Feasibility Study - Woodridge Park District · PDF fileFeasibility Study Woodridge Athletic Recreation Center Woodridge (IL) Park District This document details the vision, the business

Feasibility Study Woodridge Athletic

Recreation Center

Woodridge (IL) Park District

This document details the vision, the business model, current status, expected needs, defined markets, and projected results of the Woodridge Athletic Recreation Center project, as well as the

projected feasibility for the success and financial viability of the project. This study represents a formal statement of the business

goals and the reasons why they are believed attainable, in addition to background information about the Park District and its assembled

advisory board.

April 2012

Prepared For: Woodridge Park District

Prepared by: The Sports Facilities Advisory

Feasibility Study ♦ Woodridge Athletic Recreation Center ♦ Woodridge, IL

April 2012

The Sports Facilities Advisory, LLC Page 2

TABLE OF CONTENTS

PROJECT PLANNING & DEVELOPMENT ....................................................................3

EXECUTIVE SUMMARY ........................................................................................................................................... 5 PROJECT INTRODUCTION AND METHODOLGY ...................................................................................................... 7

Project Background ............................................................................................................... 7

Planning and Strategy .......................................................................................................... 8

Final Facility Design - Option 7 ....................................................................................... 11

Site Options .......................................................................................................................... 11

Financial Forecasting .......................................................................................................... 14

PROGRAMMING AND PRODUCTS/SERVICES ....................................................................................................... 15

Projected Revenue of Products and Services .................................................................. 16

MARKET ANALYSIS .........................................................................................................19

FACILITY LOCATION & SITE ACCESSIBILITY ....................................................................................................... 20 MARKET DEMOGRAPHIC CHARACTERISTICS ...................................................................................................... 21 EXISTING PROVIDER ANALYSIS ........................................................................................................................... 24

Existing Turf Providers....................................................................................................... 30

Existing Court Providers .................................................................................................... 32

Existing Baseball and Softball Training Providers ...................................................... 33

Existing YMCA and Rec Centers ....................................................................................... 34

Existing Fitness Providers ................................................................................................. 35

Summary of Existing Service Providers .......................................................................... 37

FINANCIAL ANALYSIS ....................................................................................................39

SUMMARY OF FINANCIAL PROJECTIONS ............................................................................................................. 40

Programming Revenues & Expenses ................................................................................ 40

Payroll ................................................................................................................................... 43

Facility and Operating Expenses ...................................................................................... 46

CONCLUSION .....................................................................................................................48

CONCLUSION & PROFESSIONAL RECOMMENDATION ........................................................................................ 49

Contributors to Project Success ........................................................................................ 49

Challenges to Project Success ........................................................................................... 50

Conclusion, Recommendations & Next Steps ................................................................ 50

APPENDIX ............................................................................................................................52


April 2012


Project Planning & Development


April 2012


THE SPORTS FACILITIES ADVISORY PROFILE

The Sports Facilities Advisory The Park District engaged The Sports Facilities Advisory (SFA) to contribute third-party financial and feasibility analysis and expertise for this indoor sports and recreation facility.

Operated by a team of accomplished sports facility operators, business advisors, league sports experts, corporate team development professionals, and facility design professionals; SFA is a full-service consultancy firm specializing in the planning, opening, and managing of sports and recreation facilities of all sizes and scope. SFA assists clients in evaluating opportunities, developing new sport and recreation facilities – from community centers to professional-level training and competition facilities – and managing or optimizing existing operations. SFA’s work encompasses multisport and multipurpose centers, performance training facilities, health/fitness centers, aquatic facilities, and outdoor complexes. Having served a portfolio of projects totaling more than $2 billion in planned and operational facilities, SFA is called upon to assist sports tourism destinations, private developers, parks and recreation departments and other national/state/local government entities, and architect and engineering firms. SFA also offers design-build and general contractor services, architectural consultations, and bid procurement. Through our network of vendors, SFA has also secured serious discounts for purchases of turf, hardwood, lighting, dasher boards, and other sports-specific elements. SFA facilities provide programming for various sports and activities, such as soccer, lacrosse, football, basketball, volleyball, baseball, softball, hockey, performance training, health/fitness, golf, aquatics, and many more.

Since its inception in 2003, the SFA team has consulted on more than 60 operational sport, recreation, and youth leadership centers across the country. SFA has also completed more than 100 financial forecasts and feasibility analyses for projects across the U.S. and internationally. SFA is conservative in its market research and feasibility projections. More than 70% of the projects analyzed by SFA result in a “Feasibility: No” or require significant changes to the original business model, financing structure, or facility design.

Additional information can be found at www.sportadvisory.com.

http://www.sportadvisory.com/


April 2012


EXECUTIVE SUMMARY

The Sports Facilities Advisory (SFA) – with expertise in developing program plans, business plans, financial forecasts and feasibility analyses, as well as consulting, operational management, and design – has developed a third-party feasibility study and financial analysis for the development of an indoor, multi-sport community and recreation facility in Woodridge, Illinois surrounding area. Woodridge Athletic Recreation Center will be situated in the community of Woodridge in the Chicago land market. The Woodridge Park District contracted SFA to analyze the feasibility and financial viability for the project. SFA developed and analyzed seven unique facility models for Woodridge Athletic Recreation Center. The seventh (and recommended) model is a 76,529 square foot facility that features a turf field, a hardwood basketball court, three volleyball courts, six batting cages, a child watch area, a café, and multi-purpose rooms, as well as fitness areas that include weight training, cardio equipment, aerobics, and an elevated track. The center will be equipped to host fitness, youth and adult recreational sports, competitive sports, tournaments, events, parties, performance training, and more. The projected cost of construction is $15MM, not including land and site work. Land and site work costs depend on which of two locations the facility is built. SFA evaluated both sites to determine whether they have the capacity to house the facility. Site 1, called the “TIF Site,” is a 4-acre parcel of land located directly south of outdoor fields already in use for park programs. The TIF Site may be eligible for up to $5 million in TIF subsidies. If it is chosen and the subsidies are granted in full, SFA estimates the total cost of the project to be $13.3MM. Site 2, called the “Orchard Site,” is a 4.5-acre plot already owned by the park system and adjacent to a community aquatics center. Woodridge Park District already owns the land, drastically reducing initial costs, but the site is not in a TIF district, eliminating the possibility of the $5 million in aforementioned subsidies. If the Orchard Site is selected, SFA estimates the total cost of the project would be $15.8MM. The market surrounding Woodridge Athletic Recreation Center has over 1,500,000 people within a 30-minute drive time and features a median household income of $75,552, which is nearly $26,000 or 52% higher than the national average. Sports participation rates in the area are high relative to national averages, and – as should be expected – there are a significant number of existing providers in the market. Each of those factors was weighed as the recommended facility model above was developed. The data was also incorporated into SFA’s proprietary formulas as the financial forecast (pro forma) was developed, which is detailed in the body of this study.


April 2012


Based on SFA’s proven system of planning, managing, and projecting facility utilization, Woodridge Athletic Recreation Center is slated to generate $1.6MM in total revenue its first year and expand to $2.33MM in total revenue in year five. The total cost of goods sold and operating expenses in those respective years is $1.5MM and $1.77MM, meaning that total net is projected to be just under $100,000 in Woodridge Athletic Recreation Center’s first year and over $550,000 in its fifth year. It should be noted that those figures reflect earnings before interest, tax, depreciation, and amortization (EBITDA). Because the site has not been selected, it is impossible to project year-end cash flow, but EBITDA as a percent of revenue (6% in Year 1 and 24% in Year 5) is within the range that signifies a viable model. After careful consideration and comprehensive analysis of the business model, program plan, financials, and the Park District’s vision for the Woodridge Athletic Recreation Center, the project

has been deemed by SFA to be a “Feasibility: Yes.” Please note that this finding is based on EBITDA projections. Furthermore, the finding is predicated on minimal and an appropriate level of debt service so that the cash flow is not hamstrung by excessive principal and interest payments. SFA is conservative in its market analyses, financial forecasts, and feasibility projections, with more than 70% of the projects analyzed by SFA resulting in either a “Feasibility: No” or requiring significant changes to the original business model, financing structure, or facility design. Because of the comprehensive and collaborative approach during the planning, strategy, and feasibility analysis stages – including the exhaustive analysis of numerous potential models – the Woodridge Athletic Recreation Center project stands out as an example of a “Feasibility: Yes.”

Year 1 Year 2 Year 3 Year 4 Year 5

Total Revenue 1,599,191.61$ 1,782,660.83$ 2,062,563.87$ 2,159,254.42$ 2,333,548.86$

Total Cost of Goods Sold 623,783.00$ 652,021.54$ 732,267.70$ 765,982.95$ 821,738.84$

Total Operating Expenses 879,252.17$ 896,853.92$ 915,880.49$ 934,790.17$ 954,396.87$

Total Expenses 1,503,035.17$ 1,548,875.45$ 1,648,148.19$ 1,700,773.12$ 1,776,135.71$

EBITDA 96,156.43$ 233,785.37$ 414,415.68$ 458,481.31$ 557,413.15$

% of Revenue 6% 13% 20% 21% 24%


April 2012


PROJECT INTRODUCTION AND METHODOLOGY

This document represents the analysis and findings related to the development of Woodridge Athletic Recreation Center. The Park District secured the services of SFA to assist in the production of a comprehensive financial forecast and associated feasibility study. Through continual collaboration and information sharing between the Park District and consultant team, this document provides the narrative behind the financial analysis and underlying assumptions.

Project Background On December 12, 2011, Mike Adams (Executive Director) and Don Ritter (Superintendent of Recreation/Deputy Director) of the Woodridge (IL) Park District met by phone with The Sports Facilities Advisory (SFA). This call was a follow-up to a presentation that SFA had completed during the 2011 Athletic Business Conference & Expo on Dec. 1. Mr. Adams attended this session and was interested in learning more about SFA’s capabilities to assist the Woodridge Park District with its recreation center planning process.

Through that discussion, the following facts were identified:

The Woodridge Park District (WPD) had completed a preliminary community needs assessment and determined that there is interest in a community recreation center.

The WPD was interested in evaluating the financial realities for the construction and operation of a community recreation center.

The WPD was interested in pursuing a model that can be financially self-sustaining.

There was interest in evaluating the potential for the site to serve as a community destination; therefore, the site and final plan may include additional spaces for other local entities and/or retail space that could provide economic impact while working synergistically with the community recreation center.

It was critical to the decision-making process that SFA’s study includes detailed financial forecasts.

Vision Statement

Woodridge ARC will establish itself in the community as the place to go for family recreation, indoor sports, and fun in Woodridge and the neighboring communities. The facility – which will function as a high-quality indoor sports complex but maintain the atmosphere of a local community center – will focus on providing a best-in-class playing environment as well as an unmatched experience for families, athletes and spectators.


April 2012


Planning and Strategy To begin the analytical process, the two sides worked through several critical strategy issues in the development of the business model and the financial projections for Woodridge Athletic Recreation Center; more specifically:

Preliminary demographic review and other market characteristics

Product lines & services

The business model

Facility components & amenities

Facility design considerations

Site planning and land acquisition

Projected start-up costs

Community needs and desired impact

Vision

Major marketing strategies

Developing Ideal Customer Relationships© (ICR)

Local providers

Staffing approaches

Facility differentiators

Funding strategy

Construction & pre-opening timeline

Potential strategic alliances

Facility utilization This initial phase of work included discussions related to:

Transforming existing ideas into a realistic plan

Top reasons why facilities fail to meet forecasted revenues

Top reasons why most developers fail to raise capital

Estimating timelines for funding, construction/build-out, profitability, etc.

Keys to successful facility ownership

What’s involved in raising capital for a new facility

Identifying and strengthening resources in preparation for financing presentations

Maximizing revenue per square foot

Current trends in facility financing (common loan terms, rates, equity) and involvement in the daily operations

Typical management and organizational structures

And much more

SFA then completed more in-depth market research to arrive at detailed pricing, team projections and seasonality for the various sports, market demand, and market reach. From there, SFA created and analyzed a total of seven different business and operating models to find the best fit for the market. Based on this extensive research, SFA arrived at its recommended model, which provided for highest and best use and highest returns. The chart on the next page and the narrative that follows outlines models 1-6. Each of these models provided discussion points and insights that contributed to the creation of model 7, designated as the “final facility design.”


April 2012


Models 1-6 Comparison

Option 1 Option 2 Option 3 Option 4 Option 5 Option 6

Fitness, 2 Court Gym, Turf

Fitness, 1 Court Gym, Turf

Fitness, 2 Court Gym, No Turf

Fitness, 2 Court Gym, Synthetic

Fitness, 1 Court Gym, Synthetic

Fitness, 1 Court Gym, No Turf

88,188 sf 75,969 sf 61,188 sf 73,406 sf 61,188 sf 48,969 sf C

on

stru

ctio

n

& S

tart

-Up

Co

st Land + Site work $2,900,000 $2,900,000 $2,900,000 $2,900,000 $2,900,000 $2,900,000

Hard Cost (bldg. only) $12,988,563 $11,192,406 $9,019,563 $10,815,719 $9,019,563 $7,223,406

Field/Sport Equipment $1,013,555 $877,000 $915,577 $998,969 $862,414 $779,023

FF&E $277,830 $277,830 $277,830 $277,830 $277,830 $277,830

Soft Cost $1,802,281 $1,639,205 $1,441,929 $1,600,150 $1,437,074 $1,278,853

Total $18,982,228 $16,886,441 $14,554,898 $16,592,667 $14,496,880 $12,459,111

Total (minus land & site work)

$16,082,228 $13,986,441 $11,654,898 $13,692,667 $11,596,880 $9,559,111

Year One

Revenue $1,808,580 $1,796,850 $1,507,410 $1,582,041 $1,570,311 $1,469,985

Expense $1,615,079 $1,577,665 $1,435,895 $1,495,447 $1,458,033 $1,422,296

EBITDA $193,500 $219,184 $71,514 $86,594 $112,278 $47,689

Year Two

Revenue $2,027,112 $2,014,283 $1,685,285 $1,768,786 $1,755,957 $1,635,762

Expense $1,714,834 $1,676,280 $1,527,674 $1,586,978 $1,548,425 $1,510,126

EBITDA $312,279 $338,002 $157,611 $181,808 $207,532 $125,636

Year Three

Revenue $2,341,198 $2,327,727 $1,956,433 $2,047,412 $2,033,941 $1,893,510

Expense $1,847,483 $1,807,919 $1,642,813 $1,705,275 $1,665,710 $1,619,764

EBITDA $493,715 $519,809 $313,620 $342,137 $368,231 $273,746

Year Four

Revenue $2,453,914 $2,439,769 $2,053,444 $2,146,751 $2,132,606 $1,985,842

Expense $1,917,096 $1,876,488 $1,704,522 $1,768,568 $1,727,959 $1,679,447

EBITDA $536,817 $563,281 $348,922 $378,183 $404,647 $306,395

Year Five

Revenue $2,645,390 $2,630,538 $2,209,225 $2,310,334 $2,295,482 $2,130,667

Expense $2,015,103 $1,973,417 $1,787,835 $1,855,284 $1,813,598 $1,758,332

EBITDA $630,287 $657,122 $421,389 $455,049 $481,884 $372,335

Cumulative (5 Year)

Revenue $11,276,194 $11,209,167 $9,411,796 $9,855,324 $9,788,296 $9,115,765

Expense $9,109,595 $8,911,769 $8,098,740 $8,411,552 $8,213,726 $7,989,964

EBITDA $2,166,599 $2,297,398 $1,313,056 $1,443,771 $1,574,570 $1,125,801

11.4% 13.6% 9.0% 8.7% 10.9% 9.0%

The chart above shows the five-year operations summary for each of the first six models developed. The following descriptions highlight the differences in the models, the thought process behind the adaptations, the effect on usage, and the resulting profitability. Note that for each of the models the land and site work fee was been subtracted, thus eliminating variables caused by location and allowing for the most meaningful contrast of the facilities themselves.


April 2012


Option 1 was the first model developed. It features two basketball courts (each lined for cross-court play on two smaller courts, which is how the majority of youth programming would be run), an unboarded turf field (which allows for maximum flexibility to segment the field into multiple areas, thus accommodating several activities at once and allowing for multiple sports to run simultaneously), and a fitness center. This model is the largest and grandest of the options, but SFA’s in-depth analysis predicted that the court space would be underutilized for the entirety of years 1-5 based on participation rates. Overbuilt courts add cost to both construction and ongoing utilities without significantly increasing revenue, affecting the profitability and yielding a 5-year EBITDA ROI of 11.4%. Option 2 mirrors Option 1 but eliminates one basketball court (and thus two smaller cross-courts). This shift significantly decreases square footage, construction costs, and operating costs, increases the utilization percentages, and only marginally decreases revenue from tournaments/events. The result is a 5-year EBITDA ROI of 13.6%. Option 3 keeps the two-court model developed in Option 1 and the fitness center while eliminating the turf component. The advantage of this model is that it results in the smallest footprint of any of the options, thus decreasing start-up and construction costs, operating costs, and management costs. That said, the courts would still be underutilized, the revenue streams would decrease significantly over Option 1 and Option 2 (because the turf component would be highly utilized), and the overall service to the community would suffer. The 5-year EBITDA ROI is 9.0%, which signifies a low return on a relatively small investment. Option 4 adds a court-sized synthetic floor to Option 3. Synthetic court is more suitable for field sports than hardwood courts, but sacrifices a significant amount of playability offered by turf. The result is a footprint close to that of Option 2 and a mix of activities similar to Option 1, but the savings on building size, operating costs, and field/sport equipment are offset by the decreased draw of synthetic flooring as opposed to turf. The hardwood courts would remain underutilized and revenue on synthetic court is relatively low, resulting in a 5-year EBITDA ROI of 8.7%, the lowest of all of the models. Option 5 presents the next logical iteration: a facility with a single court, a single synthetic court, and a fitness center. The footprint is the same as Option 3 (again requiring low start-up and construction costs, operating costs, and management costs), but the underutilized court is replaced with the more versatile synthetic flooring. This option provides flexibility and adaptability at a low price, but the return remains at a relatively modest 10.9% Option 6 scales down as much as possible, eliminating the multi-sport component all together and paring down to one hardwood court and a fitness center. This option has by far the smallest footprint and construction costs, but also limits the ability to serve a broad spectrum of the community and returns only 9.0% of the investment over 5 years.


April 2012


Final Facility Design - Option 7 After an in-depth analysis and multiple discussions revolving around models 1-6, a seventh and final model was designed. It is a derivative of “Option 2”, which was the most efficient model analyzed in providing a diverse program offering while responding to the market needs of the surrounding Woodridge market place. For this model, Woodridge Athletic Recreation Center’s indoor facility is recommended to include one unboarded turf field flanked by a basketball court overlaid with three volleyball courts. The turf area is designed to accommodate not only traditional field sports such as soccer, football, and lacrosse, but also field hockey and baseball/softball training. More details on the facility design are as follows:

Basketball court space (115’ x 85’) o 2 cross-court functionality

Volleyball courts (three at 60’ x 30’ over the above court space)

Unboarded turf field (180’ x 120’) o 3 cross-field functionality

Batting cages/pitching tunnels (six at 75’ x 15’ over the turf field)

Fitness/Strength Room (100’ x 75’)

Aerobic Rooms (two at 40’ x 30’)

Fitness Locker Rooms (two at 30’ x 30’)

Elevated Jogging Track (860’ x 10’)

Child Watch Room (30’ x 30’)

Lobby/Welcome Area (30’ x 30’)

Café and Seating Area (40’ x 40’)

Multipurpose Rooms (two at 32’ x 32’, divisible)

Staff Offices (four at 15’ x 15’)

General Office (30’ x 30’)

Outsource Space/CRC Classroom & Computer Lab (two at 30’ x 30’)

Restrooms (three at 20’ x 20’)

Parking (estimated 230 spaces) o 3 per 1000sf of building

Site Options Woodridge Athletic Recreation Center will sit on one of two sites. Site 1, called “TIF Site” for identification purposes, is a 4-acre parcel of land located on the northeast corner of North Janes Ave and 83rd St directly south of outdoor fields already in use for park programs. There is efficient street access and if necessary, future expansion is possible on the north side of the building. The site’s proximity to the fields allows for shared parking and enhanced services for residents, but the land is privately owned and will need to negotiate a reasonable purchase price. The city has expressed an initial willingness to provide a TIF subsidy of $5 million. While formal design has not yet begun and with it, a site plan not yet designed, SFA has

analyzed the feasibility of a 4-acre site for the 7 models described. Figure 1 is a conceptual site diagram

Figure 1: Conceptual site lay-out for the “TIF Site” located at North Janes Ave and 83

rd St. Building is denoted in red and parking in grey.


April 2012


demonstrating how the building footprint and parking could work. While the site is “tight,” it can accommodate the building footprint and necessary parking. Site 2, called “Orchard Site” for identification purposes, is located on the east side of North Jane Ave. just south of the 83rd St intersection. It is a 4.5-acre plot already owned by the park system with southern adjacency to a community aquatics center, also allowing for some shared parking and a maximization of space due to each facility’s seasonality. Expansion would be possible to the west. The fact that the land is already owned by the Park District eliminates the acquisition cost, but the site is not located in a TIF district, making none of the $5 million TIF subsidies available. As an additional note, the facility and additional parking would be developed over existing fields that are currently in use by the park district for outdoor programming, so that space would likely need to be relocated. The cost for replacement of those existing fields is not factored into the financial analysis; however, those costs are real and should be considered in site selection. The table on the following page demonstrates a comparison of the two sites utilizing the Model 7 (Final Facility Program Design) financial forecast.

Figure 2: Conceptual site lay-out for the “Orchard Site” located on the east side of North Janes Ave south of the 83

rd St intersection.

Building is denoted in red and parking in grey.


April 2012


Based on the financial analysis, SFA recommends pursuing the TIF site given the following factors:

- The seller of the site is reasonable and is willing to sell the site at market rate. - The TIF subsidies are provided to aid in the development of the facility. - The site is “tight” and the design of the building and parking can be accommodated on

the site as analyzed by SFA. This is predicated on a functional plan for storm water retention and the development authorities providing any necessary variances and adjustments to ordinances that will permit the development at this location.

TIF Site Orchard Site

Fitness, 1 Court Gym, Turf Fitness, 1 Court Gym, Turf

76528.75 76528.75

Land + Sitework $3,200,000 $800,000

Hard Cost (building only) $12,093,278 $12,093,278

Field/Sport Equipment $1,087,137 $1,087,137

FF&E $351,750 $351,750

Soft Cost $1,497,754 $1,497,754

Sub Total $18,229,920 $15,829,920

TIF Land/Site Subsidy (TBD) ($3,200,000) $0

TIF Bldg. Subsidy (TBD) ($1,800,000) $0

PARC Grant ($2,500,000) $0 $0

Total $13,229,920 $15,829,920

Revenue $1,599,192 $1,599,192

Expense $1,503,035 $1,503,035

EBITDA $96,156 $96,156

Revenue $1,782,661 $1,782,661

Expense $1,548,875 $1,548,875

EBITDA $233,785 $233,785

Revenue $2,062,564 $2,062,564

Expense $1,648,148 $1,648,148

EBITDA $414,416 $414,416

Revenue $2,159,254 $2,159,254

Expense $1,700,773 $1,700,773

EBITDA $458,481 $458,481

Revenue $2,333,549 $2,333,549

Expense $1,776,136 $1,776,136

EBITDA $557,413 $557,413

Revenue $9,937,220 $9,937,220

Expense $8,176,968 $8,176,968EBITDA $1,760,252 $1,760,252

Total Development ROI 9.7% 11.1%

Cash on Cash ROI 13.3% 11.1%

Year Four

Year Five

Cumulative

(5 Year)

Co

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& S

tart

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Co

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Model 7 Comparison

Year One

Year Two

Year Three


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Financial Forecasting Upon being retained, SFA reviewed the Park District’s existing model, structure, and study for the Woodridge Athletic Recreation Center project. SFA then proceeded to complete its own comprehensive analysis of the market, existing providers, and opportunities. The forecasts for each model and the subsequent recommendations were reached through an application of SFA’s standard methodology for financial analysis and projections, which have been successfully implemented and proven accurate in the development of sports complexes across the nation. The Park District reviewed SFA’s final analysis and confirmed that it is realistic and attainable; the result of the effort is a mutually approved, thorough financial forecast with supporting documentation to assess the feasibility of the project. The Woodridge Athletic Recreation Center business model will feature a product/service mix focused on leagues, tournaments, camps, clinics, and instruction/training in sports such as soccer, football, lacrosse, baseball, softball, basketball, and volleyball. Complementing the sports and training programs, Woodridge Athletic Recreation Center will also offer plenty of school-age programming and birthday parties. By combining these elements at one site, it is the desire of the Park District to create a hub of activity for the local area and region and to provide a full family experience that promotes player development, competition, involvement, entertainment, and participation. Also, Woodridge Athletic Recreation Center will provide an atmosphere of fun, healthy living, excitement, and a desire to return season after season and year after year.

The keys to success for Woodridge Athletic Recreation Center include the Park District’s ability to drive traffic into the facility, create an unmatched atmosphere and facility that serves as a popular destination and gathering spot, and effectively deliver the variety of unique services being considered. The Park District also has established and is further building relationships within the local and regional sports community; this will attract current programs and leagues and aid in the creation of new and exciting programs that will benefit athletes and participants of all ages and abilities. It should be noted that the Park District is not a new operator in the area, and it currently serves the residents with programming. For that reason, it already has a head start in communication, pubic relations, marketing, and a track record with its customer base.


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PROGRAMMING AND PRODUCTS/SERVICES

Woodridge Athletic Recreation Center will be designed as a “hub” for sports programming, player development, training, and community recreation. As such, the Park District acknowledges the necessity for a diverse mix of products/services and the implementation of various programs and other offerings throughout the indoor facility. By providing these various program spaces and amenities, Woodridge Athletic Recreation Center will offer multiple athletic and recreational activities to serve a wide range of user and community pursuits. The facility will be designed as a cross-marketing engine to increase revenue and develop Ideal Customer Relationships©. Below is a list of the various programs/revenue streams and product and service offerings to be included in the first year of operation and beyond:

Soccer o Instructional Clinics & Camps o Drop-in Play o Tournaments o Leagues o Traveling Soccer

Basketball o Instructional Clinics & Camps o Drop-in Play o Tournaments o Leagues

Lacrosse o Instructional Clinics & Camps o Drop-in Play o Tournaments o Leagues

Football o Instructional Clinics & Camps o Drop-in Play o Tournaments o Leagues

Baseball/Softball o Instructional Clinics & Camps o Private Lessons o Team Rentals o Cage Rentals o Drop-in Play

Volleyball o Instructional Clinics & Camps o Drop-in Play o Leagues

Fitness & Training o Personal Training o Group Training Classes o Group Exercise Classes

Membership o Program Memberships o Day Guest Passes

Court and Field Rentals o Full-Court/Field Rentals o Half-Field Rentals

Birthday Parties o Turf Sport Parties o Baseball Parties o General/Non-Sport Parties

Corporate & Group Events o Corporate Events and Parties o Large Events and Parties o Facility Rentals

Youth Programming o Full-Day and Half-day Camps o Single-day Camps o Teen Programs o Camp Daycare o Lock-ins o Before and After School Programs o Field Trips

Food & Beverage o Concessions o Vending


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Projected Revenue of Products and Services The following table illustrates the revenue (and percentage of revenue) that each product/service lends to the overall bottom line. The specific revenue and expense projections can be found in the financial analysis section of this study and in the accompanying detailed pro-forma. The “Projected Revenue of Products and Services” table demonstrates the diversified revenue base for Woodridge Athletic Recreation Center and how the various contributions increase and are distributed over the first five years of operations. It is important to note that some secondary revenue-generating opportunities (i.e. seasonal offerings per market demand) have not been included.

$ % $ % $ % $ % $ % $ %

Fitness Memberships $510,972 32% $540,026 30% $623,730 30% $654,916 30% $687,662 29% $176,690 35%

Basketball $61,055 4% $70,213 4% $81,096 4% $85,151 4% $93,879 4% $32,824 54%

Volleyball $34,550 2% $39,733 2% $45,891 2% $48,186 2% $53,125 2% $18,575 54%

Court Events (Tournaments) $21,888 1% $25,171 1% $29,073 1% $30,526 1% $33,655 1% $11,767 54%

Court Rentals $45,000 3% $49,500 3% $54,574 3% $54,574 3% $57,302 2% $12,302 27%

Competitive and Travel Soccer $135,975 9% $156,371 9% $180,609 9% $189,639 9% $209,077 9% $73,102 54%

Recreational/Child Development Soccer$64,416 4% $74,629 4% $85,900 4% $90,904 4% $99,512 4% $35,096 54%

Lacrosse $17,100 1% $23,665 1% $27,333 1% $28,700 1% $31,641 1% $14,541 85%

Football $31,425 2% $36,139 2% $41,740 2% $43,827 2% $48,320 2% $16,895 54%

Baseball/Softball $44,830 3% $51,555 3% $59,545 3% $62,523 3% $68,931 3% $24,101 54%

Field Rental $76,500 5% $84,150 5% $88,358 4% $88,358 4% $92,775 4% $16,275 21%

Birthday Parties $32,400 2% $37,260 2% $43,035 2% $45,187 2% $49,819 2% $17,419 54%

Performance Fitness & Training $80,800 5% $92,920 5% $107,323 5% $112,689 5% $124,239 5% $43,439 54%

Corporate & Group Events $23,000 1% $26,450 1% $32,005 2% $33,605 2% $37,049 2% $14,049 61%

Youth Programming $346,351 22% $398,304 22% $481,947 23% $506,045 23% $557,914 24% $211,563 61%

Food & Beverage $72,930 5% $76,577 4% $80,405 4% $84,426 4% $88,647 4% $15,717 22%

Total Revenue $1,599,192 100% $1,782,661 100% $2,062,564 100% $2,159,254 100% $2,333,549 100% $734,357 46%

∆ Growth Yr. 1 to Yr. 5Projected Revenue of Products

and Services

Year 1 Year 2 Year 3 Year 4 Year 5


April 2012



April 2012


THE MANAGEMENT TEAM

The Management Team consists of the Board of Park Commissioners, whose primary responsibility is to set policy and oversee all financial obligations of the proposed facility. The Board is supported by the existing Administrative Staff consisting of the Executive Director, Deputy Director/Superintendent of Recreation, Superintendent of Finance and Personnel, Superintendent of Park Operations and the Assistant Superintendent of Recreation; whose primary responsibilities are to develop and administer financial, administrative, personnel and operations procedures in compliance with the policies established by the Park Board. Facility Management staff responsible for the day to day operations will consist of a Facility Supervisor, Recreation Supervisor, Athletic Supervisor, Fitness Manager, and Maintenance Supervisor. The Management Team will report to the Park Board, as currently reported for other District facilities, on all aspects relative to the overall operational and financial performance of the facility.


April 2012


Market Analysis


April 2012


FACILITY LOCATION & SITE ACCESSIBILITY

A suburb of Chicago, located primarily in DuPage County, Woodridge is located in northeastern Illinois about 30 miles southwest of downtown Chicago (see shaded area to the right). Market Accessibility Both the TIF Site and Orchard Site are located near 83rd Street between North Janes Avenue and the Veteran’s Memorial Tollway (TIF Site is north of 83rd, Orchard Site is south). Both locations are on/next to already-in-use Parks and Rec pieces of land, making the facility a natural fit in a known and established area. Either site will allow the facility and the Park District to draw players and patrons from the local area and region for training, leagues, tournaments, and other instructional programs such as camps and clinics. Such market penetration is critical to facility utilization and sustainability.

http://upload.wikimedia.org/wikipedia/commons/6/6a/Illinois_-_outline_map.svg


April 2012


MARKET DEMOGRAPHIC CHARACTERISTICS

Depending on the business model, different parameters are applied when analyzing a market (demographics, participation, existing providers, etc.). For a sports and recreation facility located in a densely populated region such as the Chicago market, industry metrics dictate that a 30-minute drive time area would serve as the “target market” from which to capture facility participants and patrons for regular league, tournament, and training programs. It is this 30-minute demarcation that is employed when analyzing the test facility (Woodridge Athletic Recreation Center) against existing service providers in the area and market reach for specific programming such as soccer, lacrosse, baseball, softball, basketball, volleyball, etc.

The map above depicts Woodridge ARC surrounded by 10-, 15-, and 30-minute drivetimes. The map illustrates population by zip code, with the darker colors representing the denser areas.


April 2012


The map above depicts Woodridge ARC surrounded by 10-, 15-, and 30-minute drivetimes. The map illustrates median household income by zip code, with the darker colors representing the higher income areas. Demographic data provided by Demographics Now.


April 2012


Key Demographics As the table to the right demonstrates, Woodridge Athletic Recreation Center is located in a heavily populated area. What stands out about the demographic factors is that the target market surrounding Woodridge Athletic Recreation Center is stable, young, and affluent. The surrounding area is expected to remain highly populated without having to accommodate for the influx of people seen in many markets; the median age in each of the drive time circumferences analyzed is in line with the U.S. average; and the median household income is significantly higher than the national average. Potential Sports Participation To project the number of teams Woodridge Athletic Recreation Center can expect to capture from the current market, SFA utilized local participation rates reported by American Sports Data, Inc. (ASD), the National Sporting Goods Association (NSGA), and the Sporting Goods Manufacturers Association (SGMA). These reports take into account only active sports participants who play their respective sport in an organized format a set amount of times per year.

Sports Participation - 30-minute Drivetime

Sport Registered

Participant % Potential

Participants

Baseball 5.1% 79,024

Basketball 12.7% 199,126

Football 5.1% 79,416

Soccer 5.3% 82,937

Softball 7.9% 123,622

Volleyball 4.3% 66,506

Futsal 2.4% 37,165

Lacrosse 1.1% 17,213

* Note: existing providers are not factored into this “pool” of participants. The “potential participants” are the number of individuals that the facility and the management team could target for the respective activities. The actual participants would result from a closing percentage of these “potential participants.”

Key Demographic Factors

Category 10

minutes 15

minutes 30

minutes

Total Population (2011 Estimate)

89,902 222,932 1,564,840

Total Population (2016 Projection)

89,345 221,730 1,564,448

Expected Pop. Change (2011-2016)

-0.6% -0.5% 0.0%

Median Age (U.S. = 36.95)

37.7 37.2 36

Median HH Income (U.S. = $49,726)

$75,667 $76,529 $75,552


April 2012


• EXISTING PROVIDER ANALYSIS

As can be expected in a market of this size with such favorable key demographic factors, there are a significant number of existing providers in the area. In order to determine the share of the market that Woodridge Athletic Recreation Center can expect to capture, SFA performed an in-depth analysis of the local providers. That analysis is based on the following factors: • Proximity to existing providers • Sports and Programs offered relative to existing providers • Other services offered • Pricing advantages • Facility quality, aesthetics, and amenities • Existing providers within the desired demographic

Based on an indoor turf, court, and fitness model, Woodridge Athletic Recreation Center must consider five primary categories of similar providers: 1) Existing Turf Providers; 2) Existing Court Providers; 3) Existing BB/SB Training Providers; 4) Existing Fitness Providers; and 5) Existing YMCA/Rec Centers. A provider map for each of those categories can be found on the pages that follow.


April 2012


Woodridge ARC Drive time (30 mins) Turf 1. Ditka’s Sports Dome 2. Seven Bridges Ice Arena 3. Darien Sportsplex 4. Westmont Yard Indoor Sports 5. Bo Jackson Elite Sports 6. Ackerman SFC (Glen Ellyn) 7. Players Indoor Sports Center 8. The Max 9. Bridgeview Sports Dome 10. Sport Zone Family Fun Center 11. Just for Kicks 12. Elite Sports Performance 13. PlayUSA Indoor 14. ChiTown Futbol 15. Finish Strong Indoor Sportsplex 16. Chicago Sports Zone 17. Sportsplex St Charles


April 2012


Woodridge ARC Drive time (30 mins) Court 1. Bulls/Sox Training Academy 2. Sunsetters Volleyball 3. Walker Athletics 4. Ackerman Sports & Fitness Center 5. Players Indoor Sports Center 6. The Max 7. Wheaton Park CAC 8. Illinois Basketball Academy 9. Great Lakes Volleyball Center 10. Sugar Grove Sports Center


April 2012


Woodridge ARC Drive time (30 mins) Baseball/Softball Training 1. Perfect Swing 2. Bulls/Sox Training Academy 3. Quarry Fieldhouse 4. Bo Jackson Elite Sports 5. Ackerman Sports & Fitness 6. The Max 7. Bridgeview Sports Dome 8. Naperville Baseball Academy 9. Centerfield Sports Academy 10. Elite Sports Performance 11. Finish Strong Indoor Sportsplex


April 2012


Woodridge ARC Drive time (15 mins) Fitness 1. Curves 2. LA Fitness 3. Blast Fitness 4. Women’s Workout World 5. X Sport Fitness 6. Edward Health & Fitness 7. Curves 8. Cardinal Fitness 9. Walker Athletics 10. Midtown Athletic Club 11. Good Samaritan Hospital HWC 12. ATI Fitness Center 13. Lifetime Fitness 14. Five Seasons Family Sports Club 15. Edward Health & Fitness- Naperville 16. Anytime Fitness 17. Lifetime Fitness 18. LifeStart Central Park Athletic Club 19. Curves


April 2012


Woodridge ARC Drive time (30 mins) YMCA 1. Indian Boundary YMCA (Downers Grove) 2. Kroeler Family YMCA (Naperville) 3. YMCA Sports Complex Recreation Centers 1. Darien Park District Fitness Center 2. Bolingbrook Annerino Comm. Center 3. Lemont Park District CORE 4. Lisle Community Park Fitness Center 5. Downers Grove Park District Rec Center 6. Bolingbrook Park District RAC 7. Ackerman SPC (Glen Ellyn)


April 2012


EXISTING TURF PROVIDERS Ditka's Sports Dome (www.ditkasportsdome.com) Located approximately 4 minutes away in Bolingbrook, Ditka’s Sports Dome features a 70,000 square foot dome with an unboarded turf field and a 44 station, 2-deck driving range. Seven Bridges Ice Arena (www.sevenbridgesicearena.com ) Located approximately 6 minutes away in Woodridge, Seven Bridges Ice Arena features two ice sheets and one small unboarded turf field used for programs including Lil’ Kickers. Darien Sportsplex (www.dariensportsplex.com) Located approximately 10 minutes away in Darien, Darien Sportsplex features three ice sheets and a 185’ x 85’' turf field. The facility is owned by the park district. Westmont Yard Indoor Sports (www.westmontyard.com) Located approximately 12 minutes away in Westmont, Westmont Yard Indoor Sports features a 270’ x 180’ field that divides into three 180’ x 90’ fields and is used for a variety of indoor sports. Bo Jackson’s Elite Sports (www.bojacksonselitesports.com) Located approximately 19 minutes away in Lockport, Bo Jackson’s Elite Sports features two major league-size infields with adjustable base paths, a multipurpose field measuring 110’ x 195’, a three-lane 80-yard track, state of the art agility and speed training area, and 12 batting cages with professional clay mounds. The facility also has a team store, concessions, and rehab clinic. Ackerman Sports & Fitness Center (www.ackermansportsandfitnesscenter.com) Located approximately 22 minutes away in Glen Ellyn, Ackerman Sports & Fitness Center is an 88,000 square foot multi-purpose facility, including a 180’ x 120’ multi-purpose turf field, three high school-size wood basketball courts, two 30-foot climbing rocks, batting cages, an elevated, multi-lane walking/running/jogging track, a 7,000 SF fitness center, multipurpose rooms for fitness classes, locker rooms, and meeting rooms. The facility is owned by the park district. Players Indoor Sports Center (www.playersindoor.com) Located approximately 22 minutes away in Naperville, Players Indoor Sports Center is a 95,000 SF facility featuring three 200’ x 100’' boarded fields, one unboarded 80’ x 50’ training field, and two volleyball courts. McCook Athletic & Expo (MAX) (www.max-mccook.com) Located approximately 22 minutes away in McCook, MAX is a 125,000 SF facility that features two full-sized basketball courts, volleyball courts, and a baseball/softball academy, and is headlined by a 408’ x 159’ full unboarded field that can be divided into four 159’ x 102’ pods. MAX is Chicago's first full-sized outdoor field under roof; it is positioned under a 40’ clear-span roof. Bridgeview Sports Dome (www.bridgeview-il.gov/dome/) Located approximately 24 minutes away in Bridgeview, Bridgeview Sports Dome is a 90,000 SF facility featuring a variety of sporting activities, plus free chipping and putting areas. The Dome can be reserved for indoor soccer, softball, baseball, whiffle ball, football practice or leagues, seminars, meetings and parties.


April 2012


Sport Zone Family Fun Center (www.sportzonepark.com) Located approximately 26 minutes away in Aurora, Sport Zone Family Fun Center is a dome structure featuring an unboarded field used for a variety of sports. Just for Kicks (www.justforkicks.org) Located approximately 27 minutes away in Plainfield, Just for Kicks is a 50,000 SF facility that features two 100’ x 200’ fields and two full-size outdoor fields behind the building. Elite Sports Performance (www.espcomplex.com) Located approximately 27 minutes away in Oswego, Elite Sports Performance features two unboarded 110’ x 65’' turf fields, seven baseball tunnels, and a sports performance training area. PlayUSA Indoor (www.playusasoccer.org) Located approximately 28 minutes away in Aurora, PlayUSA Indoor features a 90’' x 40’' field and a 188’' x 90’' field. Both are unboarded. ChiTown Futbol (www.chitownfutbol.com) Located approximately 30 minutes away in Chicago, ChiTown Futbol features two 171’ x 65’' and one 80’ x 50’' boarded turf field. Finish Strong Indoor Sportsplex (www.finishstrongsportsplex.com) Located approximately 31 minutes away in West Chicago, Finish Strong Indoor Sportsplex is a baseball training-focused facility with one 160’ x 75’ boarded turf field, one 95’ x 84’' open turf field used for baseball, drop down tunnels, and training areas. Soccer and lacrosse programs are also featured. Chicago Sports Zone (www.chicagosportszone.com) Located approximately 35 minutes away in Melrose Park, Chicago Sports Zone features two 185’ x 85’ boarded fields, a small fitness center, and a bar. SportsPlex St. Charles (www.sportsplexstc.net) Located approximately 46 minutes away in St. Charles, SportsPlex St. Charles is a 62,500 SF facility featuring two indoor soccer fields, locker rooms, showers, a soccer store, a concession stand, a sports performance center, and a dance studio.


April 2012


EXISTING COURT PROVIDERS Bulls Sox Training Academy (www.bullssoxacademy.com) Located approximately 9 minutes away in Lisle, Bulls Sox Training Academy is a 57,000 SF facility owned by the Chicago Bulls and Chicago White Sox and features three courts, baseball training with 13 tunnels, and a sports fitness center. Sunsetters Volleyball Facility (www.sunsettersvbc.org) Located approximately 11 minutes away in Woodridge, Sunsetters Volleyball Facility features four volleyball sport courts. Walker Athletics and Sports Performance Complex (www.walkerathletic.com) Located approximately 14 minutes away in Lisle, Walker Athletics and Sports Performance Complex is a 100,000 SF facility featuring four hardwood basketball courts and a 12,000 SF fitness center. Ackerman Sports & Fitness Center (www.ackermansportsandfitnesscenter.com) See above. Players Indoor Sports Center (www.playersindoor.com) See above. McCook Athletic & Expo (MAX) (www.max-mccook.com) See above. Wheaton Park Central Athletic Center (www.wheatonparkdistrict.com) Located approximately 23 minutes away in Wheaton, Wheaton Park Central Athletic Center features four hardwood basketball courts, three volleyball courts, two batting cages, and party rooms. Illinois Basketball Academy (www.ibahoops.com) Located approximately 24 minutes away in Naperville, Illinois Basketball Academy features four synthetic courts and competitive basketball programs. Great Lakes Volleyball Center (www.greatlakescenter.com) Located approximately 27 minutes away in Aurora, Great Lakes Volleyball Center is a 60,000 SF facility featuring eight volleyball courts, a training room, a weight training facility, a 10,000 SF mezzanine, and a team store. Sugar Grove Sports Center (www.sg-sports.com) Located approximately 41 minutes away in Sugar Grove, this facility features two-basketball courts and baseball training.


April 2012


EXISTING BASEBALL AND SOFTBALL TRAINING PROVIDERS Perfect Swing (www.perfectswingil.com) Located approximately 6 minutes away in Darien, Perfect Swing features a 38,000 SF training facility. Bulls Sox Training Academy (www.bullssoxacademy.com) See above. The Quarry Fieldhouse (www.quarryfieldhouse.com) Located approximately 15 minutes away in Romeoville, The Quarry Fieldhouse features a large open turf area for training and multiple baseball tunnels. Bo Jackson’s Elite Sports (www.bojacksonselitesports.com) See above. Ackerman Sports & Fitness Center (www.ackermansportsandfitnesscenter.com) See above. McCook Athletic & Expo (MAX) (www.max-mccook.com) See above. Bridgeview Sports Dome (www.bridgeview-il.gov) See above. Naperville Baseball Academy (www.5toolschool.com) Located approximately 24 minutes away in Naperville, Naperville Baseball Academy is a 7,200 SF facility featuring seven tunnels. Centerfield Sports Academy (www.centerfieldsportsacademy.com) Located approximately 24 minutes away in Naperville, Centerfield Sports Academy features three auto cages, four tunnels, four mound areas, and a 120’ x 50' infield space. Elite Sports Performance (www.espcomplex.com) See above. Finish Strong Indoor Sportsplex (www.finishstrongsportsplex.com) See above.


April 2012


EXISTING YMCA AND REC CENTERS Indian Boundary YMCA (www.ymcachicago.org/indianboundary) Located approximately 13 minutes away in Downers Grove, Indian Boundary YMCA features a fitness center, three courts, a walking track, a six-lane pool, a rock wall, and a skate park. Kroeler Family YMCA (www.ymcachicago.org/kroehler) Located approximately 17 minutes away in Naperville, Kroeler Family YMCA features a fitness center with classes, an indoor track, a gym, and aquatics. YMCA Sports Complex (www.ymcachicago.org/ysportscomplex) Located approximately 25 minutes away in Naperville, YMCA Sports Complex features five synthetic basketball courts, a walking track, and cardio and weight equipment. Darien Park District Fitness Center (www.darienparks.com/FitnessCenter.aspx) Located approximately 9 minutes away in Darien, Darien Park District Fitness Center features a 3,900 SF fitness center. Bolingbrook Annerino Community Center (www.bolingbrookparks.org) Located approximately 10 minutes away in Bolingbrook, Bolingbrook Annerino Community Center features a Lifestyles fitness center, a gymnastics a, dance, rock wall, and a preschool. Lemont Park District CORE Fitness & Aquatic Complex (www.lemontparks.org) Located approximately 10 minutes away in Lemont, Lemont Park District CORE Fitness & Aquatic Complex features a fitness center, indoor/outdoor pool, 21,000 SF three-court gym, an elevated track, and massage therapy. Lisle Community Park Fitness Center (www.lisleparkdistrict.org) Located approximately 12 minutes away in Lisle, Lisle Community Park Fitness Center features a fitness center, with cardio and classes. Downers Grove Park District Rec Center (www.dgparks.org/facilities/recreation-center.htm) Located approximately 13 minutes away in Downers Grove, Downers Grove Park District Rec Center is a 69,000 SF facility featuring a fitness center, 20,000 SF three-court gym, an elevated track, and a multi-purpose center. Bolingbrook Park District Recreation & Aquatic Complex (www.bolingbrookparks.org) Located approximately 14 minutes away in Bolingbrook, this complex features a fitness center with aerobic studios, indoor/outdoor aquatics, a 16,000 SF gym, and multipurpose rooms. Ackerman Sports & Fitness Center (www.ackermansportsandfitnesscenter.com) See above.


April 2012


EXISTING FITNESS PROVIDERS Curves (www.curves.com) Located approximately 4 minutes away in Darien, Curves features fitness for women only. LA Fitness (www.lafitness.com) Located approximately 4 minutes away in Bolingbrook, LA Fitness features fitness, a basketball court, classes, and an indoor pool. Blast Fitness (www.signup.myiclubonline.com) Located approximately 6 minutes away in Downers Grove, Blast Fitness features fitness for $10/month and fitness with classes and tanning for $20/month. Women's Workout World (www.w3body.com) Located approximately 7 minutes away in Downers Grove, Women's Workout World features fitness for women only. X Sport Fitness (www.xsportfitness.com) Located approximately 7 minutes away in Darien, X Sport Fitness features fitness, classes, a pro shop, and tanning for $20/month. Edward Health & Fitness (www.edward.org/fitness) Located approximately 8 minutes away in Woodridge, Edward Health & Fitness features fitness, an indoor track, courts, classes, a spa, aquatics, and retail. Curves (www.curves.com) Located approximately 12 minutes away in Westmont, Curves features fitness for women only. Cardinal Fitness (www.charterfitness.com) Located approximately 13 minutes away in Westmont, Cardinal Fitness features fitness for $10/month at a single location or $20/month at all locations. Walker Athletics and Sports Performance Complex (www.walkerathletic.com) See above. Midtown Athletic Club (www.midtown.com) Located approximately 15 minutes away in Willowbrook, Midtown Athletic Club features fitness, indoor tennis, an indoor track, one court, an indoor pool, a spa, and a pro shop. Good Samaritan Hospital Health and Wellness Center (www.advocatehealth.com) Located approximately 15 minutes away in Downers Grove, Good Samaritan Hospital Health and Wellness Center is a 90,000 SF fitness club with three indoor pools, an indoor track, a fitness and weight room, three group fitness rooms, and a basketball court. ATI Fitness Center (www.atipt.com) Located approximately 15 minutes away in Downers Grove, ATI Fitness Center features fitness and classes for $25/month.


April 2012


Lifetime Fitness (www.clubs.lifetimefitness.com) Located approximately 15 minutes away in Romeoville, Lifetime Fitness features fitness, classes, an indoor pool, an outdoor pool, a court, a rock wall, racquetball, and a spa. Five Seasons Family Sports Club (www.fiveseasonssportsclu.reachlocal.com) Located approximately 15 minutes away in Burr Ridge, Five Seasons Family Sports Club features fitness, indoor tennis, a spa, and a pool. Edward Health & Fitness (www.edward.org/fitness) Located approximately 16 minutes away in Naperville, Edward Health & Fitness features fitness, an indoor track, courts, classes, a spa, aquatics, and retail. Anytime Fitness (www.anytimefitness.com) Located approximately 16 minutes away in Naperville, Anytime Fitness features 24 hour fitness. Lifetime Fitness (www.clubs.lifetimefitness.com) Located approximately 16 minutes away in Burr Ridge, Lifetime Fitness features fitness, classes, an indoor pool, an outdoor pool, a court, a rock wall, racquetball, and a spa. LifeStart Central Park Athletic Club (www.lifestart.net) Located approximately 16 minutes away in Lisle, LifeStart Central Park Athletic Club features fitness, an indoor pool, classes, and a court. Curves (www.curves.com) Located approximately 17 minutes away in Naperville, Curves features fitness for women only.


April 2012


SUMMARY OF EXISTING SERVICE PROVIDERS Due to the broad scope of activities Woodridge Athletic Recreation Center will offer its users, the facility encounters a significant number of existing providers in both the “immediate trade area,” defined as a 15-minute drive time, and the “local trade area,” defined as a 30-minute drive time. The 15-minute drive time is used to determine which existing providers will have the greatest impact on the operations of Woodridge Athletic Recreation Center due to the fact that they are, for all intents and purposes, neighbors. A 30-minute drive time is the industry standard “local trade area” for a sports facility, as patrons will typically drive approximately 1/3 of the time that they will actually spend at the facility. Given that the typical stay for a patron at a sports facility is 1 ½ hours (60 minutes for competition or training plus 15 minutes warm-up and 15 minutes post event or workout); this means that patrons will typically drive 30 minutes each way. The existing provider drive time circumference for fitness facilities is smaller. The industry standard for identifying existing providers is an 8-minute drive time, but SFA uses a 10- and a 15-minute range to achieve conservative, realistic estimates of market share. It is critical to understand that there is a significant difference between the quantity of existing providers and the quality of existing providers. Chicago land is a large, densely populated area, and it should come as no surprise that there are a wide range of existing providers in the realms of sports, recreation, and fitness. SFA’s practice is to identify every existing facility and to weigh each one based on quality. The result is an accurate determination of participation and market retention. In the court market, four of the existing providers are top-tier facilities: BullSox, Walker, IBA, and YMCA Sports Complex. These existing providers headline a list of 14 facilities with court programming (fitness providers with courts are not included), leaving a significant opening to draw basketball players from the local trade area. Based on participation rates and opportunity, Woodridge Athletic Recreation Center can expect to host 120 basketball teams and 36 volleyball teams in its first year, bringing in a majority of the $162,500 in forecasted court revenue. In the turf market, another four existing providers are top-tier facilities: Ackerman, Players Indoor, The Max, and ChiTown. These existing providers lead a group of 14 facilities, again leaving a large opportunity for Woodridge Athletic Recreation Center. Year one should see 167 soccer teams, 81 football teams, and 22 lacrosse teams enter the facility, contributing to $325,400 in forecasted turf revenue. Baseball and Softball training facilities exhibit the highest quality for traditional sports opportunities in the market, with four out of nine facilities qualifying as top-tier existing providers. Although Perfect Swing, BullSox, Bo Jackson’s Elite Sports, and Quarry Fieldhouse will all draw a significant amount of the market, the participation, interest, and spending rates in baseball/softball are high enough to forecast that teams, leagues, memberships, lessons, camps, and rentals will yield $44,800 in revenue.

● ● ● ‘Immediate’ Trade Area =

15 minutes ‘Local’ Trade Area =

30 minutes ● ● ●


April 2012


Fitness facilities in the 15-minute local trade area are both dense and high in quality. LA Fitness, Edward Health and Fitness, Walker, Midtown, Good Samaritan, Lifetime, and Five Seasons are all head-of-class, but Woodridge Athletic Recreation Center will be able to capitalize on its key differentiators and unique positioning to generate over $590,000 worth of membership and fitness/training revenue in its first year. In summary, Woodridge Athletic Recreation Center will benefit from the strong size of the market, density of the population, sizeable participation rates, and high income levels in the area. While there are a significant number of existing providers, there is room for a thoughtfully planned, well-managed facility to run a profitable operation with court, turf, and fitness components at the core of the business. In order to ensure that profitability, Woodridge Athletic Recreation Center will need to focus on how it differentiates itself from existing providers. This can be accomplished through programming and amenities as well as the quality, cleanliness, and level of customer service. In order to protect and improve upon Woodridge Athletic Recreation Center’s initial market position, the experience at this facility must be superior to that of any existing providers in the area, as well as any future facilities. As Woodridge Athletic Recreation Center becomes successful, other entrepreneurs could begin to consider creating a similar facility, which would further increase the number providers in the market. The physical structure and products of the facility could be created with the appropriate resources. However, the experience within the walls will be the greatest barriers of entry for potential new providers.


April 2012


Financial Analysis


April 2012


SUMMARY OF FINANCIAL PROJECTIONS

Operational revenues were accounted for based on SFA’s proven metrics for calculating the number of individuals and teams within the facility’s radius of influence and the percentage of that market that Woodridge Athletic Recreation Center will capture. Programming Revenues & Expenses The overall operating budget is generally a component of the overall service philosophy of the facility’s primary purpose. The following revenues and expenses are based on observations of comparable facilities, stakeholder interviews, market research, and industry leading practices utilizing proprietary forecasting formulas. To meet the following projections, SFA and the Park District recognize that the facility must:

1. Implement a mix of program elements that generate revenue, while attracting a wide range of age groups to accommodate the needs of families, children, teens, and adults, as well as varying levels of competition. The programming will be targeted to maximize youth sports and training activities during peak times and secondary markets (adults, seniors, corporations, etc.) during non-peak times.

2. Implement a marketing plan while leveraging the existing park district customer base that includes proper pricing points, operating hours, and an aggressive rollout and community outreach campaign, as well as continual brand development and industry leading tactics to attract users post opening.

3. Employ a strong leadership team, which can plan and meet the goals of the facility and take the right actions to attract users to the facility, sustain current members post-opening, increase members and revenue-generating events, and effectively manage the day-to-day operation.

With success in each of those three areas, Woodridge Athletic Recreation Center can expect to achieve the revenue and expense projections outlined in the table below.


April 2012


Total Facility Revenue & Expenses

Revenue Year 1 Year 2 Year 3 Year 4 Year 5

Fitness Memberships $510,972 $540,026 $623,730 $654,916 $687,662

Basketball $61,055 $70,213 $81,096 $85,151 $93,879

Volleyball $34,550 $39,733 $45,891 $48,186 $53,125

Court Events (Tournaments) $21,888 $25,171 $29,073 $30,526 $33,655

Court Rentals $45,000 $49,500 $54,574 $54,574 $57,302

Competitive and Travel Soccer $135,975 $156,371 $180,609 $189,639 $209,077

Recreational/Child Development Soccer $64,416 $74,629 $85,900 $90,904 $99,512

Lacrosse $17,100 $23,665 $27,333 $28,700 $31,641

Football $31,425 $36,139 $41,740 $43,827 $48,320

Baseball/Softball $44,830 $51,555 $59,545 $62,523 $68,931

Field Rental $76,500 $84,150 $88,358 $88,358 $92,775

Birthday Parties $32,400 $37,260 $43,035 $45,187 $49,819

Performance Fitness & Training $80,800 $92,920 $107,323 $112,689 $124,239

Rockwall $0 $0 $0 $0 $0

Corporate & Group Events $23,000 $26,450 $32,005 $33,605 $37,049

Youth Programming $346,351 $398,304 $481,947 $506,045 $557,914

Secondary Areas $0 $0 $0 $0 $0

Food & Beverage $72,930 $76,577 $80,405 $84,426 $88,647

Total Revenue $1,599,192 $1,782,661 $2,062,564 $2,159,254 $2,333,549

Expenses Year 1 Year 2 Year 3 Year 4 Year 5

Fitness Memberships $134,804 $125,109 $140,878 $147,344 $154,053

Basketball $38,465 $43,533 $50,165 $52,673 $57,945

Volleyball $14,299 $16,047 $18,481 $19,405 $21,335

Court Events (Tournaments) $8,425 $8,880 $10,065 $10,530 $11,450

Court Rentals $0 $0 $0 $0 $0

Competitive and Travel Soccer $45,129 $50,335 $58,131 $61,037 $67,286

Recreational/Child Development Soccer $28,527 $36,314 $41,636 $44,203 $48,095

Lacrosse $8,198 $10,751 $12,313 $12,928 $14,138

Football $13,181 $14,796 $17,020 $17,871 $19,625

Baseball/Softball $13,053 $14,495 $16,742 $17,579 $19,381

Field Rental $0 $0 $0 $0 $0

Birthday Parties $13,716 $13,013 $14,909 $15,654 $17,125

Performance Fitness & Training $50,096 $39,210 $45,288 $47,552 $52,427

Rockwall $0 $0 $0 $0 $0

Corporate & Group Events $3,450 $3,692 $4,040 $4,194 $4,441

Youth Programming $209,290 $230,538 $255,028 $265,060 $281,987

Secondary Areas $0 $0 $0 $0 $0

Food & Beverage $43,150 $45,308 $47,573 $49,952 $52,449

Total Cost of Goods Sold $623,783 $652,022 $732,268 $765,983 $821,739


April 2012


Gross Margin $975,409 $1,130,639 $1,330,296 $1,393,271 $1,511,810

% of Revenue 61% 63% 64% 65% 65%

Facility Expenses $339,956 $346,819 $353,830 $360,939 $368,215

Management Payroll $422,600 $431,052 $439,673 $448,467 $457,436

Payroll Taxes/Benefits/Bonus $116,696 $118,983 $122,377 $125,385 $128,746

Total Operating Expenses $879,252 $896,854 $915,880 $934,790 $954,397

EBITDA $96,156 $233,785 $414,416 $458,481 $557,413

% of Revenue 6% 13% 20% 21% 24%

Total Net Income $96,156 $233,785 $414,416 $458,481 $557,413

As demonstrated, success in programming, marketing, and leadership will result in a sizeable return on investment for the operating company. Earnings before interest, tax, debt, and amortization are expected at 6% in year 1 and projected to balloon to 24% in year 5. The Park District will assume debt service for the capital improvement from existing funds. The debt service is excluded from the operational pro forma EBITDA (NOI) projections.


April 2012


Payroll The following table represents the estimated payroll structure required for the programming at Woodridge Athletic Recreation Center:

Facility Management Payroll Summary Year 1 Year 2 Year 3 Year 4 Year 5

Facility Supervisor (Director of Operations)(FT) $55,000 $56,100 $57,222 $58,366 $59,534

Asst. Facility Supervisors (2 - PT) $48,000 $48,960 $49,939 $50,938 $51,957

Athletic Supervisor (Program Director)(FT) $43,000 $43,860 $44,737 $45,632 $46,545

Recreation Supervisor @ 50% (Kids Squad/Camps)(FT) $21,840 $22,277 $22,722 $23,177 $23,640

Fitness Manager (FT) $40,000 $40,800 $41,616 $42,448 $43,297

Marketing & PR Assistant $18,720 $19,094 $19,476 $19,866 $20,263

Facility Maintenance Supervisor (FT) $37,000 $37,740 $38,495 $39,265 $40,050

Maintenance (Grounds) @ 50% of Payroll (FT) $18,720 $19,094 $19,476 $19,866 $20,263

Maintenance Custodial l (2-PT) $33,280 $33,946 $34,625 $35,317 $36,023

Registration/Customer Service Representative (FT) $37,440 $38,189 $38,953 $39,732 $40,526

Registration/Customer Service Representative (PT) $38,400 $39,168 $39,951 $40,750 $41,565

Subtotal Facility Management $391,400 $399,228 $407,213 $415,357 $423,664


April 2012


Total Payroll Summary Pre-Open Year 1 Year 2 Year 3 Year 4 Year 5

Facility Supervisor (Director of Operations)(FT) $27,500 $55,000 $56,100 $57,222 $58,366 $59,534

Asst. Facility Supervisors (2 - PT) $24,000 $48,000 $48,960 $49,939 $50,938 $51,957

Athletic Supervisor (Program Director)(FT) $21,500 $43,000 $43,860 $44,737 $45,632 $46,545

Recreation Supervisor @ 50% (Kids Squad/Camps)(FT) $10,920 $21,840 $22,277 $22,722 $23,177 $23,640

Fitness Manager (FT) $20,000 $40,000 $40,800 $41,616 $42,448 $43,297

Marketing & PR Assistant $9,360 $18,720 $19,094 $19,476 $19,866 $20,263

Facility Maintenance Supervisor (FT) $9,250 $37,000 $37,740 $38,495 $39,265 $40,050

Maintenance (Grounds) @ 50% of Payroll (FT) $4,680 $18,720 $19,094 $19,476 $19,866 $20,263

Maintenance Custodial l (2-PT) $8,320 $33,280 $33,946 $34,625 $35,317 $36,023

Registration/Customer Service Representative (FT) $3,120 $37,440 $38,189 $38,953 $39,732 $40,526

Registration/Customer Service Representative (PT) $3,200 $38,400 $39,168 $39,951 $40,750 $41,565

Subtotal Facility Management $141,850 $391,400 $399,228 $407,213 $415,357 $423,664

Human Resources Generalist - PT (Additional Hours) $2,600 $10,400 $10,608 $10,820 $11,037 $11,257

Finance Assistant (A/P) - PT (Added Position) $5,200 $20,800 $21,216 $21,640 $22,073 $22,515

IT (TBD) $0 $0 $0 $0 $0 $0

Subtotal Finance/HR/IT Payroll $7,800 $31,200 $31,824 $32,460 $33,110 $33,772

Fitness Membership Coordinator (Performed by Fitness Mgr.) $0 $0 $0 $0 $0 $0

Court Coordinator (Basketball) $1,526 $6,106 $7,021 $8,110 $8,515 $9,388

Court Coordinator (Volleyball) $864 $3,455 $3,973 $4,589 $4,819 $5,312

Court Coordinator (Tournaments) $274 $1,094 $1,259 $1,454 $1,526 $1,683

Turf Coordinator (Traveling Soccer) $3,399 $13,598 $15,637 $18,061 $18,964 $20,908

Turf Coordinator (Recreation Soccer) $1,610 $6,442 $7,463 $8,590 $9,090 $9,951

Turf Coordinator (Lacrosse) $428 $1,710 $2,367 $2,733 $2,870 $3,164

Turf Coordinator (Football) $786 $3,143 $3,614 $4,174 $4,383 $4,832

Turf Coordinator (Baseball/Softball) $1,121 $4,483 $5,155 $5,955 $6,252 $6,893

Adventure Area Management $0 $0 $0 $0 $0 $0

Birthday Party Management $810 $3,240 $3,726 $4,304 $4,519 $4,982

Corporate Events Management $0 $0 $0 $0 $0 $0

Concessions Manager $0 $0 $0 $0 $0 $0

Subtotal Program Management Payroll $10,817 $43,270 $50,215 $57,969 $60,938 $67,113

Fitness Membership Attendant and Sales Staff $3,415 $40,977 $32,149 $33,630 $34,735 $35,877

Traveling Soccer Staff $0 $0 $0 $0 $0 $0

Recreational Soccer Staff $0 $0 $0 $0 $0 $0

Basketball Staff $407 $4,884 $5,617 $6,488 $6,812 $7,510

Volleyball Staff $0 $0 $0 $0 $0 $0

Court Events Staff $91 $1,094 $1,259 $1,454 $1,526 $1,683

Lacrosse Staff $0 $0 $0 $0 $0 $0

Football Staff $0 $0 $0 $0 $0 $0

Baseball/Softball Staff $0 $0 $0 $0 $0 $0

Rock Wall Staff $0 $0 $0 $0 $0 $0

Birthday Party Staff $360 $4,320 $2,208 $2,429 $2,550 $2,678


April 2012


Indoor Concession Staff $1,266 $15,194 $15,953 $16,751 $17,589 $18,468

Summer Camp & Kidz Squad Staff $10,682 $128,185 $132,031 $135,991 $140,071 $144,273

Child Watch Room Staff $438 $5,250 $5,408 $5,570 $5,737 $5,909

Maintenance Staff $0 $0 $0 $0 $0 $0

Subtotal Program Staff Payroll $16,659 $199,904 $194,624 $202,313 $209,020 $216,398

Fitness Membership Class Fitness Instructors (Free)

$0 $0 $0 $0 $0

Performance Fitness Trainers/Class Instructors

$40,400 $28,060 $32,409 $34,030 $37,518

Traveling Soccer Camp/Clinic Instructor

$1,969 $2,264 $2,615 $2,746 $3,027

Recreation Soccer Camp/Clinic Instructor

$4,904 $5,777 $6,599 $7,106 $7,657

Lacrosse Camp/Clinic Instructor

$1,500 $1,725 $1,992 $2,092 $2,306

Football Camp/Clinic Instructor

$656 $755 $872 $915 $1,009

Baseball Soccer Camp/Clinic Instructor

$7,225 $8,309 $9,597 $10,076 $11,109

Basketball Instructors

$2,569 $2,954 $3,412 $3,583 $3,950

Basketball Academy Instructors

$0 $0 $0 $0 $0

Volleyball Instructors

$3,000 $3,450 $3,985 $4,184 $4,613

Volleyball Academy Instructors

$0 $0 $0 $0 $0

Climbing Instructors

$0 $0 $0 $0 $0

Group Events Instructors

$0 $0 $0 $0 $0

Subtotal Instructors (COGS) $0 $21,823 $25,234 $29,071 $30,702 $33,671

Traveling Soccer Referees

$18,585 $21,373 $24,686 $25,920 $28,577

Recreation Soccer Referees

$6,720 $14,026 $16,203 $17,174 $18,828

Lacrosse Referees

$2,000 $3,100 $3,581 $3,760 $4,145

Football Referees

$5,760 $6,624 $7,651 $8,033 $8,857

Basketball Officials

$18,202 $20,932 $24,177 $25,386 $27,988

Volleyball Officials

$4,240 $4,876 $5,632 $5,913 $6,519

Court Tournament Officials

$2,400 $2,760 $3,188 $3,347 $3,690

Subtotal Referee/Officials (COGS) $0 $57,907 $73,691 $85,116 $89,533 $98,604

Payroll Subtotal $177,126 $745,504 $774,816 $814,142 $838,659 $873,222

% of Revenue 47% 43% 39% 39% 37%

Health Insurance/Benefits $7,150 $6,600 $6,930 $7,277 $7,640 $8,022

IMRF $19,455 $59,164 $60,347 $61,554 $62,785 $64,041

Bonus Pool $0 $0 $0 $0 $0 $0

Payroll Services $0 $0 $0 $0 $0 $0

Payroll Taxes (FICA) $13,550 $50,932 $51,706 $53,547 $54,959 $56,682

Payroll Taxes/Benefits/Bonus Totals $40,155 $116,696 $118,983 $122,377 $125,385 $128,746

Total Payroll $217,281 $862,199 $893,799 $936,519 $964,044 $1,001,968


April 2012


Facility and Operating Expenses The following tables represent the expenses for the facility and the operations:

Expense Year 1 Year 2 Year 3 Year 4 Year 5

General Expenses

204-Dues & Subscriptions $1,000 $1,020 $1,040 $1,061 $1,082

205-Education & Training (Management) $5,000 $5,100 $5,202 $5,306 $5,412

206-Education & Training (Staff) $1,000 $1,020 $1,040 $1,061 $1,082

209-Printing $6,000 $6,120 $6,242 $6,367 $6,495

210-Advertising $8,000 $8,160 $8,323 $8,490 $8,659

211-Postage $500 $510 $520 $531 $541

212-Transportation $500 $510 $520 $531 $541

218-Contractual Services $0 $0 $0 $0 $0

221-Utilities - Gas $30,612 $31,224 $31,848 $32,485 $33,135

222-Utilities - Electric $76,529 $78,059 $79,621 $81,213 $82,837

223-Utilities - Phone $10,000 $10,200 $10,404 $10,612 $10,824

224-Utilities - Water & Sewer $6,888 $7,025 $7,166 $7,309 $7,455

225-Utilities - Disposal $3,000 $3,060 $3,121 $3,184 $3,247

230- Internet Expense $2,000 $2,040 $2,081 $2,122 $2,165

231-Marketing Services $0 $0 $0 $0 $0

232-Uniforms (Staff) $500 $510 $520 $531 $541

233-Legal $1,000 $1,020 $1,040 $1,061 $1,082

243-Fire Protection $1,035 $1,056 $1,077 $1,098 $1,120

248-Maintenance Agreements $9,000 $9,180 $9,364 $9,551 $9,742

252-Software Maintenance $7,000 $7,140 $7,283 $7,428 $7,577

253-Computer Services $5,000 $5,100 $5,202 $5,306 $5,412

254-Security Services $2,000 $2,040 $2,081 $2,122 $2,165

257-Credit Card Expenses $23,988 $24,468 $24,957 $25,456 $25,965

258-Internet Registration Fees $6,000 $6,120 $6,242 $6,367 $6,495

272-Prof/Community Relations $500 $510 $520 $531 $541

Commodities

303-First Aid $1,000 $1,020 $1,040 $1,061 $1,082

311-Office Supplies $10,000 $10,200 $10,404 $10,612 $10,824

314-Photo ID Supplies $2,000 $2,040 $2,081 $2,122 $2,165

321-Equipment & Supplies $8,000 $8,160 $8,323 $8,490 $8,659

331-Janitorial Supplies $3,000 $3,060 $3,121 $3,184 $3,247

Repairs & Maintenance

424-Maintenance Repairs $15,306 $15,612 $15,924 $16,243 $16,567

434-Equipment & Supplies $10,000 $10,200 $10,404 $10,612 $10,824

436-Grounds Maintenance $5,000 $5,100 $5,202 $5,306 $5,412

Capital Outlay

801-New Equipment $5,000 $5,100 $5,202 $5,306 $5,412

811-Technology $5,000 $5,100 $5,202 $5,306 $5,412

Capital Replacement Program


April 2012


CRP Sinking Fund Transfer $50,000 $51,000 $52,020 $53,060 $54,122

Audit Services

Audit Services $2,500 $2,550 $2,601 $2,653 $2,706

Insurance

Property $3,400 $3,468 $3,537 $3,608 $3,680

Liability & Pollution $3,600 $3,672 $3,745 $3,820 $3,897

EPLI Rate $1,200 $1,224 $1,248 $1,273 $1,299

Workers Compensation (Other Payroll) $4,000 $4,154 $4,312 $4,430 $4,577

Workers Compensation (Maint. Payroll) $3,900 $3,967 $4,046 $4,127 $4,210

Total Facility Expense $339,956 $346,819 $353,830 $360,939 $368,215


April 2012


Conclusion


April 2012


CONCLUSION & PROFESSIONAL RECOMMENDATION

To assess the likelihood of success for a multisport and multipurpose sports and recreation facility in Woodridge, the Park District for the Woodridge Athletic Recreation Center project contracted The Sports Facilities Advisory (SFA) to analyze the feasibility and financial viability for the project. The basis for the project is to serve the Woodridge community by developing a first-class sports, recreation, and training facility with an emphasis on court sports, turf sports, fitness, and events. Woodridge Athletic Recreation Center will provide sports and recreation opportunities for all ages with an emphasis on families including youth programming and development, adult programs, as well as family participation and community involvement. This feasibility analysis and the associated financial projections encompasses market research (demographics, sports participation, existing providers, etc.) specific to this project and this region. Additionally, this analysis details financial projections and recommendations for operational success. What follows are the professional conclusions, findings, and recommendations for the Woodridge Athletic Recreation Center project: Contributors to Project Success For the Woodridge Athletic Recreation Center project, several positive factors can be found, and these “Contributors to Project Success” are listed below:

Site and Location: Both sites are in an established recreational area and supported by the city. In the case of the TIF Site, the facility could benefit from a $5 million TIF to decrease land acquisition, site work, and building expenses and would be able to share parking and resources with an existing Parks and Rec field space to the north. In the case of the Orchard Site, the land would be granted to the project – decreasing land and site work costs by roughly $2.4 million – and the facility would be erected next to an aquatics center that has existing parking and creates a naturally beneficial adjacency and a synergetic use of space based on seasonality.

Market and Demographics: Situated in a community with an ideal demographic makeup, the local market can support a facility of this type and size. Despite the heavy volume of existing providers, Woodridge Athletic Recreation Center will be able to capture a large enough percentage of the market to sustain itself and grow into the future. The income and spending trends in this local area are outstanding, and such demographics bode well for a sports facility when it comes to programming mix and pricing. Chicago has a very strong sports market and it is expected that this facility can capitalize on interest and participation as soon as the doors open.

Construction Costs: With a projected $12-$14 million in available funding and an additional $5 million TIF, the outlined construction cost of $16,886,441 is in line with budget.

Park District track record: The management of the Woodridge Park District currently operates successful programming and has a foundation of an active customer base. The track record for delivering quality service to an already established customer base gives any new facility or operation a head start in marketing new services.


April 2012


Challenges to Project Success As is the case with many start-up endeavors, there are many obstacles to overcome along the path to creating and maintaining a sports facility that is economically viable and financially sustainable. SFA has outlined these “Challenges to Project Success” below: Financing: After discussing the financing of this project in more detail and based on our expertise in planning and developing facilities – along with our vast experience in Chicago – we feel comfortable that the $17,000,000 in secured funding will be sufficient to build the facility regardless of the site. However, receiving the $5 million TIF from the city would change the entire scope of operations and the speed at which the facility can expect to become sustainable assuming an appropriately minimal level of debt service is owed.

Land and Layout: In total, the facility footprint is 4.74 acres. The TIF site is 4 acres and the Orchard Site is 4.5 acres; given the fact that both locations offer shared parking, any adjustments to the plan should be minor but may still be necessary.

Existing Providers: Although the market and the opportunity make this a viable facility, there is a high density of existing providers. Both immediate and long-term success is dependent on a strong opening, which will require a significant amount of work on the part of the founding group and management. A detailed pre-opening plan with measurable goals and targets must be developed to ensure that Woodridge Athletic Recreation Center opens with the momentum it needs to be sustainable.

Conclusion, Recommendations & Next Steps In identifying the positive contributors to success as well as acknowledging the existing challenges listed above, SFA believes this is a very viable project and, under the correct financing and development terms, SFA, as previously stated, formally endorses the project and deems it to be a “Feasibility: Yes.” The financials, cash flow, and operational metrics all meet SFA qualifications and are typical for a start-up indoor sports facility. For next steps, SFA recommends the following:

1. Floor Plan: SFA recommends creating a detailed floor plan that can be helpful in better analyzing the spaces of the facility and can be used by general contractors for budgetary construction pricing. The floor plan will also be used for investor and financing marketing material.

2. Obtain Building Cost Estimates: To further hone in on budget numbers – and possibly lower construction costs – SFA recommends reaching out to one or more general contractors to get more specific quotes on true building and site costs. We have seen contractors recently get aggressive, especially in Chicago, so any reduction of construction budgets will improve the financial numbers and lower the amount of outside equity needed.

3. TIF Acquisition Strategy: Because the TIF is not guaranteed, SFA recommends additional marketing material such as investment information sheets, community information packets, funding presentations, etc.

4. Facility Development Timeline: A comprehensive development timeline including the short term steps mentioned above as part of a more detailed, longterm, and strategic perspective is important to the developmental success of the facility. The timeline should include critical design, entitlement, construction, development, marketing, branding, staffing, and operational milestones. The milestones should be accompanied by anticipated completion dates so that it serves as a roadmap going forward. SFA suggests utilizing this as a “living document” so that it is adjusted and modified as the development process moves forward.


April 2012


If steps are taken to address the issues listed above, SFA suggests that this could be a successful facility and viable business model in Woodridge. If the Park District should determine that any such subsequent work is needed beyond this financial forecast and feasibility study, SFA can provide any such materials and support.


April 2012


APPENDIX

See Supporting Documents under separate cover.


April 2012
