Real Estate Analysis and Commentary in Hampton Roads

A New Arena In Virginia Beach: the possibilities
November 14th, 2012 8:25 AM

Reprinted is a web posting of some of the economic impact the new arena may have.  Sourced from http://www.bringitva.com/new-study-shows-statewide-economic-impact-of-502-million-from-proposed-arena/

 

NBA Team & New Arena Creates 3,712 Jobs in Virginia

VIRGINIA BEACH, Va. – A new economic impact report showcases the statewide economic impact from an arena and a potential NBA franchise in Virginia Beach would create more than $502 million a year in economic impact once the arena is operational in 2015.

The impact of an NBA franchise would be comparable with other major economic development projects in the state, according to the study. In 2008, Virginia attracted Rolls Royce to Prince George County resulting in an annual average economic impact of more than $200 million in Virginia’s Gateway region. The estimated economic impact of the arena and team is more than double the Rolls Royce project.

Other highlights from the study, prepared by Chmura Economics & Analytics, include:

  • Adding ripple economic impact to the direct impact, the annual total economic impact (direct, indirect, and induced) of the NBA franchise in Virginia is estimated to reach $502.6 million, which can support 3,712 jobs in the state.
  • From the 2015-16 season onward, the Virginia state government can receive $10.9 million tax revenues from team/arena operations and visitor spending, with $4.4 million in sales tax, $5.2 million in individual income tax, and $1.3 million in corporate income tax.

The study focuses on the potential impact of a professional NBA team and a new arena on the state economy. Outside the 44 NBA games (three pre-season, and 41 regular season games), the arena can potentially host more than 150 other events per year. The economic impact is based on a conservative estimate that 85% of the seats would be utilized for the NBA games at the proposed 18,500-seat arena.

An earlier study, prepared by James V. Koch, Board of Visitors Professor of Economics and President Emeritus, Old Dominion University, estimated the economic impact of a new arena as more than $98 million to Hampton Roads alone.

More details, including both studies, are available at www.BringItVA.com.


Posted in:General
Posted by Woody Fincham, SRA on November 14th, 2012 8:25 AMPost a Comment

Subscribe to this blog

Categories:

My Favorite Blogs:

Sites That Link to This Blog: