Feasibility Study for Park City Ice Arena Expansion

69 Pages·2015·5.18 MB·English

by  Walter Franco

DRAFT
Final Report: Feasibility Study for Park City Ice Arena Expansion

NOVEMBER 23, 2015 // DRAFT
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TABLE OF CONTENTS
1. Introduction 3
2. Historical Analysis 6
3. Comparable Facility Case Studies 17
4. Stakeholder & User Feedback 27
5. Preliminary Site Concepts 38
6. Operating Projections 54
7. Funding Options Analysis 58
Note: This repo rt relies on a variety of information and assumptions to develop market demand and operating projections. Sources of information
and assumptions include, but may not be limited to, information provided by Park City Municipal Corp. and other project stakeholders, input and
opinions provided by relevant third parties, Victus Advisors’ industry experience and previous studies, and publicly available data from various
industry sources. Any such information collected by Victus Advisors has not been audited or verified and has been assumed to be correct. There
will be differences between actual events and the projections contained herein, and we express no assurances of any kind related to any projected
information. Differences between projections and actual events may be material.
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1. INTRODUCTION
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PROJECT BACKGROUND
Victus Advisors was engaged by Park City in July 2015 to conduct an objective
and research-based study of the potential market demand and financial
feasibility of expanding Park City Ice Arena to include a second ice sheet.
In addition, Victus engaged Elliott Workgroup to develop site
analysis and expansion concepts, and Construction Control Corp.
to assist Elliott Workgroup with cost estimates for each concept.
Our consulting team’s study goals include:
• Phases 1 & 2 – Victus Advisors conducted research to understand the market demand for an
expanded arena and recommended initial building program options.
• Phases 3 & 4 – Victus Advisors estimated the financial operations and funding potential for
the various expansion options, while Elliott Workgroup developed initial site plans & design
concepts as well as estimated potential costs with the assistance of Construction Control.
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OUR APPROACH
Facility User Historical
PHASES
Interviews Analysis
1. MARKET
DEMAND
ANALYSIS
Building Comparable
Stakeholder
Program Arena
Interviews
Case Studies
Recs.
2. DEMAND
ESTIMATES
3. SITE
Conceptual Designs & Utilization, Revenue &
& CONCEPT Site Assessment Expense Projections
4. FINANCIAL
Construction Cost
Funding Analysis
& FUNDING Estimates
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2. HISTORICAL ANALYSIS
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PARK CITY ICE ARENA FACILITY OVERVIEW
The Ice Arena:
• Opened in 2006; Footprint: 45,854 gross square feet
• Construction Cost: $5 Million
• Funding: 100% Public (60% Park City Municipal Corporation, 40%
Snyderville Basin Special Recreation District)
• Owner & Operator: Park City Municipal Corporation
• Spectator Seating Capacity: Between 350 and 500
Annual Operations:
• Approximately 92% utilization of available daily ice hours
• Primary event/user types include:
• Adult, high school and youth hockey clubs
• Figure skating academy
• Curling
• Sled hockey
• Speed skating club
• Open skate
• Dance classes

Additional Features:
• 4 locker rooms and 2 supplemental rooms
• 1 party room that can be divided into 2 smaller rooms
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PARK CITY ICE ARENA ORGANIZATIONAL CHART
General
Manager
(Full-Time)
Program Front Desk Operations Building
Coordinator Team Leader Assistant Maintenance
(Full-Time) (Full-Time) (Full-Time) (Full-Time)
Skating Academy Hockey Academy Curling Front Desk Rink Operators
Director Director Instructor Staff
(Part-Time)
(Part-Time) (Part-Time) (Part-Time) (Part-Time)
Building
Skating
Hockey
Coordinator
Instructors
Instructors
(Part-Time)
(Part-Time)
(Part-Time)
Off-Ice
Scorekeepers
Instructors
(Part-Time)
(Part-Time)
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PARK CITY ICE ARENA REVENUES & EXPENSES
Fiscal Year 3-Year Average
Revenues 2013 2014 2015 Total %
Ice Rental $212,161 $268,879 $267,526 $249,522 34%
Leagues 1 39,901 1 75,504 1 64,047 1 59,817 22%
On-Ice Classes, Freestyle & Off-Ice Programs 1 14,235 1 60,595 1 39,780 1 38,203 19%
Public Skate & Drop-In Programs 1 15,641 1 09,277 1 09,485 1 11,467 15%
Retail Sales 3 8,661 2 1,535 3 1,223 3 0,473 4%
Advertising & Other Revenues 4 ,131 3 6,410 3 2,900 2 4,480 3%
Skate Services 1 0,752 1 3,564 1 1,959 1 2,092 2%
Total Revenues $635,481 $785,764 $756,922 $726,056 100%
Expenses
Full-Time Salaries & Benefits $418,530 $396,974 $354,415 $389,973 45%
Part-Time Wages & Benefits 1 66,603 1 60,227 1 75,546 167,459 20%
General & Administrative 1 32,116 1 67,034 1 71,407 156,852 18%
Utilities 1 24,173 1 42,576 1 52,780 139,843 16%
Capital Expenditures 7 ,439 1 ,903 7 8 3,140 0%
Total Expenses $848,861 $868,713 $854,227 $857,267 100%
Net Operating Deficit $( 213,379.55) $( 82,949.31) $( 97,305.65) $ (131,211.50)
Cost Recovery 75% 90% 89% 85%
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USAGE ANALYSIS FY2015 ICE HOURS SEASONALITY
500
455
446
450 438
426
408 408 411
400 400
400 387 389
346
350
Ice Hours
per Month
300
250
200
150
100
50
0
July August September October November December January February March April May June
Approx. Ice Hours
12 13 13 14 14 14 14 15 15 13 11 14
per Day
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