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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 />• 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 FINANCIAL FEASIBILITY ASSESSMENT: 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 ifre 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 ~t an average of 51 %. Bedding is the next <br />highest source at 18%. Together, stalls and bedding account for over 2/3rds of <br />revenues and these are critical areas in the success of any equestrian park. In addition <br />I <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 />Note that these revenue sources are proportional to the number of horses using the <br />23