Town Revenue from Patriot Place Well Ahead of Projections Despite Economic Challenges
Patriot Place is currently contributing over $3 million annually in direct revenue to the town despite not being at full build out/lease out.
Note: Revenue presented in the Patriot Place performance analysis does not contain figures from Gillette Stadium, the Patriots, the Revolution, concerts or any other events or business on Kraft Group property.
Despite a challenging retail and commercial real estate environment created by the worst economic downturn in decades, Patriot Place has exceeded Foxborough’s revenue projections outline in the 2006-07 Koff Report, according to Patriot Place General Manager Brian Earley.
“Current annual direct revenue to Foxborough from Patriot Place is 50 percent above the Koff projections,” Earley said. … “We are extremely proud the revenues paid to Foxborough are well ahead of projections despite not being at full build out/lease out.”
The dining, shopping and entertainment complex is currently contributing over $3 million annually in direct revenue to the town, which is roughly $1 million more than the Koff Report’s projection at full build out.
Earley presented these figures in a performance analysis of Patriot Place presented to Foxborough’s Board of Selectmen Tuesday. In the report, Earley said total guest visits at Patriot Place over the course of 2012 were roughly 1.8 million.
Of the $3 million in revenue currently generated from Patriot Place, roughly $2 million comes from real estate taxes, according to Earley. The next largest revenue source from Patriot Place is the hotel occupancy tax generated from the Renaissance Hotel. The third largest revenue source is the restaurant meals tax, which was roughly $325,000 in fiscal year 2012.
The town also collects $140,000 annually from Patriot Place for public safety supplement.
“Goal of Patriot Place was to generate enough revenue to offset any impact on town services and generate incremental revenue for the town,” Earley said.
As of fiscal year 2012, Patriot Place has far exceeded that goal.
“By 2010, Patriot Place’s contributions to the town had exceeded Koff Report projections for full build out,” Earley said. “By 2012, net revenues exceeded projections by 50 percent and we are looking to grow that number by attracting new businesses to Patriot Place.”
Fortunately for the town, the Kraft Group is pursuing future growth at Patriot Place in areas of business that currently generate the most revenue – hotels and restaurants.
“Two of the highest revenue streams in town – hotel occupancy and meals tax – are aligned with Patriot Place’s existing growth opportunities with regards to future development in the retail space,” Earley said.
Click here for more on information on future development plans at Patriot Place.
You can watch Earley’s presentation by clicking here.