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that the new competition would outstrip demand. Several were concerned with <br />the effects of a future recession. <br />Maintenance costs creep up over 5-9 years and are significant. <br />0 Clearly there is a leaming curve that applies to operating expenditures. <br />0 Many costs were not incorporated in the initial plans. <br />0 Operating deficits drive significant cost -shaving efficiencies in the third or fourth <br />year of operation. <br />IV FINANCIAL FEASIBILITY ASSESSMENT; METHODOLOGY, APPLICATION AND <br />FINDINGS <br />Here we analyze the feasibility of the Washington State Horse Park by malting <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 projectionss-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 2l3rds of <br />revenues and 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 equipment 4% and other sources 2%. The revenue flow from these <br />functions is remarkably consistent across horse parks. <br />(dote that these revenue sources are proportional to the number of horses using the <br />23 <br />