Hoover Met Complex exceeds economic projections

The Hoover Metropolitan Complex still isn’t making a direct profit yet but is exceeding expectations and having a much greater economic impact than originally anticipated at this stage, the facility’s manager told the Hoover City Council Monday night.

Eight months into its second full fiscal year, at the end of May, the Hoover Met Complex had spent $74,256 more than it generated directly in revenue, General Manager John Sparks told the council.

However, at the beginning of the fiscal year, managers had projected an operating loss of $128,424 at this point. And before the new parts of the complex were built in the last few years, the original expectation was that the complex would end its second full year $600,000 in the hole.

After his presentation to the council Monday night, Sparks said he’s hoping to actually end this fiscal year on Sept. 30 with an operating profit instead of a loss. “That’s our goal,” he said.

Originally, Sports Facilities Management, which manages the complex for the city, had projected five full years of operating losses.

ECONOMIC IMPACT

What the profit and loss statement doesn’t include is the economic impact the facility is having.

SFM originally had predicted an economic impact of $14 million in the Hoover Met Complex’s first year, $24.4 million in the second year, $27.7 million the third year, $31.8 million the third year and $33.4 million the fifth year.

The first year — fiscal 2018 — was slightly above the projection, with an estimated economic impact of $14.86 million, records show. But this year, with the completion of the outdoor sports fields, tennis complex, playground and splash pad, SFM estimates the complex through the end of May already had an economic impact of $31.4 million.

By the end of fiscal 2019 on Sept. 30, Sparks estimates the full year economic impact will be $38 million to $45 million — more than $13 million ahead of original expectation for this year and even higher than the original expectation for year five.

For the eight months ending May 31, the Hoover Met Complex is estimated to have generated enough visitors to stay 31,472 hotel room nights, Sparks said.

Just this past weekend, the Adidas Gauntlet Summer Championship Basketball Tournament brought in more than 200 teams of high school boys and 530 college coaches, Sparks said. The estimated economic impact for the four-day tournament was $3 million, he said.

The Hoover Met Complex includes the 155,000-square-foot Finley Center for indoor sports and events, the Hoover Met baseball and event stadium, five additional NCAA-size baseball fields, a 16-court tennis complex, 15,000-square-foot playground, 7,000-square-foot splash pad, 170-space RV park and five multi-purpose fields for soccer, football, lacrosse, cricket, rugby and other sports.

Sparks said bookings already are going strong for 2020, including volleyball, basketball, baseball, football, ultimate disc, cheer and dance competitions, seven gun shows, three Piggly Wiggly food shows, a Greater Birmingham Association of Home Builders showcase, the Kulture City Ball and two Vintage Market Days shows that feature original art, antiques, clothing, jewelry, home décor and more.

SFM just confirmed a three-year agreement with the Perfect Game high school baseball scouting service for the Hoover Met Complex to become one of its two main Southeastern hubs. In 2020, that includes five championship events and a national academic showcase that together are expected to generate more than $12 million in economic impact, Sparks said.

Councilman Curt Posey complimented Sparks and his team at the complex for the excellent job they have done, saying nobody expected to see this big of a jump in the facility’s economic impact. “This is very, very good,” he said.

Councilman John Lyda said the complex is having a positive impact not just on Hoover, but all of Jefferson and Shelby counties. Hoover doesn’t have enough hotel rooms to handle all the demand being generated by the complex, Lyda said.

He said he couldn’t think of any other project in the city’s history that has had this much economic impact. It truly has helped transform the city from a strictly retail-based economy to also include an entertainment-based economy.

LOCAL USAGE

Councilman Mike Shaw, who is on the council’s advisory committee for the complex, said the financial returns are impressive, but Sparks and his team also have done an amazing job of balancing the need to generate revenue by attracting visitors with the need to provide recreation opportunities for Hoover residents.

Sparks said balancing the two objectives can be challenging. “The puzzle’s not always easy to fit together, but we’re working on it,” he said.

Almost 25,000 people have participated in Hoover Parks and Recreation basketball, flag football and volleyball leagues at the complex, and another 30,000 people have been able to use the fields through the Hoover Soccer Club, Hoover Youth Lacrosse and baseball field rentals, Sparks said.

More than 21,000 people have participated in Southern Performance Volleyball events at the Finley Center, while almost 3,500 have come for J. Smith Hoops and 2,800 for the Hoover Competitive Basketball Club, Sparks said.

Also, more than 5,800 people have used the walking track, nearly 3,900 have taken advantage of open gym time, and more than 2,700 have used the climbing center, Sparks said. Additionally, since the playground and splash pad opened in May, they have been averaging more than 200 guests daily, he said.

ADDITIONAL COSTS

The profit and loss statements generated by SFM are based on operating costs only and do not take into account additional costs borne by the city, including debt on the Hoover Met complex, utilities, cleaning, exterior maintenance and capital projects, Hoover Chief Financial Officer Melinda Lopez said. The city has spent $3.67 million on those things eight months into this fiscal year, including a $1.37 million debt payment and $550,000 spent on capital projects, records show.

See the full 2019 mid-year report here.

This article was updated at 5:47 p.m. with additional cost information from Chief Financial Officer Melinda Lopez.