Amusement and recreation construction growth jumped to 11% in 2015 after growing 9% in 2014. FMI’s forecast calls for a slower 8% growth in 2016, which is still strong compared with most sectors. Sports venues are promoted as job creators with the ability to revitalize many dilapidated areas around a city. While many question the return on investment when public money is concerned, America still loves its sports and is willing to invest money to partake in the pastime — whether at the stadium or in front of the big screen TV.
Increasingly, amusement and recreation venues are more like anchor stores or hubs for mixed-use developments. For instance, the Green Bay Packers are building the Titletown District, a mixed-used development adjacent to Lambeau Field. This is not a sports venue, per se, but characteristic of mixed-use development around sports venues. Minnesota Vikings fans await the completion of the new U.S. Bank Stadium, a covered field budgeted at around $1.06 billion. A new, privately funded indoor arena was recently announced by the partnership of AEG and MGM Resorts International. The Las Vegas arena will feature 20,000 seats and is expected to cost $375 million. The Tropicana Las Vegas was sold to Penn National Gaming. According to Meeting and Conventions online magazine, “In the first phase of a 2-part, 3-year to five-year plan, Penn will invest approximately $20 million over the next six to nine months on facility improvements and the integration of the property into its portfolio.” (August 25, 2015)
