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The model was also run to solve for revenues per horse (Scenario 4).Under the most <br />likely assumptions,the level of revenues per horse necessary to break even in terms of <br />operating costs were unacceptably high. <br />Our findings are reflected in the national equestrian park picture,where large and <br />medium sized facilities are typically subsidized around 20%of operating revenues. <br />Only two of twenty-fivehorse parks break even. <br />The primary reasons for the lack of positive cash flows in our projections of the <br />Washington State Horse Park are that: <br />The climate and location limits the numberof open weeks per year. <br />Our survey showed that equestrian groups are very sensitive to price. <br />The equestrian-dedicateddesign limits the size and nature of nonequestrian <br />events. <br />For full utilization a facility needs to serve large horse events,and there is a lack <br />of growth in the numberof large horse organizations in the region. <br />Under these circumstances there are several major provisos that must be met before <br />we can recommendthat the plans to raise funds for the facility proceed.The first two <br />have already been stated,that capital repayment not be required and that property <br />taxes be waived.Third is the requirement that in order to assure successful operation, <br />the Horse Park Authority must recruit a facility managerfrom the upper 90 percentile of <br />managersand support that manager with top-notch review and assistance by <br />professionalequestrian managementprofessionals.Finally,the facility will require <br />subsidizationfrom either private foundations or public coffers of approximately $80,000 <br />per year. <br />50