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 5

The strength of a market’s income level and employment opportunities can also indicate its ability to support a sports complex. Higher income levels typically suggest greater amounts of disposable income, which can be spent on non-essential items such as recreation and entertainment. Wealthy markets will have more income available to spend on team, league, and tournament fees for a sports complex. More importantly, a healthy and diversified economy helps to insulate a region from economic downturns that could affect facility demand. In 2016, the median household income in Morgan Hill was $96,808 per annum, which was significantly higher than the median household income observed across California ($62,554), and the U.S. ($54,149). The above-average median household income has likely been influenced by the corporate presence – specifically, San Jose, Santa Clara, and Silicon Valley – and reflects a healthy market with disposable income. Looking forward, median household income in California is expected to continue to grow, reaching approximately $107,754 in 2021.

Table 2–2

Median Household Income - Morgan Hill, CA (2016-2021)

CAGR* 2016-2021

2016

2021

$54,149 $59,476 1.9% $62,554 $71,566 2.7% $94,301 $104,424 2.1% $96,808 $107,754 2.2%

United States

California

Santa Clara County, CA

Morgan Hill, CA

*Compounded Annual Growth Rate Sources: Esri ArcGIS BAO, Johnson Consulting

Despite its relatively small population, the City of Morgan Hill is a thriving and successful community whose location in Silicon Valley with proximity to the Bay Area makes it an accessible and highly attractive place to visit. The relatively young and affluent community offers residents several recreational facilities and parks to accommodate the health and wellness needs of its residents. There are also several existing infrastructure resources – from hotels to highways – to accommodate its residents and visitors. Additionally, several outdoor festivals, including Mushroom Mardi Gras, Taste of Morgan Hill and Freedom Fest, are held each year and draw large crowds from outside Morgan Hill. EXISTING FACILITIES To provide the City of Morgan Hill with a strategic plan in support of its sports tourism goals, Johnson Consulting conducted a comprehensive market assessment and competitive facility audit. Part of the market assessment consisted of a review of the Outdoor Sports Center (OSC) and Aquatics Center (AC) to understand how they are utilized, the events held at each facility and the economic impacts of each facility.

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