Omni Albany Aquarium Phase 1 Feasibility

1 September 26, 2013

Presented by: Thomas J. Martin, President

&

Elena Kazlas, Principal

Prepared for: Omni Development Company, Inc.

Feasibility Study for Albany Attraction Phase I: Market Study


Who We Are • Founded in 1991

• Strategic economic planning and management consulting

• ConsultEcon is leading consultant to the visitor attractions’ industry worldwide

• Focus on aquariums, science museums, theater and other visitor attractions development, tourism, real estate

• Specializing in market analysis, attendance projections, earned revenue strategies, business planning, and implementation

• Successful track record of implemented projects

• Clients: not-for-profits, local, state/provincial, federal government, private sector, and multi-dimensional stakeholder groups

• We track industry trends and regularly survey institutions


Who We Are • We have conducted over 700 studies for

existing and proposed projects including:

– Lawrence Hall of Science: Berkeley, CA – Chicago Children's Museum: Chicago, IL – Exploratorium: San Francisco, CA – Miami Science Center: Miami, FL – Buffalo Zoo Master Plan: Buffalo, NY – Shedd Aquarium Expansion: Chicago, IL – Monterey Bay Aquarium Expansion Master

Plan: Monterey, CA – South Carolina Aquarium: Charleston, SC – Tennessee Aquarium: Chattanooga, TN

– Museum of Discovery and Science: Ft. Lauderdale, FL


There are 3 Phases of Work

I: Market Study

II: Operating Business Plan

III: Economic Impacts Evaluation


Presentation Outline • ConsultEcon’s Assignment

• Project Evaluation Criteria

• Potential Site Review

• Attractions Industry Review

• Regional Market Context

• Competitive Context and Regional Attractions Mix

• Future Area Trends

• Review of Selected Visitor Attractions

• Preliminary Recommended Project

• Preliminary Review of Development Potential


ConsultEcon’s Assignment

• Our assignment from Omni Development Company Inc. was to evaluate the feasibility of developing a public educational attraction in downtown Albany.

• Attraction type candidates were Aquarium, Children’s Museum, Science Museum, IMAX-type theater or some combination of these.

• The criteria for project selection includes…


Project Evaluation Criteria • Market Potential

– Attracts tourists as well as local residents – Is both entertaining and educational – Appeals to broad audience mix – Broadens Albany’s offerings beyond its current focus on cultural history/historic houses,

etc. – Has components for family/young learners – Has potential for repeat visitation

• Development Potential – Compact footprint/fits in site development context – Addresses market needs – Is market and economically feasible – Potential for public/private partnerships – Attractive to funders


Project Evaluation Criteria (continued)

• Downtown Revitalization Benefits – Anchor attraction to support adjacent area real estate development – Improves marketability of downtown Albany as a group meeting/conference

destination. – Shares parking and other infrastructure – Supports Albany hotels and restaurants – Improves downtown identity Basis for rebrand – Establishes Albany as a visitor destination

• Relationship to Growing Sciences’ Industry in the Region – Potential exhibits and/or educational programs linked to such growing local industries

such as nanotechnology – Creates opportunities for potential corporate funders and/or sponsors


Project Evaluation Criteria (continued)

• Public Benefits

– Local • STEM education • Job creation • Economic development • Quality of life

– Regional • Tourism development • Support Tech Valley and Nanotech initiatives • Leverages the investment, expertise and content of the tech sector including the

nanotech industry in the Capital Region • Economic impacts


Potential Site Review


Attractions Industry Review • We reviewed the attendance patterns of family oriented educational

attractions in comparable metro areas with a comparison to the Metro Albany Area.

• Four types of family oriented educational attractions were included in the analysis: aquariums, zoos, science centers and children’s museums.

• We prepared a broad based analysis of 40 Metropolitan Statistical Areas (MSA or Metro Area) with populations from 0.66 million to 1.55 million.

• The experience of these areas was compared to the Albany Metro Area, the Albany-Schenectady-Troy, NY MSA, which is the 22nd largest in this group (with population of 870,716).

• 33 of the 39 metro areas had a zoo, an aquarium or both. Those metro areas that do not have a zoo or aquarium are typically close by to one or more metro areas that have zoos and/or aquariums.


Attractions Industry Review • The aquariums and zoos have

by far the highest annual average attendance patterns, and science centers and children’s museums have substantially lower annual average attendance patterns.

• In the Albany-Schenectady-Troy Metro Area, there is latent demand for attendance to family oriented educational attractions; the market is under-served with such facilities, and there is a significant market opportunity for such facilities.

Summary of 39 other MSAs

Average Population in the

MSAs with the Attraction

Average Attendance of Attractions by

category

Zoo 983,204 583,540

Aquarium 908,532 530,060

Science Center 979,582 262,347

Children's Museum 922,349 175,085

Averages 958,948 354,823

Albany-Schenectady-Troy, NY MSA

Population

Average Attendance of Attractions by

Category

Zoo 870,716

Aquarium 870,716

Science Center 870,716 60,639

Children's Museum 870,716 40,000

Averages 870,716 53,759


Regional Market Context • Resident Market

– Metropolitan Area: Population of 878,700

– Media Market Area: Population of 1,401,100

– Stable Market population and relatively high income levels.

Source: ESRI and ConsultEcon, Inc.


Regional Market Context • Visitor / Tourist Market

– The Capital Saratoga region had an estimated 4.57 million overnight visitors in 2011.

– Approximately 94 percent or an estimated 4.30 million overnight visitors are from outside of the Albany Metropolitan Statistical Area.

– Regional visitor demographics and household characteristics reflect on average a visitor that is older than the average state visitor, with higher educational attainment.


Competitive Context and Regional Attractions Mix

• There are a number of educational attractions in the City of Albany and Albany County.

• Some have free admission, such as the New York State Museum, which also has the highest attendance at over 500,000 annually.

• In the surrounding counties there are:

– Two Children’s Museums

– Two Science Museums

– Two Seasonal Zoos


Future Area Trends • Albany (and surrounding region) is in the midst of a period of growth lead

by investment in high tech.

• The Tech Valley movement has given the region credibility as a substantial place to do business, AND live.

• Growth in residential and commercial real estate supply and steady absorption is leading to a demand in services and amenities that currently do not exist in downtown Albany.

• There is slow growth in tourism and other associated infrastructure development.

• The tech industry is natural partner in developing education (STEM) and cultural attraction infrastructure.


Review of Selected Visitor Attractions We looked at a number projects including:

• Greensboro Science Center, Greensboro NC

– New Aquarium addition is excellent example of a blend of an aquarium with science-heavy interactive exhibits, such as the “SciPods”, which create such interactions as identifying the individual history of a penguin on display by identifying the color of the tag on the penguin’s wing to the color on an iPad adjacent to the exhibit.

– Changing exhibit galleries are critical to keeping an attraction new and in creating repeat visit opportunities, as well as impacting attendance potential.

– Public Private Partnership’s (PPP) can be important to an attraction’s success.

– New Aquarium addition has significantly impacted the attendance and revenue potential for the GSC.

– Aquarium’s offering an ever changing, interactive, exotic, fun and non-threatening way to present and teach science.


Review of Selected Visitor Attractions We looked at a number projects including: • Life Science Village and the International

Centre for Life (Life), Newcastle-Upon-Tyne, England

– In 2011, Life was the recipient of the Association of Science and Technology Centers Leading Edge Award for its innovative business model, and impact on the region. Some of the impacts that the project has created include:

– Reaching new audiences and audiences from groups not traditionally interested in science.

– Creating employment for 500+/- people on its site. – Diversifying the base of attractions/tourism in the region and

drawing visitors from throughout the UK, bringing economic benefits to the city.

– Serving as a stimulus for further economic regeneration on surrounding sites.

– Investing in the future economic strength of the region by developing scientific and technologically literate people for the future.

– Helping to create the image of the North East of England as a vibrant region to which it is attractive to relocate and invest in.

– Moving public engagement with science to the heart of the agenda of regional universities.


Preliminary Recommended Project • Based on our analysis and educational visitor attraction

industry experience we recommend an aquarium venue that incorporates science-center type content.


Preliminary Review of Development Potential

• Project would likely include: – Live salt- and fresh-water animal exhibits with interrelated science exhibits,

potentially akin to Greensboro SciQuarium “SciPods” – Permanent and interactive exhibits – Young children/toddler play area – Changing/temporary exhibit gallery – Flex theater and/or other space for classrooms, lectures, events, etc. – Learning lab/classroom – 4D simulator ride or comparable modest 20 to 30-seat theater, as entertaining

upcharge opportunity featuring marine and science related themes – Retail – Café/food service – Lobby/ticketing – Back of house – Administrative offices


Questions & Answers

Omni Albany Aquarium Phase 1 Feasibility

Documents

market study

visitor attractions

market analysis

omni development company

regional attractions

feasible potential

albany attraction phase

ca chicago childrens