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~Master - Packet of Communications to Council for August 07, 2026
main fax MEMO To: Mayor and City Council From: Renee Hall, City Clerk Date: August 7, 2026 Subject: Packet of Communications to Council Listed below are the communications to the City Council known to staff as of August 7, 2026: 1. Kathy Bever, Ames Resident – July 28, 2026 RE: Additional handicap parking at Ames Public Library 2. Steve Bock, Ames Resident – August 5, 2026 RE: Payment reimbursement from sewer break in the middle of the street 3. Scott Ripperger, Ames Resident – August 6, 2026 RE: Silencing train whistles & installing horns at both North/South crossing and East/West crossing 4. Luke Jensen, Ames Resident – August 6, 2026 RE: Campustown deterioration, clean up and enforcement of city codes 5. Kevin Bourke, President & CEO of Discover Ames, IA – August 8, 2026 RE: Ames Event Center 1 Hall, Renee From:Kathy Bever <gmak1953@gmail.com> Sent:Tuesday, July 28, 2026 1:11 PM To:City Council and Mayor Subject:Library [External Email] Ames has such a lovely library. It is a true blessing to the community. But the parking is a problem. I'm not sure how you can do anything about that as a whole. However, you could certainly alleviate one aspect. I am disabled and my husband drives myself and special needs daughter BUT there is only one ONE handicap space I believe this could be improved upon without much trouble. That would be a great thing for those who come to the library. Thank you for your time. Kathy Bever gmak1953@gmail.com Some people who received this message don't often get email from gmak1953@gmail.com. Learn why this is important 1 Hall, Renee From:Steve Bock <steve@bockrealestate.com> Sent:Wednesday, August 5, 2026 2:51 PM To:City Council and Mayor; Walton, Bill; Clausen, Justin; Phillips, Brian Subject:Brian Phillips-Bill Walton & Justin Clausen [External Email] Dear Ames City Concil, I have been advised to appeal to the City Council regarding an ongoing payment request from the city concerning a sewer break in the middle of the street. This occurred after previous construction work was completed, and the city-hired contractor incorrectly redid my sewer line causing backups in my building requiring me to open the street to fix their work. I would like to appeal at the city council meeting before taking legal action. Below is the attached email states they cannot approve my request and outlines the next step. I will need to make sure I can get my contractor there as well to present our situation to you. Please let me know a couple of times that would work for the city council to hear the situation. -------------- Phillips, Brian to me, Justin, Bill To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet. Mr. Bock, City staff is not able to approve the payment you are requesting. If you would like to appeal to the City Council, you are welcome to do so. They would have the final say as to whether a payment would be made. You can email the City Council as a group at mayorcouncil@cityofames.org. Brian Brian Phillips Assistant City Manager City of Ames, Iowa brian.phillips@cityofames.org | www.CityOfAmes.org 515.239.5203 | City Hall, 515 Clark Ave. | Ames, IA 50010 ---------------- Thank you in advance for your time to hear this situation and determine how to make me whole as your city staff have been unable to resolve this. Sincerely, Steve Bock Some people who received this message don't often get email from steve@bockrealestate.com. Learn why this is important 2 Owner of 203 Campus Ave.apartments Ames Campus Rentals & To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet. 1 Hall, Renee From:Luke Jensen <luke@resgi.com> Sent:Thursday, August 6, 2026 10:02 AM To:City Council and Mayor Subject:Campustown Needs Attention Attachments:Site_Photos (2).pdf [External Email] Council, I'm writing about the condition of Campustown. Over the last 10 years there has been a substantial deterioration of the district. We really have not seen meaningful investment (public or private) in the area since 2018. I understand enrollment fluctuations have created challenges. From our experience our 2026/2027 rents are pretty much the same as 2017/2018 rents but our operating expenses have increased over 35% during that same period. This impacts how property owners can maintain their properties. We need to find ways to increase vibrancy and attract more people to the district to support the area year round. I encourage the council to look at the conditions in the area...sadly you will see a lot of challenges: High commercial vacancy Weeds and lack of property maintenance Trash containers littered everywhere including the right of way and on city property Unregulated compost pile full of old tree branches Dirty sidewalks Bent/broken street signs and garbage cans We need to clean this up by enforcing our city codes. I don't know if anyone is monitoring the area. Then we need to make it easier to invest in the area and promote growth. Campustown is in bad shape and a poor reflection of the community. We need a healthy and vibrant Campustown, and sadly we are far from it. My family and I have invested in the district and are one of the few remaining local ownership groups. We take a lot of pride in our property and have maintained our offices here since 2004. We serve close to 250 residents in the area and they deserve more than just a nice apartment. They deserve an area they are proud of. Please consider developing an improvement plan so we can generate investment in this area and get things back on track. Attached are some pictures for reference. Luke -- LUKE JENSEN, CCIM RES Properties | RES Development 2519 Chamberlain St., Ste 101 Ames, IA 50014 | 515.290.3487 2 To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet. Licensed Real Estate Broker in the State of Iowa Photo 1 of 9 - IMG_1959.jpeg Photo 2 of 9 - IMG_1960.jpeg Photo 3 of 9 - IMG_1961.jpeg Photo 4 of 9 - IMG_1963.jpeg Photo 5 of 9 - IMG_1964.jpeg Photo 6 of 9 - IMG_1965.jpeg Photo 7 of 9 - IMG_1967.jpeg Photo 8 of 9 - IMG_1972.jpeg Photo 9 of 9 - IMG_1974.jpeg 1 Hall, Renee Subject:FW: Train whistles From: Jill Ripperger <jsripperger4@gmail.com> Sent: Thursday, August 6, 2026 9:13 AM To: Haila, John <john.haila@cityofames.org> Cc: Jill Ripperger <jsripperger4@gmail.com> Subject: Train whistles [You don't often get email from jsripperger4@gmail.com. Learn why this is important at https://aka.ms/LearnAboutSenderIdentification ] [External Email] Hi John, Hope all is going well with you. I am writing to inquire as to the possibility of someone seriously looking into the possibility of silencing the train whistles and installing horns at the railroad crossings on the north/south rail lines the same as the crossings on the east/west rail lines. I know there are considerably fewer trains on the north/south lines compared to the east/west line but I still think thousands of citizens are affected by the whistles daily and would greatly appreciate the change to horns. Thank you for your attention to this matter. Sincerely, Scott Ripperger Sent from my iPad Sent from my iPad 1 Hall, Renee From:Kevin Bourke <kevinb@discoverames.com> Sent:Friday, August 7, 2026 8:14 AM To:City Council and Mayor Cc:Schainker, Steve Subject:Ames Event Center Request Attachments:City of Ames Request for AEC_8-7-2026.pdf; CB25US051374-1 Proposed Ames IA Hotel FINAL9.3.2025.pdf; 20260103_Comments on CBRE economic impact estimates.pdf; 20260103 Revised Ames City Report.pdf [External Email] Dear Mayor and City Council, A ached is a request for the Ames Event Center. Also a ached are the most current feasibility study and two reports regarding how the event center can impact the community. It’s my goal to form a las ng public private partnership that can bring this to frui on so the community may reap the benefits of the Ames Event Center at The LINC. I respec ully ask to be on the August 25 council agenda to clarify this request and answer ques ons regarding the Ames Event Center. Regards, KB Kevin M. Bourke President & CEO 1601 Golden Aspen Drive, #110 cell: 515.460.8870 DiscoverAmes.com 1 Discover Ames Ames Event Center City of Ames Investment Request August 7, 2026 Discover Ames respectfully requests that the City of Ames invest $12.5 million toward construction of the Ames Event Center at The LINC. The remaining $12.5million will be secured through private philanthropy, state grants, and other public and private funding sources. Four independent market studies over nearly thirty years have concluded that Ames lacks adequate event space. Independent economic analysis projects the Ames Event Center will generate: • $49.6 million in annual economic output • 417 jobs • Nearly $1 million in annual local tax revenue • $15.9 million in annual visitor spending Other Iowa communities have demonstrated how a public investment in visitor infrastructure can transform a community. Ames has an opportunity to do the same while beginning with significant advantages, including donated land and an established downtown. The Cost of Inaction The need for additional conference and event space in Ames is not a new idea or a recent trend. It is a community need that has been identified consistently for nearly three decades. The first comprehensive feasibility study, completed in 1996, concluded that Ames lacked approximately 30,000 square feet of conference and event space needed to meet existing and future demand. Rather than being an isolated finding, subsequent studies have repeatedly reached the same conclusion. A 2010 feasibility study identified a need for approximately 40,000 square feet of additional event space. A follow-up study in 2014 reaffirmed that conclusion, again recommending approximately 40,000 square feet. Most recently, the 2025 feasibility study concluded that Ames still requires a minimum of 30,000 square feet of new event space to remain competitive and adequately serve the community. Year Study Findings Status 1996 Need for 30,000 sf of event space No project built 2010 Need for 40,000 sf of event space No project built 2014 Need for 40,000 sf of event space No project built 2025 Need for a minimum of 30,000 sf of event space Decision pending Four independent studies conducted over nearly thirty years have reached the same conclusion: Ames does not have sufficient conference and event space to meet market demand. The question now is whether Ames will have the leadership and vision to invest in the community’s future. During that same period, many Iowa communities chose to make strategic investments in visitor infrastructure. Coralville developed its Hyatt Regency Hotel & Conference Center, helping transform the Iowa River Landing into one of Iowa's premier mixed-use districts. Communities such as Cedar Rapids, Sioux City, Dubuque, Des Moines, Council Bluffs, Waterloo, Ottumwa, and others invested in convention 2 centers, event centers, conference facilities, and expo centers to attract conventions, tournaments, trade shows, meetings, and other visitor-generating events. Those facilities have become important economic development assets, generating visitor spending, supporting local businesses, increasing overnight hotel stays, and strengthening their communities' competitiveness for regional and statewide events. Doing nothing has had consequences. The need has been documented repeatedly since 1996. The community has not made the public investment necessary to address it. As a result, Ames has missed opportunities to host events that require larger, modern, and more flexible facilities—opportunities that have instead benefited competing communities throughout Iowa. Today, Ames has an opportunity unlike any it has had before. The proposed Ames Event Center at The LINC is supported by nearly thirty years of market analysis, is located adjacent to a vibrant downtown, and includes the donation of the project site by the private developer. Rather than beginning from scratch, Ames can build upon existing strengths while finally addressing a need that has been identified consistently for decades. Community Owned Event Centers in Iowa Facility Owner Iowa Events Center (Community Choice Convention Center, EMC Expo Center, Casey's Center) Polk County Prairie Meadows Event & Conference Center Polk County RiverCenter City of Davenport Quad Cities Waterfront Convention Center Bettendorf Bridge View Center City of Ottumwa Grand River Center City of Dubuque Five Flags Center City of Dubuque Waterloo Convention Center City of Waterloo Sioux City Convention Center City of Sioux City Tyson Events Center City of Sioux City Mid-America Center City of Council Bluffs Hyatt Regency Coralville Hotel & Conference Center City of Coralville City of Coralville Success A successful Iowa example of strategic municipal investment is the City of Coralville's Hyatt Regency Hotel & Conference Center (formerly the Coralville Marriott Hotel & Conference Center). Recognizing that a modern conference facility could become the catalyst for long-term economic development, the Coralville City Council chose to invest in a public venue designed to attract visitors, conventions, and private investment. Coralville did not wait for private investment to solve its conference space needs. Instead, the city made a strategic public investment that encouraged significant private development to follow. Coralville developed, financed, and continues to own the facility. The approximately $60 million project, which opened in 2006, was funded through a combination of approximately $20 million in hotel/motel tax revenues, approximately $33 million in city-backed financing, and approximately $5 million from the 3 State of Iowa. To finance the project, Coralville utilized a lease-purchase financing structure, issuing Certificates of Participation rather than relying solely on traditional general obligation bonds. The Hyatt Regency Coralville Hotel & Conference Center became the catalyst for the Iowa River Landing, which has since grown into one of Iowa's premier mixed-use districts featuring hotels, restaurants, retail, offices, entertainment venues, housing, and Xtream Arena. The opportunity for Ames is even more compelling in several important respects. Unlike Coralville, which built its hotel and conference center before the surrounding district had developed, the Ames Event Center at The LINC will be located immediately adjacent to our established downtown with an amazing collection of restaurants, shops, and entertainment. Rather than serving as the first piece of a new district, the Ames Event Center at The LINC would immediately enhance and grow an existing destination that already attracts residents and visitors. Equally important, the developers of The LINC have committed to donating the land for the Ames Event Center. This represents a significant private investment that substantially reduces the City's initial capital cost compared to Coralville's project. It is rare for a community to have the opportunity to develop a major public facility on donated land in a location that is already connected to a thriving downtown. Nearly twenty years later, Coralville's investment continues to attract visitors, support local businesses, and serve as the centerpiece of the Iowa River Landing. Ames begins with several advantages, including donated land, an established downtown, proximity to Iowa State University, and an existing hospitality industry well-positioned to attract and serve visitors. The Ames Event Center is more than a building. It is a long-term investment that will support local businesses, attract new visitors, expand tourism, increase overnight stays, and enhance the quality of life for residents while bolstering Ames' position as one of Iowa's premier destinations. Economic Opportunity for Ames Independent analyses have concluded that the proposed Ames Event Center represents more than a new public facility—it is an investment in economic development that has the potential to generate substantial and recurring benefits for Ames, Story County, and the region. CBRE's 2025 market and feasibility study concluded that the Ames market can support a new event center and projected significant visitor activity generated by conferences, tournaments, meetings, banquets, trade shows, and other events. Reviewing and building upon CBRE's work, economist Mark Imerman of Regional Strategic, Ltd. and former Business Analyst and Policy Economist at Iowa State University, evaluated the broader economic impacts of that visitor activity on the Ames area. According to Imerman's analysis, the completed Ames Event Center is projected to generate approximately $49.6 million in new annual economic output across the Ames metropolitan area. That level of activity is expected to support approximately 417 jobs, generate approximately $12.7 million in annual labor income, and produce an estimated $10.8 million in annual business earnings each year. These benefits extend well beyond the walls of the Ames Event Center. Visitors attending conventions, sporting events, meetings, trade shows, banquets, and community events spend money throughout the local economy. The analysis estimates approximately $15.9 million in new annual visitor spending at local 4 hotels, restaurants, retailers, entertainment venues, transportation providers, and other businesses across Ames and Story County. The increased economic activity also generates new public revenues that help support essential local services. According to the analysis, the Ames Event Center has the potential to generate approximately: • $740,000 annually in hotel/motel tax revenue • $230,000 annually in local option sales tax revenue In addition, the analysis estimates that employee earnings generated by the project would support approximately $5 million in annual retail sales, producing additional local sales tax revenue as those dollars are spent within the community. Perhaps most importantly, these are not one-time construction benefits. They represent continuing annual economic impacts generated by visitors who travel to Ames specifically to attend events at the Ames Event Center. Every conference, tournament, convention, banquet, trade show, concert, and special event brings new customers to local hotels, restaurants, retailers, and service businesses, creating economic activity that would otherwise occur in competing communities. The findings of both the CBRE feasibility study and Mark Imerman's independent economic impact analysis lead to the same conclusion: the Ames Event Center has the potential to become a long-term economic investment for the community. By attracting new visitors, increasing overnight stays, supporting local businesses, creating jobs, and expanding the local tax base, the project represents an investment whose benefits extend far beyond the facility itself and into the broader Ames economy for decades to come. Key Findings Annual Impact Economic Output $49.6 million Visitor Spending $15.9 million Jobs Supported 417 Labor Income $12.5 million Local Tax Revenue Nearly $1 million City of Ames Investment Discover Ames exists to attract visitors whose spending strengthens our local economy. Every conference, tournament, and meeting fills hotel rooms, supports restaurants, creates jobs, and generates tax revenue that benefits the entire community. The Ames Event Center represents one of the most significant opportunities in decades to fulfill that mission while creating lasting economic benefits for our residents and businesses. Opportunities like this rarely come together. The community has identified this need for nearly thirty years. The land is being donated. Independent studies have confirmed the market demand and economic benefit. A public-private funding strategy has been identified. The only remaining ingredient is the City's commitment to move the project forward. On behalf of Discover Ames, we respectfully request that the Ames City Council commit $12.5 million toward the estimated $25 million cost of constructing the Ames Event Center at The LINC. We believe an 5 equal public-private investment reflects the shared community benefits this project will deliver while demonstrating a strong commitment from both sectors. The remaining $12.5 million will be pursued by Discover Ames through a combination of private philanthropy, corporate sponsorships, county participation, grants from the Iowa Economic Development Authority, other grant opportunities, and additional private fundraising efforts. Together, these funding sources represent a true public-private partnership that shares both the investment and the benefits of the project. We further request that the city evaluate financing options similar to the successful approach used by Coralville for its hotel and conference center. Specifically, we ask the city to consider a lease-purchase financing structure, such as Certificates of Participation or another legally available financing mechanism, that would allow the city to construct and own the Ames Event Center while utilizing financing tools that have been successfully used by other Iowa communities. This approach would allow Ames to invest in a transformational public facility while retaining public ownership. Under this partnership, the City of Ames would own the Ames Event Center as a public asset, ensuring that it remains dedicated to serving the community for generations to come. Discover Ames would work alongside the city during project development and beyond to maximize bookings, attract conferences, secure sponsorships, and promote the facility as a premier destination for meetings and events. Prior to opening the facility, Discover Ames and the City would negotiate an operating and management agreement, including a long-term plan to address any operating shortfalls through a mutually agreed- upon funding strategy. This request is not for an immediate appropriation. Rather, Discover Ames requests that the city commit to partnering in the project and direct staff to begin evaluating financing alternatives, partnership agreements, and implementation strategies necessary to bring the Ames Event Center to fruition. This proposal is more than a request to construct a building. It is an opportunity to invest in Ames' future. The Ames Event Center will attract new visitors, support local businesses, create jobs, expand the tax base, enhance the vitality of downtown, and strengthen Ames' position as one of Iowa's premier destinations for conferences, meetings, and community events. Communities across Iowa have demonstrated what is possible when local leaders make strategic investments in visitor infrastructure. Other cities have followed with convention centers, event centers, and conference facilities that continue to generate economic activity year after year. Ames now has the opportunity to build on nearly thirty years of planning, capitalize on a donated project site, and create a community asset that will benefit residents, businesses, and visitors for decades to come. We respectfully ask the Ames City Council to take the next step by partnering with Discover Ames to make the Ames Event Center a reality. CBRE Valuation & Advisory Services Proposed Ames Conference Center and Adjoining Hotel at the LINC Cross Streets of Clark Avenue and Lincoln Way Ames, Iowa 50014 CBRE File No. CB25US051374-1 CLIENT: Discover Ames and Ames Regional Economic Alliance September 3, 2025 Feasibility Study © 2025 CBRE, Inc. VALUATION & ADVISORY SERVICES 200 Park Avenue New York, NY 10166 T (212) 207-6100 F (212) 207-6069 www.cbre.com Date of Report: September 3, 2025 Mr. Chuck Winkleblack Away Team, LLC. 105 S. 16th Street Ames, IA 50010 Kevin Bourke, President Discover Ames 1601 Golden Aspen Dr., Ste 110 Ames, IA 50010 RE: Proposed Ames Conference Center and Hotel at the LINC Preliminary Feasibility Study Cross Streets of Clark Avenue and Lincoln Way Ames, Story County, Iowa 50014 CBRE, Inc. File No. CB25US051374-1 Dear Mr. Winkleblack and Mr. Bourke: At your request and authorization, CBRE, Inc. has prepared a feasibility study of a proposed conference center and hotel in Ames, Iowa. Our initial analysis is presented in the following report. The subject is recommended to be a 35,000 Square foot conference center with an adjoining 200-room upscale, full-service hotel in Ames Iowa. The Proposed Ames Conference Center and Hotel are contemplated as an anchor of the LINC, a mixed-use development in downtown Ames. The proposed subject will be built in conjunction with a new parking garage that will service existing downtown parking demand as well as induced demand from the conference center. The overall project is expected to include a significant number of market rate apartments, with first floor retail. The estimated opening date is January 1, 2029. We understand that plans for the site have evolved over time, and that the overall project is expected to be constructed in phases, as such we will refer to the subject as the Proposed Ames Conference Center and Hotel. As in all studies of this type, the estimated results are based on competent and efficient management and presume no significant change in the status of the competitive lodging market from that as set forth in this report. The terms of our engagement are such that we have no obligation to revise our conclusions to reflect events or conditions that occur subsequent to the date of completion of our fieldwork. However, we are available to discuss the necessity for revisions in view of changes in the economy or market factors should such arise. September 3, 2025 Page 2 2 © 2025 CBRE, Inc. Since the proposed hotel’s future performance is based on estimates and assumptions that are subject to uncertainty and variation, we do not present them as results that will actually be achieved. However, our analysis has been conscientiously prepared on the basis of information obtained during the course of the assignment and on our experience in the industry. This report is subject to the Terms and Conditions presented in the Addenda. After you have had an opportunity to review this report, please feel free to contact us with any questions. We appreciate the opportunity to work with you on this assignment. Respectfully submitted, CBRE - VALUATION & ADVISORY SERVICES Table of Contents iii © 2025 CBRE, Inc. Table of Contents Table of Contents ................................................................................................................. iii Executive Summary .............................................................................................................. iv Introduction ......................................................................................................................... 1 Area Analysis ....................................................................................................................... 4 Neighborhood Analysis ......................................................................................................... 6 Demand Survey ..................................................................................................................16 Hotel Site and Facilities Recommendations ...........................................................................22 Tax and Assessment Data ....................................................................................................27 Market Analysis ...................................................................................................................28 Induced Demand Analysis ....................................................................................................45 Estimated Hotel Operating Income .......................................................................................53 Economic Feasibility ............................................................................................................87 Economic Impact ................................................................................................................96 Fiscal Impact .................................................................................................................... 109 Assumptions and Limiting Conditions .................................................................................. 114 Survey Responses – Discover Ames .................................................................................... 119 Survey Responses – Ames Regional Economic Alliance ........................................................ 120 Executive Summary iv © 2025 CBRE, Inc. Executive Summary Conclusions Highlights 1. Area & Neighborhood Analysis Ames is a desired destination for professional and fraternal associations, government agency conferences, corporate meetings, academics and sports with unique shopping, dining, and attractions. The city is proactive in promoting economic growth in the region with a master plan to increase activity in the immediate area and address housing and community concerns. The subject’s proposed use as a full-service conference center and hotel will be a key element of the city’s continued growth. 2. Conference Center Demand Survey The survey indicated a need for new hotel and conferencing facilities. Based on the survey, the number of potential events that could be held at the subject is roundly 300 with an attendance up to 100,000. The Downtown location is considered a preferred attribute, and the hotel facilities should be upscale, full-service with a connection to the Conference Center. The average rate the respondents are currently paying is $146 with 41% indicating a willingness to pay more. Limitations of the survey include the sample size of respondents, the timing, as well as the inherent subjectivity of some of the responses. However, the survey is generally a positive response for the proposed project. 3. Recommended Facilities The recommended facilities are supported by market interviews, industry trends, demand surveys, and comparable properties. Moreover, these recommendations are to assist in the preliminary stages of the development planning. The market analysis and estimated operating results assume the recommended facilities to be high quality and adhering to upscale, full-service standards. Executive Summary v © 2025 CBRE, Inc. Improvements Summary and Analysis (full service) Hotel Conference Center Meeting/Banquet Rooms (Rounded Recommendations) Name Size (SF)Type/Comments Total 35,000 Total 3,000 Total Interior Four Wall Space 23,000 Compiled by CBRE CONFERENCE CENTER HOTEL Executive Summary vi © 2025 CBRE, Inc. 4. Induced Room Nights Analysis Approximately 12,000 to 19,000 room nights could potentially be induced into the local hotel market as overflow from large events. Conclusion of Induced Room Nights 12,000 - 19,000 Potential room nights induced into the Ames competitive market NOT acommodated by the Subject Hotel. 5. Hotel Market Analysis The subject’s occupancy, ADR, RevPAR, Revenue Yield and corresponding room revenue for the first several years of our projection analysis are illustrated as follows: Occupancy, ADR, and Rooms Revenue Conclusions Stab'd Year As Complete - Fiscal Year Ending 12/31/2029 2030 2031 2032 2033 Total Rooms Revenue $7,790,339 $8,858,313 $9,972,671 $10,375,607 $10,686,875 Source: CBRE Our projections include a sustainable occupancy and market supported ADR. The stabilized revenue yield in the local Ames market at 143.6% is reasonable based on its new construction and quality level at the upper end of the market. The subject’s projection of rooms revenue is illustrated again in the Estimated Operating Income Section of this report. Executive Summary vii © 2025 CBRE, Inc. 6. Conference Center and Hotel Operating Income Conference Center 5-Year Cash Flow F&B Expense $1,441,587 44.5%$1,476,493 44.3%$1,512,196 44.0%$1,557,562 44.0%$1,604,289 44.0% Other Expense $259,162 8.0%$266,937 8.0%$274,945 8.0%$283,193 8.0%$291,689 8.0% A&G $340,150 10.5%$342,013 10.3%$343,681 10.0%$353,991 10.0%$364,611 10.0% IT $48,593 1.5%$50,051 1.5%$51,552 1.5%$53,099 1.5%$54,692 1.5% Sales & Marketing $550,719 17.0%$550,557 16.5%$549,889 16.0%$566,386 16.0%$583,378 16.0% POM $226,767 7.0%$233,570 7.0%$240,577 7.0%$247,794 7.0%$255,228 7.0% Utilities $194,371 6.0%$200,202 6.0%$206,209 6.0%$212,395 6.0%$218,767 6.0% Management Fee $97,186 3.0%$100,101 3.0%$103,104 3.0%$106,197 3.0%$109,383 3.0% Insurance $16,198 0.5%$16,684 0.5%$17,184 0.5%$17,700 0.5%$18,231 0.5% Reserve For Replacement $64,790 2.0%$100,101 3.0%$137,472 4.0%$141,597 4.0%$145,844 4.0% Source: CBRE Hotels Executive Summary viii © 2025 CBRE, Inc. Stabilized Operating Income - Hotel ONLY Period Ending: 12/31/2031 Number of Rooms 200 Annual Available Rooms 73,000 Occupied Rooms 48,180 Occupancy 66.0% Average Rate $206.99 RevPAR $136.61 Total Ratio to Sales PAR POR NET INCOME (EBITDA)$4,302,074 32.2% $21,510 $89.29 Operating Expense Ratio 67.78% Departmental expense ratios are based on departmental revenues. Franchise/Royalty ratio is based on room revenues; all others are based on total revenues. Compiled by CBRE Analysis Premise Stabilized Cash Flow Executive Summary ix © 2025 CBRE, Inc. 7. Economic and Fiscal Impact Proposed Conference Center and Hotel - Ames, IA Summary of Economic, Employment & Fiscal Impact Economic Impact Conference Center Hotel Totals Total Economic Impact from Construction $15,200,000 $42,500,000 $57,700,000 Total Economic Impact from Labor - 10-Year Period $14,800,000 $40,200,000 $55,000,000 Total Economic Impact from Operations - 10-Year Period $14,000,000 $31,700,000 $45,700,000 Total Economic Impact from Visitation - 10-Year Period $407,400,000 $407,400,000 TOTAL Economic Impact $565,800,000 Employment Impact Total Jobs from Construction within Ames MSA 55 151 206 Jobs Direct Jobs (FTE) from Hotel Operation 52 142 194 Jobs TOTAL Employment Impact 385 Jobs Fiscal Impact Potential City Hotel Occupancy Tax Revenues - 10-Year Period $20,100,000 $20,100,000 Potential Sales Tax Revenues - 10-Year Period $3,628,063 $12,271,937 $15,900,000 Potential Property Tax Revenues - 10-Year Period $7,300,000 $7,300,000 TOTAL Fiscal Impact $39,671,937 Source: CBRE Hotels Introduction 1 © 2025 CBRE, Inc. Introduction Overview of the Market Study CBRE Hotels was retained by Away Team, LLC, Discover Ames, and Ames Regional Economic Alliance (client and intended user) to perform a study of the potential market demand for both a conference center and an adjoining hotel (the “Subject”) to be located at the cross streets of Clark Avenue and Lincoln Way between Clark and Kellogg Avenues in Ames, Story County, Iowa. As a component of this analysis, after we identified the potential market demand for conference facilities in the Ames lodging market as well as estimates of the number of events and attendees, we then provided our projections of the occupancy, average daily room rate (“ADR”), and revenue per available room (“RevPAR”) the proposed subject hotel could reasonably be expected to achieve for its first 10 years of operation. Given these projections, we have also estimated the subject’s annual operating results, including total operating revenues and expenses, net income from operations, and ratio to total revenues for ten years of operation. We assumed the proposed conference center and hotel would be open and available for occupancy/attendance on January 1, 2029. This report represents the culmination of our market research, analysis, and assessments relative to the potential market demand for the proposed hotel. Assumptions Used For Projections Our analysis was based on the following set of assumptions: The proposed conference center and hotel is to be located at the LINC development along Lincoln Way in Ames, Story County, Iowa; The conference center will be adjacent or adjoining to the conference center with an indoor access between the two structures; The conference center and hotel will be a synergistic operation with a combined sales and marketing structure to drive events and increase room nights to the Ames market; The conference center and hotel are dependent upon each other to achieve regional market success and induce additional demand into the market, as such, the estimated performance of either the conference center or hotel can’t be achieved in isolation. They must co-exist; The conference center is recommended to be 35,000 SF with 28,000 SF of usable indoor meeting space; The proposed hotel is recommended to have 200 guest rooms; The subject will be positioned as an upper upscale Conference Center and Hotel; The subject will offer facilities and services consistent with a prototypical full-service Conference Center and Hotel; Introduction 2 © 2025 CBRE, Inc. The subject will be professionally and competently managed by a brand or reputable third-party operator; The ownership/developer of the subject will obtain approvals from local government Planning and Development to develop the property; and, The proposed project will open on January 1, 2029. Methodology In conducting the study, we: Physically inspected the subject site as well as existing and planned surrounding developments; Assessed the impact of the proposed subject’s accessibility, visibility, and location relative to demand generators and overall marketability; Researched and analyzed current economic and demographic trends in the city of Ames and the Des Moines MSA to determine the impact of ongoing trends on future lodging demand within the market; Conducted a demand survey through Discover Ames and the Ames Regional Economic Alliance Identified the competitive supply of lodging facilities in the area; Reviewed the historical performance levels for the competitive lodging supply on a composite basis; Estimated the anticipated growth in demand for, and supply of, lodging accommodations in the competitive market area; Calculated the potential induced demand into the local Market NOT captured by the subject Assessed the positioning of the hotel to be located at the subject site within the competitive market and prepared a forecast of the potential annual occupancy, average daily rate, and RevPAR for the first five years of operation of the proposed subject; Prepared a statement of estimated annual operating results for the hotel for the ten- year period beginning January 1, 2029; and, Prepared an economic and fiscal impact analysis. Several sources were used in compiling the background information and preparing the analysis contained in this report. These resources included Trends in the Hotel Industry, published by CBRE Hotels; data on the local lodging market gathered through direct interviews with market participants; data provided by sources in the lodging chains, ownership entities, and management companies with which the competitive properties are affiliated; data provided by Smith Travel Research; and economic data on the region from various local governmental and planning entities. Introduction 3 © 2025 CBRE, Inc. Reliance Language Reliance on any reports produced by CBRE under this Agreement is extended solely to parties and entities expressly acknowledged in a signed writing by CBRE as Intended Users of the respective reports, provided that any conditions to such acknowledgement required by CBRE or hereunder have been satisfied. Parties or entities other than Intended Users who obtain a copy of the report or any portion thereof (including Client if it is not named as an Intended User), whether as a result of its direct dissemination or by any other means, may not rely upon any opinions or conclusions contained in the report or such portions thereof, and CBRE will not be responsible for any unpermitted use of the report, its conclusions or contents or have any liability in connection therewith. Extent to Which the Property is Inspected CBRE, Inc. inspected the subject site and its surrounding environs on June 6, 2025. Our inspection included walking the perimeter of the site to observe conditions. We did not walk the entire site or drive the interior of the site. The inspection sample was considered an adequate representation of the subject property and is the basis for our findings. We are not qualified to render an opinion regarding the adequacy or condition of geologic or other components beyond that which is available on public record. The client is urged to retain an expert in this field if detailed information is required. Statement of Competency Andrew Hartley, Brylynn Swayzer, and Michael Cummings have the appropriate knowledge, education, and experience to complete this assignment competently. Area Analysis 4 © 2025 CBRE, Inc. Area Analysis Population Source: Esri Area Analysis 5 © 2025 CBRE, Inc. Income Education Employment In summary, the subject area is forecasted to experience an increase in population, an increase in household income, and an increase in household values. Neighborhood Analysis 6 © 2025 CBRE, Inc. Neighborhood Analysis Neighborhood Analysis 7 © 2025 CBRE, Inc. Location The Ames, Iowa market is relatively stable and attractive for investment, with low vacancy rates, modest rent growth, and strong economic fundamentals. It is intrinsically linked to Iowa State University as the founding of the institution preceded the incorporation of the city by 8 years. Geographically, it is situated in a low-lying rolling plane created by the retreat of glaciers during the last ice age. As such, it features fertile soil, but also slow drainage, typical of tallgrass prairies. This makes the area ideal for farming and is one of the reasons it was selected as the location for the university. The subject site is located in the heart of downtown Ames, developed before 1875, and located nearby the rail line. It formerly held a number of commercial buildings, including a gas station on the southwest corner, a Chinese restaurant, Starbucks, strip mall, a bank, and others. These were closed and demolished between 2018 and 2022. Three buildings remain at the site, a small utility building, an EZ Pawn and Romantix. The land is part of an overall plan of reinvesting along Lincoln Ave, utilizing a development grant paid for with TIF funds. Boundaries The subject is South of the UP rail line bound by the following streets: Land Use Land use around the subject consists of a mixture of retail, chain restaurants, business and government offices along Lincoln Way, with single family residential to the south. To the immediate north are a car wash and a single-floor cabinet business. Beyond lies a small greenspace buffer and the train line. To the north of that is a surface parking lot spanning three full city blocks, along the back entrances of the historic main street. The shops and restaurants on that side are more boutique and highly local, in contrast to the chains to the south of the site. Demographics Selected neighborhood demographics in 1-, 3- and 5-mile radius from the subject are shown in the following table: Neighborhood Analysis 8 © 2025 CBRE, Inc. Cross Streets of Clark Avenue and Lincoln Way Ames, IA 50014 1 Mile Radius 3 Mile Radius 5 Mile Radius Ames, IA Metropolitan Statistical Area Selected Demographics Major Employers The primary employer in Ames is Iowa State University, with over 10,000 employees and a reputation for strength in engineering, agriculture, and veterinary medicine. Many employers in the area have ties to, or recruit from, the university programs. The USDA Centers for Animal Health is located in the city, with over 700 employees. As is typical, local schools and government are both significant employers. Non-government employers include McFarland Clinic, a major healthcare provider with over 2,000 employees, software companies, food manufacturing, engineering, and agricultural sciences. Neighborhood Analysis 9 © 2025 CBRE, Inc. Ames, Iowa Major Employers Iowa State University Iowa Department of Transportation TMC Transportation City of Ames Mary Greeley Medical Center Danfoss Sauer-Danfoss McFarland Clinic PC Ames Community School Hach Companies National Centers for Animal Health Workiva 3M Ag Leader Technology National Animal Disease Center American Packaging Sigler Companies Ames Laboratory Ballard Community School District Barilla Burke Corporation Fareway Stores Hy-Vee Food Store, Lincoln Center Hy-Vee Food Stores, West Key Cooperative Mary Ann's Specialty Foods Renewable Energy Group Story County Van Diest Supply Company 10,000+ Employees 2,000-5,000 Employees 1,000-2,000 Employees 500-1,000 Employees 250-500 Employees Economic Highlights Not only does Ames have a diverse array of industries, they have experienced significant investment and growth over the last 15 years, owing to business a friendly environment, a highly educated workforce pipeline (thanks to the university), and a culture of fostering innovation and startups within the ISU Research Park. In an environment in which many universities are facing declining enrollment, ISU has grown year-over-year, though like most institutions, is still recovering from the effects of COVID. Being a state University, it has a high acceptance rate, though it also boasts an impressive retention rate of 88%, and a 75% graduation rate (9% better than the national average). It has kept tuition low, at around $10,000, and out of state costs are competitive with other public universities. More importantly, ISU is a land grant university with a large and respected research department. While its US News ranking is below its peers, its agricultural programs are the best in the nation, and rank highly among global programs. John Deere, in conjunction with ISU, opened a demonstration farm in 2022 to test sustainable farming techniques, with rumored plans of creating a showcase building sometime in the future. In the city and its surrounds, advanced manufacturing, ag tech, and bio tech companies sit at the cutting edge of technology, with food processing and traditional manufacturing taking advantage of the centralized location between several major markets. Neighborhood Analysis 10 © 2025 CBRE, Inc. The city has successfully attracted and facilitated the growth of companies with financial assistance, gap financing, tax increment financing and other incentives. CYTown ISU is investing roundly $200 million in a new mixed-use development between Jack Trice Stadium and Hilton Coliseum. Called CyTown, this new project will expand the research park, and create new campus attractions. It will feature 8 new buildings on the 94-acre site in addition to the existing 5. There is a hotel planned for the development to be operated and branded as a Marriott. Currently, the room count and facilities are not finalized as multiple interviews in the marketplace indicate either various room counts. At this point, CBRE assumes roundly 150 rooms as additions to Hotel supply. Other uses include retail space, office, a dining hall, as well as an amphitheater. The LINC on Lincoln Way Another major development set to improve and expand Ames is the Downtown Adjacent LINC on Lincoln Way. This mixed-use development will include the subject Conference Center and Hotel as a major anchor. It will expand the retail footprint in Downtown into a more dense and walkable destination. Other uses include new offices, as well as high end apartments. The development will promote a live, work, learn, and play environment while also bringing more density to the City of Ames. Coupled with the CyTown project at ISU, these two developments are likely to spur further centralized growth in the area. Retail Overall vacancies for retail are much lower than the nation at 1.2%, with nominal rent growth of 0.4%. This indicates a resilient sector with long-term potential. However, this varies by property type and location. North Grand faces ongoing challenges typical of malls across the country, while the corridor along Duff consists of chains, big-box retail, and fast food. Most relevant to the subject is the downtown area, which includes a mix of boutique and specialty shops, restaurants, bars, and other “college town” focused businesses. The City, Economic Alliance, and other support institutions have focused on improving the area, activating underused spaces, and creating a hub for locals and visitors alike. The LINC is an important component of this plan, bringing retail, residential, hotel and meeting spaces to the heart of the city. Office Ames offices remain robust, with a vacancy of 1.2%. The minimal amount of new space has been slow to absorb, the University Research Park serves as an incubator, meaning that long- term prospects remain positive. Owing to the variety of businesses in the area, buildings have increased rents by around 2.2%, though there is no new supply currently under construction. Neighborhood Analysis 11 © 2025 CBRE, Inc. There will be several office buildings in CyTown with tenants already lined up for the planned opening in 2028. Industrial Due to the presence of ISU, the industrial sector in Ames includes a mixture of class A office, high-tech, and laboratories. In addition, logistics, processing and specialty manufacturing all contribute to a robust sector. Vacancy of 3.2% and rent growth of 1.7% are strong leading indicators. While there are no new projects currently under construction, the last ten years saw an average annual increase of 63,000 sq ft. Housing As a big 12 university, ISU has a substantial student body, though its on-campus capacity is only around 10,000. This means that most students must seek off-campus housing. As of 2025, there are 6 purpose-built student apartments. As these are typically shared units, somewhere between 4-5,000 students can be accommodated. This leaves over 10,000 students in the single family and multi-family sector. This dynamic has created a market with very low (3.7%) vacancy, with modest rent growth. Off- campus students compete with residents for space, though their presence has not skewed housing prices as much in Ames as elsewhere. However, despite high turnover, they represent a strong and stable base. While rents increased during recovery, average rent increases have cooled to around 1.3%. Notably, the city has not seen new construction at a large scale since 2019, when vacancies exceeded 10%. There was no post-covid jump in vacancies in contrast to the US on average, which sits at around 8%. There is little difference in occupancy by size or quality, an a fairly tight rate spread from $1325 for 5 stars to $936 for 1-star properties. As is typical of “college towns” students are most likely temporary residents, to which the city has responded by incentivizing additional housing, mixed use development, and placing rental restrictions on certain neighborhoods. This funnels development into specific areas, such as the LINC, where infrastructure and development costs may be partially subsidized. Student Dynamics While universities provide major demand for restaurants, bars, and retail, they also pose challenges. Seasonal employment, high turnover, labor shortages and volatile incomes are endemic to “college towns”, though the academic year is long enough that businesses remain open. This requires a diverse customer base and year-round engagement. Mixed-use developments with dining, events, and entertainment in a centralized location are an ideal solution to this dynamic. Neighborhood Analysis 12 © 2025 CBRE, Inc. Transportation Highway Transportation Ames is served by Interstate 35, which begins in Duluth in Minnesota to the north, and runs the entire length of the country to Laredo Texas in the south. It connects with I 80 in Des Moines to the south, and I 90 to the north around halfway between Ames and Minneapolis. US 30 intersects I-35 in the south portion of the city, with ongoing construction to widen US 30 to 6 lanes through the city and increasing capacity along I-35 to Des Moines. Traffic along US 30 is highest between I-35 and US 69, 2 miles to the west, averaging 16,300 vehicles each way a day, of which 15,000 are passenger vehicles. US 69 from US 30 to downtown is the highest volume in-town route, with 12,600 vehicles daily in each direction. The I-35 ramp to Des Moines reaches 8,800, while the off-ramp sees 7,700 vehicles daily. Around 15% of vehicles on I 35 are commercial, while in-town percentages are 4% or under. Air Transportation James Herman Banning Ames Municipal Airport is a 2-runway regional airport, with 63 local aircraft. It averages 921 flights per day, including training. It is operated by Central Iowa Air Service and includes private and charter aircraft. Notably, ISU uses the airport for athletic teams, with the exception of the football team which flies out of Des Moines, as the runways are too small for the required 757 or 747s. The Des Moines International Airport is 20 miles south of Ames, and is a commercial service airport, with flights from American, Allegiant, Delta, Frontier, Southwest, and United. It has three restaurants, cafes, and Hudson shops. It includes a TSA checkpoint and serves over 2.5 million passengers annually. Other Transportation The city has a Union Pacific freight rail line, though the nearest passenger rail lies in Osceola, south of Des Moines. It has a robust bus system with free service for students and low cost fares for residents. The city also has an Intermodal facility, with intercity bus and private shuttle services. Tourism According to Discover Ames, Story County received $228 million in visitor spending in 2023, generating $48.6 million in taxes. 98% of lodging revenue ($43.2 million) is attributable to Ames amounting to 350,000 room nights. In total, 2,470 jobs are supported by tourism. Iowa State University is the primary draw, with game days, commencement and graduations, and related events filling hotels to capacity. This amounts to around 20 citywide fill nights annually. In addition, the campus itself includes multiple museums and cultural attractions, including Neighborhood Analysis 13 © 2025 CBRE, Inc. Reiman Gardens, a Campanielle, Farmhouse Museum, and Brunnier Art Museum. Stephens Auditorium hosts plays, concerts, and other events throughout the year. In addition, high school sports and academic conferences provide summer demand, as do city events such as farmers markets, a history museum, parks and bike trails, concert series, and garden shows. According to Travel Iowa, day trips and 1-night stays account for around 50% of tourism visits. Visitors from Des Moines represents 27% of travelers, with Cedar Rapids, Minneapolis, Chicago, the quad cities, and Omaha rounding out the effective market area. August (move-in) is the most popular month, followed by January (sports), then May (graduation). While this indicates that there is some leisure tourism in the market, given high Friday and Saturday demand, events continue to be a primary driver. In discussing the competitive set of hotels later in this study, it should be noted that by isolating the newer franchised hotels in the market, the expected seasonal pattern for Midwest hotels of strong summer and low winter demand is clearly visible. This contrasts with the overall regional market, which underperforms in all seasons. Groups and Meetings After interviews with Discover Ames, the city department of planning, Regional Economic Partnership, local hoteliers, as well as other key stakeholders in the business community, there is broad consensus that there is high demand for additional meeting facilities. This is an issue that has been examined at length, from a 1996 study to a 2024 survey. The existing facilities in Ames are not large enough to accommodate many of the groups and do not offer the quality facilities that meeting planners expect. Ames is strategically located to attract numerous conference and meeting functions. Being centrally located in the State along Interstate 35. However, despite the numerous venues available within Iowa State University, existing spaces are frequently booked by academic and athletic departments. The Scheman Building, a conference center operated under the ISU extension program, accommodated a variety of association business, corporate conferences, and various other events, although maximum size was limited. Three factors have resulted in significant loss in events over the previous decade. First, Des Moines has expanded its offerings dramatically. While the Community Choice Credit Union is an older facility, it has been renovated into a nearly 30,000 square foot ballroom with 25 additional meeting rooms. Concerts and sports now take place in the Casey’s Center (previously Wells Fargo Arena), while the EMC Expo Center (formerly Hy-Vee hall) includes over 100,000 sq ft of flat space in addition to 8 meeting rooms. Further, the events center includes a connected Hilton hotel, and a nearby airport. Neighborhood Analysis 14 © 2025 CBRE, Inc. Second, the pandemic caused many events to postpone or cancel for the years of 2020 and 2021, with reduced sizes upon their return. Due to this gap and reorientation, meeting planners reassessed how they approach events, shifting the market. Third, the Scheman Building was repurposed for the ISU Athletic Department, and now includes a fan-zone and other elements. While it still has a number of dedicated meeting rooms and can host events, like the other university operated spaces, it is frequently closed for booking due to school events. The CVB has indicated more than 41 groups in 2025 alone were lost due to venue constraints. This effect is compounded in the upcoming years, as events typically are booked well in advance. According to their records, over 600 events representing over 350,000 hotel nights have been lost. Although space exists to accommodate groups of up to 360, it can only host one event at a time, and is somewhat dated. These groups consist of various statewide professional associations, governmental agencies, medical institutions, and corporate meeting planners. After interviews and some of the initial survey feedback, the following sentiments were expressed: • Many groups are in need of facilities to host events in excess of 400 attendees annually or biannually. Some groups expressed needing space to accommodate roundly 1,000 attendees. There is not an adequate facility in the market that can accommodate these large events. • The Memorial Hall and other campus spaces is configurable for weddings and banquets, but with limited windows of availability and shorter lead times. • While conference space has been considered as part of the University’s CyTown development, it is not actively in planning for the initial construction phases. • There is not adequate flat space to host conferences or events within the city, with current options requiring extensive setup and teardown to host non-sports meetings. • Existing hotels are located 2 miles from the center of the city and require shuttling to and from events, raising expense and lowering potential ancillary revenue. Furthermore, this market dynamic is not attractive to most meeting planners. • The restaurants and shops downtown are a desirable location for travelers and residents alike. With the LINC Development, additional walkable retail and dining options will increase the attraction for groups to the subject site. Conclusion Ames is a desired destination for professional and fraternal associations, government agency conferences, corporate meetings, academics and sports with unique shopping, dining, and attractions. The city is proactive in promoting economic growth in the region with a master plan to increase activity in the immediate area and address housing and community concerns. The Neighborhood Analysis 15 © 2025 CBRE, Inc. subject’s proposed use as a full-service conference center and hotel will be a key element of the city’s continued growth. Demand Survey 16 © 2025 CBRE, Inc. Demand Survey Introduction In order to maximize the input from the community and other potential users, CBRE Hotels conducted email surveys to identify the types, number and size of the potential events, number of breakout rooms, number of hotel rooms and the potential average daily room rate for the proposed Conference Center and Hotel. The survey results are summarized below. We surveyed meeting planners through Discover Ames. These meeting planners were groups which currently hold events in Ames, as well as groups turned away due to lack of facilities. CBRE received 152 responses to this survey. This sample size was considered reliable in gathering data and is represented in the following charts. We also surveyed the Ames Regional Economic Alliance member list to maximize the input from the community since members include corporations, business owners, healthcare and educational institutions, non-profit organizations, community organizations, existing meeting facilities, hotels, restaurants, churches, performing arts groups, etc. The survey generated 15 responses. Since there were minimal responses, the results were not analyzed but the responses were included in the addendum of this report. Number of Events - Current The following table presents the number of annual events the Meeting Planner respondents currently hold. In summary, the respondents indicated 1,805 events held every year. Events per Year Total (Including Frequency) Type of Event % # % # % # % # % # % # # Total Events 289 236 175 180 165 760 1,805 Source: CBRE Hotels 20+ Annual Frequency Annual Frequency Annual Frequency Annual Frequency Annual Frequency Annual Frequency 1-3 4-7 7-10 10-15 15-20 The greatest concentration of events are Meeting/Trainings, Convention/Conference, and Other. Demand Survey 17 © 2025 CBRE, Inc. Size of Events - Current The following table presents the average size of events the Meeting Planner respondents currently hold. Typical Size of Events 1 100 200 300 500 800 to to to to to to Type of Event Min Max Median Average 100 200 300 500 800 1200 Total 191 105 92 91 87 82 Source: CBRE Hotels Number of Attendees Number of Responses Indicated The largest sized events are Sports, Trade/Consumer, and Convention/Conference. However, most responses indicated a greater frequency of Conference/Convention events, this indicates the need for conferencing space to accommodate up to 1,000 attendees. Breakout Space The following table presents the number of breakout rooms indicated in the survey. Breakout rooms are considered secondary space from the main exhibit hall or ballroom space that large events will need for other uses, such as group breakouts, staging, registration, etc. The respondents indicated the most need for 3 to 8 breakout rooms. CBRE recommends facilities for 6 to 8 breakout rooms. Demand Survey 18 © 2025 CBRE, Inc. Number of Breakout Rooms Breakout Rooms Responses % Source: CBRE Hotels CBRE Recommendation Hotel Rooms The following table is a summary of the hotel rooms needed per event. 47% of the responses indicated no hotel rooms needed, likely attributed to local events. However, convention/conference events had the most responses and indicated the need for the most hotel rooms. Number of Hotel Rooms Needed per Event Type of Event Total % # % # % # % # % # % # % # % Total Events 47% 338 22% 159 11% 78 6% 44 7% 48 2% 17 5% 39 724 Rooms 0 47% 338 1 to 25 22% 159 25 to 50 11% 78 50 to 100 6% 44 100 to 200 7% 48 200-300 2% 17 300+5% 39 Source: CBRE Hotels None Responses Summary <25 Rooms 25-50 50-100 100-200 200-300 >300 Rooms Hotel Rate The respondents were asked the average hotel rate quoted for their events currently. The following table summarizes the results of the survey. In summary, the survey portrayed a Demand Survey 19 © 2025 CBRE, Inc. weighted average hotel rate quoted of $146. Moreover, 32% of the respondents indicated a hotel rate ranging from $150 to $200. Average Hotel Rate Quoted Min Max Median Average $80 $100 $125 $150 $200 to to to to to $100 $125 $150 $200 $300 Source: CBRE Hotels Distribution Facilities The following table presents the Survey results indicating the preference for amenities. An indoor connection to conference space is the most needed amenity according to the survey followed by a restaurant, and Café/Grab and Go. These amenities indicate a need for a full-service Conference Center and Hotel. Hotel & Conference Center Amenities Amenity Total Source: CBRE Hotels Indifferent Somewhat Needed - But Not Required Highly Needed - Required Guestroom Mix The following table presents the preference for the type of hotel guestroom. Standard king bed rooms are considered most in need with comments indicating many single occupancy preferences. Demand Survey 20 © 2025 CBRE, Inc. Hotel Guestroom Mix Guestroom Type Total Somewhat Needed - But Not Required Indifferent Source: CBRE Hotels Highly Needed - Required Site Attributes The following table presents various site attributes and the level of preference from the respondents. The most needed attribute was for a site walkable to retail shops and restaurants. This is very supportive of the downtown location of the Subject site. While 23% of the respondents indicated a requirement for their events to be held on ISU campus, 46% were indifferent. This reflects the positive potential for events being held off ISU campus. Site Attributes Attributes Total Highly Needed - Required Somewhat Needed - But Not Required Indifferent Source: CBRE Hotels Event Relocation The following table presents the Survey results indicating the potential preference for the proposed Conference Center and Hotel. 80% of the respondents will consider moving their events to the new facilities. Based on the survey, the need for new facilities is desired among meeting planners. Event Relocation Responses Yes NO Source: CBRE Hotels Demand Survey 21 © 2025 CBRE, Inc. Events Willing to Relocate The following table presents the typical size of events the respondents indicate could be accommodated by the Subject Conference Center. The survey implied roundly 300 events could be accommodated at the subject with potentially 65,000 to 100,000 annual attendees. If Relocated to Ames - Typical Size and Number of Events Type of Event Total Total Implied Events 21% 66 17% 51 21% 66 17% 51 12% 37 4% 12 2%7 6% 18 308 65,016 - 102,400 1 to 50 50 100 200 400 600 800 1000 to to to to to 5,600 18,000 21,600 66 to to 100 200 400 600 800 1000 1200 Source: CBRE Hotels Range of Identified Attendees 3,300 5,100 13,200 20,400 22,200 9,600 2,550 6,600 10,200 14,800 7,200 -------- 7,000 Willingness to Pay The respondents were asked about their willingness to pay MORE to use the proposed facilities. Only 41% of the respondents indicated a willingness to pay more for the new facilities. If Relocated to Ames - Would You be Willing to Pay More? Responses Yes NO Source: CBRE Hotels Conclusion The survey indicated a need for new conference and hotel facilities. Based on the survey, the number of potential events that could be held at the subject is roundly 300 with an attendance up to 100,000 annually. The Downtown location is considered a preferred attribute, and the hotel facilities should be upscale, full-service with a connection to the Conference Center. The average rate the respondents are currently paying is $146 with 41% indicating a willingness to pay more. Limitations of the survey include the sample size of respondents, the timing, as well as the inherent subjectivity of some of the responses. However, the survey is generally a positive response for the proposed project. S ite and Facility Analysis 22 © 2025 CBRE, Inc. Hotel Site and Facilities Recommendations Aerial View Subject – LINC Development Site Analysis 23 © 2025 CBRE, Inc. Site The Site for the proposed subject within the LINC Development is not explicitly determined at this time, as the final massing is still in the planning phases. However, for the purposes of this study we have recommended an improvement of 140,000 to 150,000 SF within 7 to 9 stories. As such, we are assuming a 35,000 to 45,000 SF allocation on the LINC site be available for the Conference Center and Hotel. This should account for setbacks, landscaping, and egress/ingress. In addition to the land needed for the footprint of the building we assume adequate parking needs in the planned parking structure. While typical hotel development or zoned parking requirements indicate a minimum of 1 parking space per guestroom, with the conference center, we recommend a minimum of 1.5 parking spaces per guestroom allocated to the hotel. A third- party parking study is recommended to determine any additional parking needs. Additionally, we recommend offering valet parking for hotel guests and large events as a parking structure can create bottlenecks for many attendees. Recommended Facilities CBRE Hotels was not provided with plans or renderings of the proposed Conference Center and Hotel. The following table shows a summary of the recommended facilities utilized for this market study. Improvements Summary and Analysis (full service) Hotel Conference Center The development is considered in the preliminary stages of concepting, the above recommended facilities were developed as a hypothetical concept. Design and Layout We have assumed the total improvements will be two buildings adjoining or adjacent to one another with an access via hallway or short covered walkway. The front entrances to the conference center and hotel should be accessed via self-parking. The hotel may also include a valet stand which could also service the conference center depending on the layout, type of event, and capacity. The ground level of the hotel will house the lobby, registration desk, administrative Site Analysis 24 © 2025 CBRE, Inc. areas, restaurant and bar, as well as an access point to the conference center. It is likely many event attendees will enter the hotel side, however the Additionally, all “back of the house” facilities will be located on the main level including shipping, mechanical rooms, et cetera. Guestrooms The subject’s guestrooms should be located on all floors of the facility and accessible via interior corridors. The guestroom mix should be generally commensurate with brand standards and similar full-service hotels in the marketplace. The subject’s guest units will feature hard and soft goods similar in quality and function as its competitors, such as: drapes, bedding, wallpaper, wall- prints, chairs, tables, televisions, furniture such as dressers, and lighting. The bathrooms will include modern fixtures and units will include a standalone shower or soaking tub, depending on the brand requirements and standards. The standard rooms at the subject will feature either one king-size or two queen-size beds. The suites at the facility should feature a small wetbar. Guest Room Configuration Room Type No. Rooms Percent of Size (SF) Standard King Room 90 45.00% 325 Standard Double Queen 90 45.00% 350 King Suite 12 6.00% 500 Double Queen Suite 8 4.00% 550 Total/Average:200 100% 356 Source: Compiled by CBRE Food & Beverage Facilities The facility’s restaurants will range from a grab and go market and a lobby bar to a full-service signature restaurant/rooftop bar. We recommend the restaurant have easy access and visibility to attract local diners. The menu and marketing should include the latest trends and be constantly evolving to stay relevant. All of the F&B outlets are recommended to be operated by property ownership/management, and none will be leased to third-party operators. Food & Beverage Facilities Name Seating Capacity Comments Site Analysis 25 © 2025 CBRE, Inc. Conference Center The subject is recommended to include a total of 20,000 to 25,000 square feet of meeting space for the conference center. The largest single breakout meeting or ballroom space should measure between 10,000 and 15,000 square feet to accommodate roundly 1,000 guests. Ample breakout space should be provided proximate to the conference center. Furthermore, we anticipate the Hotel rooftop F&B offerings, hospitality suites, and restaurant space to serve as additional event space for groups. The following table also includes square footage needed for pre-function space and back of house. Overall, the Conference Center will likely require a GBA of 35,000 SF. Meeting/Banquet Rooms (Rounded Recommendations) Name Size (SF)Type/Comments Total 35,000 Total 3,000 Total Interior Four Wall Space 23,000 Compiled by CBRE CONFERENCE CENTER HOTEL Amenities/Additional Services Based on the competitive market and typical brand standards, the hotel should also include a pool, fitness center, grab and go market, and a business center. ADA Compliance All common areas of the property are expected to have full accessibility. Site Analysis 26 © 2025 CBRE, Inc. Brand Recommendations It is recommended the Proposed Hotel adopt a brand from one of the major hotel companies such as Marriott, Hilton, Hyatt, or InterContinental Hotel Group (IHG). These brands have the ability to open up significant distribution with national and regional sales and marketing efforts, especially in the groups and meeting space. Furthermore, after-market interviews with various meeting planners nationally, these brands are generally preferred for attendees. Potential brands available include: Doubletree, Curio – Hilton Marriott, Autograph Collection – Marriott Hyatt Centric, Hyatt Regency – Hyatt Kimpton – IHG Conclusion The recommended facilities are supported by market interviews, industry trends, demand surveys, and comparable properties. Moreover, these recommendations are to assist in the preliminary stages of the development planning. The market analysis and estimated operating results assume the recommended facilities to be high quality and adhering to upscale, full-service standards. Tax and Assessment Data 27 © 2025 CBRE, Inc. Tax and Assessment Data The following summarizes the potential estimate of the subject hotel’s assessed value, and taxes, based on the comparable data, and does not include any furniture, fixtures or equipment. The CBRE estimated tax obligation is also shown. Tax Comparables As a crosscheck to the subject’s applicable real estate taxes, CBRE, Inc. has reviewed the real estate tax information according to Story County for comparable properties in the market area. The following table summarizes the comparables employed for this analysis: Ad Valorem Tax Comparables Comparable Hotel Holiday Inn Express & Suites Ames Fairfield Inn & Suites Ames TownePlace Suites Ames Hampton by Hilton Inn & Suites Ames Courtyard Ames Staybridge Suites Ames SpringHill Suites Ames Hilton Garden Inn Ames Subject Estimate Estimated Assessor's Taxable Value $3,321,450 $3,603,240 $5,400,000 $5,669,280 $9,801,180 $7,250,220 $7,247,970 $6,822,000 $18,000,000 AV Per Room $44,286 $47,411 $60,674 $62,992 $82,363 $88,417 $75,500 $60,911 $90,000 Combined Tax Rate (per $1000 A.V.)30.645640 30.645640 30.645640 30.645640 30.645640 30.645640 30.645640 30.645640 30.645640 Total Taxes $101,788 $110,424 $165,486 $173,739 $300,363 $222,188 $222,119 $209,065 $551,622 Per Room $1,357 $1,453 $1,859 $1,930 $2,524 $2,710 $2,314 $1,867 $2,758 Source: Assessor's Office As illustrated, the assessed values for comparable properties range from $44,286 to $88,417 per room, since the subject will be a higher quality hotel relative to the local properties, we have positioned it just above the range at $90,000/key. Conclusion Based on the foregoing, the total taxes for the subject have been estimated as $551,622 for the base year of our analysis, based upon an assessed value of $18,000,000 or $90,000 per room. Additionally, we have assumed taxes will increase 3.0% percent per annum over the projection period. While the conference center as a publicly owned facility will be exempt from property taxes, the hotel is assumed to pay property taxes for this study. Market Analysis 28 © 2025 CBRE, Inc. Market Analysis Understanding the relationship between supply and demand is a critical component of any appraisal, particularly with respect to hotels. Unlike other property types, hotels essentially lease their rooms on a daily basis. While this characteristic allows for an immediate response to changes in market conditions, it also requires a high level of management intensity. There is an inverse relationship between occupancy and average daily rate (ADR) and raising or lowering rates typically has an immediate impact on room-nights sold. Effective management entails finding the proper balance that allows for the maximization of revenue. In this section we first identify the subject property’s competitive set (e.g., those hotels that tend to compete for the same sources of demand). We then identify relevant demand sources, analyze historical growth patterns and assess the potential for growth (or lack thereof) in demand by segment. The result is a projection of future market performance. Lastly, we conclude with a projection of occupancy and ADR for the subject property, taking into consideration its competitive strengths and weaknesses relative to the overall market. Some hotels are more directly competitive than others based on their locations, facilities, branding, etc. This disparity in the level of competitiveness can be handled in a number of ways. Some appraisers assign a percentage to each property and include only a portion of their guest rooms in the competitive set. This technique, while theoretically sound, is highly subjective and the overall analysis can be extremely sensitive to the assumptions made. Alternatively, we have chosen to address this issue through our projected penetration rates. For example, the introduction of a new property that is only marginally competitive will have a limited impact on the subject property’s penetration level, whereas a directly competitive property will likely have a substantial effect. Regardless of the method employed, properly assessing the relationship between supply and demand and its impact on the subject property and market occupancy requires a level of professional judgment. Neighborhood Hotel Inventory A summary inventory of hotel rooms located in the subject's identified neighborhood is provided in the following table: Market Analysis 29 © 2025 CBRE, Inc. Exisiting Hotel Rooms (5 Mile Radius) Hotel State Date Built # of Rooms Price Tier Chain Scale Dist from Subject (Miles) Count/Average/Total 24 Properties 1,953 Lodging supply within a five-mile radius of the subject consists of 1,953 hotel rooms in 24 hotels. Overall, the hotel inventory in the neighborhood ranges from upper-midscale to economy properties, with the three newest hotel properties reaching into the upscale, limited service category. Of the 24 properties in the market, 13 are over 25 years of age, representing slightly more than half of all rooms. The most recent opening was the 82 room Staybridge Suites, with a 90 room sister property open in summer 2025. The majority of hotels are concentrated along the I-35 exit ramp, with the rest to the west on US 30 or the next interstate exit to the north. Market Analysis 30 © 2025 CBRE, Inc. Competitive Hotel Market Analysis There are eight properties with a total of 739 guest rooms in the market, which would compete to varying degrees with the subject. These include a variety of limited, select-service, and extended stay hotels located in the subject’s competitive market. Although additional lodging facilities are present or planned in the market area, they are not considered to be directly competitive due to disparities in terms of location, product, pricing, affiliation and/or quality. Accordingly, a guest who patronizes one of the competitive properties is not likely to be the same type of traveler who, under normal circumstances, would choose these other facilities. The following map depicts the location of each property in relation to the subject. The table on the page after the map provides a summary profile of the defined competitive properties. Proposed Conference Center and Hotel Holiday Inn Express & Suites Ames Fairfield Inn & Suites Ames TownePlace Inn & Suites Ames Hampton Inn & Suites Ames Courtyard Ames Staybridge Suites Ames SpringHill Ames Hilton Garden Inn Ames Market Analysis 31 © 2025 CBRE, Inc. Competitive Supply - Proposed Ames Conference Center and Hotel Ames, Iowa 2024 Hotel Rooms Year Built Occupancy Occupancy Penetration ADR ADR Penetration RevPAR RevPAR Penetration COMP SET TOTALS/AVERAGES 739 61%$135.13 $82.78 Market Analysis 32 © 2025 CBRE, Inc. As shown, the primary competitive set has a total of 939 rooms. The calendar year 2024 occupancy and ADR achieved by these properties was roughly 61% and $135.13, respectively. The competitive supply consists primarily of upper-midscale and upscale, limited, select-service, and extended-stay hotels. The subject hotel will be a unique addition within the local competitive set due to its full-service meeting space and conference center amenities. Additions/Deletions to Supply New supply for the subject’s market area is illustrated in the table below. We have also considered any planned reduction in room count inventory as the result of renovations or redesign for the subject and its competitors: Supply Additions Estimated Additional Dist from Chain Name Opening Competitive Rooms Subject (miles)Scale Status Proposed Ames Conference Center and Hotel 1/1/2029 200 -Planning Home2 Suites by Hilton Ames 6/1/2025 90 1.9 Upper Midscale Open CY Town Hotel 1/1/2028 150 1.5 Upper Upscale Planning Total Additional Rooms 440 Total Annualized Additional Room Inventory 160,600 Compiled by CBRE As shown, our research indicates that 440 new hotel rooms in three projects are under construction, recently opened or planned for near term development that we expect to compete directly with the subject. The Home2 Suites, an extended stay product recently opened in June of 2025 and will compete mostly with the other extended stay hotels like the TownePlace Suites. The CY Town Hotel is a seven-story, 150-room planned hotel within a 94-acre mixed-use development located between Jack Trice Stadium and Hilton Coliseum. This ISU development is in the early planning phases with various announcements indicating different potential room counts. However, after interviews in the marketplace, roundly 150 rooms and lifestyle branding is the most likely, and current plan for facilities. While CBRE has made several attempts to determine the level of new hotel supply entering the marketplace, it is impossible to determine every hotel that will be developed in the future, when they will be completed, or their potential impact to the subject. Should any competitive supply additions occur beyond those listed above and the subject, the estimates of occupancy (and possibly ADR) contained herein would thus be affected and a revision might be required. Market Analysis 33 © 2025 CBRE, Inc. Hotel Demand Demand for hotel rooms is categorized in three ways: 1. Demonstrated Demand: the demand already captured at competitive hotels; 2. Induced Demand: the demand that does not presently seek accommodations in the competitive market, but could be persuaded to do so through marketing efforts, room rates, facilities, services and amenities. 3. Displaced/Unsatisfied Demand: the demand that seeks accommodations in the market but is not satisfied due to a number of factors including: sell-outs during peak season; lack of a particular type of accommodation; lack of meeting space; or high room rates. Historical Performance of the Competitive Market As noted, the preceding properties all compete for area lodging demand and are considered directly competitive with the subject. In order to more precisely identify hotel market trends, as they relate to the subject, CBRE has relied on a customized report prepared by STR, Inc., a national firm specializing in tracking hotel data. The hotels included in the report are based on interviews with representatives of the subject and subsequent field research. The trends in room supply, occupancy, average daily rate, and room-night demand (defined as the number of occupied rooms) for the subject’s competitive set are illustrated in the following table. Market Analysis 34 © 2025 CBRE, Inc. Historical Market Performance STR Trend Competitive Properties Room Night Room Night Market Average Year Supply % ∆Demand % ∆Occupancy Daily Rate % ∆RevPAR % ∆ 2017 161,330 ---109,250 ---67.7% $123.34 ---$83.52 --- 2018 161,330 0.0% 113,819 4.2% 70.6% $126.61 2.7% $89.32 6.9% 2019 161,330 0.0% 111,855 -1.7% 69.3% $121.49 -4.0% $84.23 -5.7% 2020 183,226 13.6% 74,189 -33.7% 40.5% $95.76 -21.2% $38.77 -54.0% 2021 234,141 27.8% 122,959 65.7% 52.5% $111.14 16.1% $58.36 50.5% 2022 239,805 2.4% 148,276 20.6% 61.8% $127.31 14.6% $78.72 34.9% 2023 242,347 1.1% 152,026 2.5% 62.7% $130.51 2.5% $81.87 4.0% 2024 269,735 11.3% 164,840 8.4% 61.1% $135.00 3.4% $82.50 0.8% CAG *7.6%6.1%1.3%-0.2% May TTM 2023 239,805 ---154,996 ---64.6% $128.00 ---$82.73 --- May TTM 2024 254,729 6.2% 152,504 -1.6% 59.9% $132.32 3.4% $79.22 -4.2% May TTM 2025 269,735 5.9% 165,281 8.4% 61.3% $132.67 0.3% $81.30 2.6% CAG *6.1%3.3%1.8%-0.9% May YTD 2022 99,207 56,078 ---56.5% $122.17 ---$69.06 --- May YTD 2023 99,207 0.0% 62,798 12.0% 63.3% $124.43 1.8% $78.76 14.1% May YTD 2024 111,589 12.5% 63,276 0.8% 56.7% $128.84 3.5% $73.06 -7.2% May YTD 2025 111,589 0.0% 63,717 0.7% 57.1% $122.84 -4.7% $70.14 -4.0% CAGR *4.0%4.3%0.2%0.5% * Compound Annual Growth Rate Market Analysis 35 © 2025 CBRE, Inc. Based on trends in the preceding table, critical observations are as follows: The market received three new hotel openings since 2020. Specifically, the 119-room Courtyard Ames in 2020, 96-room SpringHill Suites Ames in 2021 and 82-room Staybridge Suites Ames in 2023. The increase in supply began during COVID, altering the market’s ability to properly absorb the new additions and reach stabilization. The 8-year CAGR, or compound annual growth rate, resulted in a 7.6% supply increase, while demand increased at 6.1% over the same period. The market has demonstrated a slow recovery post-COVID, however, while occupancy shows a decline, overall demand has increase year-over-year. ADR has increased at a CAGR of 1.3% over the 8-year period, below national market averages. RevPAR has decreased over the same period, mostly driven by the low ADR growth rates. Year to date 2025, the competitive market has declined, posting a -4.0 percent reduction in RevPAR. Going forward, we expect the market to improve notably. Demand for all forms of travel should accelerate recovery in the near term with the addition of the subject Conference Center and Hotel, along with other market demand drivers. For this analysis, we have forecast stabilized, long term revenue growth for the market at 3.0 percent annually. As mentioned, the subject will be one of the newer hotels in the competitive market and is considered one of the highest quality hotels in the market in terms of services and amenities offered. Demand Segmentation In most markets, overall demand varies based on the nature of travel. In most markets, the lodging demand is generated from three different segments: Corporate, Group/Meeting and Leisure travelers. In some markets, a fourth classification may be present, such as extended stay, airline contract, government, university, or medical. A breakdown of the overall market segments is illustrated in the following table. Historical Demand Segmentation Segment 2024 Demand % CORPORATE 81,604 49% LEISURE 69,528 42% GROUP 14,101 9% Total 165,233 100% Compiled by CBRE Competitive Set Market Analysis 36 © 2025 CBRE, Inc. Based on historical trends for the various demand segments, the state of the local and national economies, and conversations with local hotel operators in the marketplace, the applicable demand segments are projected to exhibit the following growth trends. Primarily, we anticipate significant growth from the first phase opening of CyTown in 2028, as well as the LINC development (includes the subject hotel) in 2029. As the new supply is absorbed and the two mixed-uses become established in the area, by 2031, the market will be stabilized. Annual Demand Growth Rates 2032 Segment 2025 2026 2027 2028 2029 2030 2031 and beyond Latent Demand Latent demand indicates potential room nights in the marketplace that is not being satisfied. It comes in two forms: induced demand and displaced demand. Induced demand represents room nights accruing to the market area due to the introduction of a new demand generator (such as a convention center or a major company), or the introduction of a new hotel that has distinct advantages over the existing competitors. Displaced demand (also referred to as unaccommodated demand) occurs when the market reaches capacity and additional guests cannot be accommodated. Of course, as rooms are added to the marketplace, the level of displaced demand diminishes. As noted previously, supply additions include the subject Conference Center and Hotel, Home2 Suites Ames, and the CY Town Hotel. Each of these properties is likely to induce a certain level of additional demand due to their presence, unique market orientation, marketing efforts or branding. The following table depicts the level of induced demand expected to be generated by each supply addition. Induced Demand from New Supply Estimated No.Estimated %Induced Name Opening Rooms Stab. Occ.Induced Demand Proposed Ames Conference Center and Hotel 1/1/2029 200 66%60%79 Home2 Suites by Hilton Ames 6/1/2025 90 68%30%18 CY Town Hotel 1/1/2028 150 66%30%30 Total Daily Induced Demand 127 Total Annual Induced Room Night Demand 46,450 Compiled by CBRE Based on the above, the total amount of daily induced demand from new supply is projected to be 127, phased in over the initial years of the projection period as the new projects open. Market Analysis 37 © 2025 CBRE, Inc. The phase-in of the induced room nights is illustrated as follows. Induced Demand by Number of Room Nights Future Induced Demand Phase-In Segment Demand 2025 2026 2027 2028 2029 2030 2031 Induced Demand Rates - Percentage of Forecasted Induced Demand Future Induced Demand Phase-In Segment Demand 2025 2026 2027 2028 2029 2030 2031 Market Demand Summary Based on the preceding discussion of demand characteristics, expected growth rates, latent demand and seasonality patterns, our projections of supply and demand are presented below, along with the resulting projection of market area occupancy. Market Analysis 38 © 2025 CBRE, Inc. Projected Base Demand, Annual Growth, and Market-Wide Occupancy Competitive Set Year Ending 12/31/ 2024 2025 2026 2027 2028 2029 2030 2031 CORPORATE Annual Growth 1.5% 1.5% 1.5% 5.0% 4.0% 3.0% 3.0% Base Nightly Demand 224 227 230 234 245 255 263 271 Annual Room Nights 81,604 82,828 84,070 85,332 89,598 93,182 95,977 98,857 Induced Demand - 1,973 3,380 3,431 7,939 16,885 17,435 17,958 Total Segment Demand 81,604 84,801 87,450 88,763 97,537 110,067 113,412 116,815 LEISURE Annual Growth 1.5% 1.5% 1.5% 6.0% 5.0% 5.0% 3.0% Base Nightly Demand 190 193 196 199 211 222 233 240 Annual Room Nights 69,528 70,571 71,629 72,703 77,066 80,919 84,965 87,514 Induced Demand - 1,776 3,042 3,088 7,609 13,743 14,459 14,892 Total Segment Demand 69,528 72,346 74,671 75,791 84,675 94,662 99,424 102,406 GROUP Annual Growth 1.5% 1.5% 1.5% 4.0% 10.0% 6.0% 3.0% Base Nightly Demand 39 39 40 40 42 46 49 50 Annual Room Nights 14,101 14,313 14,527 14,745 15,335 16,868 17,881 18,417 Induced Demand - 197 338 343 2,525 17,159 18,261 18,809 Total Segment Demand 14,101 14,510 14,865 15,088 17,860 34,028 36,141 37,226 Accommodated Totals CORPORATE 81,604 84,801 87,450 88,763 97,537 110,067 113,412 116,815 LEISURE 69,528 72,346 74,671 75,791 84,675 94,662 99,424 102,406 GROUP 14,101 14,510 14,865 15,088 17,860 34,028 36,141 37,226 Accommodated Market Demand2 165,233 171,657 176,987 179,643 200,072 238,756 248,977 256,447 Market Statistics Existing Rooms Supply 737 739 739 739 739 739 739 739 Proposed Rooms Supply - 53 90 90 240 440 440 440 Total Available Room Nights 269,735 289,080 302,585 302,585 357,335 430,335 430,335 430,335 Growth over Prior Year 7.2% 4.7% 0.0% 18.1% 20.4% 0.0% 0.0% Potential Market-wide Occupancy 61.3% 59.4% 58.5% 59.4% 56.0% 55.5% 57.9% 59.6% Accommodated Market Occupancy 61.3% 59.4% 58.5% 59.4% 56.0% 55.5% 57.9% 59.6% 1 After the base year, displaced demand grows at the respective segment's annual growth rate. 2 If a market occupancy cap is used, accommodated market demand may not equal implied accommodated room night demand. As shown in the table above, the accommodated market occupancy is forecast to increase over the first few years after the opening of the proposed subject, as the market absorbs the new supply and benefits from the conference center demand. Market occupancy is forecast to stabilize in the 60 percent range throughout the holding period, which is reasonable given the projected growth of the Ames market and the amount of directly competitive new supply coming on line around the MSA and in the submarket. Forecast of Occupancy and Average Daily Rate The average daily rate and the overall occupancy of a lodging facility are the foundation for the property’s financial performance. While a property’s other revenue components (food and beverage, telephone, spa, other income, etc) are crucial to the operation of the hotel, they are dependent on the overall number of occupied rooms. Furthermore, the occupancy and average Market Analysis 39 © 2025 CBRE, Inc. daily rate of a hotel are highly correlated. In reality, one cannot make a projection of one without a projection of the other. Therefore, while we have made specific projections of occupancy, we have also considered the subject’s positioned rate in our forecast. In order to project the future occupancy levels of the subject, we have estimated the level of patronage by market segment that can be reasonably captured (penetration). The extent to which the subject can capture demand from each market segment was estimated by performing a fair share penetration analysis. A hotel's fair share is defined as the number of available rooms divided by the total supply of available rooms in the competitive market, including the subject. Factors indicating the subject would possess competitive advantages suggest a market penetration in excess of 100 percent of fair share, while competitive weaknesses are reflected in penetration less than 100 percent. Penetration Penetration is the relationship between a market’s fair share and its actual share of the overall demand. For example, a 100-room hotel would equate to 10% of a 1,000-room competitive set. If this hotel were to capture 10% of the overall lodging demand, it would penetrate the market by 100 percent. Market penetration, or penetration rate, is the ratio of captured demand to fair share of demand. Factors indicating competitive advantages are typically reflected in penetration rates above 100 percent, while, conversely, competitive disadvantages are reflected in penetration rates below 100 percent. Actual penetration of each market segment by the Subject may deviate from fair market share for the reasons such as the following: • The competitive advantages or disadvantages of the hotel versus the competition taking into consideration such factors as age, location, room rate structure, chain affiliation, quality of management, marketing efforts, and image; • The physical characteristics of the property, e.g. size, amenities, food & beverage outlets, meeting facilities, property condition, etc. • Management objectives and marketing strategies. • Capacity constraints of both the subject property and the market. Corporate Penetration The subject will be affiliated with a major hotel franchise. This brand should be recognized across the country for quality lodging accommodations. Additionally, it will be of higher quality to most of the competitive hotels and is proximate to Downtown. However, this hotel is expected to house group activity first and foremost. As such For this analysis, we have projected the subject's corporate penetration rate will ramp up to a stabilized level of 70%. Market Analysis 40 © 2025 CBRE, Inc. Leisure Penetration The subject will feature various on-site amenities, such as the restaurant and meeting space, that will appeal to the group demand segment. Other competitive advantages for the subject will include expansive and flexible meeting space, high quality and modern F&B outlets, an indoor pool, and a location walkable to a variety of shops and restaurants. For this analysis, we have projected the subject will achieve a stabilized leisure penetration rate of 70%. Group Penetration The subject will be the leading hotel with meeting space, and the only full-service hotel, with the exception of the CY Town Hotel. With the hotel amenities and F&B outlets, and the Conference Center, we anticipate this hotel to induce and secure most of the group demand in the market. For this analysis, we have projected the subject's group penetration rate will ramp up to a stabilized level of 350%. Overall, the subject improvements, as proposed, consist of a viable hotel. The projections of captured penetration rates for the subject by demand segment along with the resulting projections of occupied room-nights are illustrated as follows: Market Analysis 41 © 2025 CBRE, Inc. Projected Subject Penetration Schedule Year Ending 12/31/2029 2030 2031 Subject Property Fair Share Market Room Supply 1,179 1,179 1,179 Subject Avg. Room Count 200 200 200 Fair Share 17.0% 17.0% 17.0% Room Nights Captured by Subject CORPORATE Fair Share 17.0% 17.0% 17.0% Penetration Factor 65.0% 68.0% 70.0% Market Share 11.0% 11.5% 11.9% Demand 110,067 113,412 116,815 Capture 12,136 13,082 13,871 LEISURE Fair Share 17.0% 17.0% 17.0% Penetration Factor 70.0% 68.0% 70.0% Market Share 11.9% 11.5% 11.9% Demand 94,662 99,424 102,406 Capture 11,241 11,469 12,160 GROUP Fair Share 17.0% 17.0% 17.0% Penetration Factor 320.0% 330.0% 350.0% Market Share 54.3% 56.0% 59.4% Demand 34,028 36,141 37,226 Capture 18,471 20,232 22,102 Total Capture 41,848 44,783 48,133 Subject Occupancy 57.3% 61.3% 65.9% Penetration as % of Fair Market Share 103.3% 106.0% 110.6% The overall accommodated room night demand is multiplied by the subject’s fair share and by the projected penetration ratio to derive the subject’s accommodated room night demand. We have selected roundly 66% as the stabilized occupancy for the subject, recognizing that as yet unknown supply additions are possible. At a market occupancy approximating 60 percent, there is a slight possibility that developers will be attracted to the market. The stabilized occupancy figure is intended to be an average figure over the projected holding period. Based Market Analysis 42 © 2025 CBRE, Inc. upon the expected positioning of the subject, and considering the seasonality monthly and weekly patterns and new supply projections, our stabilized penetration estimate for the subject of 110.6% is considered reasonable. Average Daily Rate As noted previously, one of the most important considerations in deriving an opinion of value of a hotel is its forecast of a supportable average daily rate (ADR). The ADR of a hotel can be calculated by dividing the total rooms revenue by the total number of occupied rooms achieved during a specified period of time. Subject’s Competitive Positioning Although the forecast of average daily rate follows the discussion of future occupancy, these two figures are highly correlated, and one cannot make projections of occupancy without specific assumptions of ADR. This relationship is defined by RevPAR, or Revenue Per Available Room. RevPAR is the measure of a property’s ability to maximize rooms revenue. Theoretically, for example, if a lodging property’s ADR increases substantially (with no market influencing factors), its occupancy would decrease. Conversely, if a property’s ADR decreases, an increase in occupancy would be anticipated. In each instance, RevPAR would remain unchanged. The historical ADR and RevPAR for the competitive set is illustrated as follows: Competitive ADR and RevPAR 2024 2024 Property ADR RevPAR Holiday Inn Express & Suites Ames $120 - $130 $70 - $80 Fairfield Inn & Suites Ames $125 - $135 $75 - $85 TownePlace Suites Ames $125 - $135 $75 - $85 Hampton by Hilton Inn & Suites Ames $145 - $155 $95 - $105 Courtyard Ames $130 - $140 $75 - $85 Staybridge Suites Ames $125 - $135 $75 - $85 SpringHill Suites Ames $125 - $135 $75 - $85 Hilton Garden Inn Ames $135 - $145 $80 - $90 Market Weighted Average $135.13 $82.78 Source: CBRE As illustrated in the preceding chart, the competitive set properties suggest an ADR range of approximately $120 to $155. Furthermore, the weighted average for the market is $135.13. The subject property is expected to offer more advantages than most of the local comparables in terms of brand affiliation, quality, and amenities, and is more favorable in terms of age and condition. Market Analysis 43 © 2025 CBRE, Inc. As a Conference Center and Hotel, the subject is likely to outperform and over penetrate the local market in ADR. Since there is no direct comparable facility in the Ames market, a secondary set of regional comparables was compiled to benchmark the subject’s performance. These secondary full-service hotels were selected because they included a conference center or were connected to a convention center. The following table presents the regional comparables. Moreover, through interviews and preliminary survey results, these properties were indicated as alternative options to Ames. Property City ST Year Opened Rooms Meeting Space Largest Space Meeting Space Per Room AVG 1990 256 28,122 11,733 110 OCC ADR RevPAR Min 56.8% $140 $91 Max 74.3% $193 $139 Median 65.5% $160 $105 Average 66.8% $165 $110 Subject Estimate (2024$)66% $170 $112 Regional Competitive Set 2024 Performance In 2024, the regional set achieved an average occupancy of 66.8% at $165. The subject Conference Center and Hotel, as a new high-quality property with minimal local competition, will potentially perform above the regional average. As such, CBRE estimates an ADR of $170, as if the hotel were open in 2024, as reasonable. Furthermore, the stabilized occupancy at 66% is in line with the regional comparables. The calendar year projections of ADR growth for the subject are illustrated in the following table. Market Analysis 44 © 2025 CBRE, Inc. Subject's Calendar Year and Fiscally Adjusted ADR Estimates $170.00 Calendar Year % Growth Constant 2024 Dollars Indicated ADR Discount Adj. ADR Index 5.0%$187.22 123.2% 2030 3.0% $170.00 $202.99 2.0%$198.93 127.1% 2031 3.0% $170.00 $209.08 1.0%$206.99 128.4% 2032 3.0% $170.00 $215.35 0.0% $215.35 129.7% 2033 3.0% $170.00 $221.81 0.0% $221.81 129.7% 2034 3.0% $170.00 $228.47 0.0% $228.47 129.7% Compiled by CBRE Subject's Positioned ADR (Calendar Year 2024) The subject opens in 2029 and stabilizes in 2032; it is fairly common for discounted rates in the first few years of operation as the property is building a market presence and attracting new demand. As such we have discounted ADR in 2029, 2030, and 2031 by 5%, 2%, and 1% respectively. Therefore, ADR for the opening year of operation in 2029 is projected to be $187. Conclusion The subject’s occupancy, ADR, RevPAR, Revenue Yield and corresponding room revenue for the first several years of our projection analysis are illustrated as follows: Occupancy, ADR, and Rooms Revenue Conclusions Stab'd Year As Complete - Fiscal Year Ending 12/31/2029 2030 2031 2032 2033 Total Rooms Revenue $7,790,339 $8,858,313 $9,972,671 $10,375,607 $10,686,875 Source: CBRE Our projections include a sustainable occupancy and market supported ADR. The stabilized revenue yield in the local Ames market at 143.6% is reasonable based on its new construction and quality level at the upper end of the market. The subject’s projection of rooms revenue is illustrated again in the Estimated Operating Income Section of this report. Market Analysis 45 © 2025 CBRE, Inc. Induced Demand Analysis The purpose of this analysis is to isolate the induced demand from the addition of the proposed Conference Center and Hotel that would likely NOT be accommodated by the subject due to capacity constraints. The facilities can hold events for 1,000 attendees; however, the guestrooms at 200-rooms are undersized to accommodate all of the attendees needing guestrooms. Thus, for large events utilizing a significant portion of the conference space, many of the overnight attendees will ‘overflow’ to the surrounding hotel market. This is a common market factor for conference and convention facilities where the meeting space can accommodate more overnight attendees than the primary or headquarter hotel’s number of guestrooms. In many cases, this is akin to a ‘headquarter hotel’ accommodating large groups at a convention/conference space but sized to allow additional group room nights to flow to the surrounding market area. Groups and Meetings After the survey and interviews with Discover Ames, Ames Economic Alliance, local hoteliers, as well as other key stakeholders in the business community, there is significant demand in Ames for a facility to host multiple day conferences and meetings for statewide professional associations, government agencies, and private businesses. The existing facilities in Ames are not large enough to accommodate many of the groups and do not offer the quality facilities that meeting planners expect. Downtown Ames is strategically located to attract numerous conference and meeting functions which would benefit from the central location and nearby downtown shops and restaurants. Historically, some events have utilized various conference and hotel facilities in Ames and ISU, however, the size and availability of facilities has been a limiting factor. The Survey indicated more than 300 groups would consider the Subject Conference Center and Hotel. Methodology To determine a reasonable number of large groups that could be hosted by the subject conference hotel, CBRE Hotels generated a hypothetical annual schedule of large events. This build up of events were based on the survey, various interviews with meeting planners, regional hotel conference sales managers, as well as visitor statistics utilizing Placer.ai data. It does not present any specific event but is informed by actual events referenced in our fieldwork. Number of events The hypothetical events consist of a minimum of 200 attendees and a maximum of 1,000 attendees. In general, based on the proposed and recommended plans, this range of group sizes are likely to utilize a significant portion of the hotel’s facilities, as well as generate substantial room nights. The following is a breakdown of the size of events, an estimate of the number of Market Analysis 46 © 2025 CBRE, Inc. events that could be accommodated, as well as an average number of nights the events would need to be accommodated. • 1,000 person events – Based on interviews with operators of similar sized hotels and conference centers in comparable markets, a sales and marketing team would target an event of this size once per quarter at a minimum. They generally need hotel rooms from 2 to 4 nights per event. • 600 - 800 person events – the interviews indicated events in these categories would be more frequent and total roundly 16 per year, a little over 1 per month. They generally need hotel rooms from 2 to 4 nights per event. • 200 - 400 person events – Interviews indicated events of this size could occur approximately 30 time per year. They generally need hotel rooms for 2 to 3 nights per event. • 50 - 200 person events – interviews indicated events of this size would be most frequent, have shorter lead times, more locally sourced, and would generally induce less demand to the other competitive hotels in the market. As such, CBRE hotels did not include these potential events in this analysis. The following table breaks down the number of hypothetical large events that could be hosted in the subject’s stabilized operating year. Number of Events (200+) Event Sizes Number of Events Nights per Event Total Event Nights Total 85 219 Potential Room Nights per Event The following table summarizes CBRE Hotel’s estimate for the hypothetical number of room nights per event and is calculated below based on industry interviews for like kind Conference Center and Hotels to the subject. Market Analysis 47 © 2025 CBRE, Inc. Potential Room Nights per Large Event Event Sizes Attendees Needing Accomodation Number of potential Hotel Guests Guests per Room Number of Potential Room Nights Not all the attendees for events to this facility would need hotel rooms, specifically, since the Ames market is likely most attractive to local, regional and state groups. Most of the attendees would be driving into this market rather than flying. As such, less hotel rooms are likely needed. Based on interviews, the largest events would average roundly 50% of the attendees potentially needing accommodations. For smaller events, the sales and marketing teams would generally attempt to attract groups that need more accommodations, as such CBRE assumes 55% to 70% of attendees needing accommodation in the 200-600 size category. The interviews indicated a desire for attendees to not share rooms with other attendees, specifically since COVID as social distancing and work from home trends increased the desire for personal space and privacy. For this analysis, CBRE assumes roundly 1.25 guests per room as a reasonable metric in today’s market. Proposed Hotel Rooms Available for Events The following table summarizes CBRE Hotels estimate for the potential number of guest rooms from the proposed Conference Center that could be available for the potential events. While large events may be able to ‘buy out’ all of the proposed hotel’s 200-guestroom inventory, it’s unlikely management would open up all inventory for every large event due to seasonality from transient (non-group) demand such as corporate, government, and/or leisure travel. This is especially true for Ames, a college town, in which the various university and sports-related events will sell out the market. Group room blocks are typically discounted from a hotel’s daily rate or ‘rack rate’. As such, when revenue managing the property, the hotel would likely allocate a portion of rooms to still remain open for transient demand to drive significant revenues. Subject Hotel Rooms Available For Events Event Sizes Number of Potential Room Nights Hotel Available Inventory % available for Group Rooms Available for Groups Room Nights Induced per event 220 140 94 72 12 Market Analysis 48 © 2025 CBRE, Inc. For this analysis of the available hotel inventory, CBRE estimates an average of 85% of the inventory would be allocated to group room blocks per large event. The table above presents an estimate for induced room nights per event per night. This is calculated by subtracting the potential room nights by the rooms available for groups. For 1,000 attendee events, potential rooms need for attendees (per night) is 400. The hotel will likely only allocate 173 rooms to groups, as such the remaining attendees would have to be accommodated within the competitive market (400 room nights – 173 available rooms = 227 room nights induced into the market). After applying all factors, event sizes of roundly 200 attendees are likely to not overflow to the local market and be fully accommodated by the subject Hotel. Induced Room Nights Utilizing the estimate of potential room nights induced into the local market per event per night, CBRE applied industry-based estimates for the total number of events, as well as the number of nights per event. These estimates were derived from interviews with comparable hotels. The following table presents the total number of hotel room nights induced into the local market hotels in a stabilized year. Summary of Potential Room Night Induced into Market Hotels Event Sizes Number of Events Nights per Event Room Nights Induced per event Total Induced Room Nights Totals 85 538 15,507 In summary, building out a hypothetical schedule of large events greater than 200 attendees, could potentially yield roundly 16,000 room nights induced into the local market. To clarify, these induced room nights ARE NOT captured by the subject conference hotel but are effectively ‘overflow’ to the local competitive market and considered a net benefit to Ames. Visitor Travel Patterns As a test of reasonableness, CBRE utilized Placer.ai data to measure estimated travel patterns of visitors attending conventions and conferences in similar locations to Ames. Furthermore, CBRE isolated the percentage of visitors attending these meeting facilities but not staying in the host or headquarter Hotel. This provides an alternative estimate of how citywide group activity potentially overflows into the local hotel market. Market Analysis 49 © 2025 CBRE, Inc. Placer.ai is a location analytics platform which uses geofencing to track visitor traffic in a defined area. Primarily a marketing tool, it also allows the tracking of points of interest a particular visitor will go in a day. It effectively tracks cell phone traffic of visitors when they enter into primary points of interest. The platform can isolate for numerous variable to estimate potential visitors that are not residents, employees, or based locally. For this analysis, CBRE applied the following variables to isolate visitors that would likely attend an event at the local conference/convention center, as well as a hotel. The variables are as follows: • Distance from Home: 100 miles • Visit duration: over 60 minutes • Non-Employee • Non-Resident Visit duration selected is relatively short to account for conference attendees as the base set of visitors and the primary destination being a conference center. A driving distance of greater than 100 miles could likely lead to a hotel stay for an average event attendee, and most employees and local residents are not tracked in this data set, as well. However, since the data provided through geofencing doesn’t necessarily account for visitor intentions, attitudes, purpose, etc. but is raw data, there are some limitations to the data set. The following comparables included locations with similar size and demographics to Ames, however, the meeting and conference facilities varied significantly, as well as the square feet of meeting space per host hotel room. Each table of the comparables includes total visitor traffic to the convention/conference facility, as well as the percent traveling to Hotels and Casinos as a point of interest category versus the host or headquarter hotel. The traffic patterns indicated both coming from (pre-visit) and going to (post-visit) hotels. We note, placer.ai combines hotel and casinos as a single category. Market Analysis 50 © 2025 CBRE, Inc. Hyatt Regency Coralville Des Moines Marriott Downtown Visitors Pre-Visit Post-Visit Visitors Pre-Visit Post-Visit 149,700 9,731 13,772 215,500 17,456 14,008 23,503 31,463 Holiday Inn & Suites Cedar Falls Holiday Inn Des Moines Airport Visitors Pre-Visit Post-Visit Visitors Pre-Visit Post-Visit 67,400 2,561 2,359 111,600 3,906 6,584 4,920 10,490 Stoney Creek Sioux City Hotel at Kirkwood Center Visitors Pre-Visit Post-Visit Visitors Pre-Visit Post-Visit 63,400 9,700 9,573 25,500 867 1,377 19,274 2,244 Total Pre and Post Non- Headquarter Visits Total Pre and Post Non- Headquarter Visits Total Pre and Post Non- Headquarter Visits Total Pre and Post Non- Headquarter Visits Total Pre and Post Non- Headquarter Visits Total Pre and Post Non- Headquarter Visits Market Analysis 51 © 2025 CBRE, Inc. Comparable Visitor Traffic Summary Market Total Visitors Total Non-Headquarter Overnight Stays CBRE Estimates Rounded 100,000 15,500 Based on the referenced comparables, the non-headquarter hotel visits ranged from 2,244 to 31,463. Our estimate of induced demand from the previous build up approach is within the range of these comparables. Market Analysis 52 © 2025 CBRE, Inc. Conclusions There are limitations in all studies forecasting potential performance as the analysis presented a hypothetical schedule of events based on survey of meeting planners, hotel/conference operators, visitor traffic, and property group bookings reports. Furthermore, the Ames Market has not demonstrated significant citywide conference demand in recent history due to lack of adequate and quality facilities. The primary data sources contributed to these estimates are based on the following: • Survey of 153 meeting planners. • Interviews with Discover Ames and other local representatives. • Interviews with Hotel and conference operators and sales and marketing teams. • Multiple Group pace reports and booking summaries. • Placer.ai location intelligence and visitor traffic data. CBRE is concluding to a reasonable range as an estimate for the subject hotel to account for market uncertainty. Approximately 12,000 to 19,000 room nights could potentially be induced into the local hotel market as overflow from large events. Conclusion of Induced Room Nights 12,000 - 19,000 Potential room nights induced into the Ames competitive market NOT acommodated by the Subject Hotel. Estimated Hotel Operating Income 53 © 2025 CBRE, Inc. Estimated Hotel Operating Income The following section presents estimates of future operating results for the proposed subject Conference Center and Hotel. We have assumed that the property will be open and operating as of January 1, 2029. Our projections inherently assume competent and efficient management of the property. The 10-year projection of cash flow is presented in a format that conforms to the Uniform System of Accounts for the Lodging Industry, an industry-standard accounting format. The Uniform System of Accounts for the Lodging Industry was developed by the American Hotel & Lodging Association and is in general use throughout the hospitality industry. In conformance with this system of account classifications, only direct operating expenses are charged to operating departments of the hotel. The general overhead items which are applicable to operations as a whole are classified as undistributed operating expenses and include administration and general expenses, information and telecommunications systems expenses, marketing expenses, property operations and maintenance expenses, energy and utility costs. Other property expenses include management fees, property taxes, insurance, and a reserve for replacement. Occupancy, ADR, and RevPAR Conclusions The subject’s occupancy, ADR, RevPAR, and corresponding room revenue for the first several years of our projection analysis are illustrated as follows and were discussed and analyzed in the hotel market analysis: Occupancy, ADR, and Rooms Revenue Conclusions Stab'd Year As Complete - Fiscal Year Ending 12/31/2029 2030 2031 2032 2033 Total Rooms Revenue $7,790,339 $8,858,313 $9,972,671 $10,375,607 $10,686,875 Source: CBRE Estimated Hotel Operating Income 54 © 2025 CBRE, Inc. Income and Expense Comparables This analysis incorporates revenue estimates based on our survey of comparable and competitive properties, and general market trend information. The revenue and expense comparisons include full-service hotels all located in the region. The comparable hotels’ financial information is obtained in part from confidential information submitted to the CBRE Hotels’ Americas Research Publication Trends® in the Hotel Industry (U.S. edition). For reasons of confidentiality, we have not disclosed the identity of the comparable hotels. The following charts summarize income and expenses taken from regional revenue/expense comparables as well as data from Trends® in the Hotel Industry (U.S. edition) report. For the purposes of benchmarking the revenues and expenses of the proposed Conference Center and Hotel, CBRE combined the operation into a single cash flow Statement as that is most in line with our comparable data of Conference Center Hotels. Once our statements of Operating Income was prepared, we allocated separate statements for the Hotel piece and the Conference Center Piece. Estimated Hotel Operating Income 55 © 2025 CBRE, Inc. Property US Region Hotel Description / Name Year Days Open Avg. No. of Rooms Occupancy Average Daily Rate Ratio to Sales PAR POR Ratio to Sales PAR POR Ratio to Sales PAR POR Ratio to Sales PAR POR Ratio to Sales PAR POR REVENUE Rooms 65.6% $43,754 $170.21 56.6% $41,813 $159.97 55.1% $42,901 $163.94 61.1% $40,824 $151.93 58.8% $49,141 $189.41 Food & Beverage 29.9% 19,934 77.55 37.3% 27,577 105.51 42.7% 33,263 127.11 36.4% 24,333 90.56 33.4% 27,940 107.69 Other Operated Departments 0.4%234 0.91 4.9% 3,601 13.78 1.3% 1,040 3.97 1.4%957 3.56 6.4% 5,374 20.71 Miscellaneous Income (Net)4.2% 2,775 10.80 1.2%906 3.47 0.9%722 2.76 1.0%666 2.48 1.4% 1,153 4.44 Total Operating Revenue 100.0% $66,697 $259.47 100.0% $73,898 $282.73 100.0% $77,925 $297.78 100.0% $66,780 $248.52 100.0% $83,607 $322.26 DEPARTMENTAL EXPENSES* Rooms Expense 21.4% $9,353 $36.38 20.1% $8,407 $32.16 25.1% $10,749 $41.08 26.2% $10,709 $39.85 24.1% $11,840 $45.64 Food & Beverage Expense 63.5% 12,664 49.26 49.7% 13,716 52.47 38.1% 12,687 48.48 46.0% 11,195 41.66 66.6% 18,621 71.77 Other Operated Departments Expense 32.5%76 0.30 69.4% 2,499 9.56 10.7%111 0.43 14.7%141 0.53 35.2% 1,892 7.29 Total Departmental Expenses 33.1% $22,092 $85.94 33.3% $24,621 $94.20 30.2% $23,547 $89.98 33.0% $22,045 $82.04 38.7% $32,352 $124.70 DEPARTMENTAL PROFIT 66.9% $44,605 $173.52 66.7% $49,276 $188.53 69.8% $54,378 $207.80 67.0% $44,735 $166.48 61.3% $51,255 $197.56 UNDISTRIBUTED OPERATING EXPENSES NET INCOME (EBITDA)27.3% $18,181 $70.73 30.8% $22,727 $86.95 32.0% $24,904 $95.17 24.4% $16,284 $60.60 19.4% $16,239 $62.59 * Departmental expense ratios are based on departmental revenues; Franchise/Royalty ratio is based on room revenues; all others are based on total revenues. * Operating Comparables have been adjusted for management fee and/or reserves for replacement to normalize our expense comparison Source: Hotel Operating Statements Comparable 5 2024 Comparable Income and Expense Data - Selected Hotels Comparable 3Comparable 2Comparable 1 2024 Comparable 4 366 2024 366 2024 366366 2024 210 - 270 65% - 75% $165 - $175 370 - 470 70% - 75% $155 - $165 240 - 320 70% - 75% $160 - $170 240 - 320 70% - 75% $145 - $155 290 - 380 $185 - $195 70% - 75% 366 Estimated Hotel Operating Income 56 © 2025 CBRE, Inc. CBRE Trends® - Selected Categories Property Year Avg. No. of Rooms Occupancy Average Daily Rate Ratio to Sales PAR POR Ratio to Sales PAR POR Ratio to Sales PAR POR Ratio to Sales PAR POR Ratio to Sales PAR POR REVENUE Rooms 59.9% $43,949 $192.69 69.4% $40,100 $178.97 61.6% $42,854 $198.14 71.9% $53,563 $214.11 63.7% $44,129 $196.80 Food & Beverage 35.3% 25,904 $113.58 25.8% 14,923 $66.61 33.6% 23,414 $108.26 21.9% 16,347 $65.34 31.3% $21,793 $97.97 Other Operated Departments 3.1% 2,267 $9.94 3.0% 1,748 $7.80 3.1% 2,128 $9.84 3.7% 2,727 $10.90 3.2% $2,184 $9.73 Miscellaneous Income (Net)1.7% 1,265 $5.55 1.8% 1,043 $4.66 1.8% 1,224 $5.66 2.5% 1,900 $7.59 1.9% $1,299 $5.77 Total Operating Revenue 100.0% $73,386 $321.76 100.0% $57,815 $258.04 100.0% $69,620 $321.89 100.0% $74,536 $297.95 100.1% $69,404 $310.27 DEPARTMENTAL EXPENSES Rooms Expense 26.5% $11,651 $51.09 27.9% $11,176 $49.88 29.1% $12,456 $57.59 27.4% $14,685 $58.70 28.3% $12,445 $55.57 Food & Beverage Expense 67.2% $17,395 $76.27 71.5% $10,677 $47.65 65.6% $15,358 $71.01 76.0% $12,428 $49.68 68.1% $14,713 $66.01 Other Operated Departments Expense 36.4% $825 $3.62 45.9% $802 $3.58 32.8% $698 $3.23 43.4% $1,184 $4.73 36.6% $800 $3.55 Total Departmental Expenses 40.7% $29,872 $130.97 39.2% $22,655 $101.12 41.0% $28,512 $131.83 38.0% $28,296 $113.11 40.3% $27,957 $125.13 DEPARTMENTAL PROFIT 59.3% $43,514 $190.79 60.8% $35,159 $156.92 59.0% $41,108 $190.06 62.0% $46,240 $184.84 59.7% $41,447 $185.14 UNDISTRIBUTED OPERATING EXPENSES NET INCOME (EBITDA)21.1% $15,520 $68.05 17.7% $10,239 $45.70 21.9% $15,239 $70.45 21.7% $16,151 $64.56 21.2% $14,756 $65.99 *Sales and Marketing Expenses are Inclusive of Franchise Fees (Royalty) **Reserves are based on a normalized 4.0% of Total Operating Revenue Source: CBRE Trends® 61.4%62.5%61.4%59.3%68.5% $197$193 $179 $198 $214 20232023202320232023 440314231979237 Trends® Report - Weighted AverageConvention Hotels - Under 500 Rooms Full Service Hotels - North Central Convention Hotels - North Central Full Service Hotels - All Estimated Hotel Operating Income 57 © 2025 CBRE, Inc. Fixed and Variable Revenue and Expense Analysis Operating revenues and expenses for hotels have a component that is fixed and a component that is variable with respect to increases or decreases in occupancy. The fixed component increases at an inflationary level, while the variable component is adjusted in proportion to the use of the hotel facility. The applicable fixed and variable ratios were derived through discussions with hotel experts and are consistent with industry norms. These ratios and the associated revenue component drivers are illustrated as follows: Fixed and Variable Amounts COMPONENT FIXED % %VAR. DRIVER Estimated Hotel Operating Income 58 © 2025 CBRE, Inc. Departmental Projections Rooms Department Rooms Revenues The subject’s and the comparable data revenues for this department as a percentage of total revenues, on a per available room basis, and on a per occupied room basis are summarized as follows: Analysis of Rooms Department Revenues was previously provided. Estimated Hotel Operating Income 59 © 2025 CBRE, Inc. Rooms Expenses Rooms expenses include labor costs such as salaries and wages for front desk, housekeeping, reservations, bell staff and laundry, plus employee benefits. Also included herein are linens, cleaning supplies, guest supplies, uniforms, central or franchise reservation fees, equipment leases and travel agent commissions. Payroll costs are typically the largest component. A hotel is labor-intensive, although relatively low-paying. Overall, wages typically account for 50% to 60% of the total departmental expense. The comparable data and projections for the subject are summarized as follows: As shown, we projected Rooms expenses at $35.00 per occupied room in the Base Year (Calendar Year 2024) of our analysis. Our estimate is supported by the comparable properties. Estimated Hotel Operating Income 60 © 2025 CBRE, Inc. Food & Beverage Department Food & Beverage Revenue Food & Beverage revenue is generated by a hotel's restaurants, lounges, coffee shops, snack bars, banquet rooms, and room service. In the case of the subject, food revenue will be generated by the various food and beverage outlets. Beverage revenue is generated by the sale of alcoholic beverages in a hotel's restaurants and banquet rooms and the sale of alcoholic and non-alcoholic beverages in the bars and lounges. The subject’s and the comparable data revenues for this department as a percentage of total revenues, on a per available room basis, and on a per occupied room basis are summarized as follows: Food & Beverage Year Total $ (000's) Ratio to Sales PAR POR DCF Estimate Year 1 (As Complete)$4,976 36.8% $24,880 $119.59 DCF Stabilized Estimate (Year 3)$5,926 35.3% $29,628 $122.99 Stabilized Estimate Deflated to Year 1 (As Complete)$5,585 35.3% $27,927 $115.93 Base Year (Calendar Year 2024)$4,818 35.1% $24,090 $100.00 Compiled by CBRE Estimated Hotel Operating Income 61 © 2025 CBRE, Inc. Food & Beverage Expenses Food & Beverage expenses include the costs of goods sold (Food & Beverage), labor and related benefits, and other operating expenses. Labor costs include departmental management, cooks and kitchen personnel, service staff, banquet staff and bartenders. Other operating expenses include china, silverware, linens, restaurant and kitchen supplies, menus and printing, and special promotions. As with the rooms department, payroll costs are typically the largest component. The comparable data and projections for the subject are summarized as follows: As illustrated above, we projected F&B expenses at 55.0% of departmental revenue in the Base Year (Calendar Year 2024) of our analysis. Our estimate is supported by the comparable properties. Estimated Hotel Operating Income 62 © 2025 CBRE, Inc. Other Operated Department Other Operated Departments Revenue Other Operated Departments revenues are those derived from garage and parking, guest laundry, gift shop, retail, newsstand, spa et cetera, when operated by the hotel. Also included are revenues generated from sources not included elsewhere, such as on-demand movie rentals, vending machines, fax and business services. Specific to the subject, this line item includes revenues from valet parking revenues and other revenues. The subject’s and the comparable data revenues for this department as a percentage of total revenues, on a per available room basis, and on a per occupied room basis are summarized as follows: Other Operated Departments Year Total $ (000's) Ratio to Sales PAR POR DCF Estimate Year 1 (As Complete)$505 3.7% $2,526 $12.14 DCF Stabilized Estimate (Year 3)$593 3.5% $2,963 $12.30 Stabilized Estimate Deflated to Year 1 (As Complete)$559 3.5% $2,793 $11.59 Base Year (Calendar Year 2024)$482 3.5% $2,409 $10.00 Compiled by CBRE Estimated Hotel Operating Income 63 © 2025 CBRE, Inc. Other Operated Departments Expense The subject’s and the comparable data expenses for this department as a percentage of total revenues, on a per available room basis, and on a per occupied room basis are summarized as follows: As illustrated above, we projected Other Operated expenses at 50.0% of departmental revenue in the Base Year (Calendar Year 2024) of our analysis. Our estimate is supported by the comparable properties. Estimated Hotel Operating Income 64 © 2025 CBRE, Inc. Miscellaneous Income (Net) Miscellaneous revenues include resort and cancellation fees. The subject’s and the comparable data revenues for this department as a percentage of total revenues, on a per available room basis, and on a per occupied room basis are summarized on the following table. Note that the revenues are presented net of associated expenses: Miscellaneous Income (Net) Year Total $ (000's) Ratio to Sales PAR POR DCF Estimate Year 1 (As Complete)$249 1.8% $1,244 $5.98 DCF Stabilized Estimate (Year 3)$296 1.8% $1,481 $6.15 Stabilized Estimate Deflated to Year 1 (As Complete)$279 1.8% $1,396 $5.80 Base Year (Calendar Year 2024)$241 1.8% $1,205 $5.00 Compiled by CBRE Total Operating Revenue The subject’s total operating revenue estimates are detailed as follows: Estimated Hotel Operating Income 65 © 2025 CBRE, Inc. Total Departmental Expenses The subject’s total departmental expense estimates are detailed as follows: Departmental Profit Total departmental profit is as follows. Estimated Hotel Operating Income 66 © 2025 CBRE, Inc. Expense Projections In order to estimate expenses for the subject, the following data has been reviewed and analyzed: • published industry averages for similar hotel segments and geographic regions; and • actual operating expense data for similar properties. The individual expense categories applicable to the subject are discussed in the following sections. Undistributed Operating Expenses Undistributed operating expenses are typically not directly related to an associated revenue source but can be compared on the basis of total revenues for similar types of hotels. These expenses are therefore compared and estimated as a percentage of total revenues, or on a per available or per occupied room basis. Administrative and General Expenses Administrative and general expenses include payroll and related expenses for the general manager, human resources and training, security, clerical staff, controller and accounting staff. Other expenses include office supplies, computer services, accounting and legal fees, cash overages and shortages, bad debt expenses, travel insurance, credit card commissions, transportation (non-guest) and travel and entertainment. These payroll costs are significant. The comparable data and projections for the subject are summarized as follows: Administrative and General Year Total $ (000's) Ratio to Sales PAR POR DCF Estimate Year 1 (As Complete)$1,213 9.0% $6,065 $29.15 DCF Stabilized Estimate (Year 3)$1,328 7.9% $6,641 $27.57 Stabilized Estimate Deflated to Year 1 (As Complete)$1,252 7.9% $6,260 $25.99 Base Year (Calendar Year 2024)$1,080 7.9% $5,400 $22.42 Compiled by CBRE As shown, we have estimated A&G department expenses at $5,400 per available room in the Base Year (Calendar Year 2024) of our analysis. Our estimate is supported by the comparable properties. Estimated Hotel Operating Income 67 © 2025 CBRE, Inc. Information and Telecommunications Systems Telecommunications expenses include the costs of calls, labor cost of operators and other related expenses. Information systems include the cost of high-speed internet and associated maintenance costs. Specifically excluded are associated capital lease payments. The comparable data and projections for the subject are summarized as follows: Information and Telecommunications Systems Year Total $ (000's) Ratio to Sales PAR POR DCF Estimate Year 1 (As Complete)$135 1.0% $674 $3.24 DCF Stabilized Estimate (Year 3)$148 0.9% $738 $3.06 Stabilized Estimate Deflated to Year 1 (As Complete)$139 0.9% $696 $2.89 Base Year (Calendar Year 2024)$120 0.9% $600 $2.49 Compiled by CBRE As shown, we have estimated Information and Telecommunications Systems expenses at $600 per available room in the Base Year (Calendar Year 2024) of our analysis, which is well supported by the comparable data. Estimated Hotel Operating Income 68 © 2025 CBRE, Inc. Sales and Marketing Expenses Sales and Marketing expenses include payroll and related expenses for the sales and marketing staff, direct sales expenses, advertising and promotion, travel expenses for the sales staff and civic and community projects. This category may also include a national advertising fee or assessment paid to the franchise company, plus the cost of frequent guest stay programs. The comparable data and projections for the subject are summarized as follows: Sales and Marketing Year Total $ (000's) Ratio to Sales PAR POR DCF Estimate Year 1 (As Complete)$1,325 9.8% $6,626 $31.85 DCF Stabilized Estimate (Year 3)$1,451 8.6% $7,256 $30.12 Stabilized Estimate Deflated to Year 1 (As Complete)$1,368 8.6% $6,840 $28.39 Base Year (Calendar Year 2024)$1,180 8.6% $5,900 $24.49 Compiled by CBRE We have estimated Sales and Marketing expenses at $5,900 per available room in the Base Year (Calendar Year 2024) of our analysis. This is generally in line with and is well supported by the comparable data. Estimated Hotel Operating Income 69 © 2025 CBRE, Inc. Franchise Fees (Royalty) Franchise fees include only the royalty fees charged by the franchise company. We have estimated typical franchise fees for an upper upscale major franchise brand. We have assumed that the subject will operate as this brand throughout the projection period. If the subject does not maintain a similar affiliation, it could have an impact on our concluded opinion(s) of market value. Franchise fees are subject to change on an annual basis (within a reasonable range) based on actual costs incurred. The franchise fees for the subject are summarized as follows: Franchise Fees (Royalty) Year Total $ (000's) Ratio to Sales PAR POR DCF Estimate Year 1 (As Complete)$390 5.0% $1,948 $9.36 DCF Stabilized Estimate (Year 3)$499 5.0% $2,493 $10.35 Stabilized Estimate Deflated to Year 1 (As Complete)$470 5.0% $2,350 $9.76 Base Year (Calendar Year 2024)$410 5.0% $2,048 $8.50 Compiled by CBRE Estimated Hotel Operating Income 70 © 2025 CBRE, Inc. Property Operations & Maintenance Property operations & maintenance expenses includes all payroll and related expenses for maintenance personnel, cost of maintenance supplies, cost of repairs and maintenance of the building, furniture and equipment, the grounds and the removal of waste matter. The comparable data and projections for the subject are summarized as follows: Property Operations and Maintenance Year Total $ (000's) Ratio to Sales PAR POR DCF Estimate Year 1 (As Complete)$643 4.8% $3,215 $15.45 DCF Stabilized Estimate (Year 3)$713 4.2% $3,567 $14.81 Stabilized Estimate Deflated to Year 1 (As Complete)$672 4.2% $3,362 $13.96 Base Year (Calendar Year 2024)$580 4.2% $2,900 $12.04 Compiled by CBRE For this analysis, we have estimated POM expenses at $2,900 per available room in the Base Year (Calendar Year 2024) of our analysis. Our estimate is supported by the comparable properties. Estimated Hotel Operating Income 71 © 2025 CBRE, Inc. Utility Costs Utility expenses typically include electricity, fuel (oil, gas and coal), purchased steam and water. This category also includes any central plant and energy management systems. The comparable data and projections for the subject are summarized as follows: Utilities Year Total $ (000's) Ratio to Sales PAR POR DCF Estimate Year 1 (As Complete)$534 4.0% $2,671 $12.84 DCF Stabilized Estimate (Year 3)$593 3.5% $2,963 $12.30 Stabilized Estimate Deflated to Year 1 (As Complete)$559 3.5% $2,793 $11.59 Base Year (Calendar Year 2024)$482 3.5% $2,409 $10.00 Compiled by CBRE We have estimated Utilities expenses at $10.00 per occupied room in the Base Year (Calendar Year 2024) of our analysis. Our estimate is supported by the comparable properties. Estimated Hotel Operating Income 72 © 2025 CBRE, Inc. Total Undistributed Operating Expenses The subject’s total undistributed expense estimates are detailed as follows: Total Undistributed Expenses Year Total $ (000's) Ratio to Sales PAR POR DCF Estimate Year 1 (As Complete)$4,240 31.4% $21,198 $101.89 DCF Stabilized Estimate (Year 3)$4,732 28.2% $23,658 $98.21 Stabilized Estimate Deflated to Year 1 (As Complete)$4,460 28.2% $22,300 $92.57 Base Year (Calendar Year 2024)$3,851 28.0% $19,257 $79.94 Compiled by CBRE Estimated Hotel Operating Income 73 © 2025 CBRE, Inc. Management Fees The projection of income and expense assumes competent management by a professional management company. We assume that upon a sale, if the subject could be obtained free and clear of any prior management encumbrance, a prudent investor would retain competent management with fees structured at current rates. Some companies provide management services alone, while others offer both management services and a brand name affiliation. When a management company has no brand identification, the property owner can often acquire a franchise that provides the necessary image and recognition. Management fees have typically equated to roughly 3 to 5 percent of total revenues. The comparable data and projections for the subject are summarized as follows: Management Fee Year Total $ (000's) Ratio to Sales PAR POR DCF Estimate Year 1 (As Complete)$406 3.0% $2,028 $9.75 DCF Stabilized Estimate (Year 3)$504 3.0% $2,518 $10.45 Stabilized Estimate Deflated to Year 1 (As Complete)$475 3.0% $2,374 $9.85 Base Year (Calendar Year 2024)$412 3.0% $2,060 $8.55 Compiled by CBRE Estimated Hotel Operating Income 74 © 2025 CBRE, Inc. Expenses Before Non-Operating Income and Expenses Expenses Before Non-Operating Income & Expenses Year Expense Comparable 1 64.4%$42,930 $167.01 Expense Comparable 2 62.7%$46,319 $177.21 Expense Comparable 3 59.4%$46,304 $176.94 Expense Comparable 4 66.8%$44,615 $166.03 Expense Comparable 5 70.6%$59,041 $227.57 Trends® Report - Weighted Average 70.2%$48,688 $217.37 Convention Hotels - Under 500 Rooms 71.5%$52,454 $229.98 Full Service Hotels - North Central 72.4%$41,859 $186.83 Convention Hotels - North Central 69.5%$48,389 $223.73 Full Service Hotels - All 69.0%$51,431 $205.59 DCF Estimate Year 1 (As Complete)$9,630 71.2% $48,151 $231.44 DCF Stabilized Estimate (Year 3)$10,864 64.7% $54,322 $225.50 Stabilized Estimate Deflated to Year 1 (As Complete)$10,241 64.7% $51,204 $212.55 Base Year (Calendar Year 2024)$8,840 64.4% $44,202 $183.49 Compiled by CBRE Total expenses for the subject in the first year of the projection period are estimated at 71.2% of total revenues, or $231.44 per occupied room, decreasing to and stabilizing at 64.7% and $225.50 per occupied room in the third year of the analysis. By way of comparison, the comparable data exhibit expense ratios of 59.4% to 70.6%, and a per occupied room range from $166.03 to $227.57. The subject’s expenses are reasonable and are well within the expense comparable ranges. Non-Operating Income and Expenses These items are typically not directly related to an associated revenue source, and are typically not compared on the basis of total revenues for similar types of hotels. These expenses are therefore not typically compared and estimated as a percentage of total revenues. This general category also includes other income that is not directly related to operations (such as cell tower income and longer-term rental of space). Estimated Hotel Operating Income 75 © 2025 CBRE, Inc. Property Taxes Property taxes were discussed in greater detail earlier in the report. The projections for the subject are summarized as follows: Property Taxes Year Total $ (000's) Ratio to Sales PAR POR DCF Estimate Year 1 (As Complete)$639 4.7% $3,197 $15.37 DCF Stabilized Estimate (Year 3)$678 4.0% $3,392 $14.08 Stabilized Estimate Deflated to Year 1 (As Complete)$639 4.0% $3,197 $13.27 Base Year (Calendar Year 2024)$552 4.0% $2,758 $11.45 Compiled by CBRE Estimated Hotel Operating Income 76 © 2025 CBRE, Inc. Insurance The insurance expense includes the cost of insuring the hotel building and contents against fire, weather, sprinkler leakage, boiler explosion, plate glass breakage, or other perils such as terrorism. This category includes all insurance costs except workers’ compensation. The comparable data and projections for the subject are summarized as follows: Insurance Year Total $ (000's) Ratio to Sales PAR POR DCF Estimate Year 1 (As Complete)$255 1.9% $1,275 $6.13 DCF Stabilized Estimate (Year 3)$271 1.6% $1,353 $5.62 Stabilized Estimate Deflated to Year 1 (As Complete)$255 1.6% $1,275 $5.29 Base Year (Calendar Year 2024)$220 1.6% $1,100 $4.57 Compiled by CBRE We have estimated Insurance expenses at $1,100 per available room in the Base Year (Calendar Year 2024) of our analysis. Our estimate is supported by the comparable properties. Estimated Hotel Operating Income 77 © 2025 CBRE, Inc. Reserves For Replacement Structural reserves account for the replacement of short-lived items, including the roof, building systems, and parking lot. FF&E reserves for replacement are typically included in hotel expense projections to account for the periodic replacement of the furniture, fixtures and equipment (FF&E). It does not reflect the value of existing FF&E. It is solely an expense to reflect future replacements of short-lived items. This expense can be based on the actual replacement cost of the FF&E, its projected economic life and a reasonable reinvestment rate for the reserve funds (essentially a sinking fund account). An alternative and more widely utilized method is to estimate FF&E reserves based on a percentage of total revenues. Using this method, the typical ratio ranges from 2 to 5 percent of total revenues depending on the quality level of the property and the specific amenities and services present. The comparable data and projections for the subject are summarized as follows: Reserve For Replacement Year Total $ (000's) Ratio to Sales PAR POR DCF Estimate Year 1 (As Complete)$270 2.0% $1,352 $6.50 DCF Stabilized Estimate (Year 3)$671 4.0% $3,357 $13.94 Stabilized Estimate Deflated to Year 1 (As Complete)$633 4.0% $3,165 $13.14 Base Year (Calendar Year 2024)$275 2.0% $1,373 $5.70 Compiled by CBRE As noted, we have included a reduced reserve amount in Years 1 and 2 which allows for 2% in Year 1, 3% in Year 2, and a market-oriented amount of 4%, beginning in Year 3 and extending for the balance of the holding period. This amount is market supported and considered adequate to fund future capital needs. Estimated Hotel Operating Income 78 © 2025 CBRE, Inc. Total Non-Operating Income and Expenses The subject’s total non-operating income and expense estimates are detailed as follows: Total Non-Operating Income and Expenses Year Total $ (000's) Ratio to Sales PAR POR DCF Estimate Year 1 (As Complete)$1,165 8.6% $5,825 $28.00 DCF Stabilized Estimate (Year 3)$1,620 9.7% $8,102 $33.63 Stabilized Estimate Deflated to Year 1 (As Complete)$1,527 9.7% $7,637 $31.70 Base Year (Calendar Year 2024)$1,046 7.6% $5,231 $21.72 Compiled by CBRE Net Income (EBITDA) Conclusion The subject’s net operating income is detailed as follows: Net Income (EBITDA) Year Total $ (000's) Ratio to Sales PAR POR DCF Estimate Year 1 (As Complete)$2,725 20.2% $13,626 $65.49 DCF Stabilized Estimate (Year 3)$4,302 25.6% $21,510 $89.29 Stabilized Estimate Deflated to Year 1 (As Complete)$4,055 25.6% $20,276 $84.17 Base Year (Calendar Year 2024)$3,845 28.0% $19,223 $79.80 Compiled by CBRE As shown, we have estimated Net Operating Income at 20.2% of total revenue in the first year of the projection period, and 25.6% in the first stabilized year. Estimated Hotel Operating Income 79 © 2025 CBRE, Inc. Operating Conclusion The following pages present the following illustrations: • Stabilized Operating Proforma – Conference Center and Hotel Combined • Detailed Forecast Schedule - Conference Center and Hotel Combined • Conference Center ONLY o 5-year Cash Flow • Hotel ONLY o Stabilized and 10-year Cash flow Estimated Hotel Operating Income 80 © 2025 CBRE, Inc. Stabilized Operating Income - Conference Center and Hotel Period Ending: 12/31/2031 Number of Rooms 200 Annual Available Rooms 73,000 Occupied Rooms 48,180 Occupancy 66.0% Average Rate $206.99 RevPAR $136.61 Total Ratio to Sales PAR POR NET INCOME (EBITDA)$4,302,074 25.6% $21,510 $89.29 Operating Expense Ratio 74.37% Departmental expense ratios are based on departmental revenues. Franchise/Royalty ratio is based on room revenues; all others are based on total revenues. Compiled by CBRE Stabilized Cash FlowAnalysis Premise Estimated Hotel Operating Income 81 © 2025 CBRE, Inc. As Complete Cash Flow - Proposed Ames Conference Center and Hotel, Beginning 01/01/2029 YEAR 1 2 3 4 5 6 7 8 9 10 Year Ended:12/31/29 12/31/30 12/31/31 12/31/32 12/31/33 12/31/34 12/31/35 12/31/36 12/31/37 12/31/38 REVENUE Total Operating Revenue $13,520,434 $15,077,594 $16,787,033 $17,394,400 $17,916,232 $18,453,719 $19,007,331 $19,577,550 $20,164,877 $20,769,823 DEPARTMENTAL EXPENSES DEPARTMENTAL PROFIT $8,535,353 $9,796,000 $11,157,777 $11,596,267 $11,944,155 $12,302,479 $12,671,554 $13,051,700 $13,443,251 $13,846,549 UNDISTRIBUTED OPERATING EXPENSES GROSS OPERATING PROFIT $4,295,786 $5,323,471 $6,426,164 $6,717,517 $6,919,043 $7,126,614 $7,340,412 $7,560,625 $7,787,443 $8,021,067 INCOME BEFORE NON-OPERATING INCOME AND EXPENSES $3,890,173 $4,871,144 $5,922,553 $6,195,685 $6,381,556 $6,573,002 $6,770,192 $6,973,298 $7,182,497 $7,397,972 NET INCOME (EBITDA) $2,725,244 $3,497,459 $4,302,074 $4,522,442 $4,658,115 $4,797,859 $4,941,794 $5,090,048 $5,242,750 $5,400,032 Estimated Hotel Operating Income 82 © 2025 CBRE, Inc. Operating Proforma Conference Center Allocation The preceding cash flow schedule combined the Conference Center and Hotel performance. This was due to benchmarking with comparable Conference Center and Hotel facilities, as well as best practices in the industry in which the sales and marketing, revenues, as well as expenses are synergistically managed between the two components. For example, it is common practice to offer discounted packages on conference center space rental and F&B spend for a better room rate in the hotel. Regardless of the operating structure between the Hotel and the Conference Center, best market practices from prudent and competent management indicate a collaborative management of the two components as either a single owner/manager or an agreed upon multiple owner/manager structure with aligned interests. Conference Center Manager Budget The following table presents a budget provided by a potential manager of the Conference Center. At this time, CBRE is not aware of any signed contract with an operator at this time. Conference Center Manager Budget Line Item Year 1 %Year 2 %Year 3 % Total $2,751,596 100.0%$2,889,175 100.0%$3,033,634 100.0% Gross Profit $2,235,573 81.2%$2,347,351 81.2%$2,464,719 81.2% Total Expense $2,582,042 93.8%$2,659,503 92.1%$2,739,289 90.3% NOI -$346,469 -12.6%-$312,152 -10.8%-$274,570 -9.1% Comparable Conference Center Allocation The following table presents an actual conference center allocation of revenues and expenses. This comparable is similar to the subject in terms of size, facilities, as well as market dynamics. Estimated Hotel Operating Income 83 © 2025 CBRE, Inc. The comparable conference center allocation presented below is a result of a contractual agreement between the owners of the Conference Center and Hotel. Comparable Conference Center Line Item % Total $5,728,805 100.0% Total Operating Expenses $2,735,916 47.8% Departmental Income $2,992,888 52.2% Total Undistributed $2,359,650 41.2% Gross Profit $633,239 11.1% Total Fixed/other Expense $130,506 2.3% NOI $502,733 8.8% CBRE Estimate for the Conference Center Allocation The following presents a summary of the management proforma and comparable conference center, as well as an estimate from CBRE. In summary, the management proforma indicates the conference center would operate at a loss and the comparable conference center operates at a profit of 9%. Based on interviews with similar managers of such facilities, publicly-owned conference centers generally target an operational breakeven with indirect income resulting from the fiscal taxes and economic benefit. As such, CBRE Hotels estimates the subject conference center (isolated from the hotel) to operate at a breakeven. Estimated Hotel Operating Income 84 © 2025 CBRE, Inc. Management Proforma Comparable CBRE Estimate (2024$) Conference Center Summary and CBRE Conclusion The following presents a schedule of cash flows for the proposed Conference Center for the first 5 years of operations. Conference Center 5-Year Cash Flow Period 1 2 3 4 5 Year Ending 12/31/2029 12/31/2030 12/31/2031 12/31/2032 12/31/2033 Revenues $3,239,522 100.0%$3,336,707 100.0%$3,436,809 100.0%$3,539,913 100.0%$3,646,110 100.0% Total Operating Expenses $1,700,749 52.5%$1,743,430 52.3%$1,787,141 52.0%$1,840,755 52.0%$1,895,977 52.0% Departmental Income $1,538,773 47.5%$1,593,278 47.8%$1,649,668 48.0%$1,699,158 48.0%$1,750,133 48.0% Total Undistributed $1,360,599 42.0%$1,376,392 41.3%$1,391,908 40.5%$1,433,665 40.5%$1,476,675 40.5% Gross Profit $178,174 5.5%$216,886 6.5%$257,761 7.5%$265,493 7.5%$273,458 7.5% Total Fixed/other Expense $178,174 5.5%$216,886 6.5%$257,761 7.5%$265,493 7.5%$273,458 7.5% Total Expenses $3,239,522 100.0%$3,336,707 100.0%$3,436,809 100.0%$3,539,913 100.0%$3,646,110 100.0% NOI $0 0.0%$0 0.0%$0 0.0%$0 0.0%$0 0.0% Operating Proforma Hotel Allocation The following Schedule presents the hotel only cash flow without the revenues and expenses from the Conference Center. We note, the NOI of the hotel is the same as the Conference Center and Hotel combined cash flow presented earlier. Estimated Hotel Operating Income 85 © 2025 CBRE, Inc. Stabilized Operating Income - Hotel ONLY Period Ending: 12/31/2031 Number of Rooms 200 Annual Available Rooms 73,000 Occupied Rooms 48,180 Occupancy 66.0% Average Rate $206.99 RevPAR $136.61 Total Ratio to Sales PAR POR NET INCOME (EBITDA)$4,302,074 32.2% $21,510 $89.29 Operating Expense Ratio 67.78% Departmental expense ratios are based on departmental revenues. Franchise/Royalty ratio is based on room revenues; all others are based on total revenues. Compiled by CBRE Analysis Premise Stabilized Cash Flow Estimated Hotel Operating Income 86 © 2025 CBRE, Inc. As Complete Cash Flow - Hotel ONLY, Beginning 01/01/2029 YEAR 1 2 3 4 5 6 7 8 9 10 Year Ended:12/31/29 12/31/30 12/31/31 12/31/32 12/31/33 12/31/34 12/31/35 12/31/36 12/31/37 12/31/38 REVENUE Total Operating Revenue $10,280,912 $11,740,887 $13,350,224 $13,854,487 $14,270,122 $14,698,225 $15,139,172 $15,593,347 $16,061,148 $16,542,982 DEPARTMENTAL EXPENSES DEPARTMENTAL PROFIT $6,996,580 $8,202,722 $9,508,109 $9,897,108 $10,194,022 $10,499,842 $10,814,838 $11,139,283 $11,473,461 $11,817,665 UNDISTRIBUTED OPERATING EXPENSES GROSS OPERATING PROFIT $4,117,612 $5,106,585 $6,168,403 $6,452,024 $6,645,584 $6,844,952 $7,050,300 $7,261,809 $7,479,664 $7,704,054 INCOME BEFORE NON-OPERATING INCOME AND EXPENSES $3,809,185 $4,754,359 $5,767,896 $6,036,389 $6,217,481 $6,404,005 $6,596,125 $6,794,009 $6,997,829 $7,207,764 NET INCOME (EBITDA) $2,725,244 $3,497,459 $4,302,074 $4,522,442 $4,658,115 $4,797,859 $4,941,794 $5,090,048 $5,242,750 $5,400,032 Economic Feasibility 87 © 2025 CBRE, Inc. Economic Feasibility Estimated Development Cost After developing our cash flow forecast for the proposed hotel, we then developed a hypothetical estimate of the total cost to develop the 200-room hotel improvements and 35,000 SF Conference Center. Estimates of the cost to develop on the recommended site were based on development cost estimates from hotel brands like Marriott, Hilton, as well as Marshall & Swift Valuation Service and comparable developments. The land for the site is city owned and may not be comparable with typical land sales or market conditions of the area. Furthermore, the dynamics around any contributing factor of the land is not yet established at this time. As such, based on our understanding of the current site, we have assumed no cost of land for the development project. Indirect costs can represent a significant portion of the overall budget, often ranging between 15% to 25% of total development costs. These expenses are crucial for ensuring a well-executed project that complies with regulations, minimizes risk, and aligns with market needs. We have assumed indirect costs at 18% of direct costs for both the Conference Center and Hotel. Replacement Cost of the Improvements The replacement cost for the subject’s improvements was derived by application of current cost factors from the Marshall Valuation Services (a nationally recognized costing index) providing cost data on similar-type properties. The cost estimate includes all hard and some soft construction costs, including: 1. Average architects’ and engineers’ fees, including plans, building permits, and surveys to establish building lines and grades; 2. Normal interest on building funds during periods of construction and associated processing fees or service charges; 3. Sales taxes on materials; 4. Normal site preparation, including excavation for foundation and backfill; 5. Utilities from the structure to lot line figured for typical setback; and, 6. Contractors' overhead and profit, including job supervision, workmen's compensation, fire and liability insurance, and unemployment insurance. Economic Feasibility 88 © 2025 CBRE, Inc. Building Improvements and FF&E In the system utilized by Marshall Valuation Services, the subject is assumed to be classified as a good Class A full-service hotel and a good class A conference center. For Class A hotels, the base cost for good improvements is $310.00 per square foot. For Class A conference centers, the base cost for good improvements is $369.00 per square foot. Added to this base cost are additions for incorporating wet sprinklers, an indoor pool, number of stories, current and location multipliers, and total personal property (FF&E) required to outfit the subject. As requested, the Conference Center and Hotel are separated in the cost build up analysis. However, when compared to the comparable developments, we combined the two components. The conclusion of costs, excluding contingency, is presented in the table below: Economic Feasibility 89 © 2025 CBRE, Inc. Marshall Valuation Service Cost Schedule Primary Building Type:Height per Story:25' Effective Age:Number of Buildings:1 Condition:Gross Building Area:150,000 SF Number of Units:Average Unit Size:750 SF Number of Stories:Average Floor Area:18,750 SF MVS Sec/Page 16/16 11/25 Quality/Bldg. Class Good/A Good/A Building Component Conference Center Hotel Component Sq. Ft.35,000 SF 115,000 SF Base Square Foot Cost $369.00 $310.00 Component Units N/A 200 Units Square Foot Refinements Height and Size Refinements Cost Multipliers Final Square Foot Cost $358.21 $296.24 Base Component Cost $12,537,235 $34,067,871 Base Building Costs (via Marshall Valuation Service cost data)$12,537,235 $34,067,871 Additions Pool $296,700 Pool Enclosure $456,000 Direct Building Cost Rounded $12,500,000 $34,800,000 FF&E $2,000,000 $5,600,000 Indirect Costs 18.0%of Direct Building Cost $2,250,000 $6,264,000 Direct and Indirect Building Cost $16,750,000 $46,664,000 Cost per Room $83,750 $233,320 Cost Per SF $479 $406 Combined Rounded $63,400,000 Cost per Room $317,000 Cost Per SF $423 Compiled by CBRE Economic Feasibility 90 © 2025 CBRE, Inc. As a test of reasonableness, comparable construction costs are presented below. Generally, our estimate is within the range of comparables on a per room basis. Construction Costs Comparable:1 2 3 Average Subject Name: Direct Costs The direct cost estimates include materials, labor, normal interest on building funds, sales tax on materials, normal site preparation, utilities from lot line to structure, and contractor’s overhead and profit. Certain items not encompassed in the above base costs, but which are components of replacement cost, include professional fees, marketing costs and off-site costs. Contingency Contingency costs are considered an addition to the overall cost budget to account for costs related to the unknowns. These are costs that may occur, but there is uncertainty regarding the amount due to unknown cost escalation, stage of the project, and other various factors. Incorporated into the overall cost estimate is a contingency percent of 10.0 percent of direct and indirect costs. Economic Feasibility 91 © 2025 CBRE, Inc. Estimated Development Costs The following table summarizes our estimated development costs. Hotel Estimate %$/Unit $/SF 200 150,000 SF Total $69,000,000 $345,000 $460 Hotel and Conference Center Cost Summary Hotel Only Cost Summary Apartment Estimate %$/Unit $/SF 200 115,000 SF Total $50,775,000 $253,875 $442 Conference Center Summary Hotel Estimate %$/Unit $/SF 200 35,000 SF Total $18,225,000 $345,000 $521 Economic Feasibility 92 © 2025 CBRE, Inc. IRR Analysis – HOTEL ONLY As Requestion, the following is a concise returns analysis for the hotel portion in isolation. Below is the calculation the range of internal rate of return (“IRR”) based on an assumed equity investment required to develop the project based on our range of development budget, projected income stream, and the following financing assumptions. • The development cost for the HOTEL ONLY, including financing points, would be approximately $51,149,000 , excluding any allocation of land. • Financing the project will be in line with current market terms, including Financing Points of 1.25 percent. Specifically, we have assumed that a developer could obtain a loan of 55 percent of the cost estimate above. The balance of the project cost plus Financing Points would be funded through an equity investment or alternative financing. This totals $22,860,000 . • We have assumed that the developer of the Subject would hold the Hotel for ten years and then sell the property. The terminal sales price of the Subject is estimated to be roundly 8.5 percent reversionary rate as a Conference Center and Hotel facility. However, this hypothetical analysis assumes a terminal sale of the hotel ONLY. The conference center is not included. This inherently poses a risk to a potential buyer as they would not have as much control of the conference center. To account for this, we have adjusted the terminal capitalization rate 25 bps to account for this potential risk. The terminal rate for the hotel portion of the development is concluded to be 8.75 percent. The following presents published surveys of terminal capitalization rates. o Terminal Capitalization Rates Investment Type Rate Range Average PwC Full Service Hotels 2nd Qtr. 2025 National Data - OAR 7.00%-10.00% 8.68% National Data - Residual OAR 4.50%-10.50% 8.65% Spread: Basis Points (BP)(250)-50 (3) Concluded BP Spread 50 CBRE Estimate 8.8% Compiled by: CBRE Economic Feasibility 93 © 2025 CBRE, Inc. LEVERAGED IRR ANALYSIS Hotel and Conference Center SOURCE AND USE OF FUNDS (Including Contingency) 55.0% Hotel Costs $50,775,000 Equity $22,860,000 45.0% Financing Points 1.25%$349,000 Total Use of Funds $50,800,000 Total Source of Funds $51,149,000 100.0% FIRST MORTGAGE Mortgage Amount $27,940,000 Monthly Payment $208,876 Interest Rate 7.50%Annual Payment $2,506,516 Amortization Period 25 years YEARLY CASH FLOW SUMMARY CAPITAL GAIN CALCULATION Eleventh Year Net Operating Income $5,562,033 Terminal Cap Rate 8.75% Gross Sales Price $63,566,090 Selling Costs 2.0% Net Sales Price $62,294,768 Remaining First Mortgage Balance $22,125,318 Return of Equity $23,557,135 LEVERAGED IRR ANALYSIS 10-Year Leveraged IRR 10.9% Economic Feasibility 94 © 2025 CBRE, Inc. Funding Gap Analysis As shown, the project without additional funding yields a 10.9% leveraged IRR, a below market- rate return. Hotel investors typically require an IRR on their equity investments of between 15 and 25 percent. Using a funding gap of $6,000,000 , the IRR of the project increases to 14.8%, slightly below the range of returns generally desired by investors. Therefore, the total required equity is reduced from $22,860,000 to $16,860,000 . Furthermore, due to the public/private nature of this development, property, sales, or hotel occupancy taxes could be exempt depending on the overall structure of this project. However, for this preliminary analysis, we have assumed taxes are not exempt and did not credit them in the cash flow. Additionally, due to the preliminary nature of this project, below represents a capital gap range that will allow for the hotel portion to be feasible. Potental Capital Gap Conclusion $4,000,000 -$8,000,000 This IRR analyses is presented on the following page, with a $6,000,000 addition to the capital sources, reducing the equity. Economic Feasibility 95 © 2025 CBRE, Inc. LEVERAGED IRR ANALYSIS Hotel and Conference Center SOURCE AND USE OF FUNDS (Including Contingency) 55.0% 11.8% $16,860,000 33.2% Financing Points 1.25%$349,000 Total Use of Funds $50,800,000 Total Source of Funds $51,149,000 100.0% FIRST MORTGAGE Mortgage Amount $27,940,000 Monthly Payment $208,876 Interest Rate 7.50%Annual Payment $2,506,516 Amortization Period 25 years YEARLY CASH FLOW SUMMARY CAPITAL GAIN CALCULATION Eleventh Year Net Operating Income $5,562,033 Terminal Cap Rate 8.75% Gross Sales Price $63,566,090 Selling Costs 2.0% Net Sales Price $62,294,768 Remaining First Mortgage Balance $22,125,318 Return of Equity $17,467,135 LEVERAGED IRR ANALYSIS 10-Year Leveraged IRR 14.8% Economic Impact 96 © 2025 CBRE, Inc. Economic Impact Total economic impact is a product of new direct and indirect spending within the local economy. CBRE Hotels analyzed the direct spending relative to construction of the development and activities associated with the proposed full-service Conference Hotel and Event Center. We also analyzed the direct spending relative to the operation of the proposed Conference Hotel and Event Center. Each new dollar spent (direct) has a multiplied effect on the economy in the form of increased revenues (spin off activity) to local businesses, increased employment, and increased earnings (indirect). Furthermore, the direct and indirect expenditure from the increased household earnings is considered induced impact. An example would be a new hotel purchases wholesale food and beverage inventory from a local wholesale retailer (Direct) who purchases more goods in the local economy and hires more employees as a result of an increase in sales volume (Indirect). Each new employee or wage increase also contributes a direct and indirect expenditure within the local economy (Induced). These direct, indirect, and induced expenditures represent the total impact to the economy. Our methodology separates economic impact into two categories: Construction and Operations. We then utilized the Regional Input-Output Modeling System (BEA RIMS II) for the Ames MSA developed by the U.S. Department of Commerce’s Bureau of Economic Analysis. Specifically, this analysis represents the Economic Impact from expenditures in the Ames MSA. There are potentially additional impacts at the County, Regional, and State levels, however, they are not presented in the report. The summary of the input/output model and multipliers used in this analysis is presented below as provided from the BEA. Economic Impact 97 © 2025 CBRE, Inc. Table 2.5 Total Multipliers - industry aggregations Region: Ames, IA Metropolitan Statistical Area (Type II) Series: 2017 U.S. Benchmark I-O data and 2023 Regional Data Final- demand Output /1/ (dollars) Final- demand Earnings /2/ (dollars) Final- demand Employment /3/ (number of jobs) 7 Construction 1.4617 0.3601 6.4645 29 Food and beverage stores 1.5356 0.4208 13.2594 30 General merchandise stores 1.5319 0.4058 13.0246 31 Other retail 1.5046 0.3688 11.2848 36 Transit and ground passenger transportation*1.5331 0.3715 18.3582 48 Real estate 1.3748 0.2226 8.336 54 Educational services 1.5435 0.5323 15.6648 60 Amusement, gambling, and recreation industries 1.5276 0.3631 10.4973 61 Accommodation 1.4943 0.3876 10.6404 62 Food services and drinking places 1.5773 0.445 15.2027 64 Households 0.7342 0.189 4.8658 Based on these multipliers, we developed estimates for total direct, indirect, and induced output from the local industries and the increased earnings to the area from elevated wages or added employment. Construction - The impact from the costs for the physical construction of the Conference Center and Hotel and the one-time increase it has on spending. The construction spending also influences employment in many sectors of the local economy. Economic impact from the construction of the hotel and event center comes in the form of wages paid to construction personnel as well as the purchase of construction materials. Operations – The creation of jobs and paying of wages to the employees of the proposed facility, as well as the day to day expenditures in the local market for goods and services from the subject hotel and event center. Visitation – The impact of visitors to Ames. Reflected in an estimate of total new visitors and their estimated expenditures. Economic Impact From Construction In addition to the ongoing impacts from the operation of the facilities, the construction of the proposed Conference Center Hotel and Event Center would create a one-time increase in spending. The estimated cost to develop the proposed Conference Center and Hotel based on comparable properties and MVS is $63,400,000. These costs provide an order of magnitude estimate of the development costs for the proposed subject to assess economic impact. The estimates could change once the final design and costing of the project by qualified architects, engineers and contractors is completed. Economic Impact 98 © 2025 CBRE, Inc. CBRE Hotels interviewed local representatives to determine a reasonable assumption for materials and labor originating from within the Ames MSA. Based on that information, and typical costs, we estimated 50% of all materials and labor would originate from defined area. The following table uses the BEA RIMS II multipliers for the Ames MSA to estimate economic impact resulting from construction. Output represents the dollar increase in output in all industries for every dollar increase in direct spending. That direct spending affects earnings. Earnings represent the increase in earnings of households employed by all industries for each dollar increase in direct spending. Proposed Hotel and Conference Center - Ames, IA Economic Impact from Construction Hotel Conference Center Combined Output - represents the dollar increase in output in Earnings - represents the dollar increase in earnings of households Total Economic Impact From Construction $42,500,000 $15,200,000 $57,800,000 Employment - represents the increase in jobs in all industries 151 55 206 Economic Impact from Operations Employment Direct economic impact from employment is generated by the creation of jobs and the paying of wages to the employees of the proposed facility. According to our comparables, a typical full- service hotel would have payroll costs of approximately 35% of its total revenue. As much as 30% of these wages are typically withheld for taxes and savings and are not spent, which leaves 65% of these wages to be spent on household products and services. For the purposes of the analysis, we estimated that 75% of the left over wages would be spent within the local economy. The sum of the first 10 years of operation is estimated to provide $62,500,000 in direct wages with $32,800,000 spent in the local economy. Based on a stabilized revenue of $16,787,033 and a multiplier of according to RIMS of 10.6404 per $1,000,000 of expenditure, we estimate the total employment for the Conference Center and Hotel to be 179 Jobs. The local Direct economic input in wage expenditures is calculated as follows: Economic Impact 99 © 2025 CBRE, Inc. Proposed Hotel and Conference Center - Ames, IA Local Economic Impact From Employment Total Payroll Taxes & Direct Spending Total (35% of Savings - (30%In Local Year Revenue1 Total Revenue)of Payroll)Economy (75%) 1 $13,520,434 4,732,152$ $1,419,646 $2,484,380 2 $15,077,594 5,277,158$ $1,583,147 $2,770,508 3 $16,787,033 5,875,462$ $1,762,638 $3,084,617 4 $17,394,400 6,088,040$ $1,826,412 $3,196,221 5 $17,916,232 6,270,681$ $1,881,204 $3,292,108 6 $18,453,719 6,458,802$ $1,937,640 $3,390,871 7 $19,007,331 6,652,566$ $1,995,770 $3,492,597 8 $19,577,550 6,852,143$ $2,055,643 $3,597,375 9 $20,164,877 7,057,707$ $2,117,312 $3,705,296 10 $20,769,823 7,269,438$ $2,180,831 $3,816,455 Total $178,700,000 $62,500,000 $18,800,000 $32,800,000 After calculating the amount spent by employees in the local economy, we then applied the BEA RIMS II multipliers. Indirect induced impact occurs when the industries that produce these products and deliver these services hire more persons and pay more wages. Utilizing the average household expenditure by category within Ames in 2024 according to ESRI, we broke down the potential expenditure in wages by industry and applied the RIMS II multipliers corresponding to each industry. The indirect and induced impact from output and earnings for the first 10 years of hotel operations is presented in the following table. Overall, the indirect and induced impact from the household expenditures derived from employment at the proposed subject is potentially $55,000,000 over the 10-year period. Expenditure Local Spending % of Local Spending Food and Beverage Stores $4,920,000 15% 1.5356 $7,555,152 0.4208 $2,070,336 General Merchandise Stores $1,640,000 5% 1.5319 $2,512,316 0.4058 $665,512 Other Services $2,952,000 9% 1.5046 $4,441,579 0.3688 $1,088,698 Transit and Ground Passenger Transportation $3,781,840 12% 1.5331 $5,797,939 0.3715 $1,404,954 Amusement, Gambling, and Recreation Industries $3,280,000 10% 1.5276 $5,010,528 0.3631 $1,190,968 Households $4,592,000 14% 0.7342 $3,371,446 0.189 $867,888 Education $984,000 3% 1.5435 $1,518,804 0.5323 $523,783 Real Estate $10,591,120 32% 1.3748 $14,560,672 0.2226 $2,357,583 Total Local Spending $32,700,000 100%$44,800,000 $10,200,000 Total Output and Earnings $55,000,000 Local Expenditures Over 10 Years Output1 Earnings2 Economic Impact 100 © 2025 CBRE, Inc. Number of Jobs and Allocated Economic Impact To calculate the potential number of jobs generated from the proposed project, CBRE utilized the RIMS multipliers for the following industries; accommodations and food services and drinking places. The following table presents our estimates using the stabilized conference center and hotel revenues separately. Proposed Conference Center and Hotel - Ames, IA Estimated Number of Jobs Stabilized Revenues $3,436,809 RIMS Multiplier (Jobs Per $1M of Revenue)15.2027 Direct Jobs (Full-Time Equivalent) from Conference Center 52 %27% Stabilized Revenues (HOTEL ONLY)$13,350,224 RIMS Multiplier (Jobs Per $1M of Revenue)10.6404 Direct Jobs (Full-Time Equivalent) from Hotel 142 %73% Direct Jobs (Full-Time Equivalent) 194 Conference Center Hotel Combined Source: CBRE Hotels Total number of jobs created for the hotel project is estimated to be 194. The Conference Center accounts for 52 jobs or 27% of the total. The hotel portion accounts for 142 (73%). To allocate the impact from household expenditures, we allocated 27% of the previous Output and Earnings calculations to the Conference Center with the remainder to the Hotel. The following table presents the estimated allocation. Economic Impact 101 © 2025 CBRE, Inc. Proposed Conference Center and Hotel - Ames, IA Labor Economic Impact allocation Output Output (rounded)Earnings (rounded)Totals (rounded) Conference Center $12,050,000 $2,740,000 $14,800,000 %27%27% Hotel $32,750,000 $7,460,000 $40,200,000 %73%73% Hotel Totals $44,800,000 $10,200,000 $55,000,000 Source: CBRE Hotels Goods and Services Expenditures Direct economic impact from all other operating expenses in the subject is effectively the difference between overall operating expenses and employee wages. This represents the direct spending for goods and services in the local economy from the hotel and event center operations. For this purpose, we are defining overall operating expenses as departmental expense plus undistributed expenses. We then deduct wages or payroll expenses (expressed previously) to get Net Operating Expenses. Lastly, we determine a reasonable estimate of those net operating expenses spent in Ames. After calculating the local operating expenditures, we then applied the BEA RIMS II multipliers attributed to the accommodation industry. This results in a total of $45,700,000 of total impact from output and increased earnings over the first 10 years of operations. The following table presents this calculation. Economic Impact 102 © 2025 CBRE, Inc. Proposed Hotel and Conference Center - Ames, IA Local Economic Impact From Operations Total Payroll Net Operating Operating Total (35% of Expense Expenses Output3 Earnings4 Operating Expense1 Total Revenue) Less Payroll Spent Locally (50%)1.4943 0.3876 TOTAL 1 $9,224,648 4,732,152$ $4,492,496 $2,246,248 $3,356,568 $870,646 $4,227,214 2 $9,754,123 5,277,158$ $4,476,965 $2,238,483 $3,344,965 $867,636 $4,212,600 3 $10,360,869 5,875,462$ $4,485,408 $2,242,704 $3,351,272 $869,272 $4,220,545 4 $10,676,883 6,088,040$ $4,588,843 $2,294,421 $3,428,554 $889,318 $4,317,871 5 $10,997,189 6,270,681$ $4,726,508 $2,363,254 $3,531,410 $915,997 $4,447,408 6 $11,327,105 6,458,802$ $4,868,304 $2,434,152 $3,637,353 $943,477 $4,580,830 7 $11,666,918 6,652,566$ $5,014,353 $2,507,176 $3,746,474 $971,782 $4,718,255 8 $12,016,926 6,852,143$ $5,164,783 $2,582,392 $3,858,868 $1,000,935 $4,859,803 9 $12,377,434 7,057,707$ $5,319,727 $2,659,864 $3,974,634 $1,030,963 $5,005,597 10 $12,748,756 7,269,438$ $5,479,318 $2,739,659 $4,093,872 $1,061,892 $5,155,764 Total $111,200,000 $62,500,000 $48,600,000 $24,300,000 $36,300,000 $9,400,000 $45,700,000 4 Earnings represents the dollar increase in earnings of households in all industires for every dollar increase in direct spending Economic Impact2 1 Sum of the departmental and undistributed expenses 2US Department of Commerce - Bureau of Economic Analysis (BEA) RIMS II Multipliers 3Output represents the dollar increase in output in all industries for every dollar increase in direct spending Source: CBRE Hotels To allocate economic impact from operations, we applied the ratio of Conference Center operating expenses to Hotel. In the stabilized year, the Conference Center alone is approximately 31% of the combined operating expenses (before fixed building costs). We applied the 31% ratio to the previous table’s 10-year economic impact conclusions for the conference center. The remainder was allocated to the hotel. The allocations for Conference Center and Hotel are summarized below. Proposed Conference Center and Hotel - Ames, IA Operations Impact Allocations Stabilized Operating Expenses Output over 10 years (rounded) Earnings (rounded)Totals (rounded) Conference Center $3,179,048 $11,138,008 $2,884,222 $14,000,000 %31% Hotel $7,181,821 $25,161,992 $6,515,778 $31,700,000 %69% Totals $10,360,869 $36,300,000 $9,400,000 $45,700,000 Source: CBRE Hotels Economic Impact from Visitation Direct economic impact from visitation is generated by local expenditures from visitors to the proposed facilities. Specifically, this includes expenditures APART FROM what is captured at the Economic Impact 103 © 2025 CBRE, Inc. subject hotel. These expenditures could include local restaurants, retail, fuel costs, entertainment, as well as other hotels. Visitation Utilizing placer.ai, an industry leading geofencing service, we tracked general visitation statistics of 5 comparable venues to determine the number of visitors that could be attracted to the subject. Furthermore, we isolated 2 data sets defined as follows: • Total Visitors: All non-resident and non-employee visits to the property for over 60 minutes. • Total Non-Headquarter Overnight Stays: All non-resident and non-employee visits to the Ames Market property for over 60 minutes from OUTSIDE a 2-hour drive. Additionally, we isolated overnight visitors NOT staying in the Subject Hotel. After review of the comparable venues, approximately 100,000 total visitors is estimated including 15,500 potential overnight visitors Not captured by the Subject Hotel. Moreover, this is the estimate concluded in the Induced Demand Analysis. The following table presents the data from Placer.ai utilizing the previously defined filters and our subject estimate from the Induced Demand Analysis. Our subject estimate took into consideration potential redundancies or inaccuracies in Placer.ai data which may not account for visitors with multiple cell phones, deliveries, or other limiting factors attributed to the data set. Furthermore, for NEW visitors to the market, our interviews indicated most of the events that could be re- located to Ames are not currently held there due to the lack of facilities. As such, we calculated approximately 70% of visitors would be NEW visitors to the area. Comparable Visitor Traffic Summary Market Total Visitors Total Non-Headquarter Overnight Stays CBRE Estimates Rounded 100,000 15,500 Economic Impact 104 © 2025 CBRE, Inc. Estimate of NEW Visitors to Ames CBRE Estimate Percent Large Group Visitors New Visitors Total New Visitors 100,000 70%70,000 15,500 Source: Placer.ai, CBRE Hotels, Meeting Planner Survey Conclusion of Induced Room Nights Based on the most recent Discover Ames Economic Impact report, the average lodging expenditure in Story County for all overnight visitors is as follows: Story County Overnight Expenditures Total Visitors Lodging Expenditure Average Lodging Spend per Visit The report also provided the average visitor expenditure for the County summarized as follows: Story County Total Visitor Expenditures Category Spend % Total $228,300,000 Transportation $58,000,000 25.4% Food and Beverage $58,200,000 25.5% Recreation $32,500,000 14.2% Retail $36,400,000 15.9% Lodging $43,200,000 18.9% Source: Discover Ames 2025 Annual Report The tourism economic report did not reference the number of visitors to determine the average spend per visit. However, after our initial market interviews, as well as a review of the economic and demographic profile of the local region, CBRE estimated a reasonable estimate of average expenditures for all visitors, as well as overnight. As a comparable, Cedar Rapids, Iowa indicated an average visitor spend of $248 in 2021 (most recent data available). Economic Impact 105 © 2025 CBRE, Inc. Additional adjustments were made due to the likelihood event attendees would be spending more per day than the average traveler currently. The following presents our estimate of the average spend per visit, total expenditure, as well as the breakdown by category of the expenditure for all visitors to the proposed Subject. Subject Estimated Visitor Expenditures Category Visitors Average Spend Per Visit Total Expenditures CBRE Estimate (2024$) New Visitors 70,000 $260 $18,200,000 2024$Inflated 3% YoY to Stabilized Year (2031) $4,623,741 $5,686,618 Food and Beverage 25%$4,639,685 $5,540,026 Recreation 14%$2,590,889 $3,093,657 Retail 16%$2,901,796 $3,464,896 Lodging 19%$3,443,890 $4,112,184 Source: CBRE Hotels Total visitor Expenditure by Category - Adjusted to Ames MSA The estimated visitor expenditure is not all captured in the local market or may be accounted for in the previous employment and operation sections. As such, further adjustments were made for each category to estimate the direct impact to Ames MSA. A summary of the adjustments are as follows: • Transportation – 50% of the expenditure is estimated to be captured in the area. • Food & Beverage – 85% captured locally, as well as a deduction of the Subject F&B revenues from these expenditures to isolate the spend outside the subject Conference Center and Hotel. We estimate an additional 70% of the expenditure is captured by the Subject. • Recreation – 70% is captured locally due to the ISU, sports, museums, arts, etc. • Retail – 70% is captured locally due to the location next to downtown and major shopping centers in the area. • Lodging – Only accounted for the Induced demand NOT captured by the subject. The Subject’s lodging expenditures is accounted for in the Operation analysis earlier in this section. The adjustments for Hotel and Food and Beverage expenditures are presented in the following tables. Economic Impact 106 © 2025 CBRE, Inc. Hotel Expenditure Adjustment Category Total Expenditures Induced Overnight visitors 15,500 Average Rate $130 Lodging Expenditure Induced to the Market $2,015,000 Source: CBRE Hotels Food and Beverage Expenditure Adjustment Category F&B spend (2031$) Total Local F&B Spend (85%)$4,709,022 Subject Hotel Captured F&B (70%) Lodging Expenditure Induced to the Market $1,412,707 Source: CBRE Hotels The following table presents a summary of the adjustments and direct Ames MSA Visitor expenditures. Economic Impact 107 © 2025 CBRE, Inc. Estimated Visitor Expenditures Captured in Ames, IA Category Expenditure (rounded) $2,843,309 Food and Beverage (Less Subject Capture)$1,412,707 Recreation (80'% Local Capture)$2,474,926 Retail (70% Local Capture)$2,425,427 Lodging (Induced ONLY)$2,015,000 Source: CBRE Hotels CBRE utilized the RIMS multipliers which most suited the categories defined by the tourism report in 2025. The following table presents the direct local expenditures and the resulting output and increased earnings from indirect and induced impact in the stabilized year of operations (2031). Additionally, we calculated the impact over a 10-year period starting from 2029 and ending 2038 using a 3% inflation rate. Estimated Visitor Expenditures - In Ames, IA Category RIMS Industry Direct Local Expenditure (Rounded)Total $2,800,000 1.5046 $4,212,880 0.3688 $1,032,640 $5,245,520 $1,400,000 1.5773 $2,208,220 0.445 $623,000 $2,831,220 $2,500,000 1.5276 $3,819,000 0.3631 $907,750 $4,726,750 $2,400,000 1.5046 $3,611,040 0.3688 $885,120 $4,496,160 $2,000,000 1.4943 $2,988,600 0.3876 $775,200 $3,763,800 Totals $11,100,000 $16,839,740 $4,223,710 $21,063,450 Total over a 10 Year Period 2029-2038 $140,611,479 $213,320,788 $53,504,695 $407,436,962 Rounded $140,600,000 $213,300,000 $53,500,000 $407,400,000 Source: CBRE Hotels Output Earnings TOTAL ECONOMIC IMPACT The following table summarizes the aggregate local economic impact of the proposed Conference Center and Hotel beginning with construction in 2026 through the proposed facilities first 10 years (2029 through 2038) of operations. Economic Impact 108 © 2025 CBRE, Inc. Proposed Conference Center and Hotel - Ames, IA Total Economic Impact over 10 years Operations Total Economic Construction Employment (Combined)Visitor Impact Combined $57,700,000 $55,000,000 $45,700,000 $407,400,000 $565,800,000 Number of Jobs Construction Employment Combined 206 194 Economic Impact 109 © 2025 CBRE, Inc. Fiscal Impact In addition to the economic impact, we also identified the fiscal benefit to the local community. This analysis estimates fiscal impacts for the governmental units that levy taxes in the jurisdiction. The fiscal impacts are tax revenues resulting from the spending and income related to activities at the new hotel and event center. CBRE Hotels estimated fiscal impact by multiplying the applicable tax rates by the estimated amounts of direct and indirect spending. Hotel Occupancy Tax The State of Iowa and Ames will benefit from the collection of a Hotel Occupancy Tax levied on the Rooms Revenue of the proposed Hotel. Currently the hotel occupancy tax is 5% in the State and 7% in Ames. The following table summarizes the potential hotel occupancy taxes for the period 2029 through 2038, the first 10 years of hotel operations. Proposed Conference Center and Hotel - Ames, IA Potential Hotel Occupancy Tax Revenues Projected Potential State Hotel Potential Ames Hotel Total Potential Year Rooms Revenue 1 Occupancy Tax Revenue 2 Occupancy Tax Revenue 2 Occupancy Tax Revenue 1 $7,790,339 $389,517 $545,324 $934,841 2 $8,858,313 $442,916 $620,082 $1,062,998 3 $9,972,671 $498,634 $698,087 $1,196,720 4 $10,375,607 $518,780 $726,292 $1,245,073 5 $10,686,875 $534,344 $748,081 $1,282,425 6 $11,007,481 $550,374 $770,524 $1,320,898 7 $11,337,706 $566,885 $793,639 $1,360,525 8 $11,677,837 $583,892 $817,449 $1,401,340 9 $12,028,172 $601,409 $841,972 $1,443,381 10 $12,389,017 $619,451 $867,231 $1,486,682 Total $106,100,000 $5,306,201 $7,400,000 $12,700,000 Sales Tax The following table summarizes the potential sales taxes generated by the proposed Hotel for the period 2029 through 2038, which encompasses the period from construction through the first 10 years of operations. The State of Iowa Tax Rate is 6% and Story county is an additional 1%, there is no sales tax for the City of Ames. The following table presents the potential sales tax revenues from the construction spending and operation of the proposed Conference Center and Hotel. Economic Impact 110 © 2025 CBRE, Inc. Proposed Conference Center and Hotel - Ames, IA Potential State Sales Tax Revenues Potential Potential Impact from Revenues Sales Tax Sales Tax Year Construction Rooms and F&B County (1%)State (6%) 2026/2027 $57,700,000 --$577,000 $3,462,000 1 --$12,766,407 $127,664 $765,984 2 --$14,262,594 $142,626 $855,756 3 --$15,898,203 $158,982 $953,892 4 --$16,478,905 $164,789 $988,734 5 --$16,973,272 $169,733 $1,018,396 6 --$17,482,471 $174,825 $1,048,948 7 --$18,006,945 $180,069 $1,080,417 8 --$18,547,153 $185,472 $1,112,829 9 --$19,103,568 $191,036 $1,146,214 10 --$19,676,675 $196,767 $1,180,600 Total $57,700,000 $169,200,000 $2,300,000 $13,600,000 Source: CBRE Hotels To allocate the conference center and hotel separately, CBRE calculated the ratios of the separate revenues relative to the combined operations on a stabilized basis. The conference center estimate is roundly 22% of combined rooms and F&B revenues, with the remaining hotel at 78%. Using those ratios, we applied the cumulative 10-year fiscal impact from sales taxes presented in the prior table. Furthermore, we separated the construction expenditures as well. A summary of this analysis is presented in the following table. Proposed Conference Center and Hotel - Ames, IA Sales Tax Allocations - 10 years (2029-2038) Potential Potential County Sales Tax Sales Tax & State Component County (1%)State (6%)Totals Conference Center $15,200,000 $152,000 $912,000 $1,064,000 Hotel $42,500,000 $425,000 $2,550,000 $2,975,000 Subtotal $57,700,000 $577,000 $3,462,000 $4,039,000 Revenues Allocation Stabilized (Rooms and F&B) Conference Center $3,436,809 22%$372,471 $2,191,592 $2,564,063 Hotel $12,461,394 78%$1,350,529 $7,946,408 $9,296,937 Subtotal $15,898,203 $1,723,000 $10,138,000 $11,861,000 TOTALS (Construction, Revenues, All components)$2,300,000 $13,600,000 $15,900,000 Construction 10 year Sales Tax Impact Economic Impact 111 © 2025 CBRE, Inc. Property Tax We have used our projected property tax estimates from the CBRE Hotels market study for the proposed Hotel as a baseline for estimating the expected property tax receipts related to the development. For purposes of this analysis, CBRE Hotels has assumed no tax rebates are associated with the development. The following table presents the total property taxes generated by the proposed Hotel. Proposed Conference Center and Hotel - Ames, IA Forecasted Property Tax Forecasted Year Property Tax Total $7,330,928 Total Projected Economic, Employment, and Fiscal Impact Summary The first table below presents the total Summary of Economic, Employment and Fiscal Impact for the proposed full-service Hotel. Economic Impact 112 © 2025 CBRE, Inc. Proposed Conference Center and Hotel - Ames, IA Summary of Economic, Employment & Fiscal Impact Economic Impact Conference Center Hotel Totals Total Economic Impact from Construction $15,200,000 $42,500,000 $57,700,000 Total Economic Impact from Labor - 10-Year Period $14,800,000 $40,200,000 $55,000,000 Total Economic Impact from Operations - 10-Year Period $14,000,000 $31,700,000 $45,700,000 Total Economic Impact from Visitation - 10-Year Period $407,400,000 $407,400,000 TOTAL Economic Impact $565,800,000 Employment Impact Total Jobs from Construction within Ames MSA 55 151 206 Jobs Direct Jobs (FTE) from Hotel Operation 52 142 194 Jobs TOTAL Employment Impact 385 Jobs Fiscal Impact Potential City Hotel Occupancy Tax Revenues - 10-Year Period $20,100,000 $20,100,000 Potential Sales Tax Revenues - 10-Year Period $3,628,063 $12,271,937 $15,900,000 Potential Property Tax Revenues - 10-Year Period $7,300,000 $7,300,000 TOTAL Fiscal Impact $39,671,937 Source: CBRE Hotels Economic Feasibility 113 © 2025 CBRE, Inc. This concludes our analysis of the potential market demand and economic impact for the proposed Conference Center and Hotel. After you have had an opportunity to review this report, please feel free to contact us with any questions or comments. Thank you for this opportunity and we look forward to working with you on this engagement in the future. Yours sincerely, CBRE Hotels Assumptions and Limiting Conditions 114 © 2025 CBRE, Inc. Assumptions and Limiting Conditions 1. CBRE, Inc. through its appraiser (collectively, “CBRE”) has inspected through reasonable observation the subject property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil and the entire interior and exterior of the improvements on the subject property. Therefore, no representation is made as to such matters. 2. The report, including its conclusions and any portion of such report (the “Report”), is as of the date set forth in the letter of transmittal and based upon the information, market, economic, and property conditions and projected levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or other events or conditions which occur subsequent to such date. 3. Unless otherwise expressly noted in the Report, CBRE has assumed that: (i) Title to the subject property is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE has not examined title records (including without limitation liens, encumbrances, easements, deed restrictions, and other conditions that may affect the title or use of the subject property) and makes no representations regarding title or its limitations on the use of the subject property. Insurance against financial loss that may arise out of defects in title should be sought from a qualified title insurance company. (ii) Existing improvements on the subject property conform to applicable local, state, and federal building codes and ordinances, are structurally sound and seismically safe, and have been built and repaired in a workmanlike manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; and the roof and exterior are in good condition and free from intrusion by the elements. CBRE has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. CBRE appraisers are not engineers and are not qualified to judge matters of an engineering nature, and furthermore structural problems or building system problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems. (iii) Any proposed improvements, on or off-site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. (iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater, mold, or other potentially hazardous materials may affect the value of the property. (v) No mineral deposit or subsurface rights of value exist with respect to the subject property, whether gas, liquid, or solid, and no air or development rights of value may be transferred. CBRE has not considered any rights associated with extraction or exploration of any resources, unless otherwise expressly noted in the Report. (vi) There are no contemplated public initiatives, governmental development controls, rent controls, or changes in the present zoning ordinances or regulations governing use, density, or shape that would significantly affect the value of the subject property. (vii) All required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be readily obtained or renewed for any use on which the Report is based. (viii) The subject property is managed and operated in a prudent and competent manner, neither inefficiently, nor super-efficiently. (ix) The subject property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses. Assumptions and Limiting Conditions 115 © 2025 CBRE, Inc. (x) The subject property is in full compliance with the Americans with Disabilities Act (ADA). CBRE is not qualified to assess the subject property’s compliance with the ADA, notwithstanding any discussion of possible readily achievable barrier removal construction items in the Report. (xi) All information regarding the areas and dimensions of the subject property furnished to CBRE are correct, and no encroachments exist. CBRE has neither undertaken any survey of the boundaries of the subject property, nor reviewed or confirmed the accuracy of any legal description of the subject property. Unless otherwise expressly noted in the Report, no issues regarding the foregoing were brought to CBRE’s attention, and CBRE has no knowledge of any such facts affecting the subject property. If any information inconsistent with any of the foregoing assumptions is discovered, such information could have a substantial negative impact on the Report. Accordingly, if any such information is subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover them. Any user of the Report is urged to retain an expert in the applicable field(s) for information regarding such conditions. 4. CBRE has assumed that all documents, data and information furnished by or on behalf of the client, property owner or owner’s representative are accurate and correct, unless otherwise expressly noted in the Report. Such data and information include, without limitation, numerical street addresses, lot and block numbers, Assessor’s Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any error in any of the above could have a substantial impact on the Report and any conclusions stated therein. Accordingly, if any such errors are subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. The client and intended user should carefully review all assumptions, data, relevant calculations, and conclusions of the Report and should immediately notify CBRE of any questions or errors within 30 days after the date of delivery of the Report. 5. CBRE assumes no responsibility (including any obligation to procure the same) for any documents, data or information not provided to CBRE, including, without limitation, any termite inspection, survey or occupancy permit. 6. All furnishings, equipment and business operations have been disregarded with only real property being considered in the Report, except as otherwise expressly stated and typically considered part of real property. 7. Any cash flows included in the analysis are forecasts of estimated future operating characteristics based upon the information and assumptions contained within the Report. Any projections of income, expenses and economic conditions utilized in the Report, including such cash flows, should be considered as only estimates of the expectations of future income and expenses as of the date of the Report and not predictions of the future. This Report has been prepared in good faith, based on CBRE's current anecdotal and evidence-based views of the commercial real estate market. Although CBRE believes its views reflect market conditions on the date of this Report, they are subject to significant uncertainties and contingencies, many of which are beyond CBRE's control. In addition, many of CBRE's views are opinion and/or projections based on CBRE's subjective analyses of current market circumstances. Actual results are affected by a number of factors outside the control of CBRE, including without limitation fluctuating economic, market, and property conditions. Actual results may ultimately differ from these projections, and CBRE does not warrant any such projections. Further, other firms may have different opinions, projections and analyses, and actual market conditions in the future may cause CBRE's current views to later change or be incorrect. CBRE has no obligation to update its views herein if its opinions, projections, analyses or market circumstances later change. 8. The Report contains professional opinions and is expressly not intended to serve as any warranty, assurance or guarantee of any particular value of the subject property. Other appraisers may reach different conclusions as to the value of the subject property. Furthermore, market value is highly related to exposure time, promotion effort, terms, motivation, and conclusions surrounding the offering of the subject property. The Report is for the sole purpose of providing the intended user with CBRE’s independent professional opinion of the value of the subject property as of the date of the Report. Accordingly, CBRE shall not be liable for any losses that arise from any investment or lending decisions based upon the Report that the client, intended user, or any buyer, seller, investor, or lending institution may undertake related to the subject property, and CBRE has not been compensated to assume any of these risks. Nothing contained in the Report shall be construed as any direct or indirect recommendation of CBRE to buy, sell, hold, or finance the subject property. 9. No opinion is expressed on matters which may require legal expertise or specialized investigation or knowledge including, but not limited to, environmental, social, and governance principles (“ESG”), beyond that customarily employed by real estate appraisers. Any user of the Report is advised to retain experts in areas that fall outside the scope of the real estate appraisal profession for such matters. Assumptions and Limiting Conditions 116 © 2025 CBRE, Inc. 10. CBRE assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance. 11. Acceptance or use of the Report constitutes full acceptance of these Assumptions and Limiting Conditions and any special assumptions set forth in the Report. It is the responsibility of the user of the Report to read in full, comprehend and thus become aware of all such assumptions and limiting conditions. CBRE assumes no responsibility for any situation arising out of the user’s failure to become familiar with and understand the same. 12. The Report applies to the property as a whole only, and any pro ration or division of the title into fractional interests will invalidate such conclusions, unless the Report expressly assumes such pro ration or division of interests. 13. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal and are not valid for any such use. 14. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. No such items shall be removed, reproduced, or used apart from the Report. 15. The Report shall not be duplicated or provided to any unintended users in whole or in part without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Exempt from this restriction is duplication for the internal use of the intended user and its attorneys, accountants, or advisors for the sole benefit of the intended user. Also exempt from this restriction is transmission of the Report pursuant to any requirement of any court, governmental authority, or regulatory agency having jurisdiction over the intended user, provided that the Report and its contents shall not be published, in whole or in part, in any public document without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Finally, the Report shall not be made available to the public or otherwise used in any offering of the property or any security, as defined by applicable law. Any unintended user who may possess the Report is advised that it shall not rely upon the Report or its conclusions and that it should rely on its own appraisers, advisors and other consultants for any decision in connection with the subject property. CBRE shall have no liability or responsibility to any such unintended user. Addenda © 2025 CBRE, Inc. ADDENDA Addenda © 2025 CBRE, Inc. Survey Responses – Discover Ames Ames Hotel and Conference Center Survey - Discover Ames 1 / 33 Q1 What is the name of your company/organization? (Optional) Answered: 104 Skipped: 48 Ames Hotel and Conference Center Survey - Discover Ames 2 / 33 Q2 Roughly how many times PER YEAR do you host the following event types. Leave blank if 0 (Check all that apply for each category.) Answered: 150 Skipped: 2 Gala/Banquet Events Social Event/Wedding Meeting/Trainin g Ames Hotel and Conference Center Survey - Discover Ames 3 / 33 Trade/Consumer Show Convention/Conf erence Sports Events Ames Hotel and Conference Center Survey - Discover Ames 4 / 33 47.79% 54 46.90% 53 3.54% 4 0.00% 0 0.00% 0 0.00% 0 1.77% 2 113 61.11% 66 25.93% 28 6.48% 7 0.00% 0 2.78% 3 0.93% 1 2.78% 3 108 10.22% 14 39.42% 54 17.52% 24 9.49% 13 7.30% 10 4.38% 6 11.68% 16 137 65.74% 71 28.70% 31 3.70% 4 0.00% 0 0.00% 0 0.00% 0 1.85% 2 108 20.30% 27 63.91% 85 9.02% 12 3.01% 4 2.26% 3 0.75% 1 0.75% 1 133 78.10% 82 10.48% 11 2.86% 3 0.95% 1 0.00% 0 0.95% 1 6.67% 7 105 50.98% 52 26.47% 27 4.90% 5 6.86% 7 1.96% 2 1.96% 2 6.86% 7 102 0%10%20%30%40%50%60%70%80%90%100% 0 1-3 4-7 7-10 10-15 15-20 20+ Other Events 0 1-3 4-7 7-10 10-15 15-20 20+TOTAL Gala/Banquet Events Social Event/Wedding Meeting/Training Trade/Consumer Show Convention/Conference Sports Events Other Events Ames Hotel and Conference Center Survey - Discover Ames 5 / 33 147 17,800 121 Q3 What is the typical size of your Gala/Banquet Events? (adjust the slider) Answered: 121 Skipped: 31 Total Respondents: 121 0 20 40 60 80 100 120 140 160 180 200 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Discover Ames 6 / 33 77 7,500 97 Q4 What is the typical size of your Social/Wedding Events? (adjust the slider) Answered: 97 Skipped: 55 Total Respondents: 97 0 10 20 30 40 50 60 70 80 90 100 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Discover Ames 7 / 33 95 12,850 135 Q5 What is the typical size of your Meetings/Trainings? (adjust the slider) Answered: 135 Skipped: 17 Total Respondents: 135 0 10 20 30 40 50 60 70 80 90 100 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Discover Ames 8 / 33 225 19,350 86 Q6 What is the typical size of your Trade/Consumer Shows? (adjust the slider) Answered: 86 Skipped: 66 Total Respondents: 86 0 100 200 300 400 500 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Discover Ames 9 / 33 340 42,900 126 Q7 What is the typical size of your Conference/Conventions? (adjust the slider) Answered: 126 Skipped: 26 Total Respondents: 126 0 100 200 300 400 500 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Discover Ames 10 / 33 219 16,650 76 Q8 What is the typical size of your Sports Events? (adjust the slider) Answered: 76 Skipped: 76 Total Respondents: 76 0 100 200 300 400 500 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Discover Ames 11 / 33 141 12,550 89 Q9 What is the typical size of your Other Events? (adjust the slider) Answered: 89 Skipped: 63 Total Respondents: 89 0 20 40 60 80 100 120 140 160 180 200 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Discover Ames 12 / 33 4 570 130 Q10 How many break out rooms would you require for medium to large events? (Check all that apply for each category.) Answered: 130 Skipped: 22 Total Respondents: 130 0 1 2 3 4 5 6 7 8 9 10 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Discover Ames 13 / 33 Q11 What is the typical number of hotel rooms you would need for these events?(Check all that apply for each category) Answered: 148 Skipped: 4 Gala/Banquet Events Social Event/Wedding Meeting/Trainin g Ames Hotel and Conference Center Survey - Discover Ames 14 / 33 Trade/Consumer Show Convention/Conf erence Sports Events Ames Hotel and Conference Center Survey - Discover Ames 15 / 33 49.06% 52 26.42% 28 8.49% 9 5.66% 6 6.60% 7 0.94% 1 2.83% 3 106 65.26% 62 17.89% 17 9.47% 9 3.16% 3 1.05% 1 2.11% 2 1.05% 1 95 28.23% 35 45.97% 57 13.71% 17 7.26% 9 3.23% 4 0.81% 1 0.81% 1 124 60.64% 57 7.45% 7 7.45% 7 6.38% 6 6.38% 6 6.38% 6 5.32% 5 94 14.73% 19 16.28% 21 19.38% 25 11.63% 15 17.83% 23 4.65% 6 15.50% 20 129 68.60% 59 9.30% 8 4.65% 4 3.49% 3 5.81% 5 1.16% 1 6.98% 6 86 60.67% 54 23.60% 21 7.87% 7 2.25% 2 2.25% 2 0.00% 0 3.37% 3 89 0%10%20%30%40%50%60%70%80%90%100% None <25 Rooms 25-50 50-100 100-200 200-300 >300 Rooms Other Events NONE <25 ROOMS 25-50 50-100 100-200 200-300 >300 ROOMS TOTAL Gala/Banquet Events Social Event/Wedding Meeting/Training Trade/Consumer Show Convention/Conference Sports Events Other Events Ames Hotel and Conference Center Survey - Discover Ames 16 / 33 146 18,820 129 Q12 What average hotel rate are you currently quoted for most of your events? (adjust the slider) Answered: 129 Skipped: 23 Total Respondents: 129 0 20 40 60 80 100 120 140 160 180 200 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Discover Ames 17 / 33 Q13 For HOTEL FACILITY amenities, please indicate a level of need for you and/or your groups. Answered: 145 Skipped: 7 3-meal restaurant Cafe/Grab and Go Rooftop/Terrace Bar Indoor Connection to Conference... Hospitality Suite Fitness Ames Hotel and Conference Center Survey - Discover Ames 18 / 33 0%10%20%30%40%50%60%70%80%90%100% Highly Nee …Somewhat …Indifferent Business Center/Services Pool Wellness/Spa Other Ames Hotel and Conference Center Survey - Discover Ames 19 / 33 27.74% 38 50.36% 69 21.90% 30 137 40.15% 53 49.24% 65 10.61% 14 132 13.08% 17 42.31% 55 44.62% 58 130 53.62% 74 32.61% 45 13.77% 19 138 23.66% 31 36.64% 48 39.69% 52 131 14.29% 18 41.27% 52 44.44% 56 126 22.56% 30 46.62% 62 30.83% 41 133 8.00% 10 34.40% 43 57.60% 72 125 3.31% 4 21.49% 26 75.21% 91 121 8.20% 5 4.92% 3 86.89% 53 61 HIGHLY NEEDED - REQUIRED SOMEWHAT NEEDED - BUT NOT REQUIRED INDIFFERENT TOTAL 3-meal restaurant Cafe/Grab and Go Rooftop/Terrace Bar Indoor Connection to Conference Space Hospitality Suite Fitness Business Center/Services Pool Wellness/Spa Other Ames Hotel and Conference Center Survey - Discover Ames 20 / 33 Q14 For HOTEL GUESTROOM TYPES, please indicate a level of need for you and/or your groups. Answered: 140 Skipped: 12 0%10%20%30%40%50%60%70%80%90%100% Highly Nee …Somewhat …Indifferent Standard King Rooms Double Queen Rooms Connecting Rooms Suites Ames Hotel and Conference Center Survey - Discover Ames 21 / 33 75.74% 103 16.18% 22 8.09% 11 136 68.61% 94 26.28% 36 5.11% 7 137 6.90% 8 33.62% 39 59.48% 69 116 20.33% 25 36.59% 45 43.09% 53 123 HIGHLY NEEDED - REQUIRED SOMEWHAT NEEDED - BUT NOT REQUIRED INDIFFERENT TOTAL Standard King Rooms Double Queen Rooms Connecting Rooms Suites Ames Hotel and Conference Center Survey - Discover Ames 22 / 33 Q15 For SITE ATTRIBUTES, please indicate a level of need for you and/or your groups. Answered: 146 Skipped: 6 On Campus at Iowa State University Walkable to retail shops and restaurants Proximate to the Interstate/H... Proximate to Area entertainment Load In Dock/Staging Consideration of distance traveled for... Ames Hotel and Conference Center Survey - Discover Ames 23 / 33 22.79% 31 31.62% 43 45.59% 62 136 38.30% 54 41.84% 59 19.86% 28 141 19.72% 28 54.23% 77 26.06% 37 142 20.44% 28 48.18% 66 31.39% 43 137 30.37% 41 28.89% 39 40.74% 55 135 31.16% 43 45.65% 63 23.19% 32 138 14.71% 20 33.09% 45 52.21% 71 136 0%10%20%30%40%50%60%70%80%90%100% Highly Nee …Somewhat …Indifferent Proximity to the Airport HIGHLY NEEDED - REQUIRED SOMEWHAT NEEDED - BUT NOT REQUIRED INDIFFERENT TOTAL On Campus at Iowa State University Walkable to retail shops and restaurants Proximate to the Interstate/Highway Proximate to Area entertainment Load In Dock/Staging Consideration of distance traveled for attendees Proximity to the Airport Ames Hotel and Conference Center Survey - Discover Ames 24 / 33 Q16 How many days do/does your event typically last? (Check all that apply) Answered: 147 Skipped: 5 Gala/Banquet Events Social Event/Wedding Meeting/Trainin g Trade/Consumer Show Convention/Conf Ames Hotel and Conference Center Survey - Discover Ames 25 / 33 75.38% 49 23.08% 15 1.54% 1 0.00% 0 65 84.00% 42 14.00% 7 2.00% 1 0.00% 0 50 50.45% 56 43.24% 48 4.50% 5 1.80% 2 111 20.83% 10 66.67% 32 10.42% 5 2.08% 1 48 10.81% 12 68.47% 76 15.32% 17 5.41% 6 111 32.26% 10 45.16% 14 9.68% 3 12.90% 4 31 78.13% 25 18.75% 6 3.13% 1 0.00% 0 32 0%10%20%30%40%50%60%70%80%90%100% 1 Day 2 - 3 Days 3 - 4 days 5+ days / erence Sports Events Other Events 1 DAY 2 - 3 DAYS 3 - 4 DAYS 5+ DAYS TOTAL Gala/Banquet Events Social Event/Wedding Meeting/Training Trade/Consumer Show Convention/Conference Sports Events Other Events Ames Hotel and Conference Center Survey - Discover Ames 26 / 33 100.00%127 77.95%99 54.33%69 33.86%43 19.69%25 10.24%13 Q17 Where do you normally hold your meetings/events? In order of preference. Answered: 127 Skipped: 25 ANSWER CHOICES RESPONSES Location 1 Location 2 Location 3 Location 4 Location 5 Other Ames Hotel and Conference Center Survey - Discover Ames 27 / 33 80.30%106 19.70%26 Q18 Now that a new full-service, Conference Center and Hotel will be opening in Ames at the Linc, would you prefer relocating your events there? Answered: 132 Skipped: 20 TOTAL 132 0%10%20%30%40%50%60%70%80%90%100% Yes No ANSWER CHOICES RESPONSES Yes No Ames Hotel and Conference Center Survey - Discover Ames 28 / 33 Q19 If you answered yes to the previous question, what type and size of events would you consider relocating to Ames if they could be accommodated? (Check all that apply for each category.) Answered: 116 Skipped: 36 Gala/Banquet Events Social Event/Wedding Ames Hotel and Conference Center Survey - Discover Ames 29 / 33 Meeting/Trainin g Trade/Consumer Show Convention/Conf erence Ames Hotel and Conference Center Survey - Discover Ames 30 / 33 0%10%20%30%40%50%60%70%80%90%100% Less than 50 50-100 100-200 200-400 400-600 600-800 800-1,000 1,000 + Sports Events Other Events Ames Hotel and Conference Center Survey - Discover Ames 31 / 33 17.78% 8 13.33% 6 24.44% 11 17.78% 8 17.78% 8 4.44% 2 4.44% 2 0.00% 0 45 27.59% 8 17.24% 5 34.48% 10 17.24% 5 3.45% 1 0.00% 0 0.00% 0 0.00% 0 29 35.90% 28 32.05% 25 25.64% 20 5.13% 4 0.00% 0 0.00% 0 1.28% 1 0.00% 0 78 6.06% 2 9.09% 3 12.12% 4 27.27% 9 18.18% 6 9.09% 3 6.06% 2 12.12% 4 33 4.76% 4 5.95% 5 22.62% 19 27.38% 23 22.62% 19 5.95% 5 2.38% 2 8.33% 7 84 40.00% 8 5.00% 1 5.00% 1 0.00% 0 10.00% 2 10.00% 2 0.00% 0 30.00% 6 20 42.11% 8 31.58% 6 5.26% 1 10.53% 2 5.26% 1 0.00% 0 0.00% 0 5.26% 1 19 LESS THAN 50 50-100 100-200 200-400 400-600 600-800 800-1,000 1,000 +TOTAL Gala/Banquet Events Social Event/Wedding Meeting/Training Trade/Consumer Show Convention/Conference Sports Events Other Events Ames Hotel and Conference Center Survey - Discover Ames 32 / 33 40.30%54 59.70%80 Q20 Would it be worth paying more to have an event located in Downtown Ames within a new full-service, branded, upscale Hotel and Conference Center in a mixed-used development? Answered: 134 Skipped: 18 TOTAL 134 0%10%20%30%40%50%60%70%80%90%100% Yes No ANSWER CHOICES RESPONSES Yes No Ames Hotel and Conference Center Survey - Discover Ames 33 / 33 Q21 Please provide and comments or suggestions related to a proposed hotel and conference center. Answered: 69 Skipped: 83 Addenda © 2025 CBRE, Inc. Survey Responses – Ames Regional Economic Alliance Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 1 / 40 Q1 What is the name of your company/organization? (Optional) Answered: 11 Skipped: 4 Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 2 / 40 Q2 Which term best describes you Company/Organization? Answered: 15 Skipped: 0 0%10%20%30%40%50%60%70%80%90%100% Visitor Attraction Service industry - Retail,... Business/Corpor ation Medical Related Higher Education/Unive rsity Related Military/Govern ment Club/Community Manufacturing/I ndustrial Logistics/Distr ibution Financial Agriculture Energy/Oil, gas, etc. Other (please specify) Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 3 / 40 0.00%0 0.00%0 20.00%3 6.67%1 13.33%2 13.33%2 0.00%0 13.33%2 0.00%0 13.33%2 6.67%1 0.00%0 13.33%2 TOTAL 15 ANSWER CHOICES RESPONSES Visitor Attraction Service industry - Retail, Restaurant, Hotel Business/Corporation Medical Related Higher Education/University Related Military/Government Club/Community Manufacturing/Industrial Logistics/Distribution Financial Agriculture Energy/Oil, gas, etc. Other (please specify) Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 4 / 40 Q3 Roughly how many times PER YEAR do you host the following event types. (Check all that apply for each category.) Answered: 15 Skipped: 0 Gala/Banquet Events Social Event/Wedding Meeting/Trainin g Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 5 / 40 Trade/Consumer Show Convention/Conf erence Sports Events Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 6 / 40 46.15% 6 53.85% 7 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 13 66.67% 6 33.33% 3 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 9 13.33% 2 46.67% 7 20.00% 3 0.00% 0 6.67% 1 0.00% 0 13.33% 2 15 80.00% 8 20.00% 2 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 10 63.64% 7 18.18% 2 18.18% 2 0.00% 0 0.00% 0 0.00% 0 0.00% 0 11 90.91% 10 9.09% 1 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 11 63.64% 7 36.36% 4 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 11 0%10%20%30%40%50%60%70%80%90%100% 0 1-3 4-7 7-10 10-15 15-20 20+ Other Events 0 1-3 4-7 7-10 10-15 15-20 20+TOTAL Gala/Banquet Events Social Event/Wedding Meeting/Training Trade/Consumer Show Convention/Conference Sports Events Other Events Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 7 / 40 88 1,150 13 Q4 What is the typical size of your Gala/Banquet Events? (adjust the slider) Answered: 13 Skipped: 2 Total Respondents: 13 0 10 20 30 40 50 60 70 80 90 100 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 8 / 40 58 700 12 Q5 What is the typical size of your Social/Wedding Events? (adjust the slider) Answered: 12 Skipped: 3 Total Respondents: 12 0 10 20 30 40 50 60 70 80 90 100 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 9 / 40 54 750 14 Q6 What is the typical size of your Meetings/Trainings? (adjust the slider) Answered: 14 Skipped: 1 Total Respondents: 14 0 10 20 30 40 50 60 70 80 90 100 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 10 / 40 6 50 8 Q7 What is the typical size of your Trade/Consumer Shows? (adjust the slider) Answered: 8 Skipped: 7 Total Respondents: 8 0 1 2 3 4 5 6 7 8 9 10 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 11 / 40 165 1,650 10 Q8 What is the typical size of your Conference/Conventions? (adjust the slider) Answered: 10 Skipped: 5 Total Respondents: 10 0 20 40 60 80 100 120 140 160 180 200 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 12 / 40 28 250 9 Q9 What is the typical size of your Sports Events? (adjust the slider) Answered: 9 Skipped: 6 Total Respondents: 9 0 10 20 30 40 50 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 13 / 40 50 500 10 Q10 What is the typical size of your Other Events? (adjust the slider) Answered: 10 Skipped: 5 Total Respondents: 10 0 10 20 30 40 50 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 14 / 40 3 24 9 Q11 How many break out rooms would you require for medium to large events? (Check all that apply for each category.) Answered: 9 Skipped: 6 Total Respondents: 9 0 1 2 3 4 5 6 7 8 9 10 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 15 / 40 Q12 What is the typical number of hotel rooms you would need for these events?(Check all that apply for each category) Answered: 15 Skipped: 0 Gala/Banquet Events Social Event/Wedding Meeting/Trainin g Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 16 / 40 Trade/Consumer Show Convention/Conf erence Sports Events Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 17 / 40 63.64% 7 27.27% 3 0.00% 0 0.00% 0 9.09% 1 0.00% 0 0.00% 0 11 60.00% 6 30.00% 3 0.00% 0 0.00% 0 0.00% 0 0.00% 0 10.00% 1 10 46.67% 7 40.00% 6 6.67% 1 0.00% 0 0.00% 0 0.00% 0 6.67% 1 15 88.89% 8 11.11% 1 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 9 60.00% 6 20.00% 2 10.00% 1 0.00% 0 10.00% 1 0.00% 0 0.00% 0 10 100.00% 10 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 10 75.00% 9 16.67% 2 0.00% 0 8.33% 1 0.00% 0 0.00% 0 0.00% 0 12 0%10%20%30%40%50%60%70%80%90%100% None <25 Rooms 25-50 50-100 100-200 200-300 >300 Rooms Other Events NONE <25 ROOMS 25-50 50-100 100-200 200-300 >300 ROOMS TOTAL Gala/Banquet Events Social Event/Wedding Meeting/Training Trade/Consumer Show Convention/Conference Sports Events Other Events Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 18 / 40 157 2,195 14 Q13 What average hotel rate are you currently quoted for most of your events? (adjust the slider) Answered: 14 Skipped: 1 Total Respondents: 14 0 20 40 60 80 100 120 140 160 180 200 ANSWER CHOICES AVERAGE NUMBER TOTAL NUMBER RESPONSES Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 19 / 40 Q14 For HOTEL FACILITY amenities, please indicate a level of need for you and/or your groups. Answered: 14 Skipped: 1 3-meal restaurant Cafe/Grab and Go Rooftop/Terrace Bar Indoor Connection to Conference... Hospitality Suite Fitness Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 20 / 40 0%10%20%30%40%50%60%70%80%90%100% Highly Nee …Somewhat …Indifferent Business Center/Services Pool Wellness/Spa Other Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 21 / 40 7.14% 1 50.00% 7 42.86% 6 14 46.15% 6 7.69% 1 46.15% 6 13 28.57% 4 50.00% 7 21.43% 3 14 30.77% 4 53.85% 7 15.38% 2 13 21.43% 3 28.57% 4 50.00% 7 14 21.43% 3 42.86% 6 35.71% 5 14 7.14% 1 64.29% 9 28.57% 4 14 7.14% 1 35.71% 5 57.14% 8 14 0.00% 0 35.71% 5 64.29% 9 14 0.00% 0 0.00% 0 100.00% 6 6 HIGHLY NEEDED - REQUIRED SOMEWHAT NEEDED - BUT NOT REQUIRED INDIFFERENT TOTAL 3-meal restaurant Cafe/Grab and Go Rooftop/Terrace Bar Indoor Connection to Conference Space Hospitality Suite Fitness Business Center/Services Pool Wellness/Spa Other Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 22 / 40 Q15 For HOTEL GUESTROOM TYPES, please indicate a level of need for you and/or your groups. Answered: 15 Skipped: 0 0%10%20%30%40%50%60%70%80%90%100% Highly Nee …Somewhat …Indifferent Standard King Rooms Double Queen Rooms Connecting Rooms Suites Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 23 / 40 69.23% 9 7.69% 1 23.08% 3 13 64.29% 9 14.29% 2 21.43% 3 14 8.33% 1 41.67% 5 50.00% 6 12 25.00% 3 33.33% 4 41.67% 5 12 HIGHLY NEEDED - REQUIRED SOMEWHAT NEEDED - BUT NOT REQUIRED INDIFFERENT TOTAL Standard King Rooms Double Queen Rooms Connecting Rooms Suites Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 24 / 40 Q16 For SITE ATTRIBUTES, please indicate a level of need for you and/or your groups. Answered: 15 Skipped: 0 On Campus at Iowa State University Walkable to retail shops and restaurants Proximate to the Interstate/H... Proximate to Area entertainment Load In Dock/Staging Consideration of distance traveled for... Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 25 / 40 13.33% 2 46.67% 7 40.00% 6 15 40.00% 6 46.67% 7 13.33% 2 15 0.00% 0 60.00% 9 40.00% 6 15 40.00% 6 33.33% 5 26.67% 4 15 21.43% 3 28.57% 4 50.00% 7 14 6.67% 1 53.33% 8 40.00% 6 15 7.14% 1 50.00% 7 42.86% 6 14 0%10%20%30%40%50%60%70%80%90%100% Highly Nee …Somewhat …Indifferent Proximity to the Airport HIGHLY NEEDED - REQUIRED SOMEWHAT NEEDED - BUT NOT REQUIRED INDIFFERENT TOTAL On Campus at Iowa State University Walkable to retail shops and restaurants Proximate to the Interstate/Highway Proximate to Area entertainment Load In Dock/Staging Consideration of distance traveled for attendees Proximity to the Airport Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 26 / 40 Q17 How many days do/does your event typically last? (Check all that apply) Answered: 14 Skipped: 1 Gala/Banquet Events Social Event/Wedding Meeting/Trainin g Trade/Consumer Show Convention/Conf Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 27 / 40 100.00% 7 0.00% 0 0.00% 0 0.00% 0 7 87.50% 7 12.50% 1 0.00% 0 0.00% 0 8 30.77% 4 69.23% 9 0.00% 0 0.00% 0 13 0.00% 0 100.00% 3 0.00% 0 0.00% 0 3 25.00% 2 75.00% 6 0.00% 0 0.00% 0 8 33.33% 1 66.67% 2 0.00% 0 0.00% 0 3 100.00% 5 0.00% 0 0.00% 0 0.00% 0 5 0%10%20%30%40%50%60%70%80%90%100% 1 Day 2 - 3 Days 3 - 4 days 5+ days / erence Sports Events Other Events 1 DAY 2 - 3 DAYS 3 - 4 DAYS 5+ DAYS TOTAL Gala/Banquet Events Social Event/Wedding Meeting/Training Trade/Consumer Show Convention/Conference Sports Events Other Events Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 28 / 40 100.00%10 80.00%8 50.00%5 40.00%4 20.00%2 0.00%0 Q18 Where do you normally hold your meetings/events? In order of preference. Answered: 10 Skipped: 5 ANSWER CHOICES RESPONSES Location 1 Location 2 Location 3 Location 4 Location 5 Other Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 29 / 40 78.57%11 21.43%3 Q19 Now that a new full-service, Conference Center and Hotel will be opening in Ames at the Linc, would you prefer relocating your events there? Answered: 14 Skipped: 1 TOTAL 14 0%10%20%30%40%50%60%70%80%90%100% Yes No ANSWER CHOICES RESPONSES Yes No Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 30 / 40 Q20 If you answered yes to the previous question, what type and size of events would you consider relocating to Ames if they could be accommodated? (Check all that apply for each category.) Answered: 9 Skipped: 6 Gala/Banquet Events Social Event/Wedding Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 31 / 40 Meeting/Trainin g Trade/Consumer Show Convention/Conf erence Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 32 / 40 0%10%20%30%40%50%60%70%80%90%100% Less than 50 50-100 100-200 200-400 400-600 600-800 800-1,000 1,000 + Sports Events Other Events Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 33 / 40 20.00% 1 0.00% 0 60.00% 3 20.00% 1 0.00% 0 0.00% 0 0.00% 0 0.00% 0 5 16.67% 1 16.67% 1 33.33% 2 33.33% 2 0.00% 0 0.00% 0 0.00% 0 0.00% 0 6 25.00% 2 37.50% 3 12.50% 1 12.50% 1 12.50% 1 0.00% 0 0.00% 0 0.00% 0 8 0.00% 0 0.00% 0 0.00% 0 0.00% 0 100.00% 1 0.00% 0 0.00% 0 0.00% 0 1 0.00% 0 0.00% 0 25.00% 1 25.00% 1 25.00% 1 0.00% 0 0.00% 0 25.00% 1 4 50.00% 1 0.00% 0 50.00% 1 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 2 50.00% 1 50.00% 1 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 2 LESS THAN 50 50-100 100-200 200-400 400-600 600-800 800-1,000 1,000 +TOTAL Gala/Banquet Events Social Event/Wedding Meeting/Training Trade/Consumer Show Convention/Conference Sports Events Other Events Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 34 / 40 42.86%6 57.14%8 Q21 Would it be worth paying more to have an event located in Downtown Ames within a new full-service, branded, upscale Hotel and Conference Center in a mixed-used development? Answered: 14 Skipped: 1 TOTAL 14 0%10%20%30%40%50%60%70%80%90%100% Yes No ANSWER CHOICES RESPONSES Yes No Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 35 / 40 46.67%7 53.33%8 Q22 Are you involved with any OTHER organizations/associations/clubs that could hold events there? Answered: 15 Skipped: 0 TOTAL 15 0%10%20%30%40%50%60%70%80%90%100% Yes No ANSWER CHOICES RESPONSES Yes No Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 36 / 40 Q23 If you answered yes to the previous question, what type and size of events for your OTHER organizations would you consider relocating to Ames if they could be accommodated? (Check all that apply for each category.) Answered: 6 Skipped: 9 Gala/Banquet Events Social Event/Wedding Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 37 / 40 Meeting/Trainin g Trade/Consumer Show Convention/Conf erence Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 38 / 40 0%10%20%30%40%50%60%70%80%90%100% Less than 50 50-100 100-200 200-400 400-600 600-800 800-1,000 1,000 + Sports Events Other Events Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 39 / 40 0.00% 0 0.00% 0 33.33% 2 33.33% 2 16.67% 1 0.00% 0 16.67% 1 0.00% 0 6 0.00% 0 0.00% 0 66.67% 2 33.33% 1 0.00% 0 0.00% 0 0.00% 0 0.00% 0 3 20.00% 1 40.00% 2 40.00% 2 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 5 0.00% 0 0.00% 0 66.67% 2 0.00% 0 33.33% 1 0.00% 0 0.00% 0 0.00% 0 3 0.00% 0 0.00% 0 25.00% 1 0.00% 0 50.00% 2 0.00% 0 25.00% 1 0.00% 0 4 33.33% 1 0.00% 0 33.33% 1 0.00% 0 33.33% 1 0.00% 0 0.00% 0 0.00% 0 3 50.00% 1 0.00% 0 50.00% 1 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 2 LESS THAN 50 50-100 100-200 200-400 400-600 600-800 800-1,000 1,000 +TOTAL Gala/Banquet Events Social Event/Wedding Meeting/Training Trade/Consumer Show Convention/Conference Sports Events Other Events Ames Hotel and Conference Center Survey - Ames Regional Economic Alliance 40 / 40 Q24 Please provide and comments or suggestions related to a proposed hotel and conference center. Answered: 7 Skipped: 8 REGIONAL STRATEGIC, LTD. info@regionalstrategic.com | 515.802.0938 | 2543 E Leach Ave | Des Moines, Iowa 50320 www.regionalstrategic.com Brief comments regarding CBRE’s economic impact estimates for the proposed hotel and conference center included in the Ames LINC mixed-use development Prepared for Discover Ames By Mark Imerman Regional Strategic, Ltd. December 31, 2025 Revised: January 3, 2026 1 Economic Impacts of the Ames Event Center and Hotel This note is a brief comment and clarification of the economic impact estimates included in the CBRE report, “Feasibility Study: Proposed Ames Conference Center and Adjoining Hotel at the LINC.” The CBRE report has a series of economic impact estimates for the Ames Event Center/LINC project beginning on page 96. The two main points of this note are 1. The CBRE estimates only encompass the hotel and event center envisioned at the time. They do not include or make provision for the residential, retail, and office space included in the current project. As a result, the CBRE estimates only cover construction, occupancy, and visitor impacts for a $63.4 million hospitality project. The current proposal includes residential, retail, and office provision as well for a total of nearly $280 million. As such, CBRE estimates do not in any way reflect the economic impacts the entire project and its occupancy will generate in the community. 2. CBRE consistently made overly conservative assumptions in estimating their impacts. Even in the context of a reduced project vision at the time, CBRE underestimated the potential impacts. An additional point, which is of less importance, is that there is some editorial confusion throughout the CBRE presentation concerning whether earnings are a component of output or an addition to output. Earnings are a component of output. As a result, the presentation consistently double-counts earnings in a very visible way. Despite this error in presentation, however, the calculations and estimations appear to have been conscientiously and carefully put together. Construction Impacts The figure below shows the CBRE estimates of construction impact for the Ames Event Center/LINC project. It shows a one-time boost to output of $46.3 million. Of this, $11.4 million will be paid out to 205 employees as labor earnings. Using Woods & Poole Economics estimates for household incomes and household retail sales for the area, we can assume that $4.5 million of these labor earnings will be expended on area retail sales. Assuming 85% of these sales are taxable, this will generate a one-time boost in local option sales tax revenue of over $38,000 from direct labor wages alone. Due to the way the estimates were generated, we cannot draw hard estimates of one-time business earnings (profits, rents, and interest) that construction will generate. This is important, because it 2 builds the potential investment base for the project and builds Ames’ commercial base, which is a major goal of the Ames Event Center/LINC project. A general rule of thumb, however, is that business earnings will be approximately 85% of labor earnings. That would be $9.7 million. Most of the remaining $25.2 million in regional output will be consumed by inputs brought into the area from other regions. It should be noted that these estimates are based on only half of construction contracts and expenditures being made within the area. The model used for these estimates is linear. Any percentage change to the local spend estimate can also be applied to all the estimated impacts. Finally, in addition to the one-time business, income, and tax benefits generated by construction, CBRE estimates the resulting structure will generate an average of $733,000 per year in property tax revenues for Story County and Ames over its first ten years. Operational Impacts There is some confusion in the CBRE estimates of the operational impacts of the Ames Event Center/LINC facility on the local area. CBRE utilized its database of comparable facilities to estimate a facility payroll. Then it estimated employee disposable income and divided that disposable income across expenditure categories to generate an impact estimate. In doing so, CBRE missed impacts generated from nonpayroll facility expenditures and invariably added noise to the payroll estimates. The estimates presented here follow a much simpler framework. We took CBRE’s estimate of stabilized annual operating revenues for the hotel and the conference center from page 100 in the CBRE report. Then we multiplied those stabilized revenues by the appropriate RIMS II coefficients from page 97 of the CBRE report. We selected coefficients based on CBRE’s selections on page 100. Figure 1: CBRE Estimates of Construction Impacts Hotel Conference Center Combined Total Construction Cost 46,664,000 16,736,000 63,400,000 50% Ames' Spend Estimate 23,332,000 8,368,000 31,700,000 Regional Output 34,104,384 12,231,506 46,335,890 Regional Earnings 8,401,853 3,013,317 11,415,170 Regional Employment 151 54 205 3 We start with a stabilized operating revenue of $16.8 million. This generates $25.4 million in annual regional output. $6.7 million of this output is paid out 194 workers as payroll. Using Woods & Poole Economics estimates for household incomes and household retail sales for the area, we can assume that $2.65 million of these labor earnings will be expended on area retail sales. Assuming 85% of these sales are taxable, this will generate an annual boost in local option sales tax revenue of $22,500 from labor wages per year at current Story County retail capture rates. Over ten years at stabilized operating revenue, the facility will bring in $167.9 million ($10.7 million less than the CBRE starting point). It will generate $253.7 million in regional output and $67.0 million in regional payroll. As stated above, the information provided by CBRE precludes a hard estimate of the regional business earnings (profits, rents, and interest) generated. Using the rule of thumb that business earnings will be 85% of payrolls, we estimate a ballpark regional business earnings estimate of $5.7 million annually. Most of the remaining $12.9 million in regional output will be consumed by inputs brought into the area from other regions. Visitor Impacts For visitor impacts, CBRE estimated occupancy for the proposed hotel and spillover visitors accommodated in existing area hotels. Then it estimated visitor spend of $260 per day in Story County using Discover Ames survey information on in-county spend and other industry sources. Then it discounted these totals for estimated out-of-area spend. This should not have been done. The base survey data from Discover Ames is county based, and the entire county sits within the impact area covered by the RIMS II coefficients that CBRE utilized. Refiguring without the discounts generates these results. Figure 2: Recalculating CBRE’s Operational Impact Estimates Stabilized Revenue Regional Output Regional Earnings Regional Jobs Hotel 13,350,224 19,949,240 5,174,547 142 Conference Center 3,436,809 5,420,879 1,529,380 52 Total 16,787,033 25,370,119 6,703,927 194 4 We start with total annual area visitor spend (net of the subject facility) of $15.9 million. This generates $24.3 million in annual regional output. $6.0 million of this output is paid out 223 workers as payroll. Using Woods & Poole Economics estimates for household incomes and household retail sales for the area, we can assume that $2.4 million of these labor earnings will be expended on area retail sales. Assuming 85% of these sales are taxable, this will generate an annual boost in local option sales tax revenue of $20,200 from labor wages per year at current Story County retail capture rates. As stated above, the information provided by CBRE precludes a hard estimate of the regional business earnings (profits, rents, and interest) generated. Using the rule of thumb that business earnings will be 85% of payrolls, we estimate a ballpark regional business earnings estimate of $5.1 million annually. Most of the remaining $13.1 million in regional output will be consumed by inputs brought into the area from other regions. Impact Summary The table below summarizes the impact sections above. The total line at the bottom excludes construction impacts (the first line) to represent only the continuing annual impacts that might be expected from the Ames Event Center/LINC development. Across the Ames Metropolitan Area, the completed facility should generate $49.6 million in output, $12.7 million in labor income spread across 417 jobs, and approximately $10.8 million in business earnings annually. Labor income alone is estimated to drive $5 million in area retail sales annually and nearly 43,000 annually in local option revenue. Many of the expenses driving these impacts are also subject to sales and hotel/motel taxes. CBRE estimates the facility has the potential to generate an average of approximately $740,000 per year in occupancy taxes and $230,000 per year in local option sales taxes for Ames and Story County. CBRE also estimates the facility will generate an average of approximately $733,000 in property taxes per year. Figure 3: Revised CBRE Visitor Impact Estimations Visitor Spend Regional Output Regional Earnings Regional Jobs Transportation 5,686,618 8,718,154 2,112,579 104 Food & Beverage (Less subject capture) 1,662,008 2,621,485 739,594 25 Recreation 3,093,657 4,725,870 1,123,307 32 Retail 3,464,896 5,213,283 1,277,854 39 Lodging (Less subject capture) 2,015,000 3,011,015 781,014 21 Totals 15,922,179 24,289,807 6,034,347 223 5 Finally, where impact numbers presented here differ from CBRE estimates, the difference is due to one of three things: 1. The editorial confusion that resulted in adding labor earnings to output totals 2. Not including non-labor expenses in calculating operational impacts 3. Unnecessarily discounting locally-based visitor expenditure estimates for non-local expenditures Next Steps The calculations in this note clarify economic impact estimates made by CBRE with respect to only the hotel and event center at the proposed LINC mixed-use development in Ames, Iowa. In general, the CBRE estimates are conservative. They do not include construction, occupancy, and operation for the entire mixed-use development currently proposed, and they depend upon some overly conservative assumptions and calculations. Should additional economic impact estimates be required, Regional Strategic, Ltd. recommends building a full economic impact model to calculate both upstream and downstream impacts as well as to better capture local economic activity and business earnings. Figure 4: Ames Event Center/LINC Impact Summary Regional From Labor Earnings Output Labor Earnings Jobs Business Earnings Retail Sales Local Option Revenue Construction (One time) 46,335,890 11,415,170 205 9,702,895 4,507,691 38,315 Operations (Ongoing) 25,370,119 6,703,927 194 5,698,338 2,647,287 22,502 Visitor Spend (Ongoing) 24,289,807 6,034,347 223 5,129,195 2,382,879 20,254 Ongoing Total 49,659,925 12,738,273 417 10,827,532 5,030,166 42,756 REGIONAL STRATEGIC, LTD. info@regionalstrategic.com | 515.802.0938 | 2543 E Leach Ave | Des Moines, Iowa 50320 www.regionalstrategic.com The Ames community position with respect to the Ames Event Center/LINC proposal Prepared for Discover Ames By Mark Imerman, Regional Strategic, Ltd. Originally Submitted: November 8. 2025 Revised: January 3, 2026 Executive Summary Ames and Story County significantly lag their metropolitan peers in retail sales per capita . • Ames lags its peer metropolitan cities by $4,468 per capita in retail sales. • Story County lags its metropolitan county peers by $5,249 per capita in retail sales. Ankeny, Polk County, Dallas County, and Des Moines all outperform Ames and Story County in per capita retail sales. Retail sales generate local option sales revenue. This is increasingly important as the Iowa legislature moves to reduce residential property taxation and increase local reliance on sales tax revenue. Retail is a quality-of-life factor that influences where people choose to live. Between 1990 and 2020 the balance of residence for workers commuting between Polk and Story Counties shifted towards Polk County by 2,836 commuters • That is an average of nearly 95 commuters per year • That may translate into nearly 7,000 residents lost to Story County over the past 33 years Story County has had relatively flat population growth over the past 10 years. It is the slowest growing of the three most populous counties in Central Iowa The shortfall in retail trade is concerning because Ames attracts a high volume of “Tourists.” Students who do not claim Ames as a Census residence and visitors to university events should increase Ames’ retail trade per capita even if their expenditures are below the average. Ames builds its hotels at the perimeters of the community rather than integrating visitors into the Ames commercial sector. This accelerates the speed at which visitors disengage from Ames. The university is proposing integrating visitors with Cy Town, but the land values, investment returns, and commercial advantages will accrue towards the university rather than towards Ames. Ames long range development plan does not explicitly speak to the needs of a retail and social destination within Ames similar to what the university is proposing for Cy Town. Ames needs such a core. The Ames Event Center/LINC project will develop a hotel, conference center and residential and commercial space linked directly to and integrated with downtown Ames, bringing much -needed visitor commerce to a revitalized downtown area. Ames is increasingly reliant on its residential tax base to fund city services. At the same time, the portion of residential tax valuations that are taxable is falling and the state legislature is pushing to lower residential property taxation. The Ames Event Center/LINC initiative is about whether Ames and Story County want to remain on their current path towards the future or if they want to improve their trajectory. Table of Contents Introduction ................................................................................................................................. 1 An Unmet Opportunity in Retail Trade ........................................................................................... 1 Why Does Retail Trade Matter? ..................................................................................................... 4 The Retail Shortfall Quandary ....................................................................................................... 8 Integrating Visitors ....................................................................................................................... 9 Cy Town And Campus Town .......................................................................................................... 9 There Is No Official Plan to Change ............................................................................................. 11 A Quick Look at Property Tax ....................................................................................................... 13 Summing Up .............................................................................................................................. 14 Conclusion ................................................................................................................................ 14 1 Introduction The findings in this report are based on the review of considerable material on the market situation for a hotel, conference center, and integrated retail pertaining to the Ames Event Center/LINC project. Included are reports by CBRE and Danter & Associates. This report assumes the experts in the venue development field have provided accurate background information. While these reports consider developments of various sizes and configurations, evaluating these options is not a function of this report. This report looks at community characteristics in Ames that speak to the need for drawing visitors in from the periphery to engage with the city. As such, it provides background regarding the need to develop a residential, cultural, and hospitality core in Ames, regardless of the particular configuration that core acquires. Ames is trailing its Iowa peers in both economic and population growth, as evidenced by multiple metrics and particularly by retail trade figures. Despite the presence of a substantial “tourist” population through Iowa State University, Ames faces a notable retail deficit. The city requires a focused strategy to evolve into a destination that integrates visitors into its commercial ecosystem. Establishing attractive hotel and meeting venues within a vibrant residential and commercial district could serve as an effective starting point. Current city planning efforts do not appear to prioritize this approach, instead emphasizing peripheral residential expansion and drive-by shopping corridors, which are not proving effective in retaining visitor engagement. As Ames becomes increasingly dependent on a residential tax base amidst ongoing state property tax relief initiatives, the urgency to adopt a commercial strategy and capture untapped revenue opportunities will only grow. An Unmet Opportunity in Retail Trade In any discussion of community and regional development, retail trade takes a prominent role. It is one of two drivers of population mobility. People move to shop or to work, or both. Where people choose to live depends upon the priorities they put on their potential commutes to shop or to work. Where people spend their money dictates regional commercial growth. Retail trade statistics illuminate residential priorities and commercial potential. Ames is the core city of the Ames Metropolitan Statistical Area. Surrounding Story County makes up the core county of the area. Local reports from Iowa State University’s Retail Trade Analysis 2 program1 provide statistics on city and county retail trade in the context of comparable cohorts of communities. They show that Ames and Story County are not meeting their potential with respect to their metropolitan peers. In 2024, Ames reported per capita retail sales of $18,003. While this was greater than the Iowa per capita average of $15,599, Ames is not an Iowa average community. Ames is a city of 10,000 or more residents in a Metropolitan Statistical Area. Per capita sales for that cohort of communities averages $22,471. Ames’ $4,468 per capita shortfall amounts to a total Ames business community trade shortfall of $293.5 million. That trade shortfall results in a loss of nearly $3 million in local option sales tax revenue. People are not coming to Ames to shop. That is depriving the Ames commercial community of the ability to adequately invest. That is depriving the city of Ames of substantial and much needed revenue. 2024 was not an aberration. Figure 1 shows Ames’ position relative to the core of its cohort over the past ten years. The boxes show the range of cohort participants between the 25th and 75th percentiles. Ames has consistently resided in the lower portion of their metropolitan cohort. Figure 2 shows Ames’ position relative to other comparable communities within the Ames and Des Moines metropolitan areas. While there are additional cohort communities within the two metros that are not included, they are peripheral communities in the Des Moines Metropolitan Area. Ames is a core metropolitan community. Within this cohort, Ames does not compare well. Beyond the metropolitan core, Ames falls short of the sales per capita average of all Iowa cities of 10,000 people whether they are metropolitan or not. Ames falls short of the sales per capita 1 https://indicators.extension.iastate.edu/Indicators/Retail/ Figure 1: Expected and Actual Sales Per Capita for Ames, Iowa (Figure 6 of the Ames Retail Trade Report from Iowa State University) 3 average for nonmetropolitan communities with populations between 2,500 and 9,999 by an average of $1,769 per capita. This inability to attract commerce is self-perpetuating. It deprives the local commercial sector the resources needed to invest in improvements or even steady-state maintenance. It denies the city of Ames resources to maintain and improve the services needed to become a magnet for commercial activity. Ames’ commercial drawing capacity also hurts Story County. As the core community in a metropolitan statistical area, Ames is expected to draw in or accumulate the retail sales leakage coming from the rural communities in the area. Ames is not accomplishing this. This failure is a revenue problem for the county as a whole. This failure also invisibly increases the cost of living for every rural resident of Story County who finds it necessary to travel beyond Ames to fulfill their needs. In 2024, Story County had per capita retail sales of $13,770 as compared to a statewide average of $15,599. Like Ames, Story County is the core portion of a metropolitan area. The metropolitan core county average per capita retail sales in 2024 was $19,019. Story County’s retail sales deficit with respect to its peers was $5,249 per capita – nearly $540 million. If Ames drew commerce like an average metropolitan city, it would attract nearly $300 million of this. The trade would stay within Story County. The revenue generated would accrue to Story County and its communities. Figure 2: Central Iowa Metro City Per Capita Retail Sales Data from Iowa State University Retail Trade Analysis Project $22,471 $33,627 $18,003 $19,643 $24,506 $31,512 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 Metro Cohort Average Altoona Ames Ankeny Des Moines West Des Moines 2024 Metro City Per Capita Retail Sales 4 It could be even better. Ames is the only core community of the Ames Metropolitan Statistical Area . As such, it should be capable of drawing in more retail sales than its cohort’s average. If Ames were in a position to draw at the average rate of the four Polk County communities in Figure 2, it would draw retail sales per capita of $25,408. In that case, Story County’s overall leakage would be less than $45 million. The difference to Ames and Story County would be nearly $5 million in local option sales tax revenue. Figure 3 shows how Story County performed against its peer group over the past ten years. The graphic, which was lifted directly from the Story County Retail Trade Report compiled by Iowa State University Extension, shows the expected core range of per capita sales in Iowa’s metropolitan core counties. It removes the outliers, the top 25% of counties and the bottom 25% of counties. There is no doubt that Story County is in that lower 25 percent. Figure 4 shows Story County’s 2024 retail trade performance in comparison to Polk and Dallas counties, the other two core metropolitan counties in Central Iowa. Story County significantly underperforms both. As the northern gateway to the largest metropolitan area in the state, Ames ought to capture a larger portion of the commerce that originates in and passes through Story County. Why Does Retail Trade Matter? The ability to draw in and maintain retail trade is the ability to draw in and retain population. As stated above, ordinary people move towards one of two things: 1. Where they work 2. Where they shop Figure 3: Expected and Actual Sales Per Capita for Story County (Figure 6 of the Story County Retail Trade Report from Iowa State University) 5 Where commutes to work are everyday occurrences and budgets for recreation and dining out are limited, this favors place of work. As people have and deploy more disposable income and where work schedules are flexible, this decision moves towards shopping and recreation. This may be affecting Story County. Within the two conjoined metropolitan areas in Ames immediate area (Des Moines and Ames), there are eight counties. Figure 5 shows population sizes and growth for these counties from 1990 to 2023. Story County’s population growth since 1990 (33%) only bests Guthrie (-2%), Boone (6%), and Jasper (9%). Story County’s population growth falls behind Dallas, Polk, Warren, and Madison counties. Dallas County in the Des Moines Metropolitan Area has seen phenomenal population growth of 271% since 1990. Figure 4: Central Iowa Metro County Per Capita Retail Sales Data from Iowa State University Retail Trade Analysis Project $19,019 $16,771 $22,492 $13,770 $0 $5,000 $10,000 $15,000 $20,000 $25,000 Metro Cohort Average Dallas Polk Story 2024 Metro County Per Capita Retail Sales Figure 5: County-level Population Growth in Des Moines and Ames Metropolitan Statistical Areas County 1990 2000 2010 2020 2023 Percent Change Boone 25,200 26,251 26,280 26,698 26,590 6% Dallas 29,904 41,446 66,838 100,536 111,092 271% Guthrie 10,941 11,334 10,939 10,612 10,722 -2% Jasper 34,829 37,252 36,826 37,810 37,919 9% Madison 12,516 14,049 15,739 16,629 16,971 36% Polk 328,531 375,627 432,327 493,022 505,255 54% Story 74,382 80,152 89,673 98,649 98,566 33% Warren 36,170 40,787 46,349 52,591 55,205 53% Data from U.S. Bureau of Economic Analysis 6 Ignoring the outliers at the bottom (Guthrie, Boone, and Jasper) and the outlier at the top (Dallas), Figure 6 shows cumulative percent population growth for Polk, Warren, Story, and Madison counties in the two metro areas from 1990 to 2023. Among the three most populous counties in the two metropolitan areas (Polk, Dallas, and Story), Story County is the only one approaching steady- state. This reflects personal choices regarding where one lives in relation to where one works, where one recreates, and where one shops. Long term trends in these relationships can be illustrated with Journey to Work (commuter) data from the U.S. Census. In 1990, a commuter from Ames to Des Moines was part of a cohort of 3,085 people who commuted from Story County to Polk County every day. Only 1,086 people commuted in the opposite direction. It was clear to everyone on Interstate 35 that the commute towards Story County was a less stressful drive than the commute towards Polk County. By 2016 the flow had changed. The numbers of commuters in both directions had grown. The dominant destination had changed, however. From 2016 to 2020 Census data shows 5,061 people commuted daily from Story to Polk County. Over 800 more (5,898) people commuted from Polk to Story County. The dominant direction of flow reversed. It is now more pleasant to commute towards Polk County than to commute towards Story County.2 Anyone who has commuted between Ames and Des Moines over the past 30 years has seen the change. 2 If Ames had not pushed for its own metropolitan statistical area with the 2000 Census, it would have almost certainly been added to the Des Moines Metropolitan Statistical Area with the 2010 Census. That would not have changed cohorts here, however, as Am es would have almost certainly been designated a core county. Figure 6: Cumulative Percent Population Growth Data from U.S. Bureau of Economic Analysis 0% 10% 20% 30% 40% 50% 60% 1990 1995 2000 2005 2010 2015 2020 2023 County Population Growth Madison Polk Story Warren 7 A swing of commuter residence toward Polk County totaling 2,836 workers over 30 years is substantial – 95 workers per year – almost 2 workers per week. At 2.23 people per Story County household, this is equivalent to almost 211 people per year. From 1990 to 2023, this would total almost 7,000 people, 10 percent of Ames’ current population. Move those 7,000 people back from Polk County to Story County population, and the Story County line on the graph above moves up substantially. Half of the growth gap between Story and Polk counties disappears. Figure 7 updates Figure 6 with this commuter adjustment.3 At the Ames average retail sales per capita, this adjustment would generate over $125 million in retail sales per year. If Ames could get up to the metro cohort average, that would be over $156 million per year. If Ames could bring its current population up to metropolitan cohort average retail sales and capture its lost commuter swing, it would generate $450 million annually in additional retail sales. These sales would generate nearly $4 million annually in local option sales tax revenue. There would also be residential property tax from an additional 95 households per year and the indirect and induced impacts on employment and incomes that followed on the initial retail expenditures. 3 This representation is conservative in that the adjustment was calculated to maintain only the original difference in commuter residences. Calculations that maintained the original ratio of commuter residences would show a much greater effect. Figure 7: Cumulative Percentage Population Growth with Commuter Adjustment Regional Strategic, Ltd., Des Moines, Iowa 0% 10% 20% 30% 40% 50% 60% 1990 1995 2000 2005 2010 2015 2020 2023 County Population Growth with Commuter Adjustment Madison Polk Adj.Story Adj.Warren 8 It is not going to be easy to make up this shortfall. Reversing the trend is becoming more important, however. Iowa is increasingly driving cities to utilize local option sales taxes for revenue. As the state legislature continues to provide property tax relief to Iowa residents, the Ames/Story County retail trade shortfall will gain budget importance. The Retail Shortfall Quandary Ames’ retail shortfall is a quandary because Ames should not be dependent entirely upon its own population for its retail spend. For all intents and purposes, Ames should be seen as a destination location. It should be capturing the retail sales of its citizenry and its “Tourists.” It clearly is not. Iowa State University has fluctuated between 30,000 and 36,000 students in recent years. In previous work with Des Moines University, Regional Strategic, Ltd. helped them flesh out the concept of students as high-value tourists. They come for extended stays. They spend money largely extracted from other economies. They draw in substantial federal funds. Some, but not nearly all, of these are considered residents under the Census4. The rest are free contributors to Ames’ retail totals. They are “Tourists.” Assume, as is quite likely, at least 15,000 Iowa State University students are not classified by the Census as Ames residents. Assume these 15,000 students each spend $3,000 annually in the Ames economy. This amounts to $45 million annually and is responsible for $685 (nearly 4%) of Ames per capita retail sales. With respect to retail sales per capita, the “Tourists” add to the numerator (retail sales) but not the denominator (population). They should boost the city-wide average retail sales per capita even if their spending is lower than the Ames per capita average. In addition, the university attracts large crowds to sporting and other recreational events. Six times a year, football game attendance averages 60,000 people. Eighteen times a year,14,000 people attend men’s basketball contests and 10,000 people attend women’s basketball events. This amounts to 792,000 individual attendances. If one-quarter originates outside of Ames, that is 198,000 visits. If each visit generates $50 in Ames’ retail sales, these visitors add $151 to Ames’ per capita retail sales. These estimates do not count thousands of other visitors to Iowa State University (prospective students on recruitment and orientation visits, academic visits, visits by alumni and potential donors, etc.) Take them away, however, and Ames’ per capita retail sales drop by about 5% from totals that are already insufficient. 4 Given an enrollment of 30,000 (which is low), an Ames official population of 67,000, and Ames estimates that 29% of the population are between the ages of 20 and 24, it is probable that only 10,000 to 15,000 Iowa State University students are credited to Ames in the Census. This leaves approximately 15,000 to 20,000 students who are consuming within Ames as “Tourists.” 9 Integrating Visitors Much of Ames’ inventory of 2,027 hotel rooms (Danter & Associates) exists to accommodate the out-of-town visitor contingents attending Iowa State University events. Placement of this hotel room inventory appears to have been designed to implement immediate or first capture of visitors. Accommodations are placed to catch visitors before they settle into town. The corollary is that these accommodations also accelerate the movement of patrons out of town. 1. Get a room 2. Go to the game 3. Stay over night 4. Leave town Ames does not have a history of integrating its guests into its commercial community beyond changing the sheets as they leave. To the extent that visitors might grab a bite to eat away from the stadium, they are served by a myriad of franchise outlets on South Duff.5 While immediately satisfying, these quick interactions are not engaging enough to make them seek out more on their next visit. They are not sticky. They do not encourage additional visitor spend. Guests come to the university. They don’t come to Ames. They drive through or past Ames going to and from university venues. Ames is doing little to change that. Cy Town And Campus Town The university recognizes that it is the focal point, that guests come to university events rather than to Ames. The university recognizes that Ames could do more to elevate both the city and the university with respect to the visitor experience. Moreover, the university would like more engagement. If anything screams, “Ames Event Center/LINC is a necessity!” it is Cy Town. At Cy Town, the university plans to build a hotel, extended-stay accommodations, and a retail/entertainment district between Hilton Coliseum and Jack Trice Stadium. The university wants to extend visitor engagement to support its fundraising, recruiting, research park, and revenue base. The university recognizes that fan-base loitering is good for the university. Ames needs to recognize, encourage, and capture fan-base and visitor loitering as well. 5 Bringing these diners into the Ames downtown or neighborhoods would not necessarily hurt the franchise outlets they currently frequent. Holding visitors longer would increase the opportunities for these franchises to capture follow-up engagements. Holding visitors is likely good for the complete range of existing Ames businesses. 10 The difference between Ames Event Center/LINC and Cy Town is that the university will appropriate Cy Town’s surplus profits and property values rather than the Ames community and local investors. Cy Town’s tax-base benefits will be limited, which will limit Ames’ ability to achieve its desired environment. What difference does that make? Look at the historical campus town as it compares to today. A student coming to Iowa State University in the mid 1970’s experienced a campus town that was a world away from campus town as it is today. There were two drug stores in campus town. There were at least three independent bookstores, three record shops, a grocery store, a couple of places to buy shoes and boots, a screen-printing business, two theatres, a couple of audio shops, and at least two clothing stores. All of this was in less building space than campus town has now. There has been substantial new commercial construction in campus town over the past ten years, but almost none of it is retail space. In another ten years, it might be all non-retail commercial. There are multiple reasons for this. Some is just technological change. The university, however, has also been a significant actor. In the 1980’s and 1990’s, the residence department experienced a growing vacancy rate. In response, it started expanding its quasi-retail base and changing its food- service operations to attract more residents. On-campus convenience and sundry stores competed with campus town. A rapidly expanding university bookstore challenged campus town. Extended hour a la carte dining challenged campus town. Old businesses struggled and closed because they could not compete with university commercial enterprises. Figure 8: Lincoln Way Between Welch and Stanton in 1976 Courtesy of Ames History Museum 11 In the end, when the university started pushing alcohol out of dormitories, fraternities, sororities, and university events, campus town became a home to the commerce that the university did not want. That commerce has not sustained the environment over time. The irony is that now students don’t have any place to go. Here comes Cy Town! The university has never intended the consequences of these developments. It just looks at everything from the university’s perspective. The reality is that Cy Town will certainly be good for the university. It can also be good for Ames, but only if Ames balances it out. If anything screams, “Ames Event Center/LINC is a necessity!” it is Cy Town. If anything screams, “Do it NOW!” it is campus town. There Is No Official Plan to Change Take a look at Ames Plan 2040, which is basically a real estate development plan for the Ames periphery. Access and egress are priorities. Ingress is not. To a lay person, three things stand out. Figure 9: Looking South Down Welch from Lincoln Way 1976 Courtesy of Ames History Museum 12 First, there are pages and pages involving growth on the periphery. Figure 10 shows the areas of primary importance. These areas are peripheral growth. There are at least seven maps depicting different details pertaining to these areas, pages of text, extensions on how utilities and transportation corridors will be developed and maintained. There are two pages detailing the needs for neighborhood core areas to provide convenient commercial services to the residents of these developments. There are three pages on maintaining access to the rural fringe, assuring annexation potential, and rural-like housing developments. Second, commercial corridors are an issue. Visibility from Interstate 35 and Highway 30 are issues. Parking is an issue. Access is an issue. North Grand Mall is mentioned by name. South Duff and West Lincoln Way are certainly in mind. Of the three, South Duff is the only corridor easily accessible from outside the community. Being spread about town, none is a consistent in -town retail or social anchor. Third, downtown and campus town share a single page. There is nothing in the plan that argues against the Ames Event Center/LINC project, but there nothing that anticipates or promotes it. When it comes to downtown and campus town, there is almost nothing in the plan. Ames needs a core commercial and social destination. Ames Plan 2040 is focused on the spreading residential periphery. Figure 10: A development map from slide 36 of Ames Plan 2040 13 A Quick Look at Property Tax A major fiscal need for Ames is to expand and diversify its tax base. The importance of the retail trade discussion above is driven by this need. The state of Iowa is increasingly diminishing the role residential property can be expected to play in local government finance. At the same time, the state is pushing local governments to expand their reliance upon local option sales taxes. Ames faces a chronic local option sales tax deficiency. Ames Plan 2040’s preoccupation with peripheral development is a play that doubles down on residential property tax revenues by expanding the size of Ames. Given state policy, this is counterintuitive. It is also expensive, as stretching utility and transportation corridors over ever-increasing areas requires substantial infrastructure investments.6 Finally, it is limited. Ames will eventually hit surrounding communities as the also attempt to annex development-friendly real estate. Overall, Ames is increasingly reliant upon residential property for revenue at a time when residential property is increasingly the target of statewide tax relief efforts. In this environment, a strategy to increase Ames’ capture of retail sales leakages, commuter base losses, and their associated local option sales tax increments would make good sense from a revenue diversification standpoint. A review of the Ames Special Budget Reports for 2020/2021 and 2025/2026 shows 1. Ames has a relatively low levy ($10.09 per thousand total levy in the 2025/2026 report), both total and general, compared to the metropolitan comparison cities listed in both reports. 2. There was a slight share movement away from the county (1.21 percentage points) and DMACC (0.02 percentage points) and towards the city (0.77 percentage points) and the school districts (0.45 percentage points). There is not enough data to determine if this is ongoing and significant. 3. The percent of assessed valuation that is taxable fell significantly for residential property between January 1, 2019, and January 1, 2024 (from 55 to 47 percent) 4. Residential property, both assessed and taxable valuations, showed significant increases in share of total valuations between the two periods. 5. Commercial property and industrial property, both assessed and taxable valuations, had decreasing shares of total valuations between the two periods. Following up with a look at the Iowa Department of Management’s City Property Valuation files for AY2003-FY2005 and for AY2024-FY2026 shows a similar pattern on a longer timeframe. Between these two periods 1. Residential total values as a percentage of combined residential-commercial-industrial values went up from 64% to 79% 6 Given the fixed nature of school district boundaries, it should also be noted that Ames’ taxpayer investments in expanding the periphery will largely expand the tax bases and improve the quality of surrounding school districts at the expense of the Ames Community School District. 14 2. Residential taxable values as a percentage of combined residential-commercial-industrial values went up from 47% to 67% 3. The portion of residential taxable value to residential total value fell slightly from 48% to 47% The longer-term view appears to be consistent with the shorter timeframe. Ames’ increasing reliance on residential property for revenue at a time when statewide efforts are focused on reducing residential tax liabilities underscores the strategic importance of recapturing retail sales leakage and commuter base losses, along with their associated local option sales tax increments, as a means of diversifying city revenue. Summing Up Ames is lagging its Iowa peers in commercial growth and population growth. This is shown in any number of measures but is sharply displayed in retail trade numbers for Ames and Story County. The retail trade deficit per capita is surprising in Ames because Ames has large contingents of “Tourists” who add to the numerator (retail trade) but not the denominator (population). Ames needs a strategy to become a destination rather than just a gateway to Iowa State University or a corridor to Polk County. Ames needs to integrate visitors into the commercial sphere. Bringing attractive hotel and meeting venues into a vibrant distinctive commercial district would be a potential starting point. Ames does not appear to be planning for this. Ames appears to be planning for a larger residential periphery and some drive-by shopping corridors. Increasingly, the corridors are the first things visitors see when entering Ames. They are not proving to be “Sticky.” They are not encouraging additional retail spend. Finally, Ames is becoming increasingly reliant upon a residential tax base in a state intent on reducing residential tax liabilities. The funds Ames is leaving on the table for lack of a commercial strategy will become increasingly critical to Ames’ fiscal health as time goes on. Conclusion The Ames Event Center/LINC initiative is about a hotel and a conference center. It is about bringing visitors to Ames and the university into the heart of Ames to engage with the cultural and social assets Ames has to offer. It is about increasing local retail, hospitality, and commercial sales. It is about strengthening the mixture of tax bases that provide civic support and improvement. It is about a better quality of life and progress. But it is not about simply improving the future of Ames as Ames now sees th at future. 15 It is about changing the way Ames looks at the future. Ames has a relatively high standard of living, but it has relatively low growth rates. It lags its Central Iowa peers in population growth, industry, and retail trade. Ames is losing its traditional trade periphery to the counties to the south, Polk and Dallas. Story County underperforms these and even Warren and Madison counties in 30-year population growth. Ames often does not notice this because Ames has always been the beneficiary of extraordinary public investments in the university, university-related federal facilities, and the Iowa Department of Transportation. Those investments are slowing down and, in many instances, declining. Iowa State University recognizes this change. That recognition is a driving force behind Cy Town. If Ames intends to maintain a viable commercial and cultural environment, it must recognize these changes and act, too. The Ames Event Center/LINC project provides a substantial first step in that recognition. It will be designed, placed, and integrated into the heart of downtown Ames: • Giving visitors a taste of what Ames is • Providing downtown and the Ames community with revenue and revitalization • Encouraging residential growth in a growing commercial and cultural destination • Refreshing the vision of what Ames can be.