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The model was also run to solve for revenues per home (Scenario 4 ). Under the most <br />likely ass~mptions, the level of revenues per horse necessary to break even in terms of <br />operating costs were unacceptably high. <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-five 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 w~eks per year. <br />Our survey showed that equestrian groups are very sensitive to price. <br />The equestrian-dedicated design limits the size and nature of nonequestrlan <br />events. <br />For full utilization a facility needs to serve large horse events, and th~re 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 can recommend that the plans to raise funds for the facility proceed. · The first two <br />have already been stated, that capital repayment not be required and that property <br />taxes be waived. Third is U,e requirement that In otder to assure successful operation, <br />the Horse Park Authority must recruit a facility manager from the upper 90 percentile of <br />managers and support that manager with top-notch review and assistance by <br />professioAal equestrian management professionals. Finally, the facility will require <br />subsidization from either private foundations or public coffers of approximately $80;000· <br />per year. <br />50