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Highest and Best Use Study Presentation for the. Tennessee State Fairground. November 19, 2008. Background. Background. Study was conducted in response to request for long-term lease of the racetrack Study was originally focused on future use of the Fairgrounds, as a Fairgrounds – not moving
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Highest and Best Use Study Presentation for the Tennessee State Fairground November 19, 2008
Background • Study was conducted in response to request for long-term lease of the racetrack • Study was originally focused on future use of the Fairgrounds, as a Fairgrounds – not moving • Board members posed two questions that refocused the study
The Questions • What is the future potential for the annual Tennessee State Fair? • How does the future of the Fair impact site and facility needs?
Components of the Study • Assessment of Long-Term Viability of the Fair and Identification of Potential Future Uses of the Fairgrounds • Recommendations of Future Fair and Fairground Use
Mission To be a major venue for agricultural, exhibition, entertainment, cultural, and educational uses to enhance the economic and social benefits to the residents and visitors to the middle Tennessee region. Of primary importance is the staging of the annual Tennessee State Fair that showcases agriculture, commerce, technology, and industry of the region and provides quality educational and entertainment opportunities for its patrons.
Realities of the TN State Fair • Tennessee State Fair – a county/regional fair • Declines in paid and total attendance • Perceived “static” programming • Perceived safety issues • Decline in 4-H participation
Viability of the TN State Fair • Tennessee State Fair’s future is very viable – potential to become a true State Fair • Requires changes to operating model, programming, facilities and, perhaps, site location • Potential for strengthened and new partnerships with key organizations
Interviews, Input and Comments • Public meetings in January, May, August • Neighborhood district visioning session • Comments submitted at websites • Interviews of current users, stakeholders, interested parties and public officials
Current Physical Conditions • Access/Road System, Public Transportation • Site Size and Layout • Surrounding Land Uses • Zoning and Deed Restrictions • Topography and Special Conditions
Site Size and Layout • Approximately 117 acres • 35 acres in floodplain and embankments • About 23 acres for main facilities • About 14 acres related to grandstand, racetrack and pit areas
Economic & Demographic Factors • Population trends of the Nashville/Davidson County area • Socio-Demographics of area within 15 miles of the Fairgrounds
Market Penetration • In 2007, attendance represented 12.6% of County resident population • True state fair should be able to garner 25% to 35% market penetration • Range of potential attendance – 350,000 to 500,000
Events and Activities Three Principal Business Units • Annual Tennessee State Fair • Monthly Flea Market • Non-Fair Rentals and Leases
Competitive Factors Exhibition Space Competition • Nashville Convention Center • Gaylord Opryland Convention Center • Local area hotels
Competitive Factors Spectator Event Facility Competition • Municipal Auditorium • Sommet Center • Curb Event Center • Allen Arena
Racetrack Lease • Current lease provides base rent of $50,000 per year for all facilities plus percentage of concessions revenues • Base rent – less than $140 per day for the facilities included in the agreement • Ten years ago the lease payment exceeded $250,000 per year
Racetrack Lease • Though car counts are up in recent years, attendance has been unremarkable
Racetrack Lease • NASCAR’s televising of major races has negatively impacted weekly racing series attendance nationwide • Continued competition from Nashville Superspeedway and Music City Raceway
Fairground/Event Facility Trends Review of State and Regional Fairgrounds • 100% have livestock and exhibit facilities • 92% have horse show facilities • 72% have an arena • 69% have RV facilities (average of 250 to 300) • 53% have a grandstand • 14% have amphitheater
Fairground/Event Facility Trends • Multi-purpose event facilities • Addition of sports and recreation venues • Partnerships with carnival operators for permanent rides and entertainment areas • Lease of out lots for retail, commercial and hotel developments
RFI Approach • In June, issued RFI to public organizations and private companies • More than 100 – real estate developers, sports and entertainment, racing, economic development • Purpose of the RFI: Solicit interest and ideas for the possible redevelopment of the Fairgrounds
RFI Response • Nine Responses • Two Did Not Meet Development Criteria • Five Were Similar in Redevelopment Concepts and Impacts • Two Were Unique in Concept and Impact
RFI Responses • Presentation to Fair Board on August 5 • Public Presentation on Aug 20 by • Southern Land Company • TEAM 821 • Tennessee Motor Sports Conservancy • Wedgewood Partners
Southern Land Company Mixed-Use, Town Center Concept • For Sale/Rental Housing (1,000 – 1,100 Units) • Entertainment District (Amphitheater) • Retail/Commercial (350K – 500K sq. ft.) • Park Area (43 acres)
Single-Family Cottage District Residential Overlook District Mixed Use Entertainment / Venue District IMAGE Green District Legion Park
Legion Park IMAGE
Team 821 Film and Entertainment Development • Film and Television Production Studio • Higher Education Film School • Mixed-Use Office and Housing • Arts and Entertainment Venue
TN Motor Sports Conservancy Sports and Entertainment District • NASCAR Speed Park • Water Park Hotel • Baseball Stadium • Hall of Fame • Entertainment District (800K sq. ft.) • RV Park • Educare • Amphitheater • Music City Motorplex