Sports and entertainment venues generate revenue, attract retail establishments and provide benefits of all types to government. Because of this, sports and entertainment districts have become very “hot items” and every city wants at least one.
In the past, most sports and/or entertainment districts were subsidized by cities or some sort of government revenue. Some still are…but the new trend is to create public-private partnerships designed to develop a district. A city may be responsible for zoning, traffic improvements, providing city property and more. But, today, most vibrant sports and/or entertainment districts become a reality through a mix of private-sector capital and public contributions of some sort.
Some of these districts do receive tax incentives because of the revenue that flows back to the city via sales taxes. But tax incentives have become a controversial, political topic – a topic many elected officials are eager to avoid. If there’s another way to capture funding, that is preferable to most.
There are definite commonalities. Almost all sports and entertainment districts have mixed-use development. They also have some sort of large public facilities such as a convention center, a performing arts venue or multipurpose arenas. All of these are natural anchors that attract restaurants, retail, and other revenue-generating facilities. Many sports and entertainment districts attract hotels… and they all attract visitors.
Cities benefit from tourism, convention business, industry relocation efforts and economic stimulus related to job creation. Because of all this, these specialized districts are creating a robust marketplace – one that is definitely worthy of watching.
Opportunities are diverse. Development of sports and entertainment districts requires contractors and vendors of all types. Each will require construction, engineering, technology, professional services, landscaping, security, furniture and equipment of every sort.
And, it is not just large cities that are launching the development of sports and entertainment districts. The Village of Schaumburg in Illinois recently finalized a master plan that includes a proposed 20-acre entertainment district. Officials want the existing Schaumburg Convention Center and Hotel to anchor the development but soon solicitation documents will be released for all other aspects of the project. There are plans for a multistory parking deck and a performing arts center and other public facilities that will attract restaurants, hotels and entertainment venues.
Later this year, Oklahoma City residents will be asked to vote on funding for certain capital improvements. One of the proposed projects is a cultural, entertainment and sports district. Organizers want the district to be anchored by a city-owned multipurpose outdoor entertainment venue to be used for events such as professional soccer games, concerts, and exhibitions. It will be quite large and will allow the city to compete for major events. There are also plans for up to 10 soccer fields and other entertainment venues. Because the proposed district falls within an area designated as an Opportunity Zone, city officials anticipate high interest from private-sector investors.
In Kentucky, the agency that operates the Lexington-Fayette Urban County-owned Rupp Arena plans to convert a 20-acre parking area into an entertainment district. Officials hope to get city and state approval for a tax increment financing (TIF) district that will attract developers. Tax increment financing simply means that the public infrastructure created through such a project will be paid for by new taxes generated through the district. Plans include the construction of a parking garage and a hotel with the expectation that restaurants and retail will follow. This initiative could definitely become a public-private partnership.
Officials of a proposed entertainment district near the Little River Canyon Preserve in Alabama believe it will lead to more new developments including a hotel. The area already attracts more than 500,000 people each year but an entertainment district would increase tourism significantly.
Existing arts and entertainment districts, like the one located in Albuquerque, New Mexico, continue to be revitalized and expanded. New theaters, bars, restaurants, and shops have opened recently on the Central Avenue Strip that has just been upgraded.
In 2020, what is being dubbed the most expensive sports stadium ever built will open in Inglewood, California. It will be located only four miles from the Los Angeles International Airport and is expected to attract tourists from all over the world. The project is being developed through a public-private partnership and major partners include the Los Angeles Rams and Los Angeles Chargers. A 70,000-plus seat arena will be able to accommodate mega events and there will be a hotel, restaurants, conference space, huge parks, a performing arts venue and more.
This particular sports and entertainment district will set the standard, even on a much smaller scale, for what will be the aspiration of most large U.S. cities. Not all city leaders will be able to make it happen— but many will.
Companies interested in contributing to any part of these types of upcoming opportunities should be working now to meet the visionary municipal leaders who will lead these efforts.
(Featured image by Anton_Ivanov via Shutterstock)
DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation for writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.
How to advocate for the work life you want after COVID-19
The work from home policies caused by the COVID-19 pandemic have shown some companies that they can fully function without...
Crowdfunding seen as an innovative post-crisis financing mechanism in Tunisia
Countries around the world are struggling to find new ways to revive their economies deeply affected by the COVID-19 health...
Why the Fintech sector in Italy has to be further developed
The annual update of the continuous monitoring of the FinTech innovation ecosystem in Italy, the result of the three-year collaboration...
Beyond gaming: how real-life applications put virtual reality and Zadar Ventures Ltd. into the spotlight
Virtual reality has helped us find a way to get around the challenges of doing almost everything remotely. Zadar Ventures...
The Monero software update is ready to be used by miners
The Monero protocol update, also called Nitrogen Nebula, was announced on the Monero blog on May 23rd. The integration of...
Featured6 days ago
The Italian cryptocurrency exchange Young opens its second financing round
Business7 days ago
How to evolve your business model as times change
Business2 days ago
Why Inca One’s online bullion store is a game changer for resource investors
Featured5 days ago
The turmoil in the stock markets continues