AgdaPkt 2000-11-27 - Laserfiche WebLink

Browse Search

\t--S State of the Entertainment Industry Attached is a memorandum from Tim Kelly of Keyser Marston Associates discussing the trends in the entertainment industry. Tim concludes that: þõ> The mid-peninsula area is under-screened. This will be the only state-of-the-art commercial theater between Highway 92 and Mountain View. Additional screens can be built without exceeding demand. In the attached memo, the data on ticket sales per screen indicates that Century Park 12 is currently generating $875,000 per screen compared to Century's national average per screen of $350,000. þõ> 20 screens will replace 12 existing screens at Century Park 12. Only 8 new screens are added and only 700 net new seats. þõ> Century is a financially strong business. It has not followed the "expand at any cost" model that has created difficulties for many cinema operators. Representatives of Century Cinema's will be available to answer any questions which the Council or community may have on this issue (Based on articles we have sent to you previously, it is apparent that Century and National Amusements are two of the strongest performers in the industry). Economic and Fiscal Analysis The Economic analysis addresses the question, "what benefits result from the project?" In summary, the economic analysis concludes: 1. Downtown entertainment centers have had positive impacts in other cities where they have been recently developed. Positive impacts include increases in surrounding business volumes, signifying a strengthening of the local market. 2. Restaurants and specialty retailers in particular, benefit. 3. Movie patrons are projected to spend between $9,000,000 to $10,000,000 per year in other stores and restaurants, in addition to ticket sales and snacks. 4. Workers in the office building are projected to spend $1,100,000 per year in the downtown area. 5. The project will help revitalize downtown retailing. Altogether, downtown retail spending could increase by between $20,000,000 to $40,000,000 per year outside the project, and could support between 110,000 and 175,000 square feet of new downtown retail space outside the project. 6. The project will provide an estimated 655-685 jobs on-site and will also generate additional jobs elsewhere in the downtown. The Fiscal Report (a full copy of this report will be available on December 4,2000) addresses the long-term operational costs and revenues to the City of Redwood City. In summary, for the project as currently proposed, it concludes: . General Fund: A net increase in revenue amounting to $397,400 per year. . Parking Fund: A net increase in revenue amounting to about $21,000 per year. . Redevelopment Fund: An increase in tax increment revenue of $156,000 in 2003-04 in addition to $183,000 in revenue dedicated to housing projects. These 3 'r'" ""'-'-"y'