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*For either Scenario,it will be necessary to waive property taxes on the facility <br />and to create a capital funding approach which requires no direct repayment <br />from operating revenues. <br />In one version of the model,we adjusted revenueper horse in order to avoid losses. <br />Under the most likely assumptions,the facility rental fees required were too far above <br />competinglevels.Survey results indicate that horse show organizers are very price <br />sensitive,and the required rental fees would likely result in the facility being unused. <br />Our findings are reflected in the national equestrianpark 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 />Recent local surveys 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 serie large horse events,and there is a lack <br />of growth in the number of 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 repaymentnot be required and that property <br />taxes be waived.Third is the requirement that in order to assure successful operation, <br />5