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facility is also not designed for horse boarding, leaving a conflict between stall rentals for horse shows and stall rentals for a "livery stable". In one of our scenarios we include $100,000 per year in aJtematlve revenue, but the generation of this revenue will require considerable entrepreneurial ingenuity. Costs. We used two methods of calculating operating costs. First, we estimated the ~st of each component of operations (e.g. labor costs, utility co~ts, etc.) and add them together (the component approach). Alternatively, we informally surveyed existing horse parks to discover their operating costs (the survey approach). Each method has disadvantages. The component approach has the ~isadvantage that we must estimate the quantities of all inputs -we must know how many workers will be hired, how much fuel will be-used. etc. Such estimates generally assume efficient operations, Which is unlikely in any new business. The survey approach has the advantage that it reflects the costs of actual operations, but the disadvantage that other facilities may have very different operations -for example the number of non-equestrian events may be substantially larger or smaller. Both of our approaches yielded s;milar results, giving us substantial confidence In the approximate cost of operations. The 1998 feasibility study conducted a component cost estimate, based on estimates by the Langer Equestrian Group and confirmed by a survey of 13 equestria11 facilities. That estimate was $445,500 as a first year operating cost, and we scaled that estimate up by the amount of inflation from 1996-2005, resulting in an estimate of $516,232 for the first year of operation .. Another component based cost estimate was perfonned independently by Ed Lapsley as part of his re-estimation of construction costs. His result was within $12,000 of ours. 29