Spokane Sportsplex - Ice Only (DRAFT) (Spokane, WA) Five-Year Operating Pro Forma

Transcription

1 Spokane Sportsplex - Ice Only () (Spokane, WA) Five-Year Operating Pro Forma Date: October 2015 Developed for: Spokane Public Facilities District Note: SFA has no responsibility to update this financial forecast for events and circumstances that occur after the date of these deliverables. The findings presented herein reflect analysis of primary and secondary sources of information. SFA utilized sources deemed to be reliable but cannot guarantee their accuracy. Moreover, estimates and analysis presented in this financial forecast are based on trends and assumptions, which usually result in differences between the projected results and actual results. Because events and circumstances frequently do not occur as expected, those differences may be material.

2 Facility Program Indoor Ice Facility Space Indoor Programming Product/Service Count Ice House NHL Ice Rink ,000 17, % Locker rooms , % Pro Style Locker Room (With Showers) ,800 1, % Coaches/Ref Rooms % Stadium Seating (for primary rink) ,000 5, % Ice Manager's Office % Skate Pro Shop/Equipment Rental % Zamboni and Equipment Storage % Lobby/Welcome Area % Concessions % Restrooms , % Total Ice House Sq. Ft. 31, % Required SF for Products and Services 31, % Mechanical, Electrical, Storage, etc. 10% of P&S SF 3, % Common Area, Stairs, Circulation, etc. 15% of P&S SF 4, % Total Estimated Multi-Use Athletic Facility SF 38, % Estimated Building Footprint (85% of Total SF) Total Building Acreage 33, Site Development (IAF) Quantity Dimensions Approx. SF L (') W (') each Total SF % of Total Parking Spaces Total (10'x18') (20' x 20' Inc. aisles) % Setbacks, Green Space, etc. 25% of SF 9, % Total Estimated Complex SF 48, % Total Complex Acreage 1.1 Parking Spaces Total Dimensions L (') W (') Approx. SF each Total SF % of Footprint 1

3 Capital Costs and Start-up Expenses - Indoor Athletic Facility Details Quantity Unit Cost/Unit Budgeted Cost % of Total Building & Land Cost Real Estate Acquisition 1.00 LS $96,511 $96, % Land Cost Total $96, % Hard Costs Indoor Building Structure Cost Warm Shell (includes LED lighting solution from ASG Energy) 38,875 SF $82 $3,187, % Site Development Paving, Grading, Utilities, Landscaping, improvement allocation for indoor facility 1.12 Acre $175,000 $195, % Contingency 10.00% $338, % Hard Cost Total $3,721, % Field and Sport Equipment Cost Ice Area Ice Surfaces, Systems, and Plant With Concrete Base and Sub-Structures 1 LS $1,750,000 $1,750, % Dasher Boards 1 Ea. $300,000 $300, % Ice Rink Scoreboards 1 Ea. $7,500 $7, % Netting (Ice) Around Ice 1 Ea. $15,000 $15, % Bleacher Seating Area 1,000 Ea. $100 $100, % Ice Resurfacing Machine Zamboni 1 Ea. $105,000 $105, % Pro-Deck Floor Cover 1 Ea. $125,000 $125, % Ice Paint 1 LS $500 $ % Athletic Equipment Sports Equipment (Goals, Racks, Etc.) 1 LS $25,000 $25, % Tax and Shipping 9.00% $218, % Contingency 10.00% $264, % Field and Sport Equipment Cost Total $2,911, % Furniture, Fixtures and Equipment Cost FOOD & BEVERAGE Equipment 1 LS $50,000 $50, % Equipment Equipment for Secondary Concessions 0 LS $50,000 $0 0.0% Finish Out 1 LS $30,000 $30, % FURNISHINGS Furnishings 1 LS $30,000 $30, % Hardware IT systems, Computers, Etc. 1 LS $20,000 $20, % Software 1 LS $10,000 $10, % MISCELLANEOUS Locker Rooms 2,000 SF $35 $70, % Pro Style Locker Rooms (With Showers) 1,800 SF $65 $117, % Signage & Banners Interior and Exterior 1 LS $25,000 $25, % Audio/Video 38,875 SF $2 $77, % Maintenance Equipment 1 LS $5,000 $5, % Tax & Shipping 9.00% $39, % Contingency 10.00% $47, % Furniture, Fixtures and Equipment Cost Total $521, % Soft Costs Construction Design-Build Fee % of Structure and Site work 8.0% $297, % Impact Fees $10, % Performance Bond 0.00% $0 0.0% Permits/Inspections % of Structure and Site work 0.50% $18, % Prevailing Wages $485, % Contingency 10.00% $81, % Soft Cost Total $892, % Total Construction Costs - Indoor Court Building $8,143, % Cost Per Square Foot $

4 Capital Costs and Start-up Expenses - Soft Costs Operations Details Quantity Unit Cost/Unit Budgeted Cost % of Total Soft Costs Operations Pre-Launch Professional Services Legal, Accounting, Bank, Consulting $125, % Permits and Extensions $7, % Presentation Materials Renderings, Etc. $4, % Marketing & Business Development Allowance Pre-Opening Budget $50, % Tournament and Event Business Development $0 0.0% Pre-Funded Operational Account $69, % Pre-Opening Staff Budget Staffing Cost Pre-Grand Opening $92, % Cost of Issuance/Financing TBD 0.0% Working Capital Reserve $120, % Contingency 10.00% $46, % Soft Cost Total $516, % Total Construction Costs - Soft Cost Operations $516, % 3

5 Use of Proceeds USES OF FUNDS Land Cost $96,511 Hard Cost $3,721,270 Field and Sport Equipment Cost $2,911,172 Furniture, Fixtures, and Equipment $521,265 Soft Costs Construction $892,941 Soft Costs Operations $396,441 Working Capital Reserve $120,459 Total Uses of Funds $8,660,059 4

6 Total Revenue & Expenses Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Tournament Revenue Ice Hockey Tournament Rentals $52,860 $61,670 $73,680 $82,890 $91,485 Ice Hockey Travel League Rentals $9,600 $12,000 $15,120 $16,800 $17,640 Ice Hockey Camps/Clinics Rentals $17,600 $17,600 $18,480 $18,480 $19,404 Tournament Food & Beverage $37,133 $43,815 $50,550 $56,963 $59,494 Retail $2,048 $2,420 $2,793 $3,135 $3,270 Local Revenue Ice Rental $226,800 $249,480 $280,291 $294,305 $318,291 Non-Tournament Food & Beverage $16,500 $18,075 $19,309 $20,274 $20,917 Secondary Revenue $57,200 $62,416 $68,138 $74,418 $81,309 Total Revenue $419,741 $467,476 $528,361 $567,265 $611,810 Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Tournament Expenses Ice Hockey Tournament Rentals $7,558 $8,818 $10,462 $11,769 $12,902 Ice Hockey Travel League Rentals $1,152 $1,440 $1,814 $2,016 $2,117 Ice Hockey Camps/Clinics Rentals $2,112 $2,112 $2,218 $2,218 $2,328 Tournament Food & Beverage $22,280 $26,289 $30,330 $34,178 $35,696 Retail $1,434 $1,694 $1,955 $2,195 $2,289 Local Expenses Ice Rental $27,216 $29,938 $33,635 $35,317 $38,195 Non-Tournament Food & Beverage $9,750 $10,688 $11,420 $11,991 $12,368 Secondary Revenue $10,000 $11,000 $12,100 $13,310 $14,641 Total Cost of Goods Sold $81,501 $91,978 $103,934 $112,993 $120,537 Gross Margin $338,239 $375,498 $424,428 $454,272 $491,273 % of Revenue 81% 80% 80% 80% 80% Facility Expenses $151,356 $155,897 $160,574 $165,391 $170,353 Operating Expense $59,556 $61,343 $63,183 $65,078 $67,031 Management/Admin. Payroll $152,520 $158,621 $164,966 $171,564 $178,427 Payroll Taxes/Benefits/Bonus $55,113 $58,026 $61,264 $64,105 $67,026 Total Operating Expenses $418,545 $433,887 $449,987 $466,139 $482,836 EBITDA ($80,306) ($58,388) ($25,559) ($11,867) $8,437 % of Revenue -19% -12% -5% -2% 1% Debt Service $0 $0 $0 $0 $0 Economic Impact Drivers Year 1 Year 2 Year 3 Year 4 Year 5 Total Non-Local Days in Market 9,403 11,068 12,739 14,314 14,947 Total Room Nights 2,221 2,606 2,991 3,346 3,490 Economic Impact $1,095,191 $1,289,105 $1,483,691 $1,667,122 $1,740,826 5

7 Economic Impact Number of Events Per Year Year 1 Year 2 Year 3 Year 4 Year 5 Ice Hockey Tournaments Ice Hockey Travel League Rentals Ice Hockey Camp/Clinic Rentals Total Events Per Year Per Person Spending By Category - Regional Amount % of Total Lodging/Accommodations $ % Dining/Groceries $ % Transportation $ % Entertainment/Attractions $ % Retail $ % Miscellaneous $ % Total $ % Economic Impact Drivers Year 1 Year 2 Year 3 Year 4 Year 5 Total Non-Local Days in Market 9,403 11,068 12,739 14,314 14,947 Total Room Nights 2,221 2,606 2,991 3,346 3,490 Economic Impact Year 1 Year 2 Year 3 Year 4 Year 5 Total Lodging/Accommodations $239,123 $281,462 $323,948 $363,999 $380,091 Total Dining/Groceries $430,196 $506,367 $582,801 $654,854 $683,805 Total Transportation $73,157 $86,110 $99,108 $111,361 $116,284 Total Entertainment/Attractions $34,416 $40,509 $46,624 $52,388 $54,704 Total Retail $202,169 $237,965 $273,885 $307,746 $321,351 Total Miscellaneous $116,130 $136,691 $157,324 $176,775 $184,590 Total Indirect Spending $0 $0 $0 $0 $0 Total Economic Impact $1,095,191 $1,289,105 $1,483,691 $1,667,122 $1,740,826 6

8 Facility Expenses Indoor Building Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Grounds Maintenance $500/Month $6,000 $6,180 $6,365 $6,556 $6,753 Maint. & Repairs $13,606 $14,014 $14,435 $14,868 $15,314 Janitorial Supplies $19,438 $20,021 $20,621 $21,240 $21,877 Safety Supplies $1,500 $1,545 $1,591 $1,639 $1,688 Utility Expense: Dry Areas $0.70/SF $11,813 $12,167 $12,532 $12,908 $13,295 Utility Expense: Ice Area $4.50/SF $99,000 $101,970 $105,029 $108,180 $111,425 Total Facility Expense $151,356 $155,897 $160,574 $165,391 $170,353 7

9 Operating Expenses Expense Mgmt. Assump Year 1 Year 2 Year 3 Year 4 Year 5 Accounting Fees $7,140 $7,354 $7,575 $7,802 $8,036 Bank Service Charges Misc. Banking Fees $8,395 $8,647 $8,906 $9,173 $9,448 Dues and Subscriptions $778 $801 $825 $850 $875 Employee Uniforms $1,500 $1,545 $1,591 $1,639 $1,688 Equipment Rental $3,499 $3,604 $3,712 $3,823 $3,938 General Advertising $15,000 $15,450 $15,914 $16,391 $16,883 Tournament Business Development $0 $0 $0 $0 $0 Insurance - Structure (HPR), Contents, Liability $5,114 $5,267 $5,425 $5,588 $5,755 Interest Expense $0 $0 $0 $0 $0 Legal Fees $1,700 $1,751 $1,804 $1,858 $1,913 Licenses, Permits Food Licenses, etc. $1,000 $1,030 $1,061 $1,093 $1,126 Office Supplies $4,665 $4,805 $4,949 $5,098 $5,250 Real Estate Tax $0 $0 $0 $0 $0 Rent- Building Lease $0 $0 $0 $0 $0 Software, Computer, Internet $9,600 $9,888 $10,185 $10,490 $10,805 Travel and Education $1,166 $1,201 $1,237 $1,274 $1,313 Total Operating Expenses $59,556 $61,343 $63,183 $65,078 $67,031 8

10 Management/Admin. Payroll Summary Management/Admin. Position Mgmt. Assump Year 1 Year 2 Year 3 Year 4 Year 5 General Manager $67,200 $69,888 $72,684 $75,591 $78,614 Ice House Facilities Manager $40,320 $41,933 $43,610 $45,355 $47,169 Admin. Support Part-Time Front Desk/Admin. $45,000 $46,800 $48,672 $50,619 $52,644 Total Management/Admin. Payroll $152,520 $158,621 $164,966 $171,564 $178,427 9

11 Payroll Summary Total Payroll Summary Mgmt. Assump Pre-Open Year 1 Year 2 Year 3 Year 4 Year 5 Mgmt General Manager 12 months prior $67,200 $67,200 $69,888 $72,684 $75,591 $78,614 Mgmt Ice House Facilities Manager 3 months prior $10,080 $40,320 $41,933 $43,610 $45,355 $47,169 Mgmt Admin. Support 3 months prior $11,250 $45,000 $46,800 $48,672 $50,619 $52,644 Subtotal Management/Admin. Payroll $88,530 $152,520 $158,621 $164,966 $171,564 $178,427 Staff Ice Hockey Tournament Rental Staff 1 month prior $579 $6,951 $8,109 $9,652 $10,858 $11,940 Staff Ice Hockey Travel League Rental Staff 1 month prior $96 $1,152 $1,440 $1,814 $2,016 $2,117 Staff Ice Hockey Camp/Clinic Rental Staff 1 month prior $176 $2,112 $2,112 $2,218 $2,218 $2,328 Staff Tournament Food & Beverage Staff 1 month prior $774 $9,283 $10,954 $12,638 $14,241 $14,874 Staff Retail Staff 1 month prior $26 $307 $363 $419 $470 $491 Staff Ice Rental Staff 1 month prior $2,268 $27,216 $29,938 $33,635 $35,317 $38,195 Staff Non-Tournament Food & Beverage Staff 1 month prior $313 $3,750 $4,125 $4,414 $4,634 $4,773 Subtotal Sport Admin Staff $4,231 $50,771 $57,041 $64,789 $69,754 $74,718 Payroll Subtotal $92,761 $203,291 $215,661 $229,754 $241,318 $253,145 Payroll Services $1,200 $1,236 $1,273 $1,311 $1,351 Payroll Taxes/Benefits 35% of FT Payroll, 17% of PT Payro $53,913 $56,790 $59,991 $62,794 $65,676 Payroll Taxes/Benefits/Bonus Totals Total Payroll $55,113 $58,026 $61,264 $64,105 $67,026 $258,404 $273,688 $291,019 $305,423 $320,171 10

12 Appendix 11

13 Ice Hockey Tournament Revenue & Expenses Revenue Mgmt. Assump. Amount per Activity Number of Events per Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Ave. Participants Year 1 Year 2 Year 3 Year 4 Year 5 Small Tournament - 1 Rink, 2.5 Days Team Information 15 players per team Gate Fess - Tournament Pass 100% of fans (1.5 fans/player) $10 $10 $10 $10 $ $24,300 $28,350 $32,400 $36,450 $38,475 Rental Fees $1,600/Rink/Day $1,600 $1,600 $1,680 $1,680 $1, $48,000 $56,000 $67,200 $75,600 $83,790 Gate Fee Reduction of Revenue 80% Reduction of Revenue ($19,440) ($22,680) ($25,920) ($29,160) ($30,780) Non-capacity growth rate Capacity growth rate Area Revenue $52,860 $61,670 $73,680 $82,890 $91,485 Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Tournament Attendant Staff 12% Gross Revenue $6,343 $7,400 $8,842 $9,947 $10,978 Gate Staff $0.25 Per Sale $608 $709 $810 $911 $962 Gate Ticket Cost $0.25 Per Ticket $608 $709 $810 $911 $962 Area Expense $7,558 $8,818 $10,462 $11,769 $12,902 Net Revenue 12 $45,302 $52,852 $63,218 $71,121 $78,583

14 Ice Hockey Travel League Revenue & Expenses Revenue Mgmt. Assump. Amount per Activity Number of Events per Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Ave. Participants Year 1 Year 2 Year 3 Year 4 Year 5 Youth Teams Team Information 15 players per team Rental Fees 2 hours/game $400 $400 $420 $420 $ $6,400 $8,000 $10,080 $11,760 $12,348 Pro Teams Team Information 30 players per team Rental Fees Half-day rental $800 $800 $840 $840 $ $3,200 $4,000 $5,040 $5,040 $5,292 Non-capacity growth rate Capacity growth rate Area Revenue $9,600 $12,000 $15,120 $16,800 $17,640 Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Travel League Attendant Staff 12% Gross Revenue $1,152 $1,440 $1,814 $2,016 $2,117 Area Expense $1,152 $1,440 $1,814 $2,016 $2,117 Net Revenue 13 $8,448 $10,560 $13,306 $14,784 $15,523

15 Ice Hockey Camp/Clinic Revenue & Expenses Revenue Mgmt. Assump. Amount per Activity Number of Events per Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Ave. Participants Year 1 Year 2 Year 3 Year 4 Year 5 Pro Camp Player Information Rental Fees $1,600/Rink/Day $1,600 $1,600 $1,680 $1,680 $1, $6,400 $6,400 $6,720 $6,720 $7,056 Youth Clinic Player Information Rental Fees $1,600/Rink/Day $1,600 $1,600 $1,680 $1,680 $1, $11,200 $11,200 $11,760 $11,760 $12,348 Non-capacity growth rate Capacity growth rate Area Revenue $17,600 $17,600 $18,480 $18,480 $19,404 Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Camp/Clinic Attendant Staff 12% Gross Revenue $2,112 $2,112 $2,218 $2,218 $2,328 Area Expense $2,112 $2,112 $2,218 $2,218 $2,328 Net Revenue 14 $15,488 $15,488 $16,262 $16,262 $17,076

16 Tournament and Event Food & Beverage Revenue & Expenses Revenue Event Days Daily Expend. Number of Events per Year Total # of Number of Number of Per Attendee Year 1 Year 2 Year 3 Year 4 Year 5 Entries Participants Fans Year 1 Year 2 Year 3 Year 4 Year 5 Ice Hockey Rental - Small 2.5 $ $30,375 $35,438 $40,500 $45,563 $48,094 Ice Hockey Travel League Rental - Youth Teams 2 $ $2,880 $3,600 $4,320 $5,040 $5,040 Ice Hockey Travel League Rental - Pro Teams 3 $ $1,080 $1,350 $1,620 $1,620 $1,620 Ice Hockey Camp/Clinic Rental - Pro Camp 4 $ $803 $803 $803 $803 $803 Ice Hockey Camp/Clinic Rental - Youth Clinic 7 $ $1,995 $2,625 $3,308 $3,938 $3, Area Revenue $37,133 $43,815 $50,550 $56,963 $59,494 Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Food Cost 35% Concessions Sales $12,996 $15,335 $17,693 $19,937 $20,823 Food and Beverage Wages 25% Concession Sales $9,283 $10,954 $12,638 $14,241 $14,874 Area Expense $22,280 $26,289 $30,330 $34,178 $35,696 Net Revenue 15 $14,853 $17,526 $20,220 $22,785 $23,798

17 Retail Revenue & Expenses Revenue Mgmt. Assump. Number of Events per Year Number of Year 1 Year 2 Year 3 Year 4 Year 5 Participants Year 1 Year 2 Year 3 Year 4 Year 5 Ice Hockey Rental - Small $ $1,620 $1,890 $2,160 $2,430 $2,565 Ice Hockey Travel League Rental - Youth Teams $ $240 $300 $360 $420 $420 Ice Hockey Travel League Rental - Pro Teams $ $120 $150 $180 $180 $180 Ice Hockey Camp/Clinic Rental - Pro Camp $ $30 $30 $30 $30 $30 Ice Hockey Camp/Clinic Rental - Youth Clinic $ $38 $50 $63 $75 $ Area Revenue $2,048 $2,420 $2,793 $3,135 $3,270 Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Retail Product Cost 55% Gross Revenue $1,126 $1,331 $1,536 $1,724 $1,799 Retail Wages 15% Gross Revenue $307 $363 $419 $470 $491 Area Expense $1,434 $1,694 $1,955 $2,195 $2,289 Net Revenue 16 $614 $726 $838 $941 $981

18 Indoor Ice Rink Rental Revenue & Expenses Revenue Mgmt. Assump. Price per Session Number per Session Sellable Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sessions Year 1 Year 2 Year 3 Year 4 Year 5 Full Ice Rink Rentals Sept. - Oct. Rentals $/Hour *1 $210 $210 $221 $221 $ $37,800 $41,580 $46,715 $49,051 $53,049 Nov.- Dec. Rentals $/Hour $210 $210 $221 $221 $ $50,400 $55,440 $62,287 $65,401 $70,731 Jan. - Feb. Rentals $/Hour $210 $210 $221 $221 $ $50,400 $55,440 $62,287 $65,401 $70,731 Mar. - Apr. Rentals $/Hour $210 $210 $221 $221 $ $50,400 $55,440 $62,287 $65,401 $70,731 May - June Rentals $/Hour $210 $210 $221 $221 $ $37,800 $41,580 $46,715 $49,051 $53,049 July - Aug. Rentals $/Hour $210 $210 $221 $221 $ $25,200 $27,720 $31,143 $32,701 $35,366 Bulk Rental Discount 10% of Gross Revenue ($25,200) ($27,720) ($31,143) ($32,701) ($35,366) Non-capacity growth rate Capacity growth rate Area Revenue $226,800 $249,480 $280,291 $294,305 $318,291 Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Supervision/Maint. Staff 12% Rev $27,216 $29,938 $33,635 $35,317 $38,195 Area Expense Net Revenue Pricing Notes *1 Eagles Ice Arena 1, , , , , $205/hour 17 $27,216 $29,938 $33,635 $35,317 $38,195 $199,584 $219,542 $246,656 $258,989 $280,096

19 Local/Weekday Food & Beverage Revenue & Expenses Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Concessions Sales $15,000 $16,500 $17,655 $18,538 $19,094 Vending Income 10% Concession sales $1,500 $1,575 $1,654 $1,736 $1,823 Area Revenue $16,500 $18,075 $19,309 $20,274 $20,917 Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Concessions Food 35% COGS $5,250 $5,775 $6,179 $6,488 $6,683 Vending Expenses 50% Vending Sales $750 $788 $827 $868 $912 Concessions Wages 25% Concession $3,750 $4,125 $4,414 $4,634 $4,773 Area Expense $9,750 $10,688 $11,420 $11,991 $12,368 Net Revenue 18 $6,750 $7,388 $7,889 $8,283 $8,549

20 Secondary Revenue Areas Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Advertisement/Sponsorship Income $50,000 $55,000 $60,500 $66,550 $73,205 Retail Tenant/Partner $7,200 $7,416 $7,638 $7,868 $8,104 Area Revenue $57,200 $62,416 $68,138 $74,418 $81,309 Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Advertisement hard cost Printing of Ad/Sponsors within facility(10% of Ad Inc.) $5,000 $5,500 $6,050 $6,655 $7,321 Sponsorship Commissions $5,000 $5,500 $6,050 $6,655 $7,321 Area Expense $10,000 $11,000 $12,100 $13,310 $14,641 Net Revenue 19 $47,200 $51,416 $56,038 $61,108 $66,668