Lincoln's Haymarket Arena

According to an economic analysis completed in May 2009, the arena development will create 7,800 jobs during construction of the arena and the establishment of 1,200 permanent jobs from projected operations of the new facility.

The report also detailed $260 million in projected economic activity annually associated with the arena and other parts of the development. The arena's estimated economic impacts include several categories of spending:

Annual expenditures associated with operating and maintaining the arena;
Admissions revenue flowing to event promoters or sponsors;
Spending on lodging, food and beverage, and other miscellaneous items by arena spectators or participants; and
Gross revenue for the hotel, retail, and office uses within the development, excluding spectator/participant spending separately identified above.

Tax receipts will also be impacted positively, according to the analysis. The City of Lincoln can expect to see an increase of nearly $3 million in local sales and property tax receipts.

The report also detailed the cost of doing nothing – the "No Action Alternative." The "No Action Alternative" detailed in the report was estimated to cost Lincoln nearly $18 million per year. The report stated that "...the absence of a new arena does not guarantee that the status quo will remain. In fact, given the ages, conditions, features, and amenities of Lincoln's current sports and entertainment venues, there is clear evidence that:

some events have already left the area;
some residents of the metropolitan area are taking their entertainment dollars elsewhere (such as Omaha);
some larger events that might be interested in Lincoln are not coming because of a lack of adequate facilities.

Thus, a 'no action' alternative would likely result in a widening of that $18 million per year gap in economic activity between a new arena and the status quo."

The report details the impacts of the project that includes the construction of the Lincoln Haymarket Arena, the Breslow Ice Center, and retail, office and commercial development west of the current Haymarket. A full copy of the report can be viewed here.

The report was authored by Michael O'Sullivan Consulting Sports Venue Advisors. O'Sullivan Consulting provides economic advisory services and project management services to developers, owners, operators, and users of sports venues. As a Principal in the Real Estate Advisory Services Group of Arthur Andersen in Washington, DC and later as a Partner in Leib Advisors, LLC. Mr. O'Sullivan has worked on numberous sports and entertainment projects, as well as general real estate developments, ove rhte past 30 years providing market and financial advisory services, public/private partnership formation, capital financing strategies, negotiation of operating agreements, and project management.