F r a n k l i n C o u n t y M u lt i -P u r p o s e Center Feasibility Study Franklin County, Ohio
To Host Equestrian Events
December 2010
In Cooperation with: All American Quarter Horse Congress, Franklin County Agricultural Society, City of Hilliard
F r a n k l i n C o u n t y M u lt i -P u r p o s e Center Feasibility Study To Host Equestrian Events
December 2010
Franklin County Multi-Purpose Center Feasibility Study
Acknowledgements
Table of Contents
Franklin County Multi-Purpose Center Feasibility Plan Steering Committee
Acknowledgements
1
Table of Contents
1
Introduction Introduction Goals and Objectives
3 5 5
Market Analysis
7
William Flaherty: James Schimmer: Cam Foreman: David S. Meeks: Tim Shade: Linda Logan:
Deputy County Administrator, Franklin County Board of Commissioners Director, Economic Development & Planning, Franklin County Executive Vice-President, Ohio Quarter Horse Association Economic Development Director, City of Hilliard Fairgrounds Project Manager, Franklin County Agricultural Society Executive Director, Greater Columbus Sports Commission
Advisors Paul Astleford: Brian Ross: Virgil Strickler: Christy Clark:
President and CEO, Experience Columbus Vice President, Sales, Experience Columbus General Manager, Ohio Expo Center and State Fair Executive Director, Destination Hilliard
Special thanks to all who have provided their thoughts and time during the planning process.
Planning Team Kinzelman Kline Gossman | Lead Master Planning , Land Use and Urban Design, Development Strategies, Stakeholder Consensus Building, Visioning, Placemaking, Sustainability, Tourism, Parks & Public Spaces and Recommendations Front Street Analytics (FSA) | Market and Demographic Analysis, Market Sustainability, Economic Analysis, and Development Feasibility Hayward Designs Ltd, | Equestrian Facility Planning, Design, Construction and Management/Operations Meyers & Associates Architecture, LLC, | Architectural Design | Regulatory Review and Recommendations Burgess & Niple | Infrastructure Analysis, Utility Analysis, and Public Facility Development
Key Research Findings/ Observations 9
Feasibility Analysis Process Quarter Horse Importance Ohio’s Equestrian Market Regional Competition Extending Facility Utility Filling a Niche In Central Ohio Uses Estimating Facility Utilization Estimating Facility Revenue Sensitivity Analysis Existing Conditions Existing Conditions Community Context Site Photography Parcel Ownership Existing Utilities Constraints Issues & Opportunities
11 11 12 13 14 15 15 16 16 16
Facility Design Operational Development Considerations Guiding Program Functional Diagram Multi-Purpose Center Multi-Purpose Plan Multi-Purpose Plan Barn Layout Barn Elevations Barn Elevations
27 28 29 30 31 32 33 34 35 36
Facility Layout Conceptual Facility Layout Estimate - Conceptual Layout Phase 1 Facility Layout Estimate - Phase 1
37 38 39 40 41
17 19 21 22 23 24 25
Financial Analysis Operational Costs Staff Roles and Responsibilities Operational Budget Operational Proforma Funding Development Costs with Operational Revenue Regional Economic Benefit Potential Development Partners
43 45 45 45 46
Appendix 51 Appendix Contents 53 Advisory Committee Meetings 55 Comparable Equestrian Facilities 57-61 Utility Overlay 63-66
47 48 49
1
Introduction
Franklin County Multi-Purpose Center Feasibility Study
Introduction
Goals & Objectives
Need for a Feasibility Study and Project Understanding
• Retain the All American Quarter Horse Congress in Columbus / Franklin County
The Franklin County Board of Commissioners recognizes the challenge now facing Franklin County as it considers the potential development of a multi-purpose events center to provide an additional facility for Columbus’s growing array of equestrian events. The All American Quarter Horse Congress (AQHC) began in 1967 by Blair Folck and is now recognized as the largest single breed horse show in the world. It has grown to become a significant critical economic engine for the region receiving more than 17,000 horse show entries, houses more than 8,500 registered quarter horses, draws more than 650,000 visitors to the Columbus area , and contributes an estimated $110 million dollars to Franklin County’s economy each October. The Columbus metropolitan area is centrally located within the state.
Title Goes Here Fairgrounds
Hotels
Restaurants
1 Mile Radius
3 Mile Radius
F Franklin County Fairgrounds
• Evaluate the development capability of a multi-purpose center & support program facilities on the Franklin County Fairgrounds property • Conduct a broad-based analytical market assessment • Determine the economic impacts of the proposed development program within the City of Hilliard • Develop a strategic implementation market-driven plan • Address management, operation costs, impacts and opportunities • Look into partnerships & funding / financial scenarios • Investigate a facility that attracts a diverse and viable market for exhibitors, spectators and organizers
The excellent growth and popularity of the AQHC event has resulted in unmet demand for equestrian facilities beyond the Ohio State Fairgrounds. Given the relative proximity, the Franklin County Fairgrounds has been identified as an ideal site for a satellite events facility as demonstrated by recent research by the event organizers. While primary support for the new facility is thought to come from the AQHC event, it is important to understand the broader utilization of the facility and its impact to the local and regional economy. For this reason the Franklin County Agricultural Society (Society), the City of Hilliard (City), the American Quarter Horse Congress (QHC), and the Franklin County Boards of Commissioners seek to determine the benefits and costs of establishing a multi-purpose facility, including an indoor arena, at the Franklin County Fairgrounds.
Ohio E Expo Center e & State Fair S
The Franklin County Fairgrounds is conveniently located in Hilliard, Ohio with the Ohio State Fairgrounds a short drive away.
Introduction
5
M a r k e t A n a ly s i s
Franklin County Multi-Purpose Center Feasibility Study
Key Research Findings and Observations Overall Assessment: It is the opinion of the consulting team that the project is not feasible. • Development costs are very high. • Ongoing operations are costly. • The economy is soft and the event marketplace is feeling pricing pressures making revenue estimates difficult to predict. • The new facility could adversely affect operations of other Central Ohio events facilities trying to attract buisness from a finite pool of events. • Subsidies or project underwriters could not be identified to bridge gaps in the financial development and operation model.
The AQHC Event is a critical source of economic activity for the City of Columbus, Franklin County and many other local and regional municipalities as well as the State of Ohio. An Equestrian MultiPurpose Facility in Hilliard on the Franklin County Fairgrounds would be an important incentive to retain this important event and grow it in Central Ohio. A 2,000 seat Multi-Purpose Equestrian Facility on the Franklin County Fairgrounds would indeed be uniquely positioned to attract equestrian and agricultural events, consumer shows and other spectator events to Hilliard. The market, however, is presently very soft with fewer events demanding price concessions and even subsidies to bring events to Columbus. New development is not advisable in such an environment. The facility is envisioned to focus on equestrian events, agricultural events, small local and regional spectator events and consumer shows too small to be appropriately hosted at other Central Ohio facilities. There was concern amoung existing Central Ohio operators of other facilities that a new multi-purpose facility could take some business from existing facilities. Phase I development would include the arena facility, one 400-stall stable barn as associated infrastructure development at an estimated cost of $11 million. The development would improve existing Fairgrounds operations and capabilities dramatically - establishing a new bar for development and future upgrades to the facilities. Operational revenues have been estimated and appear to allow funding of most operational costs but would not be sufficient to service all the expected debt from its construction.
The total direct, indirect and induced economic benefit to the local and regional economy as a result of this development is estimated to exceed $15 million annually. Depending on utilization and pricing, revenues from operations are expected to be range from a conservative estimate of $400,000 per year to a more optimistic estimate of $600,000 per year. Expenses are expected to run $500,000 per year. This suggests that the facility could require financial subsidy beyond direct operational revenues of $100,000 per year. Banquet, corporate meetings, music and theater events are currently being served by other facilities in the region and the cost of programming this facility to address those specialized needs does not increase marketability of the facility to justify the additional investment. This facility would require a more complex management and staffing strategy. Sales and marketing efforts are critical to the facilities success. The outbound sales effect must be started during construction to fill the calendar with paying events as quickly as possible. Outsourcing management to another firm already operating in Central Ohio could result streamline operational costs by sharing some functionality. Building a strong set of recurring events and growing events from single-day to multi-day tenants has been shown in other facilities to be a strategy toward economic predictability. Local, State and Federal political champions should be sough to seek funds toward this development. The AQHC could be a partner in some capacity.
A entity or group to underwrite the construction of this facility could not be identified. Furthermore, ongoing naming rights or other advertising revenues did not appear significant enough to offset development costs.
M a r k e t A n a ly s i s
9
Franklin County Multi-Purpose Center Feasibility Study
Multi-Purpose Feasibility Analysis Process The Franklin County Commissioners are studying the feasibility of a multi-purpose events center at the Franklin County Fairgrounds. The facility would serve to provide a satellite operation to grow the American Quarter Horse Congress event. Additionally, it would expand the offering of the fairgrounds operations and allow hosting of other equestrian, agricultural, spectator and exhibition events. The feasibility research followed a detailed assessment of the marketplace for equestrian and other events, the competition in the region, amenities and associated costs and the underlying economics of such operations. The objective is to offer a facility which expands the Central Ohio reach for hosting all types of events. Local competition and potential for cannibalization were of primary concern. The end goal is to increase Franklin County’s ability to grow economically by leveraging tourism and event spending toward induced financial benefit to the region.
The Importance the Quarter Horse Congress to Columbus The American Quarter Horse Congress (AQHC) is an annual event organized by the Ohio Quarter Horse Association. It is hosted in the Fall at the Ohio Expo Center. During its three week run each year it brings over 650,000 people to Columbus, includes over 17,000 event entries and over 8,000 horses. The event is estimated to bring over $110 million to the Central Ohio economy and as such is an important source of travel and tourism revenue for the community. The event organizers have indicated that a satellite facility at the Franklin County Fairgrounds would allow them to expand their offering during the AQHC event. This facility would serve as a satellite to the main show and would host concurrent and complimentary events.
Primary Design Needs of the AQHC Event:
Exhibition Area with Footing Material Spectator Seating for 2,000 - 4,000 Judging / Entry Rooms Restrooms / Concessions RV / Trailer Space Ancillary Stables, Features & Amenities
Source: “All American Quarter Horse Congress”, Ohio History Central, July 1, 2005, http:// www.ohiohistorycentral.org/entry.php?rec=1652
M a r k e t A n a ly s i s
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Ohio’s Equestrian Market is Large and Diverse The notion of a multi-purpose facility is founded on the basis of the tremendous popularity of horses and the many equestrian disciplines and activities. The horse is an icon of America’s past and continue to be a working part of the nation’s agriculture. The Midwest - in particular Ohio - is home to a great many horses across a wide variety of disciplines and interests. Each discipline is also frequently part of a larger hierarchy that includes regional or national levels. Each level frequently holds competitions and shows which highlight their particular breed or interest. As such, there are many groups that participate in events and shows at a local, regional and national level. This creates demand for performance, show and spectator facilities to host such events. Large regional and national shows - such as the American Quarter Horse Congress - are hosted in very large facilities such as the Expo Center. Local and district events are hosted at smaller public or private equestrian facilities.
Local and Regional Equestrian Groups Achin Acres Farm Shows Appalachian Appaloosa Association Arabian Horse Shows Ashland Paint and Plain BC Arena Shows Belpre, OH Blackswamp Horse Club Buckeye Horse Park Buckeye Western Horse Association Central Ohio Open Show Horse Association Central Ohio Saddle Club Association Central State Horse Show Association Classic Horsemen 4H Club Putnam Co. Equine Promotions Horse Shows Findlay Fire Cracker Open Horse Show Fulton County Saddle Club Gibsonburg Saddle Club Great Lakes Appaloosa Horse Club Henderson Arena Events Henry County Saddle Club, New Castle, IN Independent Contest and Pleasure Horse Association (ICPHA) Keystone Saddle Club Lawrence County Horseman’s Association Massillon Saddle Club Mid Ohio Dressage Mid-Ohio Horse Show Association Midwest Express Horse Shows Moore’s Open Shows National Quarter Pony Association Open Shows Ohio Hunter/Jumper Shows Ohio Dressage Society Ohio Paint Horse Shows Ohio Palomino Shows Ohio Pennsylvania Appaloosa Association Ohio Pinto Shows Ohio Quarter Horse Shows Ohio State Buckskin Association Ohio Western Horse Association Ohio-Michigan-Indiana Quarter Horse Association (OMIQHA) Pioneer City Riding Club Saddlebred Horse Shows Stars & Stripes Team Tournament Tri-State Rodeo Association Vail Meadows Equestrian Center Valley City Saddle Club Wayne County Saddle Club Wyandot County Summer Horse
Events for Two Local Organizations: Mid Ohio Dressage & Ohio Dressage Society 2009 Events – Over 24 – Most Local March 22, 2009 (Sunday) - Schooling Show at Timber Run April 2-5, 2009 - Equine Affair, Ohio State Fairgrounds April 10 and 11 (Fri / Sat) - Cincinnati Traditions Schooling Show, Roberts Arena April 18, 2009 - Nancy Baker Balimo Clinic - Southwind Stables April 19, 2009 - Schooling Show at Timber Run April 25 & 26, 2009 - Courtney King-Dye Clinic May 8-10, 2009 - USEF/USDF Recognized Show, Roberts Area May 16 & 17, 2009 - MODA Schooling Show - Delaware May 30, 2009 - ODS Educational Function – From the Judge’s Perspective June 13 & 14, 2009 - ODS Down Centerline I and II - Delaware June 19-21, 2009 - USEF/USDF Recognized Show - Roberts Arena June 27 & 28, 2009 - Robert Dover Symposium - Roberts Arena June 28, 2009 - South Wind Stables Schooling Show July 10-12, 2009 - MODA Classic I and II - Delaware July 19, 2009 - South Wind Stables Schooling Show July 25 & 26, 2009 - New Vocations Schooling Show July 29-August 9, 2009 - Ohio State Fair August 8 & 9, 2009 - ODS Down Centerline III and IV - Delaware August 22 & 23, 2009 - Gypsy Woods Farm Clinic with Debbie McDonald August 30, 2009 - South Wind Stables Schooling Show September 18-20, 2009 - USEF/USDF Recognized Show - Roberts Arena September 22-24, 2009 - Farm Science Review September 22-27, 2009 Dressage at Devon, PA September 27 South Wind Stables Schooling Show October 1-4, 2009 - USDF Region 2 Championships - Lamplight IN October 10 & 11, 2009 - ODS Fall Schooling Show - Delaware October 22-25 (?), 2009 - USDF Region 1 Championships - Lexington, KY Events Vary in Size / Scale Local Events Tend to be Smaller and Recent Attendance is Down
Franklin County Multi-Purpose Center Feasibility Study
2
Regional Equestrian Competition and Advantages of the Franklin County Fairgrounds / Hilliard Location
1
The map to the right depicts local and regional facilities considered to be direct competition to a Franklin County Fairgrounds multi-purpose center because they host a significant number of equestrian events each year. The Franklin County Fairgrounds site is located in Downtown Hilliard within walking distance to businesses and restaurants. It is also nearby a number of hotels and other restaurants on Hilliard-Rome Road, Fishinger Road and Interstate 270 and Dublin.
3
4
This urban context offers an important competitive advantage. Equestrian or other events would benefit from having easy access to restaurants, hotels and shopping. Furthermore, the Franklin County Fairgrounds site is only a few minutes drive from the Ohio Expo Center. During the AQHC show, shuttles or private transportation could easily and quickly move back and forth between the main show at the Expo Center and events hosted at the Franklin County Fairgrounds.
Hilliard Area Hotels • Comfort Inn • Hampton Inn • Homewood Suites • Super 8 • Motel 6 • Red Roof Inn • Clark Hotels Dayton • Hyatt Place • Marriott • Staybridge Suites
1
Ohio Expo Center - Columbus
2
3
Champions Center - Springfield
4
Delaware County Fairgrounds - Delaware
Hilliard’s Downtown and the Franklin County Fairgrounds Site
Roberts Center - Wilmington
Hotels, restaurants and shopping nearby.
M a r k e t A n a ly s i s
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Multi-Purpose - Extending the Facility’s Utility:
Exhibition Area - Access from Both Ends Spectator Seating - Conditioned Space (HVAC) Judging / Entry Rooms Restrooms / Concessions RV Parking / Trailer Space Ancillary Stables, Features & Amenities Basic Lighting / Sound System +/- 2,000 Spectator Seats
Agricultural Events
• Very similar to Equestrian Events • Flexible Truck / Loading Access • Fixed / Moveable Seats
Spectator Events
• • • • • • •
Clear Span Floor / Concrete Floor 2,500 Seats Concessions / Restrooms Dressing Rooms Temporary Stage / Lighting / Sound Dock Truck/Loading Access Rigging for Drapery & Equipment
Exhibition Events
• • • • • • • •
Flat / Clear Span / Concrete Floor Floor Space to Sell Booths Concessions / Restrooms Show Management Rooms Sufficient / Available Elec / Water Dock Truck/Loading Access Rentable Pipe Drape Ticket Window
Equestrian Events
• • • • • • • •
Agricultural Events
Equestrian Events
Programming Needs
Spectator Events
Type
Potential Uses
Exhibition Events
A facility designed primarily around equestrian events can also easily host a wide variety of other events. In analyzing the programming needs of such a facility, the following general categories were identified and their associated amenities and programming needs incorporated in the design analysis.
Franklin County Multi-Purpose Center Feasibility Study
Filling a Niche in the Central Ohio Events Marketplace Central Ohio is home to a number of facilities which can accommodate a wide variety of events. The Greater Columbus Convention Center offers more than 1.7 million square feet of exhibition, meeting and banquet space located in Downtown Columbus near the Arena District and Short North.
Market Focus
Convention Center
Expo Center
Vets Memorial
Corporate Convention, Meetings & Banquet
Agricultural & Consumer Shows
Consumer Expos, Performance & Meetings
Much Larger Spaces No Equestrian / Ag Focus
Much Larger Campus
Larger Exhibition Space (65k sf North Hall) Performance Venue
Local and Regional Equestrian / Agricultural Focus Smaller Consumer Shows Local Spectator Events
Smaller Venue Regional / Local Events
Smaller Consumer Shows
The Ohio Expo Center has over 1 million square feet of event space and can accommodate 2,000 large animals such as cattle. It is located off Interstate 71 on a 360-acre campus.
Franklin County Veterans Memorial offers 145,000 square feet of meeting and
exhibition space and a 3,916 seat theater. It is located in Downtown Columbus on the Scioto River Peninsula near COSI and Mount Carmel Medical Center‘s campus.
Competitive Differentiation
A facility added into the local competitive marketplace should fill an unmet gap in the market and increase the region’s ability to attract event business. The current economic environment has created a decline in consumer and exhibition show traffic - increased downward pressure on pricing for events facilities. As such, it is important that future development in Central Ohio not cannibalize existing business.
Relative Competitive Position
Along with this competitive assessment, it is important to note differentiation among Central Ohio’s facilities - particularly related to the facility size and its urban relationship to other amenities such as hotels and restaurants.
A 2,000 seat Multi-Purpose Equestrian Facility on the Franklin County Fairgrounds would be uniquely positioned to attract equestrian and agricultural events, consumer shows and other spectator events to Hilliard.
Banquet, Meeting, Performance and Other Uses The design recommendations for the multi-purpose facility are intended to meet the needs of its primary focus - smaller equestrian, agricultural, spectator and exhibition events. While the facility could certainly be used to host a large banquet for example, the higher finishes, ancillary services and other more costly amenities desired by buyers of banquet service have not been included in the design recommendations. Likewise, the needs for corporate meetings, live performance and theater events were not considered to be of primary focus for this new facility. These types of events are
currently being served by other facilities in the region and the cost of such programming components do not appear to result in sufficient increased marketability to justify the investment.
M a r k e t A n a ly s i s
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Estimating Facility Revenue
Estimating Facility Utilization The operational revenue of a multi-purpose facility are based on income from facility rental as well as from a variety of other sources (see inset). The number of days the facility is rented the “utilization rate” - drives the revenue.
Revenue Sources: • • • • • • • • •
To estimate utilization, a number of sources were studied. Calendars of other facilities were analyzed to ascertain how frequently their facilities were rented. Interviews were conducted with facility managers and other secondary research was conducted. In general, research and discussion with operators indicated that 50-60% utilization is a conservative estimate for budgeting purposes. Based on this, the following calendar was developed indicating 198 usage days. This would likely result in fewer calendar days because some events run concurrently. This 55% utilization model was used to estimate
Facility Rental Fees Animal Boarding Equipment Rental Parking Fees RV Camping Fees Concessions Catering Fees Supplies/Tack Purchase Ticket Sales (Consumer Shows)
The pricing estimate was based on inspection of other facilities and a comparison to local pricing practices. Based on these pricing estimates, the following revenue estimate was compiled. It shows annual revenue of just under $600,000.
Baseline Revenue Model Full Facility
$4,000/day
44
$
176,000
Arena
$3,000/day
84
$
252,000
Partial
$1,000/day
70
$
70,000
Other Revenue*
$
99,600
Total Estimated Operating Revenue
$
597,600
revenue across a number of sensitivity scenarios.
Sensitivity Analysis
55% Utilization Calendar 55% Utilization Calender Equestrian
Other Ag / Arena
Exhibition
Other
Full
Arena
Partial
Arena
Partial
Arena
Partial
Arena
Partial
Jan
1
1
1
2
1
1
0
1
0
Feb
1
1
1
2
1
1
1
1
1
Mar
1
1
2
2
2
1
2
2
1
Apr
1
1
2
2
2
1
2
2
1
May
2
2
2
2
2
2
2
2
1
Jun
6
2
4
2
2
2
2
2
1
Jul
4
2
2
2
2
2
2
2
1
Aug
6
2
4
2
Sep
14
2
2
Oct
6
2
Nov
1
Dec Total
2
2
2
2
1
2
2
1
2
1
2
2
2
1
2
1
1
1
2
2
2
1
2
1
1
1
1
2
2
2
1
2
1
44
18
24
24
18
20
17
22
11
The assumptions above were analyzed by downward adjustment from the conservative baseline due to the inherent uncertainty of estimating both utilization and revenue particularly in a down economic environment.
Fewer Events Full Facility
$4,000/day
35.2
$140,800
Arena
$3,000/day
67.2
$201,600
Partial
$1,000/day
56
The tables to the right depict total revenue for the stated assumptions if utilization was 20% lower or if rents were 20% lower.
Other Revenue*
As you can see, the total facility revenue ranges from the baseline of $600,000 down to over $400,000 for the two scenarios.
Lower Rents
For the purposes of analysis, revenue has been modeled with a “low”, “medium” and “high” estimates $400,000, $500,000 and $600,000 respectively. These figures are supported by
analysis of other facility’s revenue and through interview with management.
$56,000 $20,000
Total Estimated Operating Revenue
$418,400
Full Facility
$3,200/day
44
$140,800
Arena
$2,400/day
84
$201,600
Partial
$800/day
70
$56,000
Other Revenue* Total Estimated Operating Revenue
$24,000 $422,400
Existing Conditions
Franklin County Multi-Purpose Center Feasibility Study
Existing Conditions Currently many of the uses of the facilities at the Franklin County Fairgrounds center around equestrian uses. However, many of the buildings are rented out to serve as a multi-modal space and are used for a variety of purposes. While the facilities are adequate for the Franklin County Fair, they are becoming dilapidated and are in need of repair. If the fairgrounds are to accommodate a new improved equestrian center some buildings may have to be displaced and be replaced within the proposed multi-purpose center.
View of a warm up area on the side of an existing barn.
Existing Conditions
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Franklin County Multi-Purpose Center Feasibility Study
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Community Context Features Railroad Franklin County Fairgrounds
270
57
Primary Access Road
Interstate
. Avery Rd
COTA Express Route 56,57,& 67
Off-Road Bike Trail
N o r th w e s
Committed Future Bikeways
n
St
.
Franklin County Fairgrounds
M
67
C e m e te r
67 FEET
1000’
1050’
Sc
io
yRd.
67
Leap Rd.
M a in S t. 57
0’ 250’ 500’
56
ai
Hilliard Darby High School
t P k w y.
to
Da
rb
y
Rd
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2050’
N
Existing Conditions
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Site Photography Newer Secondary Entry
1
Field Parking Drive Aisles
Northwest Pkwy Roadway Frontage
2
3
Fairground Storage (RV & Boats)
8 1 7
Northwest Pkwy
2
9
5
4
5
Stable Service Road
Storage Area / Maintenance Barn
Open Field / Event Parking (Approx. 43 Acres)
3
Northwest Pkwy - Existing Parking Aisle
7
Main Entrance / Opposite Storage Facility
8
les Existing Stab
4
Storage Area / Maintenance Barn Panoramic View of Open Field (looking SW) Designated Field Parking (foreground)
9 6
g hance Existin Preserve & En r e ff u B Fence Row
Hamilton Park
Residential
Light Industrial
69
Ground) r Line (Above Existing Powe
Main Entrance w/ Decorative Fence / Gate
w/ Gates Existing Fence
Service Road Off Main Entrance
Franklin County Multi-Purpose Center Feasibility Study
. Dr
Hilliard Church of Christ
Weaver Ct. N
Existing Buildings
Claymill Dr.
Brickwood
Dr.
Circle Dr.
Dixon Dr.
Franklin County Agricultural Society City of Hilliard Norwich Township
Glenallen Dr.
Heather Ridge
Franklin County Fairgrounds Parcel Ownership
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1. Fine Arts Building 2. Secretary’s Office 3. Restroom
e.
Av
r xte
4. Portable Stands
Fairground Storage (RV & Boats)
5. Permanent Stands 6. Dellinger Building
Northwest Pkwy
7. Edwards Building 8. Ganyard Building
Norwich Township Fire Dept./ Joint Safety Services Building
9. Rigsby Building 10. Bob Evans Arena 11. Birkhold Riding Stables
16
12. R+S Anglebeck Stables
Open Field / Event Parking
15
13. Barn 25 (4-H) 14. Barn 24 15. G.A. Burke Building
Northwest Village / Weaver Park
Old Hilliard
16. Barn 27 C.R.C.R.C Raceway n
St
.
Columbia St.
or
th
St
3
4
6 5
4
3
7
14
10
8
13
9
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C as olum ds ad bia fS St t. . St .
M
ai
1
N
2
Northwest Pkwy Weaver Ct. S
Avery Rd.
De
12 11
Race Track
3 Park N
or
wi
ch
St
.
Hamilton Park Dr.
Hamilton Rd.
Existing Conditions
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Existing Utilities Key 1. Electric 2. Water 3. Storm Sewer 4. Sanitary Sewer 5. Gas
Franklin County Multi-Purpose Center Feasibility Study
Constraints, Issues and Opportunities Parcel Information Norwich Township Franklin County Agricultural Society City of Hilliard
Old Hilliard Light Industrial Zoning
Additional Information Above Ground Power Lines Buffer
Primary Access Road Maintenance Road
COTA Express Route 57 Proposed Bike Lane Proposed Bike Trail Pedestrian Path Drainage Patterns Franklin County Fairgrounds Entry
Existing Conditions
25
Facility Design
28
Facility Design & Operational Development Considerations These considerations were derived from input of multiple stake holder meetings, individual interviews and team member contributions. Exhibitors • Ease of ingress and egress – Ease of pulling in with big rigs, clearly marked, wide turning radii one way and/or easy turn around. • Safe & convenient unloading and loading areas • Convenient access from parking to the barns • Parking with pull through spaces • RV hook-ups – Provide basic electric and water for camper/trailers. This is not a camp ground. This is for exhibitors to be able to stay in their horse trailers with campers close to their horses, at least on grounds. • Barns that are clean, safe & well ventilated • Convenient access to wash stalls & manure bins – Suggest they be located where they do not disturb horses going to and from their event venues. • Manure bins located for ease of clean out – The manure bins need to be located so when they are being serviced it does not disturb the exhibitors. Suggest the opposite end of the barns from where exhibitors come and go to their event venue. • Convenient & covered access from barns to warm-up & from warm-up to event arena/ venue • Arena with good footing, properly groomed, dust free & maintained for their sport • Arena with good lighting • Indoor and covered arena • Convenient access to bathrooms • Access to vendors Spectators: • Convenient parking • A site that is easy to navigate • Convenient access to restrooms & concessions • Covered & protected seating • Seating with good visibility of event floor • Convenient access to the vendors Vendors (Trade Show Vendors): • Convenient Parking • Ease of loading & unloading • Ease of set-up & tear down • Location for maximum exposure to foot traffic • A site that is easy to navigate • Protected / covered vending area • Electric hook up (some water hook-ups) • Convenient access to restrooms & concessions
Event Organizers: • A host site that has optimum amenities for each unique event • “Happy” exhibitors, spectators & vendors • A responsive facility management operation Franklin County, the “Owner” (The Community): • Provide a good product & service • A site that is functional, and user and operationally friendly • A site that is easy to market • A site that is easy to maintain • A site that can be easily and efficiently be turned over between events • The site to have a positive impact on the surrounding community (hotels, lodging, restaurants, shops, schools, etc.) • The center must add amenities in the events industry and not diminish business for the surrounding venues General: • A site that is easy to navigate for vehicular, pedestrian and equestrian traffic wayfinding system • A site that can be cordoned off for ticketed events and for security purposes when needed • Separation of car / truck traffic with exhibitors and spectators • Streamline traffic flow from the barns to the multi-purpose center for the exhibitor
Franklin County Multi-Purpose Center Feasibility Study
Facility Design Guiding Program The design process for the potential Franklin County Multi-Purpose Center has included participants from the equine disciplines including riders, organizers and designers to ensure the facility will meet the needs of potential users. The schematic facility diagrams are not intended to be final and represent functional and spacial benchmarks to begin planning and provide an estimate for an equestrian center. The location on the Franklin County Fairgrounds represents only a potential placement which would require a future master planning effort in order to better assess the optimal location and provide more detail in the interaction of current and future facilities. The requested list below represents the requested program elements and are considered in the schematic facility designs. Arena Requirements • Show arena floor 150’ x 240’ • At one end of length, a make-up pen • Seating for 2,500 spectators • Announcer’s room overlooking arena • Entry office (breakout room) • Judges room (breakout room) • Restrooms and concession areas Stalling Area • Approximately 500 10’ x 10’ stalls with 10’ alleyways in between • Attached (or covered) walkway to the arena • Four wash racks providing hot and cold water • 110 volt electrical outlets every eight stalls • Water supply for every 15 stalls • Manure pits outside the building • Parking on three sides of the building with space for backing up 40’ rigs while maintaining a drive (parking for 30 rigs) Camping • 75 units with 50-amp electric and water / sewerage for 75+ units (many of these units will be busses or 40’ horse trailers with living quarters) • Additional parking for trailers and trucks Outside Riding Area • A covered riding pen of 150’ x 300’ Cattle Pens • A covered space for cattle or additional practice areas Parking • Enough parking to adequately meet Hilliard’s city code requirement of 1 parking space per 5 seats for a sports arena.
Facility Design
29
30
Functional Diagram Public Access
Office Area
Indoor Make-Up Arena
Spectator Seating +/- 2000
Main Arena Pull-Through Access
30’ Walk Restrooms
Wash Area
Open Air Covered Arena
Back of House
Not To Scale
Franklin County Multi-Purpose Center Feasibility Study
Multi-Purpose Center
Facility Design
31
32
Multi-Purpose Center - Plan
Not To Scale
Franklin County Equestrian Center
Franklin County Multi-Purpose Center Feasibility Study
Multi-Purpose Center - Plan Total: 126,308 Square Feet 13,485 sf
4,260 sf
8,398 sf 20,485 sf
79,680 sf
Not To Scale
Facility Design
33
34
162 Stall - All Weather Barn Layout
Franklin County Multi-Purpose Center Feasibility Study
162 Stall - All Weather Barn Elevations
South Elevation Scale 3/16” = 1’-0”
North Elevation Scale 3/16” = 1’-0”
Facility Design
35
36
162 Stall - All Weather Barn Elevations
East Elevation Scale: Not To Scale
West Elevation Scale: Not To Scale
F a c i l i t y L ay o u t
38
Conceptual Facility Layout Building Information Multi-Purpose Center Additional Practice Space Barn Parking Open Space Fairgrounds Storage Pedestrian-Oriented Space
Additional Information Buffer Maintenance / Service Access Pedestrian Corridor
Main Street Facility Linkages
Franklin County Multi-Purpose Center Feasibility Study Schematic Facilty Layout Estimate of Probable Cost
Prepared by:
Water Line (Multi-Sized)
1
Each
@ $
259,750.00 = $
259,750.00
Water Hydrants
4
Each
@ $
3,000.00 = $
12,000.00
Water Service
1
Each
@ $
3,000.00 = $
3,000.00
1,130
L.F.
@ $
120.00 = $
135,600.00
@ $
4,000.00 = $ 10,000.00 = $
16,000.00 10,000.00
Franklin County Multi-Purpose Center Feasibility Study Sanitary Manhole 4 Each @ $ Sanitary Line
Kinzelman Kline Gossman
RV Dump Station (TBD)
1
Each
Subtotal
39
$
1,056,850.00 229,682.00
Electric Power & Site Lighting Date:
11/29/2010
Calculated By: NL
Revised:
Main Site Electric / Facilty & Distribution
1
Each
@ $
229,682.00 = $
Revised:
Parking Lot GFI's
85
Each
$
100.00 = $
8,500.00
File No.:
Parking Lot Lighting Pedestrian Lighting
42 20
Each Each
@ $ @ $
3,100.00 = $ 2,000.00 = $
130,200.00 40,000.00
Subtotal
$
408,382.00
8.00 = $ 8.00 = $
48,400.00 193,600.00
MK Revised: Estimate of Probable Cost - Conceptual Facility Layout
Checked By: Project:
Franklin County Multi-Purpose Center Feasibilty Study
09-218
Preliminary Site Estimate Item
Ext. Description
Earthwork Quantity
Unit
@
Unit Cost
=
Excavation Topsoil Stockpile & Placement (30 acres)
Total Cost
6,050 24,200
Cu. Yd. Cu. Yd.
@ $ @ $
Subtotal
Demolition Barn 24 (7,250 square feet) Barn 25 (10,000 square feet.)
1 1
Each Each
@ $ @ $
5,000.00 = $ 5,000.00 = $ Subtotal
$
5,000.00 5,000.00 10,000.00
Heavy Duty Asphalt Roadway Pavement (4")
1,554
Cu. Yd.
@ $
175.00 = $
271,950.00
3,109
Cu. Yd.
@ $
35.00 = $
108,815.00
Asphalt Pavement (3") for Parking
1,660
Cu. Yd.
@ $
175.00 = $
290,500.00
304 Agg. Base (6") for Asph. Parking
3,320
Cu. Yd.
@ $
30.00 = $
99,600.00
4" Concrete for Plaza
27,075
Sq. Ft.
@ $
4.00 = $
108,300.00
Specialty Pavement 1 (Concrete Pavers on 4' Concrete Base)
9,025
Sq. Ft.
@ $
15.00 = $
135,375.00
Aggregate Pavement for Parking Curb Ramp
7,336 4
Cu. Yd. Each
@ $ @ $
30.00 = $ 1,250.00 = $
220,080.00 5,000.00
Subtotal
$
1,239,620.00
@ $ 5,495,905.00 = $
5,495,905.00
1
Each
Open Air Covered Arena
1
Each
@ $
30,000.00 = $
30,000.00
162 Stall Barns
3
Each
@ $
804,670.50 = $
2,414,011.50
3 12.0
Each Each
@ $ @ $
250,084.40 = $ 7,300.00 = $
750,253.20 87,600.00
Stalling Barn Manure Bins
Subtotal
$
8,785,069.70
1
Each
@ $
4,000.00 = $
4
Each
@ $
200.00 = $
800.00
6 25
Each Each
@ $ @ $
200.00 = $ 125.00 = $
1,200.00 3,125.00
Subtotal Planting Allowance
1
Each
100,000.00 = $
100,000.00 100,000.00
Base Cost Subtotal
$
11,870,296.70
10% Contractor Overhead and Profit Subtotal
$
1,187,029.67
$
13,057,326.37
10% Design Contigency Grand Total (Base Bid)
$
1,305,732.64
$
14,363,059.01
BASE COST SUMMARY
General Notes
15
Each
@ $
350.00 = $
5,250.00
HIS BEST JUDGMENT AS A DESIGN PROFESSIONAL. HOWEVER, THE ARCHITECT HAS NO CONTROL OVER THE
40 20
Each Each
@ $ @ $
200.00 = $ 300.00 = $
8,000.00 6,000.00
COST OF LABOR, MATERIALS, OR THE CONTRACTORS METHODS OF DETERMINING BID PRICES, OR OVER COMPETITIVE BIDDING OR MARKET CONDITIONS. THEREFORE, THE ARCHITECT CANNOT
Subtotal
$
19,250.00
545,500.00 = $
545,500.00
Utilities 1
Each
@ $
25
Each
@ $
3,000.00 = $
75,000.00
Water Line (Multi-Sized)
1
Each
@ $
259,750.00 = $
259,750.00
Water Hydrants
4
Each
@ $
3,000.00 = $
12,000.00
Water Service
1
Each
@ $
3,000.00 = $
3,000.00
1,130
L.F.
@ $
120.00 = $
135,600.00
4 1
Each Each
@ $ @ $
4,000.00 = $ 10,000.00 = $
16,000.00 10,000.00
Sanitary Manhole RV Dump Station (TBD)
9,125.00
$
Bollards Trash Bins
Sanitary Line
@ $
Subtotal
Benches
Storm Manhole
$
Planting
ESTIMATES OF PROBABLE CONSTRUCTION COSTS PREPARED BY THE ARCHITECT REPRESENT
Site Furniture
Storm Sewer (Multi-Sized)
4,000.00
Main Entrance Sign
Site Structures Multi-Purpose Center
242,000.00
Street Signs (at crosswalk) Wayfinding Sign Parking Signs
Pavements 304 Agg. Base (8")
$
Signage & Wayfinding
Subtotal
$
1,056,850.00 229,682.00
GUARANTEE THAT BIDS OR CONSTRUCTION COST WILL NOT VARY FROM ANY ESTIMATES OF PROBABLE CONSTRUCTION COST PREPARED BY HIM.
Draft
Page 1 of
Electric Power & Site Lighting 1
Each
@ $
229,682.00 = $
Parking Lot GFI's
Main Site Electric / Facilty & Distribution
85
Each
$
100.00 = $
8,500.00
Parking Lot Lighting Pedestrian Lighting
42 20
Each Each
@ $ @ $
3,100.00 = $ 2,000.00 = $
130,200.00 40,000.00
Subtotal
$
408,382.00
8.00 = $ 8.00 = $
48,400.00 193,600.00
Earthwork Excavation Topsoil Stockpile & Placement (30 acres)
6,050 24,200
Cu. Yd. Cu. Yd.
@ $ @ $
Subtotal
$
242,000.00 4,000.00
Signage & Wayfinding Main Entrance Sign
1
Each
@ $
4,000.00 = $
Street Signs (at crosswalk)
4
Each
@ $
200.00 = $
800.00
6 25
Each Each
@ $ @ $
200.00 = $ 125.00 = $
1,200.00 3,125.00
Wayfinding Sign Parking Signs
F a c i l i t y L ay o u t
40
Phase 1 Facility Layout Building Information Multi-Purpose Center Additional Practice Space Barn Parking Open Space Fairgrounds Storage Pedestrian-Oriented Space Phase 1 Building Utilization
Additional Information Buffer Maintenance / Service Access Pedestrian Corridor
Main Street Facility Linkages
1
Each
@ $
241,500.00 = $
241,500.00
Water Hydrants
4
Each
@ $
3,000.00 = $
12,000.00
Water Service
1
Each
@ $
3,000.00 = $
3,000.00
1,130
L.F.
@ $
120.00 = $
135,600.00
1
Each
@ $
4,000.00 = $ 10,000.00 = $
16,000.00 41 10,000.00
Sanitary Line
Franklin County Multi-Purpose Center Feasibility Study Phase 1 Estimate of Probable Cost
Water Line (Multi-Sized)
Prepared by:
Sanitary Manhole 4 Each @ $ Franklin County Multi-Purpose Center Feasibility Study RV Dump Station (TBD)
Kinzelman Kline Gossman
Subtotal
$
944,400.00 139,682.00
Electric Power & Site Lighting Main Site Electric / Facilty & Distribution
Date:
11/29/2010
Estimate of Probable Cost - Phase 1 MK Revised:
Calculated By: NL Checked By:
Revised:
Project:
Franklin County Multi-Purpose Center Feasibilty Study
Revised:
File No.:
Ext. Description
Each
@ $
139,682.00 = $
85
Each
$
100.00 = $
8,500.00
Parking Lot Lighting Pedestrian Lighting
42 20
Each Each
@ $ @ $
3,100.00 = $ 2,000.00 = $
130,200.00 40,000.00
Subtotal
$
318,382.00
8.00 = $ 8.00 = $
40,000.00 154,880.00
09-218
Earthwork
Preliminary Site Estimate Item
1
Parking Lot GFI's
Quantity
Unit
@
Unit Cost
=
Excavation Topsoil Stockpile & Placement (24 acres)
Total Cost
5,000 19,360
Cu. Yd. Cu. Yd.
@ $ @ $
Subtotal
$
194,880.00 4,000.00
Signage & Wayfinding
Demolition Barn 24 (7,250 square feet) Barn 25 (10,000 square feet.)
1 1
Each Each
@ $ @ $
5,000.00 = $ 5,000.00 = $ Subtotal
$
5,000.00 5,000.00
Pavements Heavy Duty Asphalt Roadway Pavement (4")
1,554
Cu. Yd.
@ $
175.00 = $
271,950.00
3,109
Cu. Yd.
@ $
35.00 = $
108,815.00
Asphalt Pavement (3") for Parking
1,660
Cu. Yd.
@ $
175.00 = $
290,500.00
304 Agg. Base (6") for Asph. Parking
4,000.00 = $ 200.00 = $
800.00
6 25
Each Each
@ $ @ $
200.00 = $ 125.00 = $
1,200.00 3,125.00
Subtotal Planting Allowance
1
10% Contractor Overhead and Profit Subtotal
$
835,841.20
$
9,194,253.20
Sq. Ft.
@ $
15.00 = $
135,375.00
Aggregate Pavement for Parking Curb Ramp
7,336 4
Cu. Yd. Each
@ $ @ $
30.00 = $ 1,250.00 = $
BASE COST SUMMARY
Site Structures
$
100,000.00
1,239,620.00
9,025
Subtotal
100,000.00 = $
8,358,412.00
Specialty Pavement 1 (Concrete Pavers on 4' Concrete Base)
@ $ 5,495,905.00 = $ @ $ 30,000.00 = $
@ $
$
108,300.00
Each Each
Each
Base Cost Subtotal
99,600.00
4.00 = $
1 1
9,125.00
220,080.00 5,000.00
30.00 = $
@ $
Multi-Purpose Center Open Air Covered Arena
$
Planting 100,000.00
@ $
Sq. Ft.
$
@ $ @ $
$
Cu. Yd.
Subtotal
Each Each
Subtotal
3,320 27,075
4" Concrete for Plaza
1 4
Wayfinding Signs Parking Signs
10,000.00
304 Agg. Base (8")
Main Entrance Signs Street Signs (at crosswalk)
5,495,905.00 30,000.00
10% Design Contigency Contigency Grand Total (Base Bid)
5,525,905.00
$
919,425.32
$
10,113,678.52
Site Furniture Benches
12
Each
@ $
350.00 = $
4,200.00
General Notes
Bollards Trash Bins
34 17
Each Each
@ $ @ $
200.00 = $ 300.00 = $
6,800.00 5,100.00
ESTIMATES OF PROBABLE CONSTRUCTION COSTS PREPARED BY THE ARCHITECT REPRESENT
$
16,100.00
COST OF LABOR, MATERIALS, OR THE CONTRACTORS METHODS OF DETERMINING BID PRICES, OR OVER COMPETITIVE BIDDING OR MARKET CONDITIONS. THEREFORE, THE ARCHITECT CANNOT
451,300.00 = $
451,300.00
GUARANTEE THAT BIDS OR CONSTRUCTION COST WILL NOT VARY FROM ANY ESTIMATES OF PROBABLE CONSTRUCTION COST PREPARED BY HIM.
Subtotal
Utilities Storm Sewer (Multi-Sized) Storm Manhole
1
Each
@ $
25
Each
@ $
3,000.00 = $
75,000.00
Water Line (Multi-Sized)
1
Each
@ $
241,500.00 = $
241,500.00
Water Hydrants
4
Each
@ $
3,000.00 = $
12,000.00
Water Service Sanitary Line Sanitary Manhole RV Dump Station (TBD)
HIS BEST JUDGMENT AS A DESIGN PROFESSIONAL. HOWEVER, THE ARCHITECT HAS NO CONTROL OVER THE
1
Each
@ $
3,000.00 = $
3,000.00
1,130
L.F.
@ $
120.00 = $
135,600.00
4 1
Each Each
@ $ @ $
4,000.00 = $ 10,000.00 = $
16,000.00 10,000.00
Subtotal
$
944,400.00 139,682.00
Draft
Page 1 of
Electric Power & Site Lighting 1
Each
@ $
139,682.00 = $
Parking Lot GFI's
Main Site Electric / Facilty & Distribution
85
Each
$
100.00 = $
8,500.00
Parking Lot Lighting Pedestrian Lighting
42 20
Each Each
@ $ @ $
3,100.00 = $ 2,000.00 = $
130,200.00 40,000.00
Subtotal
$
318,382.00
8.00 = $ 8.00 = $
40,000.00 154,880.00
Earthwork Excavation Topsoil Stockpile & Placement (24 acres)
5,000 19,360
Cu. Yd. Cu. Yd.
@ $ @ $
Subtotal
$
194,880.00 4,000.00
Signage & Wayfinding Main Entrance Signs
1
Each
@ $
4,000.00 = $
Street Signs (at crosswalk)
4
Each
@ $
200.00 = $
800.00
6 25
Each Each
@ $ @ $
200.00 = $ 125.00 = $
1,200.00 3,125.00
Wayfinding Signs Parking Signs
Subtotal
$
9,125.00
F a c i l i t y L ay o u t
F i n a n c i a l A n a ly s i s / P r o f o r m a
Franklin County Multi-Purpose Center Feasibility Study
Operational Costs
45
Staff Roles and Responsibilities
The operational costs of running a multi-purpose facility are significant. Staffing demands require more full time and part time employees compared to the fairgrounds existing staffing model. Sales and marketing are critical for the success of such a facility. The process of marketing the facility and actively selling space to users requires a comprehensive and coordinated effort. There are different methods of managing such a facility. Outsourcing the operations including sales, marketing and event facilitation to a management firm is one common alternative to direct owner operation. The differences of each model is shown below. It should be noted that there is the potential for operational economy of scale if this new facility folded into a larger management contract involving other Central Ohio facilities.
Operational Budget The budget to the right was compiled based on analysis of like facilities and an estimate of local conditions related to running such a facility on the Franklin County Fairgrounds. Salaries represent the larger single budget item. Utilities in an operation such as this are significant - representing 25% of revenue for some operations.
Total direct operational costs (not including debt service) are estimated just under $500,000 per year.
Staff Salaries
$225,000
Benefits (25% Salaries)
56,250
Office (No Rent)
24,000
Advertising
36,000
Insurance
10,000
Utilities Other Annual Total
100,000 20,000 $471,250
F i n a n c i a l A n a ly s i s
46
Operational Proforma The annual operational costs and estimates of revenues (low, medium and high) are compiled at the right into a time-series view of the project economics with the effects of inflation considered for both costs and revenues. Revenue begins in year 1 at an estimated $400,000 for the low estimate, $500,000 for the medium estimate and $600,000 for the high estimate. It is inflated each year at an annual rate of 3%. Costs are likewise increased at the same rate to account for increases in operations such as salary raises and other costs. The Low revenue estimate yields a break even situation - the facility covers its expected cost of operations. It is important to note that these “operational break even�
scenarios are frequently quoted as the goal of other facilities. The cost of development and its associated debt service was generally expected to come from other sources of public finance and / or debt. The medium and high revenue estimates yield an annual surplus which would be expected to be available for debt service to repay development construction costs.
Financial Model with Sensitivity Analysis Revenue / Cost Inflation 3.0%
1.00
1.03
1.06
1.09
1.13
1.16
1.19
1.23
1.27
1.30
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Revenue Low
$400,000
$412,000
$424,360
$437,091
$450,204
$463,710
$477,621
$491,950
$506,708
$521,909
Medium
$500,000
$515,000
$530,450
$530,450
$530,450
$530,450
$530,450
$530,450
$530,450
$530,450
High
$600,000
$618,000
$636,540
$655,636
$675,305
$695,564
$716,431
$737,924
$760,062
$782,864
Estimate
$475,000
$489,250
$503,928
$519,045
$534,617
$550,655
$567,175
$584,190
$601,716
$619,767
($79,568)
($81,955)
($84,413)
($86,946)
($89,554)
($92,241)
($95,008)
($97,858)
Expenses
Operational Profit / Available to Service Debt Low Medium High
($75,000)
($77,250)
$25,000
$25,750
$26,523
$11,405
($4,167)
($20,205)
($36,725)
($53,740)
($71,266)
($89,317)
$125,000
$128,750
$132,613
$136,591
$140,689
$144,909
$149,257
$153,734
$158,346
$163,097
Franklin County Multi-Purpose Center Feasibility Study
47
Funding Development Costs with Operational Revenues Three scenarios have been considered to analyze the direct financial “feasibility� of the Franklin County Fairgrounds Multi-Purpose Facility. Alternative 1 - All Development Costs ($11 million Phase 1 only) to be funded by ongoing operations at the facility. This results in an expected debt service requirement of over $636,000 per year and consequently yields negative cash flows for all three revenue models - only showing a net profit in year 10 of the High revenue estimate. Alternative 2 - Funding of Half of Development Costs $5.5 million also shows a net negative cash flow in the first six to seven years. It begins to generate positive cash flow in year 7 of the High revenue estimate and Year 10 of the medium revenue estimate. Alternative 3 - does not include debt service and therefore shows a break even (zero profit) situation for the Low revenue estimate and some profit for the Medium and High revenue scenarios. It should be noted that operational costs could be higher than anticipated thereby reducing free cash flow. Likewise, if the estimates of revenue have been under stated and actual utilization is higher - the resulting increase would improve the model.
Development Capitalization Models Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Alternative 1 - Complete Construction Costs All Phase One Costs - $11,000,000 30-Year Amortization - 4% Rate Debt Service
$636,131
$636,131
$636,131
$636,131
$636,131
$636,131
$636,131
$636,131
$636,131
$636,131
Operational Profit / (Loss) After Debt Service Low
($711,131)
($713,381)
($715,699)
($718,086)
($720,544)
($723,077)
($725,685)
($728,372)
($731,139)
($733,989)
Medium
($611,131)
($610,381)
($609,609)
($624,726)
($640,298)
($656,336)
($672,856)
($689,871)
($707,397)
($725,448)
High
($511,131)
($507,381)
($503,519)
($499,540)
($495,442)
($491,222)
($486,875)
($482,397)
($477,785)
($473,034)
$318,066
$318,066
$318,066
$318,066
$318,066
$318,066
$318,066
$318,066
Alternative 2 - Half Construction Costs Half of Phase One Costs - $5,500,000 30-Year Amortization - 4% Rate Debt Service
$318,066
$318,066
Operational Profit / (Loss) After Debt Service
In deciding upon a course of action - particularly if analyzing the feasibility of incurring long term debt, it is important to make conservative estimates as has been the case herein.
Required Fiscal Subsidies Based on this analysis, subsidy appears to be necessary to cover not only initial development costs but also ongoing operations in all but the most aggressive revenue estimate scenarios. With the most conservative revenue estimate, in year one $75,000 would be required to cover operational shortfalls. If half of construction costs are to be covered the subsidy must increase to nearly $400,000. Likewise the subsidy would exceed $700,000 in year 1 if all construction costs must be serviced.
Low
($393,066)
($395,316)
($397,633)
($400,020)
($402,479)
($405,011)
($407,619)
($410,306)
($413,073)
($415,924)
Medium
($293,066)
($292,316)
($291,543)
($306,661)
($322,232)
($338,271)
($354,790)
($371,806)
($389,331)
($407,383)
High
($193,066)
($189,316)
($185,453)
($181,475)
($177,377)
($173,156)
($168,809)
($164,331)
($159,719)
($154,969)
$0
$0
$0
$0
$0
$0
$0
$0
Alternative 3 - No Construction Costs Operations Self Funded - No Debt Service
Debt Service
$0
$0
Operational Profit / (Loss) After Debt Service Low
($75,000)
($77,250)
($79,568)
($81,955)
($84,413)
($86,946)
($89,554)
($92,241)
($95,008)
($97,858)
Medium
$25,000
$25,750
$26,523
$11,405
($4,167)
($20,205)
($36,725)
($53,740)
($71,266)
($89,317)
$125,000
$128,750
$132,613
$136,591
$140,689
$144,909
$149,257
$153,734
$158,346
$163,097
High
F i n a n c i a l A n a ly s i s
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Regional Economic Benefit Communities make investment decisions on public infrastructure and facilities based not only on direct economic practicality but also on overall economic benefit realized by the community as a whole. In the case of the events, travel and tourism industry, long history has shown that the economics of the local facility itself do not adequately capture the downstream benefits to the larger economy. The economic benefits take three general forms: Direct Spending: Spending by the event operator to rent the facility and spending by all participants coming to the event in the form of entry tickets, on-site goods and services, etc.
Indirect Spending: Spending by visitors on other goods and services while participating hotels, restaurants, shopping, gasoline, etc.
Estimated Economic Impact Number of Annual Visitors Portion From Out-of-Town Hotel Nights Direct Spending from Out-of-Town Travelers Total Out-of-Town Direct Spending
75,000 20% 15,000 $249 $3,735,000
Induced Spending: Additional economic activity spurred by the direct and indirect activity. For instance, a restaurant owner benefits from additional traffic because of the event and pays staff to service this business. These funds then re-enter the local economy as the local employee purchases goods and services with it. - other purchases by local businesses (supplies) The induced effect is generally shown as a multiplier based on an economic analysis of related inputs and outputs in the local and regional economy. In this case, 1.5 was used based on an analysis of other economic impact analyses from like facilities (1.6 and 1.7 were reported but 1.5 has been used here for conservatism).
"Day Trippers" Day-Tripper Direct Spenging Per Person Total Day-Tipper Spending
Total Annual Direct Spending
$60,000 $107 $6,420,000
$10,155,000
The total economic benefit of an equestrian multi-purpose facility on the Franklin County Fairgrounds exceeds $15 million each year. Economic Multiplier
Total Annual Direct, Indirect and Induced Benefits
1.5
$15,232,500
Source of Spending Impact Figures: Experience Columbus 2009. Multiple based on 1.6 and 1.7 figures reported in other facility analyses.
Franklin County Multi-Purpose Center Feasibility Study
Potential Development Partners The AQHC Event is of critical important to the City of Columbus, Franklin County and many other local and regional municipalities. An equestrian multi-purpose facility in Hilliard on the Franklin County Fairgrounds would be an important incentive to retain this important event and grow it in Central Ohio. State and Federal Funds have been used by other communities to fund development of public multi-purpose centers. This model was employed by the City of Jacksonville to fund its equestrian multi-purpose center. The programs and sources of such funds varies and generally relies on committed local, State and National political champions. The Ohio State University continues to be important leader in State agricultural science. Their participation could be sought based on their animal science, veterinary and outreach / extension programming. The AQHC could be a partner to the development in some capacity. Other local and regional equestrian groups should be considered for participation. Naming rights and other advertising could provide additional revenue. “Buy a Brick” donation campaigns and other fund raising should be considered as grass-roots efforts toward its development.
Potential Partners in Development All American Quarter Horse Congress State of Ohio Department of Development Franklin County Commissioners City of Hilliard City of Columbus The Ohio State University Franklin County Agricultural Society 4-H Franklin County Soil & Water Conservation District Youth Sports Organizations Others
F i n a n c i a l A n a ly s i s
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Appendix
Franklin County Multi-Purpose Center Feasibility Study
53
Appendix The Appendix section contains the following: + Advisory Committee Meeting Listing + Comparable Equestrian Facilities + Utility Overlays
Riders warming up during the Franklin County Fair
Appendix
Franklin County Multi-Purpose Center Feasibility Study
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Advisory Committee Meetings April 29th, 2010 Steering Committee Kick-Off Meeting May 25th 2010 Steering Committee Meeting June 24th, 2010 On Site Committee Meeting July 29th, 2010 Steering Committee Meeting August 18th, 2010 Steering Committee Meeting September 10th, 2010 Focus Group Meeting
Stakeholders meeting on site at the Franklin County Fairgrounds, June 24, 2010
Appendix
Franklin County Multi-Purpose Center Feasibility Study
57
Comparable Equestrian Facilities The following best existing equestrian facilities have been included to reflect multiple facilities that contain a close programmatic similarity to that of what is being proposed.
Local Competition 1. Franklin County Fairgrounds 2. The Ohio Expo Center 3. Greater Columbus Convention Center 4. Nationwide Arena 5. Franklin County Veterans Memorial
1
2
3 4 5
0
2 Miles
4 Miles
North
Appendix
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Comparable National Equestrian Facilities Forrest County Multipurpose Center Hattiesburg, MS
Area Statistics
Area Statistics
L
Jacksonville Equestrian Center Jacksonville, FL
IA
Most populous city in Florida
A
E
R
Population - 799,875 People (2006) Median Household Income - $40,316 (2000)
Fourth largest city in the state Population - 44,779 People (2000) Hattiesburg is centrally located less than 90 minutes from New Orleans and Mobile, the Gulf Coast and Jackson, Mississippi.
Facility
Facility
Main Indoor Arena • 150’ x 300’ Indoor multipurpose arena • Cooled with large fans • State-of-the-art dirt floor • Attached 7,200 sq. ft. of covered staging area provides access to the main arena. • House sound that can be broadcast to the barn, terrace and barn areas. • Seating Capacity 3,700 • Floor seating capacity, 2,675
• • • • • • • • • • • • • • •
Concourse Area • 80,000 square feet of concourse space surrounds the main arena • Includes restrooms, vendor, and concession areas • Full service box office open during ticketed events • Judges stand and show office Concession Facilities • Four concession stands are available within the building. • Facility retains all concession/liquor revenues. • Catering handled through outside company
Events North Florida Dressage Association Schooling Show Series III Night Schooling In The Main Arena Horse Shows In The Park Hunter-Jumper Competition Black Stallion Summer Camp Extravaganza Martha Josey Barrel Racing & Horsemanship Clinic Parelli Natural Horsemanship Clinic Pals N’ Paws Dog Agility Trials
120,000 square foot Main Arena 34, 480 Square Foot Floor Ample Restrooms Climate Controlled 24 ft. x 14 ft. Roll-up Door Clay/Sand/Loam Surface 2 Concession Stands 2,586 Stadium Seats 4 Spotlights 2,500 Floor Seating Capacity Heavy Duty Portable Floor Covering Dressing Rooms Sound System Conference Room Vendor Space Along Concourse concession/liquor revenues. • Catering handled through outside company
Events Concerts Rodeos Monster truck shows Motorcross races Boat & RV shows Barrel races Circuses Cheerleading competitions Horse shows & competitions Horsemanship clinic Dog agility trials
Franklin County Multi-Purpose Center Feasibility Study
Wichita Falls Multi-Purpose Events Center Wichita Falls, TX
Canton Multi-Purpose Center Canton, MS
Area Statistics
Area Statistics
Population - 104,197 people (2000)
Population - 12,911 people (2000)
County seat of Wichita County
County seat of Madison County and situated in the northern part of the metropolitan area surrounding the state capital, Jackson.
Median household income - $32,554 (2000)
59
Median household income - $24,237 (2000)
Facility
Facility
• 50,000 sq. ft. Livestock Barn usable floor space • 120’ x 270’ Indoor Arena (open at both ends) • Direct Access from Livestock Barn to Arena • Arena Seating for 1200 + (walkways above seating area) • 274 Indoor Horse Stalls, 500 Total Stalls Available • 500 Cattle Ties • Customized setups for your specific needs • 4 Wash Stalls • All animal pens under one roof • 6 1/2 acres fenced/shaded parking areas • Sheltered outdoor holding pens with access open to arena • Office space available in Livestock Barn • RV Hook Ups
• Designed to be multi-functional • Banquet hall • The footing is made up of a combination of clay, dirt and sand, it is kept well groomed and prepared for each event on an individual basis. • Indoor arena - 160’ X 240’
Events
Events
National Team Penning Finals Copenhagen PRCA Bull Riding Bal National Junior Cattle Shows Cutting Events Roping Events Barrel race Events
Appaloosa Horse Club Show South Mississippi Equine Association Monthly Meeting All Breed Horse Show National Barrel Horse Association Barrel Racing Monster Trucks United States Championship Wrestling presents destruction II South Mississippi Equine Association Horse Show Bluegrass Festival 2010 VFD Festival Mud Bog 2010 VFD Festival All Breed Show Lamar County Turners & Burners Association ShowDeo Rodeo All Breed Horse Club South Mississippi Equine Association Monthly Meeting Tractor and Engine Show Garden Seminar High School Rodeo Right way to throw away
Appendix
60
Senator Bob Martin Eastern Agricultural Center Williamston, NC
Illinois State Fairgrounds - The Coliseum Springfield, IL
Area Statistics
Area Statistics
About 40 minutes from Greenville, NC
Population - 111,454 people (2000)
Population - 5,844 people (2000)
Capital of Illinois and the county seat of Sangamon County
County seat of Martin County Median household income - $22,925 (2000)
Median household income - $39,388 (2000)
Facility
Facility
• • • • • • •
• The Coliseum was constructed in 1901 • Large, three-story, enclosed oval-shape amphitheater housing a show ring for horses. • ADA accessibility • Concession space • 60,000 Square feet • Metal halide Lighting • Permanent Ticket Windows • 116’ X 241’ Dirt Show Ring • Restrooms • Oval Shaped Amphitheater • Overhead Fans • Seating for 2,688 • Office Space • Sound System Large Overhead Doors
• • • • •
• • • •
110,000 sq. ft., heated and ventilated. 10,000 sq. ft. of vending concourse. 150’ x 300’ arena Seating for 2,286. Fully enclosed 75’ x 125’ paddock Attached 120’ x 240’ covered arena, Two outdoor 120’ x 240’ practice rings and three lunging rings. Barns E & F contain 152 additional stalls Total permanent stall capacity to 456. A total of 18 wash bays serve the six barns now available, all supplied by hot and cold water. An additional 120’ x 240’ riding ring, a dressage pad and two lunging rings are soon to be constructed. These additions to our facility come complete with a new fiber optic sound system to better meet the needs of each event. The East Building has 134 temporary stalls or serving as an indoor riding arena. 100 RV sites with water, electricity 4-station waste disposal site 10,380 square foot Meeting Center Exposition Hall
• Coliseum - Equine Shows • $900.00/day or 10% of gate + $125/ event technology fee • Coliseum - All Non-Equine Shows • $1,500/day or 10% of gate + $125/ event technology fee
Events NE Dist. 4-H Horse Show Sr. Expo 2010 NCQHA Dist. V Spring Classic Quarter Horse Show Carolina Classic Derby Southeast Dist. 4-H Horse Show Morning Star Ranch Memorial Weekend Classic & Derby EHA’s Hunter Horse Show ECOSC Martin Festival Open Horse Show NBHA & IBRA Barrel Racing Firecracker Jubilee/Liberty Bell Classic SERHA Main Event & Double Run Futurity ECOSC Freedom Classic Open Horse Show Summertime Blues Dressage At Its Finest VRHA’s Summer Slide Just Horsin’ ‘Round Open Horse Show EHA Hunter Horse Show ECOSC Sunnyside Open Horse Show 12th Annual Carolina Classic Horse Show Fall Indoor EHA Horse Show 2010 Stampede In The Park Rodeo ECU Equestrian Team IDA Horse Show Carolina Fall Classic SE Affliliate Reining Championship
Events Horse Shows Quarter Midget Racing Concerts Motorcycle Training Softball Tournaments Presidential Rallies Cutting Team Penning Team Roping BMX Clubs Rodeo Circus ATV Racing
Franklin County Multi-Purpose Center Feasibility Study
Great Southwest Equestrian Center Katy, TX
Tunica County Expo & Arena Canton, MS
Area Statistics
Area Statistics
Within the Houston–Sugar Land–Baytown metropolitan area
Located on the edge of a growing gambling destination
30 mins from Houston
Population - 1,132 people (2000)
Population - 11,775 people (2000)
County seat of Tunica County
Median household income - $51,111 (2000)
Median Household Income - $26,607 (2000)
Facility
Facility
• Great Southwest Equestrian Center has been serving Houston and the state of Texas since 1986. • Attracts equestrians from across the United States, Mexico, Canada and beyond. • A new and exciting renovation is under way! • Enhanced viewing areas • Improved footing • Special walkways for horses and people • Luxurious hospitality club • Ability to host multiple events. • Great place for a company picnic or a chili cook-off • Clubroom facility • 4 covered arenas • 5 outdoor arenas • Stalls for up to 1,000 horses • Seating for over 4,000 in main show complex • 5,000 sq. ft. arena club • 100 RV slots • Concession stands, office space and vendor areas • 65-acre complex • More than a half million square feet of covered arenas, stables, pavilions and support buildings for year-round activities regardless of the weather (no rainouts)
• State-of-the-art facilities • The arena can seat more than 2,000 people. • 48,000 square feet of exhibit space • Which can accommodate • 246 booths (10’ X 10’) • More than 600 modular livestock stalls and • Luxury skyboxes • More than 1,000 parking spaces • RV Park and additional RV spaces • Concession area • Adjacent pavilion with showers • Dressing rooms • Adjacent outdoor covered pavilion (400’ X 230’)
Events Equine Events
61
Events Tunica Cutting Horse Futurity Rosa Fort Majorette Jamboree Southeastern Beefmaster Cattle Sale Mid-South Quarter Horse Show Rosa Fort Greene Revue Jeffers Cowboy Mounted Shooting National Championship Brother-N-Laws Team Roping Lucky Dog Productions Barrel Race Southern National Demolition Derby Rosa Fort High School Graduation Shetland Pony & Miniature Horse Show & Sale St. Jude Dixie Land Summer Slam Delta Blues Classic Hunter Jumper Horse Show United States Team Penning Brother-N-Laws Team Roping USTRC Southeast Regional Finals T & J Bucking Stock Sale Mid-South Championship Demolition Derby Boy Scouts of America Scout Base 2010 Fortune 5 Barrel Race
Appendix
Franklin County Multi-Purpose Center Feasibility Study
63
Utility Overlay WATER Existing Utilities Water Storm Sanitary Manhole
Proposed Utilities Water Storm Sanitary Water Manhole Storm Manhole Sanitary Manhole
Piping (by diameter) 440’ - six 2” laterals 1410’ - 6” Pipe 825’ - 8” Pipe
Appendix
64
Utility Overlay SANITARY Existing Utilities Water Storm Sanitary Manhole
Proposed Utilities Water Storm Sanitary Water Manhole Storm Manhole Sanitary Manhole
Piping (by diameter) 1130’ - 8� Pipe
Franklin County Multi-Purpose Center Feasibility Study
65
Utility Overlay STORM Existing Utilities Water Storm Sanitary Manhole
Proposed Utilities Water Storm Sanitary Water Manhole Storm Manhole Sanitary Manhole
Piping (by diameter) 2485’ - 12” Pipe 1130’ - 15” Pipe 880’ - 18” Pipe 500’ - 24” Pipe 480’ - 30” Pipe 125’ - 36” Pipe
Appendix
66
Utility Overlay ALL UTILITIES Existing Utilities Water Storm Sanitary Manhole
Proposed Utilities Water Storm Sanitary Water Manhole Storm Manhole Sanitary Manhole