REIN Stadium Report - October 2015

1 © The Real Estate Investment Network Ltd.

THE IMPACT OF

STADIUMCONSTRUCTION

ON REAL ESTATE VALUES


I m p o r t a n t D i s c l a i m e r

This Report, or any seminars or updates given in relation thereto, is sold, or otherwise provided, on the understanding that the authors, Melanie Reuter, Allyssa Fischer, and The Real Estate Investment Network Ltd and their instructors, are not responsible for any results or results of any actions taken in reliance upon any information contained in this report, or conveyed by way of the said seminars, nor for any errors contained therein or presented thereat or omissions in relation thereto. It is further understood that the said authors and instructors do not purport to render legal, accounting, tax, investment, financial planning or other professional advice. The said authors and instructors hereby disclaim all and any liability to any person, whether a purchaser of this Report, a student of the said seminars, or otherwise, arising in respect of this Report, or the said seminars, and of the consequences of anything done or purported to be done by any such person in reliance, whether in whole or part, upon the whole or any part of the contents of this Report or the said seminars. If legal, accounting, tax, investment, financial planning or other professional advice or assistance is required, the services of a competent professional person should be sought.

The following content has been researched and published in good faith without warranty or liability for any erroneous, incomplete or misleading information.

All Rights Reserved. No part of this Report may be reproduced, or stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher.

A u t h o r s

Melanie Reuter, Director of ResearchAllyssa Fischer, Research Analyst

Released: October 2015

© The Real Estate Investment Network Ltd.6 – 27250 58 CrLangley, BC V4W 3W7Tel (604) 856-2825 Fax (604) 856-0091E-Mail: [email protected] Web Page: www.reincanada.com


This report examines the positive and negative ripple effect that professional sports facilities have on real estate values, even when controlling for general house price inflation and/or transportation improvements.

Looking at a cross-section of North American and European residential housing statistics, the report will reveal that the effect can vary depending on a stadium’s integration, or lack thereof, within an entertainment district and the surrounding community.

The impact of stadium construction is more closely examined for select Canadian stadiums and cities, including: Rogers Place & Ice District, Edmonton, AB; Tim Hortons Field, Hamilton, ON; CalgaryNEXT, Calgary, AB; and BC Place & Rogers Arena, Vancouver, BC.

The purpose of this report is to educate anyone purchasing a home or investment property to maximize their return by clearly outlining how any existing, new, or proposed arena project will potentially affect the price.

The findings of the research clearly support the following:

• An arena’s positive impact on housing values can be felt most within a 5 kilometer radius, and has the largest effect when appealing architecture, community plazas, park landscapes, retail, commercial, and entertainment spaces, and the stadium’s construction itself are incorporated into its design.

• A negative effect on property values is felt when the costs of a proposed stadium necessitates the increase of property taxes.

• Homes in neighborhoods close to new stadium builds (or proposed stadium builds), on average, have premiums ranging between 3% and 15%, depending on the different types of housing, parking options available, and the distance from the stadium itself.

• Housing values increase on average 1.75 % for each 10% decrease in distance from a stadium, with the positive price increase being highest for homes in closest proximity to the stadiums and decreasing gradually outwards within the aforementioned radius.

• When a stadium is located outside the downtown core of a city, and is not connected to any other economic development activities or an urban redevelopment program, residential property values around the facility will still see a positive increase in value. However, this increase will not be as dramatic as those that are built in, or with nearby accessibility, to the Central Business District (CBD).

• While close proximity to the stadium usually results in the largest price increases, the regular presence of fans may lead to a constant source of noise, incivilities, traffic congestion and a scarcity of parking. These are all factors with the potential to create a price depreciating effect.

E X E C U T I V E S U M M A R Y& R E P O R T H I G H L I G H T S


In the process of carrying out the research used to compile this report, the following additional interrelated findings were revealed:

• The presence of a sports arena not only effects residential real estate values but also increases the quality of life in terms of cultural importance, city image, and community visibility.

• As property values increase, so do rents.

• While living near a stadium that hosts a winning team may increase happiness, home prices don’t rise more in the years that teams win games.

• Real estate values can increase upwards of 40% for properties located within 500 – 800 meters of light rail transportation stations. Variations in the amount of the increase can be further attributed to the type of housing and the socioeconomic status of the neighborhood.

• Access to major highways and/or highway improvements providing new accessibility to a region with the arena, increase residential property values on average by 12% - 15%.

In summary, this report will strongly support that the locale of stadiums, especially in urban centers, plays a large role in residential real estate price increases. Having stadiums located in conjunction with a well-designed and easily accessible infrastructure and transportation systems, however makes for the biggest impact on housing values if, and when, residences are located within a primarily 5 kilometer radius.


With a simple idea and from humble beginnings, The Real Estate Investment Network (REIN) was founded in 1992. Today we are Canada’s most trusted real estate investment education, analysis, research and strategic leadership resource. To date, by leveraging our economic insights and analysis, and using proven strategies taught by REIN, our Members have

transacted more than 36,500 properties, representing more than $4.65 billion dollars of real estate.

From our establishment over two decades ago in Vancouver, we expanded our community to include four additional major Canadian cities: Edmonton, Calgary, Toronto, and Ottawa. Our vision encompasses not only these areas, but with current technology also includes markets across the country, giving our Members access to economic research and analysis in their neighborhood, in their province, and across the nation.

REIN’s 2,300+ Members enjoy access to a wide range of information, services, and products. Our community is a dynamic network that includes individual investors, families, corporations, professionals and entrepreneurs of every kind, all sharing a desire to secure their financial futures with positive cash flow real estate. REIN Members learn how to apply proven investment strategies and how to take advantage of economic events that affect real estate markets across this country.

A B O U T T H E R E A L E S TAT E I N V E S T M E N T N E T W O R K


Executive Summary & Report Highlights .......................................................................About The Real Estate Investment Network ..................................................................Introduction ...............................................................................................................Studies on Stadium Construction and Real Estate Values .............................................Table of Results .........................................................................................................Direct Effect Of Stadium Construction on Residential Property Values ............................Neighbourhood Proximity to Stadium ..........................................................................Stadium Location Relative to the Central Business District ............................................Community Integration ...............................................................................................The Benefits of Public Transit ......................................................................................Other Variables Impacting Housing Values ...................................................................Impact of Stadium Construction on Specific Canadian Communities .............................. Edmonton, AB .................................................................................................. Hamilton, ON ................................................................................................... Calgary, AB ...................................................................................................... Vancouver, BC ..................................................................................................Footnotes ...............................................................................................................

TA B L E O F C O N T E N T S

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With the recent completion of Tim Hortons Field in Hamilton, and Edmonton City Council finally striking a deal with the Oilers to build a new hockey arena, real estate investors often ask whether an arena creates a ripple effect on real estate values. Pundits often say a new stadium is expected to add tens of millions to property values, but does current research support this blanket statement?

Over the past 23 years, REIN’s research has demonstrated that real estate values are driven both up and down by eight clear fundamentals1. The basic theory in real estate is that the more attractive the location, the higher the value of the home. As the demand for homes in that area expands, the result is higher housing values. This begs the question: Does the construction of a new stadium make a neighbourhood more or less attractive to potential buyers and renters? Supporters of stadiums believe that their creation and presence increase jobs during construction and operation, attract tourists, increase spending in the community and attracts other businesses to the area.

Research does indicate that the presence of a stadium increases quality of life (cultural importance, civic pride, city image, and community visibility). Previous studies have also determined that a house is considered a “differentiated good, and the price of a house is determined by a combination of its own characteristics and intangible characteristics associated with the house, including public amenities near where the house is located2.” In this report, we endeavour to find out if the construction of a new stadium, an “intangible characteristic,” actually impacts the price of residential real estate in surrounding neighbourhoods and to what extent.

Does the construction of a new stadium impact the value of surrounding homes?

For many residents in North America, a vast majority of their personal net worth is tied directly to the value of their homes and investment properties, so the answer to this question is very important. As with our previous reports and books, the goal of this research is not only to assist investors and homeowners in gaining knowledge about how a project may affect their personal net worth, but to cut through the emotions and debate that surround stadium construction projects and answer these key questions from an objective, research-oriented point of view. This unbiased view will enable readers to see clearly how the new and proposed arena projects will affect their personal real estate portfolio today and in the future, allowing them to plan their investing strategies in advance of the stadiums’ completions.

I N T R O D U C T I O N


S t u d i e s o n S t a d i u m C o n s t r u c t i o n a n d R e a l E s t a t e V a l u e s

Underpinning our analysis is a synopsis of detailed studies conducted on stadium construction, their integration into community design, and their impact on real estate values. These examinations also include economic analyses on completed arena construction in regions across North America and Europe. The research provides us with a snapshot of what we can expect in terms of the impact on real estate prices as projects are started and completed.

Year Author(s) Stadium(s) Location Effects on Property Value

2014 Herron The Bronx, New York Value of homes surrounding the stadium were up 58% since 2005, vs. 50% borough wide.

Yankee Stadium

2014 Herron Brooklyn, New YorkBarclays Centre

2012 Feng & Humphreys Across United StatesMoving a residential housing unit one mile closer to a sports facility would increase its value by $793.

Every American NFL, NBA,MLB & NHL Facility

2008 Feng & Humphreys Columbus, Ohio Average increase in residential value near a stadium was $2,214 per home.

Nationwide Arena& Crew Stadium

2014 Herron Queens, New York Value of homes surrounding the stadium were up 135%–158% since 2005, vs. 71% borough wide.

Value of homes surrounding the stadium were up 10%–23% since 2010, vs. 8% borough wide.

Citi Field

2013 Kolko Across United States20 of 28 MLB stadiums are located in neighborhoods that are more expensive than the average for that metro.

All AmericanMLB Stadiums

2009 Ahfeldt & Maennig East Berlin, Germany Homes experienced a positive price increase of 3.5% between 1 km and 2 km of the arena.

Velodrom &Max-Schmeling Arena

2005 Tu Prince George’s County, Maryland

Homes between 2-3 miles not affected by stadium construction.FedEx Field

2014 Herron Staten Island, New York Value of homes surrounding the stadium were up 11% since 2008, vs. down 7% borough wide.

Richmond CountyBank Ballpark

2011 Ahfeldt & Kavetsos London, EnglandHighest price increase closest to the stadium and diminished gradually with distance until disappearing at a distance of 5km.

Arsenal’s Emirates Stadium& Wembley Stadium

2008 Feng & Humphreys Columbus, OhioHousing values increase by 1.75% for each 10% decrease in the distance from the house to the facility.

Nationwide Arena& Crew Stadium

2005 TuPrince George’s

County, Maryland

Homes located within 2.5 miles were lower than similar properties outside of the impact areas before stadium constructed, but rose after

FedEx Field

2004 Carlino & Coulson Across United States 53 of the areas with an NFL franchise had rents that were 8% higher than non- franchised cities.

60 American NHL Franchises

Ta b l e 1 - E f f e c t s o f S t a d i u m C o n s t r u c t i o n o n R e s i d e n t i a l R e a l E s t a t eL i t e r a t u r e R e v i e w 2 0 0 4 - 2 0 1 4


Research indicates that the presence of a sports arena can increase a neighbourhood’s quality of life. But the benefits of a stadium build go far beyond the expected increase in civic pride and city image. Studies show that there appears to be a higher positive impact on property values located near new stadiums that simply cannot be explained by either general house price inflation or transportation improvements3.

In studies conducted worldwide, the values of homes in neighbourhoods close to new stadium builds had premiums ranging between 3% and 15%, depending on the different types of housing and the distance from the stadium itself. Even announcements of new stadiums seem to result in higher-valued homes — in comparison to neighbourhoods located at a distance from the stadium4.

N e i g h b o u r h o o d P r o x i m i t y t o S t a d i u m

The largest factor in a home experiencing a positive price increase from the introduction of a new stadium into a community appears to be the distance between the home and the new stadium.

D I R E C T E F F E C T O F S TA D I U MC O N S T R U C T I O N O N R E S I D E N T I A LP R O P E R T Y V A L U E S

Figure 1. Estimated Impact of Velodrom and Max-Schmeling-Arenaon Standard Land Values.


In Columbus, Ohio for example, a 2008 study (Feng & Humphreys) on the Nationwide Arena and Crew Stadium concluded that the presence of both facilities had a significant positive impact on the values of surrounding homes. Based on the study’s estimates, housing values increased by an average of 1.75% for each 10% decrease in distance from the stadium. This positive price increase declined the further the homes were located from the arena.5

The results of German research indicate that arenas have a positive impact on real estate within a 5 km radius. In 2008, Ahlfeldt and Kavetsos studied both the Max-Schmeling Arena and the Velodrom in East Berlin. Their research was conducted five years after the construction of the two facilities, using aggregated market values for properties using block boundaries (all the houses in one block are added together and averaged). A 5,000 metre radius around the arena was used to measure the effect on real estate values in adjacent neighbourhoods. For each arena, 1,000 metre radii were constructed for measurement. Ahlfeldt and Kavetsos found that within 1 km, of the Velodrom, there was a 7.5% increase in real estate values while around the Max-Schmeling Arena there was no impact. Between 1 km to 2 km, however, there was a 3.5% increase in the value of homes surrounding the arena. Between 2 km to 4 km from each facility, there was no significant impact on real estate values (see Figures 1 & 2)6.

London experienced similar positive effects when two new arenas were constructed. A study conducted by Ahlfeldt and Maennig looked at house prices around two new football stadiums: Arsenal’s Emirates Stadium and Wembley Stadium. It found that construction of a new stadium actually raised local property prices by as much as 15%7. They found that property prices within a 5 kilometre radius of the two stadiums rose significantly after construction was announced. The effect was highest for homes in closest proximity to the stadiums and diminished gradually until it disappeared at a distance of 5 kilometres. It is important to note the appreciation in property prices near the new Emirates Stadium location was accompanied by a relative decline in prices around the stadium’s old Highbury location8.

Distance Velodrom Max-SchmelingArena

Figure 2. Estimated Impact of Velodrom and Max-Schmeling Arenaon Standard Land Values.

<1 km

1-2 km

2-4 km

Homes in surrounding neighbourhoods sawa 7.5% increase inreal estate values.

Homes in surrounding neighbourhoods saw a 3.5% increase in value.

No significant impact.

No significant impact. This is thought to be caused by a lack of available parking

near the venue.


I n c r e a s e i n A v e r a g e R e n t

An increase in property values is often translated into an increase in average rents. In a 2004 study of 60 of the largest Metropolitan Statistics Areas (MSAs) in the United States, Gerald Carlino & N. Edward Coulson found that 53 of the areas with an NFL franchise had rents that were 8% higher than non-franchised cities9.

N e g a t i v e E f f e c t s o f S t a d i u m s o n P r o p e r t y V a l u e s

While close proximity to the stadium usually results in the largest price increases, the regular presence of fans may lead to a constant source of noise and lack of parking that might have a price depreciating effect. Both the Velodrom and Max-Schmeling Arena are comparable in terms of physical size and architectural quality, so the researchers expected the positive price increase to be similar around both arenas. Upon further investigation, the researchers found that Max-Schmeling Arena is home to two very popular and regularly appearing sports teams, who have very dedicated fans. Noise and incivilities could contribute to the findings and limit the price appreciation. It was also found that there were parking issues (additional parking was not constructed) around the Max-Schmeling Arena. This scarcity of parking surrounding the arena adversely impacted property prices. Traffic congestion following unrealistic assumptions about visitors’ mode of travel prove to be an obvious explanation to the decrease in value of surrounding homes and may also discourage car owning real estate owners from purchasing property in the area10.

Figure 3. Top 5 Most Expensive Baseball Stadium Neighborhoods.

#

1

Team Stadium Median Priceper SQFT

Stadium Area PriceRelative to Metro Price

San Francisco Giants AT&T Park $653 1.3

2

3

4

5

Boston Red Sox Fenway Park $584 2.6

San Diego Padres PETCO Park $435 1.9

Washington Nationals Nationals Park $392 2.3

Los Angeles Dodgers Dodger Stadium $387 1.6

S t a d i u m L o c a t i o n R e l a t i v e t o t h e C e n t r a l B u s i n e s s D i s t r i c t

Generally, one of the attributes coveted by home buyers is nearness to the Central Business District (CBD). Accessibility is a critical determinant of residential land values, and the improved access between urban centres and residential neighbourhoods greatly improves the value of homes11. A facility located outside the downtown core of a city that is not connected to any other economic development activities will still increase residential property values around the facility, but this increase will not be as dramatic.

Jed Kolko, the Chief Economist at Trulia, Inc. recently conducted a study on the 28 American Major League Baseball (MLB) team stadiums to find out how these stadiums drive housing prices. The results of the 2013 study show the most expensive stadium neighbourhoods


relative to the average price of real estate in that city are located in or near downtown areas. Of the 28 American major-league baseball teams, 20 are located in neighbourhoods that are more expensive than the average price of other residential real estate located downtown. For example, at the time of the study, the price of real estate surrounding the Fenway Park stadium was 2.6 times more expensive than the Boston metropolitan area overall. Homes surrounding San Francisco’s AT&T Park were 1.3 times more expensive than the San Francisco metropolitan area overall (see Figure 2.)12.

In contrast, the study found that stadiums located further from downtown (by at least a few miles) were located in neighbourhoods that were less expensive relative to the downtown core. Yankee Stadium in the Bronx area of New York is six miles away from Grand Central Station, and surrounding homes are much more affordable than the typical New York City metropolitan neighbourhood13.

A 2005 study by Charles Tu looked into property prices surrounding FedEx Field or Redskins Stadium in Prince George’s County, Maryland, which was built on a 296 acre parcel of vacant land. The study compared single family homes near the arena with similar homes farther away. The study found that the value of a single-family home located between 2 miles (3.22 km) and 3 miles (4.83 km) was not affected by the arena. Before the site for the arena was selected, housing values within the measured area (2.5 miles) were lower than similar properties outside of the impacted areas. The initial results of the study appeared to show that properties located near the arena sold at a discount. However, further investigation showed the area the stadium was built in was below the value of other areas, which is likely the reason the land was purchased for the construction of an arena. The announcement prompted the value difference of the land to constrict, and upon completion of the arena, the price gap narrowed further14.

C o m m u n i t y I n t e g r a t i o n

When it comes to the construction of a stadium, it’s not as simple as “If you build it, they will come.” Residential values seem to see the biggest impact when appealing architecture, community plazas, park landscapes, and stadium construction are incorporated into stadium design. The presence of professional sports facilities can result in an increase in real estate values, when they are properly integrated into an entertainment district and the overall surrounding community. In Columbus, Ohio, the $175-million Nationwide Arena (which opened in 2000), is now at the centre of a thriving arena district, including condo buildings, night clubs, theatres, and restaurants15. By contrast, Vancouver’s Pacific Coliseum is situated in the middle of single-family homes.

In Berlin, the Velodrom and Max-Schmeling Arena were created with the intention of acting as local amenities for neighbouring residents. Special attention was paid to the architecture of the buildings and their incorporation into park landscapes. Both arenas were honoured with important architectural awards, and both have experienced positive price increases of 3.5% between 1 km and 5 km of the arena16.

A study on New York stadiums found that neighbourhoods that saw the greatest increase in economic activity from new stadium construction also included plans for retail, commercial, and entertainment spaces. The Barclays Center in New York received the Brooklyn Chamber of Commerce’s Building Brooklyn Award in 2013 for economic development, for a plan that included not only the arena, but also the surrounding Atlantic Yards area (a mix of residential and commercial buildings). Over 250,000 square feet of retail, up to 1.6 million square feet of


commercial office space, and 6,430 housing units are planned for the Atlantic Yards. Before its opening in September 2012, land surrounding the Barclays Center was going for between $75-125 per square foot and now trades for upwards of $200 per square foot. Home prices in surrounding neighbourhoods have similarly benefited, rising 10%-23%, vs. 8% borough wide in Brooklyn17.

In contrast, New York’s MetLife Stadium has seen real estate prices drop after plans to build a neighbouring retail and entertainment center continue to stall. While neighbourhoods near the stadium retain higher housing values than the surrounding borough (housing prices are up 11% since 2008, vs. down 7% borough wide), median housing prices in the same zip code as the stadium dropped 6.5% in 2009 after construction on the entertainment district stalled. However, residential values have recouped 6% in the last two years since a new company began building the retail and entertainment centre18.

It appears that a new state of the art sports facility, when integrated with an urban redevelopment program, can generate substantial increases in residential property values (in the vicinity of hundreds of millions of dollars) within a couple of kilometres of the facility, if the planning and development are carried out carefully19. A sports facility constructed without connections to retail and entertainment centres can still expect surrounding neighbourhoods to see an increase in residential property values around the facility, but this increase will not be as dramatic. T h e B e n e f i t s o f P u b l i c Tr a n s i t

Research shows that real estate values are driven both up and down by clear fundamentals, of which transportation change is one of the most dramatic catalysts20. In studies of the effect of transportation improvements on real estate in other jurisdictions around the world, it was found that real estate value increases occur for properties located within 500-800 metres of new light rail transportation stations. Light rapid transit stations can increase residential real estate prices upwards of 40%, depending on the home’s proximity to the station, different types of housing, and socioeconomic status of the neighbourhood21.

Access to major highways, and highway improvements have also proved to be major determinants for increased property values. Studies show that when a highway increased accessibility to a region with an arena by providing new access or shorter commute times, residential property values rose by 12%–15% over similar properties not affected by the new highway22.

Knowing that transportation improvements will deliver a 10%–20% enhancement of real estate values in the regions most affected, one asks if the existence of light rail technology in a community creates an additional increase in the real estate prices in neighbourhoods surrounding new stadium builds. Research shows that this really depends.

The sites for both the Max-Schmeling Arena and Velodrom in Berlin were chosen to connect well with local public transportation networks. In Ahlfeldt and Kavetsos’s study on the stadiums, it was found that in West Berlin, the proximity to suburban railway stations had a larger impact on property values, while in East Berlin, light rail stations had the larger impact on property prices. West Berlin has a developed metro network, but an undeveloped suburban railway service, while the opposite is true for East Berlin.


Ta x e s

A 2007 study by Dehring et al. investigated a set of stadium announcements concerning a new stadium for the NFL’s Dallas Cowboys. The proposal was to build a new stadium in Dallas Fair Park. When the Dallas Fair Park stadium was announced, the study found that property values increased in neighbourhoods that would surround the new stadium. However, in Dallas County, the community which would have paid for the stadium with increased property taxes saw property values decrease after the announcement. These patterns reversed when the proposed stadium site was not approved23.

W i n n i n g Te a m s

Do stadiums with winning sports teams experience a larger increase in average real estate than losing teams? Research shows that while living near a winning team may increase happiness, home prices don’t rise more in the years that teams win games, although rents may increase24.


Rogers Place is a multi-use indoor arena currently under construction at the block between 101 and 104 Street and 104 and 105 Avenue. Once completed, the stadium will replace Rexall Place as the home of the NHL’s Edmonton Oilers and will mainly be used for ice hockey and other indoor sports. The arena will have a seating capacity of 18,641 as a hockey venue and 20,734 as a concert venue. Public transit to the arena will be provided by Edmonton Transit System buses and the Edmonton Light Rail Transit system (through the Metro Line extension). Construction on the stadium began in March 2014, and the facility is expected to open in the fall of 2016 for the 2016-17 NHL season25.

The goal of Edmonton’s Capital City Downtown Plan is to make the city more sustainable, vibrant, well-designed, and accessible26. Similar to the Max-Schmeling Arena and Velodrom in Berlin27, the designers of the Edmonton arena have paid special attention to creating appealing architecture, integrating public transit, and providing recreational spaces and amenities for residents in the area surrounding the arena (named the Ice District). Design principles for the arena project include the incorporation of urban design (ensuring the buildings aren’t just esthetically pleasing, but fit harmoniously with their surroundings), open spaces, pedestrian pathways, retail and restaurants, streetscape, and suitability for Edmonton’s winter climate28.

More than 25 acres in the heart of Edmonton will be redeveloped - to create one of the most integrated sports and entertainment districts in North America. The following is a list of confirmed projects for the Ice District29:

I M PA C T O F S TA D I U M C O N S T R U C T I O N O N S P E C I F I C C A N A D I A N C O M M U N I T I E S

Rogers Place & Ice District - Edmonton, AB


2 0 1 6 • Rogers Place - Will seat 18,500 hockey fans or 20,000 concert-goers• Winter Garden - 24,000 square feet of public event space, including a pedestrian connection

between Rogers Place, the surrounding office towers, a luxury hotel, and Edmonton’s LRT • Edmonton Downtown Community Arena - Home ice for the MacEwan University hockey

teams, practice ice for the Oilers and Oil Kings, and rental ice for community hockey teams• Edmonton Civic Tower - 27 storey tower that will house over 65% of the City of Edmonton’s

downtown employees• Grand Villa Edmonton Casino - 60,000 square feet of world-class gaming, dining and live

entertainment• Oilers Entertainment Group - New headquarters for the Oilers Entertainment Group.• MacEwan LRT Station – (Through the Metro Line extension) MacEwan Station is one of

three LRT stations within a five-minute walk of the district.

2 0 1 7 - 2 0 2 0• Public Plaza - A 50,000 square foot public plaza will be a vibrant gathering place. • Four-Star Hotel - Offering guests more than 360 modern suites and upscale amenities• Condominiums - Situated above the four-star hotel, these premium condominiums will offer

panoramic city views.• Stantec Tower – At 60+ storeys, Stantec will be Edmonton’s tallest office tower, where

1,700 employees will work.• Residences - Over 1,000 residential units will be available in the Ice District including those

above the hotel, Stantec Tower and Cineplex.• Retail Attractions - 270,000 square feet of retail space surrounding the public plaza• Cineplex UltraAVX & VIP Cinemas • Grocery - A central grocery store located on the corner of 103 St. and 103 Ave.• Rexall Pharmacy - Will be located just off the public plaza, within walking distance for

nearby residents

As mentioned previously, pro sports facilities can result in important benefits to the local economy especially if they are properly integrated into both an entertainment district and the overall community. Rogers Place is being constructed in the heart of downtown Edmonton, has well-laid out urban design plans, and has excellent links to public transportation. By creating an entertainment district around the arena, hundreds of local amenities will be available for neighbouring residents. The list of planned projects for the Ice District is already staggering - as of December 2014, $2.5 billion in downtown development could be directly connected to Rogers Place30. New developments continue to be announced as even more businesses are attracted to the area.


E d m o n t o n I m p a c t e d N e i g h b o u r h o o d s

Homes closest to the stadium will see the largest price increase, which will diminish gradually with distance until disappearing around five kilometres.

Distance Impact Neighborhoods

<1 km

1-2 km

2-4 km

Based on research, homes in these neighbourhoods will see the largest price increase

(as high as 7.5%), provided there is adequate parking for fans

Research shows homes within these neighbourhoods will see up to a 3.5% positive

price increase

Homes in these neighbourhoods may see a slight price increase

Downtown Edmonton, Central McDougall

Boyle Street, Riverdale, Oliver, Rossdale, Queen Mary Park, McCauley,

North Central Edmonton

River Valley Victoria, Cloverdale, River Valley Waterdale, Strathearn, Mill Creek Ravine, River Valley Riverside, Strathcona, Bonnie Doon, Garneau, South Central Edmonton,

Windsor Park, Glenora, Westmount, Prince Rupert, Inglewood, Alberta Avenue,

Cromdale, Parkdale

Central McDougall


Tim Hortons Field is a multi-purpose stadium in downtown Hamilton that opened to the public in September 2014. The stadium precinct runs from Main Street East to the railway tracks north of Barton Street East and from Sherman to Glendale. The stadium hosts the home games of the Tiger-Cats, Hamilton’s CFL team and was the soccer venue for the 2015 Pan American Games. After years of debate, the city’s new stadium was built on the grounds of the aging Ivor Wynne Stadium, replacing the old stadium with a newer, sleeker version. Many view the new stadium as simply a “fix-up for Ivor Wynne31” and question if it will significantly impact the surrounding area at all.

Tim Horton’s Field certainly has some challenges to overcome. The stadium is not located in the downtown core of the city, and is therefore removed from easy access to public transit32. The nearest GO Train station, West Harbour, is a 10-minute car ride or 20-minute bus ride. The stadium also offers limited parking for visitors, which may lead to traffic congestion on game days as people attempt to find parking off site. In the case of the Max-Schmeling Arena in Berlin, scarcity of parking surrounding the arena adversely impacted residential property prices33. The city knows that building a new sporting venue is not enough, and continues to move forward on projects in the stadium precinct. To this end, the city recently decommissioned and demolished nearby Scott Park Arena in order to create the Bernie Morelli Recreation Centre, which will include pools, multi-purpose rooms, a gym, as well as a seniors’ centre. The 12-acre former Dominion Glass site on Lloyd Street has also been decommissioned and will be turned into a new community outdoor recreation space, including the new Brian Timmis Soccer Stadium, with an artificial turf field34.

Tim Hortons Field - Hamilton, ON


The city would like to see a mix of commercial, retail, and residential buildings around the precinct. The vision also includes more public spaces, such as a spray park and skating rink, public parks, pedestrian corridors (including the possible closing of Cannon Street East between Balsam Avenue North and Melrose Avenue North for special events), and improved transit links. None of this is a formalized plan and is not currently in the city’s budget, but the city’s neighbourhood Development Director, Paul Johnson, says the pieces are beginning to fall into place.

Since the stadium is not located within the Hamilton’s Central Business District, the city may have to provide incentives in order to attract shops and restaurants to the area. Johnson says the city has begun to put together a plan to offer businesses financial incentives to locate within the precinct, similar to the grants and tax breaks for businesses looking to locate downtown. However, it may be a while before the incentives are approved, as the province requires studies to back up the rationale for offering an incentive35.

The stadium could be a catalyst for change in Hamilton, transforming the area into a major retail and entertainment district, but only time will tell. The stadium on its own will not be a catalyst just because it’s new. Professional sports facilities see the greatest increase in real estate values when they are properly integrated into an entertainment district and the overall surrounding community. It’s important to remember that a facility located outside the downtown core of a city that is not connected to any other economic development activities will still increase residential property values around the facility, but this increase will not be as dramatic.


H a m i l t o n I m p a c t e d N e i g h b o u r h o o d s



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Stipley, Gibson

Gibson, St. Clair, Crown Point East, Lansdale, Delta West, Delta East, International Village,

Barton Village

Bartonville, Stinson, Homeside, Normanhurst, Parkview West, North End, North End East, North End West, Beasley, Central Hamilton,

Durand, Centremount, East Hamilton, Raleigh, Burkholme, Sunninghill, Sherwood, Rosedale, Huntington, Macassa, Hampton Heights, Inch Park, Hill Park, Crown Point

East, Crown Point West, Blakeley


The City of Calgary is currently served by the Scotiabank Saddledome (home to the NHL’s Calgary Flames), located on the Stampede grounds, and McMahon Stadium (home to the CFL’s Calgary Stampeders), located near the University of Calgary. However, the Calgary Sports & Entertainment Corporation recently unveiled plans for a $900 million arena and entertainment district in Calgary’s West Village that would replace both of these aging venues. Spanning several blocks near the Bow River, the complex would include a a 20,000-seat event centre for NHL hockey games and concerts, a multi-sport field house that would house a FIFA regulation soccer pitch and a CFL regulation football field, as well as a 400-metre track “in a single configurable space36.”

The stadium project is proposed for a tract of land that is currently owned by the city in the community of Sunalta, near an existing Greyhound bus station, two auto dealerships (which have demolition clauses in their leases), and the newly opened Sunalta LRT station37.

CalgaryNEXT is expected to be the catalyst to realize the vision of the City of Calgary’s West Village Area Regional Plan (ARP). The project is still in the early planning stages, but Ken King, CEO of the Calgary Sports and Entertainment Corporation, said he would like to see a range of retail offered to commuters as they walk from Sunalta station towards the stadiums. Project planners are also toying with the idea of including residential developments within the proposed 100-acre project in support of the “live, work, play” neighbourhood concept38. Once completed, it is hoped that the stadium district will be a predestrian-oriented, mixed-use community adjacent to a “revitalized Bow River pathway and park system39.”

CalgaryNEXT - Calgary, AB


The project has some hurdles to overcome before it can become a reality.

The proposed financing plan for CalgaryNEXT’s $900-million price-tag would see the Calgary Sports and Entertainment Corporation providing $200 million for the project, with ticket tax funding an additional $250 million. A Community Revitalization Levy for Calgary’s West Village should fund another $240 million, while the $200-million cost to construct the fieldhouse would be up to the City of Calgary. A fieldhouse is currently listed as one of the city’s top recreation priorities, but the city says there is currently no funding in place for it40.

The site is also currently considered one of the country’s largest urban brownfields. Home to the Canada Creosote Company from 1924 to the mid-1960s, creosote, and other preservatives that were used to treat lumber have contaminated the site. The project’s $900 million price-tag does not include the cost of remediating the site, which could cost between $50-$300 million. Currently, there is no clear answer as to who is expected to pick up the tab. King believes it will take a group effort to clean up the land and would like to see all levels of government get involved in this project41.

Concerns have also been raised as to whether or not it is the best idea to locate the stadiums so close to the water’s edge, given that the communities on the north side of the Bow River flooded in 2013. King says the land is “safe ground” compared to the Stampede grounds, which were heavily damaged during the flooding in 201342.

Many discussions will be taking place as funding is discussed and the city decides whether or not the project is viable. As Mary Moran, CEO of the Calgary Economic Development says, “We need to look at our larger objective, and create a 10-year economic strategy about the entire future of the downtown43.”


C a l g a r y I m p a c t e d N e i g h b o u r h o o d s



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Westmount, Downtown West End, Sunalta,

West Hillhurst, Upper Hillhurst, Hillhurst, Sunnyside, Eau Claire, Scarboro,

Shaganappi, Lower Mount Royal, Upper Mount Royal, Bankview, Beltine

Hounsfield Heights – Briar Hill, Rosedale, Spruce Cliff, Crescent Heights, Parkdale,

Capitol Hill, St Andrews Heights, Point McKay, Balmoral, Mount Pleasant,

Downtown Edmonton, East Village, Victoria Park, Cliff Bungalow, Grandview, Erlton,

Mission, Rideau Park, Roxboro, Elbow Park, Burnsland, Altadore, South Calgary, Rutland

Park, Glengarry, Killarney, Rosscarrock, Wildwood


Originally designed for the 1986 World’s Fair, BC Place is a 54,000-seat multi-purpose stadium located on the north side of False Creek that is currently the home of the CFL’s BC Lions and the MLS’s Vancouver Whitecaps FC, as well as the BC Sports Hall of Fame. The stadium also served as the main stadium for the 2010 Winter Olympics and was one of the stadiums in which the 2015 FIFA Women’s World Cup was played. Following the 2010 Winter Olympics, BC Place underwent an extensive revitalization, including the replacement of the old inflatable roof with a retractable roof supported by cables. After the redesign, BC Place was honoured with several awards, including Project of the Year for the 2012 International Stadium Business Awards and the National Council of Structural Engineers Associations’ 2012 Outstanding Project Award in the Forensic/Renovation/Retrofit/Rehabilitation Structures category.

Rogers Arena is an 18,630-seat indoor arena that was constructed adjacent to BC Place in 1995. The arena is currently the home of the NHL’s Vancouver Canucks and hosted the ice hockey events at the 2010 Winter Olympics. With good acoustics, the arena also doubles as one of the city’s largest concert venues.

Vancouver is fortunate to have two world-class stadium facilities located across Griffiths Way from each other in the heart of the city’s downtown core. The sites also connect well with local transportation networks, with direct access to the city’s SkyTrain lines and several bus routes. The central location and access has helped turn both BC Place and Rogers Arena into facilities that are used year-round for events and concerts. However, while sporting and cultural events like the Stanley Cup playoffs or Cirque du Soleil certainly draw large crowds, the city could do more to ensure fans stick around after these events are finished.

BC Place & Rogers Arena - Vancouver, BC

Photo Credit: Brendon Hunter


After three decades, change is in the air as Vancouver’s stadium district is about to be transformed. In June 2015, the Aquilini Group opened the first of a three-tower project adjacent to Rogers Arena. The 26-storey Aquilini Centre West is a mixed-use building with 187 market rental apartments, 114,000 square feet of office space, and 50,000 square feet of retail space. Construction is currently underway on the south tower, which will hold 166,000 square feet of residential space, and construction on the east tower should begin over the next couple of years44.

Concord Pacific is working on False Creek Central, a $1 billion development plan to add eight buildings, with 90,000 square feet of commercial space and 1,400 condominiums, to the northern end of Cambie Bridge. A plaza will run underneath the Cambie Bridge and offer a pedestrian link between the buildings45. A new $600 million casino (to replace the Edgewater Casino) and entertainment complex that will be located adjacent to BC Place is also in the works. In addition to the casino, the 775,000 square foot Park Vancouver project will include two luxury hotels, conference and event space, restaurants, a spa, gym, retail space, and 1,000 new parking stalls. Construction on the project is expected to be completed by the end of 201646.

The city is also toying with the idea of removing the Dunsmuir and Georgia Street viaducts, and replacing them with a new at-grade Pacific Boulevard and Georgia Street ramp. The viaducts currently act as a barrier, cutting off surrounding neighbourhoods from the beautiful False Creek waterfront and downtown Vancouver. The removal of the viaducts would free up acres of land and allow the city to create better access between False Creek and Stanley Park. The city’s general manager of planning and development services envisions the creation of a boardwalk filled with a ‘diverse array of restaurants and boutique retail47.” There are also plans to create a nine-acre park along the edge of the Concord Pacific lands, tying into the existing Creekside Park48.

Research is clear that the neighbourhoods that experience the greatest increase in economic activity from new stadium construction did so because the construction also included surrounding retail, commercial, and entertainment spaces. For Vancouver’s stadium district to reach its full potential, construction needs to include appealing architecture, community plazas, and park landscapes, something the city has been lacking for the past 30 years. The removal of the viaducts would be a huge bonus, creating new opportunities for waterfront development and public amenities and improving accessibility between existing neighbourhoods. In 10 years, Vancouver’s revitalized stadium district could be one of the most lively and sought-after communities in the city.


It’s important to remember that the majority of these projects are in the planning stages and do not yet have approval to proceed. This project emphasizes the importance of waiting until the shovel has actually hit the dirt on a project before deciding to invest in the area.

V a n c o u v e r I m p a c t e d N e i g h b o u r h o o d s

Although there are many other factors to consider in Vancouver during a housing boom, homes closest to the stadium will see the largest price increase, which will diminish gradually with distance until disappearing around five kilometres.


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Yaletown, Downtown Vancouver, Gastown, Central Vancouver

Fairview, Granville Island, Strathcona, Davie Village, West End, Coal Harbour, Downtown

Eastside

Mount Pleasant, Kits Point, Kitsilano, South Cambie, Grandview-Woodland


F o o t n o t e s1 Campbell, Don R. (2005) Real Estate Investing in Canada ISBN 0-470-83588-5 John Wiley & Sons Publishers: Toronto.2 Feng, X., and Humphreys, B. (August 2008). Assessing the Economic Impact of Sports Facilities on Residential\Property Values: A Spatial Hedonic Approach. Retrieved from http://college.holycross.edu/RePEc/spe/FengHumphreys_PropertyValues.pdf3 Doward, J. (1 May 2011). New football stadiums good for house prices, economists find. The Guardian. Retrieved from http://www.theguardian.com/business/2011/may/01/stadium-house-prices4 Feng, X., and Humphreys, B. (August 2008). Assessing the Economic Impact of Sports Facilities on Residential Property Values: A Spatial Hedonic Approach. Retrieved from http://college.holycross.edu/RePEc/spe/FengHumphreys_PropertyValues.pdf5 Feng, X., and Humphreys, B. (August 2008). Assessing the Economic Impact of Sports Facilities on Residential Property Values: A Spatial Hedonic Approach. Retrieved from http://college.holycross.edu/RePEc/spe/FengHumphreys_PropertyValues.pdf 6 Ahlfedt, Gabriel M. and Maenning, Wolfgang (2008). Impact of sports arenas on land values: evidence from Berlin. Annal of Regional Science. Issn 1432-0592. http://eprints.lse.ac.uk/25512/1/Impact_of_sports_arenas_on_land_values_%28LSERO_version%29.pdf7 Doward, J. (1 May 2011). New football stadiums good for house prices, economists find. The Guardian. Retrieved from http://www.theguardian.com/business/2011/may/01/stadium-house-prices 8 Ibid.9 Carlino, GA and Coulson, N.E. (2004) “Compensating Differentials and the Social Benefits of NFL,” Journal of Urban Economics 56(1): pp. 25-50. Retrieved from http://www.researchgate.net/publication/4891051_Compensating_differentials_and_the_social_benefits_of_the_NFL 10 Ibid.11 Smersh, G.T. & M.T. Smith. (2000). “Accessibility Changes and Urban House Price Appreciation: A Constrained Optimization Approach to Determining Distance Effects” in Journal of Housing Economics, Vol. 9, No. 3, pp. 187–196. 12 Kolko, J. (March 29, 2013). How baseball stadiums drive housing costs. Citylab. Retrieved from http://www.citylab.com/housing/2013/03/how-baseball-stadiums-drive-housing-costs/5124/ 13 Ibid.14 Charles C. Tu. “How Does a New Sports Stadium Affect Housing Values? The Case of FedEx Field” Land Economics Vol. 81, No. 3 (Aug., 2005), pp. 379-395 http://www.jstor.org/stable/4129692?&seq=1#page_scan_tab_contents15 Feng, X., and Humphreys, B. (August 2008). Assessing the Economic Impact of Sports Facilities on Residential Property Values: A Spatial Hedonic Approach. Retrieved from http://college.holycross.edu/RePEc/spe/FengHumphreys_PropertyValues.pdf16 Ahlfedt, Gabriel M. and Maenning, Wolfgang (2008). Impact of sports arenas on land values: evidence from Berlin. Annal of Regional Sci-ence. Issn 1432-0592. http://eprints.lse.ac.uk/25512/1/Impact_of_sports_arenas_on_land_values_%28LSERO_version%29.pdf17 Herron, J. (February 1, 2014). The stadium stimulus. The Real Deal. Retrieved from http://therealdeal.com/issues_articles/the-stadium-stimulus/ 18 Ibid.19 Feng, X., and Humphreys, B. (August 2008). Assessing the Economic Impact of Sports Facilities on Residential Property Values: A Spatial Hedonic Approach. Retrieved from http://college.holycross.edu/RePEc/spe/FengHumphreys_PropertyValues.pdf20 Campbell, Don R. (2005) Real Estate Investing in Canada ISBN 0-470-83588-5 John Wiley & Sons Publishers: Toronto.21 Diaz, R. (n.d.) Impacts of Rail Transit on Property Values. www.apta.com/research/info/briefings/documents/diaz.pdf. 22 Palmquist, R. (1980). Impact of Highway Improvements on Property Values in Washington, US Department of Transportation, Federal High-way Administration.23 Ahlfedt, Gabriel M. and Maenning, Wolfgang (2008). Impact of sports arenas on land values: evidence from Berlin. Annal of Regional Sci-ence. Issn 1432-0592. http://eprints.lse.ac.uk/25512/1/Impact_of_sports_arenas_on_land_values_%28LSERO_version%29.pdf24 Kolko, J. (March 29, 2013). How baseball stadiums drive housing costs. Citylab. Retrieved from http://www.citylab.com/housing/2013/03/how-baseball-stadiums-drive-housing-costs/5124/25 Salz, A. (June 2, 2014). Edmonton media get sneak peek at downtown arena construction site. Edmonton Sun. Retrieved from http://www.edmontonsun.com/2014/06/02/edmonton-media-get-sneak-peek-at-downtown-arena-construction-site 26 City of Edmonton. (2010). Capital city downtown plan. Retrieved from http://www.edmonton.ca/go_downtown/documents/PDF/Capital_City_Downtown_Plan_May_27_2010.pdf 27 Ahlfedt, Gabriel M. and Maenning, Wolfgang (2008). Impact of sports arenas on land values: evidence from Berlin. Annal of Regional Sci-ence. Issn 1432-0592. http://eprints.lse.ac.uk/25512/1/Impact_of_sports_arenas_on_land_values_%28LSERO_version%29.pdf28 City of Edmonton. (2010). Capital city downtown plan. Retrieved from http://www.edmonton.ca/go_downtown/documents/PDF/Capital_City_Downtown_Plan_May_27_2010.pdf29 City of Edmonton. (2015). Ice district. Retrieved from http://icedistrict.com/ 30 Tumilty, R. (December 7, 2014). Edmonton seeing $2.5 billion in downtown development connected to new arena. Metro News. Retrieved from http://www.metronews.ca/news/edmonton/2014/12/08/edmonton-seeing-2-5-billion-in-downtown-development-connected-to-new-arena.html31 Perkins, D. (January 11, 2011). Hamilton stadium debate one big headache. Toronto Star. Retrieved from http://www.thestar.com/sports/foot-ball/2011/01/14/perkins_hamilton_stadium_debate_one_big_headache.html 32 Fitz-Gerald, S. (July 24, 2014). Troubling Account of Ivor Wynne’s replacement. Financial Post. Retrieved from http://news.nationalpost.com/sports/cfl/the-troubling-account-of-ivor-wynnes-replacement-stadium-and-legacy-of-the-pan-am-games 33 Ibid.34 City of Hamilton. (March 25, 2015). Hamilton stadium precinct update. Retrieved from https://www.hamilton.ca/sites/default/files/media/brows-er/2015-03-26/hamilton_stadium_precinct_update_pan_am_presentation_march_25_2015.pdf 35 MacLeod, M. (August 30, 2014). Does a stadium make a city? The Hamilton Spectator. Retrieved from http://www.thespec.com/news-story/4805941-does-a-stadium-make-a-city-/ 36 CalgaryNEXT. (2015). Retrieved from http://www.calgarynext.com/multisport-fieldhouse-stadium.php 37 Klingbeil, A. (August 18, 2015). Flames reveal details of $890M downtown arena-stadium plan. Calgary Herald. Retrieved from http://calgary-herald.com/sports/hockey/nhl/calgary-flames/flames-reveal-details-of-900m-downtown-arena-stadium-plan38 Howell, T. (September 4, 2015). Flames to meet with stakeholders to discusses viability of CalgaryNEXT proposal. Calgary Herald. Retrieved


from http://calgaryherald.com/news/local-news/flames-to-meet-with-stakeholders-to-discusses-viability-of-calgarynext-proposal 39 CalgaryNEXT. (2015). About CalgaryNEXT. Retrieved from http://www.calgarynext.com/about-calgary-next.php 40 Stark, E. (August 18, 2015). Five questions about CalgaryNEXT. Calgary Herald. Retrieved from http://calgaryherald.com/news/local-news/five-questions-about-calgarynext41 Klingbeil, A. (August 18, 2015). Flames reveal details of $890M downtown arena-stadium plan. Calgary Herald. Retrieved from http://calgary-herald.com/sports/hockey/nhl/calgary-flames/flames-reveal-details-of-900m-downtown-arena-stadium-plan42 Stark, E. (August 18, 2015). Five questions about CalgaryNEXT. Calgary Herald. Retrieved from http://calgaryherald.com/news/local-news/five-questions-about-calgarynext 43 Howell, T. (September 4, 2015). Flames to meet with stakeholders to discusses viability of CalgaryNEXT proposal. Calgary Herald. Retrieved from http://calgaryherald.com/news/local-news/flames-to-meet-with-stakeholders-to-discusses-viability-of-calgarynext-proposal44 Duggan, E. (July 14, 2015). Vancouver’s booming stadium district gets ‘landscaped with buildings’. Vancouver Sun. Retrieved from http://www.vancouversun.com/business/commercial-real-estate/Vancouver+booming+stadium+district+gets+landscaped+with+buildings/11213663/story.html#ixzz3lSeVuQSK45 Boyce, S.M. (July 28, 2015). What’s Happening in Vancouver’s “Entertainment District” Crosstown? REw.ca. Retrieved from http://www.rew.ca/news/what-s-happening-in-vancouver-s-entertainment-district-crosstown-1.2014403#sthash.MqhcMMnc.zbEjNE2d.dpuf 46 Ibid.46 Ibid.47 Ibid.

REIN Stadium Report - October 2015

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Transcript of REIN Stadium Report - October 2015