Bowie Indoor Sports Facility - Summary (Bowie, MD) Five-Year Operating Pro Forma Date: May 2013 Developed for: The City of Bowie 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.
Admin./Flex Space Sports Perfr Court Facility Program Indoor Court Facility (COURT) Indoor Programming Product/Service Quantity Dimensions L (') W (') Approx. SF each Total SF % of Total Basketball Courts - Wood (one 94' x 50', two 84' x 50') 2 100 130 13,000 26,000 42.4% Basketball Courts - Wood (one 84' x 50'; two 74' x 50') 1 90 130 11,700 11,700 19.1% Volleyball Courts (Over Basketball Courts) 6 60 30 Over Courts 0.0% Total Court Area 37,700 61.4% Group X Rooms 0 40 30 1,200 0 0.0% Sports Performance Training 0 50 40 2,000 0 0.0% Fitness Locker Rooms 0 30 40 1,200 0 0.0% Total Training Area 0 0.0% Locker Rooms 2 30 20 600 1,200 2.0% Restrooms 2 25 20 500 1,000 1.6% Café with Seating & Storage 1 60 60 3,600 3,600 5.9% Divisible Multi Purpose Rooms 2 60 25 1,500 3,000 4.9% Lobby/Welcome Area 1 40 30 1,200 1,200 2.0% Court Storage 1 100 15 1,500 1,500 2.4% Office Area 4 15 15 225 900 1.5% Total Admin/Flex Space Area 12,400 20.2% Required SF for Products and Services 50,100 81.6% Mechanical, Electrical, Storage, etc. 7.5% of P&S SF 3,758 Common Area, Stairs, Circulation, etc. Total Estimated Indoor Facility SF Building Acreage 15% of P&S SF 7,515 61,373 1.41 Recommended Parking COURT Parking Spaces Total Outdoor Programming Product/Service Quantity Recommended: 4 per 1000 SF (10'x18') (20' x 20' Inc. aisles) Total Outdoor SF Total Estimated Complex SF Total Complex Acreage Dimensions L (') W (') Approx. SF each Total SF % of Total 245 20 20 400 98,196 100.0% 98,196 100% 159,569 100% 3.66
Admin./Flex Spa Baseball Turf Indoor Turf Facility (TURF) Indoor Programming Product/Service Quantity Dimensions L (') W (') Approx. SF each Total SF % of Total Turf Field (Unboarded) 2 200 100 20,000 40,000 76.2% Total Turf Area 40,000 76.2% Batting Cages/Pitching Tunnels 4 75 15 Over Turf 0.0% Baseball/Training Area 2 40 30 Over Turf 0.0% Coaches Office 1 15 15 225 225 0.4% Total Baseball Area 225 0.4% Locker Rooms 0 30 20 600 0 0.0% Storage 2 30 20 600 1,200 2.3% Lobby/Welcome Area 1 20 20 400 400 0.8% Offices 2 10 10 100 200 0.4% Restrooms 2 20 20 400 800 1.5% Total Admin/Flex Space Area 2,600 5.0% Required SF for Products and Services 42,825 81.6% Mechanical, Electrical, Storage, etc. 7.5% of P&S SF 3,212 Common Area, Stairs, Circulation, etc. Total Estimated Indoor Facility SF Building Acreage 15% of P&S SF 6,424 52,461 1.20 Recommended Parking Parking Spaces Total Outdoor Programming Product/Service Quantity Recommended: 4 per 1000 SF (10'x18') (20' x 20' Inc. aisles) Total Outdoor SF Total Estimated Complex SF Total Complex Acreage Dimensions L (') W (') Approx. SF each Total SF % of Total 210 20 20 400 83,937 100.0% 83,937 100% 136,398 100% 3.13
Admin./Flex Space Ice Indoor Ice Facility (ICE) Indoor Programming Product/Service Quantity Dimensions L (') W (') Approx. SF each Total SF % of Total NHL Ice Rink 1 200 85 17,000 17,000 24.3% Olympic Ice Rink 1 200 100 20,000 20,000 28.6% Stadium Seating (For event rink) 1 200 25 5,000 5,000 7.1% Skate and Equipment Rental 1 30 30 900 900 1.3% Zamboni and Equipment Storage 1 30 30 900 900 1.3% Total Ice Area 43,800 62.5% Coaches/Ref Rooms 2 15 15 225 450 0.6% Locker Rooms 8 25 20 500 4,000 5.7% Alternate Girls Locker Rooms 2 25 20 500 1,000 1.4% DJ Area 1 8 8 64 64 0.1% Storage 2 30 20 600 1,200 1.7% Lobby/Welcome Area 1 20 20 400 400 0.6% Retail Area 1 25 20 500 500 0.7% Offices 2 10 10 100 200 0.3% Restrooms 2 25 25 625 1,250 1.8% Total Admin/Flex Space Area 9,064 12.9% Required SF for Products and Services 52,864 75.5% Mechanical, Electrical, Storage, etc. 7.5% of P&S SF 3,965 Common Area, Stairs, Circulation, etc. Total Estimated Indoor Facility SF Building Acreage 25% of P&S SF 13,216 70,045 1.61 Recommended Parking Parking Spaces Total Outdoor Programming Product/Service Quantity Recommended: 4 per 1000 SF (10'x18') (20' x 20' Inc. aisles) Total Outdoor SF Total Estimated Complex SF Total Complex Acreage Dimensions L (') W (') Approx. SF each Total SF % of Total 280 20 20 400 112,072 100.0% 112,072 100% 182,116 100% 4.18
Flex Space Natatorium Indoor Aquatics Facility (AQUATICS) Indoor Programming Product/Service Quantity Dimensions L (') W (') Approx. SF each Total SF % of Total 50 meter Competition pool 1 164 75 12,300 12,300 35.6% Warm up area and Deck Space 1 N/A N/A 5,000 5,000 14.5% Mezzanine (Upper Level) 1 Additional Space 5,000 5,000 14.5% Pool Mechanical Room & Storage 1 100 15 1,500 1,500 4.3% Total Aquatics Area 4 20 20 400 23,800 68.8% Locker Rooms 2 40 30 1,200 2,400 6.9% Family Changing Room 3 8 8 64 192 0.6% Lobby/Welcome Area 1 20 20 400 400 1.2% Offices 2 10 10 100 200 0.6% Restrooms 2 25 25 625 1,250 3.6% Total Admin/Flex Space Area 4,442 12.8% Required SF for Products and Services 28,242 81.6% Mechanical, Electrical, Storage, etc. 7.5% of P&S SF 2,118 Common Area, Stairs, Circulation, etc. Total Estimated Indoor Facility SF Building Acreage 15% of P&S SF 4,236 34,596 0.79 Recommended Parking Parking Spaces Total Outdoor Programming Product/Service Quantity Recommended: 4 per 1000 SF (10'x18') (20' x 20' Inc. aisles) Total Outdoor SF Total Estimated Complex SF Total Complex Acreage Dimensions L (') W (') Approx. SF each Total SF % of Total 138 20 20 400 55,354 100.0% 55,354 100% 89,951 100% 2.06
Total Facility Revenue & Expenses- AQUATIC Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Aquatic Rental $382,104 $420,314 $485,463 $509,736 $561,984 Aquatic Programs $23,600 $25,960 $29,984 $31,483 $34,710 Aquatic Events $27,000 $27,000 $28,350 $39,900 $41,895 Secondary Areas $6,250 $6,563 $6,891 $7,235 $7,597 Food & Beverage $39,959 $41,957 $44,055 $46,257 $48,570 Total Revenue $478,913 $521,794 $594,742 $634,612 $694,756 Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Aquatic Rental $74,745 $82,220 $90,441 $94,964 $99,712 Aquatic Programs $12,956 $13,003 $14,693 $15,323 $16,678 Aquatic Events $2,700 $2,700 $2,835 $3,990 $4,190 Secondary Areas $1,250 $1,313 $1,378 $1,447 $1,519 Food & Beverage $26,700 $28,035 $29,437 $30,908 $32,454 Total Cost of Goods Sold $118,351 $127,270 $138,784 $146,632 $154,553 Gross Margin $360,562 $394,524 $455,958 $487,980 $540,204 % of Revenue 75% 76% 77% 77% 78% Facility Expenses $563,390 $580,292 $597,701 $615,632 $634,101 Operating Expense $0 $0 $0 $0 $0 Management Payroll $226,200 $230,724 $235,338 $240,045 $244,846 Lifeguard Payroll $156,000 $159,120 $162,302 $165,548 $168,859 Payroll Taxes/Benefits/Bonus $73,760 $76,117 $78,605 $80,867 $83,100 Total Operating Expenses $1,019,350 $1,046,253 $1,073,946 $1,102,092 $1,130,906 % of Revenue 213% 201% 181% 174% 163% Net Operating (Loss) ($658,788) ($651,729) ($617,988) ($614,112) ($590,702) % of Revenue -138% -125% -104% -97% -85% Annual Debt Service $0 $0 $0 $0 $0 Total Net (Loss) ($658,788) ($651,729) ($617,988) ($614,112) ($590,702) Cost Recovery 0.42 0.44 0.49 0.51 0.54 Annual Net Income Sensitivity Analysis Percent of Baseline Year 1 Year 2 Year 3 Year 4 Year 5 110% ($622,732) ($612,277) ($572,393) ($565,314) ($536,682) 90% ($694,844) ($691,182) ($663,584) ($662,910) ($644,723) 80% ($730,900) ($730,634) ($709,180) ($711,708) ($698,743) 70% ($766,956) ($770,087) ($754,776) ($760,506) ($752,763) 60% ($803,013) ($809,539) ($800,371) ($809,304) ($806,784)
Total Facility Revenue & Expenses- Total COURT Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Basketball Rental $235,230 $287,709 $348,912 $399,802 $455,580 Basketball Programs $41,450 $43,523 $47,984 $50,383 $55,547 Volleyball Rental $41,988 $50,937 $61,619 $70,186 $79,877 Volleyball Programs $33,200 $34,860 $38,433 $40,355 $44,491 Wrestling Rental $5,000 $6,160 $7,502 $8,639 $9,872 Cheer/Twirl Rental $3,000 $3,696 $4,501 $5,184 $5,923 Indoor Court Events $20,750 $20,750 $21,788 $30,975 $32,524 Court Rental $8,275 $9,103 $10,513 $11,039 $12,171 Secondary Areas $6,250 $6,563 $6,891 $7,235 $7,597 Food & Beverage $70,885 $74,429 $78,151 $82,059 $86,161 Total Revenue $466,028 $537,728 $626,293 $705,856 $789,743 Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Basketball Rental $19,163 $21,043 $23,111 $24,249 $25,443 Basketball Programs $19,362 $18,589 $20,250 $21,262 $23,172 Volleyball Rental $2,924 $3,194 $3,491 $3,654 $3,826 Volleyball Programs $16,212 $15,628 $16,995 $17,845 $19,415 Secondary Areas $375 $413 $454 $476 $500 Cheer/Twirl Rental $225 $248 $272 $286 $300 Indoor Court Events $2,075 $2,075 $2,179 $3,098 $3,252 Court Rental $422 $442 $463 $475 $488 Secondary Areas $1,250 $1,313 $1,378 $1,447 $1,519 Food & Beverage $47,364 $49,732 $52,219 $54,830 $57,572 Total Cost of Goods Sold $109,372 $112,676 $120,812 $127,622 $135,487 Gross Margin $356,656 $425,053 $505,481 $578,234 $654,256 % of Revenue 77% 79% 81% 82% 83% Facility Expenses $373,821 $385,036 $396,587 $408,485 $420,739 Operating Expense $0 $0 $0 $0 $0 Management Payroll $421,720 $430,154 $438,757 $447,533 $456,483 Payroll Taxes/Benefits/Bonus $94,633 $97,248 $99,961 $102,712 $105,464 Existing Facility & Operating Expenses $186,400 $190,128 $193,931 $197,809 $201,765 Total Operating Expenses $1,076,575 $1,102,566 $1,129,235 $1,156,538 $1,184,452 % of Revenue 231% 205% 180% 164% 150% Net Operating (Loss) ($719,919) ($677,513) ($623,755) ($578,304) ($530,196) % of Revenue -154% -126% -100% -82% -67% Annual Debt Service $0 $0 $0 $0 $0 Total Net (Loss) ($719,919) ($677,513) ($623,755) ($578,304) ($530,196) Cost Recovery 0.39 0.44 0.50 0.55 0.60 Annual Net Income Sensitivity Analysis Percent of Baseline Year 1 Year 2 Year 3 Year 4 Year 5 110% ($684,253) ($635,008) ($573,207) ($520,481) ($464,770) 90% ($755,584) ($720,018) ($674,303) ($636,128) ($595,622) 80% ($791,250) ($762,524) ($724,851) ($693,951) ($661,047) 70% ($826,915) ($805,029) ($775,399) ($751,775) ($726,473) 60% ($862,581) ($847,534) ($825,947) ($809,598) ($791,898)
Total Facility Revenue & Expenses- ICE Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Ice Hockey Rental $347,531 $364,908 $402,311 $422,426 $465,725 Ice Program Rental $193,824 $203,516 $224,376 $235,595 $259,743 Ice Programs $172,750 $181,388 $199,980 $209,979 $231,502 Ice Events $51,000 $51,000 $53,550 $75,600 $79,380 Secondary Areas $6,250 $6,563 $6,891 $7,235 $7,597 Food & Beverage $80,902 $84,947 $89,194 $93,654 $98,337 Total Revenue $852,257 $892,320 $976,301 $1,044,489 $1,142,283 Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Ice Hockey Rental $13,987 $14,686 $15,421 $16,192 $17,001 Ice Program Rental $31,081 $27,639 $29,912 $31,403 $34,005 Ice Programs $81,774 $78,502 $86,322 $90,533 $99,585 Ice Events $5,100 $5,100 $5,355 $7,560 $7,938 Secondary Areas $1,250 $1,313 $1,378 $1,447 $1,519 Food & Beverage $54,057 $56,760 $59,598 $62,578 $65,707 Total Cost of Goods Sold $187,250 $184,000 $197,985 $209,712 $225,755 Gross Margin $665,008 $708,320 $778,316 $834,776 $916,528 % of Revenue 78% 79% 80% 80% 80% Facility Expenses $620,634 $639,253 $658,431 $678,184 $698,529 Operating Expense $0 $0 $0 $0 $0 Management Payroll $333,320 $339,986 $346,786 $353,722 $360,796 Payroll Taxes/Benefits/Bonus $73,422 $75,123 $77,135 $79,400 $81,541 Total Operating Expenses $1,027,376 $1,054,362 $1,082,352 $1,111,306 $1,140,867 % of Revenue 121% 118% 111% 106% 100% Net Operating (Loss) ($362,368) ($346,042) ($304,036) ($276,529) ($224,339) % of Revenue -43% -39% -31% -26% -20% Annual Debt Service $0 $0 $0 $0 $0 Total Net (Loss) ($362,368) ($346,042) ($304,036) ($276,529) ($224,339) Cost Recovery 0.70 0.72 0.76 0.79 0.84 Annual Net Income Sensitivity Analysis Percent of Baseline Year 1 Year 2 Year 3 Year 4 Year 5 110% ($295,868) ($275,210) ($226,205) ($193,052) ($132,686) 90% ($428,869) ($416,874) ($381,868) ($360,007) ($315,992) 80% ($495,370) ($487,706) ($459,699) ($443,485) ($407,645) 70% ($561,871) ($558,538) ($537,531) ($526,962) ($499,297) 60% ($628,372) ($629,370) ($615,363) ($610,440) ($590,950)
Total Facility Revenue & Expenses- TURF Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Soccer Rental $59,470 $65,417 $79,155 $83,112 $91,631 Soccer Programs $30,000 $31,500 $34,729 $36,465 $40,203 Lacrosse Rental $45,216 $49,738 $60,182 $63,192 $69,669 Lacrosse Programs $34,000 $35,700 $39,359 $41,327 $45,563 Football Rental $8,580 $9,438 $11,420 $11,991 $13,220 Football Programs $34,000 $35,700 $39,359 $41,327 $45,563 Baseball/Softball Rental $20,424 $22,466 $27,184 $28,544 $31,469 Baseball/Softball Programs $20,424 $22,466 $27,184 $28,544 $31,469 Field Rental $12,930 $14,223 $17,210 $18,070 $19,923 Field Events $10,500 $10,500 $11,025 $15,750 $16,538 Secondary Areas $6,250 $6,563 $6,891 $7,235 $7,597 Food & Beverage $60,592 $63,622 $66,803 $70,143 $73,650 Total Revenue $342,386 $367,333 $420,501 $445,700 $486,495 Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Soccer Rental $7,502 $8,144 $8,850 $9,239 $9,647 Soccer Programs $14,160 $13,608 $14,818 $15,558 $16,949 Lacrosse Rental $5,670 $6,147 $6,672 $6,960 $7,263 Lacrosse Programs $15,600 $12,196 $13,405 $14,076 $15,474 Football Rental $975 $1,073 $1,180 $1,239 $1,301 Football Programs $15,600 $14,952 $16,299 $17,114 $18,664 Baseball/Softball Rental $3,330 $3,663 $4,029 $4,231 $4,442 Baseball/Softball Programs $16,329 $15,701 $17,092 $17,947 $19,547 Field Rental $1,740 $1,824 $1,916 $1,967 $2,021 Field Events $1,050 $1,050 $1,103 $1,575 $1,654 Secondary Areas $1,250 $1,313 $1,378 $1,447 $1,519 Food & Beverage $40,486 $42,511 $44,636 $46,868 $49,212 Total Cost of Goods Sold $123,692 $122,180 $131,379 $138,222 $147,692 Gross Margin $218,694 $245,152 $289,122 $307,478 $338,803 % of Revenue 64% 67% 69% 69% 70% Facility Expenses $313,164 $322,559 $332,235 $342,202 $352,468 Operating Expense $0 $0 $0 $0 $0 Management Payroll $223,080 $227,542 $232,092 $236,734 $241,469 Payroll Taxes/Benefits/Bonus $54,833 $56,137 $57,766 $59,397 $61,037 Total Operating Expenses $591,076 $606,237 $622,094 $638,334 $654,974 % of Revenue 173% 165% 148% 143% 135% Net Operating (Loss) ($372,383) ($361,085) ($332,972) ($330,855) ($316,171) % of Revenue -109% -98% -79% -74% -65% Annual Debt Service $0 $0 $0 $0 $0 Total Net (Loss) ($372,383) ($361,085) ($332,972) ($330,855) ($316,171) Cost Recovery 0.48 0.50 0.56 0.57 0.61 Annual Net Income Sensitivity Analysis Percent of Baseline Year 1 Year 2 Year 3 Year 4 Year 5 110% ($350,513) ($336,570) ($304,060) ($300,108) ($282,291) 90% ($394,252) ($385,600) ($361,884) ($361,603) ($350,052) 80% ($416,121) ($410,115) ($390,796) ($392,351) ($383,932) 70% ($437,991) ($434,631) ($419,708) ($423,099) ($417,812) 60% ($459,860) ($459,146) ($448,620) ($453,847) ($451,692)
Bowie Indoor Sports Facility - Aquatic (Bowie, MD) Five-Year Operating Pro Forma Date: May 2013 Developed for: The City of Bowie 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.
Flex Space Natatorium Indoor Aquatics Facility (AQUATICS) Indoor Programming Product/Service Quantity Dimensions L (') W (') Approx. SF each Total SF % of Total 50 meter Competition pool 1 164 75 12,300 12,300 35.6% Warm up area and Deck Space 1 N/A N/A 5,000 5,000 14.5% Mezzanine (Upper Level) 1 Additional Space 5,000 5,000 14.5% Pool Mechanical Room & Storage 1 100 15 1,500 1,500 4.3% Total Aquatics Area 4 20 20 400 23,800 68.8% Locker Rooms 2 40 30 1,200 2,400 6.9% Family Changing Room 3 8 8 64 192 0.6% Lobby/Welcome Area 1 20 20 400 400 1.2% Offices 2 10 10 100 200 0.6% Restrooms 2 25 25 625 1,250 3.6% Total Admin/Flex Space Area 4,442 12.8% Required SF for Products and Services 28,242 81.6% Mechanical, Electrical, Storage, etc. 7.5% of P&S SF 2,118 Common Area, Stairs, Circulation, etc. Total Estimated Indoor Facility SF Building Acreage 15% of P&S SF 4,236 34,596 0.79 Recommended Parking Parking Spaces Total Outdoor Programming Product/Service Quantity Recommended: 4 per 1000 SF (10'x18') (20' x 20' Inc. aisles) Total Outdoor SF Total Estimated Complex SF Total Complex Acreage Dimensions L (') W (') Approx. SF each Total SF % of Total 138 20 20 400 55,354 100.0% 55,354 100% 89,951 100% 2.06
Capital Costs and Start-up Expenses - AQUATIC Details Quantity Unit Cost/Unit Budgeted Cost % of Total Land Cost Land Acquisition Real estate land acquisition cost $0 0.0% Land Cost Total $0 0.0% Hard Costs Structure Cost 34,596 SF $65 $2,248,769 38.6% Site Development Paving, Grading, Utilities, Landscaping, improvement allocation for indoor 2.06 Acre $275,000 $567,871 9.8% facility Contingency 8.00% $225,331 3.9% Hard Cost Total $3,041,971 52.2% Aquatic Area 50 Meter Pool Including Deck, Blocks, Stantions, Timing Systems, Equipment, Etc. 1 LS $1,200,000 $1,200,000 20.6% Floating Divider for Short Course 1 LS $25,000 $25,000 0.4% Pool Mechanical Equipment Included in Pool Construction 0 LS $200,000 $0 0.0% Pool Equipment Training, Safety, Etc. 1 LS $50,000 $50,000 0.9% Bleachers (Spectators) Tip and Roll 6 Ea. $3,500 $21,000 0.4% Miscellaneous Misc. Pool Equipment Training & Safety Equipment 1 LS $50,000 $50,000 0.9% Tax & Shipping 9.00% $121,140 2.1% Contingency 5.00% $73,357 1.3% Field and Sport Equipment Cost Total $1,540,497 26.5% FURNISHINGS Furnishings Hardware, décor etc. 1 LS $50,000 $50,000 0.9% Software 1 LS $15,000 $15,000 0.3% MISCELLANEOUS Locker Rooms Buildout 2,400 SF $65 $156,000 2.7% Signage & Banners Interior and Exterior 1 LS $10,000 $30,000 0.5% Maintenance Equipment 1 LS $5,000 $5,000 0.1% Tax & Shipping 9.00% $23,040 0.4% Contingency 5.00% $13,952 0.2% Furniture, Fixtures & Equipment Cost Total $292,992 5.0% Soft Costs Architecture and Engineering % of Structure and Site work 4% $195,018.42 3.3% Construction Management Fee 2% $97,509 1.7% Design-Build Fee 5% $243,773 4.2% Developer Fee 1.5% $73,132 1.3% Impact Fees $10,000 0.2% Performance Bond 0.75% $36,566 0.6% Permits/Inspections 0.50% $24,377 0.4% Pre-Opening Management TBD 0.0% Pre-Launch Professional Services Legal, Accounting, Bank, Consulting $30,000 0.5% Interest on Construction Loan 100% Equity $0 0.0% Presentation Materials Renderings, Etc. $10,000 0.2% Marketing Allowance Pre-Opening Marketing Costs $75,000 1.3% Staffing Pre-Opening Staffing Compensation $88,597 1.5% Taxes and Benefits Pre-Opening Salary Taxes and Benefits $17,522 0.3% Contingency 5.00% $45,075 0.8% Soft Cost Total $946,569 16.3% Working Capital Reserve $0 0% Aquatic Cost Total $5,822,029 100.0% $168.28
Total Facility Revenue & Expenses- AQUATIC Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Aquatic Rental $382,104 $420,314 $485,463 $509,736 $561,984 Aquatic Programs $23,600 $25,960 $29,984 $31,483 $34,710 Aquatic Events $27,000 $27,000 $28,350 $39,900 $41,895 Secondary Areas $6,250 $6,563 $6,891 $7,235 $7,597 Food & Beverage $39,959 $41,957 $44,055 $46,257 $48,570 Total Revenue $478,913 $521,794 $594,742 $634,612 $694,756 Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Aquatic Rental $74,745 $82,220 $90,441 $94,964 $99,712 Aquatic Programs $12,956 $13,003 $14,693 $15,323 $16,678 Aquatic Events $2,700 $2,700 $2,835 $3,990 $4,190 Secondary Areas $1,250 $1,313 $1,378 $1,447 $1,519 Food & Beverage $26,700 $28,035 $29,437 $30,908 $32,454 Total Cost of Goods Sold $118,351 $127,270 $138,784 $146,632 $154,553 Gross Margin $360,562 $394,524 $455,958 $487,980 $540,204 % of Revenue 75% 76% 77% 77% 78% Facility Expenses $563,390 $580,292 $597,701 $615,632 $634,101 Operating Expense $0 $0 $0 $0 $0 Management Payroll $226,200 $230,724 $235,338 $240,045 $244,846 Lifeguard Payroll $156,000 $159,120 $162,302 $165,548 $168,859 Payroll Taxes/Benefits/Bonus $73,760 $76,117 $78,605 $80,867 $83,100 Total Operating Expenses $1,019,350 $1,046,253 $1,073,946 $1,102,092 $1,130,906 % of Revenue 213% 201% 181% 174% 163% Net Operating (Loss) ($658,788) ($651,729) ($617,988) ($614,112) ($590,702) % of Revenue -138% -125% -104% -97% -85% Annual Debt Service $0 $0 $0 $0 $0 Total Net (Loss) ($658,788) ($651,729) ($617,988) ($614,112) ($590,702) Cost Recovery 0.42 0.44 0.49 0.51 0.54 Annual Net Income Sensitivity Analysis Percent of Baseline Year 1 Year 2 Year 3 Year 4 Year 5 110% ($622,732) ($612,277) ($572,393) ($565,314) ($536,682) 90% ($694,844) ($691,182) ($663,584) ($662,910) ($644,723) 80% ($730,900) ($730,634) ($709,180) ($711,708) ($698,743) 70% ($766,956) ($770,087) ($754,776) ($760,506) ($752,763) 60% ($803,013) ($809,539) ($800,371) ($809,304) ($806,784)
Facility Expenses - AQUATIC Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Alarm System Maintenance $1,325 $1,365 $1,406 $1,448 $1,491 Facility Maintenance & Cleaning Expense $0.55/SF $20,170 $20,775 $21,398 $22,040 $22,701 Facility/Medical Supplies $10,600 $10,918 $11,246 $11,583 $11,930 Lawn Care $300/Mo $954 $983 $1,012 $1,042 $1,074 Maint. & Repairs $2.60/SF $95,348 $98,208 $101,154 $104,189 $107,315 Pool Chemicals $37,100 $38,213 $39,359 $40,540 $41,756 Utility - Electricity Expense $9/SF $330,050 $339,952 $350,150 $360,655 $371,474 Utility - Natural Gas Expense $1.20/SF $44,007 $45,327 $46,687 $48,087 $49,530 Utility - Water Expense $.65/SF $23,837 $24,552 $25,289 $26,047 $26,829 Total Facility Expense $563,390 $580,292 $597,701 $615,632 $634,101
Management Payroll Summary - Aquatic Management Position Mgmt. Assump Year 1 Year 2 Year 3 Year 4 Year 5 Aquatic Manager $62,400 $63,648 $64,921 $66,219 $67,544 Assistant Aquatic Manager $52,000 $53,040 $54,101 $55,183 $56,286 Aquatic Supervisor $31,200 $31,824 $32,460 $33,110 $33,772 Mktg & Bus. Dev. Dir./Bookkeeper $9,100 $9,282 $9,468 $9,657 $9,850 Facility Manager $9,100 $9,282 $9,468 $9,657 $9,850 Admin 6000 hours at $10 (120/week) $62,400 $63,648 $64,921 $66,219 $67,544 Total Management Payroll $226,200 $230,724 $235,338 $240,045 $244,846
Payroll - Lifeguards Management Position Mgmt. Assump Year 1 Year 2 Year 3 Year 4 Year 5 Lifeguards 250 hours/wk at $12 $156,000 $159,120 $162,302 $165,548 $168,859 Total Management Payroll $156,000 $159,120 $162,302 $165,548 $168,859
Payroll Summary - Aquatic Total Payroll Summary Mgmt. Assump Pre-Open Year 1 Year 2 Year 3 Year 4 Year 5 Mgmt Aquatic Manager 6 months prior $31,200 $62,400 $63,648 $64,921 $66,219 $67,544 Mgmt Assistant Aquatic Manager 6 months prior $26,000 $52,000 $53,040 $54,101 $55,183 $56,286 Mgmt Aquatic Supervisor 6 months prior $15,600 $31,200 $31,824 $32,460 $33,110 $33,772 Mgmt Mktg & Bus. Dev. Dir./Bookkeeper 6 months prior $4,550 $9,100 $9,282 $9,468 $9,657 $9,850 Mgmt Facility Manager 6 months prior $4,550 $9,100 $9,282 $9,468 $9,657 $9,850 Mgmt Admin 3 months prior $15,600 $62,400 $63,648 $64,921 $66,219 $67,544 Subtotal Management Payroll $97,500 $226,200 $230,724 $235,338 $240,045 $244,846 Staff Aquatic Staff 1 month prior $6,404 $76,845 $84,320 $92,541 $97,064 $101,812 Staff Aquatic Event Staff 1 month prior $225 $2,700 $2,700 $2,835 $3,990 $4,190 Staff Lifegaurds 1 month Prior $13,000 $156,000 $159,120 $162,302 $165,548 $168,859 Staff Maintenance Staff 1 month prior $1,681 $20,170 $20,775 $21,398 $22,040 $22,701 Staff Food and Beverage Staff 1 month prior $757 $9,082 $9,536 $10,012 $10,513 $11,039 Subtotal Sport Admin Staff $22,066 $264,796 $276,450 $289,089 $299,155 $308,601 Instructor Aquatic Program Instructors Per Diem $9,440 $10,384 $11,994 $12,593 $13,884 Subtotal Instructors (COGS) $9,440 $10,384 $11,994 $12,593 $13,884 Payroll Subtotal $119,566 $500,436 $517,558 $536,421 $551,793 $567,331 Health Insurance 3 employees @ 500/ $5,565 $22,260 $22,928 $23,616 $24,324 $25,054 Payroll Services $2,400 $2,472 $2,546 $2,623 $2,701 Payroll Taxes 10.00% of payroll (e $11,957 $49,100 $50,717 $52,443 $53,920 $55,345 Payroll Taxes/Benefits Totals $17,522 $73,760 $76,117 $78,605 $80,867 $83,100 Total Payroll $574,196 $593,675 $615,026 $632,660 $650,430 **Notes: Multiple Management Allotments can be shared among single positions Management Allotments are a percentage of revenue per associated business unit
Aquatic Rental Revenue & Expenses Revenue Mgmt. Assump. Price per Session (Hour) 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 Open Swimming Day Pass $/Session $10 $10 $11 $11 $11 81 89 98 103 108 12 $9,720 $10,692 $12,349 $12,967 $14,296 Monthly Pass $/Month $50 $50 $53 $53 $55 44 48 53 56 59 12 $26,400 $29,040 $33,541 $35,218 $38,828 Individual Pool Lane Rentals Sept. $/Hour/25 yd. Lane $13 $13 $14 $14 $14 123 135 149 156 164 1 $1,601 $1,761 $2,034 $2,135 $2,354 Oct. $/Hour/25 yd. Lane $13 $13 $14 $14 $14 123 135 149 156 164 1 $1,601 $1,761 $2,034 $2,135 $2,354 Nov. $/Hour/25 yd. Lane $13 $13 $14 $14 $14 123 135 149 156 164 1 $1,601 $1,761 $2,034 $2,135 $2,354 Dec. $/Hour/25 yd. Lane $13 $13 $14 $14 $14 123 135 149 156 164 1 $1,601 $1,761 $2,034 $2,135 $2,354 Jan. $/Hour/25 yd. Lane $13 $13 $14 $14 $14 123 135 149 156 164 1 $1,601 $1,761 $2,034 $2,135 $2,354 Feb. $/Hour/25 yd. Lane $13 $13 $14 $14 $14 123 135 149 156 164 1 $1,601 $1,761 $2,034 $2,135 $2,354 Mar. $/Hour/25 yd. Lane $13 $13 $14 $14 $14 123 135 149 156 164 1 $1,601 $1,761 $2,034 $2,135 $2,354 Apr. $/Hour/25 yd. Lane $13 $13 $14 $14 $14 109 120 132 139 146 1 $1,423 $1,565 $1,808 $1,898 $2,092 May $/Hour/25 yd. Lane $13 $13 $14 $14 $14 109 120 132 139 146 1 $1,423 $1,565 $1,808 $1,898 $2,092 June $/Hour/25 yd. Lane $13 $13 $14 $14 $14 96 105 116 122 128 1 $1,245 $1,369 $1,582 $1,661 $1,831 July $/Hour/25 yd. Lane $13 $13 $14 $14 $14 96 105 116 122 128 1 $1,245 $1,369 $1,582 $1,661 $1,831 Aug. $/Hour/25 yd. Lane $13 $13 $14 $14 $14 96 105 116 122 128 1 $1,245 $1,369 $1,582 $1,661 $1,831 Team Pool Rentals Sept. $/Hour/50 m Lane $100 $100 $105 $105 $110 287 316 348 365 383 1 $28,728 $31,601 $36,499 $38,324 $42,252 Oct. $/Hour/50 m Lane $100 $100 $105 $105 $110 287 316 348 365 383 1 $28,728 $31,601 $36,499 $38,324 $42,252 Nov. $/Hour/50 m Lane $100 $100 $105 $105 $110 287 316 348 365 383 1 $28,728 $31,601 $36,499 $38,324 $42,252 Dec. $/Hour/50 m Lane $100 $100 $105 $105 $110 287 316 348 365 383 1 $28,728 $31,601 $36,499 $38,324 $42,252 Jan. $/Hour/50 m Lane $100 $100 $105 $105 $110 287 316 348 365 383 1 $28,728 $31,601 $36,499 $38,324 $42,252 Feb. $/Hour/50 m Lane $100 $100 $105 $105 $110 287 316 348 365 383 1 $28,728 $31,601 $36,499 $38,324 $42,252 Mar. $/Hour/50 m Lane $100 $100 $105 $105 $110 287 316 348 365 383 1 $28,728 $31,601 $36,499 $38,324 $42,252 Apr. $/Hour/50 m Lane $100 $100 $105 $105 $110 255 281 309 324 341 1 $25,536 $28,090 $32,443 $34,066 $37,557 May $/Hour/50 m Lane $100 $100 $105 $105 $110 255 281 309 324 341 1 $25,536 $28,090 $32,443 $34,066 $37,557 June $/Hour/50 m Lane $100 $100 $105 $105 $110 223 246 270 284 298 1 $22,344 $24,578 $28,388 $29,807 $32,863 July $/Hour/50 m Lane $100 $100 $105 $105 $110 223 246 270 284 298 1 $22,344 $24,578 $28,388 $29,807 $32,863 Aug. $/Hour/50 m Lane $100 $100 $105 $105 $110 223 246 270 284 298 1 $22,344 $24,578 $28,388 $29,807 $32,863 Aquatic Birthday Parties $/Party $150 $150 $158 $158 $165 5 6 6 6 7 12 $9,000 $9,900 $11,435 $12,006 $13,237 Non-capacity growth rate 1.00 1.05 1.00 1.05 1.10 1.10 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 Area Revenue $382,104 $420,314 $485,463 $509,736 $561,984 Expense Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Supervision/Maintenance Staff Pool Monitor ($15/hr) $74,745 $82,220 $90,441 $94,964 $99,712 Area Expense Net Revenue $74,745 $82,220 $90,441 $94,964 $99,712 $307,359 $338,095 $395,022 $414,773 $462,273
Aquatic Program Revenue & Expenses Revenue Mgmt. Assump. Price per Session (Hour) 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 Programs Summer Camp Full Day $/Week $200 $200 $210 $210 $221 20 22 24 25 27 4 $16,000 $17,600 $20,328 $21,344 $23,532 Summer Camp Half Day $/Week $100 $100 $105 $105 $110 10 11 12 13 13 4 $4,000 $4,400 $5,082 $5,336 $5,883 Summer Camp Care $/Week $30 $30 $32 $32 $33 30 33 36 38 40 4 $3,600 $3,960 $4,574 $4,802 $5,295 Non-capacity growth rate 1.00 1.05 1.00 1.05 1.10 1.10 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 Area Revenue $23,600 $25,960 $29,984 $31,483 $34,710 Expense Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Supervision/Maintenance Staff Pool Monitor ($15/hr) $2,100 $2,100 $2,100 $2,100 $2,100 Aquatic Program Instructors 40% of instructor revenue $9,440 $10,384 $11,994 $12,593 $13,884 Advertising 2% Gross Rev (6% year 1) $1,416 $519 $600 $630 $694 Area Expense Net Revenue $12,956 $13,003 $14,693 $15,323 $16,678 $10,644 $12,957 $15,291 $16,160 $18,032
Aquatic Event Revenue & Expenses Revenue Mgmt Assmp. Amount per Activity Number of Activities per Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Participants Year 1 Year 2 Year 3 Year 4 Year 5 Rental Competitions $/weekend $8,000 $8,000 $8,400 $8,400 $8,820 3 3 3 4 4 1 $24,000 $24,000 $25,200 $33,600 $35,280 Rental Events $/day $3,000 $3,000 $3,150 $3,150 $3,308 1 1 1 2 2 1 $3,000 $3,000 $3,150 $6,300 $6,615 Non-capacity growth rate 1.00 1.05 1.00 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 Total Weekends 4 4 4 6 6 Total Teams 154 154 154 220 220 Area Revenue $27,000 $27,000 $28,350 $39,900 $41,895 Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Supervision/Maintenance Staff 10% Rev $2,700 $2,700 $2,835 $3,990 $4,190 Area Expense $2,700 $2,700 $2,835 $3,990 $4,190 Net Revenue $24,300 $24,300 $25,515 $35,910 $37,706
Secondary Revenue Areas Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Advertisement/Sponsorship Income $6,250 $6,563 $6,891 $7,235 $7,597 Area Revenue $6,250 $6,563 $6,891 $7,235 $7,597 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.) $625 $656 $689 $724 $760 Sponsorship Comissions $625 $656 $689 $724 $760 Area Expense $1,250 $1,313 $1,378 $1,447 $1,519 Net Revenue $5,000 $5,250 $5,513 $5,788 $6,078
Food & Beverage Revenue & Expenses Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Concessions Sales - Court $64,441 $67,663 $71,046 $74,599 $78,329 Concessions Sales - Turf $55,084 $57,838 $60,730 $63,766 $66,955 Concessions Sales - Ice $73,547 $77,224 $81,086 $85,140 $89,397 Concessions Sales - Aquatic $36,326 $38,143 $40,050 $42,052 $44,155 Vending Income - Court 10% Concession sales $6,444 $6,766 $7,105 $7,460 $7,833 Vending Income - Turf 10% Concession sales $5,508 $5,784 $6,073 $6,377 $6,695 Vending Income - Ice 10% Concession sales $7,355 $7,722 $8,109 $8,514 $8,940 Vending Income - Aquatic 10% Concession sales $3,633 $3,814 $4,005 $4,205 $4,415 Area Revenue $252,338 $264,955 $278,203 $292,113 $306,718 Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Court Concessions Food 35% COGS $24,810 $26,050 $27,353 $28,720 $30,157 Concessions Non-food 10% Concession Sales $6,444 $6,766 $7,105 $7,460 $7,833 Concessions Wages 25% Concession Sales $16,110 $16,916 $17,762 $18,650 $19,582 Turf Concessions Food 35% COGS $21,207 $22,268 $23,381 $24,550 $25,777 Concessions Non-food 10% Concession Sales $5,508 $5,784 $6,073 $6,377 $6,695 Concessions Wages 25% Concession Sales $13,771 $14,459 $15,182 $15,942 $16,739 Ice Concessions Food 35% COGS $28,316 $29,731 $31,218 $32,779 $34,418 Concessions Non-food 10% Concession Sales $7,355 $7,722 $8,109 $8,514 $8,940 Concessions Wages 25% Concession Sales $18,387 $19,306 $20,271 $21,285 $22,349 Aquatic Concessions Food 35% COGS $13,986 $14,685 $15,419 $16,190 $17,000 Concessions Non-food 10% Concession Sales $3,633 $3,814 $4,005 $4,205 $4,415 Concessions Wages 25% Concession Sales $9,082 $9,536 $10,012 $10,513 $11,039 Area Expense $168,608 $177,038 $185,890 $195,184 $204,944 Net Revenue $83,730 $87,917 $92,313 $96,928 $101,775
Total Aquatic Year 1 Total Winter Session (Busiest Time) Aquatics Usage Annual Total Teams/Participants per Session Hours of Field Time Session Turf Utilization 1 Teams/Year Hours Annual % Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Open Swimming 5196 520 7.87% 866 953 1048 1100 1155 87 95 105 110 116 16.40% 18.04% 19.85% 20.84% 21.88% Lane Rentals 1368 171 2.59% 123 135 149 156 164 15 17 19 20 21 2.91% 3.21% 3.53% 3.70% 3.89% Pool Rentals 3192 3192 48.36% 287 316 348 365 383 287 316 348 365 383 54.41% 59.85% 65.84% 69.13% 72.58% Aquatic Sub-Total 3883 58.83% 389 428 471 495 519 73.73% 81.10% 89.21% 93.67% 98.35% Aquatic Revenue Generated $0 $66,677 $73,345 $84,713 $88,949 $98,066 Aquatic Revenue/Hour $0.00 $171.29 $171.29 $179.85 $179.85 $188.84 Total Aquatic Utilization 3883 58.83% 389 428 471 495 519 73.73% 81.10% 89.21% 93.67% 98.35% Total Aquatic Revenue Generated $382,104 $66,677 $73,345 $84,713 $88,949 $98,066 Total Aquatic Revenue/Hour $98.41 $171.29 $171.29 $179.85 $179.85 $188.84 Total Aquatic Revenue/SF $31.07
Bowie Indoor Sports Facility - Court (Bowie, MD) Five-Year Operating Pro Forma Date: May 2013 Developed for: The City of Bowie 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.
Admin./Flex Space Sports Perfr Court Facility Program Indoor Court Facility (COURT) Indoor Programming Product/Service Quantity Dimensions L (') W (') Approx. SF each Total SF % of Total Basketball Courts - Wood (one 94' x 50', two 84' x 50') 2 100 130 13,000 26,000 42.4% Basketball Courts - Wood (one 84' x 50'; two 74' x 50') 1 90 130 11,700 11,700 19.1% Volleyball Courts (Over Basketball Courts) 6 60 30 Over Courts 0.0% Total Court Area 37,700 61.4% Group X Rooms 0 40 30 1,200 0 0.0% Sports Performance Training 0 50 40 2,000 0 0.0% Fitness Locker Rooms 0 30 40 1,200 0 0.0% Total Training Area 0 0.0% Locker Rooms 2 30 20 600 1,200 2.0% Restrooms 2 25 20 500 1,000 1.6% Café with Seating & Storage 1 60 60 3,600 3,600 5.9% Divisible Multi Purpose Rooms 2 60 25 1,500 3,000 4.9% Lobby/Welcome Area 1 40 30 1,200 1,200 2.0% Court Storage 1 100 15 1,500 1,500 2.4% Office Area 4 15 15 225 900 1.5% Total Admin/Flex Space Area 12,400 20.2% Required SF for Products and Services 50,100 81.6% Mechanical, Electrical, Storage, etc. 7.5% of P&S SF 3,758 Common Area, Stairs, Circulation, etc. Total Estimated Indoor Facility SF Building Acreage 15% of P&S SF 7,515 61,373 1.41 Recommended Parking COURT Parking Spaces Total Outdoor Programming Product/Service Quantity Recommended: 4 per 1000 SF (10'x18') (20' x 20' Inc. aisles) Total Outdoor SF Total Estimated Complex SF Total Complex Acreage Dimensions L (') W (') Approx. SF each Total SF % of Total 245 20 20 400 98,196 100.0% 98,196 100% 159,569 100% 3.66
Capital Costs and Start-up Expenses - COURT Land Cost Hard Costs Details Quantity Unit Cost/Unit Budgeted Cost % of Total Land Acquisition Real estate land acquisition cost $0 0.0% Land Cost Total $0 0.0% Structure Cost 61,373 SF $65 $3,989,213 52.6% Site Development Paving, Grading, Utilities, Landscaping, improvement allocation for indoor facility 3.66 Acre $275,000 $1,007,377 13.3% Contingency 8.00% $399,727 5.3% Hard Cost Total Gymnasium Area $5,396,317 71.1% Wood Court Flooring 37,700 SF $9.25 $348,725 4.6% Basketball Net & Stanchion System Mechanical Roll-down system 18 Ea. $5,000 $90,000 1.2% Volleyball Net System Electronic System (Nets, Poles, Padding, etc.) 6 Ea. $10,000 $60,000 0.8% Scoreboards With Controllers 6 Ea. $5,000 $30,000 0.4% Benches (Participants) 12 Ea. $400 $4,800 0.1% Bleachers (Spectators) Tip and Roll 12 Ea. $2,500 $30,000 0.4% Curtains (Court) Mechanical Roll Down 8 Ea. $13,500 $108,000 1.4% Sports Performance Aerobic Flooring 0 SF $12 $0 0.0% Sports Performance Training Build Out & Equipment 0 SF $50 $0 0.0% Sports Performance Flooring 0 SF $5 $0 0.0% Miscellaneous Athletic Equipment Balls, Cones, & Training Equip. 1 LS $10,000 $10,000 0.1% Tax & Shipping 9.00% $61,337 0.8% Contingency 5.00% $37,143 0.5% Field and Sport Equipment Cost Total $780,005 10.3% FOOD & BEVERAGE Equipment 1 LS $50,000 $50,000 0.7% Finish Out 1 LS $30,000 $30,000 0.4% FURNISHINGS Furnishings Hardware, décor etc. 1 LS $50,000 $50,000 0.7% Software 1 LS $15,000 $15,000 0.2% MISCELLANEOUS Locker Rooms Buidlout 1,200 SF $20 $24,000 0.3% Signage & Banners Interior and Exterior 1 LS $30,000 $30,000 0.4% Maintenance Equipment 1 LS $5,000 $5,000 0.1% Tax & Shipping 9.00% $18,360 0.2% Contingency 5.00% $11,118 0.1% Furniture, Fixtures & Equipment Cost Total $233,478 3.1% Soft Costs Architecture and Engineering % of Structure and Site work 4% $256,392 3.4% Construction Management Fee 2% $128,196 1.7% Design-Build Fee 5% $320,490 4.2% Developer Fee 1.5% $96,147 1.3% Impact Fees $25,000 0.3% Performance Bond 0.75% $48,073 0.6% Permits/Inspections 0.50% $32,049 0.4% Pre-Opening Manangement TBD 0.0% Pre-Launch Professional Services Legal, Accounting, Bank, Consulting $20,000 0.3% Interest on Construction Loan 100% Equity $0 0.0% Presentation Materials Renderings, Etc. $10,000 0.1% Marketing Allowance Pre-Opening Marketing Costs $75,000 1.0% Staffing Pre-Opening Staffing Compensation $90,530 1.2% Taxes and Benefits Pre-Opening Salary Taxes and Benefits $20,547 0.3% Contingency 5.00% $56,121 0.7% Soft Cost Total $1,178,546 15.5% Working Capital Reserve $0 0.0% Court Cost Total $7,588,346 100.0% $123.64
Total Facility Revenue & Expenses- Total COURT Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Basketball Rental $235,230 $287,709 $348,912 $399,802 $455,580 Basketball Programs $41,450 $43,523 $47,984 $50,383 $55,547 Volleyball Rental $41,988 $50,937 $61,619 $70,186 $79,877 Volleyball Programs $33,200 $34,860 $38,433 $40,355 $44,491 Wrestling Rental $5,000 $6,160 $7,502 $8,639 $9,872 Cheer/Twirl Rental $3,000 $3,696 $4,501 $5,184 $5,923 Indoor Court Events $20,750 $20,750 $21,788 $30,975 $32,524 Court Rental $8,275 $9,103 $10,513 $11,039 $12,171 Secondary Areas $6,250 $6,563 $6,891 $7,235 $7,597 Food & Beverage $70,885 $74,429 $78,151 $82,059 $86,161 Total Revenue $466,028 $537,728 $626,293 $705,856 $789,743 Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Basketball Rental $19,163 $21,043 $23,111 $24,249 $25,443 Basketball Programs $19,362 $18,589 $20,250 $21,262 $23,172 Volleyball Rental $2,924 $3,194 $3,491 $3,654 $3,826 Volleyball Programs $16,212 $15,628 $16,995 $17,845 $19,415 Secondary Areas $375 $413 $454 $476 $500 Cheer/Twirl Rental $225 $248 $272 $286 $300 Indoor Court Events $2,075 $2,075 $2,179 $3,098 $3,252 Court Rental $422 $442 $463 $475 $488 Secondary Areas $1,250 $1,313 $1,378 $1,447 $1,519 Food & Beverage $47,364 $49,732 $52,219 $54,830 $57,572 Total Cost of Goods Sold $109,372 $112,676 $120,812 $127,622 $135,487 Gross Margin $356,656 $425,053 $505,481 $578,234 $654,256 % of Revenue 77% 79% 81% 82% 83% Facility Expenses $373,821 $385,036 $396,587 $408,485 $420,739 Operating Expense $0 $0 $0 $0 $0 Management Payroll $421,720 $430,154 $438,757 $447,533 $456,483 Payroll Taxes/Benefits/Bonus $94,633 $97,248 $99,961 $102,712 $105,464 Existing Facility & Operating Expenses $186,400 $190,128 $193,931 $197,809 $201,765 Total Operating Expenses $1,076,575 $1,102,566 $1,129,235 $1,156,538 $1,184,452 % of Revenue 231% 205% 180% 164% 150% Net Operating (Loss) ($719,919) ($677,513) ($623,755) ($578,304) ($530,196) % of Revenue -154% -126% -100% -82% -67% Annual Debt Service $0 $0 $0 $0 $0 Total Net (Loss) ($719,919) ($677,513) ($623,755) ($578,304) ($530,196) Cost Recovery 0.39 0.44 0.50 0.55 0.60 Annual Net Income Sensitivity Analysis Percent of Baseline Year 1 Year 2 Year 3 Year 4 Year 5 110% ($684,253) ($635,008) ($573,207) ($520,481) ($464,770) 90% ($755,584) ($720,018) ($674,303) ($636,128) ($595,622) 80% ($791,250) ($762,524) ($724,851) ($693,951) ($661,047) 70% ($826,915) ($805,029) ($775,399) ($751,775) ($726,473) 60% ($862,581) ($847,534) ($825,947) ($809,598) ($791,898)
Total Facility Revenue & Expenses- New Court Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Basketball Rental $129,377 $158,240 $191,902 $219,891 $250,569 Basketball Programs $22,798 $43,523 $47,984 $50,383 $55,547 Volleyball Rental $23,093 $28,015 $33,890 $38,602 $43,932 Volleyball Programs $18,260 $34,860 $38,433 $40,355 $44,491 Wrestling Rental $2,750 $3,388 $4,126 $4,752 $5,429 Cheer/Twirl Rental $1,650 $2,033 $2,476 $2,851 $3,258 Indoor Court Events $11,413 $11,413 $11,983 $17,036 $17,888 Court Rental $4,551 $5,006 $5,782 $6,071 $6,694 Secondary Areas $3,438 $902 $947 $995 $1,045 Food & Beverage $38,987 $71,385 $74,954 $78,702 $82,637 Total Revenue $256,315 $358,764 $412,477 $459,638 $511,490 Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Basketball Rental $10,539 $11,574 $12,711 $13,337 $13,994 Basketball Programs $10,649 $10,224 $11,137 $11,694 $12,745 Volleyball Rental $1,608 $1,757 $1,920 $2,010 $2,104 Volleyball Programs $8,917 $8,596 $9,347 $9,815 $10,678 Wrestling Rental $206 $227 $250 $262 $275 Cheer/Twirl Rental $124 $136 $150 $157 $165 Indoor Court Events $1,141 $1,141 $1,198 $1,704 $1,789 Court Rental $232 $243 $255 $261 $268 Secondary Areas $688 $722 $758 $796 $836 Food & Beverage $26,050 $27,353 $28,720 $30,157 $31,664 Total Cost of Goods Sold $60,154 $61,972 $66,447 $70,192 $74,518 Gross Margin $196,161 $296,793 $346,030 $389,446 $436,972 % of Revenue 77% 83% 84% 85% 85% Facility Expenses $373,821 $385,036 $396,587 $408,485 $420,739 Operating Expense $0 $0 $0 $0 $0 Management Payroll $231,946 $236,585 $241,317 $246,143 $251,066 Payroll Taxes/Benefits/Bonus $52,048 $53,486 $54,978 $56,492 $58,005 Total Operating Expenses $657,816 $675,107 $692,882 $711,119 $729,810 % of Revenue 257% 188% 168% 155% 143% Net Operating Income ($461,655) ($378,314) ($346,851) ($321,674) ($292,838) % of Revenue -180% -105% -84% -70% -57% Annual Debt Service $0 $0 $0 $0 $0 Total Net Income ($461,655) ($378,314) ($346,851) ($321,674) ($292,838) Cost Recovery 0.36 0.49 0.54 0.59 0.64 Annual Net Income Sensitivity Analysis Percent of Baseline Year 1 Year 2 Year 3 Year 4 Year 5 110% ($442,039) ($348,635) ($312,248) ($282,729) ($249,141) 90% ($481,271) ($407,994) ($381,454) ($360,618) ($336,535) 80% ($500,887) ($437,673) ($416,057) ($399,563) ($380,232) 70% ($520,503) ($467,352) ($450,660) ($438,507) ($423,930) 60% ($540,119) ($497,031) ($485,264) ($477,452) ($467,627)
Total Facility Revenue & Expenses- Existing Court Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Basketball Rental $105,854 $129,469 $157,010 $179,911 $205,011 Basketball Programs $18,653 $19,585 $21,593 $22,672 $24,996 Volleyball Rental $18,894 $22,921 $27,728 $31,584 $35,945 Volleyball Programs $14,940 $15,687 $17,295 $18,160 $20,021 Wrestling Rental $2,250 $2,772 $3,376 $3,888 $4,442 Cheer/Twirl Rental $1,350 $1,663 $2,026 $2,333 $2,665 Indoor Court Events $9,338 $9,338 $9,804 $13,939 $14,636 Court Rental $3,724 $4,096 $4,731 $4,968 $5,477 Secondary Areas $2,813 $2,953 $3,101 $3,256 $3,419 Food & Beverage $31,898 $33,493 $35,168 $36,926 $38,773 Total Revenue $209,712 $241,978 $281,832 $317,635 $355,384 Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Basketball Rental $8,623 $9,469 $10,400 $10,912 $11,449 Basketball Programs $8,713 $8,365 $9,112 $9,568 $10,427 Volleyball Rental $1,316 $1,437 $1,571 $1,644 $1,722 Volleyball Programs $7,295 $7,033 $7,648 $8,030 $8,737 Wrestling Rental $169 $186 $204 $214 $225 Cheer/Twirl Rental $101 $111 $123 $129 $135 Indoor Court Events $934 $934 $980 $1,394 $1,464 Court Rental $190 $199 $208 $214 $219 Secondary Areas $563 $591 $620 $651 $684 Food & Beverage $21,314 $22,380 $23,499 $24,674 $25,907 Total Cost of Goods Sold $49,217 $50,704 $54,365 $57,430 $60,969 Gross Margin $160,495 $191,274 $227,466 $260,205 $294,415 % of Revenue 77% 79% 81% 82% 83% Existing Facility & Operating Expenses $186,400 $186,400 $186,400 $186,400 $186,400 Management Payroll $189,774 $193,569 $197,441 $201,390 $205,417 Payroll Taxes/Benefits/Bonus $42,585 $43,761 $44,982 $46,220 $47,459 Total Operating Expenses $418,759 $423,731 $428,823 $434,010 $439,276 % of Revenue 200% 175% 152% 137% 124% Net Operating Income ($258,264) ($232,457) ($201,357) ($173,805) ($144,861) % of Revenue -123% -96% -71% -55% -41% Annual Debt Service $0 $0 $0 $0 $0 Total Net Income ($258,264) ($232,457) ($201,357) ($173,805) ($144,861) Cost Recovery 0.45 0.51 0.58 0.65 0.71 Annual Net Income Sensitivity Analysis Percent of Baseline Year 1 Year 2 Year 3 Year 4 Year 5 110% ($242,214) ($213,330) ($178,610) ($147,784) ($115,420) 90% ($274,313) ($251,585) ($224,103) ($199,825) ($174,303) 80% ($290,363) ($270,712) ($246,850) ($225,846) ($203,744) 70% ($306,412) ($289,839) ($269,597) ($251,866) ($233,186) 60% ($322,462) ($308,967) ($292,343) ($277,887) ($262,627)
Facility Expenses - COURT Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Alarm System Maintenance $1,325 $1,365 $1,406 $1,448 $1,491 Facility Maintenance & Cleaning Expense $0.55/SF $35,780 $36,854 $37,959 $39,098 $40,271 Facility/Medical Supplies $10,600 $10,918 $11,246 $11,583 $11,930 Lawn Care $300/Mo $10,600 $10,918 $11,246 $11,583 $11,930 Maint. & Repairs $2.60/SF $169,143 $174,217 $179,443 $184,827 $190,371 Utility Expense $2.25/SF $146,373 $150,765 $155,288 $159,946 $164,745 Total Facility Expense $373,821 $385,036 $396,587 $408,485 $420,739
Management Payroll Summary - Court Management Position Mgmt. Assump Year 1 Year 2 Year 3 Year 4 Year 5 GM (And Court Manager) 1 $93,600 $95,472 $97,381 $99,329 $101,316 GM (And Court Manager) 2 $60,320 $61,526 $62,757 $64,012 $65,292 Assistant Court Manager 1 $65,520 $66,830 $68,167 $69,530 $70,921 Assistant Court Manager 2 $49,920 $50,918 $51,937 $52,976 $54,035 Court Supervisor 1 $40,560 $41,371 $42,199 $43,043 $43,903 Court Supervisor 2 $31,200 $31,824 $32,460 $33,110 $33,772 Mktg & Bus. Dev. Dir./Bookkeeper $9,100 $9,282 $9,468 $9,657 $9,850 Facility Manager $9,100 $9,282 $9,468 $9,657 $9,850 Admin 6000 hours at $10 (120/week) $62,400 $63,648 $64,921 $66,219 $67,544 Total Management Payroll $421,720 $430,154 $438,757 $447,533 $456,483
Payroll Summary - Court Total Payroll Summary Mgmt. Assump Pre-Open Year 1 Year 2 Year 3 Year 4 Year 5 Mgmt GM (And Court Manager) 1 $93,600 $95,472 $97,381 $99,329 $101,316 Mgmt GM (And Court Manager) 2 6 months prior $30,160 $60,320 $61,526 $62,757 $64,012 $65,292 Mgmt Assistant Court Manager 1 $65,520 $66,830 $68,167 $69,530 $70,921 Mgmt Assistant Court Manager 2 6 months prior $24,960 $49,920 $50,918 $51,937 $52,976 $54,035 Mgmt Court Supervisor 1 $40,560 $41,371 $42,199 $43,043 $43,903 Mgmt Court Supervisor 2 6 months prior $15,600 $31,200 $31,824 $32,460 $33,110 $33,772 Mgmt Mktg & Bus. Dev. Dir./Bookkeeper 6 months prior $4,550 $9,100 $9,282 $9,468 $9,657 $9,850 Mgmt Facility Manager 6 months prior $4,550 $9,100 $9,282 $9,468 $9,657 $9,850 Mgmt Admin 3 months prior $15,600 $62,400 $63,648 $64,921 $66,219 $67,544 Subtotal Management Payroll $95,420 $421,720 $430,154 $438,757 $447,533 $456,483 Staff Basketball Staff 1 month prior $1,967 $23,603 $25,705 $28,006 $29,388 $30,840 Staff Volleyball Staff 1 month prior $599 $7,184 $7,667 $8,188 $8,586 $9,004 Staff Wrestling Staff 1 month prior $31 $375 $413 $454 $476 $500 Staff Cheer/Twirl Staff 1 month prior $19 $225 $248 $272 $286 $300 Staff Court Rental Staff 1 month prior $35 $422 $442 $463 $475 $488 Staff Indoor Court Event Staff 1 month prior $173 $2,075 $2,075 $2,179 $3,098 $3,252 Staff Court Maintenance Staff 1 month prior $2,982 $35,780 $36,854 $37,959 $39,098 $40,271 Staff Food and Beverage Staff 1 month prior $1,343 $16,110 $16,916 $17,762 $18,650 $19,582 Subtotal Sport Admin Staff $7,148 $85,774 $90,318 $95,282 $100,057 $104,237 Instructor Basketball Program Instructors Per Diem $12,435 $13,057 $14,395 $15,115 $16,664 Instructor Volleyball Instructors Per Diem $9,960 $10,458 $11,530 $12,106 $13,347 Subtotal Instructors (COGS) $22,395 $23,515 $25,925 $27,221 $30,011 Payroll Subtotal $102,568 $529,889 $543,987 $559,965 $574,811 $590,732 Health Insurance 6 employees @ 500/ $10,290 $41,340 $42,580 $43,858 $45,173 $46,529 Payroll Services $2,544 $2,620 $2,699 $2,780 $2,863 Payroll Taxes 10.00% of payroll (e $10,257 $50,749 $52,047 $53,404 $54,759 $56,072 Payroll Taxes/Benefits Totals $20,547 $94,633 $97,248 $99,961 $102,712 $105,464 Total Payroll $624,522 $641,235 $659,925 $677,523 $696,196 **Notes: Multiple Management Allotments can be shared among single positions Management Allotments are a percentage of revenue per associated business unit
Basketball Rental Revenue & Expenses Revenue Mgmt. Assump. Price per Session (Hour) 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 Open Play $/Session $5 $5 $5 $5 $6 160 176 194 203 213 12 $9,600 $10,560 $12,197 $12,807 $14,119 Half Court Rentals Sept. $/Hour $15 $17 $18 $20 $21 142 156 172 180 189 1 $2,130 $2,577 $3,093 $3,518 $3,978 Oct. $/Hour $15 $17 $18 $20 $21 277 305 335 352 370 1 $4,155 $5,028 $6,033 $6,863 $7,760 Nov. $/Hour $15 $17 $18 $20 $21 344 378 416 437 459 1 $5,160 $6,244 $7,492 $8,523 $9,637 Dec. $/Hour $15 $17 $18 $20 $21 334 367 404 424 446 1 $5,010 $6,062 $7,275 $8,275 $9,357 Jan. $/Hour $15 $17 $18 $20 $21 334 367 404 424 446 1 $5,010 $6,062 $7,275 $8,275 $9,357 Feb. $/Hour $15 $17 $18 $20 $21 334 367 404 424 446 1 $5,010 $6,062 $7,275 $8,275 $9,357 Mar. $/Hour $15 $17 $18 $20 $21 265 292 321 337 354 1 $3,975 $4,810 $5,772 $6,565 $7,424 Apr. $/Hour $15 $17 $18 $20 $21 94 103 114 119 125 1 $1,410 $1,706 $2,047 $2,329 $2,633 May $/Hour $15 $17 $18 $20 $21 106 117 128 135 141 1 $1,590 $1,924 $2,309 $2,626 $2,970 June $/Hour $15 $17 $18 $20 $21 82 90 99 104 109 1 $1,230 $1,488 $1,786 $2,032 $2,297 July $/Hour $15 $17 $18 $20 $21 87 96 105 111 116 1 $1,305 $1,579 $1,895 $2,155 $2,437 Aug. $/Hour $15 $17 $18 $20 $21 108 119 131 137 144 1 $1,620 $1,960 $2,352 $2,676 $3,026 Full Court Rentals Sept. $/Hour $25 $28 $31 $34 $37 426 469 515 541 568 1 $10,650 $13,121 $15,979 $18,402 $21,027 Oct. $/Hour $25 $28 $31 $34 $37 831 914 1,006 1,056 1,109 1 $20,775 $25,595 $31,171 $35,897 $41,017 Nov. $/Hour $25 $28 $31 $34 $37 1032 1,135 1,249 1,311 1,377 1 $25,800 $31,786 $38,710 $44,579 $50,938 Dec. $/Hour $25 $28 $31 $34 $37 1002 1,102 1,212 1,273 1,337 1 $25,050 $30,862 $37,585 $43,283 $49,458 Jan. $/Hour $25 $28 $31 $34 $37 1002 1,102 1,212 1,273 1,337 1 $25,050 $30,862 $37,585 $43,283 $49,458 Feb. $/Hour $25 $28 $31 $34 $37 1002 1,102 1,212 1,273 1,337 1 $25,050 $30,862 $37,585 $43,283 $49,458 Mar. $/Hour $25 $28 $31 $34 $37 795 875 962 1,010 1,061 1 $19,875 $24,486 $29,820 $34,342 $39,240 Apr. $/Hour $25 $28 $31 $34 $37 282 310 341 358 376 1 $7,050 $8,686 $10,578 $12,182 $13,919 May $/Hour $25 $28 $31 $34 $37 318 350 385 404 424 1 $7,950 $9,794 $11,928 $13,737 $15,696 June $/Hour $25 $28 $31 $34 $37 246 271 298 313 328 1 $6,150 $7,577 $9,227 $10,626 $12,142 July $/Hour $25 $28 $31 $34 $37 261 287 316 332 348 1 $6,525 $8,039 $9,790 $11,274 $12,883 Aug. $/Hour $25 $28 $31 $34 $37 324 356 392 412 432 1 $8,100 $9,979 $12,153 $13,996 $15,992 Non-capacity growth rate 1.00 1.05 1.00 1.05 1.10 1.10 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 Area Revenue $235,230 $287,709 $348,912 $399,802 $455,580 Expense Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Supervision/Maintenance Staff Court Monitors ($15/hr) $19,163 $21,043 $23,111 $24,249 $25,443 Area Expense Net Revenue $19,163 $21,043 $23,111 $24,249 $25,443 $216,068 $266,666 $325,801 $375,553 $430,137