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Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 8 <br />EXECUTIVE SUMMARYES <br />Cost /Benefit Analysis <br />An analysis was completed to produce key cost/benefit estimates associated with a potential new Youth and Amateur Sports <br />Complex in Mounds View,Minnesota inclusive of three additional full-size basketball courts adjacent to the Mounds View Community <br />Center.Performance estimates for the Youth and Amateur Sports Complex have been presented over a 20-year projection period. <br />For purposes of this analysis,construction is assumed to commence during 2023 and be completed in 2024,while the first full year of <br />operations is assumed to be 2025.A stabilized year of operation is assumed to occur by the fourth full year of operation (assumed <br />2028).The assumptions used in this analysis are based on the market research and analysis,past experience with hundreds of <br />similar sports facility projects,local market visits and City and stakeholder-provided data,industry trends,knowledge of the <br />marketplace,and use/financial results from comparable facilities.These estimates are designed to assist project representatives in <br />assessing the financial and economic effects of a new Youth and Amateur Sports Complex and cannot be considered a presentation <br />of expected future results.Accordingly,the analysis of potential financial operating results and economic impacts may not be useful <br />for other purposes.The assumptions disclosed herein are not all inclusive but are those deemed to be significant.Because events <br />and circumstances frequently do not occur as expected,there usually will be differences between estimated and actual results and <br />these differences may be material. <br />A detailed utilization model was developed to consider a large number of variables and inputs to analyze each sport/use for a <br />potential Youth and Amateur Sports Complex in Mounds View.For instance,when considering different types of usage (i.e.,use from <br />local leagues/clubs versus non-local tournaments/meets versus clinics/camps/lessons versus open recreation,etc.),separate <br />assumptions were used to generate usage and attendance (participants and spectators)estimates.The exhibit below presents a <br />summary of key utilization levels associated with a Youth and Amateur Sports Complex in Mounds View,pursuant to the previously <br />outlined facility program and assumptions. <br />Opening Stabilized 20-Year <br />UTILIZATION Year 1 Year 2 Year 3 Year 4 Cumulative <br />LEAGUE TEAMS <br />Basketball 10 12 14 18 342 <br />Volleyball 24 30 36 40 770 <br />Indoor Spring Sports 0 0 0 0 0 <br />Total 34 42 50 58 1,112 <br />LEAGUE GAMES <br />Basketball 80 96 112 144 2,736 <br />Volleyball 240 300 360 400 7,700 <br />Indoor Spring Sports 0 0 0 0 0 <br />Total 320 396 472 544 10,436 <br />TOURNAMENTS <br />Basketball 15 17 19 20 391 <br />Volleyball 9 11 13 16 305 <br />Indoor Spring Sports 0 0 0 0 0 <br />Total 24 28 32 36 696 <br />TOURNAMENT GAMES <br />Basketball 1,000 1,160 1,320 1,360 26,600 <br />Volleyball 360 504 576 672 12,864 <br />Indoor Spring Sports 0 0 0 0 0 <br />Total 1,360 1,664 1,896 2,032 39,464 <br />CAMPS & OTHER RENTALS <br />Basketball 60 72 84 84 1,644 <br />Volleyball 20 32 40 40 772 <br />Indoor Spring Sports 24 24 24 24 480 <br />Private Rentals/Practices/Drop-in 1,500 1,580 1,710 1,790 35,220 <br />Total 1,604 1,708 1,858 1,938 38,116