If You Build It, Will They Come?
The consensus: sports venues bring recognition and traffic to mixed-use projects but sports venues alone will not ensure the success of a development.
“It is important to understand that sports can be a good catalyst for a mixed-use project, but it is only one component,” says Barry Rosenberg, president with Columbus, Ohio-based Steiner and Associates. “There are only 80 baseball games and 10 football games a year. There are 365 days in a year. The surrounding project must be able to stand on its own. The fundamentals have to be correct.”
According to Jim Baeck of Development Design Group, the current trend of developing mixed-use projects around sports venues is the result of stadium and arena owners recognizing the value of the land around their venues. “Parking is usually not the highest and best use of the valuable land,” he says.
“People realize there is an opportunity to leverage off of the entertainment provided by these venues and the number of people that come to the venues,” adds Matthew Frank, managing director of Lighthouse Development Group. “And these projects serve as an economic catalyst for the surrounding communities.”
Blake Cordish, vice president with Baltimore-based The Cordish Company compares the trend to the development in Las Vegas: “For decades, the conventional wisdom in the gaming business was that it was a mistake to distract people from gambling. Approximately 15 years ago, there was a significant paradigm shift. Developers realized that complementary non-gaming restaurants, retail and entertainment would actually make gaming more profitable. People stayed longer to enjoy the restaurants, bars and clubs — and they ended up gambling more. Recently, many sports venue owners have reached comparable conclusions. Namely, they want to provide a broader, more engaging experience for their patrons and ultimately enhance the value of their core sports assets.”
He continues, “One mission of our company is to create places that are significant — that evoke emotion and provide memorable experiences. Organically, there tends to be an incredible amount of development around sports venues. For example, the success of the Inner Harbor of Baltimore is significantly due to Camden Yards and M&T Bank Stadium. The MCI Center in D.C. spurred the revitalization of multiple blocks around it, Coors Field in downtown Denver did the same, and the list goes on. The catalytic power of a major sports venue is amazing. Our developments allow us to maximize the benefits of sports anchors because we have the advantage of planning from a multi-block master development perspective.”
Urban Mixed use The Cordish Company has several large mixed-use projects that play off the success of professional sports venues. In Kansas City, the company recently opened the Kansas City Power & Light District. The $850 million, nine-block project is anchored by the Sprint Center, a new 18,500-seat arena that hosts basketball, hockey, concerts, family shows and special events. AEG developed the Sprint Center in conjunction with the city.
At completion, the Kansas City Power & Light District will include 550,000 square feet entertainment and retail, 1.2 million square feet of office, three residential towers totaling 1,000 units, two hotels totaling 500 rooms, an expanded convention center, the College Basketball Hall of Fame and Experience, and the $326 million Kaufman Performing Arts Venue.
Cordish is also partnering with the International Speedway Corporation (ISC), to develop Daytona Live! The $250 million, 71-acre project, which is located across from the Daytona International Speedway, will have more than 300,000 square feet of retail, dining and entertainment space, a 450-unit residential component and a 300-room hotel. The project will also feature 225,000 square feet of office space to house the headquarters of ISC, NASCAR, Grand Am and their related businesses.
In St. Louis, Cordish is partnering with the St. Louis Cardinals to develop a seven-block area adjacent to the new 45,000-seat Busch Stadium. The $650 million Ballpark Village will feature approximately 450,000 square feet of retail and entertainment space, 1,200 residential units, 1 million square feet of office, two hotels and 3,000 parking spaces.
In Philadelphia, Cordish recently announced a partnership with sports and entertainment firm Comcast-Spectacor to develop Philly Live! adjacent to the Wachovia Center, a 20,000-seat arena that is home to the National Hockey League’s Philadelphia Flyers and the National Basketball Association’s Philadelphia 76ers. Philly Live! will also link to Lincoln Financial Field, home of the National Football League’s Philadelphia Eagles, as well as Citizens Bank Park, home of Major League Baseball’s Philadelphia Phillies.
The 150 acre Woodbine Live! project, a Cordish Company development. In Toronto, Canada, the company is also developing a mixed-use project around a horse track — the most active horse track in North America, with 290 days of racing each year. The $1 billion, 150acre Woodbine Live! project will include 2 million square feet of retail and entertainment, 1.5 million square feet of office space and 2,500 residential units.
“Sports-anchored developments require unique solutions. There is no formula,” Cordish notes. Most of these projects require public/private agreements with cities or states as well as the involvement of team owners. The large scale of the developments — most of which are located in downtowns — adds to the complexity.
Each year, Cordish will offer 150 to 180 free events in the plazas at each project. A division of the company produces and promotes these events. Large events, such as a major concert, are held when the sports venue is not in use. This helps to ensure foot traffic at the project. Smaller events are scheduled in conjunction with events at the larger venues to increase the energy and ambiance, creating a better experience for people already planning to attend an event. “To be successful in the long term, we feel it is important to be operators of entertainment businesses,” Cordish says. Ten years ago, The Cordish Company started a division that now operates a variety of restaurant and entertainment concepts. Now, the company will operate as many as 18 concepts at its developments. Some are brand extensions, like NASCAR Sports Grille, which will be at Daytona Live!; Maker’s Mark Bourbon House & Lounge, which recently opened at The Kansas City Power & Light District; and PBR’s Big Sky, a country western-themed bar and live music concept created with Professional Bull Riders Inc. Cordish partners with well-known brands through license agreements and then develops entertainment and dining concepts that create an experience around the brand.
In addition to the brand extension concepts, The Cordish Company has dozens of one-ofa-kind concepts. Cordish explains, “We look at the merchandising of a project and we use our operating division to help round out the tenant mix. If we wish we had X, we create it to fulfill the vision.” For example, Ballpark Village will feature Cardinals Nation, a high-end, interactive sports bar that looks into the stadium.
Ambiance & Advertising Developers that are creating mixed-use projects have found signage adds to the atmosphere in their projects, and it is proving very profitable. The Cordish Company is also using technology to create interactive environments. The use of media screens depends on the development, says Blake Cordish. In The Kansas City Power & Light District, the company intentionally limited media use to one large screen over the outdoor stage. Up to 8,000 people watch events here. In addition, the company televises major events that take place at the Sprint Center.
At Daytona Live!, there will be an enormous oval-shaped LED screen that encircles the 25,000-square-foot main plaza. If you are standing in the plaza during a NASCAR event televised on the screen, it will look like the cars are going around you. “This is all about creating a unique experience,” says Cordish. He notes that NASCAR events take place more than 30 weeks out of the year, and events from all over the nation can be televised on this screen. “Whether the sporting event is away or home, LED screens help to ensure that our projects are the place to be.”