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MARKIN CONSULTING ■■■■ MAPLE GROVE, MINNESOTA

SWEETWATER EVENTS COMPLEX

MARKET DEMAND AND FINANCIAL FEASIBILITY REPORT

January 2007

Submitted by:

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MARKIN CONSULTING ■■■■ MAPLE GROVE, MINNESOTA

TO: Mr. Larry Lloyd FROM: Markin Consulting DATE: January 2007 SUBJECT: Market Demand and Financial Feasibility Report

This report presents the results of Markin Consulting’s study to identify the market support and financial impacts for constructing and operating an arena-style facility at the Sweetwater Events Complex, located in Rock Springs, Wyoming (the SEC), along with estimates of annual economic impacts of current and potential SEC operations and events. Specifically, the objectives of this assistance were to: ■ Conduct research and analyses that identify potential opportunities for use of an arena-style building at the SEC

■ Recommend facilities necessary to attract the potential opportunities

■ Prepare financial projections of operating the recommended facilities

■ Prepare estimates of the annual economic impacts of current operations and events held at the SEC, as currently configured, and of potential new events and operations related to an arena-style building at the SEC

Sweetwater Events Complex Market Demand and Financial Feasibility Report

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Approach In conducting the market demand and financial and economic impact assessments of the possible redevelopment options and new events and activities at SEC, Markin Consulting performed the following work steps:

! Toured Rock Springs and surrounding area, including the facilities at the SEC

! Interviewed representatives of the Sweetwater Events Complex management and staff, Rock Springs and Green River Chambers of Commerce, Sweetwater County Joint Tourism and Travel Board, SWEDA, existing and potential SEC users and other interested parties

! Researched and analyzed historical usage trends of the SEC facilities

! Analyzed economic and demographic trends affecting the Rock Springs/Sweetwater County market area

! Researched and assessed the area’s community resources (lodging, restaurants, retail, etc.)

! Researched and assessed the impact of competitive and comparable facilities located in the Sweetwater County area and the Rocky Mountain region on potential events that could be held in an arena-style building at the SEC

! Identified and quantified potential events, activities and opportunities for an arena-style facility at the SEC

! Recommended facility components needed to accommodate the potential events, activities and opportunities at the SEC

! Prepared estimates of operating revenues and expenses associated with the recommended facilities

! Surveyed select event promoters and participants to gather economic impact data

! Prepared estimates of the annual economic impacts of current and potential SEC operations and events 1

1 Presented in separate report dated October 20, 2006.


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Conditions of the Study This report is to be used only for planning of improved facilities at the Sweetwater Events Complex. It is not to be used for any other purpose. This report may not be referred to or included in any prospectus, or as a part of any offering or representation made in connection with the sale of securities to the public.

Although we believe that the information and assumptions set forth in this report constitute a reasonable basis for the estimates of usage, operating revenues and expenses, the achievement of any estimate may be affected by fluctuating economic conditions and the occurrence of other future events that cannot be anticipated. Therefore, the actual results achieved will vary from the estimates and such variations may be material.

The terms of our engagement are that we have no responsibility to update this report or to revise the estimates because of events and transactions occurring subsequent to the date of this report.

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We have appreciated the opportunity to work with you on this very important project.

Very truly yours,

Rod Markin, President


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Table of Contents

Market Demand Analysis Proposed Arena.................................................................................................................................................... 1 Overview............................................................................................................................................................... 2 Site Characteristics ............................................................................................................................................... 3 Facilities and Structures........................................................................................................................................ 9 Usage Trends ..................................................................................................................................................... 13 Economic and Demographic Trends................................................................................................................... 20 Competitive and Comparable Facilities............................................................................................................... 27

Potential Use Assessment .................................................................................................................................. 34 Event Potential.................................................................................................................................................... 39 Facility Recommendations.................................................................................................................................. 40

Financial Feasibility Analysis Overview............................................................................................................................................................. 41 Recommended Rental Policy Actions ................................................................................................................. 42 Projected Revenues and Expenses.................................................................................................................... 43 Revenue Assumptions ........................................................................................................................................ 44 Expense Assumptions ........................................................................................................................................ 49

Exhibits

Sweetwater Events Complex Market Demand Analysis

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Proposed Arena

Almost 10 years ago, the Board and management of the Sweetwater Events Complex decided to move forward with the development, funding, construction and operation of improved and new facilities at the SEC. One component of this planning was an arena-style building. The Board and management of the SEC have decided that an update to the market and financial feasibility study originally conducted by Markin Consulting in 1996 is warranted.

Management of the SEC envisions the arena-style building (the Proposed Arena) to consist of 4,000 to 6,000 seats, a large ring floor, concession area, restrooms, concourse, show office, box office, showers and dressing room, storage and other support components. Exhibit A presents sample renderings of the type of facility envisioned as a result of the 1996 study.

This report presents the analyses, findings, and recommendations related to the possible construction and operation of the Proposed Arena.


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Market Demand Overview

This section of this report presents our analyses, assessments, observations and recommendations related to market opportunities, operational factors and facility impacts related to the Sweetwater Events Complex. This section is organized in the following manner:

■ Site characteristics ■ Facilities and structures ■ Interim event usage trends ■ Economic and demographic trends ■ Competitive and comparable facilities ■ Potential use assessment ■ Event potential ■ Facility recommendations


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Site Characteristics

The Sweetwater Events Complex (the SEC) is located in Rock Springs, Wyoming, in Sweetwater County. Situated in the southwestern part of Wyoming, Sweetwater County is bordered by the Wyoming counties of Unita, Sublette, Fremont, Lincoln and Carbon. Sweetwater County also shares borders with the States of Utah and Colorado. The map below shows the location of Sweetwater County in relation to southwestern Wyoming and surrounding states.


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Site Characteristics (continued)

Regional access to Sweetwater County and Rock Springs is via US Interstate 80 from the east and west and US Highway 191 from the north and south. The map below shows the regional road system in relation to Rock Springs and the southwest Wyoming area, along with approximate mileage to cities within the region.

Approximate Mileage from Rock Springs

Casper - 225 miles

Cheyenne - 260 miles

Gillette - 410 miles

Denver - 350 miles

Jackson - 180 miles

Salt Lake City - 190 miles


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The City of Rock Springs is located in the central part of Sweetwater County. Below is a map showing the general boundaries of Rock Springs, transportation routes in the Rock Springs area and the location of the SEC.


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The SEC is located on the north side of Rock Springs. Access to the SEC is via Interstate 80 from the east and west and US Highway 191 from the north and south. Below is a map showing the principal highway and street access to the Sweetwater Events Complex.


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The SEC is bordered on the west by commercial and residential housing. The Paul J Wataha Recreation Area, comprised of the White Mountain Golf Course, ball fields and Pavilion, is located to the north of the SEC. Highway 191 borders the eastern edge of the complex and vacant land and a railway borders the southern end of the SEC. Below is an map that shows the location of the SEC and surrounding roadways and land uses.


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The SEC, situated on the north side of Rock Springs, is located in close proximity to visitor support services, such as grocery stores, gas stations, restaurants and other retail outlets, as well as the majority of lodging facilities in the Rock Springs area, many of which are located close to Interstate 80. Below are maps showing the relative location of the SEC in contrast with lodging facilities.

1. Econo Lodge 8. Cody Motel 15. Budget Host Inn2. Best Western Inn 9. Sands Inn 16. Rodeway Inn3. Days Inn 10. Wingate Inn 17. Motel 84. Rocky Mountain Mote 11. Motel 6 18. Super 8 Motel5. Saddle Lite Motel 12. Inn At Rock Springs 19. Holiday Inn6. Economy Guest Villag 13. Ramada Inn Limited 20. Comfort Inn7. Springs Motel 14. La Quinta Inn


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Facilities and Structures

The SEC consists of 320 acres of multi-use event facilities, unique to the southwestern Wyoming area. Major structures and features on the SEC include the following:

! Exhibit Hall ! Indoor Arena ! Stalls and Stock Pens ! Stock Car Track ! Moto-Cross Track ! BMX Track

! Grandstand and Arena ! Small Hall ! Poultry/Rabbit Barn ! Beef Barn ! RV Campgrounds ! Horseshoe/Bocci Area

The map on the following page shows the approximate location of the major buildings, structures and features on the SEC property.


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Facilities and Structures (continued)

Legend 1. Exhibit Hall/Admin Offices 2. Parking 3. Stock Car Race Track 4. Grandstand 5. Rodeo Arena 6. Track 7. Lake Sweetwater 8. Small Hall 9. Midway 10. Beef Barn 11. Indoor Arena 12. Horse Stalls 13. Rabbit/Poultry Barn 14. Arena Parking 15. Caretaker’s Residence 16. PV Parking 17. Horseshoe/Bocci Area 18. Parking 19. Outdoor Arena 20. Overflow Parking 21. North Gate 22. Center Gate 23. South Gate 24. Moto-Cross Track 25. BMX Track 26. Pee-Wee Track 27. Horse Pens 28. Warm-Up Arena 29. Cattle Pens 30. Round Pen


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Exhibit Hall

The Exhibit Hall consists of approximately 20,000 square feet of exhibition space, a full-equipped commercial kitchen, a smaller meeting room with attached kitchen equipment, administration offices, maintenance shop, and storage. It can accommodate banquet seating for up to 1,500 people. The Exhibit Hall is used for consumer shows, banquets, parties, conventions, training classes, dances, and similar events. It is heated but has no air conditioning.

Indoor Arena

The Indoor Arena is a 70,000 square foot structure with a dirt floor except for the entry and seating areas. It has a box office, rest rooms, concessions area, bleacher seating for over 600 people, a 100’ by 200’ ring area, and attached warm-up or animal holding area. This facility is used for horse shows, ropings, pennings, and rodeos.

Grandstand and Outdoor Arena

The Grandstand and Outdoor Arena consists of almost 3,000 uncovered bleacher seats, concession areas, and a rodeo arena. It is used for rodeos, concerts, demolition derbies and simiar spectator events.

Motor Sports Facilities

The Events Complex has four primary motor sports features – two moto cross courses (regular and Pee Wee), a BMX course and stock car speedway. The moto cross area includes a 1.4 mile track with starting gate, pit area, pit and announcer towers, portable seating for 2,000 people, and concession areas. The Pee-Wee track is a relatively new addition to the complex and offers younger/beginner riders a place to ride and compete.

The BMX track is located on the far east side of the grounds and is used for summer BMX-sanctioned race events. The Speedway consists of a 3/8 mile, banked oval dirt track, seating for almost 4,000 spectators, timing and scoring facilities, souvenir and concession stands, pit area, pit tower, and rest rooms.


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Stalls The SEC has 200 covered and 100 uncovered box stalls, as well as a variety of stock pens. The stall area is well lit with a wash rack and nearby parking. Small Hall Located adjacent to the Exhibit Hall, the Small Hall is an enclosed metal structure that can be used principally for 4-H activities. RV Campgrounds The SEC has about 25 hook-ups for RV’s located on the north side of Exhibit Hall. These sites all have electricity and some of the sites have water as well. Most of the electric sites only have 10 and 20 amp service. Other Buildings, Structures and Features Other buildings, structures and features on the grounds of the SEC include horseshoe pits, bocci ball area, rabbit/poultry barn, beef barn, midway area, parking and small lakes and ponds.


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Interim Event Usage Trends

To evaluate the strength and size of existing markets and to assess available facilities for expanded or new markets, we analyzed usage of major facilities rented for interim events at the SEC. Markin Consulting obtained interim event data from the SEC office for the calendar years 2005 and 2006; considered to be representative years for the complex. Using the event data, we developed analyses of interim usage of the SEC: by month, by major building/structure and by event type. This section presents key observations and analyses related to interim events and related facility usage at the SEC.

Observations of the general usage trends of the SEC follow: ■ In 2005, 491 separate events/activities were held at the Sweetwater Events Complex, representing 609 event

days1 of use. For 2006, 589 events/activities, representing 678 event days of use, are expected to be held at the SEC facilities.

■ The increase in the number of events between 2005 and 2006 is due in large part to the addition of training sessions in the meeting room of the Exhibit Hall by Excel Driver Services, a commercial truck driving school.

■ A substantial number of events and activities are single day events, whether lasting the entire day or only for an hour. Only 68 of the 491 events held in 2005 (13.6 percent) occurred over multiple days (2 days or longer). For 2006, only 59 of the 589 events (10 percent) are expected to occur over 2 days or more.

■ When excluding meetings, training and hourly rentals, facility uses for 4-H activities accounted for 26.5 percent and 22.5 percent of all events held in 2005 and 2006, respectively. BMX racing (summer and winter) accounted for 15.6 percent of all events held at the SEC in both 2005 and 2006. Horse shows, rodeos and other equine events accounted for 13.7 percent and 13.4 percent of events held at the SEC in 2005 and 2006, respectively.

■ The months of March through July are the busiest months for activities held at the SEC.

1 Event days represent the number of days than an event occurs, whether that event used the entire day or just a single hour.


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Interim Event Usage Trends ■ The Exhibit Hall was used for 61 events, accounting for 101 event days in 2005. For 2006, the Exhibit Hall is

expected to be used for 86 events, representing 120 event days. Uses of the Exhibit Hall include consumer and public shows, boxing, company training, banquets, fund raisers, education fairs, sporting activities and youth events.

■ In 2005, the Indoor Arena was used for 162 events/activities, accounting for 209 event days. For 2006, the Indoor Arena is expected to be used for 138 events, representing 179 event days. The reduction in the number of event and event days in 2006 is due to fewer hourly rental days compared with 2005 (103 in 2005 and 86 in 2006).

The tables on the following pages show the types of events and the corresponding number of events and event days for the calendar years 2005 and 2006, along with percentages by event type.


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Interim Event Usage Trends (continued)

Event Type 2005 2006 Event Type 2005 20064-H 68 52 4-H 68 53BMX 40 36 BMX 50 42Consumer/Public Show 14 13 Consumer/Public Show 38 33Dance 5 5 Dance 6 6Education 1 1 Education 2 2Festival 2 0 Festival 4 0Fund Raiser 3 1 Fund Raiser 6 2Horse Event 35 31 Horse Event 68 61Hourly Rentals 105 87 Hourly Rentals 106 88Meeting 64 59 Meeting 68 61Moto Cross 24 19 Moto Cross 31 20Reception/Banquet 15 15 Reception/Banquet 17 18Spectator Events 6 8 Spectator Events 7 10Sports Actvity 10 10 Sports Actvity 14 16Stock Car Racing 19 23 Stock Car Racing 21 31Training 66 212 Training 68 214Youth 6 9 Youth 9 13Other 8 8 Other 26 8Total 491 589 Total 609 678

Sweetwater Events Complex Sweetwater Events ComplexNumber of Events by Type, 2005-2006 Number of Event Days by Type, 2005-2006

Source: Sweetwater Events Complex Source: Sweetwater Events Complex


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2005 2006 2005 20064-H 13.8% 8.8% 4-H 11.2% 7.8%BMX 8.1% 6.1% BMX 8.2% 6.2%Consumer/Public Show 2.9% 2.2% Consumer/Public Show 6.2% 4.9%Dance 1.0% 0.8% Dance 1.0% 0.9%Education 0.2% 0.2% Education 0.3% 0.3%Festival 0.4% 0.0% Festival 0.7% 0.0%Fund Raiser 0.6% 0.2% Fund Raiser 1.0% 0.3%Horse Event 7.1% 5.3% Horse Event 11.2% 9.0%Hourly Rentals 21.4% 14.8% Hourly Rentals 17.4% 13.0%Meeting 13.0% 10.0% Meeting 11.2% 9.0%Moto Cross 4.9% 3.2% Moto Cross 5.1% 2.9%Reception/Banquet 3.1% 2.5% Reception/Banquet 2.8% 2.7%Spectator Events 1.2% 1.4% Spectator Events 1.1% 1.5%Sports Actvity 2.0% 1.7% Sports Actvity 2.3% 2.4%Stock Car Racing 3.9% 3.9% Stock Car Racing 3.4% 4.6%Training 13.4% 36.0% Training 11.2% 31.6%Youth 1.2% 1.5% Youth 1.5% 1.9%Other 1.6% 1.4% Other 4.3% 1.2%Total 100.0% 100.0% Total 100.0% 100.0%

Number of Event Days by Type, 2005-2006Sweetwater Events Complex Sweetwater Events Complex

Number of Events by Type, 2005-2006


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Event Type 2005 2006 Event Type 2005 20064-H 68 52 4-H 68 53BMX 40 36 BMX 50 42Consumer/Public Show 14 13 Consumer/Public Show 38 33Dance 5 5 Dance 6 6Education 1 1 Education 2 2Festival 2 0 Festival 4 0Fund Raiser 3 1 Fund Raiser 6 2Horse Event 35 31 Horse Event 68 61Moto Cross 24 19 Moto Cross 31 20Reception/Banquet 15 15 Reception/Banquet 17 18Spectator Events 6 8 Spectator Events 7 10Sports Actvity 10 10 Sports Actvity 14 16Stock Car Racing 19 23 Stock Car Racing 21 31Youth 6 9 Youth 9 13Other 8 8 Other 26 8Total 256 231 Total 367 315Source: Sweetwater Events Complex Source: Sweetwater Events Complex

Sweetwater Events ComplexNumber of Events by Type, Excluding Meetings, Training and Hourly Rentals, 2005-2006


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Event Type 2005 2006 Event Type 2005 20064-H 26.6% 22.5% 4-H 18.5% 16.8%BMX 15.6% 15.6% BMX 13.6% 13.3%Consumer/Public Show 5.5% 5.6% Consumer/Public Show 10.4% 10.5%Dance 2.0% 2.2% Dance 1.6% 1.9%Education 0.4% 0.4% Education 0.5% 0.6%Festival 0.8% 0.0% Festival 1.1% 0.0%Fund Raiser 1.2% 0.4% Fund Raiser 1.6% 0.6%Horse Event 13.7% 13.4% Horse Event 18.5% 19.4%Moto Cross 9.4% 8.2% Moto Cross 8.4% 6.3%Reception/Banquet 5.9% 6.5% Reception/Banquet 4.6% 5.7%Spectator Events 2.3% 3.5% Spectator Events 1.9% 3.2%Sports Actvity 3.9% 4.3% Sports Actvity 3.8% 5.1%Stock Car Racing 7.4% 10.0% Stock Car Racing 5.7% 9.8%Youth 2.3% 3.9% Youth 2.5% 4.1%Other 3.1% 3.5% Other 7.1% 2.5%Total 100.0% 100.0% Total 100.0% 100.0%

Sweetwater Events ComplexNumber of Events by Type, Excluding Meetings, Training and Hourly Rentals, 2005-2006

Source: Sweetwater Events Complex Source: Sweetwater Events Complex


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Below are the number of interim events and event days for 2005 and 2006, by month of usage.

MonthNumber of

EventsNumber of Event Days

Number of Events

Number of Event Days Month

Number of Events

Number of Event Days

Number of Events

Number of Event Days

January 11 16 41 47 January 2.2% 2.6% 7.0% 6.9%February 38 51 37 48 February 7.7% 8.4% 6.3% 7.1%March 50 59 42 50 March 10.2% 9.7% 7.1% 7.4%April 51 66 49 63 April 10.4% 10.8% 8.3% 9.3%May 57 65 63 69 May 11.6% 10.7% 10.7% 10.2%June 59 67 88 99 June 12.0% 11.0% 14.9% 14.6%July 57 68 72 80 July 11.6% 11.2% 12.2% 11.8%August 35 38 50 52 August 7.1% 6.2% 8.5% 7.7%September 35 47 45 56 September 7.1% 7.7% 7.6% 8.3%October 30 33 38 40 October 6.1% 5.4% 6.5% 5.9%November 30 56 32 39 November 6.1% 9.2% 5.4% 5.8%December 38 43 32 35 December 7.7% 7.1% 5.4% 5.2%Total 491 609 589 678 Total 100.0% 100.0% 100.0% 100.0%Source: Sweetwater Events Complex Source: Sweetwater Events Complex

Sweetwater Events ComplexEvent Usage, 2005-2006

2005 2006

Sweetwater Events ComplexEvent Usage, 2005-2006

2005 2006


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Economic and Demographic Trends

To assess the impact that population, household and economic trends may have on the overall demand for the Proposed Arena, we researched and analyzed a variety of changes in the population, employment and other economic factors of the Sweetwater County and Rock Springs area. Following are key economic and demographic trends and factors impacting market opportunities for the SEC.

■ Rock Springs is the most populated city in Sweetwater County, followed by Green River, which is approximately 20 miles to the west of Rock Springs. According to the US Census Bureau, the 2000 populations of Rock Springs and Green River were 18,708 and 11,808, respectively.

■ According US Census data, Sweetwater County’s population reached its peak around 1980, with more than 42,000 residents. By 1990, the County’s population had declined by almost 8.5 percent; due largely to reduction in jobs in the mining sector. The 2000 Census reported a further decline in the population of Sweetwater County to about 37,600 people. Population estimates of the US Census Bureau report that the County’s population in 2005 had increased only slightly over the 2000 Census population – from 37,613 to 37,975 (an increase of 362 people).

■ Similarly, the 2005 population of Rock Springs, as estimated by the Census Bureau, was 18,772 – only 64 more people that the 2000 census. According to the Rock Springs Chamber of Commerce, the population of Rock Springs is estimated to be closer to 26,000 people. And the County’s population is estimated to be between 43,000 and 44,000 – between 5,000 and 6,000 more people than estimated by the US Census.


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Economic and Demographic Trends (continued) ■ Our research of trends of the mining industry and related mining support services in the Sweetwater County and

surrounding area appears to support the higher population estimates reported by the Rock Springs Chamber: 1. The increase in demand for natural gas, combined with changes in technology to economically

extract natural gas has created a “boom” in the natural gas mining and related service industries in Sweetwater County. Rock Springs has become a centralized location for mining and related service companies that work in the Jonah and Pinedale fields and the Wamsutter/Echo Springs area. The Jonah-Pinedale area has undergone a renaissance in the last decade to become one of the fastest growing producing fields in the Rocky Mountain region. According to industry sources, combined production from both fields is rapidly expanding and pipeline capacity will be hard pressed to keep up with future production growth. Jonah Field was discovered in 1986, but due to market conditions and ineffective methods for stimulating gas release, the production was not economical. In 1992, McMurry Oil Company bought the field and used new drilling and completion technology to unlock the full potential of the field. The acquisition of 3D seismic data resulted in a revolutionary new image of the subsurface, including the existence of the Western Bounding Fault and the Southern Boundary Fault that form the boundary of the pressure compartment. In the last few years, Jonah Field has become the largest gas-producing field in the Rockies. The first drilling activity in the Pinedale area was in 1939. In 1971, the area became widely recognized as a proposed site of an experimental subsurface nuclear blast to stimulate gas release, but the experiment never occurred. The field was dormant until the successful application of drilling and completion techniques similar to those in nearby Jonah Field revitalized the area. Recent acquisition of 3D seismic data over the anticline has generated an improved image of the structure and will allow optimization of development drilling. Estimates vary, but up to 500 wells may be drilled on the anticline when it is fully developed.

2. In late 2005, BP announced that it will invest up to $2.2 billion to double production from its acreage in the Wamsutter gas field.


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Economic and Demographic Trends (continued) 3. Because of the increase in gas exploration and production, according to the Wyoming Department of

Employment, more than 2,200 jobs were added in the County between 2000 and 2005. 4. School enrollment in the Rock Springs area increased by 400 students, mostly occurring in the K-4

grades. 5. Births in Rock Springs in July 2006 were at one of the highest rates since the 1980’s. 6. Lodging facilities in the Rock Springs area are at their highest occupancy levels ever, principally due

to new workers staying at these properties, due to a lagging housing production market. 7. Twenty eight subdivisions in Rock Springs are in the planning process, representing between 1,100

and 1,200 housing unites – both single family and multi-family.

Other demographic and economic factors that impact the demand for the Proposed Arena include:

■ According to the Wyoming Department of Employment, the average weekly wage in the third quarter of 2005 in Sweetwater County was $800 – the second highest of all counties in the State.

■ When compared with the counties of Campbell, Laramie and Natrona (the other three largest populated counties in Wyoming), we noted the following:

1. Sweetwater County had the second highest median and average household incomes in 2000. 2. In 2005, Sweetwater County had the second highest average household effective buying income

(disposable income) of all counties - $49,654. 3. In 2005, Sweetwater County had almost $51,000 in retail sales per household (exceeding the

disposable income), indicating the regional retail power of the Sweetwater County area. Exhibit B presents detailed tables of these economic and demographic trends.


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Economic and Demographic Trends (continued)

In addition to reviewing economic and demographic data provided by the US Census Bureau and the State of Wyoming, we obtained and reviewed PRIZM NE1 cluster reports for households within Sweetwater County. Exhibit C presents a detailed description of the PRIZM cluster reports, along with detailed descriptions of each type of all 66 different household clusters used in the PRIZM analysis. Some of the highlights of the PRIZM reports are: ■ There are about 14,800 households within Sweetwater County, according to the Claritas PRIZM report. ■ The largest cluster within Sweetwater County, representing 38.5 percent of the households, is called Country Comfort.

The segments in Country Comfort are filled with predominantly white, middle-class homeowners. These households tend to be married, between the ages of 25 and 54, with or without children. They enjoy comfortable upscale lifestyles, exhibiting high indices for barbecuing, bar-hopping and playing golf as well as home-based activities such as gardening, woodworking and crafts. Reflecting their rural, family environment, they prefer trucks, SUVs and minivans to cars. Average household incomes range from the high $30K to mid $50k.

■ The next largest cluster within the County, representing almost 21 percent of the households, is called Rustic Living. As a group, these residents have relatively modest incomes, low educational levels, aging homes and blue-collar and agriculture related occupations. Many of the residents, a mix of young singles and seniors, are unmarried, and they've watched scores of their neighbors migrate to the city. These consumers spend their leisure time in such traditional small-town activities as fishing and hunting, attending social activities at the local church and veterans club, enjoying country music and car racing. Median household incomes for this cluster segment range from $28,000 to just over $30,000 per year.

1 Prepared by Claritas, Inc., 2006


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Economic and Demographic Trends (continued) ■ The third largest cluster is Landed Gentry, representing about 20.5 percent of all households in the County. The

segments in the Landed Gentry social group consist of wealthy Americans who migrated to the smaller boomtowns beyond the nation's beltways. Many of the households contain Boomer families and couples with college degrees, professional jobs–they're twice as likely as average Americans to telecommute–and expansive homes. With their upscale incomes, they can afford to spend heavily on consumer electronics, wireless and computer technology, luxury cars, powerboats, books and magazines, children's toys and exercise equipment. Household incomes in this cluster range between $77,000 and $98,000.

■ Middle America describes the last cluster of household segments within the County, representing about 20 percent of all households. Middle Americans tend to be white, high school educated, living as couples or larger families, and ranging in age from under 25 to over 65. Like many residents of remote communities, these conservative consumers tend to prefer traditional rural pursuits: fishing, hunting, making crafts, antique collecting, watching television and meeting at civic and veterans clubs for recreation and companionship. Friday nights are for celebrating high school sports. Median household incomes for this cluster are typically in the low $40,000 range.


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Following is a description from the Claritas report of some of the larger household segments that make up the clusters detailed on the previous pages: ■ The largest household segment in Sweetwater County is termed Mayberry-ville, represented by just over 2,000

households. Like the old Andy Griffith Show set in a quaint picturesque berg, Mayberry-ville harks back to an old-fashioned way of life. In these small towns, middle-class couples and families like to fish and hunt during the day, and stay home and watch TV at night. With lucrative blue-collar jobs and moderately priced housing, residents use their discretionary cash to purchase boats, campers, motorcycles and pickup trucks. These households have median household incomes in the low $50k area, eat at steakhouses, watch country music TV and read Bassmaster magazine.

■ The next largest segment is called New Homesteaders, represented by about 1,840 households. With decent-paying jobs in white-collar and service industries, these dual-income couples have fashioned comfortable, child-centered lifestyles, their driveways filled with campers and powerboats, their family rooms with PlayStations and Game Boys. These households have median incomes of about $54,000, go out for pizza, buy videos online, read 4-Wheel and Off-Road magazines, watch Nickolodeon and drive Kia Sedonas.

■ The third largest segment is called Fast-Track Families, representing about 1,580 households. With their upper-middle-class incomes, numerous children and spacious homes, Fast-Track Families are in their prime acquisition years. These middle-aged parents have the disposable income and educated sensibility to want the best for their children. They buy the latest technology with impunity: new computers, DVD players, home theater systems and video games. They take advantage of their rustic locales by camping, boating and fishing. These households have median household incomes of about $72,300, own a boat, read Fun Family magazine, watch the Fuse Network and own a Dodge Ram.

■ Another large segment is the Country Casuals, representing almost 1,000 households. There's a laid-back atmosphere in Country Casuals, a collection of middle-aged, upper-middle-class households that have started to empty-nest. Workers here-and most households boast two earners-have well-paying blue- or white collar jobs, or own small businesses. Today, these Baby-Boom couples have the disposable income to enjoy traveling, owning timeshares and going out to eat. With a median household income of almost $68,000, these households go whitewater rafting and skiing, drive a GMC Sierra and watch sports on television.


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Summary Observations

■ The significant growth of the Rock Springs area, coupled with the stability of investment being made by the mining and related industries, provides the County with a solid economic outlook that will result in increasing demand for event facilities in the area.

■ As more and more housing comes online, the new households in the area will be a prime target for events that could be held at the SEC.

■ Because lodging facilities are in such high demand by the growing labor force, lodging rates and occupancies are at their highest on record. Consequently, until more housing or lodging facilities are built, it will be difficult to attract large numbers of people for multiple day events.

■ The personal and disposable incomes of the residents and household of Sweetwater County are such that there is plenty of pent-up demand for additional entertainment activities in the County.


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Competitive and Comparable Facilities

The Proposed Arena at the Sweetwater Events Complex, as a single facility, will be unique to the southwestern region of Wyoming. With its multi-use capability, it can serve as a venue for concerts, horse shows, rodeos, moto-cross and arena cross, consumer and public shows, public assemblies, trade shows, sporting events and a variety of other events and activities. While many uses of the Proposed Arena would appeal only to the resident population of the area, other uses would compete with other facilities located in the Rocky Mountain region.

During the course of our study, we identified a number of potentially competitive and/or comparable facilities in the Rocky Mountain region that are used to stage events and activities similar to those identified for the Proposed Arena at the SEC. The types of facilities we identified and researched include the following:

■ Horse Facilities – These are facilities that are used for horse-related shows, events and activities.

■ Arena and Spectator Facilities – These are facilities able to host large horse shows and horse events, as well as ticketed events – concerts, sporting events, rodeos, and other spectator events.

This section presents a summary of our research and assessment of the impact of these facilities.


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Competitive and Comparable Facilities (continued)

Horse Facilities

We researched and identified 6 horse event facilities in Wyoming, Colorado and Utah that provide varying degrees of competition for similar facilities at the SEC. When assessing these facilities, in terms of competitiveness with the Proposed Arena, the most competitive facilities are the CAM-PLEX Facilities (Gillette, WY) and the Golden Spike Event Center (Ogden, UT).

Concert and Spectator Facilities

Concert and spectator facilities in the Rocky Mountain region would be, in many ways, more complementary than competitive with the Proposed Arena at the SEC, particularly when it comes to routings of music acts and touring shows. Most of the events held in these facilities appeal to a resident population within a close geographic proximity and do not compete directly on a regional or multi-state basis. We researched and assessed four concert and spectator event facilities that are considered comparable/complementary to the Proposed Arena – Golden Spike Arena (Ogden, UT), Casper Events Center (Casper, WY), Central Wyoming Fairgrounds Arena (Casper, WY), and the Cheyenne Civic Center (Cheyenne, WY).

Other concert and spectator event facilities that were researched but determined to not be directly competitive with or comparable to the Proposed Arena included the Ranch (Loveland, CO) and Delta Center (Salt Lake City, UT).

Brief descriptions of the horse and concert/spectator facilities are presented on the following pages.


29


Golden Spike Events Center (Ogden, UT)

The Golden Spike Event Center is a multi use facility that spans over 150 outdoor acres and 149,250 sq. ft. of indoor space. Its facilities include 2 exhibit halls, 2 indoor arenas, an auction arena/barn, horse stalls, ¾ mile covered grandstand oval race track, a championship equestrian cross country course, 7 soccer fields, a lighted softball quadraplex, 2 regulation basketball courts, 3 regulation volleyball courts, a covered picnic pavilion, and an outdoor stadium.

The Golden Spike Arena is a clear-span, 55,000 square foot arena with 5,800 seats around a 100’ by 180’ dirt floor. This building is heated but has no air conditioning and includes a conference room, show office, restrooms, showers, dressing rooms, concessions areas, access to the riding arena and adjacent parking. Events in the Golden Spike Arena include circuses, rodeos, NBHA Western Finals, monster truck and arena cross, horse shows, horse sales, and a variety of other activities.

Along with the Arena, the Golden Spike Events Center has a 41,000 square foot, indoor riding arena with a 126’ by 235’ dirt floor with seating for 400, a concession area, restroom and adjacent parking. The complex has 4 covered barns containing 397 permanent stalls, along with wash racks and in integrated public address system.

Left: Golden Spike Arena

Right: Indoor Riding Arena


30


CAM-PLEX Event Facilities (Gillette, WY)

The CAM-PLEX Event Facilities have a variety of indoor and outdoor equine facilities that host regional and national horse shows and events. The East Pavilion is a 52,500 square foot, clear span building that contains a 120’ by 270’ dirt arena. It is heated but has no air conditioning. It has 5 overhead utility doors, 4,000 square feet of common service area, 2 self-contained, fully enclosed concession areas, restrooms and an outdoor wash rack. This complex has 1,560 stalls – 1,210 permanent covered stalls and 350 stall with canvas covering. This facility also has an outdoor grandstand (seats up to 3,000 people) with a 150’ by 250’ timed event arena with full chutes for rodeos. There are also 180 RV sites near the facilities and another 1,500 plus RV sites located in other parts of the complex.

Some of the events and activities held at this facility include the North American Dog Agility competitions, World Horseshoe Pitching Tournament, O-Mok-See Horse Show, WRCHA Snaffle Bit Futurity, USTRC Team Roping, NRCA Finals Rodeo, National Cowboy Mounted Shooters Competition and, on a rotating basis, the National High School Finals Rodeo.

Cheyenne Civic Center (Cheyenne, WY)

The Cheyenne Civic Center is a 1,500 seat, multi-tiered, music and stage theater that is host to the Cheyenne Symphony Orchestra, as well as a variety of concerts, stage shows and acts. Some of these acts during the 2006 – 2007 season include Suzanne Somers, Rodney Carrington, Latin Jazz Showcase and a production of Joseph and the Amazing Technicolor Dreamcoat.


31


Casper Events Center (Casper, WY)

The Casper Events Center is a multi-use arena facility that can seat up to 10,140 people for boxing, concerts in the round and wrestling tournaments. The main arena floor is 120 feet x 235 feet (28,200 square feet with seats fully retracted), which can accommodate a total of 154, ten feet by ten feet exhibition booths. With seats fully extended, floor space totals 20,253 square feet. Concourse exhibition space is approximately 7,900 square feet, capable of handling 54, ten feet by eight feet (10' x 8') exhibit booths and 24, six feet by ten feet (6' x 10') booths. There are five meeting rooms (6,204 square feet), which can provide an additional 24 ten by ten (10' x 10') exhibit booths.

Events held at the Casper Events Center include high school tournaments, concerts, trade shows, consumer shows, moto-cross and arena cross, horse shows, car shows, touring Broadway shows, hunting and fishing shows, and the College National Finals Rodeo.

Central Wyoming Fairgrounds Arena (Casper, WY)

The Arena at the Central Wyoming Fairgrounds is a 76,875 square foot structure with a 148’ by 275’ dirt floor. This building has 1,676 seats with backs and 412 box seats, as well as full climate controls. Events in this facility include rodeos, horse shows, concerts, team ropings, and similar activities.


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Below is a summary of key pricing for arena/equine facilities for the competitive and comparable facilities.

Facility Rented Casper Events Center Central WY Fairgrounds CAM-PLEX Event Facility Golden Spike Arena

Arena/Pavilion Rental Ticketed Events $1,100 per day for full arena $320 per day - for profit $775 per day, plus$2,500 vs. 10% of gross $1.50 per ticket sold forwith a $8,500 cap plus $600 per half day for full arena $150 per day - non-profit ticketed events4% box office fees ($2,500 cap) plus$1.00/ticket or $1.00 per count $900 per day for arena floor

only with no chutesTrade Shows

$1,800 per day plus $500 per half day for arena$28 per booth plus floor with no chutes$1.00 per turnstile count

Meetings w/o meals$2,500 per day plus$1.00 per turnstile count

Source: Listed Facilities

Sweetwater Events ComplexKey Pricing Components of Competitive/Comparable Facilities

As shown in the above table, both the Casper Events Center and the Golden Spike Arena have a ticket/turnstile surcharge, ranging from $1.00 to $1.50 for ticketed events, as well as for consumer shows, trade shows and meetings.


33


Summary Observations

On the basis of our review of competitive and comparable facilities, we noted the following:

! The SEC has little competition from local facilities for exhibit facility events– it has the largest existing and potential exhibit space in the County.

! The SEC is very competitive with other horse facilities in the Rocky Mountain region, though lacking facilities to hold larger shows – both in terms of arena space and RV sites.

! Many of the concerts, musical acts and touring groups which route through Cheyenne, Denver, Casper and Salt Lake City could be held in Rock Springs.


34

Potential Use Assessment

In addition to the factors affecting demand for the Proposed Arena (location, economic and demographic trends and competitive factors), a few other factors were assessed to determine the market potential for the Proposed Arena.

Available Entertainment Dollars

The US Department of Labor conducts annual surveys of consumers to identify expenditure patterns of incomes of households. We analyzed the average annual expenditures of consumer units (households) for the years 2002 to 2004, as reported by the US Department of Labor. Our analysis focused on the income levels comparable to the Sweetwater County area, as well as regional trends. Based on this analysis, it is estimated that between 4.0 and 4.5 percent of household incomes are spent on entertainment. Entertainment expenditures include fees and admissions (including spectator events, movies, movie rentals, club memberships, etc.), purchases of TV, radio and sound equipment, toys, games, pets and pet supplies and sports and recreation activities and equipment (boats, trailers, video games, etc.). The total personal income of Sweetwater County in 2004 was approximately $1.3 billion, according to the Bureau of Economic Analysis. Using the 4.0% to 4.5% for expenditures on entertainment, the estimated annual spending in Sweetwater County would range between $52 million and $59 million, of which the Proposed Arena could garner a fairly good share.


35

Potential Use Assessment (continued)

Comparable Routings of Shows and Acts

Concert acts, family shows, wheel events and similar touring productions typically travel a circuit or route that takes them from venue to venue. In the case of family shows, most have multiple troupes that play in different geographical regions. We reviewed the routings of these touring productions and concerts to determine if these acts play in locations that take advantage of regional routings that may pass through the Rock Springs area. Doodlebops Live, Disney on Ice, Sesame Street Live, the Wiggles, Barnum and Bailey Circus, the Harlem Globetrotters and others were included in the assessment.

Our review of touring schedules indicates that many of the touring shows and acts play in a Denver/Casper/Billings/Salt Lake City/Boise routing circuit. A facility in the Rock Springs market would complement the routings of concert performers, Broadway productions, circuses, sporting events and others.

For wheel events, assessments of indoor arena events, like BMX, motocross, monster trucks, truck and tractor pulls and similar events, show a similar routing schedule as family shows. SFX Motor Sports, a division of the SFX Entertainment company, produces events throughout the United States. These events include Super Cross, Arena Cross, Road Race, CCS Racing, Monster Trucks and others. Checkered Flag Productions is a regional promoter of indoor motor sports, also – staging events at the Casper Events Center, Metra Park (Billings, MT) and Loveland Colorado. Combined with the existing BMX and Moto-Cross races held at the SEC, additional wheel events could be attracted to use the Proposed Arena.


36


On the basis of factors affecting demand for facilities at the Sweetwater Events Complex (location, area economics and demographics, competitive factors), interviews and surveys of current and potential users of Fair Park facilities and our assessment of the potential market opportunities for the SEC, we believe the following market opportunities exist for the Proposed Arena:

Concerts and spectator events – medium to strong market potential With the fast growing population of Rock Springs and Sweetwater County, coupled with high median household incomes, limited entertainment options and event routings, the best opportunity for use of the Proposed Arena is with concerts, indoor motor sports, touring shows and productions, semi-pro wrestling/boxing, rodeos and bull rides and similar spectator events. The greatest issue will be either finding the right promoters for these events or developing an in-house approach to producing them.

Equine activities – medium market potential SEC’s greatest potential for attracting horse shows and events is through expansion of its existing customer base, adding breed shows; both state and multi-state, unrestricted shows. In addition, SEC’s location and support amenities make it an attractive location for regional breed shows, something the complex has not attracted in recent years. There are a number of breeds that currently do not use SEC, including Quarter Horse, Paints, Appaloosas, Miniatures, Buckskins and others. To be successful in attracting national events, such as the College National Finals Rodeo, National High School Finals Rodeo, Little Britches Rodeo or others, additional on-site RV camp facilities need to be developed.

Local/regional consumer and industry trade shows – medium market potential, but needs development While several consumer and public shows are held each year at the SEC, including a home show, gun show, motorcycle swap show, car show and a few others, the opportunity exists to host more of these events that appeal to the growing local County populace. Examples of these shows include an outdoor recreation show, arts & crafts show, seasonal shows and others. In addition, with the strong presence of the mining industry in southwestern Wyoming, significant opportunities exist to team with the Sweetwater County Travel & Tourism Board to attract mining related trade and industry shows and conferences to use the Proposed Arena and other SEC facilities.


37


High School Activities – weak to medium market potential There are a number of high school activities that either rotate locations throughout the state or are held in locations awarded through a bid process. These activities include district/regional and state sports tournaments, as well as conferences and competitions. According to a representative of the Wyoming High School Activities Association (the WHSAA), the Proposed Arena would probably be too small for state high school basketball and wrestling tournaments – though there is the possibility of separating the different class of play (i.e., 4A, 3A, 2A, 1A). Sweetwater County has two high schools, Rock Springs and Green River, both of which are in the south 4A district – along with Cheyenne Central, Cheyenne East, Evanston, and Laramie. District tournaments rotate every year between the six schools/communities.

According to the WHSAA representative, basketball, wrestling, and volleyball are sporting events that could be held in the Proposed Arena, as well as marching band competitions, drama competitions, FFA and others. The drama competitions have been held the last two years in Rock Springs and the 4A regional volleyball tournament is scheduled to be held at the Rock Springs High School in October 2006.

While state basketball, wrestling and volleyball tournaments are awarded through a bid process, the success of getting any of these tournaments in Rock Springs is predicated on the quality of the bid, the willingness of the WHSAA to split up the tournament classes, and the ability to persuade the selection committee(s) that the location of Rock Springs will not be an inhibitor to attendance.

Another possible use of the Proposed Arena is for indoor track meets and events – specifically the WHSAA Indoor Track Championship and regional, youth-oriented meets. The Championship, currently held at the War Memorial Fieldhouse on the University of Wyoming campus in Laramie – the only facility in Wyoming that can host this event – is in its second year of existence and attracts between 500 and 600 participants and about 500 spectators. According to Mr. Ted Schroeder, track coach and teacher at the Rock Springs High School, the ideal size and type of track is 200 meters with a Mondo surface, which would make it a much more appealing venue for the Championship than the 162 meter track at the Fieldhouse.


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The 200 meter indoor track is a standard at other regional venues such as Utah State University (Logan, UT), Weber State University (Ogden, UT), Idaho State University (Pocatello, ID), and the Idaho Center Sports Center (Nampa, ID). Discussions with a representative of the WHSAA indicated the possibility that new facilities under construction at the CAM-PLEX Facilities in Gillette, WY may accommodate indoor track and field events.

According to Mr. Schroeder, the Simplot Games held at the Holt Center on the campus of Idaho State University draws significant numbers of participants from Colorado – participants that he believes would opt for meets in Rock Springs rather than driving all the way to Pocatello or in addition to driving to Pocatello. The WHSAA representative provided bid documentation which is included in Exhibit D of this report.

Other Events and Activities Beyond the general categories discussed above, addition uses of the Proposed Arena include high school graduations, large public assembly events, indoor soccer, and similar activities.


39

Event Potential

Our assessment of the potential market segments identified the following events and activities that could be attracted to use the Proposed Arena at the SEC on an annual basis: Spectator and Sporting Events ■ 4 to 6 concerts

■ 4 to 6 motor sports events

■ 2 circuses

■ 2 rodeo/bull rides

■ 2 to 3 pro/semi pro wrestling/boxing

■ 2 to 3 play productions

■ 2 to 3 touring shows

■ 4 to 5 high school activities (2 to 3 day events) and indoor track events

Consumer and Industry Trade Shows ■ 3 to 4 consumer shows (2 to 3 day events)

■ 4 to 6 industry trade shows/conferences (3 to 4 day events)

Horse Facility Activities ■ 2 to 3 regional horse shows, averaging 250 horses over 3 days

■ 1 to 2 regional/national horse shows, averaging 400 horses over 5 days


40

Facility Recommendations

To successfully attract and retain the events and activities shown on the previous page, the following facility components of the Proposed Arena are recommended:

! 4,000 to 5,000 fixed seats ! 125' by 250' floor (minimum) 1 ! 3,000 to 4,000 square feet of breakout meeting

space ! Concourse area for additional exhibit space ! Dressing rooms with showers ! Hospitality room ! Concession stands ! Scoreboard and signs ! Box office and ticket windows ! Ability to install portable ice making equipment ! Heated, maybe air

1 Should the SEC decide to outfit the Proposed Arena for indoor track events, the minimum floor size would need to be 200’ by 300’ to accommodate the 200 meter track, as well as other areas for indoor track events (i.e., pole vault, shotput, long jump, etc.). The track itself can be either a flat surface or a removable high bank oval. The removal track would have a greater cost and would require storage and set up and take down. The flat track could be covered prior to covering with dirt for horse shows and motor sports events. There is some question about the potential mixing of a fixed Mondo floor surface with dirt or the ability to put on ice shows.

! Portable staging ! Portable basketball flooring and basketball

hoops ! Physical attachment to existing Exhibit Hall

Sweetwater Events Complex Financial Feasibility Analysis

41

Overview

This section presents the projected cash flows before debt service for the recommended facilities for the Sweetwater Events Complex.

The projected statements of revenues and expenses are based on (1) the projected utilization of the recommended facilities, recommended rental rates and operating policies presented in this document, (2) the estimated revenues that could be realized from operating the recommended facilities and (3) the estimated expenses associated with operating the improvements and additions. The projections, and assumptions herein, represent revenues and expenses associated with operating the recommended facility components. There will usually be differences between the estimated and actual results because events and circumstances frequently do not occur as expected, and those differences may be material. The projections of incremental net cash flow, before insurance and debt service, for the Recommended Facilities are presented on page 43. These projections are presented in current year dollars and do not reflect any increase due to inflation.


42

Recommended Rental Policy Actions

Based on the rental rates of competitive and comparable facilities in the Rocky Mountain region, the following pricing structure is recommended for the Proposed Arena.

Arena - Ticketed Events Arena - Consumer and Trade Shows Horse Shows Meeting Rooms

The greater of $2,500 or 10 percent of gross ticket sales with a $7,500 cat, plus $1.00 per ticket sold or turnstile count.

$1,500 per day plus $0.25 per square foot of exhibit/trade show space that is rented to exhibitors, plus $1.00 turnstile count.

$1,200 per day, plus stall fees of $15 per stall

$100 per day for each meeting room or $50 per hour when rented separate from the rest of the building.

Reimbursement of box office costs, security costs and janitorial costs.

Reimbursement of box office costs, security costs and janitorial costs.

Reimbursement of dirt prep and clean-up costs, security costs and janitorial costs.

Sweetwater Events ComplexRecommended Daily/Event Pricing of Proposed Arena Components

Recommended Marketing We believe that to attract the potential events and activities listed on page 39, it is critical that the SEC staff extensively coordinates its marketing efforts with the Sweetwater County Travel and Tourism Board to assemble bids for trade shows, high school activities and national horse events. Concert and spectator event promoters, as well as consumer show promoters, need to be found to successfully stage these types of events.


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Projected Revenues and Expenses

To the right is a presentation of the potential revenues and expenses associated with operating the recommended arena, based on the events and activities shown on page 39, in their third year of operation – considered the stabilized year of operation. All amounts are presented in 2006 current year dollars.

Low HighScenario Scenario

Operating RevenuesFacility rental income

Spectator events $168,000 $227,000Consumer and trade shows 95,000 133,000Equine events 74,000 131,000

Concession incomeSpectator events 49,000 65,000Consumer and trade shows 16,000 21,000Equine events 5,000 9,000

Advertising and sponsorships 30,000 40,000Total revenues 437,000 626,000

Operating ExpensesSalaries, wages & benefits 189,000 189,000Utilities 100,000 120,000General & administrative 15,000 20,000Supplies 10,000 15,000Repairs and maintenance 25,000 40,000Advertising 35,000 50,000Contractual services 30,000 50,000Total expenses 404,000 484,000

Net incremental cash $33,000 $142,000

Sweetwater Events ComplexProjected Operating Revenues and Expenses

Stabilized Year of Operations


44

Revenue Assumptions

This section presents the underlying assumptions for the projected revenues shown on the previous page.

Facility Rental Income

Ticketed Events

The projected revenues from ticketed events is based on the recommended rental rate structure described on page 42 and the range and types of ticketed events presented on page 39, assumed number of tickets sold and average ticket prices as shown below. The rental income for these events are based on the greater of $2,500 per day/performance or 10 percent of gross ticket sales (maximum of $7,500), plus $1.00 for every ticket sold or turnstile count.

Low Scenario Number ofNumber of Days or Total Days or Average Total Average

Event Type Events Performances Performances Attendance Attendance Ticket PriceConcerts 6 1 6 3,500 21,000 $25.00Motor Sports 4 1.5 6 4,000 24,000 $18.00Circuses 2 1 2 2,500 5,000 $8.00Rodeos/Bull Rides 2 1 2 2,500 5,000 $18.00Wrestling/Boxing 2 1 2 1,000 2,000 $15.00Musical Play Productions 2 1 2 2,000 4,000 $20.00Touring Shows 2 1 2 3,000 6,000 $20.00High School Activities 2 2 4 2,500 10,000 $8.00

High Scenario Number ofNumber of Days or Total Days or Average Total Average

Event Type Events Performances Performances Attendance Attendance Ticket PriceConcerts 8 1 8 3,000 24,000 $25.00Motor Sports 6 1.5 9 3,500 31,500 $18.00Circuses 2 1 2 2,500 5,000 $8.00Rodeos/Bull Rides 2 1 2 2,500 5,000 $18.00Wrestling/Boxing 3 1 3 1,000 3,000 $15.00Musical Play Productions 3 1 3 2,000 6,000 $20.00Touring Shows 3 1 3 3,000 9,000 $20.00High School Activities 3 2 6 2,500 15,000 $8.00

For purposes of the financial projections, due to the uncertainty of the physical layout and compatible use issues with for an indoor track as well as the costs of hosting such events (including bid costs), no revenues or expenses have been included relating to any potential indoor track meets being held in the Proposed Arena.


45

Revenue Assumptions (continued)

Consumer and Industry Trade Shows

The facility rental from additional consumer shows and industry trade shows, presented on page 39, is based on the recommended rental rate structure for these events as shown on page 42 and the assumed attendance and exhibitor information as shown in the following table. The daily rental rate charge is assumed to be $1,500 plus a $0.25 charge per square feet of exhibit space rented to outside exhibitors/vendors. In addition, for consumer shows, it is assumed that the SEC would collect $1.00 for every person attending these events.

Low Scenario Number of EstimatedNumber of Event Total Event Average Total Exhibit Space

Event Type Events Days Days Attendance Attendance Per ShowConsumer Shows 3 2.5 7.5 2,500 18,750 30,000Trade Shows 4 3.5 14 800 11,200 15,000

High Scenario Number of EstimatedNumber of Event Total Event Average Total Exhibit Space

Event Type Events Days Days Attendance Attendance Per ShowConsumer Shows 4 2.5 10 2,500 25,000 30,000Trade Shows 6 3.5 21 800 16,800 15,000


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Equine Events The facility rental from additional equine events, presented on page 39, is based on the recommended rental rate structure for these events as shown on page 42 and the assumed attendance and horse stalls as shown in the following table. The daily rental rate charge is assumed to be $1,200 plus stall fees of $15 per night and RV camp fees of $15 per night.

Facility RentalLow Scenario

Number of Number of Total Event Number of Number ofEvents Event Days Days Stalls/Night People/Show

Regional Horse Shows 2 3 6 250 625National Horse Events 1 5 5 400 1,200

High ScenarioNumber of Number of Total Event Number of Number of

Events Event Days Days Stalls People/ShowRegional Horse Shows 3 3 9 250 625National Horse Events 2 5 10 400 1,200

RV Site IncomeNumber of Nightly Number of Nightly

Event Type Sites Rate Sites RateRegional Horse Shows 300 $15.00 450 $15.00National Horse Events 250 $15.00 500 $15.00

Low Scenario High Scenario


47


Concession Income Concession income is expected to be generated from the sale of concessions for horse shows, spectator events and consumer/public shows. The table below details the assumed sales per person for the various events that are assumed to be held at the Proposed Arena.

Concession IncomeAssumptions

Total Assumed Total AssumedEvent Type Attendance Per Caps Attendance Per CapsTicketed Events

Concerts 21,000 $1.00 24,000 $1.00Motor Sports 24,000 $1.50 31,500 $1.50Circuses 5,000 $1.00 5,000 $1.00Rodeos/Bull Rides 5,000 $1.00 5,000 $1.00Wrestling/Boxing 2,000 $1.00 3,000 $1.00Musical Play Productions 4,000 $1.00 6,000 $1.00Touring Shows 6,000 $1.00 9,000 $1.00High School Activities 10,000 $2.00 15,000 $2.00

Consumer and Industry ShowsConcerts 18,750 $2.50 25,000 $2.50Trade Shows 2,560 $15.00 3,840 $15.00

Equine EventsRegional Horse Shows 3,750 $2.00 5,625 $2.00National Horse Events 5,625 $2.00 12,000 $2.00

Low Scenario High Scenario

For these concession sales, it is assumed that the SEC would enter into a contract with a third party vendor to provide all interim concessions that would pay 25 percent of gross concession sales to the SEC. For trade shows, it is assumed that the concession sales related to banquets and the SEC would receive 10 percent of to sales for these events.


48


Advertising and Sponsorship Revenues These revenues represent the estimated revenues that could be realized from sponsors and advertisers of events and activities held at the SEC, including building signage, event sponsors and naming rights.


49

Expense Assumptions

Projected operating expenses for the recommended facilities are based on the cost of operating the existing SEC facilities, a recommended staffing plan and the required marketing expenditures to successfully attract and retain events and activities identified in this study. A description of the nature of the operating expenses is presented below.

Salaries, Wages and Benefits – Salaries and wages represent the estimated expenditures for staff to manage market and operate the recommended exhibition building and improved facilities at the SEC, as shown in the following table.

Staff Position SalaryEvent Coordinator $40,000Receptionist 25,000Maintenance Staff 35,000Maintenance Staff 35,000

$135,000Taxes and Benefits @ 40% 54,000Total Personnel Costs $189,000

Sweetwater Events ComplexEstimated Personnel Costs

Utilities – Utility costs include electricity, gas, water, sewer and trash removal for the operation of the recommended facilities.

General and Administrative – General and administrative expenses cover the incremental costs of operating the recommended facilities, including supplies, travel, postage, telephone, equipment rentals, and other costs.


50

Expense Assumptions (continued)

Supplies – Supply costs include supplies used in the operation and maintenance of the facilities, such as rest room supplies and those supplies used in cleaning and maintaining the facilities.

Repairs and maintenance – Repairs and maintenance costs include the cost of normal repairs and maintenance of the facilities; not extraordinary costs associated with new facilities.

Advertising – Advertising and marketing costs include the cost of brochures and mailings, travel and advertising in trade publications and other direct marketing expenses.

Contractual Services – These costs represent the estimated cost of contract labor to assist in set-up, tear down and clean up related to events held in the recommended exhibition building and expanded equine facilities.

Exhibit A

Exhibit A

A - 1

Arial Rendering of Proposed Arena and Existing Exhibit Hall

Exhibit A

A - 2

Layout Rendering of Proposed Arena and Existing Exhibit Hall

Exhibit A

A - 3

Side Elevation of Proposed Arena

Exhibit B

Exhibit B

Market Area 1980 1990 2000 2005 2010 2020

Sweetwater County 42,400 38,823 37,613 37,975 38,558 39,485 Campbell County 25,200 29,370 33,698 37,405 40,370 46,529 Laramie County 69,000 73,142 81,607 85,163 88,951 95,440 Natrona County 72,600 61,226 66,533 69,799 72,457 78,459

State of Wyoming 417,624 453,591 493,782 509,294 523,919 556,216

Sweetwater County Events ComplexHistorical and Projected Population, 1980 to 2020

Source: U.S. Census Bureau, Wyoming Department of A & I, Economic Analysis Division December 2005

B - 1

Exhibit B

Market Area 1980 - 1990 1990 - 2000 2000 - 2010 2010 - 2020

Sweetwater County -8.4% -3.1% 2.5% 2.4%Campbell County 16.5% 14.7% 19.8% 15.3%Laramie County 6.0% 11.6% 9.0% 7.3%Natrona County -15.7% 8.7% 8.9% 8.3%

State of Wyoming 8.6% 8.9% 2.9% 6.2%Source: U.S. Census Bureau, Wyoming Department of A & I, Economic Analysis Division

Percentage of Change Market Area Percentage Change

Sweetwater County Events Complex

B - 2

Exhibit B

Market Area 1980 - 1990 1990 - 2000 2000 - 2010 2010 - 2020

Sweetwater County -3,577 -1,210 945 927Campbell County 4,170 4,328 6,672 6,159Laramie County 4,142 8,465 7,344 6,489Natrona County -11,374 5,307 5,924 6,002

State of Wyoming 35,967 40,191 30,137 32,297Source: U.S. Census Bureau

Sweetwater County Events Complex Market Area Amount of Change

Amount of Change

Source: State of Wisconsin - Department of Administration

B - 3

Exhibit B

Percent ChangeMarket Area 1990 2000 1990 - 2000

Sweetwater County $36,664 $46,618 27.1%

Campbell County $37,130 $49,627 33.7%

Laramie County $27,630 $39,658 43.5%

Natrona County $27,708 $36,745 32.6%

State of Wyoming $27,195 $38,181 40.4%

Source: U.S. Census Bureau



Campbell County $39,322 $54,854 39.5%

Laramie County $32,935 $47,877 45.4%

Natrona County $33,019 $46,517 40.9%

State of Wyoming $32,471 $47,801 47.2%

Source: U.S. Census Bureau

Sweetwater County Events ComplexAverage Household Income Trends, 1990 and 2000

Sweetwater County Events ComplexMedian Household Income Trends, 1990 and 2000

B - 4

Exhibit B



Campbell County $53,903 $61,168 13.5%

Laramie County $47,706 $53,986 13.2%

Natrona County $46,244 $52,199 12.9%

State of Wyoming $47,065 $53,214 13.1%

Source: Survey of Buying Power



Campbell County $50,815 $60,338 18.7%

Laramie County $49,809 $59,184 18.8%

Natrona County $42,704 $50,670 18.7%

State of Wyoming $42,286 $48,693 15.2%

Source: Survey of Buying Power

Sweetwater County Events ComplexRetail Sales per Household Projections, 2005 and 2010

Sweetwater County Events ComplexAverage Household Effective Buying Income, 2005 and 2010

B - 5

Exhibit B

Industry 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005Construction 1,350 1,293 1,601 1,604 1,679 9.0% 8.8% 10.3% 9.7% 9.6%Manufacturing 1,374 1,233 1,171 1,148 1,162 9.2% 8.4% 7.5% 6.9% 6.7%Trade, Transportation, Utilities 2,896 2,963 3,001 3,175 3,293 19.4% 20.2% 19.3% 19.2% 18.9%Information 212 213 218 224 217 1.4% 1.5% 1.4% 1.4% 1.2%Financial Activities 316 356 371 359 359 2.1% 2.4% 2.4% 2.2% 2.1%Professional and Business Services 1,156 1,125 1,244 1,350 1,433 7.7% 7.7% 8.0% 8.2% 8.2%Education and Health Services 771 795 843 891 891 5.2% 5.4% 5.4% 5.4% 5.1%Leisure and Hospitality 2,025 1,990 2,087 2,256 2,280 13.6% 13.6% 13.4% 13.6% 13.1%Government 4,383 4,246 4,552 5,076 5,671 29.4% 29.0% 29.3% 30.7% 32.5%Other Services 450 449 465 459 454 3.0% 3.1% 3.0% 2.8% 2.6%

Total Employment 14,933 14,663 15,553 16,542 17,439 100.0% 100.0% 100.0% 100.0% 100.0%

Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW)

Sweetwater County Events ComplexEmployment by Industry for Sweetwater County, WY 2001 - 2005

Percent of Labor ForceTotal Employed

B - 6

Exhibit B

Market Area 2000 2001 2002 2003 2004 2005Sweetwater County

Civilian labor force 20,714 20,911 20,420 21,266 21,846 22,714 Employment 19,890 20,084 19,553 20,372 21,087 22,000 Unemployment 824 827 867 894 759 714 Unemployment rate 4.0% 4.0% 4.2% 4.2% 3.5% 3.1%

State of WyomingCivilian labor force 266,882 269,985 271,280 275,305 279,474 284,538 Employment 256,685 259,508 260,057 263,097 268,599 274,362 Unemployment 10,197 10,477 11,223 12,208 10,875 10,176 Unemployment rate 3.8% 3.9% 4.1% 4.4% 3.9% 3.6%

United StatesCivilian labor force 139,368,000 142,583,000 143,734,000 144,863,000 147,401,000 149,320,000Employment 133,488,000 136,891,000 136,933,000 136,485,000 139,252,000 141,730,000Unemployment 5,880,000 5,692,000 6,801,000 8,378,000 8,149,000 7,591,000Unemployment rate 4.2% 4.0% 4.7% 5.8% 5.5% 5.1%

Source: DWD, Bureau of Workforce Information, Local Area Employment Statistics, September 2005

Sweetwater County Events ComplexCivilian Labor Force, 2000 - 2005

B - 7

Exhibit B

Employer Name Type Location Total JobsFMC Wyoming Corporation Trona, Mining & Processing 844Halliburton Oil Field Service 755Sweetwater County School District No. 1 Public School 720General Chemical Company Trona, Mining & Processing 531Solvay Minerals Trona, Mining & Processing 428OCI Trona, Mining & Processing 412PacificCorp Power Generation 393Memorial Hospital Health Care 372Schlumberger Pumping & Well Service Oil Field Service 335Bridger Coal Surface & Underground Mine 319

Source: SWEDA

Sweetwater County Events Complex

Major Employers 2006Sweetwater County, WY

B - 8

Exhibit B

Exhibit B

42,400

25,200

69,00072,600

38,823

29,370

73,142

61,226

37,61333,698

81,607

66,533

37,97537,405

85,163

69,799

38,558

40,370

88,951

72,457

39,485

46,529

95,440

78,459

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Num

ber o

f Peo

ple

1980 1990 2000 2005 2010 2020Year

Sweetwater County Events ComplexHistorical and Projected Population, 1980 to 2020

Sweetwater County Campbell CountyLaramie County Natrona County

Source: U.S. Census Bureau, State of Wyoming Department of Administration

Exhibit B

Exhibit B

Sweetwater County Events ComplexPopulation Amount of Change, 1980 to 2020

-11,374

927945

-1,210

-3,577

4,170

4,3286,159

6,672

4,142

8,465

6,489

7,344

5,307

6,0025,924

-15,000

-10,000

-5,000

0

5,000

10,000

1980 - 1990 1990 - 2000 2000 - 2010 2010 - 2020

Years

Num

ber

Sweetwater County Campbell County Laramie County Natrona County

Exhibit B

Exhibit B

$38,667 $39,322

$32,935 $33,019$32,471

$51,776$54,854

$47,877$46,517 $47,801

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Dol

lars

1990 2000Year

Sweetwater County Events ComplexAverage Household Income, 1990 and 2000

Sweetwater County Campbell County Laramie County Natrona County State of Wyoming

Exhibit B

Exhibit B

$36,664 $37,130

$27,630 $27,708 $27,195

$46,618$49,627

$39,658$36,745 $38,181

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

Dol

lars

1990 2000Year

Sweetwater County Events ComplexMedian Household Incomes, 1990 and 2000

Sweetwater County Campbell County Laramie CountyNatrona County State of Wyoming

Exhibit B

Exhibit B

$49,654$53,903

$47,706$46,244 $47,065

$54,655

$61,168

$53,986$52,199 $53,214

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

Dol

lars

2005 2010Year

Sweetwater County Events ComplexAverage Household Effective Buying Income Projections, 2005 and 2010

Sweetwater County Campbell County Laramie CountyNatrona County State of Wyoming

Exhibit B

Exhibit B

$50,916 $50,815 $49,809

$42,704 $42,286

$59,664$60,338 $59,184

$50,670$48,693

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

Dol

lars

2005 2010Year

Sweetwater County Events ComplexRetail Sales per Household Projections, 2005 and 2010

Sweetwater County Campbell County Laramie County Natrona County State of Wyoming

Exhibit B

Exhibit B

Sweetwater County Events ComplexUnemployment Rates, 2000 to 2005

3.1%

3.5%

4.0%4.0%4.2%

4.2%

3.6%

3.9%

3.8% 3.9%4.1%

4.4%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

2000 2001 2002 2003 2004 2005Year

Per

cent

age

of L

abor

For

ce

Sweetwater County State of Wyoming

Source: Wyoming State Employment Security Dept.

Exhibit B

Exhibit B

Sweetwater County Events ComplexCivilian Labor Force and Unemployment Rate, 2000 to 2005

20,714

20,911

20,420

21,266

21,846

22,714

3.1%3.5%

4.2%4.2%

4.0%

4.0%

19,000

19,500

20,000

20,500

21,000

21,500

22,000

22,500

23,000

2000 2001 2002 2003 2004 2005

Year

Civ

ilian

Labo

r For

ce

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Une

mpl

oym

ent R

ate

Source: Wyoming State Employment Security Department

Exhibit B

Exhibit B

Sweetwater County2005 Labor Force and Unemployment Rates

22,105 22,05622,210 22,234

22,77722,687

22,79222,676

23,188

23,419 23,365

23,053

4.0%

2.7%

3.2%3.1%2.9%

3.1%3.3%

3.2%3.2% 3.2%3.0%

3.1%

21,000

21,500

22,000

22,500

23,000

23,500

24,000

Janua

ry

Febru

aryMarc

hApril May

June

July

August

Septem

ber

Octobe

r

Novembe

r

Decembe

r

Month

Size

of L

abor

For

ce

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

Unem

ployment R

ate

Labor Force Unemployment Rate

Exhibit B

Exhibit B

319

335

372

393

412

428

531

720

755

844

0 100 200 300 400 500 600 700 800 900

Number of Jobs

FMC Wyoming Corporation

Halliburton

Sweetwater County School District No. 1

General Chemical Company

Solvay Minerals

OCI

PacificCorp

Memorial Hospital

Schlumberger Pumping & Well Service

Bridger Coal

Sweetwater County Events ComplexTop 10 Employers in Sweetwater County, 2006

Source: SWEDA

Exhibit C

Exhibit CPRIZM NE Household Distribution

Sweetwater Event Complex MedianPresence Household

Code Name Households Pct. Activities Age Ethnicity Ed Level of Kids Income (1) Work Type09 Big Fish, Small Pond 492 3.33% O, G, Tech 55+ Mostly White College+ No Kids $78,915 MG20 Fast-Track Families 1,578 10.67% C, B, F, Tech 35-54 Mostly White College Kids $72,379 MG23 Greenbelt Sports 322 2.18% O, Tech 25-54 Mostly White HS/College No Kids $55,923 WC, BC, Farm25 Country Casuals 964 6.52% T, E 35-64 Mostly White HS/College No Kids $68,718 WC, BC, Farm28 Traditional Times 986 6.67% T, C 55+ Mostly White HS/College No Kids $52,813 Retired32 New Homesteaders 1,842 12.45% C, B, Tech 25-44 Mostly White HS/College Kids $54,331 WC, Ser, BC33 Big Sky Families 530 3.58% O, H, F, Sports 25-44 Mostly White HS/College Kids $54,121 BC, Farm37 Mayberry-ville 2,018 13.64% F, H, B, C, MS 35-64 Mostly White HS/College No Kids $51,655 BC, Farm38 Simple Pleasures 423 2.86% T, Vet 65+ Mostly White HS Mix $40,884 Retired42 Red, White and Blues 679 4.59% AC, MS 25-44 Mostly White HS No Kids $41,164 Ser, BC43 Heartlanders 479 3.24% H, F, C, B, AC, MS 45-64 Mostly White HS Mix $41,061 BC, Farm45 Blue Highways 277 1.87% H, F, AC 35-44 Mostly White HS No Kids $41,929 BC, Farm48 Young and Rustic 934 6.31% MS, Sports <45 White, High Black HS No Kids $31,884 Ser, BC50 Kid Country, USA 879 5.94% Sports, Social <45 White, Hisp HS Kids $40,138 Ser, BC, Farm51 Shotguns and Pickups 231 1.56% H, F, B, MS 25-44 White, AmInd HS Kids $40,722 BC, Farm55 Golden Ponds 250 1.69% AC 65+ Mostly White Elem/HS Mostly No Kids $29,642 Retired56 Crossroads Villagers 484 3.27% F, H, MS <45 Mostly White HS No Kids $31,973 Ser, BC, Farm57 Old Milltowns 694 4.69% AC, Vet, E 65+ White Elem/HS Mix $28,404 Ser, BC58 Back Country Folks 103 0.70% Soc 55+ White Elem/HS Mix $30,641 Ser, BC, Farm64 Bedrock America 626 4.23% H, F, O, C, Social <45 High Hispanic Elem/HS Kids $26,922 Ser, BC, FarmTotal 14,791 100.00%© 2006 CLARITAS INC. All rights reserved.

Activities KeyAC=Arts/Crafts, B=Boating, C=Camping/RV, E=Eating Out, F=Fishing, G=Golf, H=Hunting, MS=Motor Sports, O=Outdoor Activities, T=Travel, Tech=Technology, Soc=Social, Vet=Veteran

Work Type KeyBC=Blue Collar, Farm=Agriculture, Prof=Professional, Ser=Military, WC=White Collar

(1) US Averages for 2005

Households withinSweetwater County

C - 1

Exhibit D

Exhibit D

D - 1

WYOMING HIGH SCHOOL ACTIVITIES ASSOCIATION 731 EAST 2ND STREET

CASPER, WYOMING 82601-2620 (307) 577-0614 * FAX (307) 577-0637

www.whsaa.org TO: THOSE INTERESTED IN SUBMITTING A PROPOSAL FOR WHSAA STATE

CULMINATING EVENTS FROM: RON LAIRD, COMMISSIONER DATE: NOVEMBER 15, 2006 SUBJECT: PROPOSAL PROCESS Please be advised that the WHSAA Board will be entertaining proposals for sites for the following state culminating events for at least the 2008-09 school year. The proposal for the Wyoming State High School Forensics Tournament will be at least for the 2007-08 school year. Proposals will be considered at the February 6-7, 2007, meeting of the WHSAA Board of Directors. A copy of the proposal form is enclosed. Please complete one proposal form per event. Each state culminating event proposal must be submitted by specific sport and will be voted on individually. The Board will consider package proposals involving any combination of events. A proposal may be up to a maximum of three years beginning with the 2008-2009 date. The Board of Directors invites you to submit a proposal for the WHSAA State Events in golf, cross country, girls swimming, gymnastics, nordic ski, indoor track, boys swimming, soccer and the Wyoming State High School Forensics Tournament on their respective dates. Please refer to the current WHSAA Handbook Rule 7.6.83 for cross-country site rotation, Rule 7.10.495 for nordic ski rotation and Rule 7.8.63 for golf site rotation. If the appropriate school site in the rotation does not submit a proposal, the WHSAA Board will entertain other proposals or the event will be re-opened. Note: Tennis, volleyball, alpine ski, wrestling, 1A/2A basketball, 3A/4A basketball and track have been awarded through the 2010-2011 school year.

CULMINATING EVENT 2007-08 DATES +

1. Gymnastics February 8-9, 2008 2. Wyoming State High School Forensics Tournament March 6-8, 2008

(refer to requirements enclosed) 3. 2A Golf September 26-27, 2008 4. 3A Golf* September 26-27, 2008 5. 4A Golf* September 26-27, 2008 6. Cross Country October 25, 2008 7. Girls Swimming October 30-31, November 1, 2008 8. Boys Swimming February 26-28, 2009 9. Nordic Ski February 27-28, 2009 10. Indoor Track March 7, 2009 11. Soccer May 21-23, 2009

*Requires 18 hole courses. All expenses, including practice round fees, must be included in the proposal process. Host site must provide a minimum of one adult monitor per hole. +Please refer to the attached seven-year calendar for other dates.

Exhibit D

D - 2

PROPOSAL PROCESS -- Page 2 There are two options in preparing a proposal. Option 1: Administrative and facility costs and WHSAA revenues may be itemized, with a total amount given. Option 2: You may present a proposal for a percentage of the gate receipts of the event AFTER TAXES. The proposal process will be as follows: All sealed proposals must be delivered to the WHSAA office by January 26, 2007. Proposals sent by mail must be postmarked by January 26, 2007. All proposals will be opened by the WHSAA Commissioner on January 29, 2007, and he will direct staff to put together additional related and/or historical information that might be helpful when the WHSAA Board considers awarding sites on February 6 & 7, 2007. Any individual or group submitting a proposal may make a presentation to the WHSAA Board of Directors. Presentations should be no longer than twenty minutes with ten minutes being allotted after the presentation for questions and answers. Proposals will be made public at the 10:00 a.m., February 6, 2007, Calendar and Culminating Events Committee Meeting. Please indicate if you would like to make a presentation to the Board: Yes. We would like to make a presentation to the WHSAA Board of Directors. We understand that we

are limited to a maximum of twenty minutes for my presentation. No. Our proposal is self-explanatory and we do not need to make a presentation. Other requirements in order to be eligible to host a culminating event:

1. Any entity choosing to advertise at any WHSAA event shall not refer to any tobacco, alcoholic beverage or any product or service, which is contrary to the accepted principles of high school training and the WHSAA.

2. Pepsi has a contract with the WHSAA, which gives them exclusive pouring rights at all WHSAA culminating

events. If the bidding party has existing contracts which would be in conflict with the Pepsi rights set forth above, your bid should identify the conflict under section III.B. and buy out arrangements may be available.

3. The WHSAA will be responsible for providing a memorabilia concessionaire and photographer for those state

culminating events for which sales are feasible.

4. Neither raffles nor other forms of solicitation are allowed at state culminating events. ALL SEALED PROPOSALS MUST BE POSTMARKED BY JANUARY 26, 2007. Please mark your mailing envelopes as follows:

PROPOSALS: STATE EVENTS FOR _______________________________________________ (Indicate sport(s) for which proposals are enclosed.)

The WHSAA reserves the right to accept or reject any and/or all proposals in its sole and absolute discretion. If I may be of further assistance on this or any other matter, please feel free to contact me.

Exhibit D

D - 3

WYOMING HIGH SCHOOL ACTIVITIES ASSOCIATION 731 EAST 2ND STREET

CASPER, WYOMING 82601-2620 (307) 577-0614 * FAX (307) 577-0637

STATE CULMINATING EVENT INVITATION PROPOSAL FORM

Please feel free to attach additional information that would be beneficial to the WHSAA Board.

Tournament: 20

(Event) (Location) (Tournament Date) Group submitting proposal: I. Financial Considerations:

A. OPTION 1

1. Administrative Expenses (Itemize fully unless it is a package deal) Administrative expenses (if any) are normally for the following: One set of nets (if applicable), advertising, signs, postage, telephone, clerical, scorers, and timers. (Volleyball line judges are considered part of the officiating crew and, therefore, are paid for by the WHSAA.)

Total (Item 1) $

2. Use of Facility Expenses (or rental) (Itemize fully unless it is a package deal) Use of facilities expenses (rental) normally include all charges, if any, for the following: Extra custodial services, utilities, ticket sales, ticket takers, door guards, ushers, parking attendants, police/security, first aid, locker room attendants, and towel service.

Total (Item 2) $ 3. Total charges (Items 1 and 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

4. Revenues payable to WHSAA and or WHSAA member schools.

List any incomes and or percentages payable to the WHSAA and/or its member schools from concessions, programs, community development initiatives or other.

Total (Item 4) $ 5. Total charge (-) or payment (+) to WHSAA.

Proposal Total (Difference between Item 3 and Item 4) $

B. OPTION 2 - Administrative and facility expenses will be provided for by 15 percent of gate after taxes.

(over, please)

Exhibit D

D - 4

STATE CULMINATING EVENT INVITATION PROPOSAL FORM -- Page 2 II. General Information:

A. Description of Facility: Seating capacity Number of courts Number of dressing rooms with showers Number of dressing rooms Number of concession areas Other accommodations Name of tournament manager and position

B. Community Accommodations:

Approximate number of hotel/motel rooms Approximate number of eating facilities Other accommodations

C. List any other information which you feel would be in your best interest when the WHSAA Board of Directors

considers this proposal.

III. A. The WHSAA reserves the right to tournament program publication, concessions, and all broadcast rights. These

matters will be coordinated with the tournament director and the host site.

B. Please list any possible local agreements to which you are contracted or any local policies that would interfere with or preclude WHSAA sponsored culminating event corporate sponsorship involvement in program advertising, concession product availability and signage:

C. The WHSAA reserves the right to reject any or all proposals. By: For: Date:

Signature School or City

Exhibit D

D - 5

Proposal process REQUIREMENTS FOR PROPOSALS

THE WYOMING HIGH SCHOOL SPEECH TOURNAMENT The Wyoming High School Activities Association, in conjunction with the Wyoming High School Forensics Association, has formulated criteria to be used to accept proposals for the 2007-2008 State Speech Tournament. 1. Meet Dates: The meet will be held on March 6-8, Thursday through Saturday, 2008. The tabulation room must be

available beginning on the evening (by 5:00 p.m.) of Wednesday, March 5. All other specified rooms are not needed until 12:00 noon on Thursday, March 6. These rooms will be in use until 6:00 p.m. on Saturday, March 8.

2. Competition Rooms: 60 classrooms for competition will be provided throughout the three-day meet as specified

above. Each room should be able to seat at least 14 people. All rooms should be within 15 minutes walking distance from the tabulation area.

3. Awards Assembly Room: A room large enough to seat 800 persons will be provided. This room should also have

a public address system, a podium, and a large table available for the awards assembly Saturday late afternoon. 4. Coaches and Judges’ Lounge: A room large enough to seat 60 persons will be provided. This room should be

supplied with ample chairs, tables and refreshments (coffee, ice tea, finger food, etc.) throughout the three days. 5. Coaches’ Meeting Room: A room large enough to seat 60 persons, supplied with tables and chairs and a

chalkboard will be provided. 6. Tabulation Room: A room to administer, tabulate ballots, etc. will be provided. It should have an available

telephone, at least six large tables, 12 chairs, electrical outlets (for four computers and other equipment) and a photocopy machine capable of making hundreds of copies throughout the meet.

7. General Lounge for Competitors: An indoor area large enough to accommodate all the 800 competitors while they

are not in rounds will be provided. It should be supplied with an adequate seating area. 8. On-Campus Lunch Meals: At least one vendor will serve lunchtime meals for Friday and Saturday to any person

attending the tournament who has made pre-arrangements for service. A pre-seat mealtime schedule will accommodate those who plan to eat while competing or judging.

9. On-Campus Snacks: Additional snacks and beverages will be sold during times when meals are not being served. 10. Off-Campus Vendors: The community will have an ample number of fast food or buffet style providers to

accommodate at least 1,000 persons for other meals (breakfast or supper). 11. Lodging: The community must be able to provide at least 250 hotel/motel rooms at a reasonable rate for one to four

persons. These hotels/motels should be easily accessible for travel and should be no more than 30 minutes driving time from the meet.

12. Judging Pool: At least 30 members of that community should be available to judge rounds of competition. They

should also fill out the judges’ information cards (available from the WHSAA) by a specified deadline set by the tournament director. These persons must be available for all rounds of competition. It is preferred that judges have some background or prior experience judging a speech or debate event (debate, student congress or an individual event: interp., oratory or extemp.). In the event that a judge is unable to attend all three days, additional judges can be pre-scheduled so that there is always at least 30 community judges available. These judges should also have submitted the judging information as specified above.

Extemp. Draw Room: A room capable of seating 60 people will be provided. The seating arrangement must also

provide table space. This room will be available throughout the three-day meet. Internet Access: At least one computer capable of accessing the internet must be available at the tournament site

within 30 minutes walking distance from the tab room. This machine would be used in the event of an evidence challenge.

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