CONFIDENTIAL DRAFT | FOR DISCUSSION PURPOSES ONLY

TOLEDO DOWNTOWN AMPHITHEATER

DECEMBER 18, 2023
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CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

STUDY METHODOLOGY

Local Market Methodology was designed to determine:

Conditions

• Viability of a new Amphitheater in downtown

Toledo
Live
Entertainment Competitive
Industry Overview
Facility Context
• Market-supportable building program
ESTIMATED recommendations
UTILIZATION &
BUILDING PROGRAM
RECOMMENDATIONS • Share of concert activity currently missing
from the marketplace

Situation
Comparable Venue
Benchmarking
• Impact of a new Amphitheater on existing
Analysis venues in Toledo

FINANCIAL PROJECTIONS

ECONOMIC & FISCAL

IMPACTS

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CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

KEY FINDINGS & NEXT STEPS

The live music industry has returned to pre-pandemic levels and is projected to continue to grow. As the live music industry has evolved,
there has been continued segmentation among touring acts across all performance tiers, and venues need to identify and fill a niche
within their market for shows of specific performance tiers to find success.

Through ProMedica’s Summer Concert Series, notable artists have frequented the the temporary outdoor venue at Promenade Park and
the Toledo market has historically supported 10 concerts with an average attendance of nearly 6,200 people each summer. It should be
noted that ProMedica secured acts at a market value rate while capping ticket prices as a community benefit at an average ticket cost of
$19.18.

It is not anticipated that any of the current venues will be highly competitive to a new Amphitheater, but the market area cannot support
two similarly sized new amphitheaters should another development take place.

The regional market (Detroit, Cleveland, Cincinnati) features several of the best-performing amphitheaters in the U.S. and will continue to
attract Tier 1 acts and be the first stops on longer tours regardless of a new Amphitheater in Toledo.

Promoters indicated that Toledo could reasonably support a smaller venue (no more than 8,000 capacity) with the ability to attract 10
to 15 Tier 2 to Tier 4 acts per season.

The average comparable venue considered cost $28.5 million to construct. Based on projected financial operations for a new Amphitheater in
Toledo, the facility itself would not have the net operating income to support debt service on similar project costs.
As a next step, CSL is working with our Project Development group to determine the minimum investment needed to enable the projected
event activity (i.e., minimum power requirements, stage size, production space, star dressing rooms, and costs associated with a modular
build).

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GUIDING FRAMEWORK

CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

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CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

LIVE MUSIC INDUSTRY TRENDS

A recovered and again growing live music industry has spurred the growth
of diverse venue types to accommodate the needs of various tiers of artists

Average Paid Attendance Average Paid Attendance

Per Show - 2019 Per Show - 2023 TOTAL U.S. MUSIC EVENT TICKET REVENUE
7,497 9,071

21% Average Paid Attendance Per Show Growth

Total Tickets Sold - 2019 Total Tickets Sold - 2023

16.9M 16.3M

4% Decline in Total Tickets Sold

Average Ticket Price - 2019 Average Ticket Price - 2023
$91.86 $120.11

31% Ticket Price Growth

Total U.S. Music Event Projected U.S. Music Event

Ticket Revenue - 2022 Ticket Revenue - 2027
$9.3B $18.1B

95% Projected Industry Growth to 2027

Sources: Pollstar Top 100 Tours, 2019-2023; Statista Event Ticket Revenue.

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CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

LIVE MUSIC INDUSTRY TRENDS

Specific venue types are better suited for specific tiers of artists to optimize
atmosphere and ticket pricing and have different operating dynamics

TIER 1 TIER 2A TIER 2B TIER 3 TIER 4

$800,000+ in gross ticket $200,000 - $500,000 in gross $100,000 - $200,000 in gross Less than $100,000 in gross
$500,000 - $800,000 in gross
sales revenue per show ticket sales revenue per show ticket sales revenue per show ticket sales revenue per show ticket sales revenue per show

15,484 8,227 5,041 2,893 1,627

Average Attendance Average Attendance Average Attendance Average Attendance Average Attendance

$129.69 $80.06 $66.29 $55.07 $39.95

Average Ticket Price Average Ticket Price Average Ticket Price Average Ticket Price Average Ticket Price

17 19 14 20 32
Average Shows Per Artist Average Shows Per Artist Average Shows Per Artist Average Shows Per Artist Average Shows Per Artist

49 (76) 24 (42) 55 (65) 45 (80+) 100’s (100’s)

Number of Tours 2021 (2018) Number of Tours 2021 (2018) Number of Tours 2021 (2018) Number of Tours 2021 (2018) Number of Tours 2021 (2018)

Example Artists: Example Artists: Example Artists: Example Artists: Example Artists:
Jennifer Lopez, Taylor Swift Pitbull, Kiss Glass Animals, Alejandro Sanz Franco Escamilla, Little Big Town Caamp, Tank and the Bangas

Target Venue Type: Target Venue Type: Target Venue Type: Target Venue Type: Target Venue Type:
Stadium, Amphitheater, Arena Arena, Amphitheater Amphitheater, Theater Amphitheater, Theater, Club Theater, Club

Source: Pollstar 2021.

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CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

HISTORICAL UTILIZATION CONSIDERATIONS

The ProMedica Summer Concert Series has a history of success that would provide a
strong baseline for utilization at a new venue, however it should be noted that ProMedica
secured acts at a market value rate while capping ticket prices as a community benefit

Average Average Ticket

Number of Average Ticket
Year Attendance per Revenue per # Shows
Average Economic Impact
Concerts Cost
Concert Concert 10
2017 4 1,367* $10.00 $11,730
Average Attendance N/A
2018 15 5,828* $9.74 $47,602 6,169 N/A
2019 11 6,508 $19.66 $87,498 $4.5M
Average Ticket Cost
2021 10 6,000 $30.60 $137,525 $19.18 $6.0M
2022 10 6,000 $25.91 $109,501 $5.0M
AVERAGE 10 6,169 $19.18 $78,771 $5.2M

Note: Excludes 2020 due to the COVID-19 pandemic; excludes 2023 during which ProMedica booked a
limited number of shows; number of tickets sold and revenue data was only recorded for one show in
2017 and for nine shows in 2018.
*Denotes number of tickets sold and comped.

Sample Acts: Gwen Stefani Chris Young Martina McBride Scotty McCreery
Tier 2A Tier 2B Tier 3 Tier 4

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CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

HISTORICAL UTILIZATION CONSIDERATIONS

The discontinued ProMedica Summer Concert Series represented nearly a quarter
of concert activity offered in the Toledo marketplace

CONCERT BREAKDOWN BY TIERS Percentage

(2022-23 AVERAGE) of Total
Concerts

1% 2% 10% 10% 1%
Promenade Park
TIER 2A TIER 2B TIER 3 TIER 4 N/A 24%
3% 6% 6% 5% 1% 3%
Huntington Center
TIER 1 TIER 2A TIER 2B TIER 3 TIER 4 N/A 24%
22%
Hensville Park
TIER 4 22%
2% 3% 10%
Stranahan Theater
TIER 2B TIER 3 TIER 4 15%
1% 3% 4%
Toledo Zoo Amphitheater
TIER 2A TIER 2B TIER 3 8%
1% 3% 4%
Centennial Terrace TIER 2B TIER 3 TIER 4 8%
Note: Only includes events reported by the live event publisher Pollstar; Promenade Park
numbers reflect 2021 and 2022; Total percentage does not round to 100 due to rounding.

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CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

LOCAL MARKET COMPETITIVE CONTEXT

It is not anticipated that any of the current venues will be highly competitive, but the
market area cannot support two similarly sized new amphitheaters
MODERATE
1 COMPETITION
Centennial Terrace 5
Capacity: 3,500 Huntington Center
Outdoor Capacity: 7,100
Core Tier: 3/4 1 Indoor
Core Tier: Tier 2A/2B/3

2 7
Stranahan Theater 6
Capacity: 2,424 5
Indoor
Core Tier: 4 6
4 Promenade Park
Capacity: 8,500
HIGH Outdoor
3 COMPETITION 2 Core Tier: Tier 3/4

(Proposed) Waterville Venue

Capacity: 9,375
Outdoor
Core Tier: Tier 2B/3 (estimated)

MODERATE
7
COMPETITION Hensville Park
4 Capacity: 1,740
Toledo Zoo Amphitheater 3 Outdoor
Capacity: 4,500 Core Tier: 4
Outdoor
Core Tier: Tier 2B/3

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CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

REGIONAL MARKET COMPETITIVE CONTEXT

The regional market features some of the best-performing 1
2 3
amphitheaters in the U.S. which will continue to secure Tier 1 acts
and Tier 2 to Tier 4 shows on the first leg of their tours

les
mi
DETROIT-AREA

59
#1 #57 #52 114 miles
Tickets Tickets
Tickets
Sold* Sold* Sold* 5
4
1. DTE Energy Music 2. Meadow Brook 3. Michigan Lottery
Theater Amphitheatre Amphitheater

Capacity: 15,000 Capacity: 7,700 Capacity: 7,200

les
CLEVELAND-AREA CINCINNATI-AREA

mi
202
#30 #99 #24
Tickets Tickets Tickets
Sold* Sold* Sold*

4. Blossom Music 5. Jacobs Pavilion at 6. Riverbend Music

Center Nautica Center

Capacity: 20,000 Capacity: 4,600 Capacity: 20,500

Note: Ticket Sales rankings are from the 2019 Top Amphitheater Pollstar Report. 6

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CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

POTENTIAL USER FEEDBACK

Given the existing inventory of competitive venues in the regional marketplace,
potential venue users advocate a smaller venue (no more than 8,000 capacity) with the
ability to attract 10 to 15 Tier 2 to Tier 4 acts

Organizations Interviewed:

• Promoters caution that a new Amphitheater, particularly one
with more than 8,000 seats, faces extremely steep
competition from regional amphitheaters in Detroit,
Cleveland, and Cincinnati.
• Tier 1 artists will likely continue to skip over Toledo as they do
not need to make as many stops and will gravitate to larger
markets, but Tier 2 to Tier 4 acts could conveniently stop in
Toledo during the second leg of their longer tours.
• Promoters indicated that the Toledo market has a history of
supporting live event attendance and ticket sales, with several
seasons of supporting the ProMedica Summer Concert Series.
• It should be noted that ProMedica capped ticket prices to
these shows as a community benefit which allowed for patrons
to afford to attend multiple shows each concert season.
• HB Concerts envisioned booking 20 national touring acts into a
potential Amphitheater on an annual basis. Other concert
promoters indicated that a potential Amphitheater would likely
be able to host between 10 and 15 national touring shows each
season.
• Promoters indicated the importance of programming the
Amphitheater with a wide variety of genres and performances
to appeal to and attract a diverse coalition of community
members.
• Discussions with stakeholders indicate that existing community
events (i.e., Pride Festival, etc.) would benefit from the
permanent infrastructure of a new Amphitheater.

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CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

COMPARABLE FACILITY REVIEW

Considered comparable venues include unique building program elements

Average Year Opened /

Constellation Brands-
Renovated Marvin Sands PAC
2015 Canandaigua, NY
Capacity: 15,000
Planned Grand Rapids
Average Capacity Amphitheater
Grand Rapids, MI
10,420 Capacity: 12,000
40% Fixed | 60% Lawn*

Average Boxes
39

Average Club Membership Seats Walmart AMP

Variable Rogers, AR Ascend Amphitheater
Capacity: 10,000 Nashville, TN
Capacity: 6,800

Average Construction Cost

$28.5M

Brandon Amphitheater
* Average excluding Brandon Amphitheater which features 100% fixed seats. Brandon, MS
Capacity: 8,300
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CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

COMPARABLE FACILITY REVIEW

Considered comparable venues have unique utilization characteristics

COMPARABLE VENUE TOURING

SHOW UTILIZIATION
Number of Events Annual Attendance
259,000
45 24 6,900
198,008 AVERAGE ANNUAL AVERAGE
40 200,000 SHOWS ATTENDANCE
121,985 34
35
89,000
30 100,000
30
167,000
25 AVERAGE ANNUAL ATTENDANCE
0
20 Tier 1
16 16
4%
15 -100,000
Tier 4
Tier 2A
10 22%
-200,000
17%
5

0 -300,000
Brandon Amphitheater CMAC Walmart AMP Ascend Amphitheater

Tier 3
Average
$55.96 $66.86 $50.01 $57.75 20%
Ticket Price
Tier 2B
Average 37%
Attendance
5,676 7,530 8,618 5,790

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RECOMMENDATIONS &
ESTIMATES

CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

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CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

ESTIMATED UTILIZATION

Industry Trends
+ Historical
Utilization + Competitive
Context + User Feedback + Comparable
Facility Review = ESTIMATED EVENTS &
ATTENDANCE

RENTAL INCOME
Number Estimated
Average Paid Total Paid Average Total Rental
Of Gross Ticket Rent Per Event
Attendance Attendance Ticket Price Income
Events Sales

Ticketed Events
Tier 2A Concerts 3 7,500 22,500 $90.00 $2,025,000 10% of Ticket Sales $203,000
Tier 2B Concerts 6 6,500 39,000 $65.00 $2,535,000 10% of Ticket Sales $254,000
Tier 3 Concerts 2 4,000 8,000 $50.00 $400,000 10% of Ticket Sales $40,000
Tier 4 Concerts 2 2,500 5,000 $35.00 $175,000 10% of Ticket Sales $18,000
Comedy Shows 1 3,000 3,000 $50.00 $150,000 10% of Ticket Sales $15,000
Other Performances 1 2,000 2,000 $35.00 $70,000 10% of Ticket Sales $7,000

Non-Ticketed Events
Community Events 10 -- -- -- -- -- --

TOTAL 25 5,300 79,500 $67.00 $5,355,000 -- $537,000

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CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

BUILDING PROGRAM RECOMMENDATIONS

SEATING CAPACITY PREMIUM SEATING OTHER AMENITIES

8,000 270
TOTAL CAPACITY TOTAL PREMIUM SEATS
2,000 PARKING SPACES WITHIN
WALKING DISTANCE
150 MEMBERSHIP SEATS
3,200 2+ STAR DRESSING ROOMS
FIXED SEATS 20 VIP BOXES
(40% of Total Capacity) (6 seats per box)

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CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

FINANCIAL PROJECTIONS

FINANCIAL PRO FORMA

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Operating Revenues
Rental Income, Net $536,000 $552,000 $568,000 $585,000 $603,000
Premium Seating $202,000 $211,000 $219,000 $228,000 $238,000
Concessions, Net $680,000 $700,000 $721,000 $743,000 $765,000
Merchandise, Net $57,000 $59,000 $61,000 $63,000 $64,000
Net Operating Income Before Capital
Advertising & Sponsorships, Net $255,000 $261,000 $266,000 $272,000 $278,000
Reserve, Rent, Management Fee & Debt
Ticket Rebates, Net $321,000 $331,000 $341,000 $351,000 $362,000
Year 1 - $311,000
Facility Fees $318,000 $328,000 $337,000 $347,000 $358,000
TOTAL REVENUE $2,369,000 $2,442,000 $2,513,000 $2,589,000 $2,668,000
Prudent financial planning would
establish a capital reserve estimated at Operating Expenses
approximately 0.5% of project costs Staffing $1,012,000 $1,042,000 $1,074,000 $1,106,000 $1,139,000
General & Administrative $240,000 $247,000 $255,000 $262,000 $270,000
Repairs & Maintenance $250,000 $258,000 $265,000 $273,000 $281,000
Utilities $500,000 $515,000 $530,000 $546,000 $563,000
Insurance $56,000 $58,000 $60,000 $62,000 $64,000
TOTAL EXPENSES $2,058,000 $2,120,000 $2,184,000 $2,249,000 $2,317,000

NET OPERATING INCOME $311,000 $322,000 $329,000 $340,000 $351,000

Capital Reserve (0.5 Percent) $175,000 $180,000 $186,000 $191,000 $197,000

EBITDA BEFORE RENT AND

$136,000 $142,000 $143,000 $149,000 $154,000
MANAGEMENT FEE

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CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

ECONOMIC IMPACTS

CUMULATIVE NET NEW ECONOMIC IMPACTS CUMULATIVE NET NEW FISCAL IMPACTS
CONSTRUCTION & 30-YEARS OF AMPHITHEATER OPERATIONS CONSTRUCTION & 30-YEARS OF AMPHITHEATER OPERATIONS

STATE OF OHIO

$77.3 M 95 $21.1 M $2.8 M

STATE OF OHIO
TOTAL OUTPUT FTE JOBS PERSONAL EARNINGS

LUCAS COUNTY

$96.0 M 100 $26.3 M $850,000

TOTAL OUTPUT FTE JOBS PERSONAL EARNINGS LUCAS COUNTY

CITY OF TOLEDO

$102.6 M 95 $28.3 M
TOTAL OUTPUT FTE JOBS PERSONAL EARNINGS $708,000
CITY OF TOLEDO

Note: Economic impacts are not additive across the City, County, or State. Changes in project costs
would impact the economic and fiscal impact during Amphitheater construction.

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NEXT STEPS

CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

 CONFIDENTIAL DRAFT | FOR DISCUSSION PURPOSES ONLY

CONNECTOLEDO - TOLEDO DOWNTOWN AMPHITHEATER

NEXT STEPS

Confirming costs associated with:

• Minimum stage size
• At least 2 star dressing rooms
• Production office space
Confirming costs associated with • On-site power requirements
minimum fan amenities including: • Sufficient loading docks
• Sufficient concessions points of • Audio, video, and lighting
sale equipment
• Sufficient restrooms
• VIP area for Box and
Membership Seat patrons

Securing estimated costs for a

modular build of:
• 2,000 to 3,200 Fixed Seats
• 20 VIP Boxes

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