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• For either Scenario, it will be necessary to waive property taxes on the facility <br />and to ~reate a capital funding approach which requires no direct repayment <br />from operating revenues . <br />In one version of the model, we adjusted revenue per horse In order to avoid losses. <br />Under the most likely assumptions, the facility rental fees required were too far above <br />competing levels. 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 equestrian park picture, where large and <br />medium sized facilities are typically subsidized around 20% of operating revenues. <br />Only two of twenty~flve horse 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 number of open weeks per year. <br />Recent local surveys showed that equestrian groups are very sensitive to price. <br />The equestrian-dedicated design Jimits 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 number of large horse organizations in the region. <br />Under these circumstances there are several major provisos that must be met before <br />we car recommend that the plans to raise funds for the facility proceed. The first two <br />have already been stated, that capltal repayment not be required and that property <br />taxes be waived. Third is the requirement that in or,der to assure successful operation, <br />5