City of Morgan Hill Bikeways, Trails, Parks and Recreation Master Plan

Section 2: Introduction and Executive Summary | May 2017 Sports Market Business Strategy – Morgan Hill, CA PAGE 3

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TERMS OF THE ASSIGNMENT This report is based on estimates, assumptions, actual operating data and other information obtained from our research, our prior experience with similar assignments, and information received from the Management Team and other sources. The sources of information and basis of estimates and assumptions are stated herein. Projections of facility demand, attendance presented within this report are based on Johnson Consulting’s assessment of various data, market characteristics, discussions with project stakeholders, and documented assumptions. We cannot represent our projections as results that will actually be achieved. In accordance with our engagement letter, Johnson Consulting did not ascertain the legal or regulatory requirements applicable to this project, including zoning or other state and local government regulations, permits, and licenses. Furthermore, no effort has been made to determine the possible effect on this project of present or future federal, state, or local legislation, including those related to jurisdictional, environmental, or ecological matters or interpretations thereof. Johnson Consulting examined the current market conditions of Morgan Hill in relation to economic indicators of Santa Clara County, the State of California and the United States. The key objective of this research was to identify structural factors, opportunities and weaknesses that may affect the market’s ongoing competitive situation. While characteristics such as population, employment and income are not strict predictors of the success and impact of multi-purpose sports complexes, these factors can provide insight into the capacity of a market to yield ongoing support for the infrastructure associated with a facility, such as potential corporate partners and users of the facility. Morgan Hill is located off U.S. Route 101 in North-Central California, southeast of San Jose. The growing technology industry in nearby Silicon Valley (30 miles northwest) has had a strong influence on the entire region. Leading companies in the technology sector that are based in Santa Clara County, are providing high- paying and high-skilled employment opportunities in a vacation-type climate, which has driven upward the area’s total cost of living. The following map displays Morgan Hill’s location in relation to major cities in the surrounding area. In Figure 2-1, Morgan Hill is denoted in light blue in the map below. EXECUTIVE SUMMARY MARKET OVERVIEW

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