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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-five horse parks break even. <br />The primary reasons for the lack of positive cash flows in our projections of the <br />Washington State Horse Paris are that: <br />The climate and location limits the number of open weeks per year. <br />Our survey snowed that equestrian groups are very sensitive to price. <br />The equestrian -dedicated design limits the size and nature of nonequestdan <br />events. <br />For full utilization a facility needs to serve 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 recommend that the plans to raise funds for the farjliiy 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 manager from the upper 90 percentile of <br />managers and support that manager with top-notch review and assistance by <br />professional equestrian management professionals. Finally, the facility wail require <br />subsidization from either private foundations or public coffers of approximately $90;000• <br />per year. <br />50 <br />