Subject:
Title
Approval to Extend the existing TDC/MIRA Amphitheater Grant from April 6, 2024, to April 6, 2025 and Approval of a $1.23 Million TDC Grant to construct a restrooms/concessions structure adequate to serve existing and future large events.
End
Fiscal Impact:
With this request, the total project construction cost would be approximately $7.8 million for a much- improved project despite the inflationary challenges. The State of Florida Appropriation Grant would contribute $1.0 Million (13%) of the construction cost, MIRA would contribute roughly $4.4 million (57%), and the TDC grants would contribute 31% of the project's total construction cost.
Dept/Office:
District 2 Commission Office
Requested Action:
Recommendation
The Merritt Island Redevelopment Agency requests that the Brevard County Board of County Commissioners approve two items recommended by the Tourist Development Council at their February 28, 2024, Members Meeting.
The two requests are as follows:
1) Extend the existing TDC/MIRA Amphitheater Grant from April 6, 2024, to April 6, 2025.
2) Approval of a $1.23 Million TDC Grant to construct a restrooms/concessions structure adequate to serve existing and future large events.
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Summary Explanation and Background:
At the MIRA Board Meeting on July 25, 2024, the Board moved to complete the Amphitheatre project and associated infrastructure improvements. Previous conditions have been met: a county-approved parking study and the contractor, Ivey’s Construction, agreeing to hold project costs as negotiated with the County Amphitheatre Contractor Negotiations Committee. The project costs are to be held for 60 days.
The MIRA Board also agreed to advance the referenced request identified above, which had been approved by the Tourist Development Council, to the Brevard County Board of County Commissioners for final approval as soon as possible to complete the project.
Project Location: Veteran’s Memorial Park; 400 S. Sykes Creek Parkway, just south of and adjacent to Merritt Square Mall, Merritt Island, Florida.
Project Overview:
Construction of a state-of-the-art Amphitheatre and associated infrastructure and amenities within the 80- acre Veterans Memorial Park. The Amphitheatre is designed to become a destination for visitors, veterans, and the local community. This venue will add to our County’s appeal as a leading tourist destination and provide a dedicated space for our veterans and community members to attend various single- and multi- day community and veterans’ events. This project is shovel-ready.
Objectives and Benefits:
1. Attracting Tourism: The new amphitheater will elevate our area, which is already a top destination for visitors from across Florida and beyond. By hosting a diverse array of events, including concerts, festivals, and cultural performances, the venue aims to draw tourists, locals, and regional day trippers, thereby boosting local economic development and supporting regional businesses.
2. Serving Veterans: Designed to meet veterans' needs, the Amphitheatre will also serve as a central hub for veteran-focused events and celebrations. This facility will provide a high-quality venue for military commemorations, reunions, JROTC, Sea Scouts, Boy Scouts, and community gatherings, honoring our 70,000+ veterans and enhancing their sense of community (approximately 40 annual veterans oriented, and veterans sponsored events).
3. Community Engagement: The amphitheater will also function as a versatile space for local events, such as the Brevard Symphony Orchestra, Graduations, outdoor plays, special events, movies, concerts, and more, fostering community spirit and engagement. From community festivals to educational events, the venue will cater to a wide range of activities that strengthen regional connections and enrich local life.
Design and Features:
• Size and Capacity: The Amphitheatre design features a 2,100-square-foot open-air stage with a peak height of 28’3”, optimized for excellent acoustics and sightlines. The venue includes 3,900 square feet of interior space, encompassing a loading dock, a green room, restrooms, and two wings for performers and staff.
• Seating and Accessibility: The site plan includes a tiered lawn seating area with a capacity of 2,350 attendees, complemented by an adjacent overflow lawn area that can accommodate additional people, bringing the total capacity to 5,000 in this area of the Park. This setup ensures ample space for large gatherings and events.
• Park Improvements: In addition to the Amphitheatre, the project will enhance visitation to Veterans Memorial Park, Veterans Museum, and Veterans Services Center. Planned infrastructure improvements include a pump station, sanitary sewer connections, additional parking, upgraded electrical distribution to serve vendors, safety lighting, landscaping, and a paved driveway for improved accessibility.
Strategic Positioning:
Strategically located on Florida’s east coast, the Amphitheatre is poised to become one of the premier near coastal venues from south of St. Augustine to north of West Palm Beach. Its prime Space Coast tourist location and comprehensive amenities will set it apart as a leading destination for a wide range of events.
Conclusion:
The proposed Amphitheatre represents a significant investment in our community’s future, offering benefits that extend beyond its primary function as an event space. By enhancing tourism, providing a dedicated venue for veterans, and supporting local community activities, this project will contribute to our region's economic vitality and cultural richness for many years.
Tourism Development Impact
The Northern Brevard Economic Development Zone (NBEDZ) has analyzed the economic impact, leveraging its specialized expertise. This updated analysis is based on highly conservative base data (provided by MIRA and the Veterans Memorial Center), proposing the Amphitheatre will host 19 concerts annually, each attracting between 1,500 and 5,000 attendees, with ticket prices ranging from $40 to $80. Additionally, the venue is expected to accommodate 15 weddings and other ceremonies, each with an average attendance of 100 guests.
Based on these projections, the study forecasts 40,500 annual event attendees, generating 11,550 room nights and spending approximately $6.91 million annually on tickets, lodging, meals, and other related expenses. Over a ten-year period, this could result in an economic impact of $69 million. It is important to note that this estimate does not encompass all potential events (approximately 40 additional events) or total attendance figures.
NBEDZ utilized the U.S. Bureau of Economic Analysis Regional Input-Output Modeling System (RIMS II) multipliers to support their analysis. These multipliers, developed by the Bureau, measure the effects of local demand shocks on gross output, value-added, earnings, and employment. RIMS II multipliers provide a valuable tool for assessing the economic impact of various projects and were applied to updated selected base event attendance data provided by the Veterans Memorial Council and MIRA staff.
In MIRA’s August 2020 TDC application, our initial projections were based on anticipated attendance figures significantly higher than those used in the current NBEDZ analysis. We estimated an average attendance of 4,000 people for 26 significant events, potentially generating 70,468 room nights in the first year. These projections, although ambitious, were not supported by a professional, independent economic analysis- something not required at the time-but were instead based on consultations with subject matter experts and research on comparable facilities.
While the 2020 projections were achievable with effective management, aggressive marketing, and a successful ramp-up period, we have opted to adjust our forecasts to be more conservative. Several factors influenced this decision. During the task force committee’s design and permitting phases and following public feedback, we found that a more conservative approach was more appropriate. This included accommodating on-site parking requirements, focusing on veteran-centered and high-quality community events, and reducing the frequency of high-noise events, which could impact marketability and performer selection.
We aim to ensure a smoother start-up by focusing on a gradual increase in the number and scale of events. This conservative strategy will help the County manage growth more effectively, address unforeseen challenges, and remain in compliance with local requirements.
Economic Development Impact
The redevelopment of Veterans Memorial Park has positioned it as a contributing economic catalyst for the surrounding Mall Area, witnessing more than half a billion dollars in nearby redevelopment activity. This substantially improves and preserves the taxable base. The park's proximity to the Veterans Memorial Museum and Services Center (with annual attendance exceeding 100,000), the 120-bed Health First Hospital project under construction, the new 30-acre 112-unit River Fly-In Condos to the south, the upcoming 370-unit Woodfield Luxury Apartment Complex adjacent to the Park on the West, and Christian Commons former auto dealership redevelopment nearby on SR 520 further underscores the potential and ongoing interdependence of economic impact, with the Park, and Amphitheatre project.
Indian River Lagoon Impact
A septic system currently serves the park's open space area restroom, with one structure providing one man’s and one women's facility. The septic system is very close to the Indian River Lagoon (Banana River inlet). The system cannot service any significant events or future amphitheater events. With the expected increase in park usage, the MIRA Board felt that expanding the septic system would not be an acceptable means to meet capacity requirements and comply with county codes. Although portable toilets could be used for more significant events, they are less convenient and would detract from the venue’s appeal and functionality. In addition, with the construction of the restrooms and connections to the sanitary sewer, there is the potential to connect the existing restrooms on septic to this facility. Much of the increased project cost includes making sanitary connections from the new restrooms to the Brevard County Sewer.
Cost History and TDC Review
In 2020, the project's initial estimated cost was $2.3 million. However, as the scope evolved to include market-driven enhancements necessary to achieve attendance goals, construction costs increased significantly. By the time the scope adjustments were completed, the estimated cost had risen to approximately $4.8 million. This increase was addressed through a $1 million grant from the Florida Department of Commerce.
By mid-2023, escalating inflationary pressures on materials and competitive labor costs increased the total project cost with an Initial Guaranteed Maximum (GMP) of $8.1 million. The total price to complete everything through negotiations, sales tax reductions, and project scope value engineering deductions has been reduced to approximately $7.8 million. Despite this substantial expense rise, the Tourist Development Council (TDC) continued to support the project. Recognizing the increased costs, the TDC approved allocating capital facilities funds to improve the project and make it a reality. The project was commended for its aesthetic value and anticipated impact as a significant community asset for the county and local veterans.
Clerk to the Board Instructions: