10184 W Belleview Ave, Suite 100 Littleton, Colorado 80127 303-991-0070 FAX 303-951-3733

MEMORANDUM

Date: April 22, 2014

To: Tim Romani, ICON Venue Group
Mike Harms, ICON Venue Group

From: Patty Silverstein, Development Research Partners
David Hansen, Development Research Partners

RE: The Economic Benefits of On-Going Operations and Visitor Spending Associated with the New Colorado
State University Football Stadium

The intent of this analysis is to estimate the economic benefits of on-going operations and visitor and stadium
attendee spending activities associated with a proposed on-campus football stadium at Colorado State University
(CSU) in Fort Collins, Colorado. This memo provides a high-level overview of the potential economic benefits of
the on-going business and visitor spending activities in Larimer County. It should be noted that changes in local
suppliers, visitor spending patterns, or other variables might change the benefits reported in this study. The
economic benefits estimated in this report are dependent on the project assumptions and are not guaranteed.
The economic benefits in this study are based on the projected incremental increases in economic activity
associated with the new stadium. Hughes Stadium currently generates economic activity throughout the region.
However, a larger, more centrally located stadium will likely encourage increased attendance and associated
increased purchases of concessions and other goods and services. In addition, the larger facility will require
increased spending to maintain, staff, and operate the facility. These increases in spending will result in new
economic activity in Larimer County.
Economic Impacts Defined
Economic impact analysis is the analytical approach used to assess the measurable direct and indirect benefits
resulting from a project over a specific period. Only those benefits that can be measured or quantified are
included. Intangible benefits, such as enhancement of community character or diversification of the job base, are
not included.
The direct economic benefits, or business-to-business or consumer-to-business activity, have multiplicative
effects on the region. Therefore, multiplier analysis is used to trace the impacts on businesses, organizations, and
individuals affected by the project as the impacts work their way through the economy. Multiplier analysis
recognizes the interdependence of various sectors of the economy as activities in one sector spill over into other
sectors, stimulating business activity.
The multiplicative effects are discussed in terms of indirect and induced impacts (often collectively referred
to as simply indirect impacts). When a company purchases supplies from a local vendor, that local vendor in turn
provides payroll to its employees and makes purchases from other vendors. These other vendors in turn provide
payroll to their employees, and so on, providing the indirect impact of the project. On a separate but similar
spending track, when employees associated with the company spend their paychecks at local businesses, these
local businesses provide payroll to their employees, make purchases from other vendors, and so on, creating the
induced impact of the company. In other words, the initial dollars spent by the company on either purchases or
payroll are circulated throughout the economy a number of times.

Development Research Partners: The Economic Benefits of New CSU Stadium Page 2
The number of times that the initial dollars are circulated throughout the economy are estimated using economic
multipliers. The indirect and induced jobs and income flows generated by the direct spending patterns are
estimated using the Regional Input-Output Modeling System II (RIMS II) multipliers developed by the U.S.
Department of Commerce, Bureau of Economic Analysis. This analysis uses the industry-specific RIMS II
multipliers for Larimer County, Colorado. Values have been inflated by 3 percent each year and reflect the value
of nominal dollars for that year. Year 1 is assumed to be 2015 dollars.
There are three types of economic impacts discussed. First, the direct and indirect impact of the project on the
gross output of the region is estimated. This is the total value of the output produced by local firms and residents
resulting from the value of the output produced by the project directly. Gross output includes the value of both
intermediate goods and final products, so this is a larger value than gross domestic product (GDP) for the region.
Second, the total direct and indirect employment needed in the region to produce this level of output is
determined. These employees may be full-time or part-time, local or non-local workers. It should be noted that the
indirect employment supported might represent fractions of jobs, added to reflect whole positions. Third, the
analysis includes an estimate for the typical direct and indirect earnings associated with this level of production.
This memorandum includes a limited fiscal impact analysis. Fiscal impact analysis estimates the direct public
revenues and public costs resulting from a project over a specific period. A project may generate a broad array of
public revenues ranging from sales tax, use tax, property tax, franchise fees, licenses and permits, and other
charges for services. In turn, local governments provide a variety of public services. This memorandum only
analyzes the direct public revenue to the City of Fort Collins from sales tax and lodging tax imposed on increases
in spending by stadium attendees. These benefits are not in addition to the economic benefits reported in the
study, but are a component of the indirect and induced economic benefits of the project.
The Economic and Fiscal Benefits of On-Going University and Stadium Operations
The proposed stadium has a total capacity of 40,000 people. The assumptions used in the analysis were based on a
base attendance scenario developed by the consulting firm CS&L. The scenario uses average Hughes Stadium
attendance from the 2002 to 2011 seasons and an adjustment factor for a larger stadium. Football game attendance
during the first year of the new stadium is projected to be about 30,821 people. Attendance is expected to increase
by about 4 percent each year until year 5 of operations, after which attendance is assumed constant. This report
analyzes the incremental spending impacts over the first 10 years of stadium operations.
Data on spending patterns of event attendees and visitors were based on perceptions of fan behavior and past
experiences of ICON Venue Group in developing urban stadiums versus suburban stadiums. The analysis consists
of two main categories of on-going benefits of the stadium: (1) increased spending on stadium expenses, and (2)
increased spending from event attendees and visitors.
Costs associated with operating and maintaining the larger stadium will increase due to more event staff and
other expenses. Comparing estimates of average stadium expenses from the 2009-2011 seasons and the
CS&L base scenario analysis, the new stadium will require about $12.7 million more in spending for
operations, maintenance, and events over the first 10 years.
Based on the relationships revealed through the RIMS II multipliers for the colleges and universities industry
in Larimer County, $12.7 million in direct spending will require about 164 full-time equivalent (FTE)
workers over the 10-year period, or an average of about 16 workers each year. This includes additional
university employees for the stadium as well as event staff, repair and maintenance workers, and other
temporary jobs related to the stadium. Based on 2,080 hours of work for one FTE worker, work hours will

Development Research Partners: The Economic Benefits of New CSU Stadium Page 3
average about 34,035 hours annually.
1
The direct benefits of expanded stadium operations are detailed in
column 1 of Table 1.
Project planners anticipate increased attendance at a new, on-campus stadium. Increased attendance will result
in more retail spending on various non-food goods and services, such as gasoline, souvenirs, and other items.
In addition, private businesses within the vicinity of campus will likely open up private lots that will capture
about 10 percent of the parking, which will also generate economic activity. Based on anticipated spending
patterns, the new stadium will result in an increase in retail sales of about $8 million over the first 10 years of
stadium operations. This includes the value of city sales tax charged on taxable retail spending activity.
Adjusting the spending to reflect a retail margin (retail spending less cost of goods sold),
2
yields an estimated
retail benefit of about $3.7 million.
Based on the relationships revealed through the RIMS II multipliers for the retail trade industry in Larimer
County, increased retail spending will support about 37 employees over 10 years, or an average of nearly 4
workers per year. These employees will have associated earnings of about $1.1 million over 10 years. The
direct benefits of retail spending are detailed in column 1 of Table 1.
The largest category of benefits for the new stadium is increased spending for food and beverages. This
consists of spending at local bars and restaurants, as well as stadium concessions operated by private vendors.
In addition to more attendees, it is expected that average food and beverage purchases per attendee will
increase because the stadium will be located closer to local businesses, giving fans more time and opportunity
to make purchases. The estimated increase in local spending on food and beverages is $20.7 million over the
first 10 years of stadium operations. This includes the value of city sales tax.
Based on the relationships revealed through the RIMS II multipliers for the food and beverage services
industry in Larimer County, $20.7 million in spending will support about 271 employees over 10 years, or an
average of 27 employees per year. These employees will have associated earnings of $6.3 million over 10
years. The direct benefits of food and beverage services spending are detailed in column 1 of Table 1.
A portion of the game attendees will travel to Fort Collins from out-of-town and will purchase lodging
services. Project planners estimate that the new stadium will result in an average of about 1,520 additional
room nights of demand each year for the first 10 years of stadium operations. Based on a current average
room rate of $169 per night during a home football game, total lodging spending will increase by an estimated
$4.4 million over 10 years. This includes the value of city sales and lodging tax.
Based on the relationships revealed through the RIMS II multipliers for the hotels and motels industry in
Larimer County, the increased lodging revenue will support about 38 employees (4 employees per year) with
associated earnings of about $1.2 million over 10 years. The direct benefits of lodging services spending are
detailed in column 1 of Table 1.

1
Depending upon game day staffing needs, not all of these workers represent year-round employment. For example, 4.6 FTE
workers would represent game day employment only, assuming staffing needs consisted of 200 workers for 8 hours for 6
games, representing 9,600 hours of work. (9,600 hours / 2,080 hours =4.6 FTE). The remaining approximately 12 FTE
workers would represent potential year-round employment.
2
The entire value of retail sales overestimates the benefits of this activity. A retail trade margin is used to estimate the
spending that actually contributes to local wages and indirect business purchases. Based on an analysis of the retail trade
margins for likely spending categories, only about 34 percent of the purchases will directly benefit the county economy and
have multiplier effects. The remaining 66 percent received by the retailers represents the cost of goods sold, dollars that
generally exit the region as the stores pay for their inventory. A retail margin was not applied to anticipated parking revenue.

Development Research Partners: The Economic Benefits of New CSU Stadium Page 4
In total, the direct benefit of $41.5 million of increased stadium operations and event attendee spending in the
county will likely support $28.5 million in additional output in all industries throughout the region over the
first 10 years of stadium operations. This includes the value of local spending by the employees (the induced
impact) and of the local supplier companies and their employees (the indirect impact). The indirect and
induced impacts are detailed in column 3 of Table 1.
The production of the $28.5 million in additional output in all industries throughout Larimer County requires
about 200 workers, referred to as the indirect workers. These workers will have associated earnings of about
$7.4 million (the indirect earnings) over 10 years. (Table 1, Column 3)
Therefore, the total direct and indirect benefits of the new stadium in Larimer County include $70 million in
total output ($41.5 million direct output +$28.5 million indirect and induced output) and 710 employees
(510 direct employees +200 indirect employees) earning a total of $21.5 million ($14.1 million direct
earnings +$7.4 million indirect earnings) over the first 10 years of stadium operations. (Table 1, Column 4)
Spending from event attendees at the new stadium will also generate sales tax and lodging tax revenue for the
City of Fort Collins. Based on the city sales tax rate of 3.85 percent, $30.8 million in retail, restaurant,
concessions, and hotel spending over the first 10 years of stadium operations will generate about $1.2 million
in sales tax revenue. In addition, based on the lodging tax rate of 3 percent in the city, $4.1 million in hotel
spending over 10 years will generate about $124,000 in lodging tax revenue. Combined, the fiscal benefit
from sales tax and lodging tax revenue is an estimated $1.3 million over 10 years.
Table 1: Incremental Economic Benefits of Stadium Operations for First 10 Years*

Calculation Note: (Total Impact) = (Direct Impact) + (Indirect + Induced Impact)
*All values are the total over 10 years.
Source: Development Research Partners, based on multipliers for Larimer County from the U.S. Department of Commerce, Bureau of Economic Analysis,
Regional Input-Output Modeling System (RIMS II), 2002 U.S. Benchmark I-O Data and 2010 Regional Data.
Di rect Impact
(1)
Mul ti pl i er
(2)
Indi rect +
Induced
Impact (3)
Total Impact
(4)
Stadium Spending
Total Output ($M) $12.7 1.8665 $11.0 $23.7
Earnings ($M) $5.5 1.5086 $2.8 $8.3
Employment 164 1.5056 83 247
Retail Spending
Total Output ($M) $3.7 1.6057 $2.2 $5.9
Earnings ($M) $1.1 1.5180 $0.6 $1.7
Employment 37 1.4253 16 53
Food and Beverage Services Spending
Total Output ($M) $20.7 1.6188 $12.8 $33.5
Earnings ($M) $6.3 1.5317 $3.3 $9.6
Employment 271 1.3051 83 354
Lodging Spending
Total Output ($M) $4.4 1.5733 $2.5 $6.9
Earnings ($M) $1.2 1.5711 $0.7 $1.9
Employment 38 1.4761 18 56
Total
Total Output ($M) $41.5 $28.5 $70.0
Earnings ($M) $14.1 $7.4 $21.5
Employment 510 200 710

Development Research Partners: The Economic Benefits of New CSU Stadium Page 5
Qualifying Statements
These impacts are likely to occur during the first 10 years of stadium operations assuming similar business
conditions.
This analysis does not indicate whether the direct and indirect employees are residents of the local area or
nonresidents that commute into the area.
This is a conservative estimate of the economic and fiscal benefits associated with a new stadium for several
reasons:
o Attendance figures and associated spending patterns are based on six football games per season.
Associated benefits for additional stadium uses such as concerts and other events are not included.
o The stadium will likely spur additional benefits beyond those reported in this study. For instance,
economic activity in the region will increase if the stadium helps attract a larger student body to CSU or
encourages businesses to locate to Fort Collins.
o Fiscal benefits include only the consumer-to-business transactions and do not consider any increased sales
or use tax generated by more business-to-business transactions.