Arlington Theater Impact Proposal

8/12/2019 Arlington Theater Impact Proposal

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7 March 2013

Ms. Carol Kowalski

Planning Director

Town of Arlington

30 Massachusetts Ave.

Arlington, MA 02476

Dear Carol,

Re: Economic Impact Analysis of Arlingtons TheatersCambridge Economic Research is pleased to submit its proposal to conduct an analysis of the contribution of

Arlingtons theaters to the Towns economy and quality of life. It is our understanding that the Town is considering

making zoning changes to support the Regent Theater and the Capitol Theater and is interested in measuring the

quantitative and qualitative impacts of these two vital institutions on the Community.

The arts and entertainment industry is becoming widely recognized as an important economic driver that has

catalyzed the revitalization of commercial districts throughout the country. Over the past twenty-five years,

Cambridge Economic Research has developed a national reputation in the field of economic impact analysis,

commercial district revitalization, and arts-based economic development strategies. Here in Massachusetts, we

have designed and evaluated arts-based commercial revitalization strategies for downtown districts in Lowell,

Lawrence, Milford, Gardner, and Athol. The depth and breadth of this experience makes us uniquely qualified to

perform this challenging and engaging study.

The Economic Impact Analysis will be managed by Margaret Collins, the Director of Cambridge Economic Research.

She will be solely responsible for conducting all phases of the work. Margaret is an expert in economic impactanalysis, having conducted over 50 similar economic impact evaluations for cities and towns across the nation.

Cambridge Economic Research, a certified WBE/DBE, has no conflicts of interest for this project. We bring you

integrity, judgment, and over 20 years experience in state -of-the-art methods, models, and tools for analyzing

economic and fiscal impacts of institutions and organizations. We look forward to contributing to the Towns

efforts to support and sustain these two valuable institutions, which have contributed so much to the vitality and

the high quality of life in Arlington. We commend the Towns proactive approach to planning for the sustainability

of its theaters.

Sincerely,

Margaret Collins, AICP

Director


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Project Understanding

From major metropolitan areas to small rural towns, research shows that the nonprofit arts

and culture industry is an economically sound investment. It attracts audiences, spurs businessdevelopment, supports jobs and generates government revenue. Locally as well as nationally, the arts

mean business.

The arts and entertainment industry is an important economic driver that has catalyzed commercial

district revitalization throughout the country. A 2007 study commissioned by Americans for the Arts

concluded that, nationally, the arts and culture industry generates $166.2 billion in economic activity

every year, resulting in $29.6 billion in federal, state, and local tax revenues. Arts industries are among

the fastest-growing in the country. During the first five years of the millennium, spending by arts

spending by organizations and their audiences grew nearly one-quarter. Theaters support vibrant

commercial districts and neighborhoods, revitalize communities, and bring tourists and new residents to

an area.

The Town of Arlington is seeking a consultant to help them evaluate the contribution of the Towns two

theatersThe Capitol Theater and the Regent Theater -- to the local economy. As we understand it,

the purpose of this

study is to develop an understanding of not only the economic and fiscal impacts of Arlingtons theaters,

but also to show how that theater, arts, and culture are a public good in which all citizens have a stake

and a share. Enhanced public understanding of the vital role of the theaters is needed to influence

legislators and decisions makers to allow regulatory and zoning changes that would allow the theaters to

expand their properties for their highest and best uses. Maximizing the potential of their real estate

assets could enable these vital institutions to survive, to flourish, and to contribute further to the highquality of life in Arlington.

Scope & Methodology

Cambridge Economic Research will conduct intensive research focusing on the specific spending

patterns of the theaters and their audiences and will identify which businesses in Arlington benefit from

this spending. Packaged economic impact models with off-the-shelf multipliers, such as IMPLAN and

RIMS II, work on a county level. They cannot be used to calculate economic impacts at the municipal

level. Since limited data are available from published sources at the town level, Cambridge Economic

Research will collect primary source data from interviews and surveys in order to accurately measure

economic impacts.

Task 1 Review Background Documents & Data

Cambridge Economic Research will begin by reviewing all background documents and data sources,

including planning reports, zoning ordinances, and demographic and economic data relevant to the

project.


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Task 2 Project Scoping

We will meet with TownsPlanning Staff to clarify the goals and objectives of the study. We will agree

the best approach and methodology to best meet these goals. The study schedule will be established

and deadlines for key milestones and deliverables will be agreed. A list of key business and other

stakeholders to interview will be developed.

Task 3 Literature Review

We will conduct a comprehensive review of the significant body of literature on the economic impact of

the arts on local economies and will assess the implications of this work for study design and

development.

Task 4 Evaluate Direct Spending on Admissions and Concessions

Cambridge Economic Research will meet with representatives from The Regent and The Capitol Theaters

to measure direct spending at the two venues. We will gather information on:

Employment

Wages

Attendance

Occupancy

Ticket sales

Concessions

Purchases of goods and services from local businesses

Our discussions will cover audience demographics and where patrons live. We will investigate spending

by overnight tourists, including performers. Before-and-after event spending will be discussed and we

will identify hotels, restaurants, and clubs in Arlington that benefit from this spending. The cultural,

educational, tourism, and entertainment impacts of the theaters on the community will be explored.

Task 5 Develop Audience Survey

With the permission of the two theaters, Cambridge Economic Research will develop a brief survey form

for the theaters to distribute to audiences and to post on their websites. The survey will focus on

audience demographics and before-and-after-event spending patterns.

Task 6 Identify Key Businesses

2010 Zip Business Patterns shows that there are a total of 74 restaurants and hotels in Arlington.

Working with the Town, the theaters, and other key stakeholders, Cambridge Economic Research will

identify the businesses that are the primary beneficiaries of spending by theater patrons. In addition to

hotels and restaurants, we will identify retail and other service establishments that benefit from

spending by theater spending. From this list, we will develop a sample of up to 25 businesses to

interview.


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Task 7 Survey Beneficiary Businesses

Cambridge Economic Research will develop a questionnaire to guide discussions with the sample of 25

businesses regarding typical spending by theater patrons and the contribution of this spending to their

businesses. The questionnaire will be agreed with Town staff.

We will conduct as many face-to-face interviews as is possible, given the business owners and

managers schedules. Some interviews may be conducted by telephone. The survey sample will be

used to estimate impacts on all businesses that are likely to benefit from Arlingtons theaters.

Task 8 Quantify Total Economic & Fiscal Impacts of Arlingtons Theaters

Economic impacts consist of direct impacts, indirect impacts, and induced impacts. Direct impacts

include theater admissions, theater spending on wages and supplies, and audience spending.

Cambridge Economic Research will calculate the total indirect and induced impacts of direct spending on

Arlingtons employment and tax base based on the interviews with businesses, patrons, and other

stakeholders.

Task 9 Evaluate Non-Quantitative Benefits to Arlington

In addition to providing high quality entertainment with educational content, Arlingtons theaters give

the town a strong sense of place, community, culture, and history. Based on interviews with theaters

and businesses, Cambridge Economic Research will identify the non-quantifiable impacts of the Town s

two theaters on quality of life in Arlington. These will be highlighted in the final report.

Task 10 Final Report

A concise final report summarizing the direct, indirect, and induced benefits of Arlingtons theaters on

the community will be prepared and presented to Town Staff. The report will recommend the best way

to package this information for public consumption will be made. The ultimate goal of the report will be

to influence local legislators and decision-makers to support the theaters with zoning and regulatory

changes. The purpose of these changes would be to allow the Theaters to survive and flourish in

Arlington by maximizing the revenue potential of their real estate holdings.


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Budget

The budget for this very interesting study is as follows:

Hours

Task 1 Review Documents & Data 5Task 2 Kickoff Meeting 2

Task 3 Literature Review 20

Task 4 Evaluate Direct Spending 8

Task 5 Develop Audience Survey 3

Task 6 Identify Target Businesses 2

Task 7 Survey Businesses 24

Task 8 Quantify Economic & Fiscal Impacts 16

Task 9 Evaluate Non-Quantitative Impacts 4

Task 10 Final Report 26

Total Hours 110

Hourly Fee $120

Total Fee $13,200

Thirteen thousand and two hundred dollars, including all expenses. This includes three hard, bound

copies of the final report as well as an electronic copy. If the Town wants the consultant to provide

additional hard copies of the report, these will be charged at cost.

Consultant Profile

Cambridge Economic Research is a full service economic, planning, and real estate investment

advisory firm based on Cambridge, MA. Since it was founded in 1987, the firm has successfully

completed more than 500 consulting projects in the region, the nation, and abroad. Cambridge

Economic Research provides a range of market research, economic, planning, and real estate analytical

services to public, private, and institutional clients.

Over the past twenty-five years, Cambridge Economic Research has developed a national reputation in

the field of economic and fiscal impact analysis, strategic planning for commercial district revitalization,

and arts-based economic development strategies. Here in Massachusetts, we have designed arts-based

commercial revitalization strategies for the downtown districts in Lowell, Lawrence, Athol, Gardner, and

Milford. We have recruited arts entrepreneurs and movie theaters to fill vacant Main Street retail

space in the historic centers of these cities and towns. The depth and breadth of our experience in arts,

tourism, and planning for Main Street districts makes us uniquely qualified to perform this challenging

and engaging study.


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Staffing

Margaret Collins, Director of Cambridge Economic Research, will perform all tasks under the

Scope of Work. She is an expert in economic impact analysis. Her full bio and resume are attached.


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Years of Experience--- 25

Education

Masters, Urban Planning,Washington University.

B.A., History & PoliticalScience, Webster University.

Specific Expertise

Economic Impact Analysis Commercial District

Revitalization Retail Demand Analysis Economic Development &

Marketing Strategies.

Team Qualifications

Margaret Collins, AICP

Role: Project Director

Cambridge Economic Research

71 Putnam Ave.

Cambridge, MA 02139Email:[email protected]

Margaret Collins, the Director of Cambridge Economic Research, is a certified urban planner with over

25 years of international experience in analysis of redevelopment prospects for vacant and underused

retail districts. She is an expert in economic impact analysis and commercial district revitalization

strategies. She has developed arts and entertainment-based revitalization strategies for communities

throughout the county. Her clients include a diverse range of town, city, state, and federal agencies as

well as private developers and investors. Her portfolio of projects includes over 200 commercial

revitalization and redevelopment projects in locations throughout the world.

Prior to establishing Cambridge Economic Research, Ms. Collins was Director of the Scotland office of

Roger Tym & Partners where she worked with European urban renewal agencies and private developers

on planning and targeting users for a range of industrial and commercial redevelopment projects.

Previously, she was the Director of Land Use & Economic Development with Economic Development

Research Group. She has a MA in Urban Planning from Washington University and a BA in Political

Science from Webster University. A former Chairman of the American Planning Association, she has

published a book and several articles on urban and redevelopment and fiscal impact issues and speaks

regularly on these topics. Some examples of her work include:

East Delmar Commercial Revitalization Strategy, City of St. Louis, Mo

Survey of retailers, analysis of data and models, and identification of emerging market opportunities for

revitalizing a blighted area in St. Louis near Washington University with arts and entertainment

establishments. A successful revitalization strategy has since been s implemented anchored by the

Pageant Nightclub, a major regional concert venue that seats 2300 and a luxury boutique hotel.

Economic Impact of an NBA Franchise on Louisville, KY, University of Louisville, KY

For a firm of Government Relations Consultants representing the University of Louisville, Cambridge

Economic Research is conducting an analysis of the fiscal impacts of bringing an NBA franchise to Louisville,

KY. We conducted an exhaustive review of the literature on economic impacts of major league teams and
mailto:[email protected]:[email protected]


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used a model developed by the Federal Reserve Bank to project impacts of an NBA team on wages and

tourist spending. The study found that the costs of luring an existing NBA team to Louisville would far

outweigh any economic or fiscal benefits.

Economic & Fiscal Impact of the Riverside Station Development, City of Newton, MA

For the City of Newton, Cambridge Economic Research is peer reviewing an economic and fiscal impactanalysis of a mixed use transit-oriented development on the City and its residents. The Peer Review has

concluded that the assumptions used to project fiscal costs and benefits are not reflective of current real

estate market realities for this location. As a result, the costs of the development were under-estimated.

Economic Impact of the Lowell Trolley, City of Lowell, MA

The Lowell Trolley will connect Gallagher station and Lowells major historical, entertainment, cultural,

and educational institutions. The Trolley is expected to spark investment in 8 major mill conversion

projects in the Trolley Corridor. CER estimated that development activity in the Trolley Corridor will

produce 4700 new jobs which will occupy 2.3 million square feet of refurbished retail and commercial

space. Over 1000 new housing units will be occupied by 2400 new residents who will contribute $75

million in additional disposable household income to support local businesses.

Economic Impact of Expansion of the Philadelphia Convention Center, Pew Research

Analysis of the national market for large conferences & trade shows. Projections of additional business

from the proposed expansion of the Philadelphia Convention Center. The economic and fiscal impacts

of convention tourist spending were projected.

Economic Impact of Riverfront Transportation Improvements on Fall River Businesses, MassDOT

For Mass DOT, Cambridge Economic Research is conducting an analysis of the impact of replacing an

existing highway that separates the Riverfront from downtown Fall River with an urban boulevard. The

analysis of published data sources was informed and supplemented by a series of field interviews with

existing downtown businesses.

Impact of TF Green Airport Expansion on Commercial Districts in Warwick, RI, RI Airport Authority

Analysis of the impacts of a number of alternatives for the expansion of runways at TF Green Airport on

existing retail, restaurants, and service businesses surrounding the airport.

Downtown Milford Marketing Plan, City of Milford, MA

Marketing strategy for the revitalization of Milford's traditional pedestrian shopping districts. Conducted

extensive surveys & developed a series of business plans for retailers. Used ESRI models and data to

analyze supply and demand conditions and developed a successful strategy to revitalize downtownMilford, which has attracted dozens of retail, restaurants, and entertainment businesses, and has become

an entertainment node in Bostons Central West Suburbs.

Economic Impact of the Westwood Station Mall, MA, Cabot, Cabot, & Forbes

For a private developer, EDR Group and Margaret Collins prepared an economic and fiscal impact

analysis of a proposed mixed use retail development with supporting housing, entertainment venues,


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and office space on a site surrounding the Westwood Commuter Rail Station in Bostons Central

Suburbs. Impacts on jobs, wages, output, and state and local taxes in the Commonwealth from the

proposed mixed use development were projected.

Downtown Lawrence Revitalization Strategy, City of Lawrence, MA

Inventory of existing premises, retail market data analysis, and survey of downtown retailers to identify

opportunities for new businesses and arts groups serving the Citys changing demographic profile to fill

vacant floor space.

Downtown Methuen Site Analysis, City of Methuen, MA

Market Analysis and Site Assessment for a redevelopment program for key sites in Downtown Methuen.

The consulting team identified eight key underused sites and buildings downtown and evaluated

potential restaurant and entertainment reuse options for them. The study culminated in an action plan

that specified steps required to implement to implement each reuse option.

Kalamazoo Highway Economic Impact Study, Michigan DOT

Assessment of neighborhood and citywide economic and real estate market impacts of a proposed new

highway interchange in Kalamazoo, MI.

Hull City Center Retail Revitalization Plan, City of Hull, UK

Plan for a major retail development in Hull, involving review and short listing of developer proposals for

a major new retail center in the Hull City Center. Preparation of a successful proposal for partial

funding from the European Regional Development Fund.

Impact of Tourism on Revitalization of Downtown Detroit, MI, University of Missouri

Analysis of the impact of public investment in convention centers and tourist infrastructure on economic

regeneration of older cities. Detroit was selected for special case study.

Economic Impact of Tourism on the Regeneration of Cities, UMSL Public Policy Research Center

Director of a major research project on the impact of public spending on tourism on the economies of

older Central Cities. New Orleans, St. Louis, and Detroit were selected for detailed case study. For

University of MissourisCenter for Metropolitan Studies.

Selected Books & Publications Methods of Determining Amortization Periods for Non-Conforming Uses, Urban Law Review

Quarterly, Feischrift Edition, Autumn 2000.

"Rejoinder to: "Is the St. Louis Redevelopment Program Fiscally Beneficial?" Journal of Urban Affairs,

Winter, 1990.

"Celebrating the City Through Tourism: Civic Boosterism in the Late Twentieth Century Urban

Resources, Vol. 5, No.3, Spring 1989.


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Reviving Cities with Tax Abatement, New Brunswick, Rutgers University Press, 1981. (Book co-

authored with Professor Daniel R. Mandelker, Washington University Law School)

Missouri's Urban Redevelopment Corporations Law: A Policy Study, for the U.S. Department of

Housing and Urban Development, Washington, D.C., Government Printing Office, 1979.

Political Coalitions and Redevelopment in Central Cities: The Case of Tourism in Gary Tobin (ed.),

The Changing Structure of the City: What Happened to the Urban Crisis? Volume 16, Urban AffairsAnnual Reviews, Sage Publications 1979.

Professional Memberships

Full Member, American Institute of Certified Planners

American Planning Association, Missouri Section Director, 1989-1990

Massachusetts Association of Consulting Planner

Economic Development Professionals Network

International Network for the Arts