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WSHP Covered Arena & Associated Build-Out-Cle Elum
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06. June
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2017-06-20 10:00 AM - Commissioners' Agenda
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WSHP Covered Arena & Associated Build-Out-Cle Elum
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1/16/2018 3:26:32 PM
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1/16/2018 12:02:44 PM
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Meeting
Date
6/20/2017
Meeting title
Commissioners' Agenda
Location
Commissioners' Auditorium
Address
205 West 5th Room 109 - Ellensburg
Meeting type
Regular
Meeting document type
Supporting documentation
Supplemental fields
Alpha Order
a
Item
Lodging Tax Large Scale Projects Presentations and Request to Consider the Lodging Tax Advisory Committee's Recommendation on the Tourism-Related, Large-Scale Municipality-Owned Capital Projects and Operations Grant Applications
Order
1
Placement
Board Discussion and Decision
Row ID
37453
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In summary,we recommend that the WSHP Authority Board of Directors set up the <br />organization to be run by an experienced professional manageras a commercial <br />operation outside of the State governmental institutions and procedures,that the Board <br />focus its activities on obtaining the site and funding commitmentsrequired for the <br />construction of improvementsand the first five years of operation,and that the Board <br />actively work with existing equestrian organizations to promote the Horse Park project. <br />VII CONCLUSIONSAND RECOMMENDATIONS <br />The primary objectivesof this study were to determine the financial feasibility and <br />potential economic impact of the Washington State Horse Park in its proposed location <br />in Kittitas County,and to make recommendations as to the organizational structure of <br />the institution.We will summarize findings and make recommendationsas they pertain <br />to each of these objectives. <br />FINANCIAL FEASIBILITY <br />Horse parks are not money makers in and of themselves.This is a reality which cannot <br />be overlooked.As shown in our analysis,they have a significant positive impact on the <br />economy,but are not themselvesprofit sources.This is particularly true for high quality <br />facilities where typically revenues do not fully cover operating expenses. <br />We developeda relatively sophisticated financial model to determine economic <br />feasibility.The inputs into this model were gathered from the experiences of operating <br />horse parks around the country,user groups that we surveyed,and the experience of <br />horse park managementprofessionals and consultants.The advantageof using such <br />experiential data is that elementsof good and bad luck,managerial learning,and shifts <br />in facility goals and procedures are therefore incorporated into the modeling process. <br />Four scenarios of the model were developed and "run;"they differed as to assumptions <br />48
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