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Fer the survey approach, we called a number of existing horse parks in order to estimate operating costs for a facility of the size proposed for the WSHP. For 400 stall parks, we found a wide range of operating costs, with lows very dose to our estimate and highs around $1.2 million dollars per year (see below). This estimate is very imprecise, for surveyed facilities varied the length of their operating season (with some operating year round), as well as the range of equine and non.-equine events hosted. In our scenarios we increase operating costs by 7% per year until the facility reaches full capacity, and then decrease its growth rate to expected inflation (2.5%). This model of cost over time assumes that many of the operating costs will exist regardless of the number of horse days -for example the manager will have to be paid even in the first year of operation when the number of events is small. To these "fixed" costs we add costs that wlll increase with the number of horse days, such as bedding and manual labor costs. Because only part of the total operating costs will Increase, the rate of total costs wUI increase more slowly (1%) than the number of horse d~ys (20 or25%). - One op,rating cost that is not Included Is property tax. Based on an expenditure of - twenty million dollars and a la~d value of five million dollars, property taxes will be approximately two hundred and twenty five thousand dollars. We have assumed that the taxing jurisdictions waive these taxes -the facility will ~xperience substantial operating losses if these are included. Scenarios: We use the parameters of demand and cost to develop four scenarios regarding profitabllity. All assume an absence of capital costs and property taxes. Tables Two 30