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Table Sbc lists revenue and cost data for eleven horse parks. ranked by the number of permanent staHs. The dollar figures are In thousands. As may be observed from the table, most horse parks experience operating losses, averaging 19% of operating costs. This report's Scenario 3 is consistent with this, with losses of around 11 % of total costs. Facility# 1 2 3 4 5 6 7 8 9 10 11 Table Six: Comparable Facilities' Revenues arid Costs Permane nt Stalls 217 300 400 440 460 480 484 550 672 750 1,100 Revenue ($1,000) $495 $850 $480 $600 $1,178 $6;111 $580 $578 $2,400 " $3,205 $6,190 Costs ($1000) $597 $1,500 $586 $1,100 $1,117 $7,447 $680 $860 $2,400 $3,558 $7,239 Operating Profit ($1000) -$102 --$650 ·$96 ·$500 $61 ~1,276 -$100 -$282 $0 -$363 -$1,049 Average . Profit as a o/o of Costs -17% -43% -16% -45% 5% -17% -15% -33% 0% -10% -14% -19% Scenario 3 predicts operating losses of around $80,000 per year. This ~hould be put in perspective. Whether there are losses or gains of this amount, these results are only a very small percentages of the opportunity cost of the 20 million doltar capital expenditure. At a five percent interest rate, the annual interest on 20 million dollars is one million dollars. The facility also requires two hundred and twenty five thousand dollars forgone property tax. The opportunity cost of the facility, on an annual basis, is therefore $1.225 million. If this facility provides this much value to the citizens of the state, it probably also justifies another .eighty thousand per year in operating subsidies. 32