PUBLIC OPINION SURVEY MEMO

AN ANALYSIS OF LOCAL SUPPORT FOR THE CURRENT FINANCING PROPOSAL TO BUILD AN ENTERTAINMENT AND SPORTS COMPLEX
RELEASED BY THINK BIG SACRAMENTO FEBRUARY 23, 2012

Sponsor: Think BIG Sacramento February 23, 2012 To: Interested Parties

From: Survey USA RE: Results of City of Sacramento Survey on Proposed Arena

Support for Partially Financing a Downtown Arena by Leasing City-Owned Parking Our recent survey1 of 500 city of Sacramento adults shows strong support for financing the construction of a new arena in Downtown Sacramento with the implementation of a public-private partnership (P3) to construct a new arena. 64% of respondents support the current proposal to use proceeds from leasing city-owned parking to a private operator to finance the citys portion of the project (Table 1). Furthermore, when told that the city has received bids from private groups interested in leasing the citys parking garages, 51% of residents supported moving forward to discover how much money these firms were willing to pay to lease the garages (Table 2).

TABLE 1 SUPPORT FOR LEASING CITY-OWNED PARKING

If the public-sector, private-sector partnership was able to help pay for a new arena by leasing the citys parking garages, while protecting the jobs of current city employees, limiting rate increases on parking, and avoiding any new taxes, would you support the partnership? Or oppose it? 500 Adults All Margin of Sampling Error: +/- 4.3% Support 64% Oppose 22% Not Sure 14%

TABLE 2 SUPPORT FOR CONTINUING WITH BIDDING PROCESS

The city has received bids from private groups interested in leasing the citys parking garages. Should the city proceed with competitive bidding to see how much money these private firms will pay to lease city garages? Or should the city not go down this path? 500 Adults All Margin of Sampling Error: +/- 4.5% Proceed With Competitive Bidding 51% Not Go Down This Path 29% Not Sure 20% Key Drivers of Support
1

500 city of Sacramento adults were interviewed by SurveyUSA 02/17/12 through 02/21/12. This research was conducted using blended sample, mixed mode. Respondents reachable on a home telephone were interviewed on their home telephone in the recorded voice of a professional announcer. Respondents not reachable on a home telephone were shown a questionnaire on their smartphone, tablet, laptop or other electronic device.

The need for further economic development and the utilization of a P3 are driving the strong public support for the current proposal. First, the economic development and job growth that will result from the construction and operation of a world-class arena speaks to voters high levels of concern about the condition of the local economy. 49% of respondents said that creating jobs was the most important issue to them when voting for Sacramento city officials (Table 3). Additionally, by a ratio of 9:1 residents believe the city could be doing more to plan for long-term economic growth (Table 4) and about two-thirds of respondents view a new arena as an important asset to Sacramentos future (Table 5).

TABLE 3 MOST IMPORTANT ISSUES TO VOTERS

When you vote to elect city of Sacramento officials this year, which one issue is most important? Creating jobs? Improving education? Or reducing crime? 500 Adults All Margin of Sampling Error: +/- 4.5% Creating Jobs 49% Improving Education 29% Reducing Crime 17% Not Sure 5%

TABLE 4 DOES THE CITY DO ENOUGH TO PROMOTE ECONOMIC DEVELOPMENT

Does the city of Sacramento do enough to plan for long-term economic development? Or could the city do more? 500 Adults All Margin of Sampling Error: +/- 4.5% Does Enough 9% Could Do More 83% Not Sure 8%

TABLE 5 IMPORTANCE OF A NEW ESC TO SACRAMENTOS FUTURE

How important to Sacramentos futureis an entertainment and sports facility capable of attracting concerts, professional sports, childrens shows, religious gatherings and major conventions? Very important? Somewhat important? Not very important? Or not at all important? 500 Adults All Margin of Sampling Error: +/- 4.5% Very 40% Somewhat 26% Total Importance 66% Not Very 17% Not At All 15% Not Sure 1%

Secondly, city of Sacramento adults support both public and private participation to complete this deal. P3s enable risks to be transferred from the public to private companies. This resonates with voters as 52% of residents support using a public-private partnership (P3) to finance a new Sacramento arena (Table 6). Almost three-fourths of residents (72%) support a P3 that would protect the general fund without raising taxes (Table 7).

TABLE 6 SUPPORT FOR PUBLIC-PRIVATE PARTNERSHIPS TO PROMOTE ECONOMIC DEVELOPMENT

One way to pay for a new arena in Sacramento is to develop a public-sector, privatesector partnership. This partnership might create 4,000 jobs and may result in $7 billion in economic activity over the next 30 years. As one way to help pay for a new Sacramento arena, do you support? Or oppose? A public-sector, private-sector partnership? 500 Adults All Margin of Sampling Error: +/- 4.5% Support 52% Oppose 30% Not Sure 18%

TABLE 7 SUPPORT FOR PUBLIC-PRIVATE PARTNERSHIPS

If the public-sector, private-sector partnership included private money from the Sacramento Kings and other investors, and public participation that did not raise taxes and which protected the citys general fund, would you support the partnership? Or oppose it? 500 Adults All Margin of Sampling Error: +/- 4.3% Support 72% Oppose 15% Not Sure 13% Conclusion The survey clearly shows local support for the current plan to finance a new entertainment and sports complex in Sacramento. Residents believe creating jobs and developing the local economy are very important issues. They believe a new arena is a critical investment in Sacramentos future and that entering into a P3 to facilitate its construction is a good idea. The proposal to use proceeds from lease city-owned parking to a private operator to finance the arena while protecting the general fund is very popular among residents. With that in mind, residents believe the city should move forward and enter the Request for Proposals process.