A proposed 5,000 seat indoor/outdoor amphitheater on the city of Washington's 223 property would lose nearly $900,000 in its first two years, but generate around $274,000 in annual net operating income by its tenth birthday.
But over that same 10-year time frame, it could generate $127 million in new spending in the local economy, including $80 million in direct spending. The city of Washington and Tazewell County could stand to reap some $2.2 million in net new taxes.
That's according to a first draft feasibility study for the Hengst Foundation's Dee Amphitheater project obtained by WCBU via a Freedom of Information Act request. Portions of the full study were presented to the Washington City Council in November.
Read more: Dee Amphitheater Feasibility Study obtained by WCBU
The feasibility study was compiled in May by Hunden Partners, a Chicago real estate consulting firm.
The study actually presents two ideas for consideration: a fully outdoor venue and an indoor/outoor alternative. It was the latter option that was presented to the city council.
"The indoor/outdoor venue will cost to more to build and operate, but the facility is expected to have a greater economic and fiscal impact to the local Washington economy," the study noted.
The private Hengst Foundation would cover the costs of building the amphitheater itself, though they're looking to the city to chip in with road and utility installation expenses.
The Dee Amphtheater project is set for further discussion at the Washington City Council's Dec. 9 committee of the whole meeting. There will be opportunities for community members to ask questions and share feedback at that meeting, a Hengst Foundation representative told WCBU.
What is the Dee Amphitheater proposal?
The Dee Amphitheater is named for the late wife of Washington native and retired biotech entrepreneur Dr. Jim Hengst. The Hengst Foundation is spearheading the development efforts, buoyed by a $12 million committment from the nonprofit's namesake.
As previously reported, the proposed site for the venue is the northeastern portion of the 223 acres along U.S. Route 24 that was purchased by the city of Washington in 2013 for $4.9 million.
Read more: Presentation provided to the Washington City Council at their November committee of the whole meeting
The plan calls for the Dee Amphitheater to be up and operational in 2026. The venue would have 2,000 fixed seats and 3,000 lawn seats. About 20% of the fixed seats are recommended to be "premium" seating options that could fetch a higher price. The amphitheater would also have a concession area or on-site restaurant, a backstage building, and about 1,700 parking spaces. There would be two detention ponds for water runoff.
What's the anticipated economic impact?
The feasibility study anticipates the Dee Amphitheater will take a few years to get established after opening in 2026. Stabilization is projected to happen by the fifth year of operations. That would bring the venue up to an average 76 ticketed events a year, drawing in 110,000 visitors annually.
Those events include not only concerts, but also weddings, festivals, community events; and potentially, performances of the Peoria Symphony Orchestra.
Sharable ticket revenue by year five is projected to be over $4.4 million. That's the money to be split between the promoter or act and the venue.
The outdoor/indoor amphitheater is projected to lose $607,000 in its first year and another $295,000 in year two, but net operating income would budge into the black thereafter.
Over ten years, the study projects $127 million in new spending in the Washington economy over a decade would be generated by the Dee Amphitheater. It would also generate $54 million in net new earnings, supporting around 147 new full-time equivalent jobs.
An indoor/outdoor amphitheater is projected to create an additional $41 million in economic impact over a decade compared to a fully outdoor venue. It would also generate $700,000 more in net tax revenues for Washington and Tazewell County, the study said.
What's the projected noise and land impact?
The Dee Amphitheater would only take up a portion of the city's 223 property, bu tthe feasibility study proposes a wider plan for the entire site. That calls for support amenities like hotels and retailers on a portion west of the amphitheater, and a community green space south of it. The area west of the rerouted Nofsinger Road is identified as "residential or flex."
Hunden Partners identifies 124 hotel rooms within five miles of the amphitheater. The consultants say because most attendees to ticketed events would likely be coming from within 75 miles, a hotel isn't strictly necessary, but could add to the overall economic appeal for the area.
The developers propose two connections to the amphitheater: one via Cruger Road to the south, and another from the west via the new leg of Nofsinger Road. Currently available estimates place the city's costs for roads and other infrastructure somewhere between $3.2 to $6 million. City staff are expected to present more information on how to pay for that on Monday.
An acoustic study by engineering consulting firm Arup projects the loudest pop/rock concerts would have sound levels between 107 to 125 dBA (decibles weighted to account for how people actually perceive sounds). Yale University identifies that upper threshold as the level at which ear pain can begin.
The closest residential property line is 1,930 feet to the south. Another residential property line lies 3,260 feet west. Both neighborhoods would potentially be subjected to sound levels louder than what both state and city noise codes allow.
The engineers suggest that distance alone isn't enough to mitigate the sound levels for nearby residents, and other options like building up topography to put the amphitheater into a "bowl shape" that reduces line of sight to properties, berms, landscaping, or changing the orientation of the performance venue could help cut down on the noise.
Is there demand for another venue in the Peoria area?
Hunden Partners identifies the Peoria Civic Center Theater and the Devon Lakeshore Amphitheater in Decatur as the primary potential competitors for the Dee Amphitheater.
"The Peoria Civic Center theater is a well-established venue that may pose competition for attracting acts who are looking to perform in Peoria. However, limitations stemming from the theater’s capacity and its management challenges will likely increase the amphitheater’s appeal," Hunden notes in its summary of feedback from "several entertainment-based companies" and venues regionally.
The theater hosted 64 performances in 2023. But the Hunden study claims there might not actually be that much direct competition for acts. Many of the Civic Center Theater's top-selling shows were musicals, family shows, and comedy acts, whereas the amphitheater would target "B-level" classic rock and country music artists.
Citing "talent booking sources," Hunden said artists that would perform and sell out at the Dee include country musicians Lee Greenwood, Jason Isbell, and Luke Bryan; classic rock acts like Styx, Heart, and Chicago; and Christian performers such as Amy Grant, Michael W. Smith, and Cain, among others.
"Peoria as well as the greater central Illinois market has a significantly limited supply of entertainment venues that are able to successfully attract artists and promoted shows. A boutique amphitheater would serve as a necessary asset to central Illinois in attracting artists and tours to the market," notes the study under its key findings.
Peoria Civic Center general manager Rik Edgar said in October that the city-owned venue as a whole is thriving right now, and boasted record gross adjusted income this past year.
The November presentation to the city council sees the Dee Amphitheater as complimentary rather than competitive to Five Points Washington. The amphitheater's peak season would be summer, while the indoor 1,100 seat Five Points Washington theater would focus on winter performances. Dee Amphitheater opening performers could be eyed as returning acts for Five Points, the developers suggest.
The Washington City Council has yet to take a final vote on the Hengst Foundation's proposal for the land.
