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Houston Dynamo Stadium Impact Report

In July of 2011, Waveland Community Development allocated $10.5 million in New Market Tax Credits to the Houston Dynamo Stadium, an $85.6 million sports stadium in Houston, Texas.  The 22,000 seat sports stadium primarily serves as the home for the Houston Dynamo Soccer Club, an existing Major League Soccer franchise.

A recent impact report was prepared by AEG which highlights the full scope of the project's benefits and impacts.  The project was located in the highly distressed East Downtown District of Houston.  This census tract had a 41.5% poverty rate and 11.5% unemployment rate. The full economic impact report and excerpts from the study can be seen below.



    










Economic Impact

The stadium allowed existing team-related jobs to be maintained as well as new team and stadium-related jobs to be created.  Construction of the stadium supported 360 full-time jobs and generated a total economic output of $154 million.  The project also awarded 32% of all its construction subcontracts to minority, women, or small businesses.  Dynamo team operations created 15 new full-time jobs, for a total of 59 operations employees, that will produce employment compensation of $259.3 million (PV) and a regional economic output of $457.3 million (PV) over 20 years.

The stadium operations team was created as a result of this project and, consequently, hired 25 new staff which will generate employment compensation of $123.7 million (PV) and an economic output of $239.7 million over the subsequent 18.75 years. Stadium Operations will also generate new part-time game-day jobs, including concession sales, ushers, ticket takers, event security, cleaning crews, food, medical and police–generating up to 500 part-time jobs for sold-out events. Over the 20 years of the project timeframe measured, the total economic contribution from all sources (excluding game-day parttime jobs) is anticipated to be $851 million (PV).

Fiscal Impact

This project has utilized cumulative taxpayer subsidies (local, state and federal) totaling $29.9 million. The resulting fiscal impacts of the project are significant. The local, state and federal tax revenue (the “cumulative tax revenue”) generated during stadium construction (15 months) is $15.1 million (PV). The projected cumulative tax revenue generated from annual team operations averages $3.55 million, or $71.1 million (PV) over 20 years. The projected cumulative tax revenue generated from annual stadium operations averages $1.52 million, or $28.4 million (PV) over 18.75 years. Therefore, over the next 20 years, the total cumulative tax revenue generated from the construction and operations of the facility is projected to be $114.6 million (PV). The fiscal repayment to the taxpayers, based on this subsidy level and the total projected cumulative tax revenues (construction and operations) over a 20-year period, is significant.

Social/Community Impact

The Dynamo Stadium Project has spurred many positive social and community impacts for the East Downtown neighborhood and broader region. The Dynamo team has been actively involved in grass-roots neighborhood improvement projects since the team solidified its plans to move into the neighborhood. They are sponsors of and active participants in a community improvement campaign called “Building a Better Houston,” led by BBVA and the Dynamo. This campaign supports the community through its four targeted initiatives: Build a Better Body, Build a Better Mind, Build a Better Planet and Build a Better Community. The Dynamo achieved further benefits by structuring its NMTC financing so that allocatees will set aside at least 50% of their exit fees to reinvest back into the Houston community through donations and grants to community-serving nonprofits and small businesses. Additionally, Houston Dynamo’s philanthropic arm, Dynamo Charities, has pursued its mission since 2008 to utilize soccer and the Dynamo organization’s resources to achieve a higher quality of life for the people in the greater Houston area through its various programs. The stadium development also spurred an important parallel development project which created the Houston Amateur Sports Park (HASP). HASP is the Dynamo’s training center and also serves as a community soccer park for youth and amateur events. HASP was specifically designed to address the lack of quality community recreational facilities. BBVA Compass Stadium will also greatly benefit Texas Southern University, which has a 30-year low-cost lease to use the stadium for home football games. This access increases the team’s and school’s visibility, brings in higher revenues from games and contributes to the financial stability of the university.

Environmental Impact

BBVA Compass Stadium is the greenest new stadium in Houston and one of greenest soccer stadiums in the nation. The project has implemented AEG’s 1EARTH program and goals throughout the construction and operation of the venue and it received LEED Silver certification for New Construction in December 2012 based on its design, construction and operations protocols. The construction and operations phases adopted sustainability practices that achieve water efficiency of 41%, energy reduction of 20%, diversion of 87% of construction debris, use of 98% FSC certified wood, and recycling of 30% of game day waste. Moreover, the project incorporates a transit-oriented design with direct access to bus, rail, trolley and biking as well as walking paths. Preferred parking is also provided for low-emission or fuel-efficientcars. Finally, the BBVA–Dynamo partnership is undertaking a “Build a Better Planet” campaign which includes working with Greenstar Recycling for ongoing recycling and environmental education. Overall, the facility serves as a model for sustainable stadium design and operations nationwide.

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