the economic impact of the mohegan sun arena at...

The Economic Impact of theMohegan Sun Arena at Casey Plaza

May 2015

The Economic Impact of the Mohegan Sun Arena at Casey Plaza

To:

Donna M. Cupinski, Chairwoman

Luzerne County Convention Center Authority 255 Highland Park Boulevard Wilkes-Barre, PA 18702-6769

By:

Steven N. Zaricki, Research & Information Manager Northeastern Pennsylvania Alliance

1151 Oak Street Pittston, PA 18640-3726

Phone: 570.655.5581 or 866.758.1929

Fax: 570.654.5137 Email: [email protected]

May 2015


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Table of Contents

List of Tables ...................................................................................................................................... iii Executive Summary ............................................................................................................................. 1 About the Northeastern Pennsylvania Alliance.................................................................................... 4

Economic Impact Analysis Team ..................................................................................................... 4 About the Mohegan Sun Arena at Casey Plaza .................................................................................... 6 Economic Impact Modeling ................................................................................................................. 7 Assumptions ......................................................................................................................................... 8 Definition of Impact Regions ............................................................................................................. 11 Financial and Visitation Data ............................................................................................................. 13

Payroll Expenses during 2013 ........................................................................................................ 13 Arena Operating Expenses during 2013 ......................................................................................... 15 Hockey Team Operations ............................................................................................................... 17 Total Operation ............................................................................................................................... 19 Visitation ........................................................................................................................................ 21 Visitation by Event Attendees ........................................................................................................ 21

Number of Visitors for Hockey ................................................................................................... 21 Number of Visitors for Concerts, and Entertainment and Family Shows .................................. 22 Visitor Spending ......................................................................................................................... 22 Family, Entertainment and Trade Shows, Concerts and Graduations ...................................... 23 Day Hockey Visitation ................................................................................................................ 24 Night Hockey Visitation ............................................................................................................. 26 Day Concert Visitation ............................................................................................................... 28 Night Concert Visitation ............................................................................................................. 30 Day Entertainment Show Visitation ........................................................................................... 32 Night Entertainment Show Visitation ......................................................................................... 34 Day Family Show Visitation ....................................................................................................... 36 Night Family Show Visitation .................................................................................................... 38 Visitation from Religious Conventions ....................................................................................... 40 Visitation from Graduations ....................................................................................................... 47 Visitation from the Northeastern Pennsylvania Home and Garden Show ................................. 49 Total Visitation by Event Attendees ........................................................................................... 51

Visitation by Performers, Exhibitors and Visiting Hockey Teams ................................................ 53 Performers who Travel by Bus and Dine at a Restaurant ......................................................... 54 Performers who Travel by Bus and Dine at the Arena .............................................................. 56 Performers who Travel by Bus, Have Additional Trailers and Dine at the Arena .................... 58


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Performers who Stay in a Hotel and Dine at a Restaurant ........................................................ 60 Performers who Stay in a Hotel and Dine at the Arena ............................................................. 62 Performers who Travel by Train and Dine on the Train ........................................................... 64 Northeastern Pennsylvania Home and Garden Show ................................................................ 66 Total Spending by Performers and Exhibitors at Trade Shows ................................................. 68 Visiting Hockey Team Expenditures .......................................................................................... 70 Total Estimated Impact from the Spending by Performers, Trade Show Exhibitors and Members of the Visiting Hockey Team ....................................................................................... 72

Total Estimated Impact from Visitation ......................................................................................... 74 Total Estimated Impact from Operation and Visitation ................................................................. 76 Construction of the New Savory Concessions and Bar during 2014 and 2015 .............................. 78 Operation of the New Savory Concessions and Bar during 2016 .................................................. 80

Conclusion .......................................................................................................................................... 82


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List of Tables

Table 1. Zip Codes within a 15-Mile Radius of Mohegan Sun Arena at Casey Plaza ...................... 11 Table 2. Estimated Impact on the 15-Mile Radius Regional Economy from Payroll Expenses during 2013 (2013 Dollars) ........................................................................................................................... 13 Table 3. Estimated Tax Impact from Payroll Expenses during 2013 (2013 Dollars) ........................ 14 Table 4. Estimated Impact on the 15-Mile Radius Region Economy from Arena Operating Expenses during 2013 (2013 Dollars) ................................................................................................................ 15 Table 5. Estimated Tax Impact from Arena Operating Expenses during 2013 (2013 Dollars) ......... 16 Table 6. Estimated Impact on the 15-Mile Radius Region Economy from the Operation of the Wilkes-Barre/Scranton Penguins during 2013 (2013 Dollars) .......................................................... 17 Table 7. Estimated Tax Impact from the Operation of the Wilkes-Barre/Scranton Penguins during 2013 (2013 Dollars) ........................................................................................................................... 18 Table 8. Estimated Impact on the 15-Mile Radius Region Economy from Total Operation during 2013 (2013 Dollars) ........................................................................................................................... 19 Table 9. Estimated Tax Impact from Total Operation during 2013 (2013 Dollars) .......................... 20 Table 10. Visitation Numbers Used in Estimating the Impact on the 15-Mile Radius Regional Economy during 2013 ........................................................................................................................ 22 Table 11. Spectator Spending Data Used in Estimating the Impact on the 15-Mile Radius Regional Economy during 2013 (2013 Dollars) ................................................................................................ 23 Table 12. Estimated Impact on the 15-Mile Radius Regional Economy from Day Hockey Visitation Expenditures during 2013 (2013 Dollars) .......................................................................................... 24 Table 13. Estimated Tax Impact from Day Hockey Visitation Expenditures during 2013 (2013 Dollars) ............................................................................................................................................... 25 Table 14. Estimated Impact on the 15-Mile Radius Regional Economy from Night Hockey Visitation Expenditures during 2013 (2013 Dollars) ......................................................................... 26 Table 15. Estimated Tax Impact from Night Hockey Visitation Expenditures during 2013 (2013 Dollars) ............................................................................................................................................... 27 Table 16. Estimated Impact on the 15-Mile Radius Regional Economy from Day Concert Visitation Expenditures during 2013 (2013 Dollars) .......................................................................................... 28


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Table 17. Estimated Tax Impact from Day Concert Visitation Expenditures during 2013 (2013 Dollars) ............................................................................................................................................... 29 Table 18. Estimated Impact on the 15-Mile Radius Regional Economy from Night Concert Visitation Expenditures during 2013 (2013 Dollars) ......................................................................... 30 Table 19. Estimated Tax Impact from Night Concert Visitation Expenditures during 2013 (2013 Dollars) ............................................................................................................................................... 31 Table 20. Estimated Impact on the 15-Mile Radius Regional Economy from Day Entertainment Show Visitation Expenditures during 2013 (2013 Dollars) ............................................................... 32 Table 21. Estimated Tax Impact from Day Entertainment Show Visitation Expenditures during 2013 (2013 Dollars) ........................................................................................................................... 33 Table 22. Estimated Impact on the 15-Mile Radius Regional Economy from Night Entertainment Show Visitation Expenditures during 2013 (2013 Dollars) ............................................................... 34 Table 23. Estimated Tax Impact from Night Entertainment Show Visitation Expenditures during 2013 (2013 Dollars) ........................................................................................................................... 35 Table 24. Estimated Impact on the 15-Mile Radius Regional Economy from Day Family Show Visitation Expenditures during 2013 (2013 Dollars) ......................................................................... 36 Table 25. Estimated Tax Impact from Day Family Show Visitation Expenditures during 2013 (2013 Dollars) ............................................................................................................................................... 37 Table 26. Estimated Impact on the 15-Mile Radius Regional Economy from Night Family Show Visitation Expenditures during 2013 (2013 Dollars) ......................................................................... 38 Table 27. Estimated Tax Impact from Night Family Show Visitation Expenditures during 2013 (2013 Dollars) .................................................................................................................................... 39 Table 28. Spending Data Used in Estimating the Impact from the Jehovah’s Witnesses Convention and the Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America (ELCA) Convention on the 15-Mile Radius Regional Economy during 2013 ................................................ 40 Table 29. Estimated Impact on the 15-Mile Radius Regional Economy from the Jehovah’s Witnesses Convention during 2013 (2013 Dollars) ........................................................................... 41 Table 30. Estimated Tax Impact from the Jehovah’s Witnesses Convention during 2013 (2013 Dollars) ............................................................................................................................................... 42 Table 31. Estimated Impact on the 15-Mile Radius Regional Economy from the Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America Convention during 2013 (2013 Dollars) ............................................................................................................................................... 43


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Table 32. Estimated Tax Impact from the Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America Convention during 2013 (2013 Dollars) ............................................. 44 Table 33. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Attendees at the Jehovah’s Witnesses and Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America Conventions during 2013 (2013 Dollars) ............................................ 45 Table 34. Estimated Tax Impact from the Spending by Attendees at the Jehovah’s Witnesses and Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America Conventions during 2013 (2013 Dollars) ................................................................................................................ 46 Table 35. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by People who Attend Graduations during 2013 (2013 Dollars) ........................................................................ 47 Table 36. Estimated Tax Impact from the Spending by People who Attend Graduations during 2013 (2013 Dollars) .................................................................................................................................... 48 Table 37. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by People who Attend the Northeastern Pennsylvania Home and Garden Show during 2013 (2013 Dollars) .. 49 Table 38. Estimated Tax Impact from the Spending by People who Attend the Northeastern Pennsylvania Home and Garden Show during 2013 (2013 Dollars) ................................................. 50 Table 39. Estimated Impact on the 15-Mile Radius Regional Economy from Total Event Attendee Spending during 2013 (2013 Dollars) ................................................................................................ 51 Table 40. Estimated Tax Impact from Total Event Attendee Spending during 2013 (2013 Dollars) 52 Table 41. Performer and Exhibitor Per Person Spending Data Used in Estimating the Impact from Family, Entertainment and Trade Shows, and Concerts during 2013 (2013 Dollars) ....................... 53 Table 42. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Performers who Travel by Bus and Dine at a Restaurant (2013 Dollars) .......................................... 54 Table 43. Estimated Tax Impact from the Spending by Performers who Travel by Bus and Dine at a Restaurant (2013 Dollars) .................................................................................................................. 55 Table 44. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Performers who Travel by Bus and Dine at the Arena (2013 Dollars) .............................................. 56 Table 45. Estimated Tax Impact from the Spending by Performers who Travel by Bus and Dine at the Arena (2013 Dollars) .................................................................................................................... 57 Table 46. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Performers who Travel by Bus, Have Additional Trailers and Dine at the Arena (2013 Dollars) .... 58


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Table 47. Estimated Tax Impact from Performers who Travel by Bus, Have Additional Trailers and Dine at the Arena (2013 Dollars) ....................................................................................................... 59 Table 48. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Performers who Stay in a Hotel and Dine at a Restaurant (2013 Dollars) ......................................... 60 Table 49. Estimated Tax Impact from the Spending by Performers who Stay in a Hotel and Dine at a Restaurant (2013 Dollars) ................................................................................................................ 61 Table 50. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Performers who Stay in a Hotel and Dine at the Arena (2013 Dollars) ............................................. 62 Table 51. Estimated Tax Impact from the Spending by Performers who Stay in a Hotel and Dine at the Arena (2013 Dollars) .................................................................................................................... 63 Table 52. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Performers who Travel by Train and Dine on the Train (2013 Dollars) ............................................ 64 Table 53. Estimated Tax Impact from the Spending by Performers who Travel by Train and Dine on the Train (2013 Dollars) ..................................................................................................................... 65 Table 54. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Non-Local Vendors at the Northeastern Pennsylvania Home and Garden Show (2013 Dollars) .............. 66 Table 55. Estimated Tax Impact from the Spending by Non-Local Vendors at the Northeastern Pennsylvania Home and Garden Show (2013 Dollars) ...................................................................... 67 Table 56. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Performers and Exhibitors at Trade Shows during 2013 during 2013 (2013 Dollars)....................... 68 Table 57. Estimated Tax Impact from the Spending by Performers and Exhibitors at Trade Shows during 2013 (2013 Dollars) ................................................................................................................ 69 Table 58. Estimated Impact on the 15-Mile Radius Regional Economy from Visiting Hockey Team Expenditures (2013 Dollars) .............................................................................................................. 70 Table 59. Estimated Tax Impact from Visiting Hockey Team Expenditures (2013 Dollars) ............ 71 Table 60. Total Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by People who are Performers, Exhibitors at Trade Shows or Members of the Visiting Hockey Team during 2013 (2013 Dollars) ................................................................................................................ 72 Table 61. Total Estimated Tax Impact from the Spending by Performers, Exhibitors at Trade Shows or Members of the Visiting Hockey Team during 2013 (2013 Dollars) ............................................ 73


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Table 62. Total Estimated Impact on the 15-Mile Radius Regional Economy from Visitation during 2013 (2013 Dollars) ........................................................................................................................... 74 Table 63. Total Estimated Tax Impact from Visitation during 2013 (2013 Dollars) ......................... 75 Table 64. Total Estimated Impact on a the 15-Mile Radius Regional Economy from Operation and Visitation during 2013 (2013 Dollars) ............................................................................................... 76 Table 65. Total Estimated Tax Impact from Operation and Visitation during 2013 (2013 Dollars) . 77 Table 66. Data Used in Estimating the Impact on the Pennsylvania Economy from the Construction of the New Savory Concessions and Bar during 2014 and 2015 ....................................................... 78 Table 67. Estimated Impact on the Pennsylvania Economy from the Construction of the New Savory Concessions and Bar during 2014 and 2015 (Standardized Dollars) .................................... 78 Table 68. Estimated Tax Impact from the Construction of the New Savory Concessions and Bar during 2014 and 2015 (Standardized Dollars) ................................................................................... 79 Table 69. Estimated Impact on the 15-Mile Radius Regional Economy from the Operation of the New Savory Concessions and Bar during 2016 (2016 Dollars) ......................................................... 80 Table 70. Estimated Tax Impact from the Operation of the New Savory Concessions and Bar during 2016 (2016 Dollars) ........................................................................................................................... 81


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Executive Summary

Built on previously mine-scarred land, the Mohegan Sun Arena at Casey Plaza was opened

on November 13, 1999 when the Wilkes-Barre/Scranton Penguins made their home debut with a 4-2 victory over the Kentucky Thoroughblades, who are now the San Jose Barracuda.

The arena has had several names since its opening; it was first called the Northeastern

Pennsylvania Civic Arena before becoming First Union Arena at Casey Plaza and then Wachovia Arena at Casey Plaza, after a bank merger. In January 2010, the naming rights were purchased by Downs Racing, LP and the name of the arena was changed to Mohegan Sun Arena at Casey Plaza.

In its fifteen year history, many hockey games, concerts, entertainment shows, circuses and

trade shows, along with a Women’s National Basketball Association (WNBA) exhibition game, have been held at the arena. On average, ticketed events draw over 360,000 attendees annually. People travel from all over to see these events.

The arena contributes to the regional and state economy in several ways. Workers at the

arena itself and with the hockey team, through their spending of wages, support jobs in other industries. This cycle continues with the workers in other industries spending their earnings on items in additional other industries until the dollar leaks out of the economy. The arena also contributes to the regional economy by purchasing goods and services from local sources that are used in its operation.

Sporting event and entertainment show attendees, who live outside of the impact region,

provide new spending to the economy in terms of purchasing overnight lodging, restaurant meals, gasoline and other items while attending an event. This spending supports jobs in the local economy.

Entertainers, including musicians and their entourages, circus actors and comedians, have

provided shows at the arena over the years. Their spending on lodging; diesel fuel if they travel by bus; restaurant meals; catered food through SAVOR, the catering division of the arena management company, SMG; and in some cases, food purchases from grocery stores, along with purchasing of other items would support jobs in the local economy.

In May 2014, the Board of Directors of the Luzerne County Convention Center Authority

and the SMG Management Team engaged the Northeastern Pennsylvania Alliance to conduct an economic impact analysis of the arena. After several meetings, a scope of work was defined and a contract was executed in September 2014.

This economic impact analysis consists of three distinct scenarios including:

1. The overall impact of the operations of the arena, which includes the impact from visitors traveling from outside the impact region.

2. The impact from the construction and operations of the newly proposed Savory Concessions and Bar, which would be in operation within the arena in 2016.

3. The negative impact that would be evident if the arena did not exist.


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Impact of Operation and Visitation - 2013

The first scenario is the impact from operating the arena and visitor spending in 2013. The

estimated impact is the following:

Total estimated output or economic activity of $62.6 million

Total estimated employment supported of 1,141 jobs, which can be either full-time or part-time

Total estimated labor income of $22.6 million

Total estimated taxes of $9.9 million, which consists of an estimated $5.0 million in federal taxes and an estimated $4.9 million in state and local taxes

Key Assumptions

• It was assumed that 80 percent of the workers at the arena itself who are residents of Lackawanna and Luzerne counties reside in an area that is within 15 miles of the arena. Since the impact region is a 15-mile radius, workers who reside in other counties such as Carbon and Monroe are excluded.

• Visitation spending occurs when the visitor travels from beyond 15 miles to attend an event. Lodging is based on people who reside beyond 50 miles from the arena. This is based on federal government travel guidelines. This does not apply to visitation related to hockey. This is based on the fact that most people would not travel outside the region to see an event because they would have other recreational spending opportunities within the region.

• An assumption was made that the full-time personnel with the Wilkes-Barre/Scranton Penguins reside in the 15-mile radius region year round and that the players reside in the same region from September through May.

• Since it is not known the number of people who travel with performers, some information was gathered from online sources and others were based on assumptions. A list of events was provided by SMG.

Impact from the Construction and Operation of the Newly Proposed Savory Concessions and Bar

The impact from the construction of the new Savory Concessions and Bar on the

Pennsylvania economy is from 2015. The estimated impact is the following:

Total estimated output or economic activity of $7.5 million

Total estimated employment supported of 48 jobs in 2015, which can be either full-time or part-time

Total estimated labor income of $3.0 million

Total estimated taxes of $820,000, which consists of an estimated $560,000 in federal taxes and an estimated $260,000 in state and local taxes


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Key Assumptions

• This impact is at the state level because not all construction materials are available at the county level.

• Due to the changing value of the dollar from year to year, the dollar amounts are presented in standardized dollars, which are set to 2015. The operation of the new Savory Concessions and Bar in 2016 is based on an impact region

that consists of a 15-mile radius from the arena. This impact will occur annually as long as the business is operating. The estimated impact is the following:

Total estimated output or economic activity of $860,000

Total estimated employment supported of 11 jobs, which can be either full-time or part-time

Total estimated labor income of $340,000


Key Assumption

• It was assumed that the workers at the new Savory Concessions and Bar will reside within a 15-mile radius of the arena.

The Negative Impact Due to the Nonexistence of the Arena

If the arena did not exist, some people would choose to travel outside the region to attend an

event, thus reducing family discretionary spending in our regional economy. For example, if someone traveled to another area to see a show, they would spend dollars on gasoline to and from the show, meals at a restaurant, snack foods, souvenirs and depending on distance, an overnight stay, resulting in lost revenue or “leakage” to another region. Furthermore, it is known that the loss would be greater because some people within the 15-mile radius area would travel outside the region to spend discretionary dollars.


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About the Northeastern Pennsylvania Alliance

The Northeastern Pennsylvania Alliance (NEPA Alliance) is a regional multi-county

economic development agency providing leadership, planning, expertise and services to regional and local governments, businesses, institutions and individuals through innovative and beneficial collaborations and partnerships to enhance the economic development and quality of life of the area.

The NEPA Alliance was organized in 1964 by the private sector that saw the need for a

regional approach to economic and community development issues within the region. The NEPA Alliance is now a public/private sector partnership with representation from government and non-governmental private sector organizations. The goal of the NEPA Alliance is to provide a quality menu of programs and valuable services that best match the needs of our partners and add value to our region.

The NEPA Alliance carries out its mission within the counties of Carbon, Lackawanna,

Luzerne, Monroe, Pike, Schuylkill and Wayne, which have a total population of 1,015,692 people (according to estimates provided by the U.S. Census Bureau, July 1, 2014) and covers 4,476 square miles.

The NEPA Alliance is one of seven regional agencies called Local Development Districts

(LDDs). LDDs help coordinate community and economic development activities in the Commonwealth of Pennsylvania.

The NEPA Alliance is guided by a fifty (50) member Board of Directors, headed by Board

Chairperson, Mary Beth Wood, of which forty-five (45) members have voting capabilities. Members of the Board of Directors represent industries, labor, governments, general businesses, professionals and citizens in each of the seven counties that the NEPA Alliance serves.

Jeffrey K. Box, President & CEO of the NEPA Alliance, provides executive leadership

working with state and federal legislators to expand and explore opportunities that will be beneficial for northeastern Pennsylvania.

Economic Impact Analysis Team

The Community Services Division highlights NEPA’s emphasis on community

development, nonprofit assistance, research, telecommunications and energy conservation and efficiency initiatives. The division includes the operation of the Nonprofit & Community Assistance Center and the Research & Information Center that provide valuable services to nonprofits, local governments and businesses.

The division is lead by Kurt Bauman, Vice President Community Services and Executive Director of the Nonprofit & Community Assistance Center. Steve Zaricki, Research & Information Manager, is the lead researcher and technical service provider for Economic Impact Modeling services. Kurt and Steve work as a team to assist clients in the scoping of Economic Impact Analysis projects; Kurt, drawing on his expertise in grant writing, program development and project evaluation; and Steve, utilizing his years of experience in using IMPLAN and other models to help


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determine the impact of economic engines and proposed development initiatives in the region and throughout the Commonwealth. The end result is an analysis that includes the overall impact of current or proposed business/venue/project that could be used to tell the story and develop public support for a project. The analysis can also be used to assist government agencies and elected officials to compare, evaluate and rank viable projects for consideration for relevant aid (grants, loans, rebates, technical services, etc.).

Since August 2002, Steve Zaricki has been the Research & Information Manager at the NEPA Alliance. He has a bachelor’s degree in agricultural and resource economics, with an emphasis in agribusiness management, from the University of Maryland, and a master’s degree in agricultural economics, with a concentration in rural economic development, from West Virginia University. His master’s thesis topic was the economic impact of the, proposed at the time, Canaan Valley National Wildlife Refuge. He has completed additional graduate study beyond the master’s degree in agricultural economics at the University of Kentucky. He has worked at the University of Virginia in its library system and in the Center for Economic and Policy Studies of the Weldon Cooper Center for Public Service. He has received training from Business Retention & Expansion International in its Certified Master Consultant Training Program and is a graduate of the South Carolina Economic Development Institute and the Economic Development Course in Pennsylvania.


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About the Mohegan Sun Arena at Casey Plaza

Mohegan Sun Arena at Casey Plaza is owned by the Luzerne County Convention Center Authority, a government body appointed by Luzerne County. The arena is managed by SMG, the world leader in entertainment and sports facilities management with catering and concessions services provided by SAVOR at Mohegan Sun Arena. The arena opened on November 13, 1999 when the Wilkes-Barre/Scranton Penguins of the American Hockey League made their debut.

Originally called the Northeastern Pennsylvania Civic Arena, the facility became First Union Arena at Casey Plaza when First Union Bank purchased the naming rights. The name changed to Wachovia Arena at Casey Plaza in 2002 after a corporate merger. In January 2010, Downs Racing, LP purchased the naming rights and changed the venue name to Mohegan Sun Arena at Casey Plaza.

The arena’s primary tenant is the Wilkes-Barre/Scranton Penguins hockey team, an

American Hockey League affiliate of the National Hockey League Pittsburgh Penguins. With over 8,000 permanent seats and a capacity of nearly 10,000 for concerts, the arena has

played host to some of the biggest names in entertainment, including Elton John, Cher, Neil Diamond, James Taylor, Carole King, Barry Manilow, Janet Jackson, The Eagles, AC/DC and Simon & Garfunkel.

The above is from the Mohegan Sun Arena website, http://mohegansunarenapa.com/about-

the-arena/.

http://mohegansunarenapa.com/about-the-arena/

http://mohegansunarenapa.com/about-the-arena/


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Economic Impact Modeling

NEPA Alliance uses IMPLAN® for economic impact modeling services.1 IMPLAN®, or Impact

Analysis for Planning, is a software package that was developed by the Department of Applied Economics at the University of Minnesota and the U.S. Forest Service Land Management Planning Unit in Fort Collins, Colorado. Estimated direct, indirect (supplier) and induced (household spending) impacts in terms of the number of jobs, personal income and output, or economic activity, are determined by the model.

The software that was used is Version 3, which is available from IMPLAN Group, LLC of

Huntersville, North Carolina and is well-known in both the economic development professional and academic communities. Data are available at the national, state, county and zip code levels. IMPLAN® has a feature where information can be used for current and future years.

The results include estimates of the direct, indirect and induced impacts from construction, operation

and visitation. Direct impacts consist of permanent jobs, wages and output of the project company itself, construction or tourism. Indirect impacts are the jobs, wages and output created by businesses, which provide goods and services essential to the construction of the project or to the operation of the company. They are also referred to as “supplier” impacts. These businesses range from manufacturers (who make goods) to wholesalers (who deliver goods) to janitorial firms that clean buildings. Induced impacts are spending of wages and salaries by the direct and indirect employees on items such as food, housing, transportation and medical services. This spending creates induced employment in various sectors of the economy. Induced impacts are also commonly referred to as “consumer” impacts. The total impact is the sum of the direct, indirect and induced impacts.

Some measures of economic impact are output, employee compensation, proprietor income, indirect

business taxes, total value added and employment. Employment can be either full-time or part-time jobs. Labor Income is the sum of Employee Compensation and Proprietor Income. According to

IMPLAN Group, LLC, “Proprietor Income consists of payments received by self-employed individuals and unincorporated business owners.” Total Value Added is the sum of Labor Income, Other Property Type Income and Indirect Business Taxes. According to IMPLAN Group, LLC, “Other Property Type Income represents Property Income minus Proprietor Income. It includes corporate profits, capital consumption allowance, payments for rent, dividends, royalties and interest income.” Output, also referred to as sales or economic activity, relates to the gross receipts for goods and services generated by the company’s operations.

In regards to fiscal impact, taxes at the federal and state and local levels are presented.

Unfortunately, the state and local tax impacts are combined and therefore, cannot be dissected. Some of the federal taxes are employee and employer contribution to social security, excise taxes, corporate profits taxes and personal income taxes. Some of the state and local taxes are dividends, employee and employer contribution to social security, sales taxes, property taxes, motor vehicle license fees, personal income taxes and fishing and hunting license fees.

The impacts indicated in this report are estimates and the actual numbers can be higher or

lower than estimated.

1 IMPLAN® is a registered trademark of IMPLAN Group, LLC.


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Assumptions

In this economic impact analysis, some assumptions had to be made and they are indicated

below. Impact Region

• The impact region is based on an October 2003 OmniStats report that contains information about the average

commuting distance by the U.S. Department of Transportation, Bureau of Transportation Statistics. According to the report, the average commuter travels approximately 15 miles one way to get to work.

Arena Payroll

• It was assumed that 80 percent of the workers at the arena itself who are residents of Lackawanna and Luzerne counties reside in an area that is within 15 miles of the arena. Since the impact region is a 15-mile radius, workers who reside in other counties such as Carbon and Monroe are excluded.

Hockey Team Operations

• An assumption was made that the full-time personnel with the Wilkes-Barre/Scranton Penguins reside in the 15-mile radius region year round and that the players reside in the same region from September through May.

• It is realized that members of the hockey team, along with their mascot, “Tux,” participate in charitable events, which provide an economic impact to the region. Due to the unavailability of related data, this impact is not included in the analysis.

General Visitation

• Visitation numbers are based on zip code data from June 2012 Ticketmaster sales, which were generated in June 2014 and provided by SMG. It is realized that there would be additional visitation by patrons who visit the Box Office and the impact from those sales is not included due to survey data being unavailable.

• Visitation spending occurs when the visitor travels from beyond 15 miles to attend an event. Lodging is based on people who reside beyond 50 miles from the arena. This is based on federal government travel guidelines. This does not apply to visitation related to hockey. This is based on the fact that most people would not travel outside the region to see an event because they would have other recreational spending opportunities within the region.

• Assumptions regarding expenditures were made based on the Continental United States (CONUS) Per Diem Rates and on reasonable generalizations. Assumptions were made in regards to whether groups stay in hotels with double occupancy, on buses or on a train, in the case of a circus. In the case of trade shows, assumptions were made in regards to the number of people who are non-local and stay overnight. In regards to food purchases, some groups purchase meals from a restaurant, some purchase meals from the catering facility at the arena and some purchase food from a grocery store and have professional chefs on staff.

• There is no accountability for casuals and time switchers in the analysis. Casuals are people who were already in the community and were there because of other reasons. Time switchers are visitors who were planning a visit to the community and switched their time because of the event that they wanted to attend at the arena.

• This economic impact analysis does not include the spending on tickets, which typically accrues to performers.


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• It is realized that there would be an economic impact from the spending by members of the media who are

from outside the region and travel to the arena to provide coverage of a sporting event or a review of a performer. Due to the lack of a number of press visitors and the lack of spending data, this impact is not presented.

• This economic impact analysis does not include the spending by people who are affiliated with family, entertainment and trade shows, and concerts on food and other supplies that are used in the care of animals or for automotive expenses such as repairs and replacement tires. Also not included is spending by individuals on emergency health care and prescriptions.

Visitation by Event Attendees

• It was assumed that 1 percent of the hockey spectators would stay overnight.

• There were several graduations held at the arena during 2013. Since it is not known how many people attended the ceremonies, some assumptions had to be made. It was assumed that 5 percent of the graduates who were not from Luzerne County would bring 4 guests and purchase a restaurant dinner at $23 per person and gasoline at $5 per person at locations that are within a 5-mile radius of the arena. This applies to the graduation ceremonies of The Commonwealth Medical College, Marywood University and The University of Scranton. Since King’s College and Luzerne County Community College are located in Luzerne County, the resulting impact will be from the college’s themselves and not from the arena.

• An assumption was made that 3,750 people attended the Jehovah’s Witnesses convention on each of two weekends. Based on a Penn State Center for Economic & Community Development study, 97.4 percent of attendees at a religious conference in the Harrisburg area were from outside Cumberland and Dauphin counties. Therefore, that percentage was used in determining that 7,305 people attended the convention from outside the 15-mile radius area.

• As part of their mission, members of the Jehovah’s Witnesses clean the arena. Since the amount spent on cleaning supplies is not known, the economic impact from that purchase cannot be estimated.

• An assumption was made that for the convention of the Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America, 1,000 people attended the convention and 600 people stayed overnight.

Visitation by Event Performers, Trade Show Exhibitors and Members of Opposing Hockey Teams

• Since it is not known the number of people who travel with performers, some information was gathered from online sources and others were based on assumptions. A list of events was provided by SMG.

• Based on a list of events that was provided by SMG, assumptions were made in regards to the number of

people who travel with performers, in most cases.

• Based on a January 25, 2014 article in “The Times Leader” about the 2013 Northeastern Pennsylvania Home and Garden Show, there were 125 vendors. When a 56.6 non-local percent rate from the Pennsylvania Home Show was applied, the result was that 71 vendors were non-local.

• For other trade shows, an assumption was made that there were three non-local booths with 2 people at each booth.


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• During 2013, the Ringling Brothers and Barnum & Bailey Circus presented 5 performances over 4 days at the

arena. The circus travels by train that has a diner-like restaurant, the “Pie Car,” where a professional culinary team prepares meals and several kitchens where employees can prepare meals. An assumption was made that the circus purchases food from local grocery stores at a cost of $40 per person per day with no snack food purchases. To account for any transportation expense between the train and the arena, an assumption was made that there would be a $5 per person expense for gasoline. Another assumption that is related to the circus is that there was no “parking fee” for its train while it is here.

Construction of the New Savory Concessions and Bar

• An assumption was made that the impact region for construction of the new Savory Concessions and Bar to be

Pennsylvania. This is because not all of the construction materials are manufactured within Luzerne County. To account for any purchases of materials from non-Pennsylvania sources, a Local Purchase Percentage was used.

• It was assumed that all of the furniture, fixtures and equipment that will be used in the new Savory Concessions and Bar was not manufactured or purchased from Pennsylvania sources. Consequently, they are not included in the economic impact analysis.

• Due to the changing value of the dollar from year to year, the dollar amounts are presented in standardized

dollars, which are set to 2015.

Operation of the New Savory Concessions and Bar

• It was assumed that the workers at the new Savory Concessions and Bar will reside within a 15-mile radius of the arena.


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Definition of Impact Regions

With the exception of the impact from the construction of Savory Concessions and Bar,

which is on the Pennsylvania economy, all of the impacts are based on a 15-mile radius from the arena. This distance was based on an October 2003 OmniStats report by the U.S. Department of Transportation, Bureau of Transportation Statistics. IMPLAN® data based on zip codes were used in the analysis and a list of zip codes that are within the 15-mile radius of the arena are provided in Table 1.

Table 1. Zip Codes within a 15-Mile Radius of Mohegan Sun Arena at Casey Plaza

Zip Code Place County 18507 MOOSIC LACKAWANNA 18518 OLD FORGE LACKAWANNA 18653 RANSOM LACKAWANNA 18517 SCRANTON LACKAWANNA 18504 SCRANTON LACKAWANNA 18505 SCRANTON LACKAWANNA 18501 SCRANTON LACKAWANNA 18706 ASHLEY LUZERNE 18641 AVOCA LUZERNE 18602 BEAR CREEK LUZERNE 18702 BEAR CREEK TOWNSHIP LUZERNE 18704 COURTDALE LUZERNE 18612 DALLAS LUZERNE 18642 DURYEA LUZERNE 18643 EXETER LUZERNE 18224 FREELAND LUZERNE 18617 GLEN LYON LUZERNE 18618 HARVEYS LAKE LUZERNE 18705 HILLDALE LUZERNE 18640 HUGHESTOWN LUZERNE 18621 HUNLOCK CREEK LUZERNE 18708 JACKSON TOWNSHIP LUZERNE 18651 LARKSVILLE LUZERNE 18627 LEHMAN LUZERNE 18709 LUZERNE LUZERNE 18707 MOUNTAIN TOP LUZERNE 18634 NANTICOKE LUZERNE 18644 PITTSTON LUZERNE 18654 SHAWANESE LUZERNE 18661 WHITE HAVEN LUZERNE 18711 WILKES-BARRE LUZERNE 18766 WILKES-BARRE LUZERNE 18765 WILKES-BARRE LUZERNE


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Zip Code Place County 18764 WILKES-BARRE LUZERNE 18773 WILKES-BARRE LUZERNE 18762 WILKES-BARRE LUZERNE 18710 WILKES-BARRE LUZERNE 18703 WILKES-BARRE LUZERNE 18701 WILKES-BARRE LUZERNE

Source: GetZips.com and FreeMapTools.com


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Financial and Visitation Data

Payroll Expenses during 2013 The economic impact from payroll expenses is based on the number of direct jobs along with the amount of employee compensation and amount of sales. Since there are arena employees who reside in areas that are outside the 15-mile radius of the arena, they are not included in the analysis. However, it is realized that there would be spending by these employees on restaurant meals and gasoline while they are in the region. There are also employees who are part-time stagehands and reside in other parts of Pennsylvania and out of state. Since it is not known which counties in Pennsylvania where they reside and that data are not available for other states, then it is assumed that their entire earnings will be spent outside the seven-county impact region. The employee compensation and number of jobs were provided by SMG.

For the impact from arena payroll, which is based on the number of full-time and part-time employees, and part-time stagehands, along with their compensation, which includes salaries and fringe benefits, an impact region which is the area that is within a 15-mile radius of the arena was used. This information was provided by SMG, the managing company of the arena.

Tables 2 and 3 provide the estimated impact on the 15-mile radius regional economy from

payroll expenses during 2013.

Table 2. Estimated Impact on the 15-Mile Radius Regional Economy from Payroll Expenses during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $939,633 $1,230,765 $581,930 $2,752,328 +Proprietor Income $468,601 $197,732 $77,169 $743,502 =Labor Income $1,408,234 $1,428,497 $659,099 $3,495,830 +Other Property Type Income $806,379 $736,576 $488,882 $2,031,837 +Indirect Business Taxes $933,762 $246,666 $120,238 $1,300,666 =Total Value Added $3,148,375 $2,411,739 $1,268,219 $6,828,333 Output $10,938,167 $4,496,548 $2,003,965 $17,438,680 Employment Supported 507.0 50.6 17.4 574.9 Source: IMPLAN®


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Table 3. Estimated Tax Impact from Payroll Expenses during 2013 (2013 Dollars)

Employee Compensation

Proprietor Income

Indirect Business Tax

Households Corporations Total

Federal Tax Impact Social Ins Tax – Employee Contribution $144,114 $26,902 $171,016 Social Ins Tax – Employer Contribution $187,830 $187,830 Indirect Bus Tax: Excise Taxes $113,085 $113,085 Indirect Bus Tax: Custom Duty $44,833 $44,833 Indirect Bus Tax: Fed Non-Taxes $12,848 $12,848 Corporate Profits Tax $137,915 $137,915 Personal Tax: Income Tax $219,600 $219,600 Total Federal Tax $331,944 $26,902 $170,766 $219,600 $137,915 $887,127 State and Local Tax Impact Dividends $773 $773 Social Ins Tax – Employee Contribution $1,517 $0 $1,517 Social Ins Tax – Employer Contribution $2,983 $2,983 Indirect Bus Tax: Sales Tax $544,615 $544,615 Indirect Bus Tax: Property Tax $482,312 $482,312 Indirect Bus Tax: Motor Vehicle License $9,893 $9,893 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $88,145 $88,145 Indirect Bus Tax: S/L Non-Taxes $4,935 $4,935 Corporate Profits Tax $26,323 $26,323 Personal Tax: Income Tax $70,423 $70,423 Personal Tax: Non-Taxes (Fines – Fees) $11,411 $11,411 Personal Tax: Motor Vehicle License $2,834 $2,834 Personal Tax: Property Taxes $1,295 $1,295 Personal Tax: Other Tax (Fish/Hunt) $1,572 $1,572 Total State and Local Tax $4,500 $0 $1,129,900 $87,535 $27,096 $1,249,031 Grand Total $336,444 $26,902 $1,300,666 $307,135 $165,011 $2,136,158

Source: IMPLAN®


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Arena Operating Expenses during 2013 Based on the 2013 Schedule of Operating Expenses that was provided by the Luzerne County Convention Center Authority, Tables 4 and 5 provide the estimated impact on the 15-mile radius regional economy from arena operation expenses during 2013.

Table 4. Estimated Impact on the 15-Mile Radius Region Economy from Arena Operating Expenses during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $779,426 $265,616 $246,981 $1,292,023 +Proprietor Income $113,858 $46,467 $32,758 $193,083 =Labor Income $893,284 $312,083 $279,739 $1,485,106 +Other Property Type Income $411,122 $165,797 $207,605 $784,524 +Indirect Business Taxes $163,506 $47,346 $51,083 $261,935 =Total Value Added $1,467,912 $525,226 $538,427 $2,531,565 Output $2,889,133 $931,703 $850,692 $4,671,528 Employment Supported 37.3 9.4 7.4 54.1 Source: IMPLAN®


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Table 5. Estimated Tax Impact from Arena Operating Expenses during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $67,651 $6,986 $74,637 Social Ins Tax – Employer Contribution $88,173 $88,173 Indirect Bus Tax: Excise Taxes $22,774 $22,774 Indirect Bus Tax: Custom Duty $9,029 $9,029 Indirect Bus Tax: Fed Non-Taxes $2,587 $2,587 Corporate Profits Tax $53,251 $53,251 Personal Tax: Income Tax $92,550 $92,550 Total Federal Tax $155,824 $6,986 $34,390 $92,550 $53,251 $343,001 State and Local Tax Impact Dividends $298 $298 Social Ins Tax – Employee Contribution $712 $0 $712 Social Ins Tax – Employer Contribution $1,400 $1,400 Indirect Bus Tax: Sales Tax $109,677 $109,677 Indirect Bus Tax: Property Tax $97,130 $97,130 Indirect Bus Tax: Motor Vehicle License $1,992 $1,992 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $17,751 $17,751 Indirect Bus Tax: S/L Non-Taxes $994 $994 Corporate Profits Tax $10,164 $10,164 Personal Tax: Income Tax $29,680 $29,680 Personal Tax: Non-Taxes (Fines – Fees) $4,809 $4,809 Personal Tax: Motor Vehicle License $1,194 $1,194 Personal Tax: Property Taxes $546 $546 Personal Tax: Other Tax (Fish/Hunt) $663 $663 Total State and Local Tax $2,112 $0 $227,544 $36,892 $10,462 $277,010 Grand Total $157,936 $6,986 $261,934 $129,442 $63,713 $620,011

Source: IMPLAN®


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Hockey Team Operations

It was assumed that the management, support staff and players of the Wilkes-Barre/Scranton Penguins reside within a 15-mile radius of the arena. An assumption was made that the full-time personnel who are not players live in the area year round and the players are in the area from September through May. Consequently, not all of the income earned by a player stays in the region.

A major component of the impact analysis originates from the Wilkes-Barre/Scranton Penguins hockey team. An average of the number of full-time employees who are not players, along with their salaries and benefits, for the seasons from 2009-2010 to 2012-2013 was used. To account for the players, the total salaries from the opening night roster of the 2012-2013 season were used. This information is from http://nhlnumbers.com.

Also included in the economic impact from the operation of the hockey team is the average amount of sales of team merchandise and the average ticket price. With the exception of the players’ salary information, this information was provided by the Wilkes-Barre/Scranton Penguins.

It is realized that members of the hockey team, along with their mascot, “Tux,” participate in charitable events, which provide an economic impact to the region. Due to the unavailability of related data, this impact is not included in the analysis.

Therefore, based on information provided by the Wilkes-Barre/Scranton Penguins,

Tables 6 and 7 provide the estimated impact on the 15-mile radius region economy from the operation of the hockey team during 2013.

Table 6. Estimated Impact on the 15-Mile Radius Region Economy from the Operation of the Wilkes-Barre/Scranton Penguins during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $2,944,225 $379,857 $949,502 $4,273,584 +Proprietor Income $1,170,356 $137,149 $125,900 $1,433,405 =Labor Income $4,114,581 $517,006 $1,075,402 $5,706,989 +Other Property Type Income ($759,373) $98,429 $797,466 $136,522 +Indirect Business Taxes $1,036,670 $128,264 $196,090 $1,361,024 =Total Value Added $4,391,878 $743,699 $2,068,958 $7,204,535 Output $4,910,994 $1,281,474 $3,269,434 $9,461,902 Employment Supported 48.4 13.9 28.3 90.6 Source: IMPLAN®

http://nhlnumbers.com/


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Table 7. Estimated Tax Impact from the Operation of the Wilkes-Barre/Scranton Penguins during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $223,768 $51,864 $275,632 Social Ins Tax – Employer Contribution $291,647 $291,647 Indirect Bus Tax: Excise Taxes $118,333 $118,333 Indirect Bus Tax: Custom Duty $46,913 $46,913 Indirect Bus Tax: Fed Non-Taxes $13,444 $13,444 Corporate Profits Tax $9,267 $9,267 Personal Tax: Income Tax $359,825 $359,825 Total Federal Tax $515,415 $51,864 $178,690 $359,825 $9,267 $1,115,061 State and Local Tax Impact Dividends $52 $52 Social Ins Tax – Employee Contribution $2,356 $0 $2,356 Social Ins Tax – Employer Contribution $4,632 $4,632 Indirect Bus Tax: Sales Tax $569,889 $569,889 Indirect Bus Tax: Property Tax $504,695 $504,695 Indirect Bus Tax: Motor Vehicle License $10,352 $10,352 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $92,236 $92,236 Indirect Bus Tax: S/L Non-Taxes $5,164 $5,164 Corporate Profits Tax $1,769 $1,769 Personal Tax: Income Tax $115,392 $115,392 Personal Tax: Non-Taxes (Fines – Fees) $18,697 $18,697 Personal Tax: Motor Vehicle License $4,643 $4,643 Personal Tax: Property Taxes $2,121 $2,121 Personal Tax: Other Tax (Fish/Hunt) $2,576 $2,576 Total State and Local Tax $6,988 $0 $1,182,336 $143,429 $1,821 $1,334,574 Grand Total $522,403 $51,864 $1,361,026 $503,254 $11,088 $2,449,635

Source: IMPLAN®


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Total Operation

For the impact from arena operation expenses, which includes arena payroll, and hockey team payroll expenses, the impact region is the 39 zip code region that is within 15 miles of the arena. An assumption was made that a substantial amount of operation expenses would originate from the Scranton – Wilkes-Barre area and that the management, support staff and players of the hockey team reside within the same area. Tables 8 and 9 provide the estimated economic impact from all operations.

Table 8. Estimated Impact on the 15-Mile Radius Region Economy from Total Operation during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $4,663,284 $1,876,238 $1,778,413 $8,317,935 +Proprietor Income $1,752,815 $381,348 $235,826 $2,369,989 =Labor Income $6,416,099 $2,257,586 $2,014,239 $10,687,924 +Other Property Type Income $458,127 $1,000,802 $1,493,952 $2,952,881 +Indirect Business Taxes $2,133,937 $422,277 $367,410 $2,923,624 =Total Value Added $9,008,163 $3,680,665 $3,875,601 $16,564,429 Output $18,38,295 $6,709,725 $6,124,090 $31,572,110 Employment Supported 592.7 73.9 53.0 719.6 Source: IMPLAN®


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Table 9. Estimated Tax Impact from Total Operation during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $435,534 $85,752 $521,286 Social Ins Tax – Employer Contribution $567,650 $567,650 Indirect Bus Tax: Excise Taxes $254,192 $254,192 Indirect Bus Tax: Custom Duty $100,775 $100,775 Indirect Bus Tax: Fed Non-Taxes $28,879 $28,879 Corporate Profits Tax $200,433 $200,433 Personal Tax: Income Tax $671,975 $671,975 Total Federal Tax $1,003,184 $85,752 $383,846 $671,975 $200,433 $2,345,190 State and Local Tax Impact Dividends $1,123 $1,123 Social Ins Tax – Employee Contribution $4,585 $0 $4,585 Social Ins Tax – Employer Contribution $9,015 $9,015 Indirect Bus Tax: Sales Tax $1,224,181 $1,224,181 Indirect Bus Tax: Property Tax $1,084,137 $1,084,137 Indirect Bus Tax: Motor Vehicle License $22,236 $22,236 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $198,132 $198,132 Indirect Bus Tax: S/L Non-Taxes $11,093 $11,093 Corporate Profits Tax $38,255 $38,255 Personal Tax: Income Tax $215,495 $215,495 Personal Tax: Non-Taxes (Fines – Fees) $34,916 $34,916 Personal Tax: Motor Vehicle License $8,671 $8,671 Personal Tax: Property Taxes $3,961 $3,961 Personal Tax: Other Tax (Fish/Hunt) $4,810 $4,810 Total State and Local Tax $13,600 $0 $2,539,779 $267,853 $39,378 $2,860,610 Grand Total $1,016,784 $85,752 $2,923,625 $939,828 $239,811 $5,205,800

Source: IMPLAN®


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Visitation

Visitation to the arena occurs by event attendees, performers and exhibitors to trade

shows. The economic impact from spending by visitors of lodging, restaurant meals, gasoline and other items should be included in an economic impact analysis of an arena. According to a survey that was included in an economic impact analysis of the Sovereign Center in Berks County, Pennsylvania by Lolita Paff, Ph.D., 77.1 percent would not have spent dollars on shopping, gasoline, restaurant meals and an overnight stay if they did not purchase a ticket to a concert or show at the Center. The same question was asked to hockey game attendees and the response was 50.3 percent.

The estimated impact for event attendees is presented first and then followed by the

estimated impact for performers, exhibitors and members of visiting hockey teams.

Visitation by Event Attendees

The region for this impact consists of the zip codes that are within a 15-mile radius of the arena. Since economic impact analysis is based on new spending within an impact region, spending by people who visit the arena and reside within the impact region is not included in the analysis. This spending is not included because people who live within the impact region have the capability of spending dollars on other recreational activities. Therefore, new spending occurs when people come from outside the 15-mile radius area to attend events at the arena.

To estimate the economic impact from the spending by visitors who have purchased

tickets for events such as concerts, family and entertainment shows and hockey games on lodging, restaurant meals, gasoline and other items, zip code data from June 2012 Ticketmaster sales, which was generated in June 2014, was used. It is realized that there are additional sales from walk-up transactions at the Box Office and these sales are not included in the economic impact because of data being unavailable.

Based on federal government travel guidelines, an overnight stay is justified if travel is

greater than 50 miles. Consequently, the region for a day visitor who contributes to the economic impact of the arena consists of an area that is beyond 15 miles and not greater than 50 miles. Therefore, an assumption was made that any visitor who lives beyond 50 miles would stay overnight. In regards to hockey fans who stay overnight, an assumption was made that 1 percent of them would stay overnight in a hotel. Number of Visitors for Hockey

Based on a five-year average, the number of visitors for hockey, which is 200,455, was provided by SMG. This number was coupled with the average ticket price over the 2009-2010 to 2012-2013 seasons of $18.01 that was provided by the Wilkes-Barre/Scranton Penguins in order to calculate the sales of hockey tickets to be $3,610,195.


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Number of Visitors for Concerts, and Entertainment and Family Shows

The number of attendees was based on a five-year event average and was provided by SMG. For the concerts, entertainment shows and family shows, the number of attendees was multiplied by $45.46, which is the average cost per ticket adjusted for inflation. The average cost per ticket of $44.14 was based on the average cost from June 2012 Ticketmaster data that was provided by SMG.

Based on a five-year average, the number of visitors attending a concert that was used in

the analysis is 48,492 and the number of visitors attending an entertainment show is 46,950. The number of visitors attending a family show is 68,936. These numbers were used in a proportion to determine the number of visitors who live within a 15-mile radius, between 15 and 50 miles and beyond 50 miles respectively. This proportion was based on June 12, 2012 Ticketmaster Sales by Location data that was generated on June 9, 2014 and provided by SMG.

The numbers of visitors were then broken down into two groups for each type of event,

people who stay the day and people who stay overnight. The visitation numbers that were used are in Table 10.

Table 10. Visitation Numbers Used in Estimating the Impact on the 15-Mile Radius Regional Economy during 2013 Type of Visitor Number Attend Hockey Game and Stay the Day 142,120 Attend Hockey Game and Stay Overnight 1,436 Attend Concert and Stay the Day 23,568 Attend Concert and Stay Overnight 14,829 Attend Entertainment Show and Stay the Day 22,848 Attend Entertainment Show and Stay Overnight 14,376 Attend Family Show and Stay the Day 33,474 Attend Family Show and Stay Overnight 21,061 Total 273,712

Visitor Spending

Spending by people, who reside outside the impact region and attend an event at the arena, provide an impact to the local economy. Spending data for people who attend a hockey game, concert, entertainment event or family event, originated from the Longwoods Travel USA 2012 Visitor Report for the Poconos, which was accessed through the Pocono Mountains Visitors Bureau website. This information was used whether the visitor spent the day or night.

Table 11 provides the spending data from “2012 Visitor Report, The Poconos,” by

Longwoods Travel USA. This information has been adjusted for 1 percent inflation from 2012 to


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2013, according to the U.S. Bureau of Labor Statistics Consumer Price Index (CPI) Inflation Calculator. These data were used in estimating the impact from the spending by visitors who attend hockey games, concerts, entertainment shows and family shows. Table 11. Spectator Spending Data Used in Estimating the Impact on the 15-Mile Radius Regional Economy during 2013 (2013 Dollars) Type of Expenditure Amount Day Recreation/Sightseeing/Entertainment $19.19 Restaurant Food and Beverage $18.18 Retail Purchases $13.13 Transportation at Destination $9.09 Total $59.59 Night Lodging $63.63 Restaurant Food and Beverage $31.31 Retail Purchases $20.20 Recreation/Sightseeing/Entertainment $19.19 Transportation at Destination $11.11 Total $145.44 Source: Longwoods Travel USA

Family, Entertainment and Trade Shows, Concerts and Graduations

Assumptions regarding expenditures were made based on the Continental United States (CONUS) Per Diem Rates and on reasonable generalizations. Assumptions were made in regards to whether groups stay in hotels with double occupancy, on buses or on a train, in the case of a circus. In the case of trade shows, assumptions were made in regards to the number of people who are non-local and stay overnight. In regards to food purchases, some groups purchase meals from a restaurant, some purchase meals from the catering facility at the arena and some purchase food from a grocery store and have professional chefs on staff.

There were several graduations held at the arena during 2013. Since it is not known how

many people attended the ceremonies, some assumptions had to be made. It was assumed that 5 percent of the graduates who were not from Luzerne County would bring 4 guests and purchase a restaurant dinner at $23 per person and gasoline at $5 per person at locations that are within a 5-mile radius of the arena. This applies to the graduation ceremonies of The Commonwealth Medical College, Marywood University and The University of Scranton. Since King’s College and Luzerne County Community College are located in Luzerne County, the resulting impact will be from the college’s themselves and not from the arena.


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Day Hockey Visitation

Based on the information in Tables 10 and 11, Tables 12 and 13 provide the estimated impact on the 15-Mile Radius Regional Economy from Day Hockey Visitation Expenditures during 2013. Table 12. Estimated Impact on the 15-Mile Radius Regional Economy from Day Hockey Visitation Expenditures during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $3,153,533 $426,315 $777,620 $4,357,468 +Proprietor Income $155,878 $73,564 $103,149 $332,591 =Labor Income $3,309,411 $499,879 $880,769 $4,690,059 +Other Property Type Income $842,099 $331,162 $653,889 $1,827,150 +Indirect Business Taxes $419,620 $86,333 $160,948 $666,901 =Total Value Added $4,571,130 $917,374 $1,695,606 $7,184,110 Output $7,117,921 $1,560,483 $2,678,795 $11,357,199 Employment Supported 133.6 11.7 23.2 168.5 Source: IMPLAN®


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Table 13. Estimated Tax Impact from Day Hockey Visitation Expenditures during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $228,160 $12,034 $240,194 Social Ins Tax – Employer Contribution $297,372 $297,372 Indirect Bus Tax: Excise Taxes $57,983 $57,983 Indirect Bus Tax: Custom Duty $22,987 $22,987 Indirect Bus Tax: Fed Non-Taxes $6,587 $6,587 Corporate Profits Tax $124,022 $124,022 Personal Tax: Income Tax $290,607 $290,607 Total Federal Tax $525,532 $12,034 $87,557 $290,607 $124,022 $1,039,752 State and Local Tax Impact Dividends $695 $695 Social Ins Tax – Employee Contribution $2,402 $0 $2,402 Social Ins Tax – Employer Contribution $4,723 $4,723 Indirect Bus Tax: Sales Tax $279,245 $279,245 Indirect Bus Tax: Property Tax $247,300 $247,300 Indirect Bus Tax: Motor Vehicle License $5,072 $5,072 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $45,195 $45,195 Indirect Bus Tax: S/L Non-Taxes $2,530 $2,530 Corporate Profits Tax $23,671 $23,671 Personal Tax: Income Tax $93,194 $93,194 Personal Tax: Non-Taxes (Fines – Fees) $15,100 $15,100 Personal Tax: Motor Vehicle License $3,750 $3,750 Personal Tax: Property Taxes $1,713 $1,713 Personal Tax: Other Tax (Fish/Hunt) $2,080 $2,080 Total State and Local Tax $7,125 $0 $579,343 $115,837 $24,366 $726,670 Grand Total $532,657 $12,034 $666,899 $406,444 $148,388 $1,766,422

Source: IMPLAN®


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Night Hockey Visitation

Based on the information in Tables 10 and 11, Tables 14 and 15 provide the estimated impact on the 15-Mile Radius Regional Economy from Night Hockey Visitation Expenditures during 2013. Table 14. Estimated Impact on the 15-Mile Radius Regional Economy from Night Hockey Visitation Expenditures during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $64,117 $16,634 $17,613 $98,364 +Proprietor Income $2,524 $2,931 $2,336 $7,791 =Labor Income $66,641 $19,565 $19,949 $106,155 +Other Property Type Income $26,051 $10,761 $14,811 $51,623 +Indirect Business Taxes $12,960 $2,892 $3,645 $19,497 =Total Value Added $105,652 $33,218 $38,405 $177,275 Output $187,851 $57,874 $60,675 $306,400 Employment Supported 2.7 0.5 0.5 3.7 Source: IMPLAN®


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Table 15. Estimated Tax Impact from Night Hockey Visitation Expenditures during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $5,150 $282 $5,432 Social Ins Tax – Employer Contribution $6,713 $6,713 Indirect Bus Tax: Excise Taxes $1,695 $1,695 Indirect Bus Tax: Custom Duty $672 $672 Indirect Bus Tax: Fed Non-Taxes $193 $193 Corporate Profits Tax $3,504 $3,504 Personal Tax: Income Tax $6,579 $6,579 Total Federal Tax $11,863 $282 $2,560 $6,579 $3,504 $24,788 State and Local Tax Impact Dividends $20 $20 Social Ins Tax – Employee Contribution $54 $0 $54 Social Ins Tax – Employer Contribution $107 $107 Indirect Bus Tax: Sales Tax $8,164 $8,164 Indirect Bus Tax: Property Tax $7,230 $7,230 Indirect Bus Tax: Motor Vehicle License $148 $148 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $1,321 $1,321 Indirect Bus Tax: S/L Non-Taxes $74 $74 Corporate Profits Tax $669 $669 Personal Tax: Income Tax $2,110 $2,110 Personal Tax: Non-Taxes (Fines – Fees) $342 $342 Personal Tax: Motor Vehicle License $85 $85 Personal Tax: Property Taxes $39 $39 Personal Tax: Other Tax (Fish/Hunt) $47 $47 Total State and Local Tax $161 $0 $16,937 $2,623 $689 $20,410 Grand Total $12,024 $282 $19,497 $9,202 $4,193 $45,198

Source: IMPLAN®


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Day Concert Visitation

Based on the information in Tables 10 and 11, Tables 16 and 17 provide the estimated

impact on the 15-Mile Radius Regional Economy from Day Concert Visitation Expenditures during 2013. Table 16. Estimated Impact on the 15-Mile Radius Regional Economy from Day Concert Visitation Expenditures during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $522,956 $70,697 $128,954 $722,607 +Proprietor Income $25,849 $12,199 $17,105 $55,153 =Labor Income $548,805 $82,896 $146,059 $777,760 +Other Property Type Income $139,647 $54,917 $108,436 $303,000 +Indirect Business Taxes $69,586 $14,317 $26,690 $110,593 =Total Value Added $758,038 $152,130 $281,185 $1,191,353 Output $1,180,377 $258,777 $444,229 $1,883,383 Employment Supported 22.2 1.9 3.8 27.9 Source: IMPLAN®


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Table 17. Estimated Tax Impact from Day Concert Visitation Expenditures during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $37,836 $1,996 $39,832 Social Ins Tax – Employer Contribution $49,314 $49,314 Indirect Bus Tax: Excise Taxes $9,615 $9,615 Indirect Bus Tax: Custom Duty $3,812 $3,812 Indirect Bus Tax: Fed Non-Taxes $1,092 $1,092 Corporate Profits Tax $20,567 $20,567 Personal Tax: Income Tax $48,192 $48,192 Total Federal Tax $87,150 $1,996 $14,519 $48,192 $20,567 $172,424 State and Local Tax Impact Dividends $115 $115 Social Ins Tax – Employee Contribution $398 $0 $398 Social Ins Tax – Employer Contribution $783 $783 Indirect Bus Tax: Sales Tax $46,308 $46,308 Indirect Bus Tax: Property Tax $41,010 $41,010 Indirect Bus Tax: Motor Vehicle License $841 $841 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $7,495 $7,495 Indirect Bus Tax: S/L Non-Taxes $420 $420 Corporate Profits Tax $3,925 $3,925 Personal Tax: Income Tax $15,455 $15,455 Personal Tax: Non-Taxes (Fines – Fees) $2,504 $2,504 Personal Tax: Motor Vehicle License $622 $622 Personal Tax: Property Taxes $284 $284 Personal Tax: Other Tax (Fish/Hunt) $345 $345 Total State and Local Tax $1,181 $0 $96,074 $19,210 $4,040 $120,505 Grand Total $88,331 $1,996 $110,593 $67,402 $24,607 $292,929

Source: IMPLAN®


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Night Concert Visitation


impact on the 15-Mile Radius Regional Economy from Night Concert Visitation Expenditures during 2013.

Table 18. Estimated Impact on the 15-Mile Radius Regional Economy from Night Concert Visitation Expenditures during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $662,113 $171,776 $181,884 $1,015,773 +Proprietor Income $26,067 $30,264 $24,126 $80,457 =Labor Income $688,180 $202,040 $206,010 $1,096,230 +Other Property Type Income $269,020 $111,120 $152,943 $533,083 +Indirect Business Taxes $133,828 $29,860 $37,645 $201,333 =Total Value Added $1,091,028 $343,020 $396,598 $1,830,646 Output $1,939,859 $597,643 $626,565 $3,164,067 Employment Supported 28.2 4.7 5.4 38.3 Source: IMPLAN®


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Table 19. Estimated Tax Impact from Night Concert Visitation Expenditures during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $53,187 $2,911 $56,098 Social Ins Tax – Employer Contribution $69,321 $69,321 Indirect Bus Tax: Excise Taxes $17,505 $17,505 Indirect Bus Tax: Custom Duty $6,940 $6,940 Indirect Bus Tax: Fed Non-Taxes $1,989 $1,989 Corporate Profits Tax $36,184 $36,184 Personal Tax: Income Tax $67,942 $67,942 Total Federal Tax $122,508 $2,911 $26,434 $67,942 $36,184 $255,979 State and Local Tax Impact Dividends $203 $203 Social Ins Tax – Employee Contribution $560 $0 $560 Social Ins Tax – Employer Contribution $1,101 $1,101 Indirect Bus Tax: Sales Tax $84,302 $84,302 Indirect Bus Tax: Property Tax $74,658 $74,658 Indirect Bus Tax: Motor Vehicle License $1,531 $1,531 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $13,644 $13,644 Indirect Bus Tax: S/L Non-Taxes $764 $764 Corporate Profits Tax $6,906 $6,906 Personal Tax: Income Tax $21,788 $21,788 Personal Tax: Non-Taxes (Fines – Fees) $3,530 $3,530 Personal Tax: Motor Vehicle License $877 $877 Personal Tax: Property Taxes $401 $401 Personal Tax: Other Tax (Fish/Hunt) $486 $486 Total State and Local Tax $1,661 $0 $174,899 $27,082 $7,109 $210,751 Grand Total $124,169 $2,911 $201,333 $95,024 $43,293 $466,730

Source: IMPLAN®


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Day Entertainment Show Visitation


impact on the 15-Mile Radius Regional Economy from Day Entertainment Show Visitation Expenditures during 2013.

Table 20. Estimated Impact on the 15-Mile Radius Regional Economy from Day Entertainment Show Visitation Expenditures during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $503,083 $68,401 $124,184 $695,668 +Proprietor Income $25,039 $11,803 $16,473 $53,315 =Labor Income $528,122 $80,204 $140,657 $748,983 +Other Property Type Income $134,557 $53,128 $104,424 $292,109 +Indirect Business Taxes $66,825 $13,854 $25,703 $106,382 =Total Value Added $729,504 $147,186 $270,784 $1,147,474 Output $1,141,741 $250,393 $427,795 $1,819,929 Employment Supported 20.5 1.9 3.7 26.1 Source: IMPLAN®


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Table 21. Estimated Tax Impact from Day Entertainment Show Visitation Expenditures during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $36,426 $1,929 $38,355 Social Ins Tax – Employer Contribution $47,475 $47,475 Indirect Bus Tax: Excise Taxes $9,249 $9,249 Indirect Bus Tax: Custom Duty $3,667 $3,667 Indirect Bus Tax: Fed Non-Taxes $1,051 $1,051 Corporate Profits Tax $19,828 $19,828 Personal Tax: Income Tax $46,410 $46,410 Total Federal Tax $83,901 $1,929 $13,967 $46,410 $19,828 $166,035 State and Local Tax Impact Dividends $111 $111 Social Ins Tax – Employee Contribution $383 $0 $383 Social Ins Tax – Employer Contribution $754 $754 Indirect Bus Tax: Sales Tax $44,544 $44,544 Indirect Bus Tax: Property Tax $39,449 $39,449 Indirect Bus Tax: Motor Vehicle License $809 $809 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $7,209 $7,209 Indirect Bus Tax: S/L Non-Taxes $404 $404 Corporate Profits Tax $3,784 $3,784 Personal Tax: Income Tax $14,883 $14,883 Personal Tax: Non-Taxes (Fines – Fees) $2,412 $2,412 Personal Tax: Motor Vehicle License $599 $599 Personal Tax: Property Taxes $274 $274 Personal Tax: Other Tax (Fish/Hunt) $332 $332 Total State and Local Tax $1,137 $0 $92,415 $18,500 $3,895 $115,947 Grand Total $85,038 $1,929 $106,382 $64,910 $23,723 $281,982

Source: IMPLAN®


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Night Entertainment Show Visitation


impact on the 15-Mile Radius Regional Economy from Night Entertainment Show Visitation Expenditures during 2013.

Table 22. Estimated Impact on the 15-Mile Radius Regional Economy from Night Entertainment Show Visitation Expenditures during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $641,887 $166,529 $176,328 $984,744 +Proprietor Income $25,271 $29,340 $23,389 $78,000 =Labor Income $667,158 $195,869 $199,717 $1,062,744 +Other Property Type Income $260,802 $107,726 $148,270 $516,798 +Indirect Business Taxes $129,740 $28,948 $36,495 $195,183 =Total Value Added $1,057,700 $332,543 $384,482 $1,774,725 Output $1,880,599 $579,386 $607,424 $3,067,409 Employment Supported 27.3 4.5 5.3 37.1 Source: IMPLAN®


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Table 23. Estimated Tax Impact from Night Entertainment Show Visitation Expenditures during 2013 (2013 Dollars)


Proprietor Income




Source: IMPLAN®


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Day Family Show Visitation


impact on the 15-Mile Radius Regional Economy from Day Family Show Visitation Expenditures during 2013. Table 24. Estimated Impact on the 15-Mile Radius Regional Economy from Day Family Show Visitation Expenditures during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $742,762 $100,411 $183,155 $1,026,328 +Proprietor Income $36,714 $17,327 $24,295 $78,336 =Labor Income $779,476 $117,738 $207,450 $1,104,664 +Other Property Type Income $198,342 $78,000 $154,013 $430,355 +Indirect Business Taxes $98,834 $20,334 $37,909 $157,077 =Total Value Added $1,076,652 $216,072 $399,372 $1,692,096 Output $1,676,508 $367,546 $630,945 $2,674,999 Employment Supported 31.5 2.8 5.5 39.8 Source: IMPLAN®


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Table 25. Estimated Tax Impact from Day Family Show Visitation Expenditures during 2013 (2013 Dollars)


Proprietor Income




Source: IMPLAN®


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Night Family Show Visitation


impact on the 15-Mile Radius Regional Economy from Night Family Show Visitation Expenditures during 2013.

Table 26. Estimated Impact on the 15-Mile Radius Regional Economy from Night Family Show Visitation Expenditures during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $940,372 $243,967 $258,323 $1,442,662 +Proprietor Income $37,022 $42,983 $34,266 $114,271 =Labor Income $977,394 $286,950 $292,589 $1,556,933 +Other Property Type Income $382,078 $157,820 $217,218 $757,116 +Indirect Business Taxes $190,070 $42,408 $53,465 $285,943 =Total Value Added $1,549,542 $487,178 $563,272 $2,599,992 Output $2,755,099 $848,807 $889,883 $4,493,789 Employment Supported 40.0 6.7 7.7 54.4 Source: IMPLAN®


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Table 27. Estimated Tax Impact from Night Family Show Visitation Expenditures during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $75,539 $4,135 $79,674 Social Ins Tax – Employer Contribution $98,453 $98,453 Indirect Bus Tax: Excise Taxes $24,861 $24,861 Indirect Bus Tax: Custom Duty $9,856 $9,856 Indirect Bus Tax: Fed Non-Taxes $2,824 $2,824 Corporate Profits Tax $51,391 $51,391 Personal Tax: Income Tax $96,495 $96,495 Total Federal Tax $173,992 $4,135 $37,541 $96,495 $51,391 $363,554 State and Local Tax Impact Dividends $288 $288 Social Ins Tax – Employee Contribution $795 $0 $795 Social Ins Tax – Employer Contribution $1,564 $1,564 Indirect Bus Tax: Sales Tax $119,730 $119,730 Indirect Bus Tax: Property Tax $106,034 $106,034 Indirect Bus Tax: Motor Vehicle License $2,175 $2,175 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $19,378 $19,378 Indirect Bus Tax: S/L Non-Taxes $1,085 $1,085 Corporate Profits Tax $9,809 $9,809 Personal Tax: Income Tax $30,945 $30,945 Personal Tax: Non-Taxes (Fines – Fees) $5,014 $5,014 Personal Tax: Motor Vehicle License $1,245 $1,245 Personal Tax: Property Taxes $569 $569 Personal Tax: Other Tax (Fish/Hunt) $691 $691 Total State and Local Tax $2,359 $0 $248,402 $38,464 $10,097 $299,322 Grand Total $176,351 $4,135 $285,943 $134,959 $61,488 $662,876

Source: IMPLAN®


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Visitation from Religious Conventions

In 2013, the arena hosted two religion-related conventions and those expenditures would

be different. For these conventions, visitor spending data for the Ahmadiyya Jalsa Salana Conference, an annual formal gathering of the Ahmadiyya Muslim Community that is held every year at the Farm Show Complex in Harrisburg, was used.

According to “The Economic Impact of the Farm Show Complex & Expo Center,

Harrisburg” by the Penn State Center for Economic & Community Development, 97.4 percent of participants at the conference were from outside Cumberland and Dauphin counties. According to a July 15, 2012 article, “Jehovah’s Witnesses Prepare for Convention” that was in The Citizen’s Voice, between 3,500 and 4,000 people will visit the arena for a convention held on two consecutive weekends. An assumption was made that 3,750 people attended the convention on each weekend, resulting in 7,500 people. When the 97.4 percent is applied, then there were 7,305 attendees who are from outside the 15-mile region.

As part of their mission, members of the Jehovah’s Witnesses clean the arena. Since the amount spent on cleaning supplies is not known, the economic impact from that purchase cannot be estimated.

The second religion-related convention that was held in 2013 was one by the

Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America (ELCA). Since attendance data were not available for this convention from online sources, an assumption was made that 1,000 people attended the 2-day convention and that 60 percent or 600 people stayed overnight. For this analysis, the same spending data from the Penn State study were used.

Table 28 provides the spending data that was used in the two religious conferences that

were held at the arena during 2013.

Table 28. Spending Data Used in Estimating the Impact from the Jehovah’s Witnesses Convention and the Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America (ELCA) Convention on the 15-Mile Radius Regional Economy during 2013 Type of Expenditure Amount Lodging $70.94 Restaurant Food and Beverage $17.55 Retail Purchases from Gasoline Stations $14.35 Retail Purchases from Stores $6.68 Transportation at Destination $0.05 Total $109.57 Source: Penn State Center for Economic and Community Development

Based on the spending data in Table 28, with a number of visitors of 7,305, Tables 29 and

30 provide the estimated impact from the spending by visitors at the Jehovah’s Witnesses convention on the 15-mile radius economy during 2013.


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Table 29. Estimated Impact on the 15-Mile Radius Regional Economy from the Jehovah’s Witnesses Convention during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $174,286 $67,327 $53,262 $294,875 +Proprietor Income $6,966 $11,902 $7,065 $25,933 =Labor Income $181,252 $79,229 $60,327 $320,808 +Other Property Type Income $94,776 $40,946 $44,785 $180,507 +Indirect Business Taxes $48,145 $11,168 $11,023 $70,336 =Total Value Added $324,173 $131,343 $116,135 $571,651 Output $634,118 $230,959 $183,478 $1,048,555 Employment Supported 7.6 1.8 1.6 11.0 Source: IMPLAN®


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Table 30. Estimated Tax Impact from the Jehovah’s Witnesses Convention during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $15,440 $938 $16,378 Social Ins Tax – Employer Contribution $20,124 $20,124 Indirect Bus Tax: Excise Taxes $6,115 $6,115 Indirect Bus Tax: Custom Duty $2,424 $2,424 Indirect Bus Tax: Fed Non-Taxes $695 $695 Corporate Profits Tax $12,252 $12,252 Personal Tax: Income Tax $19,897 $19,897 Total Federal Tax $35,564 $938 $9,234 $19,897 $12,252 $77,885 State and Local Tax Impact Dividends $69 $69 Social Ins Tax – Employee Contribution $163 $0 $163 Social Ins Tax – Employer Contribution $320 $320 Indirect Bus Tax: Sales Tax $29,451 $29,451 Indirect Bus Tax: Property Tax $26,082 $26,082 Indirect Bus Tax: Motor Vehicle License $535 $535 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $4,767 $4,767 Indirect Bus Tax: S/L Non-Taxes $267 $267 Corporate Profits Tax $2,339 $2,339 Personal Tax: Income Tax $6,381 $6,381 Personal Tax: Non-Taxes (Fines – Fees) $1,034 $1,034 Personal Tax: Motor Vehicle License $257 $257 Personal Tax: Property Taxes $117 $117 Personal Tax: Other Tax (Fish/Hunt) $142 $142 Total State and Local Tax $483 $0 $61,102 $7,931 $2,408 $71,924 Grand Total $36,047 $938 $70,336 $27,828 $14,660 $149,809

Source: IMPLAN®


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Based on 600 visitors who spent the night and attended the Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America (ELCA) 2-day convention at the arena in June 2013, along with the spending data from Table 28, Tables 31 and 32 provide the estimated impact on a region being a 15-mile radius from the arena. Table 31. Estimated Impact on the 15-Mile Radius Regional Economy from the Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America Convention during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $15,150 $5,868 $4,632 $25,650 +Proprietor Income $598 $1,038 $614 $2,250 =Labor Income $15,748 $6,906 $5,246 $27,900 +Other Property Type Income $8,255 $3,566 $3,895 $15,716 +Indirect Business Taxes $4,193 $973 $959 $6,125 =Total Value Added $28,196 $11,445 $10,100 $49,741 Output $55,186 $20,123 $15,956 $91,265 Employment Supported 0.7 0.2 0.1 1.0 Source: IMPLAN®


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Table 32. Estimated Tax Impact from the Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America Convention during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $1,343 $81 $1,424 Social Ins Tax – Employer Contribution $1,750 $1,750 Indirect Bus Tax: Excise Taxes $532 $532 Indirect Bus Tax: Custom Duty $211 $211 Indirect Bus Tax: Fed Non-Taxes $60 $60 Corporate Profits Tax $1,067 $1,067 Personal Tax: Income Tax $1,730 $1,730 Total Federal Tax $3,093 $81 $803 $1,730 $1,067 $6,774 State and Local Tax Impact Dividends $6 $6 Social Ins Tax – Employee Contribution $14 $0 $14 Social Ins Tax – Employer Contribution $28 $28 Indirect Bus Tax: Sales Tax $2,564 $2,564 Indirect Bus Tax: Property Tax $2,271 $2,271 Indirect Bus Tax: Motor Vehicle License $47 $47 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $415 $415 Indirect Bus Tax: S/L Non-Taxes $23 $23 Corporate Profits Tax $204 $204 Personal Tax: Income Tax $555 $555 Personal Tax: Non-Taxes (Fines – Fees) $90 $90 Personal Tax: Motor Vehicle License $22 $22 Personal Tax: Property Taxes $10 $10 Personal Tax: Other Tax (Fish/Hunt) $12 $12 Total State and Local Tax $42 $0 $5,320 $689 $210 $6,261 Grand Total $3,135 $81 $6,123 $2,419 $1,277 $13,035

Source: IMPLAN®


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Tables 33 and 34 provide the total impact on the 15-mile radius regional economy from both conventions, with a total overnight visitation of 7,905 people. Table 33. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Attendees at the Jehovah’s Witnesses and Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America Conventions during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $189,435 $73,195 $57,894 $320,524 +Proprietor Income $7,564 $12,940 $7,679 $28,183 =Labor Income $196,999 $86,135 $65,573 $348,707 +Other Property Type Income $103,031 $44,512 $48,680 $196,223 +Indirect Business Taxes $52,338 $12,141 $11,981 $76,460 =Total Value Added $352,368 $142,788 $126,234 $621,390 Output $689,304 $251,081 $199,433 $1,139,818 Employment Supported 8.2 2.0 1.7 11.9 Source: IMPLAN®


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Table 34. Estimated Tax Impact from the Spending by Attendees at the Jehovah’s Witnesses and Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America Conventions during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $16,783 $1,020 $17,803 Social Ins Tax – Employer Contribution $21,874 $21,874 Indirect Bus Tax: Excise Taxes $6,648 $6,648 Indirect Bus Tax: Custom Duty $2,636 $2,636 Indirect Bus Tax: Fed Non-Taxes $755 $755 Corporate Profits Tax $13,319 $13,319 Personal Tax: Income Tax $21,628 $21,628 Total Federal Tax $38,657 $1,020 $10,039 $21,628 $13,319 $84,663 State and Local Tax Impact Dividends $75 $75 Social Ins Tax – Employee Contribution $177 $0 $177 Social Ins Tax – Employer Contribution $347 $347 Indirect Bus Tax: Sales Tax $32,016 $32,016 Indirect Bus Tax: Property Tax $28,353 $28,353 Indirect Bus Tax: Motor Vehicle License $582 $582 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $5,182 $5,182 Indirect Bus Tax: S/L Non-Taxes $290 $290 Corporate Profits Tax $2,542 $2,542 Personal Tax: Income Tax $6,936 $6,936 Personal Tax: Non-Taxes (Fines – Fees) $1,124 $1,124 Personal Tax: Motor Vehicle License $279 $279 Personal Tax: Property Taxes $127 $127 Personal Tax: Other Tax (Fish/Hunt) $155 $155 Total State and Local Tax $524 $0 $66,423 $8,621 $2,617 $78,185 Grand Total $39,181 $1,020 $76,462 $30,249 $15,936 $162,848

Source: IMPLAN®


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Visitation from Graduations

During 2013, the arena hosted several college graduations. Ceremonies were held for The

Commonwealth Medical College, Marywood University, King’s College, Luzerne County Community College, The University of Scranton and Crestwood High School. Since King’s College, Luzerne County Community College and Crestwood High School are located in Luzerne County, which is where the arena is located, it was assumed that the economic impact from those ceremonies is based on the institution, not on the arena.

Since The Commonwealth Medical College, Marywood University and The University of

Scranton are located in Lackawanna County, an assumption was made that 5 percent of the graduates who were not from Luzerne County would bring 4 guests and purchase a restaurant dinner at $23 per person and gasoline at $5 per person at locations that are within a 5-mile radius of the arena. Based on newspaper reports and assumptions, there were, in 2013, 97 graduates from outside Luzerne County who graduated from The Commonwealth Medical College, 800 graduates from outside Luzerne County who graduated from Marywood University and 1,689 graduates from outside Luzerne County who graduated from The University of Scranton. Therefore, based on 646 people, with the aforementioned purchases of a restaurant dinner and gasoline, Tables 35 and 36 provide the total impact on the 15-mile radius regional economy from people who attend graduations. Table 35. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by People who Attend Graduations during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $5,002 $1,135 $1,408 $7,545 +Proprietor Income $567 $184 $187 $938 =Labor Income $5,569 $1,319 $1,595 $8,483 +Other Property Type Income $1,652 $877 $1,183 $3,712 +Indirect Business Taxes $787 $251 $291 $1,329 =Total Value Added $8,008 $2,447 $3,069 $13,524 Output $15,217 $4,344 $4,849 $24,410 Employment Supported 0.3 0.0 0.0 0.3 Source: IMPLAN®


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Table 36. Estimated Tax Impact from the Spending by People who Attend Graduations during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $395 $34 $429 Social Ins Tax – Employer Contribution $515 $515 Indirect Bus Tax: Excise Taxes $116 $116 Indirect Bus Tax: Custom Duty $46 $46 Indirect Bus Tax: Fed Non-Taxes $13 $13 Corporate Profits Tax $252 $252 Personal Tax: Income Tax $528 $528 Total Federal Tax $910 $34 $175 $528 $252 $1,899 State and Local Tax Impact Dividends $1 $1 Social Ins Tax – Employee Contribution $4 $0 $4 Social Ins Tax – Employer Contribution $8 $8 Indirect Bus Tax: Sales Tax $557 $557 Indirect Bus Tax: Property Tax $493 $493 Indirect Bus Tax: Motor Vehicle License $10 $10 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $90 $90 Indirect Bus Tax: S/L Non-Taxes $5 $5 Corporate Profits Tax $48 $48 Personal Tax: Income Tax $169 $169 Personal Tax: Non-Taxes (Fines – Fees) $27 $27 Personal Tax: Motor Vehicle License $7 $7 Personal Tax: Property Taxes $3 $3 Personal Tax: Other Tax (Fish/Hunt) $4 $4 Total State and Local Tax $12 $0 $1,155 $210 $49 $1,426 Grand Total $922 $34 $1,330 $738 $301 $3,325

Source: IMPLAN®


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Visitation from the Northeastern Pennsylvania Home and Garden Show Based on an assumption that 3,000 people attended the Northeastern Pennsylvania Home and Garden Show during January 2013 and that each of them purchased a $23 restaurant meal and $5 in gasoline, Tables 37 and 38 provide the total impact on the 15-mile radius regional economy. Table 37. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by People who Attend the Northeastern Pennsylvania Home and Garden Show during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $23,229 $5,273 $6,537 $35,039 +Proprietor Income $2,632 $853 $867 $4,352 =Labor Income $25,861 $6,126 $7,404 $39,391 +Other Property Type Income $7,670 $4,072 $5,495 $17,237 +Indirect Business Taxes $3,655 $1,167 $1,352 $6,174 =Total Value Added $37,186 $11,365 $14,251 $62,802 Output $70,665 $20,176 $22,517 $113,358 Employment Supported 1.3 0.1 0.2 1.6 Source: IMPLAN®


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Table 38. Estimated Tax Impact from the Spending by People who Attend the Northeastern Pennsylvania Home and Garden Show during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $1,835 $157 $1,992 Social Ins Tax – Employer Contribution $2,391 $2,391 Indirect Bus Tax: Excise Taxes $537 $537 Indirect Bus Tax: Custom Duty $213 $213 Indirect Bus Tax: Fed Non-Taxes $61 $61 Corporate Profits Tax $1,170 $1,170 Personal Tax: Income Tax $2,450 $2,450 Total Federal Tax $4,226 $157 $811 $2,450 $1,170 $8,814 State and Local Tax Impact Dividends $7 $7 Social Ins Tax – Employee Contribution $19 $0 $19 Social Ins Tax – Employer Contribution $38 $38 Indirect Bus Tax: Sales Tax $2,586 $2,586 Indirect Bus Tax: Property Tax $2,290 $2,290 Indirect Bus Tax: Motor Vehicle License $47 $47 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $418 $418 Indirect Bus Tax: S/L Non-Taxes $23 $23 Corporate Profits Tax $223 $223 Personal Tax: Income Tax $786 $786 Personal Tax: Non-Taxes (Fines – Fees) $127 $127 Personal Tax: Motor Vehicle License $32 $32 Personal Tax: Property Taxes $14 $14 Personal Tax: Other Tax (Fish/Hunt) $18 $18 Total State and Local Tax $57 $0 $5,364 $977 $230 $6,628 Grand Total $4,283 $157 $6,175 $3,427 $1,400 $15,442

Source: IMPLAN®


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Total Visitation by Event Attendees

Tables 39 and 40 provide the estimated impact on the 15-Mile Radius Regional Economy

from Total Event Attendee Spending during 2013.

Table 39. Estimated Impact on the 15-Mile Radius Regional Economy from Total Event Attendee Spending during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $7,448,489 $1,344,334 $1,913,900 $10,706,723 +Proprietor Income $345,128 $234,387 $253,873 $833,388 =Labor Income $7,793,617 $1,578,721 $2,167,773 $11,540,111 +Other Property Type Income $2,364,949 $954,094 $1,609,362 $4,928,405 +Indirect Business Taxes $1,178,244 $252,505 $396,125 $1,826,874 =Total Value Added $11,336,810 $2,785,320 $4,173,260 $18,295,390 Output $18,655,140 $4,796,511 $6,593,110 $30,044,761 Employment Supported 315.8 36.8 57.0 409.6 Source: IMPLAN®


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Table 40. Estimated Tax Impact from Total Event Attendee Spending during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $560,612 $30,154 $590,766 Social Ins Tax – Employer Contribution $730,671 $730,671 Indirect Bus Tax: Excise Taxes $158,836 $158,836 Indirect Bus Tax: Custom Duty $62,971 $62,971 Indirect Bus Tax: Fed Non-Taxes $18,045 $18,045 Corporate Profits Tax $334,525 $334,525 Personal Tax: Income Tax $715,144 $715,144 Total Federal Tax $1,291,283 $30,154 $239,852 $715,144 $334,525 $2,610,958 State and Local Tax Impact Dividends $1,875 $1,875 Social Ins Tax – Employee Contribution $5,902 $0 $5,902 Social Ins Tax – Employer Contribution $11,604 $11,604 Indirect Bus Tax: Sales Tax $764,949 $764,949 Indirect Bus Tax: Property Tax $677,440 $677,440 Indirect Bus Tax: Motor Vehicle License $13,895 $13,895 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $123,806 $123,806 Indirect Bus Tax: S/L Non-Taxes $6,931 $6,931 Corporate Profits Tax $63,849 $63,849 Personal Tax: Income Tax $229,338 $229,338 Personal Tax: Non-Taxes (Fines – Fees) $37,160 $37,160 Personal Tax: Motor Vehicle License $9,228 $9,228 Personal Tax: Property Taxes $4,216 $4,216 Personal Tax: Other Tax (Fish/Hunt) $5,119 $5,119 Total State and Local Tax $17,506 $0 $1,587,021 $285,061 $65,724 $1,955,312 Grand Total $1,308,789 $30,154 $1,826,873 $1,000,205 $400,249 $4,566,270

Source: IMPLAN®


Page 53 of 84

Visitation by Performers, Exhibitors and Visiting Hockey Teams

The impact region for the spending from Performers at Family and Entertainment Shows and Concerts, Exhibitors at Trade Shows and Visiting Hockey Teams is based on the region that is within a 15-mile radius of the arena. It is assumed that all related spending on items such as overnight lodging, meals, gasoline and other items will occur within this area.

The Mohegan Sun Arena at Casey Plaza hosted several family, entertainment and trade

shows and concerts and hockey games during 2013. Entertainers, along with people who exhibit at trade shows and members of the opposing hockey team spend dollars on lodging, restaurant meals, snack food and gasoline while they are near the arena. Some entertainers travel by bus between concerts and others fly. It was assumed that the entertainers who travel by bus would refuel in the area. The amount used for purchasing diesel fuel was $555 per bus which is the midpoint of the $185 to $925 range that was from the Limousine, Charter and Tour magazine website. Other costs for lodging and restaurant meals originated from the Continental United States (CONUS) Per Diem Rates from the U.S. General Services Administration. The lodging expense of $77 was divided by 2 for double occupancy. The restaurant meals from the CONUS Per Diem Rates are $7 for breakfast, $11 for lunch and $23 for dinner for a total of $41 per day. Assumptions were made for catered food at the arena at a cost of $40 per person per day; snack food at a cost of $5 per person per day; gasoline at a cost of $5 per person and incidentals at $5 per person per day, which is an increase of $2 from the CONUS Per Diem Rate of $3. An assumption was made that the incidentals amount would be spent on health and personal care items. Therefore, the incidentals amount was assigned to the Retail Trade – Drug Stores industry. A summary of the spending data used is presented in Table 41.

Table 41. Performer and Exhibitor Per Person Spending Data Used in Estimating the Impact from Family, Entertainment and Trade Shows, and Concerts during 2013 (2013 Dollars) Type of Expenditure Amount Lodging $38.50 Restaurant Food and Beverage $41.00 Retail Purchases from Gasoline Stations $5.00 Retail Purchases from Stores for Snack Food $5.00 Retail Purchases from Stores for Incidentals $5.00 Total $94.50 Source: U.S. General Services Administration Continental United States Per Diem Rates and Professional Assumptions


Page 54 of 84

Performers who Travel by Bus and Dine at a Restaurant

Based on a list of events provided by SMG, along with the assumptions that there are 65 performers who travel by bus, dine at a restaurant and spend $41 on restaurant meals, $17.08 on diesel fuel, $5 on snack food and $5 on health and personal care, Tables 42 and 43 provide the estimated impact on the 15-mile radius regional economy during 2013.

Table 42. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Performers who Travel by Bus and Dine at a Restaurant (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $1,012 $222 $283 $1,517 +Proprietor Income $116 $36 $38 $190 =Labor Income $1,128 $258 $321 $1,707 +Other Property Type Income $307 $173 $238 $718 +Indirect Business Taxes $164 $49 $59 $272 =Total Value Added $1,599 $480 $618 $2,697 Output $2,975 $845 $976 $4,796 Employment Supported 0.1 0.0 0.0 0.1 Source: IMPLAN®


Page 55 of 84

Table 43. Estimated Tax Impact from the Spending by Performers who Travel by Bus and Dine at a Restaurant (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $79 $7 $86 Social Ins Tax – Employer Contribution $104 $104 Indirect Bus Tax: Excise Taxes $24 $24 Indirect Bus Tax: Custom Duty $9 $9 Indirect Bus Tax: Fed Non-Taxes $3 $3 Corporate Profits Tax $49 $49 Personal Tax: Income Tax $106 $106 Total Federal Tax $183 $7 $36 $106 $49 $381 State and Local Tax Impact Dividends $0 $0 Social Ins Tax – Employee Contribution $1 $0 $1 Social Ins Tax – Employer Contribution $2 $2 Indirect Bus Tax: Sales Tax $114 $114 Indirect Bus Tax: Property Tax $101 $101 Indirect Bus Tax: Motor Vehicle License $2 $2 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $18 $18 Indirect Bus Tax: S/L Non-Taxes $1 $1 Corporate Profits Tax $9 $9 Personal Tax: Income Tax $34 $34 Personal Tax: Non-Taxes (Fines – Fees) $6 $6 Personal Tax: Motor Vehicle License $1 $1 Personal Tax: Property Taxes $1 $1 Personal Tax: Other Tax (Fish/Hunt) $1 $1 Total State and Local Tax $3 $0 $236 $43 $9 $291 Grand Total $186 $7 $272 $149 $58 $672

Source: IMPLAN®


Page 56 of 84

Performers who Travel by Bus and Dine at the Arena

Based on an assumption that 120 performers travel by bus and dine at the arena through its catering service and having the purchases of $40 in catered food, $5 in snack food, $13.88 in diesel fuel and $5 in health and personal care items, Tables 44 and 45 provide the estimated impact on the 15-mile radius regional economy from their spending during 2013.

Table 44. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Performers who Travel by Bus and Dine at the Arena (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $1,814 $399 $507 $2,720 +Proprietor Income $203 $65 $67 $335 =Labor Income $2,017 $464 $574 $3,055 +Other Property Type Income $549 $309 $426 $1,284 +Indirect Business Taxes $294 $87 $105 $486 =Total Value Added $2,860 $860 $1,105 $4,825 Output $5,329 $1,516 $1,746 $8,591 Employment Supported 0.1 0.0 0.0 0.1 Source: IMPLAN®


Page 57 of 84

Table 45. Estimated Tax Impact from the Spending by Performers who Travel by Bus and Dine at the Arena (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $142 $12 $154 Social Ins Tax – Employer Contribution $186 $186 Indirect Bus Tax: Excise Taxes $42 $42 Indirect Bus Tax: Custom Duty $17 $17 Indirect Bus Tax: Fed Non-Taxes $5 $5 Corporate Profits Tax $87 $87 Personal Tax: Income Tax $190 $190 Total Federal Tax $328 $12 $64 $190 $87 $681 State and Local Tax Impact Dividends $0 $0 Social Ins Tax – Employee Contribution $1 $0 $1 Social Ins Tax – Employer Contribution $3 $3 Indirect Bus Tax: Sales Tax $203 $203 Indirect Bus Tax: Property Tax $180 $180 Indirect Bus Tax: Motor Vehicle License $4 $4 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $33 $33 Indirect Bus Tax: S/L Non-Taxes $2 $2 Corporate Profits Tax $17 $17 Personal Tax: Income Tax $61 $61 Personal Tax: Non-Taxes (Fines – Fees) $10 $10 Personal Tax: Motor Vehicle License $2 $2 Personal Tax: Property Taxes $1 $1 Personal Tax: Other Tax (Fish/Hunt) $1 $1 Total State and Local Tax $4 $0 $422 $75 $17 $518 Grand Total $332 $12 $486 $265 $104 $1,199

Source: IMPLAN®


Page 58 of 84

Performers who Travel by Bus, Have Additional Trailers and Dine at the Arena

Based on 15 performers who travel by bus, have additional trailers and dine at the arena through its catering service with expenditures of $40 for food, along with the additional spending of $5 for snack food, $13.88 for diesel fuel and $5 for health and personal care items, Tables 46 and 47 provide the estimated impact on the 15-mile radius regional economy.

Table 46. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Performers who Travel by Bus, Have Additional Trailers and Dine at the Arena (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $262 $57 $76 $395 +Proprietor Income $45 $9 $10 $64 =Labor Income $307 $66 $86 $459 +Other Property Type Income $81 $45 $64 $190 +Indirect Business Taxes $46 $12 $16 $74 =Total Value Added $434 $123 $166 $723 Output $775 $215 $263 $1,253 Employment Supported 0.0 0.0 0.0 0.0 Source: IMPLAN®


Page 59 of 84

Table 47. Estimated Tax Impact from Performers who Travel by Bus, Have Additional Trailers and Dine at the Arena (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $21 $2 $23 Social Ins Tax – Employer Contribution $27 $27 Indirect Bus Tax: Excise Taxes $6 $6 Indirect Bus Tax: Custom Duty $3 $3 Indirect Bus Tax: Fed Non-Taxes $1 $1 Corporate Profits Tax $13 $13 Personal Tax: Income Tax $29 $29 Total Federal Tax $48 $2 $10 $29 $13 $102 State and Local Tax Impact Dividends $0 $0 Social Ins Tax – Employee Contribution $0 $0 $0 Social Ins Tax – Employer Contribution $0 $0 Indirect Bus Tax: Sales Tax $31 $31 Indirect Bus Tax: Property Tax $28 $28 Indirect Bus Tax: Motor Vehicle License $1 $1 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $5 $5 Indirect Bus Tax: S/L Non-Taxes $0 $0 Corporate Profits Tax $2 $2 Personal Tax: Income Tax $9 $9 Personal Tax: Non-Taxes (Fines – Fees) $1 $1 Personal Tax: Motor Vehicle License $0 $0 Personal Tax: Property Taxes $0 $0 Personal Tax: Other Tax (Fish/Hunt) $0 $0 Total State and Local Tax $0 $0 $65 $10 $2 $77 Grand Total $48 $2 $75 $39 $15 $179

Source: IMPLAN®


Page 60 of 84

Performers who Stay in a Hotel and Dine at a Restaurant

Based on 1,168 performers and people who are exhibitors at trade shows not including the Northeastern Pennsylvania Home and Garden Show, along with $38.50 in lodging expenses (double occupancy), $41 in restaurant meals, $5 in snack food purchases, $5 in gasoline purchases and $5 in health and personal care purchases, Tables 48 and 49 provide the estimated impact on the 15-mile radius regional economy.

For these trade shows, an assumption was made that there were three non-local booths

with 2 people at each booth.

Table 48. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Performers who Stay in a Hotel and Dine at a Restaurant (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $29,086 $9,128 $8,518 $46,732 +Proprietor Income $1,887 $1,570 $1,130 $4,587 =Labor Income $30,973 $10,698 $9,648 $51,319 +Other Property Type Income $12,530 $6,034 $7,162 $25,726 +Indirect Business Taxes $6,480 $1,672 $1,763 $9,915 =Total Value Added $49,983 $18,404 $18,573 $86,960 Output $96,856 $32,430 $29,343 $158,629 Employment Supported 1.4 0.2 0.3 1.9 Source: IMPLAN®


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Table 49. Estimated Tax Impact from the Spending by Performers who Stay in a Hotel and Dine at a Restaurant (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $2,447 $166 $2,613 Social Ins Tax – Employer Contribution $3,189 $3,189 Indirect Bus Tax: Excise Taxes $862 $862 Indirect Bus Tax: Custom Duty $342 $342 Indirect Bus Tax: Fed Non-Taxes $98 $98 Corporate Profits Tax $1,746 $1,746 Personal Tax: Income Tax $3,186 $3,186 Total Federal Tax $5,636 $166 $1,302 $3,186 $1,746 $12,036 State and Local Tax Impact Dividends $10 $10 Social Ins Tax – Employee Contribution $26 $0 $26 Social Ins Tax – Employer Contribution $51 $51 Indirect Bus Tax: Sales Tax $4,152 $4,152 Indirect Bus Tax: Property Tax $3,677 $3,677 Indirect Bus Tax: Motor Vehicle License $75 $75 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $672 $672 Indirect Bus Tax: S/L Non-Taxes $38 $38 Corporate Profits Tax $333 $333 Personal Tax: Income Tax $1,022 $1,022 Personal Tax: Non-Taxes (Fines – Fees) $166 $166 Personal Tax: Motor Vehicle License $41 $41 Personal Tax: Property Taxes $19 $19 Personal Tax: Other Tax (Fish/Hunt) $23 $23 Total State and Local Tax $77 $0 $8,614 $1,271 $343 $10,305 Grand Total $5,713 $166 $9,916 $4,457 $2,089 $22,341

Source: IMPLAN®


Page 62 of 84

Performers who Stay in a Hotel and Dine at the Arena

Based on an assumption that there are 2,094 people who stay in a hotel and dine at the

arena through its catering services, with each person having $38.50 in double occupancy lodging, $40 in catered food purchases, $5 in snack food purchases, $5 in gasoline purchases and $5 in health and personal care purchases, Tables 50 and 51 provide the estimated impact on the 15-mile radius regional economy during 2013.

Table 50. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Performers who Stay in a Hotel and Dine at the Arena (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $51,457 $16,209 $15,079 $82,745 +Proprietor Income $3,313 $2,790 $2,000 $8,103 =Labor Income $54,770 $18,999 $17,079 $90,848 +Other Property Type Income $22,237 $10,697 $12,678 $45,612 +Indirect Business Taxes $11,511 $2,963 $3,120 $17,594 =Total Value Added $88,518 $32,659 $32,877 $154,054 Output $171,551 $57,541 $51,944 $281,036 Employment Supported 2.5 0.4 0.4 3.3 Source: IMPLAN®


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Table 51. Estimated Tax Impact from the Spending by Performers who Stay in a Hotel and Dine at the Arena (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $4,333 $293 $4,626 Social Ins Tax – Employer Contribution $5,647 $5,647 Indirect Bus Tax: Excise Taxes $1,530 $1,530 Indirect Bus Tax: Custom Duty $606 $606 Indirect Bus Tax: Fed Non-Taxes $174 $174 Corporate Profits Tax $3,096 $3,096 Personal Tax: Income Tax $5,639 $5,639 Total Federal Tax $9,980 $293 $2,310 $5,639 $3,096 $21,318 State and Local Tax Impact Dividends $17 $17 Social Ins Tax – Employee Contribution $46 $0 $46 Social Ins Tax – Employer Contribution $90 $90 Indirect Bus Tax: Sales Tax $7,367 $7,367 Indirect Bus Tax: Property Tax $6,524 $6,524 Indirect Bus Tax: Motor Vehicle License $134 $134 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $1,192 $1,192 Indirect Bus Tax: S/L Non-Taxes $67 $67 Corporate Profits Tax $591 $591 Personal Tax: Income Tax $1,808 $1,808 Personal Tax: Non-Taxes (Fines – Fees) $293 $293 Personal Tax: Motor Vehicle License $73 $73 Personal Tax: Property Taxes $33 $33 Personal Tax: Other Tax (Fish/Hunt) $40 $40 Total State and Local Tax $136 $0 $15,284 $2,247 $608 $18,275 Grand Total $10,116 $293 $17,594 $7,886 $3,704 $39,593

Source: IMPLAN®


Page 64 of 84

Performers who Travel by Train and Dine on the Train

During 2013, the Ringling Brothers and Barnum & Bailey Circus presented 5

performances over 4 days at the arena. The circus travels by train that has a diner-like restaurant, the “Pie Car,” where a professional culinary team prepares meals and several kitchens where employees can prepare meals. An assumption was made that the circus purchases food from local grocery stores at a cost of $40 per person per day with no snack food purchases. To account for any transportation expense between the train and the arena, an assumption was made that there would be a $5 per person expense for gasoline. Another assumption that is related to the circus is that there was no “parking fee” for its train while it is here.

Therefore, based on an assumption that there were 1,000 circus performers with the

aforementioned spending information, Tables 52 and 53 provide the estimated impact on the 15-mile radius regional economy from the spending by performers who travel by train and dine on the train during 2013.

Table 52. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Performers who Travel by Train and Dine on the Train (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $3,006 $492 $782 $4,280 +Proprietor Income $247 $84 $104 $435 =Labor Income $3,253 $576 $886 $4,715 +Other Property Type Income $246 $403 $658 $1,307 +Indirect Business Taxes $614 $92 $162 $868 =Total Value Added $4,113 $1,071 $1,706 $6,890 Output $6,265 $1,735 $2,694 $10,694 Employment Supported 0.1 0.0 0.0 0.1 Source: IMPLAN®


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Table 53. Estimated Tax Impact from the Spending by Performers who Travel by Train and Dine on the Train (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $224 $16 $240 Social Ins Tax – Employer Contribution $292 $292 Indirect Bus Tax: Excise Taxes $76 $76 Indirect Bus Tax: Custom Duty $30 $30 Indirect Bus Tax: Fed Non-Taxes $9 $9 Corporate Profits Tax $89 $89 Personal Tax: Income Tax $293 $293 Total Federal Tax $516 $16 $115 $293 $89 $1,029 State and Local Tax Impact Dividends $0 $0 Social Ins Tax – Employee Contribution $2 $0 $2 Social Ins Tax – Employer Contribution $5 $5 Indirect Bus Tax: Sales Tax $364 $364 Indirect Bus Tax: Property Tax $322 $322 Indirect Bus Tax: Motor Vehicle License $7 $7 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $59 $59 Indirect Bus Tax: S/L Non-Taxes $3 $3 Corporate Profits Tax $17 $17 Personal Tax: Income Tax $94 $94 Personal Tax: Non-Taxes (Fines – Fees) $15 $15 Personal Tax: Motor Vehicle License $4 $4 Personal Tax: Property Taxes $2 $2 Personal Tax: Other Tax (Fish/Hunt) $2 $2 Total State and Local Tax $7 $0 $755 $117 $17 $896 Grand Total $523 $16 $870 $410 $106 $1,925

Source: IMPLAN®


Page 66 of 84

Exhibitors at the Northeastern Pennsylvania Home and Garden Show

The Northeastern Pennsylvania Home and Garden Show has been held every January for

the past 14 years. Since this show is organized and promoted by Show Technology Productions of San Antonio, Texas, it is assumed that a portion of the booth rental fees are retained by the arena and the other portion is retained by Show Technology Productions. Depending on whether the vendor at the show is locally-based, there would be an economic impact based on the purchasing of goods and services from the vendor by people who live within the 15-mile radius of the arena. There would also be an economic impact from the spending of non-local vendors and visitors on lodging, gasoline and other items. According to a January 25, 2014 article in The Times Leader, “Annual Event Concludes Today at Mohegan Sun Arena,” there were over 125 vendors at the 13th annual show. According to “The Economic Impact of the Farm Show Complex & Expo Center, Harrisburg” by the Penn State Center for Economic & Community Development, 56.6 percent of the vendors at the Pennsylvania Home Show, which was held for 8 days in March 2013, were non-local. Consequently, when this percentage is multiplied by 125, the result is that 71 vendors are non-local.

Since it is not known the amount of sales for each of the local vendors who participate in

the show, the resulting economic impact cannot be estimated. Sales from the non-local vendors are not included because the services provided are outside the 15-mile radius. There is an impact from the spending by non-local vendors while they are at the arena for the duration of the show, which is 3 days. When the data from Table 41 are coupled with the 71 non-local vendors that have 2 people at each booth and are in the area for 3 days, the resulting estimated economic impact is in Tables 54 and 55. Table 54. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Non-Local Vendors at the Northeastern Pennsylvania Home and Garden Show (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $10,608 $3,329 $3,107 $17,044 +Proprietor Income $688 $573 $412 $1,673 =Labor Income $11,296 $3,902 $3,519 $18,717 +Other Property Type Income $4,570 $2,201 $2,612 $9,383 +Indirect Business Taxes $2,364 $610 $643 $3,617 =Total Value Added $18,230 $6,713 $6,774 $31,717 Output $35,326 $11,828 $10,702 $57,856 Employment Supported 0.5 0.1 0.1 0.7 Source: IMPLAN®


Page 67 of 84

Table 55. Estimated Tax Impact from the Spending by Non-Local Vendors at the Northeastern Pennsylvania Home and Garden Show (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $892 $61 $953 Social Ins Tax – Employer Contribution $1,163 $1,163 Indirect Bus Tax: Excise Taxes $314 $314 Indirect Bus Tax: Custom Duty $125 $125 Indirect Bus Tax: Fed Non-Taxes $36 $36 Corporate Profits Tax $637 $637 Personal Tax: Income Tax $1,162 $1,162 Total Federal Tax $2,055 $61 $475 $1,162 $637 $4,390 State and Local Tax Impact Dividends $4 $4 Social Ins Tax – Employee Contribution $9 $0 $9 Social Ins Tax – Employer Contribution $18 $18 Indirect Bus Tax: Sales Tax $1,514 $1,514 Indirect Bus Tax: Property Tax $1,341 $1,341 Indirect Bus Tax: Motor Vehicle License $28 $28 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $245 $245 Indirect Bus Tax: S/L Non-Taxes $14 $14 Corporate Profits Tax $122 $122 Personal Tax: Income Tax $373 $373 Personal Tax: Non-Taxes (Fines – Fees) $60 $60 Personal Tax: Motor Vehicle License $15 $15 Personal Tax: Property Taxes $7 $7 Personal Tax: Other Tax (Fish/Hunt) $8 $8 Total State and Local Tax $27 $0 $3,142 $463 $126 $3,758 Grand Total $2,082 $61 $3,617 $1,625 $763 $8,148

Source: IMPLAN®


Page 68 of 84

Total Spending by Performers and Exhibitors at Trade Shows Based on the assumptions indicated above along with their respective spending, Tables 56 and 57 provide the estimated impact from the total spending by performers and exhibitors during 2013. Table 56. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by Performers and Exhibitors at Trade Shows during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $97,245 $29,837 $28,353 $155,435 +Proprietor Income $6,499 $5,128 $3,761 $15,388 =Labor Income $103,744 $34,965 $32,114 $170,823 +Other Property Type Income $40,521 $19,861 $23,839 $84,221 +Indirect Business Taxes $21,474 $5,485 $5,867 $32,826 =Total Value Added $165,739 $60,311 $61,820 $287,870 Output $319,077 $106,111 $97,668 $522,856 Employment Supported 4.7 0.8 0.8 6.3 Source: IMPLAN®


Page 69 of 84

Table 57. Estimated Tax Impact from the Spending by Performers and Exhibitors at Trade Shows during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $8,139 $557 $8,696 Social Ins Tax – Employer Contribution $10,608 $10,608 Indirect Bus Tax: Excise Taxes $2,854 $2,854 Indirect Bus Tax: Custom Duty $1,131 $1,131 Indirect Bus Tax: Fed Non-Taxes $324 $324 Corporate Profits Tax $5,717 $5,717 Personal Tax: Income Tax $10,604 $10,604 Total Federal Tax $18,747 $557 $4,309 $10,604 $5,717 $39,934 State and Local Tax Impact Dividends $32 $32 Social Ins Tax – Employee Contribution $86 $0 $86 Social Ins Tax – Employer Contribution $168 $168 Indirect Bus Tax: Sales Tax $13,745 $13,745 Indirect Bus Tax: Property Tax $12,172 $12,172 Indirect Bus Tax: Motor Vehicle License $250 $250 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $2,225 $2,225 Indirect Bus Tax: S/L Non-Taxes $125 $125 Corporate Profits Tax $1,091 $1,091 Personal Tax: Income Tax $3,401 $3,401 Personal Tax: Non-Taxes (Fines – Fees) $551 $551 Personal Tax: Motor Vehicle License $137 $137 Personal Tax: Property Taxes $63 $63 Personal Tax: Other Tax (Fish/Hunt) $76 $76 Total State and Local Tax $254 $0 $28,517 $4,228 $1,123 $34,122 Grand Total $19,001 $557 $32,826 $14,832 $6,840 $74,056

Source: IMPLAN®


Page 70 of 84

Visiting Hockey Team Expenditures The data which were used for estimating the economic impact from visiting team expenditures is based on what the Wilkes-Barre/Scranton Penguins spend annually when they travel. The impact region is the area within a 15-mile radius of the arena. Therefore, Tables 58 and 59 provide the estimated impact on the 15-mile radius regional economy from visiting hockey team expenditures during 2013.

Table 58. Estimated Impact on the 15-Mile Radius Regional Economy from Visiting Hockey Team Expenditures (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $91,843 $21,885 $25,723 $139,451 +Proprietor Income $8,144 $3,922 $3,412 $15,478 =Labor Income $99,987 $25,807 $29,135 $154,929 +Other Property Type Income $40,673 $14,343 $21,627 $76,643 +Indirect Business Taxes $13,187 $3,849 $5,322 $22,358 =Total Value Added $153,847 $43,999 $56,084 $253,930 Output $271,720 $77,043 $88,608 $437,371 Employment Supported 4.2 0.6 0.8 5.6 Source: IMPLAN®


Page 71 of 84

Table 59. Estimated Tax Impact from Visiting Hockey Team Expenditures (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $7,302 $560 $7,862 Social Ins Tax – Employer Contribution $9,517 $9,517 Indirect Bus Tax: Excise Taxes $1,944 $1,944 Indirect Bus Tax: Custom Duty $771 $771 Indirect Bus Tax: Fed Non-Taxes $221 $221 Corporate Profits Tax $5,202 $5,202 Personal Tax: Income Tax $9,627 $9,627 Total Federal Tax $16,819 $560 $2,936 $9,627 $5,202 $35,144 State and Local Tax Impact Dividends $29 $29 Social Ins Tax – Employee Contribution $77 $0 $77 Social Ins Tax – Employer Contribution $151 $151 Indirect Bus Tax: Sales Tax $9,362 $9,362 Indirect Bus Tax: Property Tax $8,291 $8,291 Indirect Bus Tax: Motor Vehicle License $170 $170 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $1,515 $1,515 Indirect Bus Tax: S/L Non-Taxes $85 $85 Corporate Profits Tax $993 $993 Personal Tax: Income Tax $3,087 $3,087 Personal Tax: Non-Taxes (Fines – Fees) $500 $500 Personal Tax: Motor Vehicle License $124 $124 Personal Tax: Property Taxes $57 $57 Personal Tax: Other Tax (Fish/Hunt) $69 $69 Total State and Local Tax $228 $0 $19,423 $3,837 $1,022 $24,510 Grand Total $17,047 $560 $22,359 $13,464 $6,224 $59,654

Source: IMPLAN®


Page 72 of 84

Total Estimated Impact from the Spending by Performers, Trade Show Exhibitors and Members

of the Visiting Hockey Team Tables 60 and 61 provide the estimated economic impact on the 15-mile radius region from spending by people who are performers, trade show exhibitors or members of the visiting hockey team. Table 60. Total Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by People who are Performers, Exhibitors at Trade Shows or Members of the Visiting Hockey Team during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $189,089 $51,721 $54,077 $294,887 +Proprietor Income $14,643 $9,050 $7,173 $30,866 =Labor Income $203,732 $60,771 $61,250 $325,753 +Other Property Type Income $81,194 $34,204 $45,465 $160,863 +Indirect Business Taxes $34,661 $9,333 $11,189 $55,184 =Total Value Added $319,587 $104,308 $117,904 $541,800 Output $590,797 $183,154 $186,275 $960,226 Employment Supported 8.9 1.4 1.6 11.9 Source: IMPLAN®


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Table 61. Total Estimated Tax Impact from the Spending by Performers, Exhibitors at Trade Shows or Members of the Visiting Hockey Team during 2013 (2013 Dollars)


Proprietor Income




Source: IMPLAN®


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Total Estimated Impact from Visitation Tables 62 and 63 provide the estimated economic impact on the 15-mile radius region from visitation. Table 62. Total Estimated Impact on the 15-Mile Radius Regional Economy from Visitation during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $7,637,578 $1,396,055 $1,967,977 $11,001,610 +Proprietor Income $359,771 $243,437 $261,046 $864,254 =Labor Income $7,997,349 $1,639,492 $2,229,023 $11,865,864 +Other Property Type Income $2,446,143 $988,298 $1,654,827 $5,089,268 +Indirect Business Taxes $1,212,905 $261,838 $407,314 $1,882,057 =Total Value Added $11,656,397 $2,889,628 $4,291,164 $18,837,189 Output $19,245,937 $4,979,665 $6,779,386 $31,004,988 Employment Supported 324.7 38.2 58.6 421.5 Source: IMPLAN®


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Table 63. Total Estimated Tax Impact from Visitation during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $576,053 $31,271 $607,324 Social Ins Tax – Employer Contribution $750,796 $750,796 Indirect Bus Tax: Excise Taxes $163,634 $163,634 Indirect Bus Tax: Custom Duty $64,873 $64,873 Indirect Bus Tax: Fed Non-Taxes $18,590 $18,590 Corporate Profits Tax $345,444 $345,444 Personal Tax: Income Tax $735,375 $735,375 Total Federal Tax $1,326,849 $31,271 $247,097 $735,375 $345,444 $2,686,036 State and Local Tax Impact Dividends $1,936 $1,936 Social Ins Tax – Employee Contribution $6,065 $0 $6,065 Social Ins Tax – Employer Contribution $11,924 $11,924 Indirect Bus Tax: Sales Tax $788,056 $788,056 Indirect Bus Tax: Property Tax $697,904 $697,904 Indirect Bus Tax: Motor Vehicle License $14,314 $14,314 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $127,546 $127,546 Indirect Bus Tax: S/L Non-Taxes $7,141 $7,141 Corporate Profits Tax $65,932 $65,932 Personal Tax: Income Tax $235,826 $235,826 Personal Tax: Non-Taxes (Fines – Fees) $38,211 $38,211 Personal Tax: Motor Vehicle License $9,489 $9,489 Personal Tax: Property Taxes $4,335 $4,335 Personal Tax: Other Tax (Fish/Hunt) $5,264 $5,264 Total State and Local Tax $17,989 $0 $1,634,961 $293,125 $67,868 $2,013,943 Grand Total $1,344,838 $31,271 $1,882,058 $1,028,500 $413,312 $4,699,979

Source: IMPLAN®


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Total Estimated Impact from Operation and Visitation Tables 64 and 65 provide the estimated economic impact on the 15-mile radius region from operation and visitation. Table 64. Total Estimated Impact on the 15-Mile Radius Regional Economy from Operation and Visitation during 2013 (2013 Dollars) Direct +Indirect +Induced =Total Employee Compensation $12,300,862 $3,272,293 $3,746,389 $19,319,544 +Proprietor Income $2,112,585 $624,786 $496,872 $3,234,243 =Labor Income $14,413,447 $3,897,079 $4,243,261 $22,553,787 +Other Property Type Income $2,904,270 $1,989,100 $3,148,779 $8,042,149 +Indirect Business Taxes $3,346,843 $684,115 $774,724 $4,805,682 =Total Value Added $20,664,560 $6,570,294 $8,166,764 $35,401,618 Output $37,984,232 $11,689,390 $12,903,476 $62,577,098 Employment Supported 917.4 112.2 111.7 1,141.3 Source: IMPLAN®


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Table 65. Total Estimated Tax Impact from Operation and Visitation during 2013 (2013 Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $1,011,586 $117,024 $1,128,610 Social Ins Tax – Employer Contribution $1,318,446 $1,318,446 Indirect Bus Tax: Excise Taxes $417,826 $417,826 Indirect Bus Tax: Custom Duty $165,647 $165,647 Indirect Bus Tax: Fed Non-Taxes $47,469 $47,469 Corporate Profits Tax $545,877 $545,877 Personal Tax: Income Tax $1,407,350 $1,407,350 Total Federal Tax $2,330,032 $117,024 $630,942 $1,407,350 $545,877 $5,031,225 State and Local Tax Impact Dividends $3,060 $3,060 Social Ins Tax – Employee Contribution $10,650 $0 $10,650 Social Ins Tax – Employer Contribution $20,939 $20,939 Indirect Bus Tax: Sales Tax $2,012,237 $2,012,237 Indirect Bus Tax: Property Tax $1,782,041 $1,782,041 Indirect Bus Tax: Motor Vehicle License $36,551 $36,551 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $325,678 $325,678 Indirect Bus Tax: S/L Non-Taxes $18,233 $18,233 Corporate Profits Tax $104,188 $104,188 Personal Tax: Income Tax $451,321 $451,321 Personal Tax: Non-Taxes (Fines – Fees) $73,127 $73,127 Personal Tax: Motor Vehicle License $18,161 $18,161 Personal Tax: Property Taxes $8,296 $8,296 Personal Tax: Other Tax (Fish/Hunt) $10,075 $10,075 Total State and Local Tax $31,589 $0 $4,174,740 $560,980 $107,248 $4,874,557 Grand Total $2,361,621 $117,024 $4,805,682 $1,968,330 $653,125 $9,905,782

Source: IMPLAN®


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Construction of the New Savory Concessions and Bar during 2014 and 2015

An assumption was made that the impact region for construction of the new Savory

Concessions and Bar to be Pennsylvania. This is because not all of the construction materials are manufactured within Luzerne County. To account for any purchases of materials from non-Pennsylvania sources, a Local Purchase Percentage was used.

It was assumed that all of the furniture, fixtures and equipment that will be used in the new

Savory Concessions and Bar was not manufactured or purchased from Pennsylvania sources. Consequently, they are not included in the economic impact analysis.

Although the construction costs occur in 2014 and 2015, the resulting dollar amounts are

presented in standardized dollars, which are set to 2015. In order to avoid double-counting, the number of jobs is presented in each of the two years.

The following data that was used in the analysis is in Table 66 and is from the Luzerne County Convention Center Authority. Tables 67 and 68 provide the estimated economic impact from the construction of the new Savory Concessions and Bar on the Pennsylvania economy. Table 66. Data Used in Estimating the Impact on the Pennsylvania Economy from the Construction of the New Savory Concessions and Bar during 2014 and 2015 2014 Cost 2015 Cost Architecture and Engineering Services $48,802 Construction $3,835,158 Total $48,802 $3,835,158 Source: Luzerne County Convention Center Authority Table 67. Estimated Impact on the Pennsylvania Economy from the Construction of the New Savory Concessions and Bar during 2014 and 2015 (Standardized Dollars) Direct +Indirect +Induced =Total Employee Compensation $1,352,687 $546,624 $597,425 $2,496,736 +Proprietor Income $369,479 $90,653 $86,830 $546,962 =Labor Income $1,722,166 $637,277 $684,255 $3,043,698 +Other Property Type Income ($142,061) $223,417 $425,466 $506,822 +Indirect Business Taxes $25,133 $57,255 $97,788 $180,176 =Total Value Added $1,605,238 $917,949 $1,207,509 $3,730,696 Output $3,882,077 $1,692,622 $1,917,522 $7,492,221 Employment Supported – 2014 0.4 0.1 0.2 0.7 Employment Supported – 2015 24.9 9.7 13.9 48.5 Source: IMPLAN®


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Table 68. Estimated Tax Impact from the Construction of the New Savory Concessions and Bar during 2014 and 2015 (Standardized Dollars)


Proprietor Income



Federal Tax Impact Social Ins Tax – Employee Contribution $118,963 $20,015 $138,978 Social Ins Tax – Employer Contribution $155,049 $155,049 Indirect Bus Tax: Excise Taxes $12,580 $12,580 Indirect Bus Tax: Custom Duty $4,987 $4,987 Indirect Bus Tax: Fed Non-Taxes $1,429 $1,429 Corporate Profits Tax $33,350 $33,350 Personal Tax: Income Tax $213,182 $213,182 Total Federal Tax $274,012 $20,015 $18,996 $213,182 $33,350 $559,555 State and Local Tax Impact Dividends $187 $187 Social Ins Tax – Employee Contribution $1,214 $0 $1,214 Social Ins Tax – Employer Contribution $2,387 $2,387 Indirect Bus Tax: Sales Tax $77,689 $77,689 Indirect Bus Tax: Property Tax $68,802 $68,802 Indirect Bus Tax: Motor Vehicle License $1,411 $1,411 Indirect Bus Tax: Severance Tax $0 $0 Indirect Bus Tax: Other Taxes $12,574 $12,574 Indirect Bus Tax: S/L Non-Taxes $704 $704 Corporate Profits Tax $6,365 $6,365 Personal Tax: Income Tax $68,365 $68,365 Personal Tax: Non-Taxes (Fines – Fees) $11,077 $11,077 Personal Tax: Motor Vehicle License $2,751 $2,751 Personal Tax: Property Taxes $1,257 $1,257 Personal Tax: Other Tax (Fish/Hunt) $1,526 $1,526 Total State and Local Tax $3,601 $0 $161,180 $84,976 $6,552 $256,309 Grand Total $277,613 $20,015 $180,176 $298,158 $39,902 $815,864

Source: IMPLAN®


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Operation of the New Savory Concessions and Bar during 2016

The operation of the new Savory Concessions and Bar, which is based on a sales projection that was provided by SMG, has an impact region of 39 contiguous zip codes that are within a 15-mile radius of the arena. This distance was based on an October 2003 OmniStats report by the U.S. Department of Transportation, Bureau of Transportation Statistics. According to the report, the average commuter travels approximately 15 miles one way to get to work.

It was assumed that the people who will be employed at the new Savory Concessions and

Bar will reside within the 39 zip codes that are within a 15-mile radius of the arena.

Tables 69 and 70 provide the estimated impact on the 15-mile radius regional economy from the operation of the new Savory Concessions and Bar during 2016.

Table 69. Estimated Impact on the 15-Mile Radius Regional Economy from the Operation of the New Savory Concessions and Bar during 2016 (2016 Dollars) Direct +Indirect +Induced =Total Employee Compensation $214,015 $38,261 $56,329 $308,605 +Proprietor Income $17,333 $6,177 $7,472 $30,982 =Labor Income $231,348 $44,438 $63,801 $339,587 +Other Property Type Income $55,442 $29,502 $47,360 $132,304 +Indirect Business Taxes $26,014 $8,496 $11,656 $46,166 =Total Value Added $312,804 $82,436 $122,817 $518,057 Output $515,530 $146,936 $195,486 $857,952 Employment Supported 9.0 0.9 1.6 11.5 Source: IMPLAN®


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Table 70. Estimated Tax Impact from the Operation of the New Savory Concessions and Bar during 2016 (2016 Dollars)


Proprietor Income




Source: IMPLAN®


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Conclusion

This economic impact analysis is based on an area that is a 15-mile radius from the arena

and for the construction of the new Savory Concessions and Bar, the economic impact is based on the Pennsylvania economy. The total impact results are the following:

During 2013, the estimated impact on the area that is a 15-mile radius from the arena

from payroll expenses is the following: Total estimated output or economic activity of $17.4 million


Total estimated labor income of $3.5 million, which consists of $2.8 million in estimated employee compensation and $700,000 in estimated proprietor income

Total estimated value added of $6.8 million

Total estimated taxes of $2.1 million, which consists of an estimated $900,000 in federal taxes and an estimated $1.2 million in state and local taxes

During 2013, the estimated impact from the non-payroll operating expenses of the arena on the 15-mile radius region is the following: Total estimated output or economic activity of $4.7 million





During 2013, the estimated impact on a region that consists of an area that is a 15-mile radius from the arena from the operation of the Wilkes-Barre/Scranton Penguins hockey team is the following: Total estimated output or economic activity of $9.5 million



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Total estimated labor income of $5.7 million, which consists of $4.3 million in estimated employee compensation and $1.4 million in estimated proprietor income



During 2013, the estimated impact on a region that consists of an area that is a 15-mile radius from the arena from the spending by people who are from outside that region and visit the arena to attend a hockey game, concert, entertainment show, family show, trade show, religious convention or graduation ceremony is the following: Total estimated output or economic activity of $30.0 million





During 2013, the estimated impact on a region that consists of a 15-mile radius of the arena from the spending by performers, trade show exhibitors and members of visiting hockey teams that come to play the Wilkes-Barre/Scranton Penguins is the following: Total estimated output or economic activity of $960,000


Total estimated labor income of $330,000, which consists of $300,000 in estimated employee compensation and $30,000 in estimated proprietor income

Total estimated value added of $540,000


From 2014 to 2015, the estimated impact on the Pennsylvania economy from constructing the new Savory Concessions and Bar is the following: Total estimated output or economic activity of $7.5 million


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Total estimated employment supported of 48 jobs in 2015, which can be either full-time or part-time




Note: Due to the changing value of the dollar from year to year, the amounts are presented in standardized dollars, which are set to Year 2015.

During 2016, the estimated impact on the 15-mile radius regional economy from operating the new Savory Concessions and Bar will be the following: Total estimated output or economic activity of $860,000


Total estimated labor income of $340,000, which consists of $310,000 in estimated employee compensation and $30,000 in estimated proprietor income

Total estimated value added of $520,000


If the arena did not exist, some people would choose to travel outside the region to attend an event, thus reducing family discretionary spending in our regional economy. For example, if someone traveled to another area to see a show, they would spend dollars on gasoline to and from the show, meals at a restaurant, snack foods, souvenirs and depending on distance, an overnight stay, resulting in lost revenue or “leakage” to another region. Furthermore, it is known that the loss would be greater because some people within the 15-mile radius area would travel outside the region to spend discretionary dollars.

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