculturally centered, a segment of demand that the
Swiftel Center currently focuses on, and anticipates focusing on in the future.
Table 2-10 shows the number of events hosted by associations. A number of
associations did not report hosting any events.
HVS Convention, Sports & Entertainment Market Analysis 3-12
Brookings Validation Study
Table 2-10
State Association Events
Type of Event Number of Events
North Dakota
South Dakota
(without Sioux
Falls)
Only Sioux Falls
Associations
Total South
Dakota
Conventions 24 21 5 26
Tradeshows 5 5 3 8
Conferences 35 26 9 35
Meetings 110 134 60 194
Banquets 4 6 3 9
Consumer Shows 3 1 0 1
Assemblies 4 1 0 1
Other 7 1 1 2
Total 192 195 81 276 Source: Brookings Area Chamber of Commerce and Convention Bureau
South Dakota State Associations, according to the data, produce a greater
number of events than North Dakota State Associations. Associations from
Sioux Falls have almost half of the number of events of associations from
other cities in South Dakota. While this may be a good indicator for increasing
demand potential at the Swiftel Center, due to their proximity to Sioux Falls,
it may alternatively acts a negative indicator as Sioux Falls, among all South
Dakota cities, offers one of the most flexible, and largest convention and
meeting facilities, with, presumably, the ability to accommodate a significant
portion of this demand.
In North and South Dakota, the majority of events are smaller meetings that
are most likely to be based in hotels rather than in a convention center.
HVS met with the City Manager, Swiftel Center staff, members of the Swiftel
Center Advisory Board, Brookings CVB and Chamber of Commerce staff as
well as local business owners, including the owners of businesses that may
compete for events against the Swiftel Center.
With Sioux Falls only 60 miles away, several members of the community
expressed concern over whether the Brookings market is distinct enough to
attract state association events away from Sioux Falls. While individuals
commented that Brookings can successfully attract new business that has an
interest in rotating outside of Sioux Falls, it is expected that conferences and
conventions with attendance greater than 500 people will be hosted in Sioux
Falls, rather than a smaller town like Brookings, due to hotel capacity
constraints. For example, both the Swiftel Center and a local competitor, the
Field Work Interviews
HVS Convention, Sports & Entertainment Market Analysis 3-13
Brookings Validation Study
Shamrock Banquet Hall, bid to host the South Dakota Republican
Convention. According to Brookings CVB staff, the Brookings bid packages
were competitive and offered several incentives. However, the organization
chose Sioux Falls and Brookings CVB staff felt that Sioux Falls won based on
the amenities the city had to offer.
The interviews showed that new demand for event space at the Swiftel
Center could come from SDSU as well as state associations. South Dakota
state associations typically rotate annual conferences and conventions
between locations east and west of the Missouri River. The Swiftel Center
could be a competitive venue for state associations looking to add a new
venue into its east river competitors, which include Sioux Falls and
Watertown. However, there was concern that, at the current pricing structure,
the Swiftel Center is too expensive for the most cost-conscious state
associations.
In addition to state association and university business, the Swiftel Center
could host trade shows. However, CVB staff noted that most of the vendors
in the state are already located in Sioux Falls and that there is not a market for
trade shows in this area of the state.
The Brookings CVB provided HVS with a list of large meetings, conferences
and conventions that occurred in Brookings, SD between 2002 and 2008. In
addition to the Swiftel Center, the Days Inn and Staurolite Inn each hosted at
least two multi-day conferences in 2007. When compared to its local
competitors, the Swiftel Center is in a more desirable location, as it is near the
interstate and a short distance from several hotels. In several meetings, it was
made clear that a need for high quality meeting space exists in Brookings.
With the exception of the newly opened Shamrock Banquet Hall, the existing
supply of privately-owned meeting and conference space does not meet the
level of quality and high-end finishes preferred by local meeting planners and
demanded by less price conscious event planners.
In several meetings, community member voiced the need for additional hotel
rooms in Brookings. While the Shamrock expects to build a hotel that will add
60 rooms to the town’s supply (ground is to be broken in late 2008 or spring
2009) and the 100-room Hampton Inn set for completion in October-
November 2008, the total available room block for group events in Brookings
will be 800 rooms, which is less than the room blocks necessary for events.
HVS Convention, Sports & Entertainment Market Analysis 3-14
Brookings Validation Study
Owners of the Shamrock Banquet Hall and Days Inn each voiced concern
with the proposed expansion of the Swiftel Center, citing frustration with
what they viewed as a publicly subsidized facility acting as competition for
privately run business.
As indicated in the field work interviews, Swiftel Center management
believes that the South Dakota State University (“SDSU”) in Brookings will
drive significant demand for an expanded Swiftel Center. Therefore, to obtain
a better understanding of potential demand, HVS interviewed a number of
the academic departments at SDSU, with a specific focus on agricultural-
related departments. Below, HVS presents a summary of findings from these
interviews.
Current Use of Swiftel Center and Other Venues
In our interviews, HVS first focused on the type of events these SDSU
departments hold and which facilities they use. A majority of departments
HVS interviewed indicated they frequently host small meetings using their
offices’ conference rooms, or for larger departments, meeting rooms in the
Student Union building. However, a number of departments indicated that
they host at least one conference annually. Historically many of these
conferences been held at the Swiftel Center, although some departments said
they had previously used other facilities. One department noted they used a
facility in Sioux Falls, due to its proximity to attendees, while others indicated
that, for cost reasons, they use the ballroom at the Student Union or the
Performing Arts Center for their conferences. The Swiftel Center is often used
for overflow space, when campus space is not sufficient for the event. The
Days Inn has also been used to multi-day conferences that draw attendees
from across the state.
Potential Use of Swiftel Center and Impact of Adjacent Hotel/Expansion
HVS then questioned departments as their potential use of the Swiftel Center
in the foreseeable future and if the addition of an adjacent hotel and/or an
expanded facility would increase their use of the facility. Of those
departments that currently use the Swiftel Center, they all indicated that they
will continue to use the Swiftel Center for their events regardless of additional
developments. A large majority of departments said that an adjacent hotel
and/or expanded facility would not increase the number of events they would
hold at the Swiftel Center, with only one event mentioning the ability to
attract greater attendance with an adjacent hotel.
South Dakota State
University Interviews
HVS Convention, Sports & Entertainment Market Analysis 3-15
Brookings Validation Study
Student Union Meeting Space
The Student Union at SDSU offers a significant amount of meeting space used
frequently by many departments at the SDSU and, therefore, the Student
Union meeting space may act as a competitor to the Swiftel Center regarding
demand SDSU. In the following chart, HVS presents the meeting space
offered at the Student Union.
Figure 2-11
SDSU Student Union Meeting Space
Type of Space Square Feet
Number of
Rooms
Average Number
of Seats
Total Number
of Seats
Ballroom 7,426 2
Meeting Rooms
Conference 52098
Open Square 6 28 166
Lecture 15555
Classroom 2 80 160
Total Meeting Rooms 14 46 479
Total 16 479
Source: SDSU
The Student Union at SDSU offers a ballroom of 7,426 square feet, divisible
into two sections. The facility offers a total of 14 meeting rooms, with a
combination of seating types. All meeting rooms combined offer seating for
479.
Swiftel Center staff provided HVS the names of concert promoters who had
brought events to the Swiftel Center in the recent past. HVS spoke with
representatives from LifeLight Communications, a company that promotes
Christian concerts in the Midwest and is based in Sioux Falls, SD and
Exceptional Artists, a promotions company based in Omaha, NE. Jade
Promotions, a company based in Fargo, ND, was unavailable for an interview.
Promoters pointed to the availability of dates at the Swiftel Center when
compared to venues in Sioux Falls. One promoter noted that the size of the
Swiftel Center arena makes it a unique space when compared to the
Washington Pavilion for Arts and Sciences (capacity 1,800 seats) and the Sioux
Falls Arena (capacity 7,000). While the size may be unique, he also noted that
it also limits the talent that can be drawn. Artists that he thinks could draw a
Promoter Interviews
HVS Convention, Sports & Entertainment Market Analysis 3-16
Brookings Validation Study
large crowd in Brookings, like Foreigner, Bryan Adams and Willie Nelson,
require larger venues than the current capacity of the Swiftel Center Arena.
The promoter stated that he thinks that the population of Sioux Falls, at least
those living in the northern areas of the city, along with several small towns
located near Brookings, would travel to see a concert in Brookings.
Currently, the price of a concert ticket ranges from $40-$55 and Exceptional
Arts stated that the community of Brookings has been willing to pay those
prices for concerts. For the Christian rock groups that LifeLight promotes,
ticket prices typically range from $35-$50, depending on the level of talent.
The college age population of SDSU is one of the characteristics of Brookings
that makes the location desirable for LifeLight. The company promotes
concerts year-round and hosts a large annual festival in Sioux Falls. While
LifeLight has held a tour event in the Daktronics Room at the Swiftel Center,
they have not yet promoted an event in the Swiftel Center arena. At one
point, LifeLight was set to book a concert in the arena, but another group
needed the use of the arena space on the anticipated concert date. LifeLight
would like to use the Swiftel Center more often, but acknowledges that the
most they would use the space would be a few times each year.
Neither promoter voiced concern about the lack of a green room or space
limitations for the current set up of the Swiftel Center. Both stated that the
spaces worked well for the events hosted.
Surveys of North and South Dakota association event planners provide a
basis for estimating future demand and financial operation of an expanded
venue. Responses to the VenuWorks event planner survey indicate that with
an improved venue, Brookings could increase the frequency with which it
hosts association events; however, proximate hotel rooms, more meeting
breakout space, and larger banquet space will be necessary to capture this
business. State associations also demonstrate a high level of price sensitivity,
which will limit the operating revenue that could be achieved by these
events.
While interviews with local industry participants expressed interest in
expanded SDSU’s use of the Swiftel Center, follow-up interviews with SDSU
event planners indicates that the potential for growth in SDSU events at
Swiftel Center is limited. Many are already using the Swiftel Center and
venue improvements are unlikely to increase their frequency of use. Almost
Market Analysis
Conclusions
HVS Convention, Sports & Entertainment Market Analysis 3-17
Brookings Validation Study
all SDSU event planners are price sensitive and for this reason, prefer to use
the Student Union or other facilities at SDSU when available.
Concert event promoters indicated a continued interest in using the Swiftel
Center and an interest in the Brookings market. Facility improvements that
allowed for simultaneous use of the arena for concerts and the meeting and
ballroom space for other functions could increase the capacity of the Swiftel
Center to host a variety of event types.
HVS reviewed the competitive facilities in South Dakota described in the
VenuWorks study. HVS analyzed the facility programs of these competitors
that compete with the existing or expanded Swiftel Center.
Figure 3-1 shows a map of the location of the competitive inventory.
VenuWorks
Competitive Set
HVS Convention, Sports & Entertainment Market Analysis 3-18
Brookings Validation Study
Figure 3-1
Map of Competitive Inventory
Source: Microsoft Streets and Trips
Sioux Falls, roughly 60 minutes from Brookings, offers the greatest set of
potential competitors among all cities in South Dakota, with the Sioux Falls
Convention Center offering some of the largest function space in the South
Dakota. Watertown, roughly 50 minutes from Brookings, offers an arena with
exhibition space, as well as a hotel with ballroom and meeting space.
For the purposes of this study, HVS organized the competitive facilities into
two separate categories—stand-alone convention/exhibition centers and
hotels with significant conference space.
HVS Convention, Sports & Entertainment Market Analysis 3-19
Brookings Validation Study
Table 3-1 summarizes the inventory of the 17 competitive facilities.
Table 3-1
Competitive Inventory
Stand-Alone Facilities Location
Exhibition Space
(sq ft)
Ballroom Space
(sq ft)
Meeting Space
(sq ft)Meeting Rooms
Rushmore Plaza Civic Center Rapid City
75,902 - unknown 27
Sioux Falls Arena Sioux Falls
35,000 - unknown unknown
Sioux Falls Convention Center Sioux Falls
33,600 16,800 1 10,290 12
Watertown Civic Arena Watertown
16,500 0 unknown 1
Huron Event Center (with arena) Huron
14,000 11,925 5,000 6
Shamrock Banquet Hall Brookings
- 16,217 - -
Hotel Conference Centers
Best Western Ramkota Hotel Sioux Falls 20,000 11,000 8,200 9
Best Western Ramkota Hotel Rapid City - 28,300 8,590 8
Holiday Inn and Conference Center Spearfish
- 11,230 4,000 2
The Oaks Hotel and Convention Center Sioux Falls
- 15,470 680 1
Best Western Ramkota Hotel Aberdeen - 15,000 unknown 1
Cedar Shore Resort Chamberlain
- 12,918 1,250 3
Best Western Ramkota Hotel Watertown - 12,000 11,500 19
Best Western Ramkota River Center Hotel Pierre - 12,000 2,760 6
Ramada Inn and Convention Center Aberdeen
- 10,500 unknown 2
Holiday Inn City Center Sioux Falls
- 7,632 3,990 6
Days Inn Convention Center Brookings
-5,4000 0
1 Can be combined with exhibit hall for a 50,400 square foot exhibition hall
Source: VenuWorks Study, Respective Facilities
Among all stand-alone facilities, the Rushmore Plaza Civic Center in Rapid
City offers the greatest amount of exhibition space with 75,902 square feet of
exhibition space, although it does not offer any ballroom space. The Sioux
Falls Convention Center offers the second largest amount of total function
space with 33,600 square feet of exhibition space and 16,800 square feet of
ballroom space. The Shamrock Banquet Hall, the largest in Brookings, offers a
16,217 square foot ballroom.
Only the Best Western Ramkota in Sioux Falls offers exhibit space, while all
other hotel conference centers offer a significant amount of ballroom and
meeting space. The Best Western Ramkota in Rapid City, and the Holiday Inn
and Conference Center in Spearfish offer the largest ballrooms of all hotel
conference centers. The Days Inn Convention Center in Brookings offers the
smallest ballroom of 5,400 square feet.
HVS Convention, Sports & Entertainment Market Analysis 3-20
Brookings Validation Study
Currently, the Days Inn Convention Center and the Shamrock Banquet Hall
inadvertently act as strong local competitors to the Swiftel Center. While the
Swiftel Center does not actively pursue local groups from within the town of
Brookings, these groups often directly contact the Swiftel Center. The Swiftel
Center is not able to compete with some of the larger facilities for conventions
and tradeshows, due to a lack of ballroom and meeting space.
In the following paragraphs, HVS describes each of the competitive venues,
detailing their location, opening year, management, and function space
capabilities.
Rushmore Plaza Civic Center—Situated in Rapid City, South Dakota, the
Rushmore Plaza Civic Center opened in 1977. A Holiday Inn with 205 rooms
and 14,000 square feet of meeting space is located adjacent to the Rushmore
Plaza Civic Center. The Rushmore Plaza Civic Center offers an arena, with
34,500 square feet of floor space and capacity for 10,000 for concerts, and a
theater with 1,752 seats. The convention center section of the Rushmore Plaza
Civic Center, offers an exhibit hall of 41,402 square feet, and a ballroom of
15,264, divisible into four sections. The facility also offers 27 meeting rooms.
Sioux Falls Arena—The Sioux Falls Arena, owned by the city and managed
by SMG, is located in Sioux Falls, South Dakota, adjacent to the Sioux Falls
Stadium and Howard Wood Field, and across from the Sioux Falls Regional
Airport. Attached to the Sioux Falls Arena are the Sioux Falls Convention
Center and a Sheraton with 243 guest rooms. The Sheraton offers 33,600
square feet of exhibit space, a 16,800 square foot ballroom, a 2,600 square foot
ballroom and roughly 12,000 square feet of meeting space. The Sioux Falls
Arena offers 35,000 square feet of floor space.
Sioux Falls Convention Center—As mentioned above, the facility connects
with the Sioux Falls Arena, and is located across from the Sioux Falls Regional
Airport. The city owns the facility, while Global Spectrum manages it. The
Sheraton, with 243 guest rooms, connects by an enclosed walkway to the
Sioux Falls Convention Center. The Sioux Falls Convention Center offers
33,600 square feet of exhibit space, a 16,800 square foot ballroom, and a 2,600
square foot ballroom. The facility also offers seventeen meeting rooms totaling
12,000 square feet of meeting space. The facility also offers 3,400 parking
spaces.
Watertown Civic Arena—The Watertown Civic Arena, in Watertown South
Dakota, is located 10 miles from the Watertown Municipal Airport. The
HVS Convention, Sports & Entertainment Market Analysis 3-21
Brookings Validation Study
facility offers 16,500 square feet of rentable floor space, and one meeting
room.
Huron Events Center—The Huron Events Center and Arena sit in Huron,
South Dakota. Adjacent to the facility is a Crossroads Hotel with 100 guest
rooms. The facility offers an 8,175 square foot ballroom, divisible into eight
sections, in addition to a ballroom of 3,750 square feet. Three meeting rooms
total 1,750 square feet and a symposium theater totals 725 square feet. The
Huron Arena offers 14,000 square feet of floor space.
Shamrock Banquet Hall—The Shamrock Banquet Hall in Brookings, South
Dakota, offers three ballrooms totaling 16,217 square feet. Two of the
ballrooms can be combined into a 14,277 square foot ballroom.
Best Western Ramkota Hotel Sioux Falls—The Best Western Ramkota Hotel
Sioux Falls is located near the Sioux Falls Regional Airport and the Elmwood
Golf Course. The facility, with 226 guest rooms, offers a 20,000 square foot
exhibit hall and a ballroom of 11,000 square feet, divisible into four sections.
Nine meeting rooms total 8,200 square feet. The complex also offers two
amphitheaters, one with 85 seats classroom style and another with 158 seats
theater style.
Best Western Ramkota Hotel Rapid City—The Best Western Ramkota Hotel
Rapid City is located near the Rushmore Mall in Rapid City, South Dakota.
With 267 guest rooms, the Best Western offers one ballroom of 15,100 square
feet, divisible into six sections and another ballroom of 13,200. Eight meeting
rooms total 8,590 square feet.
Holiday Inn and Conference Center Spearfish—The Holiday Inn and
Conference Center in Spearfish, South Dakota, with 145 guest rooms, is
located between the Spearfish Canyon Country Club and the Black Hills
Airport. The facility offers an 11,232 square foot ballroom and two meeting
rooms totaling 4,000 square feet.
Oaks Hotel and Conference Center—The Oaks Hotel and Conference Center
in Sioux Falls, with 200 guest rooms, is located near the Elmwood Golf Course
and the Sioux Falls Regional Airport. The facility offers a 10,000 square foot
ballroom and a 5,470 square foot ballroom, each divisible into four sections. It
also offers one meeting room of 680 square feet.
HVS Convention, Sports & Entertainment Market Analysis 3-22
Brookings Validation Study
Best Western Ramkota Hotel Aberdeen—The Best Western Ramkota Hotel
Aberdeen is located near an industrial park and two golf courses in Aberdeen,
South Dakota. The hotel provides 154 guest rooms. The facility offers a
ballroom of 10,000 square feet, divisible into five sections, in addition to a
ballroom of 1,716 square feet, divisible into four sections. The Best Western
also offers a boardroom of 264 square feet and a 212-seat amphitheater.
Cedar Shore Resort—The Cedar Shore Resort, with 99 guest rooms, is located
on the banks of the Missouri River in Chamberlain, South Dakota. The Cedar
Shore Resort offers a 9,000 square foot ballroom and a 3,918 square foot
ballroom. The facility also provides three meeting rooms totaling 1,250 square
feet.
Best Western Ramkota Hotel Watertown— The Best Western Ramkota
Watertown, with 101 guest rooms, is situated in Watertown, South Dakota
near Lake Pelican and the Watertown Municipal Airport. The hotel connects
to the city-owned Watertown Events Center. The Watertown Events Center
offers a 12,00 square foot ballroom, divisible into six sections and nineteen
meeting rooms totaling 11,500 square feet. It also features an ampitheater with
284 seats.
Best Western Ramkota Hotel River Center—The Best Western Ramkota
River Center features a ballroom of 12,000 square feet, divisible into seven
sections in addition to six meeting rooms totaling 2,760 square feet. The
facility also offers an ampitheater with 84 classroom style seats and 148
theater style seats.
Ramada Inn and Convention Center—The Ramada Inn and Convention
Center Aberdeen, with 152 guest rooms is situated in Aberdeen, South Dakota
near the Lakewood Mall. The Ramada Inn and Convention Center in
Aberdeen offers a 10,500 square foot ballroom, divisible into eight rooms and
two boardrooms.
Holiday Inn City Center—The Holiday Inn City Center, with 299 guest
rooms, is located in downtown Sioux Falls, South Dakota. The Holiday Inn
City Center offers a 5,760 square foot ballroom, a 1,872 square foot ballroom
and a round room of 4,300 square feet. Additionally, the facility offers six
meetings rooms totaling 3,990 square feet.
HVS Convention, Sports & Entertainment Market Analysis 3-23
Brookings Validation Study
Days Inn Convention Center—The Days Inn Convention Center, with 125
guest rooms , is located off of I-29, in Brookings, South Dakota. The facility
offers a ballroom of 5,400 square feet, divisible into four sections.
The competitive facilities vary widely—from small hotel conference centers
with ballroom and meeting space to integrated convention centers with
arenas. In the Swiftel Center’s current state, the facility has been unable to
successfully and consistently compete with some of the larger facilities due to
a lack of ballroom and meeting space. According to the survey results, the
Swiftel Center—even with additional ballroom space—may face difficulties
competing against hotel conference centers as many event planners demand
integrated facilities with hotel rooms, meeting rooms and a ballroom under
one roof. As a group, these venues help to illustrate how the Swiftel Center
compares to the existing convention and conference supply in South Dakota
and provide valuable insight into how the Swiftel Center could potentially
expand successfully.
Conclusion
HVS Convention, Sports & Entertainment Comparable Venues 4-1
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4. Analysis of Comparable Venues
HVS analyzed six comparable facilities outside South Dakota and compared
their venue capabilities and surrounding market characteristics, relevant to
the success of a convention center. HVS selected six peer convention centers
in consultation with client representatives. Although these venues are not
competitors, they provide examples of venues that the Swiftel Center could
emulate in its expansion plans. The comparable venues include:
Alerus Center
Casper Events Center
Clay County Regional Events Center
Dixie Center
Mid-America Center
St. Cloud Civic Center
The Alerus Center ("AC") is situated in Grand Forks, North Dakota, located on
the border of North Dakota and Minnesota, one hour south of the Canadian
border and one hour north of Fargo, North Dakota. The ACC sits on the west
side of downtown Grand Forks near the University of North Dakota, roughly
five miles from the Grand Forks International Airport. The AC, managed by
VenuWorks, opened in 2001, replacing the Grand Forks Civic Center, built in
the 1950's. A Canad Inn with 201 guest rooms connects via a concourse to the
AC.
Comparable Venues
Alerus Center
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Figure 3-1
Alerus Center Floor Plan
Source: Alerus Center
The AC offers an arena with full seating capacity for 21,000 and 99,600 square
feet of rentable floor space. The facility also offers a 26,000 square foot
ballroom, divisible into five sections, as well as 12 meeting rooms totaling
11,454 square feet. The AC offers 4,198 adjacent parking spaces. The
connected Canad Inn offers one meeting room and an indoor water park.
The Casper Events Center ("CEC") is located in Casper, Wyoming, roughly
eight miles from the Natrona County International Airport and four hours
northwest of Denver. The facility is owned and operated by the city and
offers 3,600 adjacent parking spaces.
Casper Events Center
HVS Convention, Sports & Entertainment Comparable Venues 4-3
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Figure 3-2
Casper Events Center Floor Plan
Source: Casper Events Center
The CEC offers an Arena with full seating capacity for 9,749 people and
rentable floor space of 16,540 square feet. The facility also offers a ballroom of
3,820 square feet and four meeting rooms totaling 3,012 square feet.
The Clay County Regional Events Center ("CCEC") is situated in Spencer,
Iowa, the northwestern section of Iowa. Two hours east of Sioux Falls and
four hours northwest of Des Moines, the CCEC is 15 minutes south of Lake
Okoboji, a major tourist attraction in northern Iowa. The CCEC is located at
the north end of downtown within the Clay County Fairgrounds, five miles
from the Spencer Municipal Airport. VenuWorks manages the CCEC, which
opened in 2003. There is no hotel adjacent to the CCEC or the greater Clay
County Fairgrounds.
Clay County Regional
Events Center
HVS Convention, Sports & Entertainment Comparable Venues 4-4
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Figure 3-3
Clay County Regional Events Center Floor Plan
Source: Clay County Regional Events Center
The CCEC offers an arena with full seating capacity of 3,400 and 24,000 square
feet of rentable floor space. It also offers a ballroom of 7,560 square feet,
divisible into six sections, a boardroom of 522 square feet and an event office
of 204 square feet.
The Dixie Center ("DC") is in St. George, UT, near the tri-state border of Utah,
Nevada and Arizona. Opened in 1998, the DC is located roughly two hours
from the McCarran International Airport in Las Vegas and only four miles
from downtown St. George. There are no adjacent hotels, although two hotels
are located within one block of the DC.
Dixie Center
HVS Convention, Sports & Entertainment Comparable Venues 4-5
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Figure 3-4
Dixie Center Floor Plan
Source: Dixie Center
The DC offers 46,500 square feet of column free exhibition space, divisible into
four sections. It also offers a 13,205 square foot ballroom and nine meeting
rooms totaling 14,088 square feet of meeting space. Pre-function space totals
12,635, while the Mezzanine level offers five mini-suites overlooking the
exhibit hall. An auditorium offers seating for 148.
The Mid-America Center ("MAC") is located in Council Bluffs, Iowa, while it
geographically situated between downtown Council Bluffs and downtown
Omaha, roughly four miles from each cities' downtowns. The MAC, operated
by SMG, opened in 2002. Connected to the facility is a Country Inn and Suites
with 133 rooms. The MAC complex offers 2,600 open-surfaced parking spaces
and is located five miles from the Omaha Eppley Airfield.
Mid-America Center
HVS Convention, Sports & Entertainment Comparable Venues 4-6
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Figure 3-5
Mid-America Center Floor Plan
Source: Mid-America Center
The MAC offers an arena with concert seating capacity for 9,000 and 30,000
square feet of rentable arena floor space. The convention center offers
additional exhibition space with a 24,000 square foot exhibition hall. It also
offers a 23,000 square foot ballroom divisible into four sections and six
meeting rooms totaling 1,000 square feet.
The St. Cloud Civic Center ("SCSS") is situated in St. Cloud, Minnesota,
located in central Minnesota, more than one hour from Minneapolis. The
SCSS is located in the downtown area St. Cloud, along the Mississippi River,
six miles from the St. Cloud Regional Airport. Owned and operated by the
City of St. Cloud, the SCSS opened in 1989. The Radisson Suite Hotel St.
Cloud, with 103 guest rooms, connects directly to the SCSS via a skywalk.
St. Cloud Civic Center
HVS Convention, Sports & Entertainment Comparable Venues 4-7
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Figure 3-6
St. Cloud Civic Center Floor Plan
Source: St. Cloud Civic Center
On the first floor of the SCSS are two exhibit hall; one exhibit totals 16,000
square feet, divisible into two sections and the other exhibit hall totals 26,000
square feet. Additionally on the first floor is a small ballroom of 3,924 square
feet, divisible into two meeting rooms, and a boardroom of 700 square feet.
HVS Convention, Sports & Entertainment Comparable Venues 4-8
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The second floor offers a ballroom of 4,502 square feet, divisible into five
meeting rooms and four additional meeting rooms totaling 4,220 square feet.
The quantity of exhibition space available at convention centers generally
determines the facility’s capacity in terms of the number and size of exhibiting
events it can accommodate. The quality of exhibition space in a venue often
determines what types of groups will want to hold events there and what
level rents they will be willing to pay. HVS compared the exhibition space
available at each of the selected peer facilities to the subject property. For the
purposes of this study, all exhibition space presented below includes rentable
floor space of facilities’ arenas.
Figure 3-7
Exhibition Space in Comparable Venues (Square Feet)
0 20406080100120
Alerus Center
Mid-America Center
Dixie Center
St. Cloud Civic Center
Swiftel Center
Clay County Regional Events Center
Casper Events Center
Thousands Source: HVS
The Swiftel Center, with 33,500 square feet of exhibition space, including the
arena floor and concourse, is near the lower range of comparable venues.
Facilities with greater exhibit space, especially the Alerus Center, have greater
capability for hosting large exhibiting events.
Banquet space has become increasingly important for convention centers
during the past two decades, as facility operators have attempted to grow
food service revenues at their facilities. In addition to banquets, several other
types of events, such as conventions and tradeshows, typically have a dining
component that utilizes banquet space.
Exhibition Space
Assessment
Banquet Space
Assessment
HVS Convention, Sports & Entertainment Comparable Venues 4-9
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Figure 3-8
Banquet Space in Comparable Venues (Square Feet)
0 5 10 15 20 25 30
Alerus Center
Mid-America Center
Swiftel Center Proposed Expansion
St. Cloud Civic Center
Dixie Center
Clay County Regional Events Center
Swiftel Center
Casper Events Center
Thousands
Source: HVS
With a 6,800 square foot banquet room, the Swiftel Center offers the second
smallest amount of banquet/ballroom space among all comparable venues.
With the proposed expansion, a 12,000 square foot ballroom would replace
the current Daktronics Banquet Room. In the event of this expansion, the
Swiftel Center would then offer a larger ballroom than all comparable
facilities with the exception of the Mid-America Center and the Alerus Center.
Meeting rooms accommodate sub-groups as they break out of larger events
such as conventions and small tradeshows, self-contained meetings, training
sessions, seminars, classes, and a variety of small meeting functions. Meeting
rooms are often the most frequently used function spaces. Convention centers
should offer meeting space that is proportionate to the amount of exhibition
space available at the facility. However, the optimum amount of meeting
space can vary depending on a facility’s target market.
Meeting/Breakout
Space Assessment
HVS Convention, Sports & Entertainment Comparable Venues 4-10
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Figure 3-9
Meeting Space in Comparable Venues (Square Feet)
02468101214
Alerus Center
Swiftel Center Proposed Expansion
Dixie Center
Swiftel Center
St. Cloud Civic Center
Casper Events Center
Mid-America Center
Clay County Regional Events Center
Thousands
Source: HVS
Currently, the Swiftel Center offers over 5,000 square feet of meeting space,
although, as will be illustrated in the following section, the meeting space is
only divisible into the two County rooms and an additional meeting room. To
address the lack of break-out space and the ensuing complications with
attracting groups, the VenuWorks Study proposed the addition of nearly
10,000 square feet of meeting space, placing it far ahead of most comparable
venues.
Divisible meeting space enables a venue to serve a broad range of event types
with different space needs. Divisibility adds flexibility in the amount of space
the facility can rent, thereby allowing it to best match rented space with
customer needs. Divisibility and flexibility also allow venues to serve multiple
events simultaneously, thereby maximizing facility utilization.
Divisibility of Meeting
Spaces
HVS Convention, Sports & Entertainment Comparable Venues 4-11
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Figure 3-10
Divisibility of Meeting Space in Comparable Venues
0 2 4 6 8 101214
Alerus Center
Dixie Center
Swiftel Center Proposed Expansion
Mid-America Center
St. Cloud Civic Center
Casper Events Center
Swiftel Center
Clay County Regional Events Center
Source: HVS
The Swiftel Center, in its current form, offers three rooms of meetings space.
The lack of meeting rooms does not allow for the flexibility in break-out
spaces that many groups require. With the proposed expansion, the Swiftel
Center would offer eight meeting rooms, third among all comparable venues.
The assessment of the Swiftel Center’s meeting space excludes the Daktronics
Room but includes the County conference rooms, which can only be rented if
not in use by the County.
Adjacent hotel capacity has become one of the most important selection
factors for facility users. To successfully attract out-of-town groups, a
convention center must be supported by an adequate supply of nearby hotel
rooms that can house delegates, exhibitors, and other attendees. Proximity
and connectivity are critical factors that event planners consider in evaluating
overall hotel packages available in competing communities. While the
number of adjacent hotel rooms acts as the basis of comparison, other
important factors include hotel brands, service levels, building ages,
management, and available meeting and banquet spaces in these hotels.
Adjacent Hotel
Capacity
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Figure 3-11
Adjacent Hotel Capacity
0 50 100 150 200 250
Alerus Center
Dixie Center
Mid-America Center
St. Cloud Civic Center
Swiftel Center Proposed Expansion
Clay County Regional Events Center
Casper Events Center
Swiftel Center
Source: Respective Facilities
Currently, the Swiftel Center, the Clay County Regional Events Center and
the Casper Events Center are the only venues lacking an adjacent hotel.
While the VenuWorks Study did not discuss the potential for an adjacent
hotel, discussions have occurred since the publication of the report regarding
the potential for a 100-room hotel without any meeting space in the hotel.
With a 100-room headquarter hotel, the Swiftel Center would compare to the
St. Cloud Civic Center, providing an amenity crucial to many event planners.
Travel costs associated with attending a convention center event can
contribute to a facility’s overall ability to attract delegates, exhibitors, and
attendees. High travel costs can become a deterrent for certain types of
groups in a facility’s potential market whereas low travel costs can be a
competitive advantage in attractive certain price-sensitive groups. HVS
evaluates two primary travel expense categories that include costs associated
with hotel accommodations and meals.
Travel Costs