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that the new competitionwould outstripdemand.Several were concerned with <br />the effects of a future recession. <br />*Maintenance costs creep up over 5-9 years and are significant. <br />*Clearly there is a learning curve that applies to operating expenditures. <br />*Many costs were not incorporated in the initial plans. <br />#Operating deficits drive significant cost-shaving efficiencies in the third or fourth <br />year of operation. <br />IV FINANCIALFEASIBILITYASSESSMENT:METHODOLOGY,APPLICATION AND <br />FINDINGS <br />Here we analyze the feasibility of the Washington State Horse Park by making <br />projections as to its likely operating profits.We assume that the capital expenditure will <br />be provided by other sources from the public and private sectors.In our projections we <br />also assume a waiver of property taxes. <br />Revenues <br />Although there are many categories of revenues,there are four categories that,from <br />the experience of other horse parks,comprise 85-91%of all revenues.Stall rentals are <br />the most significant source of revenues at an average of 51%.Bedding is the next <br />highest source at 18%.Together,stalls and bedding account for over 2/3rds of <br />revenuesand these are critical areas in the success of any equestrian park.In addition <br />to these principal sources,arenas contribute 10%,camping facilities 9%,miscellaneous <br />utilities and equipment4%and other sources 2%.The revenue flow from these <br />functions is remarkably consistent across horse parks. <br />Note that these revenue sources are proportional to the numberof horses using the <br />23