City of Corbin, Kentucky Official Website - Market Analysis for Potential Events

ERA examined the market for potential events in order to determine how the exposition center might be utilized on a year round basis. To do this, ERA examined historical utilization patterns for local events at area facilities like the Corbin Civic Center and local high schools, colleges, and churches. We also examined characteristics of comparable facilities including utilization and market characteristics. In addition, we surveyed various event promoters and organizers. Our findings regarding local utilization, comparable facilities, potential users, and market demand are presented below.

Market Overview
Corbin is located in Whitley County in southeastern Kentucky, part of the Tri-County region, which also includes Laurel and Knox Counties. There are approximately 7,700 residents in the incorporated city and 37,600 in the surrounding county. Over 500,000 people live within a 50-mile radius of Corbin and over 1,700,000 live within 75 miles. The primary market (50-mile radius) is young with an average age of 37 and a lower median income than the larger region (50 to 100 miles).

The Corbin market is influenced by the strong north/south draw along I-75 between Lexington & Knoxville and serves as a regional center east and west of its core. While the local resident market is relatively small, the primary market is sizeable, and the secondary market is large. Although the City of Corbin is considerably smaller than the communities of competitive and comparable facilities surveyed, the market area compares more favorably further out from the core.

Local Facility Utilization
To determine what events currently exist in the Tri-County region, as well as to identify potential events if the right facility existed, ERA spoke with local officials, business owners, and community leaders. Information was initially gathered during a two-day visit to Corbin, in which 45 local citizens and civic leaders participated in a discussion about the facility’s potential uses. These meetings were supplemented with interviews with additional key stakeholders.
In general, there are few adequate facilities to accommodate major events and activities in the region. Most spectator events, like youth sports, concerts, theatre, and social functions, are held in area high school gyms and auditoriums, which have limited capacity. As the population and enrollment in schools continue to increase, events have begun to outgrow local facilities forcing the community to leave the region. Area citizens often drive to Lexington or Knoxville on the weekends for youth sports, family entertainment, and consumer shows. In addition, local companies are forced to hold trainings and social events in the larger cities.

Corbin has the power to draw visitors to the region as evidenced in the attendance of local events. The NIBROC Festival, a four-day event held in August, attracts approximately 50,000 to 60,000 people. By far the largest event in Corbin, NIBROC has hosted major performers like Kansas, Percy Sledge, and the Crabb Family. The festival attracts visitors from all over the region, selling out the area hotels for the duration of the event. Other major events include the Corbin High School Christmas Basketball Tournament and the Rally in the Valley Motorcycle Show, both attracting approximately 2,500 to 2,700 people over three days.

Corbin lacks a large, indoor, multi-purpose space. While local facilities are heavily utilized, their size limits the number and type of events that can be held in the area. Below are ERA’s key findings regarding facility utilization in the Corbin area.

Area high schools, like Corbin and North and South Laurel, hold numerous community events in addition to school related events. Not only does this strain on scheduling preclude events from expanding year after year, but it limits the use of school facilities for the students. In addition, the school facilities are inadequate to accommodate large spectator events such as graduation and sports tournaments, which have limited tickets and are most often standing room only. The area high school gymnasiums average between 2,500 to 3,500 seats, with smaller auditorium facilities.

Corbin Civic Center holds over 20 events per year, mostly small trade shows and local meetings. It is situated on 30 acres, removed from the main road and center of the city. The indoor facility can seat approximately 700 people banquet-style and has a small kitchen and storage area. While the venue has attracted rodeos, circuses, and other family entertainment, these events are generally held outdoors. The indoor facility is mostly utilized by small trade shows and for local community meetings and banquets.

The University of the Cumberlands Rollins Center, located in Williamsburg, KY, hosts school sports, small concerts, and church events. The facility has 1,650 fixed seats with a capacity for 2,500. The Director of Student Services expressed an interest in the new exposition center for school fundraisers, sports tournaments, and larger concerts. In addition, the Director of Activities for the facility indicated that they must turn away at least five to ten concerts a year because of inadequate facility size. They were unable to host the Mid-South Conference basketball championships this past year for the same reason.

Church communities comprise a large part of the region’s events and activities. Local churches often hold fundraisers, meetings, holiday bazaars, and concerts. However, these facilities are also hindered in drawing the larger concerts, convocations, and conventions because of limited seating capacities. Several members of different congregations in the area expressed the desire for a neutral facility to attract national speakers and touring musical groups to the southeastern Kentucky region.

Sports are a major activity in the southeastern Kentucky region. Numerous community members stressed the importance of an indoor facility to host high school sports tournaments, state AAU championships, and youth sports. Currently, Corbin citizens are driving to facilities in Lexington, Knoxville, Florence, and other cities to participate in these activities. In addition, events like the Corbin High School Christmas basketball tournament have outgrown the high school gyms and must turn away potential participants. While hosting youth sports practices in the new facility would limit scheduling capacity, hosting tournaments and playoffs could be a major event driver.

Competitive Regional Facilities
Currently there are relatively no competitive facilities within 50 miles of Corbin. While numerous area facilities like the Corbin Civic Center, Laurel Fairgrounds, Daniel Boone Motocross Park, and London/Laurel Optimist Club Sports Center will continue to support specific events, no facility in the area can accommodate large regional attractions. Knoxville and Lexington will continue to be the primary locations for major shows because of the cities’ larger, more accessible facilities and greater market areas. However, there is a market for smaller shows and performances as well as the opportunity to attract traveling acts passing through the larger markets.

The primary competition for new events, primarily the larger entertainment and spectator events, will be the Eastern Kentucky Exposition Center, located in Pikeville, Kentucky about 130 miles northeast of Corbin. The $29 million facility, open as of fall 2005, has approximately 5,300 fixed seats with the capability to seat 7,000. The arena is approximately 24,000 square feet with an additional 5,000 square feet of ballroom space. The center is located adjacent to the city park with a new parking garage next door.

Despite the facility’s smaller market population and remote location, they have initially been able to attract the major shows and events that the Corbin community has expressed interest in. Shows on the schedule include Larry the Cable Guy, the Broncs and Bulls World Challenge Rodeo, Rock-N-Monster Truck Fest, Three Doors Down Concert, The Gaither Vocal Band, Jeff Foxworthy, Ringling Brothers Circus, Kenny Rogers with Billy Dean & Rebecca Lynn Howard, and the Harlem Globetrotters.

While the Eastern Kentucky Exposition Center’s location is inferior to Corbin because of lack of immediate access to a major highway, it will be an immediate competitor for events because of its proximity and similar market size. Its success in attracting and hosting major events will likely affect the programming in Corbin, which thus far has been positive. The Pikeville facility may help change the perception that secondary and tertiary markets cannot support major events.

Comparable Civic Center Facilities
Several facilities in the southeast were considered as models for the development of a Corbin facility based on their size and location. Facilities surveyed for this analysis include the Eastern Kentucky Exposition Center, Great Smoky Mountain Exposition Center, Carl Perkins Civic Center, Salem Civic Center, Freedom Hall Civic Center, Wheeling Civic Center, Shelby Farms Show Place Arena, DeSoto Civic Center, and the Greenwood Civic Center.
Below are ERA’s key findings regarding comparable civic center facilities.

Seating capacity at these facilities range from 3,500 to 10,000, with the average size around 5,200 fixed seats.

Comparable facilities offer between one and 16 meeting rooms that are well-utilized, accommodating between 20 to 2,200 people. Those without extra meeting rooms stressed their importance.

Exhibit space ranges from 16,000 to 49,000 square feet, averaging just about 29,000 with arena sizes varying from 130’ x 102’ SF at Freedom Hall to 300’ x 150’ SF at Smoky Mountain Expo Center.

On average, parking ratios were 1 spot per 2.75 seats.

Most facilities defined their markets within a 50-mile radius, while more rural locations extended slightly further. 55% of these facilities are located within 50 miles of a major city while 90% are within 75 miles.

The majority of events (43%) are local meetings or social functions followed by sporting/equestrian events (24%). Both family/spectator events and trade shows/convention (16% each) comprise the rest.

Event days range from between 62 to 199 days (excluding DeSoto because of youth sports) with an average number of event days of 139.

The following tables outline the basic characteristics of the selected facilities in matrix form. The subsequent paragraphs describe the centers with the most comparable markets in greater detail. Event schedules for selected facilities can be found in Appendix 1.

Table 1: Physical Characteristics of Comparable Civic Center Facilities

PHYSICAL CHARACTERISTICS OF COMPARABLE CIVIC CENTER FACILITIES
Name of Facility	Arena/Theater Seating Capacity		Meeting Rooms	Exhibition Space (sf)	Arena Size (sf)	Banquet Capacity	On-Site Parking
Name of Facility	Permanent	Portable	Number		Arena Size (sf)	Banquet Capacity	On-Site Parking

Great Smoky Mountains Expo Center, Morristown, TN	3,875	3,000	80	41,000	300' x 150'	3,000	2,000
Jackson Centre	9,092	1,204	20-200	47,000	2,700	2,850
Oman Arena	4,892	704	0	0	0	0	700
Carl Perkins Civic Center	2,200	1630-2200	200	22000	190' X 125'	1400	350
Fairgrounds Park Jackson, TN	2000	500	4-200	25000	1300	1800
Salem Civic Center Salem, VA	4027	3373	25-600	26040	200' X 125'	2000	2800
Freedom Hall Civic CenterJohnson City, TN	5619	948	0	19848	130' X 102'	250	1800
Wheeling Civic CenterWheeling, WV	5400	2200	100-350	22000	191' X 124'	1200	1100
Shelby Farms Show Place ArenaMemphis, TN	4200	2300	50-75	31250	250' X 125'	450	1500
DeSoto Civic Center Southaven, MS	6500	3500	10	48990	250' X 140'	1400	2500
Greenwood Civic Center Greenwood, SC	2400	1100	150	16000	160' X 100'	1100	3000
Average	5139	2208	5	28766	210' X 125'	1513	2194

Source: Management of the individual facilities; and Economics Research Associates.

Table 2: Market Characteristics of Comparable Civic Center Facilities

MARKET CHARACTERISTICS OF COMPARABLE CIVIC CENTER FACILITIES
Name of Facility	User Market Characteristics
Great Smoky Mountains Expo Center	Majority from within 50 mile radius Morristown, TN
Jackson Civic & Convention Center	35% from Madison County Jackson, TN Remainder from within 50 mile radius
Salem Civic Center	25% Salem-Roanoke-Roanoke County Salem, VA 75% Central & Southwest VA
Freedom Hall Civic Center	60 mile radius from center Johnson City, TN
Wheeling Civic Center	45% West Virginia Wheeling, WV 50% Ohio, 5% Pennsylvania
Shelby Farms Show Place Arena	70% from Memphis Memphis, TN 30% from 70 mile radius
DeSoto Civic Center	60% from Memphis Southaven, MS 40% from DeSoto County (40 mile radius)
Greenwood Civic Center	Majority from within 50 mile radius Greenwood, SC

Source: Management of the individual facilities; and Economics Research Associates, 2005.

Table 4: Event Analysis of Comparable Civic Center Facilities

Smoky Mts Jackson
Salem
Freedom Hall Shelby DeSoto
Weighted Average Sporting/Equestrian 68% 0% 20% 16% 63% 18% 24% Family/Spect 8% 30% 16% 37% 9% 6% 16% Meeting/Social 7% 30% 50% 34% 28% 71% 43% Trade Show/Conv 16% 40% 15% 13% 0% 5% 16%

Total Event Days 97 180 199 62 78 216 139
Primary Market Population 1,138,505 495,154 799,205 939,506 1,411,746 1,126,213 985,055
Economics Research Associates
Southeastern Kentucky Agricultural & Exposition Center Draft Financial Report Project No. 16197

Smoky Mountain Exposition Center
The Walters State Community College Great Smoky Mountains Expo Center is located in Morristown, Tennessee about 90 miles southeast of Corbin. The multi-purpose arena was built primarily to showcase east Tennessee livestock and to host agricultural education programs for Walters State Community College students, as well as local citizens. In addition the arena holds numerous non-agricultural events including family and spectator events, pet shows, business/industrial trade shows, and various community service events.

The main arena is approximately 98,000 square feet with a 150’x300’ show ring floor. There are 3,875 permanent and 3,000 portable seats. In addition, there are two 100-stall barns with 12’x12’ stalls and three parking lots accommodating 2,000 cars. The Smoky Mountain Expo Center hosts about 55 to 60 events a year, the majority being horse shows and other equestrian events. Because of the extensive set up and clean up time required for equestrian events, Smoky Mountain Expo Center is limited in its number of event days per year. Other events include rodeos, motocross racing, team roping practices, and several trade shows, the largest being the self-produced Smoky Mountain Boat, Fishing, and Sportsman show which attracts between 10,000 and 15,000 people over two weekends.

The majority of event attendees come from within a 50-mile radius from Morristown, however major horse shows can attract people from six or seven states.

Jackson Centre
The Jackson Centre is a campus of six facilities located in Jackson, Tennessee approximately 345 miles southwest of Corbin. The campus includes the Carl Perkins Civic & Convention Center, Oman Arena, Ned McWherter West Tennessee Cultural Arts Center, Fairground Park, Carnegie Center, and Pringle Park. Between the six venues, the Jackson Centre hosts approximately 600 – 700 event days a year. Approximately 75% of the events are held among the Carl Perkins Civic Center, Oman Arena, and the Fairground Park. About 60% of the events at the Oman Arena are sports and 90% of the Fairground Park events are trade shows or expositions.

The Carl Perkins Civic Center, the most comparable to the multi-purpose facility envisioned for Corbin, has approximately 2,200 fixed seats. It also has 16 meeting rooms and 22,000 square feet of exhibition space. On average the Civic Center hosts 180 event days per year. Approximately 40% of the events are trade shows or conventions and the remainder are evenly split between meetings & social events and family & spectator events. Annual events include the Miss Tennessee Scholarship Pageant, the Jackson-Madison County General Hospital Health Fair, University School of Jackson Holiday Mart and Antique Show, the West Tennessee Boat, Sports and RV show, the Ballet Arts "The Nutcracker," and the JRPD Best Christmas Pageant.

While Jackson has a considerably larger local population than Corbin (62,000), there are roughly the same number of people within a 50-mile radius. This is favorable considering Jackson hosts up to 700 events per year.

Salem Civic Center
The Salem Civic Center, part of the James E. Taliaferro Sports and Entertainment Complex, was built in 1967. The 74-acre campus includes the 7,400 seat civic center, 6,300 seat baseball stadium, and a 7,200 seat football stadium. Salem Civic Center has approximately 200 events days per year, although about 50 of these days are weekly meetings of the Salem Kiwanis and Rotary Clubs. Aside from the meetings, the majority of events held are in the family and spectator category. They host numerous sports tournaments at the youth, high school, and college levels, the latter which brings in the most revenue for the facility.

Because of Salem’s proximity to the Roanoke Civic Center, approximately 10 miles away, they rely heavily on the smaller trade shows and local social events, like holiday parties. They are able to attract about 12 – 20 concerts a year through co-promoting but are often passed over for the primary markets in the vicinity. The two largest events attended are the Salem Fair, an 11-day event attracting 300,000 people, and the Roanoke Valley Horse Show, a six-day event attracting 25,000.

Approximately 25% of Salem Civic Center’s market comes from the Salem Roanoke Valley, and the remaining 75% from central and southwest Virginia.

Freedom Hall
Freedom Hall is located in Johnson City, Tennessee, approximately 160 miles from Corbin. The facility has 5,600 permanent seats and an additional 1,000 portable. The facility hosted just 62 event days in the past year, the majority of which were community meetings and social events.

Because Freedom Hall is located on Johnson City school system property, no alcoholic beverages are allowed which limits revenue. However, they are able to attract national shows through aggressive marketing and co-promoting including Disney on Ice, Sesame Street Live, and the Harlem Globetrotters, nearly selling out this event. Freedom Hall is unable to host rodeo or other ice events because of the small arena size (130’ x 102’). Additional limitations include no meeting rooms and inadequate storage space.

Event Potential
ERA’s market analysis involved a survey of approximately 35 local and regional event organizers. This includes a combination of current facility users at the Corbin Civic Center and Corbin High School, as well as potential new users based on events and festivals currently taking place in the region. In addition, ERA interviewed more than 25 event organizers and promoters regarding facility requirements, level of interest in the Corbin location, and general impressions of the Tri-County market area.

Potential events were broken into four categories for the purpose of this market analysis: sporting & equestrian events, family & spectator events, meeting & social events, and trade shows & conventions.

Based on these interviews, market research, and demographic analysis, ERA estimates that the new facility can expect to host between 80 to 100 events, or 120 to 150 event days, given the hiring of a capable facility director and the scheduling of an appropriate mix of events.

The number and mix of events at the Southeastern Kentucky Expo Center will be determined by the facility, available dates, pricing, booking availability, and marketing.

Demand for the Corbin facility indicates a fairly even breakdown for the four categories, with meeting & social events likely attracting the most event days and sporting/equestrian & family/spectator events attracting the largest number of attendees.

Approximately one-quarter of the potential identified events are already taking place in Corbin. There is the potential to attract about 50 regional events that are either looking for a new facility or rotate on an annual basis. In addition, based on scheduling and market interest, there is potential to attract approximately 40 new events.

While the majority of events will attract between 1,000 and 3,000 people, no events are projected to attract over 7,000 people. Approximately 5% of all events will attract more than 5,000 people, however these are concerts and graduations which accommodate seating on the floor

Tables 5 through 7 summarize potential events. See Appendix 2 for the detailed potential event schedule.
Table 5: Southeastern Kentucky Agricultural & Exposition Center Potential Event Days by

Type
Event Type	Potential Annual Events	Potential Annual Event Days	Event Days %
Sporting/Equestrian	26	46	25%
Family/Spect	34	50	27%
Meeting/Social	48	54	30%
Trade Show/Conv 14 33 18% Total 122 183 100% Event Type Realizable Annual Events Realizable Annual Event Days Event Days % Sporting/Equestrian 18 28 19% Family/Spect 35 42 28% Meeting/Social 48 57 38% Trade Show/Conv 10 22 15%

Total 111 149 100%
Table 6: Southeastern Kentucky Agricultural & Exposition Center Event Days by Market

Market Potential Annual Events Potential Annual Event Days Event Days %
Local	38	47	26%
Regional	47	75	41%
New Events	37	61	33%

	122 183 100%
Market Local Regional New Events	Realizable Annual Events Realizable Annual Event Days Event Days % 33 38 26% 44 66 44% 34 45 30%

111 149 100%
Table 7: Potential Event Days by Type and Attendance
Attendance per Event

In general, the survey of organizers, promoters and stakeholders yielded positive results regarding the Southeastern Kentucky Agricultural and Exposition Center. Accessibility ranked as the number one reason for choosing a facility followed by an availability of hotels, restaurants, and shopping, as location and proximity to services are increasingly important with the rise in gas prices. While potential new events were wary of Corbin’s adjacency to the Knoxville and Lexington markets, they were optimistic about its location, lack of competitive facilities within 50 miles, sizeable primary market, and visitor amenities.
Key findings from ERA’s survey of event organizers, promoters and stakeholders are provided below.

Sporting and Equestrian Events
ERA interviewed more than 15 sporting and equestrian event organizers regarding the likelihood of holding an event in Corbin. Interviewees included conference commissioners, horse and livestock show organizers, and dirt event promoters like motocross, rodeos, barrel racing, and team roping organizations. Following are ERA’s key findings.

Regional and state tournaments and playoffs require a strong hotel presence and good accessibility. While conference directors indicated a new facility in Corbin would be favorable, these events, like the Region 13 High School Basketball Championships, Mid-South Conference Basketball Championships, and the USTA State Gymnastics Meet, tend to rotate on an annual basis.

Although there is some interest in hosting equestrian and livestock events at the new facility, it is unlikely that a multi-purpose facility would be able to accommodate the larger events without a significant number of stalls and appropriate equipment. Equestrian and livestock event promoters indicated a minimum need for 200 stalls and preferably 40 to 75 RV hookups.

While dirt event promoters prefer dirt arenas, they regularly perform in concrete floor venues with portable dirt. Both portable dirt and ice add a significant cost to shows that are typically assumed by the facility in order to attract the shows. Dirt events typically prefer a ring size of at least 200’ in length.

Family and Spectator Events
ERA interviewed more than 30 family and spectator event organizers regarding the likelihood of holding an event at the Southeastern Kentucky Agricultural & Exposition Center. ERA interviewed concert, performing arts, and family show promoters to determine what the potential market for family and spectator events might be for the civic center. Interviewees specified the following.

Corbin will be able to attract touring groups but most likely no major headliners, as the majority of these performers will be in Lexington and/or Knoxville. However, the typical audience for family-oriented shows (i.e. circus, children’s theatre) will not drive more than 40 miles, which would make Corbin an attractive alternative to the primary markets. National shows, like Disney on Ice or Sesame Street Live, typically initially play split weeks between primary and secondary markets (i.e. weekdays in Corbin, weekend in Lexington), and if successful, will return to the secondary market the following year for weekend shows.

Certain events can only be supported once a year by secondary markets. These include national shows like WWE Wrestling or the Harlem Globetrotters, as well as major circuses, rodeos, and monster truck events. More than one appearance often leads to lower ticket sales and a loss of interest from attendees, which could discourage these events from returning to the market.
Secondary markets must be creative with the types of shows they attract; advertising the facility and having an updated website allows promoters to find facilities in areas that they would like to work in. Effective advertising and print capacities, as well as radio promotions are essential. For example, Christian concert and speaker promoters indicated that they require a strong Christian market with a good Christian radio station for promotions.
Design considerations that are often overlooked include building the facility with doors of adequate size (i.e. must be large enough for monster trucks to fit through), planning enough storage space, and incorporating professional dressing rooms for performers. These details are fundamental in attracting the larger, more professional shows.

Meetings and Social Events
As evidenced in the experience of the comparable facilities, local meetings and social events are likely to make up the largest number of event days at the civic center. Currently, there is significant demand from local companies, Corbin High School, and civic organizations for adequate meeting facilities.

While there are numerous small, local driven events in the Corbin area, one of the largest identified needs is a venue for holding graduation ceremonies. Area high school graduations at Corbin, North Laurel, and South Laurel currently exceed capacity at their respective gymnasiums. The community estimated a demand for 5,000 seats for each of the three ceremonies. In addition, there is the potential for hosting area college graduations as well.

Of the five major area companies interviewed (out of over 30 identified), all indicated a strong interest in holiday parties as opposed to driving to Lexington or Knoxville. Several expressed interest in using the center for training purposes and all-company meetings.

Although this category will most likely have the highest demand, these events are also the most price-sensitive and generate the least revenue. Balancing the scheduling of this local demand with income-producing events will be essential to the success of the facility.

Trade Shows and Conventions
Trade and consumer shows are important for attracting participants and visitors from outside of the region who will utilize Corbin’s hotels and businesses. Survey results indicate the following:

Whereas the broad-market appeal consumer shows and expos expressed little interest in a secondary market location, smaller events like home and garden, antique, boat & RV, gun & knife, computer, or bridal shows, indicated that the Corbin location offers the possibility to cater to a currently untapped market. These event representatives interviewed emphasized the importance of a facility with high visibility and acres of free parking.

Several of the comparable facilities promote their own annual trade shows, like the Smoky Mountains Exposition Center whose annual Boat, Fishing and Sportsman Show attracts about 15,000 people over several days.

Convention organizers have expressed a strong interest in the new facility, as most have begun to outgrow other area facilities. There is the opportunity to attract state associations, like the Kentucky Firefighters Association, as well as church convocations, like the Celebration of the Cumberlands. In addition, rotating events like the Kentucky Baptist Convention, could potentially utilize the space every few years.

Program Recommendations
Based on the market analysis, ERA concludes that Corbin could support an indoor, multipurpose facility. Because secondary markets fare better with a mixture of event types, programming should be varied. Not only will different uses address the needs of the larger community, but the flexibility will allow the center to attract events unforeseen at this time.
Based on the market analysis, ERA recommends the follow facility program: