Middlesex County Improvement Authority
Arena Feasibility Analysis
In November 1997, Brailsford & Dunlavey completed a feasibility study for the Middlesex County Improvement Authority to evaluate the potential of developing a 10,000- to 12,000-seat, multi-use indoor arena in downtown New Brunswick, New Jersey. The central New Jersey market, traditionally living in the shadow of two of the largest major league sports markets (New York and Philadelphia), had recently begun to mature as a minor league destination of its own. The Middlesex County arena was envisioned to host two sports teams as anchor tenants, including a minor league professional hockey franchise (American Hockey League) and Rutgers University (Big East) basketball, as well as other sports, family shows, concerts, and flat show events. In an unusually promising opportunity for an arena at the conceptual stages of development, B&D engaged in early discussions with a national facility management group that had agreed to participate as an equity partner in the development of the project.
B&D's scope of work included detailed market analysis, financial analysis, economic impact analysis, and site analysis. Event calendar projections were based on interviews with event providers — sports league officials, concert promoters, booking agents for family and traveling shows, and organizers for conferences and trade shows. Attendance projections and ticket price sensitivities were based on statistically validated surveys of local residents. Premium seating revenues were based on interviews with private sector business leaders.
Although, the study demonstrated a viable project concept in terms of the facility's attendance and revenue potential, political considerations prevented the State from providing the funds necessary to finance the project, while Middlesex County found itself unable to shoulder a greater portion of project debt financing. As a result, the County decided not to proceed with the project.