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Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 9
<br />EXECUTIVE SUMMARYES
<br />The exhibit below presents a summary of projected annual financial operating results associated with a potential Youth and
<br />Amateur Sports Complex in Mounds View,as previously outlined herein.Based on the preliminary analysis,upon stabilization
<br />(assumed fourth full year of operation),a Youth and Amateur Sports Complex in Mounds View is estimated to generate a net
<br />operating profit of approximately $16,500,before debt service and capital repair/replacement funding.This projected level of
<br />operating profit is consistent with other comparable indoor sports facilities throughout the country.
<br />Opening Stabilized 20-Year
<br />FINANCIAL OPERATIONS Year 1 Year 2 Year 3 Year 4 Cumulative
<br />OPERATING REVENUES
<br />Rental Income $154,400 $175,500 $208,800 $232,200 $5,609,200
<br />Camps/Clinics $10,400 $13,200 $21,800 $22,200 $543,600
<br />Concessions $103,700 $132,700 $157,400 $177,000 $4,246,100
<br />Advertising/Sponsorship $6,600 $7,600 $8,700 $9,900 $237,400
<br />Subtotal $275,100 $329,000 $396,700 $441,300 $10,636,300
<br />OPERATING EXPENSES
<br />Salaries, Wages and Benefits $160,000 $166,900 $174,900 $184,100 $4,507,500
<br />Utilities $65,900 $67,900 $69,900 $72,000 $1,860,500
<br />Maintenance and Repair $27,500 $28,300 $29,100 $30,000 $775,000
<br />Materials and Supplies $16,500 $17,000 $17,500 $18,000 $465,000
<br />Insurance $1,600 $1,700 $1,700 $1,800 $45,500
<br />Concessions $57,000 $73,000 $86,600 $97,400 $2,335,400
<br />General and Administrative $15,000 $17,500 $19,000 $21,500 $519,400
<br />Subtotal $343,500 $372,300 $398,700 $424,800 $10,508,300
<br />NET OPERATING INCOME ($68,400) ($43,300) ($2,000) $16,500 $128,000
<br />It is assumed that the additional courts consistent with a Youth and Amateur Sports Complex would share important operating
<br />synergies with existing Mounds View Community Center operations including shared management and staffing,supplies and
<br />equipment,support space and other such elements.Should the City of Mounds View or another entity seek to independently
<br />develop a multi-court indoor youth sports complex elsewhere in the area,that complex would be expected to operate with a
<br />significantly higher expense budget and much lower cost coverage ratio.
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