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Market Study Summary
Proposed Fargo Convention Center
HVS Convention, Sports & Entertainment Facilities Consulting
April 25, 2025
Convention, Sports & Entertainment
Facilities Consulting
1035 Keystone Ave.
River Forest, IL 60305
+1 312-587-9900
+1 312-488-3631 FAX
www.hvs.com
2
April 25, 2025
Charley Johnson
President
Fargo-Moorhead Convention and Visitors Bureau
2001 44th Street
South Fargo, North Dakota, 58103
charley@fargomoorhead.org Re: Proposed Convention Center
Fargo, North Dakota
Dear Mr. Johnson,
Attached you will find our Proposed Convention Center Market Study in Fargo,
North Dakota.
We certify that we have no undisclosed interest in the property, and our employment
and compensation are not contingent upon our findings. This study is subject to the
comments made throughout this report and all assumptions and limiting conditions
set forth herein.
It has been a pleasure working with you. Please let us know if we can provide any
further assistance.
Sincerely,
HVS Convention, Sports & Entertainment
Facilities Consulting
Thomas A Hazinski
Managing Director
Table of Contents
1) Scope of Study and Project Description
2) Market Assessment
3) Comparable Venues
4) Fargo Event Activity
5) Site Selection Considerations
6) Demand Projections
7) Financial Analysis
8) Assumptions and Certifications
3
4
1) Scope of Study and Project Description
5
•Visit Fargo-Moorhead engaged HVS Convention, Sports &
Entertainment Facilities Consulting (“HVS CSE”) to assess
the development of a convention center in Fargo.
•Our study is intended to inform decisions surrounding a
proposed public-private partnership.
•Our study is subject to the comments made throughout
this report and all assumptions and limiting conditions set
forth herein.
April 25, 2025
Purpose of the Assignment and Scope of Work
Summary of the Scope of Services
Task Description
1 Market As sess ment
2 Hi storical Da ta Ana lysis
3 Compa rabl e and Competitive Facilities
4 Si te Selection Cri teria
5 Demand and Attenda nce Projection Scenarios
6 Fi na ncial Projection Scenarios
6
•The Proposed Fargo Convention Center (“Proposed FCC”) will offer the largest function spaces in Fargo, except for the
FARGODOME. The proposed space’s flexibility would allow the new facility to host various events that cannot be accommodated in
existing venues. For the purposes of this study, we assumed the building program would include
•40,000 square foot exhibit hall
•20,000 square feet ballroom
•7,500 square feet of meeting space
•An adjacent hotel will be necessary to support the marketing and sales of convention and conference events and achieve the
demand levels estimated in this study.
•The proposed convention center will fill an unmet need for larger function space in Fargo.
•The facility will attract state-wide conventions, conferences, and trade shows. Events with primarily local attendance will include
consumer shows, meetings, and banquets.
•Like competitive venues, the proposed FCC will offer dedicated exhibition, banquet, and meeting spaces.
•Like most comparable venues, the Proposed Convention Center will operate at an annual financial deficit absent an annual subsidy.
•Public participation in financing would be based on available lodging tax revenue.
April 25, 2025
Summary of Key Assumptions and Findings
We assume the following amounts of rentable function
space.
•Exhibit hall of approximately 40,000 square feet with
up to three divisions
•Ballroom of approximately 20,000 square feet with
three-sided pre-function space allowing up to seven
divisions.
•A meeting room block of 7,500 square feet with six
divisions and a 600 square foot board room.
April 25, 2025
Building Program Assumptions
7
Rentable Function Spaces*
*The building program could range from 60,000 to 70,000 square feet of rentable function
space.
Capacities
Theatre/
Reception Banquet Classroom Exhbit Booths
10' x 10'
Exhibit Hall 40,000 4,000 2,000 2,760 280
Di vi s ion 1 13,333 1,330 670 920 93
Di vi s ion 2 13,333 1,330 670 920 93
Di vi s ion 3 13,333 1,330 670 920 93
Ballroom 20,000 2,000 1,000 1,380
Di vi s ion 1 6,667 670 330 460
Sub-Di vi si on A 2,222 220 110 150
Sub-Di vi si on B 2,222 220 110 150
Sub-Di vi si on C 2,222 220 110 150
Di vi s ion 2 6,667 670 330 460
Di vi s ion 3 6,667 670 330 460
Sub-Di vi si on A 2,222 220 110 150
Sub-Di vi si on B 2,222 220 110 150
Sub-Di vi si on C 2,222 220 110 150
Meeting Room Block 7,500 750 380 520
Di vi s ion 1 1,250 130 60 90
Di vi s ion 2 1,250 130 60 90
Di vi s ion 3 1,250 130 60 90
Di vi s ion 4 1,250 130 60 90
Di vi s ion 5 1,250 130 60 90
Di vi s ion 6 1,250 130 60 90
Board Room 600
TOTAL FUNCTION SPACE 68,100
Event Space Floor Area
(sf)
Support Space Total Floor
Area (sf)
Total Function Space 68,100
Support Space
Prefunction Area s 24,000
Service Corridors 5,000
Vertica l a nd Horizontal Circula tion 12,000
Ki tchen/Commi s s a ry 10,000
Publ ic Res trooms 7,000
Admi ni strative Offi ces 3,000
Storage 9,000
Mechanical /Electrica l Equipment 17,000
Sub-total Support Space 87,000
Gross Building Floor Area 155,100
Gross Building Floor Areas
April 25, 2025
Exhibit Hall
8
Exhibit Hall Configurations
Dotted lines indicate movable partitions.
40,000 13,333 26,667
20,000 20,000 13,333 13,333 13,333
The Exhibit Hall room would be divisible into
two or three halls.
–a minimum of 21-foot ceiling heights,
–movable walls that provide good
sound separation,
–durable wall and floor finishes,
–rigging points, lights, signs, and
decorations (500-pound live load),
–in-floor utility boxes with
communications and power,
–floor loads of at least 150 lbs. per
square foot,
–variable lighting options with pre-set
and dimming capabilities that are
controllable at the wall panels,
•Three-sided pre-function space
will allow for the maximum
configurations of space.
•Movable partitions allow for nine
configurations with a maximum
of seven rooms.
April 25, 2025
Ballroom
9
Ballroom Room Configurations (square feet)
Dotted lines indicate movable partitions.
20,000 6,667 13,333 6,667 6,667 6,667
2,222 2,222 2,222
13,333 2,222 13,333 2,222 6,667 6,667
2,222 2,222
2,222 2,222 2,222 2,222 2,222
2,222 6,667 13,333 2,222 2,222 6,667 2,222
2,222 2,222 2,222 2,222
4,444
4,444
•A meeting room block would
could be configure in up to six
breakout spaces.
•The largest configuration offers
3,750 square feet and the
smallest offers 1,250 square feet.
April 25, 2025
Meeting Rooms
10
Meeting Room Block Configurations (square feet)
Dotted lines indicate movable partitions.
1,250 1,250 1,250 1,250 1,250 1,250
1,250 1,250 1,250
1,250 1,250
1,2503,750 2,500
3,750
2,500 2,500
•We assume the presence of an
adjacent or connected hotel with
150 to 200 rooms.
•The quality and character of the
hotel should support group
meeting business.
•While full-service hotels typically
support a convention center, in
smaller markets, branded select-
service hotels have successfully
supported the convention
centers in other cities.
•The scope of this study does not
include a hotel market or
feasibility analysis.
April 25, 2025
Adjacent or Connection Hotel
11
Meeting Room Configurations
Lobby of the Hilton Garden Inn Toledo, Ohio
12
3) Market Assessment
13
April 25, 2025
Market Overview
Fargo, North Dakota MSA Population
Source: ESRI
This market area analysis assesses the
economic and demographic data that
provides an overview of the local
economy and trends in the Fargo –
Moorhead Metropolitan Area. These
economic trends serve as indicators of
the potential viability of the proposed
convention center. We conducted an
analysis of the following key economic
indicators: population, income levels,
major businesses, and the existing
supply of competitive venues.
The subsequent slides contain an
infographic snapshot of the region,
offering a concise overview of the
economic and demographic landscape.
Source: ESRI
14
Market Area Population and Income
The Drive Time Economy
April 25, 2025
Drive Times
Source: ESRI
The City of Fargo has a population of approximately 133,000
people, and the MSA population has grown at more than
twice the national rate on an annual basis.
Median household income for the Fargo MSA is lower than
the United States as a whole and has grown at a slower rate
since 2019.
Health Care and Social Assistance, Retail Trade, and State
and Local Government are the strongest sectors in Fargo,
with the former expecting to increase job opportunities by
87% from 2010 by 2029.
Population Median Household Income ($)
2019 2024 2019 2024
60 minutes 335,530 348,790 0.78% 73,714 81,895 2.13%
90 minutes 529,264 543,013 0.51% 72,261 81,097 2.33%
120 minutes 698,957 713,198 0.40% 72,590 81,629 2.37%
Fargo MSA 266,262 279,462 0.97% 74,444 82,188 2.00%
United States 338,440,954 344,873,411 0.38% 79,068 91,442 2.95%
Market/Drive Time Annual Growth Annual Growth
Source: ESRI
15
•Four of the ten largest employers in
the Fargo-Moorhead MSA are in the
healthcare sector
•North Dakota State University and
two public school districts provide
significant employment.
•US Bank, Microsoft, and a
manufacturing company are the
largest private employers outside of
the healthcare sector.
April 25, 2025
Largest Employers in Fargo
Major Employers
Source: Fargo-Moorhead-West Fargo Chamber of Commerce, June 2022
Firm Number of
Employees
Sanford Fargo Medical Center 9,343
North Dakota State University 4,156
Essentia Health 2,690
Fargo Public Schools District 1 1,860
West Fargo Public School District 1,622
Noridian Health Care Solutions 1,511
US Bank 1,213
Fargo VA Health System 1,186
Microsoft 1,024
Integrity Windows and Doors 1,000
16
•The COVID-19 pandemic spiked
unemployment levels across the
nation, but the impact on Fargo was
more moderate.
•Unemployment levels for Fargo MSA
are consistently below the national
average and approximately the same
as the state’s level of unemployment.
•Through February 2025,
unemployment levels have trended
higher, with Fargo and North Dakota
seeing increases above the national
average.
•The unemployment rate for Fargo
and North Dakota is just above 3.0%.
April 25, 2025
Unemployment Statistics
Unemployment Rate (2013—2024)
Source: Bureau of Labor Statistics
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
MSA State Country
17
•Hector International Airport has recovered
since the pandemic. FAR surpassed pre-
COVID passenger traffic levels by 2023 and
continued growth through 2024.
•The Airport serves 11 US destinations with
non-stop service. Minneapolis/St. Paul is the
highest-traveled route.
•Airlines serving FAR include Allegiant Air,
American Eagle, Delta Air Lines, Delta
Connection, Frontier Airlines, and United
Express.
•Construction for a $195 million terminal
expansion and new parking garage began in
July 2024. The 1,000-space parking ramp is
expected to be completed in August 2025.
The additional four gates are scheduled for
completion by 2027.
Hector International Airport (FAR)
Passenger Enplanements
April 25, 2025
Source: Hector International Airport
Year Passenger Traffic Annual Percent Change
2015 859,000
2016 789,000 -8.1%
2017 788,000 -0.1%
2018 844,000 7.1%
2019 940,000 11.4%
2020 479,000 -49.0%
2021 797,000 66.4%
2022 908,000 13.9%
2023 1,032,000 13.7%
2024 1,093,000 5.9%
18
•The Fargo-Moorhead MSA has 61
properties with 5,633 rooms.
•Only the Holiday Inn Fargo has more
than 300 rooms.
•The Holiday Inn Fargo and the Delta
Hotel Fargo are the hotels identified
by Visit Fargo-Moorhead with
meeting space.
April 25, 2025
Hotel Availability in Fargo-Moorhead MSA
Number of Properties and Rooms by Chain Scale
Source: STR
Number of Properties and Rooms by Size of Hotel
Chain Scale
Number of
Properties
Number of Guest
Rooms
Upper Ups cal e
3
293
Upsca le
11
1,206
Upper Mids cal e
12
1,345
Mids cale
14
1,209
Economy
21
1,580
Total 61 5,633
Size (Number of Guest
Rooms)
Number of
Properties
Number of Guest
Rooms
Less than 50
4
139
50 to 99
37
2,805
100 to 199
19
2,381
300 to 399
1
308
Total 61 5,633
Properties Rooms
Hotels Opened 17 1,660
Hotels Cl os ed 8 630
Net Added 9 1,030
Hotels Opened and Closed Since
2013
19
•Most hotels are clustered around
Interstate interchanges.
•The largest hotel concentrations are
in the city's southwest quadrant.
•A convention center will require
additional hotel supply within walking
distance to meet its full potential.
•The 100-room Springhill Suites by
Marriott opened in February 2025.
April 25, 2025
Hotels in Fargo-Moorhead
Hotel Locations in the Greater Fargo-Morehead Area
Source: ESRI
Legend
Hotel
Fargo-Moorhead Meeting and Event Venues
Venue Names, Capacity, Adjacent Hotel Rooms, and Location
Sources: Google Maps, HVS, Respective Venues
April 25, 2025 20
The Fargo – Moorhead MSA does not have a venue with more than
27,000 square feet of dedicated meeting or convention space, as the
largest local venue is primarily used as a football stadium. There is a need
for additional large dedicated space in the market.
Map Key Venue Function Space Hotel Rooms Location
NA Proposed Fargo Convention
Center 68,100 175 TBD
2 FARGODOME 94,900 N/A North Dakota State University
3 Brewhalla 9,000 40 West of Downtown Fargo
4 Jasper Hotel 4,700 125 Downtown Fargo
5 Hjemkomst Center 2,500 N/A Moorhead
6 Ramada by Wyndham Fargo 14,470 173 Interstate 29
7 Radisson Blu Fargo 7,800 151 Downtown Fargo
8 Courtyard Fargo - Moorhead 16,000 126 Moorhead
9 Delta Hotel Fargo 23,000 185 West Acres
10 Holiday Inn Fargo 27,000 308 West Acres
21
•Fargo has limited airlift
capacity, which will limit its
national appeal.
•Most supporting hotel supplies
in Fargo are not in walkable
and pedestrian neighborhoods.
•The existing hotel supply is not
within walking distance of
currently operating event
venues.
•Fargo lacks a large convention
and conference center with
flexible room configurations.
The proposed project would
address this weakness.
Market Assessment Conclusions
April 25, 2025
•The Fargo–Morehead MSA has
a growing population and
income.
•The Fargo MSA is the largest
population center in North
Dakota.
•The MSA’s growing economy is
diverse, with employment led
by healthcare, education, and
corporate entities.
• I-29 and I-94 offer excellent
highway access for state and
regional events.
•A growth in hotel room supply
has been successfully
absorbed.
•The health and technology
sectors offer potential for
meetings, conferences, and
events.
Strengths Weaknesses
•Limited site availability in
walkable neighborhoods.
•Potential negative impacts on
the transient occupancy of
existing lodging properties.
•Nearby competition from the
Alerus Center in Grand Forks.
•High costs of convention center
development.
•Unfavorable credit markets for
the issuance of municipal debt.
•Generate positive urban
impacts and improve
surrounding neighborhoods.
•Increase tourist visitation and
spending by attracting
conventions, trade shows, and
conferences.
•Increase the demand for hotels
in the group and meeting
segment.
•Leverage lodging tax revenues
to support capital
development.
•Private participation in a hotel
and convention center
development.
•Become the premier
convention destination in
North Dakota.
Opportunities Challenges
22
4) Comparable Venues
Comparable Venues
Seven Comparable Regional Venues and Four Comparable National Venues
Source: Respective Venues
April 25, 2025 23
Name of Venue Location
Total
Function
Space
(sf)
Exhibiton
Space
Ballroom
Space
Meeting
Space
Comparable Regional Venues
Duluth Convention Center Duluth, MN 146,088 80,188 38,000 27,900
Alerus Center Grand Forks 137,054 99,600 26,000 11,454
Bismarck Event Center Bismarck 115,911 100,000 0 15,911
Mayo Civic Center Rochester Rochester 115,336 41,010 38,586 35,740
River's Edge Convention Center St. Cloud 87,527 57,620 16,000 13,907
Proposed Fargo Convention Center Fargo 68,100 40,000 20,000 8,100
Mayo Clinic Health System Event Center Mankato 61,878 42,009 13,374 6,495
Denny Sanford Premier Center Sioux Falls 60,510 33,600 16,800 10,110
Comparable National Venues
South Bend Century Center South Bend 71,581 24,472 29,290 17,819
Proposed Fargo Convention Center Fargo 68,100 40,000 20,000 8,100
Tinley Park Convention Center Tinley Park 63,836 39,900 18,650 5,286
Coralville Marriott Coralville 57,588 30,000 22,200 5,388
RiverCenter Davenport 53,751 32,400 13,130 8,221
24
•The Proposed FCC function space
is below average among regional
and is average among national
venues.
•Comparable regional venues are
large convention centers that
utilize arena floors or large
exhibition halls for events.
April 25, 2025
Total Function Space Comparisons
Regional Venues
Sources: Respective Venues
National Venues
Name Location
Duluth Convention Center Duluth, MN 146,088
Alerus Center Grand Forks 137,054
Bismarck Event Center Bismarck 115,911
Mayo Civic Center Rochester Rochester 115,336
River's Edge Convention Center St. Cloud 87,527
Proposed Fargo Convention Center Fargo 68,100
Mayo Clinic Health System Event Center Mankato 61,878
Denny Sanford Premier Center Sioux Falls 60,510
Average (excluding new supply) 103,472
Function Space (sf)
Name Location
South Bend Century Center South Bend 71,581
Proposed Fargo Convention Center Fargo 68,100
Tinley Park Convention Center Tinley Park 63,836
Coralville Marriott Coralville 57,588
RiverCenter Davenport 53,751
Average (excluding new supply) 61,689
Function Space (sf)
25
•Events requiring the simultaneous
use of exhibit, meeting, and ballroom
space would need to divide the
multipurpose space.
•The multi-purpose ballroom space at
the Proposed Fargo Convention
Center would be the largest such
space among the regional venue
competitive set as well as the
national venue comparable set.
•This Proposed FCC would be a unique
venue and add much needed
dedicated meeting and convention
space to the Fargo MSA.
April 25, 2025
Exhibit Hall Comparisons
Regional Venues
Sources: Respective Venues
National Venues
Name Location Exhibit Space (sf) # Halls
Bismarck Event Center Bismarck 100,000 4
Alerus Center Grand Forks 99,600 1
Duluth Convention Center Duluth, MN 80,188 4
River's Edge Convention Center St. Cloud 57,620 3
Mayo Clinic Health System Event Center Mankato 42,009 2
Mayo Civic Center Rochester Rochester 41,010 5
Proposed Fargo Convention Center Fargo 40,000 3
Denny Sanford Premier Center Sioux Falls 33,600 2
Average (excluding new supply) 64,861
Name Location Exhibit Space (sf) # Halls
Proposed Fargo Convention Center Fargo 40,000 3
Tinley Park Convention Center Tinley Park 39,900 3
RiverCenter Davenport 32,400 2
Coralville Marriott Coralville 30,000 1
South Bend Century Center South Bend 24,472 2
Average (excluding new supply) 31,693 3
26
•Events requiring the simultaneous
use of exhibit, meeting, and ballroom
space would need to divide the
multipurpose space.
•The multi-purpose ballroom space at
the Proposed Fargo Convention
Center would be the largest such
space among the regional venue
competitive set as well as the
national venue comparable set.
•This Proposed FCC would be a unique
venue and add much needed
dedicated meeting and convention
space to the Fargo MSA.
April 25, 2025
Ballroom Comparisons
Regional Venues
Sources: Respective Venues
National Venues
Name Location Floor Area SF # Divisions
Mayo Civic Center Rochester Rochester 38,586 3
Duluth Convention Center Duluth, MN 38,000 12
Alerus Center Grand Forks 26,000 5
Proposed Fargo Convention Center Fargo 20,000 7
Denny Sanford Premier Center Sioux Falls 16,800 2
River's Edge Convention Center St. Cloud 16,000 2
Mayo Clinic Health System Event Center Mankato 13,374 3
Bismarck Event Center Bismarck 0 0
Average (excluding new supply) 24,793 5
Name Location Floor Area SF # Divisions
South Bend Century Center South Bend 29,290 3
Coralville Marriott Coralville 22,200 10
Proposed Fargo Convention Center Fargo 20,000 7
Tinley Park Convention Center Tinley Park 18,650 12
RiverCenter Davenport 13,130 2
Average (excluding new supply) 20,818 7
27
•The Proposed FCC’s meeting
space is average for regional
venues.
•Meeting space ranks above the
average amongst national
comparable venues.
April 25, 2025
Meeting Space Comparisons
Regional Venues
Sources: Respective Venues
National Venues
Name Location Floor Area SF # Divisions
Mayo Civic Center Rochester Rochester 35,740 23
Duluth Convention Center Duluth, MN 27,900 18
Bismarck Event Center Bismarck 15,911 16
River's Edge Convention Center St. Cloud 13,907 19
Alerus Center Grand Forks 11,454 12
Denny Sanford Premier Center Sioux Falls 10,110 13
Proposed Fargo Convention Center Fargo 8,100 7
Mayo Clinic Health System Event Center Mankato 6,495 8
Average (excluding new supply) 17,360 16
Name Location Floor Area SF # Divisions
South Bend Century Center South Bend 17,819 18
RiverCenter Davenport 8,221 11
Proposed Fargo Convention Center Fargo 8,100 7
Coralville Marriott Coralville 5,388 10
Tinley Park Convention Center Tinley Park 5,286 7
Average (excluding new supply) 9,179 12
28
•The proposed FCC’s adjacent
hotel room count would be
below the regional and national
venues.
•While this study assumes the
development of a 175-room
adjacent hotel, further hotel
market analysis should
determine the maximum number
of rooms that could be absorbed
into the Fargo-Moorhead lodging
market.
April 25, 2025
Adjacent Hotel Rooms
Regional Venues
Sources: Respective Venues
National Venues
Name Location Adjacent Hotel Rooms
Mayo Civic Center Roches ter Roches ter 409
Ri ver's Edge Convention Center St. Cloud 332
Duluth Convention Center Dul uth, MN 302
Mayo Clinic Heal th System Event Center Manka to 269
Denny Sa nford Premi er Center Si oux Fall s 243
Alerus Center Grand Forks 201
Proposed Fargo Convention Center Fargo 175
Bi sma rck Event Center Bi s ma rck 0
Average (excludi ng new supply) 293
Name Location Adjacent Hotel Rooms
South Bend Century Center South Bend 431
Coral ville Marriott Coralvill e 280
Ri verCenter Davenport 221
Tinley Park Conventi on Center Ti nley Park 202
Proposed Fargo Convention Center Fargo 175
Average (excludi ng new supply) 284
•The Proposed Venue is above average levels of supporting
amenities within its city center.
•Fargo leads cities of comparable venues in Restaurants,
Bars, & Clubs and Recreation & Entertainment. Fargo also
place second among comparable venues in Retail
Establishments.
•Downtown Fargo has ample access to dining, retail,
entertainment, and recreation amenities. Concentration of
amenities can create a convenient environment that
appeals to both event organizers and participants.
Surrounding Amenities
31
April 25, 2025
Retail Establishments
Bismarck 150
Fargo 80
Sioux Falls 80
Mankato 47
Saint Cloud 45
Davenport 43
South Bend 42
Grand Forks 29
Tinley Park 28
Recreation & Entertainment Establishments
Fargo 37
Sioux Falls 35
Mankato 28
Bismarck 27
South Bend 27
Davenport 25
Saint Cloud 16
Grand Forks 11
Tinley Park 9
Restaurants, Bars, & Clubs
Fargo 80
Sioux Falls 74
Bismarck 66
South Bend 66
Saint Cloud 48
Davenport 46
Mankato 37
Tinley Park 26
Grand Forks 21
32
•The Proposed FCC will be below average in size in the comparable regional set. Nonetheless, it will allow Fargo
to compete in the conventions and meetings market.
•The Proposed FCC will be part of a larger complex with planned hotel development, which will make it attractive
to event planners.
•Location near adjacent restaurant, retail, and entertainment amenities in a walkable neighborhood would
increase its attractiveness to event planners.
April 25, 2025
Comparable Venue Conclusions
33
6) Demand Projections
34
•HVS analyzed event information from
hundreds of online and other public
and proprietary data sources as
compiled by Placer.ai.
•Nearly 2 million people attended the
largest 500 events within 10 miles of
Fargo’s city center in the 12-month
period analyzed.
•Sports events generate over one
million attendees.
•The average attendance for
conferences and community events
would be a good fit for the Proposed
Convention Center.
•The Proposed Convention Center has
the potential to capture a fair market
share of existing events in addition to
hosting new events that cannot come
to Fargo due to the lack of adequate
convention space.
April 25, 2025
Fargo Area Event Activity Area Events
Public Events in Fargo (April 2024 – March 2025)*
Source: Placer.ai
*Data is available for up to 500 events. Attendance is estimated based on publicly
available event information and placer.ai locational data.
Event Type Events Est Attendance Avg Attendance
Sports 212 1,051,667 4,961
Concerts 117 207,440 1,773
Expos 72 309,438 4,298
Festivals 56 321,263 5,737
Conferences 20 10,127 506
Performing-Arts 19 64,771 3,409
Community 4 2,739 685
Total 500 1,967,445 21,369
Conventions—associations, government, and SMERFE
organizations register attendees for multi-day events. Facility
set up includes breakout, banquet, and exhibit space set-up,
and may include plenary sessions. Typically, the primary
purpose of a convention is information exchange.
Tradeshows—provide a means for wholesalers and retailers to
transact business with industry buyers. While they also require
exhibit space set-up, they sometimes require banquet, plenary,
and/or breakout space set-up.
Consumer Shows—public, ticketed events featuring the
exhibitions of merchandise for sale or display. Exhibition
companies produce consumer shows, as they provide a means
of product distribution and advertising. They only require
exhibit space set-up. Food and beverage service is limited to
concessions.
Conferences—require a mix of banquet and breakout space
set-up as well as occasional assembly space, but do not require
any exhibit set-up. Any type of organization can conduct
conferences, but they always require attendees to be
registered.
Event Type Definitions
Meetings—only require breakout space set-up. Like
conferences, they can be produced from any of the
organization types, but unlike conferences, they are private
events to which one must be invited. Food service is limited to
coffee breaks, breakfasts, or luncheons in breakout rooms.
Banquets—only require a banquet set-up for food and
beverage meal service. These events also can be produced by
any organizational type and are either are held privately or
require guests to register.
Assemblies—usually involve a ceremony, a speech, or another
similar activity that attracts a crowd of spectators. Produced by
any type of organization, assemblies are always public events.
Additionally, assemblies only require a plenary set-up.
Sports & Competitions—typically require the set-up of a
competition area in a large function space. Attendees to
sporting events, which are usually organized by sports
enterprises, may be public or registered. Some sporting events
have both a registered and public aspect to the event over the
span of a few days.
April 25, 2025 35
In developing the demand projections, we assume that the Proposed Convention Center will open by January 1, 2028. Event
demand would stabilize in the fourth year of operation—2031. This date is a placeholder because the opening date may vary based
on the planning process.
Demand projections also assume the presence of a highly qualified, professional sales and management team for the Proposed
FCC.
We based event demand projections at the Proposed FCC on the following research and analysis:
Key economic indicators and market conditions in Fargo.
Proposed building program and hotel development.
Past interviews with event planners, hotel manager, representatives of Visit Fargo-Morehead and other market participants.
Data on comparable and potentially competitive facilities in the local and regional market area.
Event Demand Estimation Methodology and Assumptions
April 25, 2025 36
37
•Fargo is viewed favorably by meeting planners for North
Dakota-based events.
•Some events based around the petroleum industry have
most of their potential attendees in the western portion
of the state, which disadvantages Fargo. However, as the
largest city in North Dakota, Fargo would still reportedly
be considered a viable host city for these types of events.
•Concern exists about the lack of nearby hotels within
walking distance of current venues.
•The current meeting space offerings in Fargo do not meet
the needs for larger events.
•Large events can theoretically be held at the
FARGODOME, however, the lack of a ballroom or
sufficient breakout meeting space is a hindrance.
•The FARGODOME’s primary tenant, North Dakota State
University football, has priority on the facility during the
autumn months, which makes it difficult or impossible to
host events during these popular months.
April 25, 2025
Key Interview Findings
Interviews
•Visit Fargo-Moorhead
•Charley Johnson
•Mallari Ackerman
•Brewhalla
•Mark Bjornstad
•Kevin Bartram
•FARGODOME
•Rob Sobolik
•North Dakota Petroleum Council
•Micaela Rud
•North Dakota Emergency Medical Services
•Cheryl Flick
•North Dakota League of Cities
•Carissa Richter
*HVS interviewed event planners and stakeholders during it previous
studies. Consequently, a more comprehensive interview process was not
included in the present scope of services. For this study, we relied in part
on our previous findings.
•We project that the Proposed FCC
would attract approximately 200
events annually at stabilization.
•For the purposes of this analysis, we
assume an opening date of January 1,
2028.
•The frequency of each event type and
the average attendance estimates are
based on the performance of
comparable venues and assessment
of the market position and
attractiveness of Fargo as an event
destination.
•The venue would attract
approximately 89,000 attendees each
year.
•The venue would generate
approximately 31,000 annual room
nights in a stabilized year.
Demand Projection Summary
Comparison of Opening and Stabilized Years Event Demand
April 25, 2025 38
Opening
Stabilized
Opening
Stabilized
Opening
Stabilized
2028 2031 2028 2031 2028 2031
Conventions 5 10 1,100 1,100 5,500 11,000
Tradeshows 2 5 1,000 1,000 2,000 5,000
Consumer Shows 10 15 2,000 2,000 20,000 30,000
Conferences 15 20 300 300 4,500 6,000
Meetings 60 100 50 50 3,000 5,000
Banquets 30 40 450 450 13,500 18,000
Assemblies 4 5 750 750 3,000 3,800
Sports & Competitions 5 10 1,000 1,000 5,000 10,000
Total 131 205 56,500 88,800
Event Type
Events Average Attendance Total Attendance
Opening
Stabilized
2028 2029 2030 2031
Occupied Room Nights
Conventi ons 6,000 8,400 10,800 12,000
Tradeshows 1,600 3,300 4,100 4,100
Consumer Shows 1,700 2,200 2,300 2,500
Conferences 4,100 4,700 5,200 5,500
Meeti ngs 100 100 200 200
Banquets 600 700 800 800
Assemblies 100 100 100 100
Sports & Competitions 3,000 4,200 5,400 6,000
Total 17,200 23,700 28,900 31,200
Estimate of Induced Room Night Demand (2028–2021)
39
•We tested the reasonableness of
our demand projections by
analyzing comparable facilities in
similar markets.
•The Proposed FCC event and
attendance projections are within
the range of the comparable venue
average for total events and
attendance.
•Average attendance for
conventions & tradeshows and
conferences will be lower than the
comparable set due to the size of
rentable function space and
available lodging options.
April 25, 2025
Comparable Venue Demand
Average Number of Events
Source: Respective Venues
Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 Comp 7 FCC
2016 2023 2023 2017 2023 2016 2023 2030
Total Rentable Function Space 21,000 72,000 75,000 29,000 53,000 98,000 137,000 68,100
Number of Events
Trades hows 5 9 0 5 0 13 0 8 5
Conventions & Confe rences 28 20 28 8 41 5 0 22 30
Cons umer Shows 8 10 9 22 13 38 21 17 15
Banquets 113 40 8 35 61 112 79 64 40
Meeti ngs 203 138 0 206 158 93 166 161 100
As sembl i es 70 3 12 51 0 50 0 37 5
Sports 0 12 13 3 0 59 0 22 10
Total 427 232 70 330 273 370 266 281 205
Total Excluding Meetings 224 94 70 124 115 277 100 151 130
Average Attendance
Trades hows 432 2,788 0 590 0 1,937 0 1,440 1,000
Conventions & Confe rences 239 1,005 1,159 735 957 2,090 0 1,030 567
Cons umer Shows 1,975 1,970 953 1,643 1,294 1,472 1,539 1,550 2,000
Banquets 194 571 1,093 315 314 404 182 440 450
Meeti ngs 45 48 0 138 149 271 47 120 50
As sembl i es 71 155 1,017 174 0 1,104 0 500 750
Sports 0 1,070 1,439 248 0 1,221 0 990 1,000
Overall Average per Event 142 464 1,152 285 362 782 205 480 433
Total Attendance
Trades hows 2,160 25,092 0 2,950 0 25,185 0 13,800 5,000
Conventions & Confe rences 6,699 20,107 32,440 5,880 39,249 10,450 0 19,100 17,000
Cons umer Shows 15,798 19,700 8,580 36,150 16,818 55,936 32,328 26,500 30,000
Banquets 21,905 22,832 8,740 11,040 19,181 45,279 14,349 20,500 18,000
Meeti ngs 9,140 6,688 0 28,517 23,498 25,222 7,763 16,800 5,000
As sembl i es 4,980 465 12,200 8,853 0 55,203 0 16,300 3,800
Sports 0 12,844 18,710 745 0 72,014 0 26,100 10,000
Total 60,682 107,728 80,670 94,135 98,746 289,289 54,440 112,200 88,800
Attendance per SF of Function Space 2.9 1.5 1.1 3.2 1.9 3.0 0.4 2.0 1.3
*Average of a vai l a ble da ta, tota l s ma y not sum.
Data Year
Average*
40
•Since the Proposed FCC is new to the market and events have multi-year booking windows, we assume a four-year ramp-up
period to stabilize in 2031.
April 25, 2025
Annual Demand Estimates
Number of Events Annual Attendance Induced Room Nights
131
158
174
205 205
2028 2029 2030 2031 2032
56,500
72,900
82,300
88,800 88,800
2028 2029 2030 2031 2032
17,200
23,700
28,900
31,200 31,200
2028 2029 2030 2031 2032
41
April 25, 2025
Annual Demand Estimates by Type of Event
Five-Year Estimate of Events and Attendance
Opening
Stabilized
2028 2029 2030 2031 2032
Events
Conventi ons 5 7 9 10 10
Trades hows 2 4 5 5 5
Cons umer Shows 10 13 14 15 15
Conferences 15 17 19 20 20
Meetings 60 70 75 100 100
Ba nquets 30 35 38 40 40
As sembl ies 4 5 5 5 5
Sports & Competiti ons 5 7 9 10 10
Total 131 158 174 205 205
Attendees
Conventi ons 5,500 7,700 9,900 11,000 11,000
Trades hows 2,000 4,000 5,000 5,000 5,000
Cons umer Shows 20,000 26,000 28,000 30,000 30,000
Conferences 4,500 5,100 5,700 6,000 6,000
Meetings 3,000 3,500 3,800 5,000 5,000
Ba nquets 13,500 15,800 17,100 18,000 18,000
As sembl ies 3,000 3,800 3,800 3,800 3,800
Sports & Competiti ons 5,000 7,000 9,000 10,000 10,000
Total 56,500 72,900 82,300 88,800 88,800
42
7) Financial Analysis
•The conference center industry does not use a standardized set of accounts to report financial performance.
Financial statements from different conference centers organize revenues and expenses differently. However, a
few major revenue and expense categories are common to most convention facilities.
•We developed a proprietary financial operating model that organizes financial operations according to these
primary revenue and expense categories. The financial operating model quantifies the key variables and
operating ratios that determine revenue potential and expense levels. Unless otherwise indicated, the model
assumes an annual inflation rate of 3.0% applies to both revenues and expenses.
•We assume that the convention center would be managed by a qualified third party and independently from the
adjacent hotel. Joint management of the hotel and convention center could provide some economies of scale
and improve the performance of the convention center.
•We intend for financial projections to show the expected levels of revenues and expenses. Projections show
smooth growth over time. However, event demand and booking cycles are not always smooth. Unpredictable
local and national economic factors can affect business. Event demand is often cyclical, based on rotation
patterns and market conditions. Therefore, We recommend interpreting the financial projections as a mid-point
of a range of possible outcomes and over a multi-year period rather than relying on projections for any one
specific year.
Introduction to Financial Analysis and Methodology
April 25, 2025 43
44
•Facility Rental—Facility rental revenue includes the revenue venues receive from clients that reserve one or more function areas in the facility.
Despite having published rates, convention centers typically charge rental fees based on negotiated daily rental fees. Not all events incur a
facility rental fee. Management may reduce or waive the exhibit rental charges to book an event that generates significant food and beverage
revenue or has a positive economic impact.
•Food and Beverage—Most events that use a venue’s function space will arrange for food service for their attendees during their events. This
food service includes catering which can range from coffee breaks associated with a meeting to a full dinner associated with a convention or
banquet. Consumer shows, sporting events, and other events may generate concessions revenue. Most conventions and conferences generate
demand for multiple meals during these multi-day events. Meetings and banquets generally include a single meal or refreshment services.
Events like conventions and tradeshows typically spend the most per attendee. Consumer shows have lower per capita spending.
•Event Services—Event Services include the fees charged to users for services that could include business services, audio and video technical
assistance, set-up and take down of function spaces, cleaning services, security services, electricity, and other utilities, commissions from
decorators and other services provided by third-party contractors at events. Many events also require audio, video, communications, and
internet services. Banquets and other upscale events can often require elaborate decorating services. Almost all events require cleaning
services; cleaning of common areas may be complimentary for most events, while cleaning services offered to individual exhibitors can
represent a significant source of revenue. Service charges vary by type of event. Some of these services may be included in the rental charges for
using the facility, but others will be add-on service charges.
April 25, 2025
Definition of Revenue Line Items
45
•Operating revenue line items include facility rental, food
& beverage sales, event services, and other revenues.
HVS uses a series of revenue parameters based on
attendance and events.
•To formulate the revenue parameters, HVS relied on our
industry knowledge, the performance of comparable
venues, and information on price levels from local area
sources.
•We adjusted the parameters for inflation and other
anticipated trends in price levels.
April 25, 2025
Revenue Estimates
Revenue Parameters by Event Type
Amount per Unit
Facility Rental
Conventi ons Event Da ys $7,500 $7,500
Tradeshows Event Da ys 7,500.00 7,500.00
Consumer Shows Event Da ys 10,000.00 10,000.00
Conferences Event Days 5,000.00 5,000.00
Meetings Event Da ys 1,000.00 1,000.00
Ba nquets Event Da ys 3,000.00 3,000.00
Ass embl ie s Event Da ys 2,500.00 2,500.00
Food & Beverage (Gross)
Conventi ons Attendee Da ys $40.00 $40.00
Tradeshows Attendee Days 30.00 30.00
Consumer Shows Attendee Days 7.00 7.00
Conferences Attendee Da ys 40.00 40.00
Meetings Attendee Da ys 25.00 25.00
Ba nquets Attendee Days 60.00 60.00
Ass embl ie s Attendee Da ys 5.00 5.00
Events Services
Conventi ons Event Da ys $2,500 $2,500
Tradeshows Event Da ys 2,500 2,500
Consumer Shows Event Da ys 3,333 3,333
Conferences Event Days 1,667 1,667
Meetings Event Da ys 333 333
Ba nquets Event Da ys 1,000 1,000
Ass embl ie s Event Da ys 833 833
Revenue Line Item and Demand Source Revenue Estimation
Unit StabilizedOpening
46
•Salaries & Benefits—Salaries and associated benefits include compensation for permanent full and part-time employees dedicated not included
in departmental expense line items.
•Food and Beverage Costs—Costs of food and beverage include the costs of food and beverages sold as well as the temporary labor associated
with food preparation and service.
•Administrative and General—Administrative and general expense includes the salaries and wages of all administrative personnel not directly
associated with a department. Office as well as day-to-day facility expenses. Such expenses typically include credit card fees, travel, telephone,
printing, permits, and other miscellaneous services.
•Operations and Maintenance—This category includes the cost of routine and one-time facility maintenance expenses performed by in-house
facility operations personnel. It also includes specialized activities, such as HVAC system maintenance, electrical work, and maintenance of other
mechanical systems contracted out to third parties.
•Supplies and Equipment—This category includes items such as computers, office machines, furniture, consumables, and chemicals that are
required to support and maintain the operations of the facility.
• Utilities—The consumption of various utilities takes several forms, including water and space heating, air conditioning, lighting, cooking fuel,
and other miscellaneous power requirements. The most common utility costs include electricity, natural gas, fuel oil, water, and steam.
•Management Fees—A management agreement with a qualified third party would provide for a management fee of approximately 3% of annual
stabilized revenue.
•Capital Maintenance Reserve—Amounts contributed to a reserve account for replacement for major capital maintenance and repairs.
•Insurance— Insurance costs include property insurance, casualty loss, and other liability insurance required for facility operations.
April 25, 2025
Definition of Operating and Non-Operating Expenses
47
•Naming Rights—Convention centers may sell the right to name the venue to a business or corporation. These agreements are multi-year and
may provide upfront capital investment or ongoing annual payments.
•Advertising and Sponsorships—Advertising assets generate revenue, including digital advertising, fixed signage, scoreboard, and other
advertising opportunities. Sponsorships may include naming function spaces in the venue or other branding arrangements.
•Transfers In—The public owner of the convention center would provide additional operating support if revenues are insufficient to cover
expenses. Funding could be provided by dedicating excess lodging tax revenues or some other source of appropriated funds.
April 25, 2025
Definition of Non-Operating Revenue
48
•Expenses fall into two general
categories
–Operating Expense – related
directly to the production of
services.
–Non-Operating Expense –
includes expenses not related to
the support of events or day-to-
day operations.
•Non-Operating revenues include
–Naming Rights
–Advertising and Sponsorships
–Transfers In which may be
funded by lodging tax revenues
or some other non-project
source. The amount in each year
are sufficient to cover any
operating shortfalls.
April 25, 2025
Expense Parameters and Non-Operating Revenue Parameters
Expense Assumptions by Line Items (in 2025 dollars)
Amount Per Unit
Unit
Operating Expense
Salaries & Benefits Fixed Amount $1,705,212 $1,894,680 100%
Food & Beverage Costs Ratio to Sales Food & Beverage (Gross) 45.00% 45.00% 20%
Administrative & General Ratio to Sales Total Operating Revenue 8.00% 6.00% 100%
Operations & Maintenance Ratio to Sales Total Operating Revenue 4.00% 7.00% 80%
Supplies & Equipment Ratio to Sales Total Operating Revenue 1.00% 2.00% 80%
Utilities Ratio to Sales Total Operating Revenue 6.00% 5.00% 80%
Non-Operating Revenue
Naming Rights Fixed Amount $80,000 $80,000 100%
Advertising and Sponsorships Fixed Amount $40,000 $40,000 100%
TRANSFERS IN Fixed Amount $480,607 $288,543 100%
Non-Operating Expense
Management Fees Ratio to Sales Total Operating Revenue 4.00% 3.00% 100%
Capital Maintenance Reserve Ratio to Sales Total Operating Revenue 1.00% 9.00% 100%
Insurance Ratio to Sales Total Operating Revenue 3.00% 3.00% 100%
Estimation
Method Opening Stabilized
Fixed
%
Line Item
49
•The attached figure compares uninflated
projections for the opening year (2028)
with uninflated projections for a stabilized
year of operations (2031).
•Like most convention centers, the
Proposed FCC is unlikely to generate
sufficient revenue to cover all operating
and non-operating costs. An annual
operating subsidy (see Transfers In line
item) from a non-project revenue source
will be necessary to maintain its financial
viability.
April 25, 2025
Financial Forecast
Opening and Stabilized Years ($ thousands)
Opening Year Stabilized Year
CY 2028 CY 2031
Amount % Total Amount % Total
Operating Revenue
Facility Rental $720 23% $1,156 23%
Food & Beverage (Gross) 2,131 69% 3,401 69%
Events Services 230 7% 365 7%
Total Operating Revenue $3,081 100% $4,922 100%
Operating Expense
Salaries & Benefits $1,705 55% $1,895 38%
Food & Beverage Costs 959 31% 1,530 31%
Event Services Costs 161 5% 183 4%
Administrative & General 246 8% 295 6%
Operations & Maintenance 123 4% 345 7%
Supplies & Equipment 31 1% 98 2%
Utilities 185 6% 246 5%
Total Operating Expense $3,410 111% $4,592 93%
Net Operating Income ($330) -11% $330 7%
Naming Rights $80 3% $80 2%
Advertising and Sponsorships 40 1% 40 1%
TRANSFERS IN 481 16% 289 6%
Total Non-Operating Revenue 601 19% 409 8%
Management Fees 148 5% 148 3%
Capital Maintenance Reserve 31 1% 443 9%
Insurance 92 3% 148 3%
Total Non-Operating Expense $271 9% $738 15%
Net Income (Loss) $0 0% $0 0%
50
•Comparable venue financial
statements are restated in
2025 dollars and provide a
reasonableness check for our
projections.
•We compared revenue of the
proposed convention center
to eight comparable venues
–per capita
–per event
–ratio to total sales
•Our financial assumptions
are within the mid-range of
comparable venues,
although the mix of revenue
sources differs.
April 25, 2025
Comparable Venue Revenue Indicators
Revenue Indicators Stated in 2025 Dollars
Source: Respective Venues and HVS
Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 Comp 7 Comp 8 Proposed FCC
2024 2019 2018 2023 2023 2022 2019 2023
Per Capita Revenue
Fa cil ity Rental 8.03 13.68 8.57 5.28 7.35 6.66 7.27 3.48 7.54 13.01
Food & Beverage (Gros s) 93.66 50.24 0.00 26.28 11.11 0.00 31.15 0.00 42.49 38.30
Event Services 30.64 12.63 8.62 7.98 2.79 0.00 4.50 1.92 9.87 4.11
Tota l Operati ng Revenue 138.87 76.65 44.16 40.34 19.37 23.55 56.25 16.08 49.45 55.43
Per Event Revenue
Fa cil ity Rental 2,755 1,880 4,102 2,384 4,283 5,215 5,476 1,608 3,463 5,637
Food & Beverage (Gros s) 32,132 6,903 7,773 11,858 6,474 0 23,448 0 14,764 5,637
Event Services 10,510 1,735 4,126 3,599 1,627 0 3,390 889 3,697 1,782
Other Revenues 2,242 13 9,630 361 1,006 0 10,028 551 3,404
Tota l Operati ng Revenue 47,639 10,531 21,138 18,201 11,285 18,445 42,341 7,440 21,262 24,009
Ratio to Total Sales - Revenue
Fa cil ity Rental 6% 18% 19% 13% 38% 28% 13% 22% 20% 22%
Food & Beverage (Gros s) 67% 66% 63% 65% 57% 0% 55% 0% 62% 64%
Event Services 22% 16% 20% 20% 14% 0% 8% 12% 16% 7%
Other Revenues 5% 0% 46% 2% 9% 0% 24% 7% 13% 8%
Average of
Available
Data
51
•The Proposed Convention Center’s Total Expense Ratio is within the range of the comparable venues.
•Food & Beverage and Event Services cost ratios are on the high end of the comparable venue range but are reasonable
with the forecast average attendance for events being lower than the comparable set.
April 25, 2025
Comparable Venue Expense Ratios
Expenses as a Percent of Revenue
Source: Respective Venues and HVS
Line Item Percent of Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 Comp 7 Comp 8
Average of
Available
Data
Proposed
FCC
Food & Beverage Cos ts Gros s F&B Sa les 18% 20% 74% 76% 47% 45%
Event Services Cos ts Event Service Revenue 66% 45% 42% 32% 46% 50%
Sa l aries & Benefits Operating Revenue 50% 23% 35% 45% 61% 37% 40% 88% 47% 38%
Operati ons & Maintenance Operating Revenue 0% 3% 0% 18% 14% 4% 31% 14% 12% 9%
Utilities Operating Revenue 4% 5% 5% 0% 11% 7% 4% 0% 5% 5%
Ins urance Operating Revenue 1% 0% 0% 0% 2% 0% 0% 3% 2% 3%
Total Expense Tota l Revenue 92% 82% 128% 143% 146% 114% 114% 78% 112% 108%
52
•Like many convention centers,
expenses are likely to exceed
revenues, and non-project
revenues will be needed to
support operations.
•In the first year of operation, we
project an operating loss of
approximately $525,000 (or
$480,000 in uninflated dollars).
•At stabilization, annual operating
support would decrease to
approximately $345,000
($290,000 in uninflated dollars).
•The source of funding for
operational support is to be
determined.
April 25, 2025
Projection of Income and Expense
Five-Year Forecast of Income and Expense ($ thousands)
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
2028 2029 2030 2031 2032
Transfers In Revenue Less Transfers In All Expenses
53
April 25, 2025
Projected Income and Expense
Five Year Inflated Pro Forma ($ thousands)
Opening Stabilized
2028 2029 2030 2031 2032
$ amount % Total $ amount % Total $ amount % Total $ amount % Total $ amount % Total
Operating Revenue
Facility Rental $754 22.8% $988 22.8% $1,159 22.5% $1,290 22.5% $1,329 22.5%
Food & Beverage (Gros s) 2,312 69.8% 3,035 69.9% 3,628 70.3% 4,016 70.2% 4,137 70.2%
Events Services 245 7.4% 320 7.4% 375 7.3% 418 7.3% 431 7.3%
Total Operating Revenue $3,310 100.0% $4,344 100.0% $5,162 100.0% $5,725 100.0% $5,896 100.0%
Operating Expense
Salaries & Benefits $1,863 56% $2,132 49% $2,196 43% $2,262 40% $2,330 40%
Food & Beverage Cos ts 1,040 31% 1,433 33% 1,657 32% 1,807 32% 1,862 32%
Event Services Cos ts 171 5% 168 4% 191 4% 209 4% 215 4%
Admi ni strati ve & General 265 8% 324 7% 333 6% 343 6% 354 6%
Operati ons & Maintenance 132 4% 272 6% 345 7% 401 7% 413 7%
Suppl ies & Equi pment 33 1% 104 2% 110 2% 114 2% 118 2%
Uti lities 199 6% 259 6% 274 5% 286 5% 295 5%
Total Operating Expense $3,704 111.9% $4,692 108.0% $5,106 98.9% $5,424 94.7% $5,586 94.7%
NET OPERATING INCOME (LOSS) ($393) -11.9% ($348) -8.0% $56 1.1% $301 5.3% $310 5.3%
Non-Operating Revenue
Na mi ng Ri ghts $87 2.6% $90 2.1% $93 1.8% $96 1.7% $98 1.7%
Advertising a nd Sponsorshi ps 44 1.3% 45 1.0% 46 0.9% 48 0.8% 49 0.8%
TRANSFERS IN 552 16.7% 553 12.7% 375 7.3% 414 7.2% 427 7.2%
Total Non-Operating Revenue $683 20.6% $688 15.8% $514 10.0% $558 9.7% $574 9.7%
Non-Operating Expense
Mana gement Fees 157 4.7% 162 3.7% 167 3.2% 172 3.0% 177 3.0%
Ca pita l Maintena nce Reserve 33 1.0% 49 1.1% 250 4.8% 515 9.0% 531 9.0%
Ins urance 99 3.0% 130 3.0% 153 3.0% 172 3.0% 177 3.0%
Total Non-Operating Expense $290 8.7% $340 7.8% $570 11.0% $859 15.0% $884 15.0%
Net Income (Loss) $0 0.0% $0 0.0% $0 0.0% $0 0.0% $0 0.0%
54
•The City of Fargo seeks a public-private
partnership in developing the hotel and
convention center.
•In November of 2024, Fargo voters approved
the levy of a 3% lodging tax, which will be
dedicated to funding the development and
operations of the convention center.
•That tax will sunset after 25 years, which will
allow for the issuance of municipal debt.
•Based on the historical tax collections (see
the attached chart), approximately $3.3
million of collections could be made available
to support debt issuance.
•A financing plan for the convention center
and hotel will be developed by the City’s
qualified financial advisors with the
cooperation of the private sector developer.
April 25, 2025
Funding Sources
Historical City of Fargo Lodging Tax Collections
City of Fargo, Visit Fargo-Moorhead, and HVS
Year 2%
Operating 1% Capital Total Annual Percent Change
2014 1,705,336 851,386 2,556,722
2015 1,606,176 802,535 2,408,711 -5.8%
2016 1,559,922 779,872 2,339,794 -2.9%
2017 1,522,443 761,222 2,283,665 -2.4%
2018 1,533,398 766,699 2,300,097 0.7%
2019 1,568,735 784,367 2,353,102 2.3%
2020 845,562 422,791 1,268,353 -46.1%
2021 1,530,649 765,325 2,295,974 81.0%
2022 1,905,811 952,905 2,858,716 24.5%
2023 2,219,663 1,109,830 3,329,493 16.5%
2024 2,651,823 1,325,911 3,977,734 19.5%
Compound Annual Growth Rate (2014 to 2024) = 4.10%
55
8) Assumptions and Certifications
1. This report is to be used in whole and not in part.
2. No responsibility is assumed for matters of a legal nature.
3. All information, financial operating statements, estimates, and opinions obtained from parties not employed by HVS are assumed to be true and correct. We can
assume no liability resulting from misinformation.
4. Unless noted, we assume that there are no encroachments, zoning violations, or building violations encumbering the subject property.
5. We are not required to give testimony or attendance in court by reason of this analysis without previous arrangements, and only when our standard per-diem fees and
travel costs are paid prior to the appearance.
6. If the reader is making a fiduciary or individual investment decision and has any questions concerning the material presented in this report, it is recommended that the
reader contact us.
7. We take no responsibility for any events or circumstances that take place subsequent to the date of our report.
8. The quality of venue management has a direct effect on a facility's economic performance. The demand and financial forecasts presented in this analysis assume
responsible ownership and competent management. Any departure from this assumption may have a significant impact on the projected operating results.
9. We do not warrant that our estimates will be attained, but they have been developed on the basis of information obtained during the course of our market research
and are intended to reflect reasonable expectations.
10. Many of the figures presented in this report were generated using sophisticated computer models that make calculations based on numbers carried out to three or
more decimal places. In the interest of simplicity, most numbers have been rounded. Thus, these figures may be subject to small rounding errors.
11. It is agreed that our liability to the client is limited to the amount of the fee paid as liquidated damages. Our responsibility is limited to the client and use of this report
by third parties shall be solely at the risk of the client and/or third parties. The use of this report is also subject to the terms and conditions set forth in our engagement
letter with the client.
12. Although this analysis employs various mathematical calculations, the final estimates are subjective and may be influenced by our experience and other factors not
specifically set forth in this report.
13. This report was prepared by HVS Convention, Sports & Entertainment Facilities Consulting. All opinions, recommendations, and conclusions expressed during the
course of this assignment are rendered by the staff of this organization, as employees, rather than as individuals.
14. This report is set forth as a market study of the subject facility; this is not an appraisal report.
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Statement of Assumptions and Limiting Conditions
April 25, 2025
The undersigned hereby certify that, to the best of our knowledge and belief:
1. the statements of fact presented in this report are true and correct;
2. the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our
personal, impartial, and unbiased professional analyses, opinions, and conclusions;
3. we have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the
parties involved;
4. HVS is not a municipal advisor and is not subject to the fiduciary duty set forth in section 15B(c)(1) of the Act (15 U.S.C. 78o-4(c)(1)) with
respect to the municipal financial product or issuance of municipal securities;
5. we have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment;
6. our engagement in this assignment was not contingent upon developing or reporting predetermined results;
7. our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or
direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the
occurrence of a subsequent event directly related to the intended use of this analysis.
Thomas A. Hazinski
Managing Director
April 25, 2025
Certifications
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HVS Convention, Sports & Entertainment
Thomas Hazinski
President and Managing Director
312-371-0566
thazinski@hvs.com
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April 25, 2025
