Recreational Facility Feasibility Study for James City County

March 8, 2013

December 19, 2013

March 17, 2014

Mr. Russell Seymour Office of Economic Development 101-D Mounts Bay Road Williamsburg, Virginia 23185

Dear Mr. Seymour:

Conventions, Sports & Leisure International (CSL), The Sports Facilities Advisory (SFA), and Counsilman- Hunsaker (C-H) are pleased to present this draft report regarding a financial and market feasibility study for an indoor recreational sports complex and a 50-meter competitive indoor aquatics center, both to be located in Williamsburg, Virginia. The attached report summarizes our research and analyses and is intended to assist James City County in making informed decisions regarding the projects.

The information contained in this report is based on estimates, assumptions and other information developed from research of the market, knowledge of similar sports complexes and other factors, including certain information James City County and other project stakeholders have provided. All information provided to us by James City County, facility management at competitive/comparable facilities, local and regional sports organizations, demographic providers and other sources was not audited or verified and was assumed to be correct. Furthermore, there will be differences between projected and actual results. This is because events and circumstances frequently do not occur as expected, and those differences may be material.

We sincerely appreciate the opportunity to assist you with this project and would be pleased to be of further assistance in the interpretation and application of the study’s findings.

Very truly yours,

CSL International, The Sports Facilities Advisory, and Counsilman-Hunsaker

Conventions, Sports & Leisure International 520 Nicollet Mall • Suite 440 • Minneapolis, MN 55402 • Telephone 612.294.2000 • Facsimile 612.294.2045

TABLE OF CONTENTS

______

Executive Sumary ...... ES-1

1. Introduction ...... 1

2. Local Market Analysis ...... 5

3. Comparable/Competitive Facilities ...... 16

4. Estimated Demand ...... 37

5. Building Program, Cost and Financial Analysis ...... 46

Appendix A: Sports Facility Five-Year Financial Operating Pro Forma

Appendix B: Aquatics Center Five Year Financial Operating Pro Forma

A RECREATIONAL FACILITY FEASIBILITY STUDY FOR JAMES CITY COUNTY

EXECUTIVE SUMMARY

James City County (County) retained the consulting team of Conventions, Sports, & Leisure International (CSL), The Sports Facilities Advisory (SFA), and Counsilman-Hunsaker (C-H) to provide an independent assessment of the market and financial feasibility of both a competitive indoor aquatics center and an indoor recreational sports facility (Aquatics Center and Sports Complex, respectively; collectively, the Facilities). The Sports Complex would be intended to service indoor court sport needs, with an emphasis on basketball and volleyball, but would also support other indoor recreational sports and activities as needed. Both Facilities are envisioned to be economic impact generators, so a key focus would be on attracting regional and national tournaments/meets. This Executive Summary presents key conclusions from a comprehensive, market-based study of the viability of the proposed Facilities. The full report should be read in its entirety to obtain the background, methods and assumptions underlying the findings.

Local Market Analysis

An important component in assessing the potential success of the proposed Facilities in Williamsburg, considering the intentions for the Facilities to be generators of economic impact, is the local market’s ability to be competitive in attracting outside tournaments and meets. Factors such as transportation access to the market and the ease with which potential event-goers can reach the Facilities, travel distances from other regional markets, the availability of hotel accommodations, and the various amenities and attractions that help to strengthen the visitor experience, are all critical in building a competitive tournament/meet destination.

Equally important in the potential success of the proposed Facilities is the demographic and socioeconomic profile of the market area from which the facility could be expected to draw regular users. The strength of a market, in terms of its ability to support and utilize recreational sports facilities is measured, to some extent, by the size of the regional market area population and its age, income, ethnicity and other characteristics. The following is a summary of the key conclusions of the analysis of local market characteristics:

 Williamsburg benefits from a high degree of highway connectivity with the surrounding region. Its location along Interstate 64, which runs the length of the Peninsula and to Richmond, allows for easy access into the City for a large population of potential users. Interstate 95 runs north and south from Richmond and provides northern connectivity to regional markets, Washington, D.C., Baltimore, and Philadelphia.  There are three international airports within 60 miles of Williamsburg that can provide air access to the market – the Newport News/Williamsburg International Airport, Norfolk International, and Richmond International.  Williamsburg and the Greater Market area are known for their tourist draw and provide a great deal of attractions and activities to visitors. The “Historic Triangle,” which drives a great deal of the local tourism, provides a living-history of colonial Williamsburg, Jamestown, and Yorktown.

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EXECUTIVE SUMMARY

 Timeshare accommodations within the Greater Market area play a large part in supporting transient room nights. Room accommodations within properties with 100 rooms or more, including timeshare properties, total 12,600 within a 7-mile radius of downtown Williamsburg total. 6,200 rooms exist within a 3-mile radius.  Based on CSL industry research and past studies, data show that a large majority of local, regular users of recreational sports facilities within markets similar to that of Williamsburg reside in or commute from a geographical area within 30 minutes of the facility. For purposes of this study, this geographical area and its population of potential users will be known as the Primary Market.  The Primary Market for the proposed Facilities is home to approximately 182,000 residents, representing the primary population base of potential local users. Between the years 2000 and 2014, this population base grew 1.7 percent, compared with 0.9 percent for the U.S. as a whole. Growth rates over the next five years are projected to be 1.0 percent for the Primary market and 0.7 percent for the entire country.  The age demographics of the Williamsburg market area are very similar to those of the U.S. as a whole. In terms of local participation, a mix of youth and adult programming should be offered to maximize utilization of the proposed Facilities.

Comparable/Competitive Facilities

Understanding the operations of comparable and potentially competitive sports facilities provides benchmarks from which to assess the potential for the proposed Facilities and is important in understanding the competitive landscape in which they would operate. The following is a summary of the key findings of the analysis of comparable/competitive facilities, separated by facility type:

Aquatic Facilities

 Three national comparable aquatic facilities were evaluated. These facilities, located in Florida, North Carolina, and California, represent a the types of large, national venues that a proposed Williamsburg center would be competing against for large regional and national meets. Physical characteristics include at least one 50-meter competitive pool with moveable bulkheads, at least one 25-yard warm-up/cool-down pool, and average spectator seating for 3,100. Each facility hosts between 35 and 50 competitive events annually, on a local, regional and national basis.  Regionally, eight venues were identified as comparable and/or competitive with the proposed aquatic facility. Four contain 50-meter pools, while the remaining have 25-yard pools. Spectator seating amongst the group, based on available data, shows capacities ranging from 200 to 1,000, and averaging 575. On an annual basis, the facilities host 30 meets, on average, made up of a variety of levels of swimming.  On a local level, there are no aquatic facilities that can accommodate a competitive swimming event of the level anticipated for the proposed Williamsburg facility.

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EXECUTIVE SUMMARY

Recreational Sports Facilities

 Six national comparable recreational sports facilities were evaluated. The six facilities contain an average of nearly 110,000 square feet of space and offer, on average, seven basketball courts and nine volleyball courts. Numerous additional amenities are offered, as well. On average, the facilities host a combined 35 basketball and volleyball tournaments annually, as well as additional events.  Five facilities, all within a one-hour drive of Williamsburg, were determined to best represent the competitive environment, throughout the region, that the proposed rec center would operate in. Total square feet contained within the sample set averages just under 115,000. On average, four full-size basketball and eight full-size volleyball court setups are offered, along with ancillary amenities very similar to those offered by the national comparable facilities.  Locally, the inventory of indoor court facilities is largely made up of area elementary, middle, and high schools gyms, the majority of which are limited in size and court offerings and are most-often used to support practice needs. Additional venues include the James City County Recreational Center and Quarterpath, a Williamsburg recreational center. There is very limited ability within the existing inventory to efficiently host a sizable tournament.

Estimated Demand

A variety of information sources were used to gauge potential utilization for the proposed sports Facilities, including:

 A review of industry trends and sports participation levels;  Interviews with local and regional sports organizations;  Review of historical utilization levels at comparable/competitive facilities.

The following is a summary of the key findings of the analysis of potential demand:

 Assuming Williamsburg-area sports participation rates are similar to those of the U.S. as a whole, the primary market for the proposed Facilities is estimated at approximately 13,400 basketball players, 26,400 swimmers, 1,400 wrestlers, and 5,300 volleyball players. When considering the market relative to each proposed facility, it can be estimated that the aquatic facility will draw from a population of approximately 26,400, while the recreational sports complex has a combined participation base of 20,200. These data indicate that the proposed Facilities will draw from a relatively large population of sports participants, particularly relative to the number of available venues in the market.

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EXECUTIVE SUMMARY

 Based on interviews with representatives of local, regional and national sports organizations, as well as event, activity and attendance levels at comparable/competitive facilities and the experience of the consulting team in analyzing and operating indoor sports venues across the country, estimates were developed with regard to the types of activities that could be supported at a new athletic, recreational and aquatic facilities in James City County. The following table provides an overview of these utilization estimates as they relate to tournaments and competitions at the proposed indoor athletic venue.

Year 1 Year 2 Year 3 Year 4 Year 5 5 Year Total In-House Basketball Number of Tournaments 0 2 4 6 6 18 Number of Players 0 720 1,776 3,904 4,640 11,040 Number of Spectators 0 1,080 2,664 5,856 6,960 16,560

Rental Basketball Number of Tournaments 8 8 6 5 6 33 Number of Players 3,872 4,160 3,344 3,824 5,360 20,560 Number of Spectators 5,808 6,240 5,016 5,736 8,040 30,840

In-House Volleyball Number of Tournaments 0 0 2 2 2 6 Number of Players 0 0 1,680 1,680 2,240 5,600 Number of Spectators 0 0 2,520 2,520 3,360 8,400

Rental Volleyball Number of Tournaments 6 8 8 9 8 39 Number of Players 4,320 6,320 7,120 8,880 8,480 35,120 Number of Spectators 6,480 9,480 10,680 13,320 12,720 52,680

Total Number of Events 14 18 20 22 22 96 Total Number of Players 8,192 11,200 13,920 18,288 20,720 72,320 Total Number of Spectators 12,288 16,800 20,880 27,432 31,080 108,480

Other Uses

Other Indoor Tournaments/Events Drop-In PlayPersonal Training Youth Programs Birthday Parties Athlete GroupChild Training Development Membership

 A summary of utilization estimates for swimming meets and other event activity at the proposed aquatics facility is presented on the following page.

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EXECUTIVE SUMMARY

Year 1 Year 2 Year 3 Year 4 Year 5 5 Year Total Dual Meets Number of Meets 32 32 32 32 32 160 Number of Swimmers 3,200 3,520 3,872 4,256 4,672 19,520 Number of Spectators 6,400 7,040 7,744 8,512 9,376 39,072 Regional Meets - One Day Number of Meets 2 2 2 2 2 10 Number of Swimmers 500 526 552 578 608 2,764 Number of Spectators 1,000 1,050 1,102 1,158 1,216 5,526 Conference Meets - Two Day Number of Meets 1 1 1 1 1 5 Number of Swimmers 200 210 221 232 243 1,106 Number of Spectators 400 420 441 463 486 2,210 USS Meets - One Day Number of Meets 6 5 4 4 4 23 Number of Swimmers 2,700 2,475 2,180 2,396 2,636 12,387 Number of Spectators 5,400 4,950 4,356 4,792 5,272 24,770 USS Meets - Two Day Number of Meets 2 5 6 8 9 30 Number of Swimmers 900 2,475 3,270 4,792 5,931 17,368 Number of Spectators 1,800 4,950 6,534 9,584 11,862 34,730 Elite Meets Number of Meets 1 2 3 3 3 12 Number of Swimmers 1,100 2,420 3,993 4,392 4,833 16,738 Number of Spectators 2,750 6,050 9,984 10,980 12,078 41,842

Total Number of Events 44 47 48 50 51 240 Total Number of Swimmers 8,600 11,626 14,088 16,646 18,923 69,883 Total Number of Spectators 17,750 24,460 30,161 35,489 40,290 148,150

Other Uses

Birthday Parties Public Swim Swim Instruction Youth Programming Water Exercise Membership High School Rentals Other Rentals

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EXECUTIVE SUMMARY

Facility Program and Cost Estimate

James City County has proposed the development of two sites in different locations within the county focusing on court and aquatics, respectively. As such, SFA has created the plan to develop a functional, well designed facility for each location that supports a diverse mix of products/services and allows for the implementation of various programs and other offerings throughout the operating year. Included in the facility program are the following spaces, along with their projected sizes.

James City County Sports Facility – 84,462 Total Square Feet

Program Spaces  Court Area o 6 Basketball Courts (84’ x 50’ each) with apron for circulation and out of bounds area o 12 Volleyball Courts (60’ x 30’ each) (Over Basketball Courts) o Telescopic Bleacher System: 1200 Seats (15 rows)  Admin Area o Admin/Check-in Office (20’ x 10’) o Control Office (10’ x 10’) o Conference Room (20’ x 15’) o Training Room (20’ x 12’)  Team Area o 3 Flex Locker/ Team Rooms (25’ x 25’) o 2 Coaches/Ref Rooms (25’ x 25’)  Rock wall o 40’ vertical recreational climbing wall with adjustable routes o 4 auto-belay systems  Multipurpose/Education Area o 1 room (60’ x 25’) with two adjustable dividing walls to create three breakout rooms  Administration Area o Restrooms o Office area o Kitchen o Café Seating  Upstairs Area o Mezzanine (12’ x 320’) o Hospitality Room (25’ x 20’)

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EXECUTIVE SUMMARY

Based on the information presented herein, the projected cost of the proposed indoor athletic facility development is summarized in the following chart.

USES OF FUNDS Land Cost $1,253,741 Hard Cost $7,449,852 Field and Sport Equipment Cost $1,829,668 Soft Cost $1,904,970 Working Capital Reserve TBD Total Uses of Funds $12,438,232

James City County Aquatics Center – 58,402 Total Square Feet

Program Spaces:  Natatorium o 50M Competition Pool (168’ x 75’) o Warm Up/Instruction Pool (75’ x 46’) o Spectator seating—1500 Seats o Pool Mech. Room & Storage (100’ x 15’)  Upper Level o Mezzanine (220’ x 15’) o Closed Mezzanine (100’ x 17’)

 Admin Area o Dry Land Training Room ( 40’ x 30’) o Lobby/ Welcome Area o Concessions & Seating Area o Pro Shop o Restrooms o Locker Rooms o Family Changing Rooms o Office Area

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EXECUTIVE SUMMARY

The projected cost of aquatics center development is summarized in the following chart.

USES OF FUNDS Land Cost $1,389,434 Hard Costs $10,114,503 Aquatic and Training Equipment Costs $3,670,682 FF&E Costs $542,916 Soft Costs $1,966,749 Working Capital Reserve (WCR) TBD Total Uses of Funds $17,684,285

Financial Operations

The following tables show a summary income statement for each facility produced by SFA. These projections provide a conservative baseline for assessing feasibility.

James City County Sports Facility

Summary Income Statement Year 1 Year 2 Year 3 Year 4 Year 5 Cumulative Total Revenue $723,837 $899,395 $1,130,679 $1,503,051 $1,843,254 $6,100,216 Total Cost of Goods Sold $282,465 $360,510 $464,986 $656,825 $840,887 $2,605,673 Gross Margin $441,372 $538,885 $665,693 $846,226 $1,002,367 $3,494,543 Total Operating Expenses $1,179,928 $1,215,305 $1,259,260 $1,334,991 $1,405,334 $6,394,820 EBITDA ($738,557) ($676,421) ($593,567) ($488,765) ($402,967) ($2,900,277) Debt Service $0 $0 $0 $0 $0 $0 Total Net Income ($738,557) ($676,421) ($593,567) ($488,765) ($402,967) ($2,900,277)

The SFA financial forecast projects cash flow to remain negative through the first 5 years and require a $402,967 subsidy or other cash inflow in year 5. This negative net operating income can be attributed to the fact that the facility is planned for the purpose of attracting non-local participants by hosting tournaments that draw visitors from the state, region, and beyond to participate in tournaments. In order to be competitive with other regional tournament destinations, the facility will need to maintain competitive pricing that – in many cases – will result in lost bottom-line revenue in order to generate economic impact from non-local spending. The local population that would participate in the sports offered at the court facility is not large enough to justify a 6-court gymnasium, but based on the regional opportunity the 6-court facility will optimize economic impact through sports tourism.

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EXECUTIVE SUMMARY

Although the figures below do not factor into the facility’s income statement and cash flow, it is critical to review the economic impact and tax generation as part of the financial analysis. The chart below shows that information, including the total direct spending generated by the facility and the tax revenue generated by that spending.

Economic Impact Year 1 Year 2 Year 3 Year 4 Year 5 Cumulative Total Non-Local Days in Market 37,305 51,225 61,444 95,123 117,521 362,618 Total Room Nights 7,789 10,754 12,956 21,034 26,356 78,889 Economic Impact $4,847,785 $6,656,689 $7,984,615 $12,361,169 $15,271,886 $47,122,144 Indirect Spending $1,066,513 $1,464,472 $1,756,615 $2,719,457 $3,359,815 $10,366,872

County Sales Tax (Direct Spending) - 1% $48,478 $66,567 $79,846 $123,612 $152,719 $471,221 County Transient Room Tax (Direct Spending) - 5% $42,059 $58,074 $69,964 $113,582 $142,320 $425,999 County Meal Tax (Direct Spending) - 5% Meal Purchases $60,434 $82,985 $99,539 $154,098 $190,384 $587,440

As shown, the direct spending in the community catalyzed by the court facility will generate tax revenues for the City and County totaling $150,000 in year one and $485,000 annually at maturity.

James City County Aquatics Center

Summary Income Statement Year 1 Year 2 Year 3 Year 4 Year 5 Cumulative Total Revenue $689,737 $767,867 $889,622 $946,720 $1,028,743 $4,322,690 Total Cost of Goods Sold $217,953 $231,565 $256,038 $270,901 $288,890 $1,265,346 Gross Margin $471,784 $536,302 $633,584 $675,819 $739,854 $3,057,344 Total Operating Expenses $1,106,375 $1,135,953 $1,171,158 $1,205,081 $1,240,679 $5,859,246 EBITDA ($634,590) ($599,651) ($537,573) ($529,262) ($500,826) ($2,801,902) Debt Service $0 $0 $0 $0 $0 $0 Total Net Income ($634,590) ($599,651) ($537,573) ($529,262) ($500,826) ($2,801,902)

The SFA financial forecast projects cash flow to remain negative through the first 5 years and require a $500,826 subsidy or other cash inflow in year 5. This is due to the fact that a competitive aquatics facility has high operating expenses due to the need to heat and maintain the pool and requires certified lifeguards to staff the pools at all times they are open. As is the case with the court facility, the aquatics facility will need to maintain competitive pricing that – in many cases – will result in lost bottom-line revenue in order to serve the local population and generate economic impact from non-local spending.

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EXECUTIVE SUMMARY

Economic Impact Year 1 Year 2 Year 3 Year 4 Year 5 Cumulative Total Non-Local Days in Market 8,695 9,539 10,466 11,485 12,604 52,788 Total Room Nights 1,804 1,980 2,173 2,384 2,617 10,958 Direct Spending $1,126,003 $1,235,301 $1,355,363 $1,487,259 $1,632,162 $6,836,087 Indirect Spending $247,721 $271,766 $298,180 $327,197 $359,076 $1,503,939

County Sales Tax (Direct Spending) - 1% $11,260 $12,353 $13,554 $14,873 $16,322 $68,361 County Transient Room Tax (Direct Spending) - 5% $9,743 $10,691 $11,732 $12,876 $14,133 $59,174 County Meal Tax (Direct Spending) - 5% Meal Purchases $14,086 $15,453 $16,955 $18,605 $20,418 $85,517

As shown, the direct spending in the community catalyzed by the aquatics facility will generate tax revenues for the City and County totaling $35,000 in year one and $51,000 annually at maturity.

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1. INTRODUCTION

The City of Williamsburg (City) is a community of approximately 15,000 residents located 45 miles southeast of Richmond and 40 miles northwest of Norfolk. The City is located on the Virginia Peninsula, a region in the eastern part of the State bounded by the York River, James River, Hampton Roads, and Chesapeake Bay. Williamsburg, along with nearly the entirety of the Virginia Peninsula, falls within the Virginia Beach-Norfolk-Newport News, VA-NC Metropolitan Statistical Area, the Nation’s 37th-largest MSA with a population of approximately 1.7 million people.

Adjacent to Williamsburg to the east and west are York County (York) and James City County (JCC), respectively. Williamsburg, though the county seat of JCC, is considered an independent city of Virginia and is not within the county lines. The cities of Jamestown and Yorktown - within JCC and York, respectively - with Williamsburg, complete what is known as the “Historic Triangle” - a major tourism destination representing a living-history of the three colonial communities.

For reference and comparative purposes throughout this study, Williamsburg, JCC, and York, collectively, will be considered the “Greater Market.”

Greater Market - Williamsburg, James City County, and York County

James City County

York County Williamsburg Yorktown

Jamestown

Source: Google Maps, 2014

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1. INTRODUCTION

Indoor recreational sports facilities and aquatic centers are limited in Williamsburg and throughout the Greater Market area. Demand from local high schools, club teams, recreational league play, and facility programming leaves the current inventory of facilities insufficient in supporting all facility demands effectively. Furthermore, there are no aquatic and rec sports facilities that have the capability of hosting competitive meets and tournaments. Recent efforts by the City and County to grow the appeal of the Williamsburg area as a sports-tourism destination have been hindered by the lack of facilities that can play host to large events.

The Williamsburg area, known for having elite swimming programs, including high school teams that have won numerous state championships as well as a large youth club program, is home to just one aquatic facility that is capable of hosting a competitive meet – the College of William and Mary. Due to constraints in the size and design of the facility, it can only host events on a very small scale and isn’t a consideration for most area meets. Consequently, the local high schools and area clubs are forced to host meets at regional facilities, all at least a 30-minute drive from Williamsburg. Practice needs are satisfied mainly through the use of four local facilities, requiring tight scheduling and less-than-ideal practice times.

The community lacks in its ability to support the needs of its local court sports, as well. While the competition needs of the high school programs are relatively well met, daily high school practice needs, local recreational league play, and club sport practice and game needs struggle to find space and time. Tournaments, which are infrequent in the Greater Market, when held, are small and/or are spread across numerous facilities throughout the area, creating logistical difficulties. Few facilities have multiple gyms and none are equipped to individually host a sizable tournament.

The relative shortage of indoor sports facilities in the Williamsburg area has led the County to consider the development of both an indoor recreational sports facility, with an emphasis on basketball, volleyball and other court sports; and a 50-meter competitive indoor aquatics center. As a part of the planning process, the County retained the consulting team of Conventions, Sports, & Leisure International (CSL), The Sports Facilities Advisory (SFA), and Counsilman-Hunsaker (C-H) to provide an independent assessment of the market and financial feasibility of the proposed indoor sports facilities. The following report summarizes the key findings of the feasibility analysis, and is presented in the following sections:

1. Introduction 2. Local Market Analysis 3. Comparable/Competitive Facilities 4. Estimated Demand 5. Building Program, Cost and Financial Analysis Appendix A: Sports Facility Five-Year Operating Pro Forma Appendix B: Aquatics Center Five-Year Operating Pro Forma

There are two basic objectives under which the development of community and amateur sports and recreational facilities can be considered. These are described below.

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1. INTRODUCTION

Local Model

The local model for each facility is designed as a hub for the James City County area with the intention of serving as a community asset providing sports, recreation, youth development, and educational services. In order to accomplish this goal, it is encouraged that the facilities develop their own program options and partnerships with existing community organizations such as Parks & Recreation, existing program providers, and coaches. By creating partnerships with groups and people who have the ability to bring existing teams/user groups to each location, the court and aquatic facility will immediately host multiple activities and serve a wide range of community pursuits.

During peak hours (after school/work and on the weekends), the James City County Sports Facility and James City County Aquatics Center will offer indoor instructional clinics, leagues, tournaments, classes, and other programs for the following any or all of the following activities:

 Basketball  Recreational Swimming  Volleyball  Competitive Swimming  Court Events  Swimming Events  Court Rentals  Water Exercise  Wrestling  Fitness & Training  Cheerleading  Birthday Parties  Adventure Recreation

In many cases, sustainability hinges on a facility’s ability to serve the community during non-peak hours and seasons (during the school/work day, in between seasons, etc.). In order to maximize utilization and revenue from the local model, both facilities will have to develop opportunities for locals to participate in ways beyond the traditional opportunities above. These non-peak opportunities should feature:

 Child development programs  Half-day and full-day camps  Teen-centric afternoon activities, events, and offerings  Family event nights  Field trips, lock-ins, end-of-year/graduation parties  Open play  Special events and conventions  Corporate/group teambuilding for event/convention guests and local businesses  After-hours social hours for event and convention guests

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1. INTRODUCTION

Sports Tourism Model

The goal of a sports tourism model is to attract teams, players, and spectators to the market to generate revenue for the facility and to create economic impact through direct spending in the community. Within the sports tourism model, there are two primary ways of developing tournaments: creating in-house tournaments and outsourcing tournaments to existing organizers/rights holders.

In-house tournaments require a significant amount of time, energy, and human resources to develop and execute. This type of event requires the facility to market the event, register teams, secure hotels, train staff, hire officials, manage play, etc. As such, significant revenue can be generated but the cost of doing business is high. Additionally, tournaments typically take multiple years to grow, so first-year (and often second-year) events are small, marginally profitable, and create a minimal economic impact.

Outsourced tournaments require much less work on the part of the facility because inventory is rented to a tournament provider who is in charge of securing teams and running the event. Outsourced tournaments often provide significantly greater economic impact in the early years of operation because they are established and grown at other facilities in prior years, so there are more teams in attendance. However, the amount of money the facility can generate on an outsourced tournament is limited because team registration fees always go to the rights holder and other revenue streams (e.g. hotel rebates, gate fees, etc.) are often collected by the rights holder as well.

In order to achieve the ideal balance of revenue generation for each facility and direct spending in the community, the James City County Sports Facility and James City County Aquatics Center should strive for a nearly equal mix of in-house tournaments and outsourced tournaments at maturity. That said, in the early years of operation each facility will likely feature a significantly higher number of outsourced tournaments than in-house tournaments.

*******

This report considers the local use and out-of-town visitor aspects of the project and is designed to assist James City County in understanding the market and financial viability of the proposed Facilities and should not be used for any other purposes. This report should be read in its entirety to obtain the background, methods and assumptions underlying the findings.

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2. LOCAL MARKET ANALYSIS

Considering project stakeholders’ intentions for the proposed Facilities to serve as generators of economic impact, it is important to assess the potential for the Williamsburg-area market to attract outside tournaments and meets. Factors, such as transportation access to the market and the ease with which potential event-goers can reach the Facilities, travel distances from other regional markets, the availability of hotel accommodations, and the various amenities and attractions that help to strengthen the visitor experience, are all critical in building a competitive tournament/meet destination.

The local market analysis presented in this section addresses the following areas:

 Transportation Access;  Hotel Accommodations;  Attractions;  Population;  Age; and,  Income;

Based on CSL industry research and past studies, data show that a large majority of local, regular users of recreational sports facilities within markets similar to that of Williamsburg reside in or drive from a geographical area within 30 minutes of the facility. In other words, patrons are generally willing to travel up to 30 minutes for regular use of a recreational sports facility. Based on these findings, for purposes of this study, the proposed Facilities’ Primary Market of users is assumed to include all areas within a 30- minute drive time.

Locations for the Aquatics Center and the Sports Complex haven’t yet been selected. In order to identify and assess market demographics for the Primary Market, a location within Williamsburg, relatively centralized within the Greater Market, was chosen for reference. If a location other than the selected is ultimately chosen for the either or both Facilities, the Primary Market may need to be reevaluated.

In addition to data pertaining to the anticipated Primary Market, information for the Greater Market, the Virginia Beach-Norfolk-Newport News, VA-NC CBSA, and the United States as a whole have been presented in order to identify strengths and weaknesses relative to regional and national demographic trends.

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2. LOCAL MARKET ANALYSIS

2.1 Transportation Access

Transportation access to and from the proposed Facilities, both in terms of drawing local participation and in attracting interest from regional and national tournament organizers and attendees, represents a key element to the viability of the proposed Facilities.

The following map, designating the Primary Market, provides an indication of the assumed drawing area for the proposed Facilities. As can be seen, a 30-minute drive time nearly encompasses the entirety of James City and York Counties, in addition to the City of Williamsburg. It stretches north to include parts of West Point, New Kent, and Charles City, and south into Newport News.

Reference Location

30-Minute Drive Time

James City County

Williamsburg

York County

Source: Google Maps, 2014; Microsoft MapPoint 2009

In terms of local accessibility, Williamsburg’s location along Interstate 64 (I64) provides access to the City’s east side from the north and south, for the entire length of the Primary Market. Considering the limitations that the eastern and western shores of the Peninsula cause, in terms of the reach of a 30- minute drive time, I64 helps in increasing the Primary Market’s geographical reach. Virginia State Route 199 (not clearly visible in the map), which splits off of I64 just north of Williamsburg, follows along the City’s western and southern borders, and rejoins I64 just south of the City, provides highway access to the

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City’s west side. Providing direct access into downtown Williamsburg is U.S. Route 60, which runs parallel to I64 - east from Richmond and south into the Peninsula.

When considering Williamsburg’s accessibility from a regional and national level, it is important to consider both road and air travel. As previously noted, Interstate 64 and U.S. Route 60 provide strong highway connectivity with the surrounding region. Both highways run east/southeast out of Richmond and south for the length of the Peninsula. West from Richmond, both provide connectivity to Charleston, WV; Lexington; and Louisville. Interstate 95, which runs north and south out of Richmond, provides northern connectivity to regional markets, Washington, D.C., Baltimore, and Philadelphia, and runs south along the Atlantic coast toward Jacksonville, FL.

The following chart provides a listing of regional markets, with drive times from Williamsburg and market populations.

Miles from Approximate Market City, State Williamsburg, VA Drive Time Population

Newport News, Virginia 24 0:28 180,726 Richmond, Virginia* 52 0:52 1,284,147 Norfolk, Virginia 47 0:56 245,782 Virginia Beach, Virginia 62 1:07 447,021 Washington, D.C.* 153 2:27 5,828,935 Baltimore, Maryland* 193 3:09 2,750,201 Winston-Salem, North Carolina* 254 4:06 486,973 Wilmington, North Carolina* 303 4:23 378,352 Philadelphia, Pennsylvania* 294 4:43 6,022,170 Charlotte, North Carolina* 315 5:03 1,839,539 Source: Google.com, 2014; Claritas, 2013 Note: *Markets w ith asterisks reflect CBSA populations; those w ithout reflect city population

Air Access to the market is important in the ability of a market to attract regional and national tournaments/meets. Organizers for events of this nature are often careful when selecting an event host, making sure that air access to the market allows for convenient travel for event attendees and athletes. The following chart displays the airports located within 60 miles of Williamsburg.

U.S. Driving Number of Boardings by Year Airport Miles to 2011 to 2012 Rank Airport City Williamsburg 2011 2012 Change

Newport News/Williamsburg 146 Newport News, VA 17 516,789 314,139 -39.2% International Airport

67 Norfolk International Norfolk, VA 45 1,606,695 1,649,123 2.6%

69 Richmond International Richmond, VA 45 1,571,155 1,581,617 0.7%

Total Primary Commercial Airports Within 60 Miles of Williamsburg 3,694,639 3,544,879 -4.1% All Primary Commercial U.S. Airports 724,033,387 730,403,551 0.9%

Note: "Rank" reflects consideration of 377 primary commercial airports in the United States. Source: Federal Aviation Administration, 2013; Mapquest.com, 2014.

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As can be seen in the previous chart, there are three international airports within 60 miles of Williamsburg – the Newport News/Williamsburg International Airport (17 miles from Williamsburg), Norfolk International (45 miles), and Richmond International (45 miles). Collectively, the three airports serviced 3.5 million passenger boarding’s in 2012. We note that the closest airport (Newport News/Williamsburg International Airport) has seen a significant recent reduction in boarding’s.

2.2 Hotels

Another important factor, again in the consideration of Williamsburg as a potential sports-tourism destination, is the number of hotel rooms in the market and the market’s ability to accommodate large groups of non-local athletes and event attendees.

The Greater Market – and particularly within the James City County and York County, in particular – is unique in that a large portion of total available overnight rooms (42 percent) are within timeshare properties, and they are highly utilized by typical hotel guests. In 2013, JCC timeshare transient room nights accounted for 26 percent of total room night production (up from 11 percent in 2007). In York County, this number was 11 percent (up from 5 percent in 2007). Additionally, in recent years, the timeshare properties have increasingly made room blocks available to sports and convention tourism groups. Because of the important role that these properties will likely continue to play in supporting tourism throughout the Greater Market, it is necessary to include timeshare rooms in the overall inventory when assessing the local market’s accommodations.

There are 91 total hotel and timeshare properties, offering a combined 15,000 rooms, within the Greater Market area. Of the 91 properties, 50 of them contain 100 or more rooms. The following map presents the general distribution of those properties with 100 rooms or more, relative to the center of Williamsburg.

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7-mile Radius 50 Properties 12,600 Rooms 3-mile Radius

33 Properties 6,200 Rooms

James City County

Williamsburg

York County

Source: Google Earth, 2014; www.visitwilliamsburg.com, 2014

As can be seen in the map, there are 33 properties with over 100 rooms within a 3-mile radius of downtown Williamsburg. Additionally, all 50 of the properties in the Primary Market with 100 rooms or more fall within a 7-mile radius of the center of Williamsburg.

Hotel occupancy for the Greater Market area between 2000 and 2012 was 47.2 percent. Occupancy in 2012 was 43 percent, up from 40.3 and 40.8 in 2011 and 2010, respectively. These numbers don’t include timeshare occupancy, for which data wasn’t available. The Greater Market area experiences a high level of seasonality in its hotel occupancy. Whereas the months of January through May and September through December see an average occupancy of just shy of 35 percent, June, July, and August average approximately 61 percent (numbers reflect 2010-2012).

2.3 Local Attractions

Williamsburg, and the Greater Market as a whole, is known for being a tourist destination offering numerous attractions and recreational opportunities. Sporting event planners will often focus on the

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2. LOCAL MARKET ANALYSIS visitor appeal of a destination when making site evaluations and selections. Highly desirable destinations from a visitor perspective may support higher event attendee levels leading to a more successful and profitable event. For example, the Orlando market has become a major amateur sports destination due in large part to the extensive attractions-based economy of the area.

Today, the Williamsburg area’s existing visitation is driven largely by the historical sites and museums of the “Historic Triangle,” a living-history of colonial Williamsburg, Jamestown, and Yorktown. Additionally, theme parks, performing arts and other amenities offered within the community provide for a unique visitor experience. A listing of some of the notable attractions and community resources in and around Williamsburg are presented in the chart below.

Primary Greater Williamsburg Attractions Alewerks Brewing Company Sherwood Forest Plantation Berkeley Plantation Shirley Plantation Busch Gardens Williamsburg The College of William and Mary Colonial Williamsburg Virginia Living Museum Eco Discovery Park Water Country USA Go-Karts Plus Watermen's Museum Historic Jamestowne Williamsburg Botanical Garden Historic Yorktown Williamsburg Winery Jamestown Settlement Yorktown Battlefield Mariners' Museum Yorktown Sailing Charters - Schooners Alliance & Serenity Ripley's Believe It or Not! Museum & 4-D Theater Yorktown Victory Center Riverwalk Landing Source; visitwilliamsburg.com; williamsburgcc.com

The remainder of this section provides information regarding the demographic profile of the market area.

2.4 Population

The size of the population from which the proposed Facilities will draw participants, both short-term and long-term, will have an impact on their level of utilization. The following table presents the historical, current and projected population of the Primary Market area, as well as the Greater Market Area, the Virginia Beach CBSA and the U.S. as a whole.

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Greater Williamsburg Population Statistics

Primary Greater VA Beach et al U.S. Market Area (1) Market Area (2) CBSA Totals Population 2000 146,604 116,271 1,580,060 281,421,942 2010 174,492 146,541 1,676,822 308,745,538 2014 181,685 152,854 1,722,167 317,199,353 2019 191,117 161,249 1,789,811 328,309,464 CAGR 2000-2014 1.7% 2.1% 0.7% 0.9% CAGR 2014-2019 1.0% 1.1% 0.8% 0.7%

(1) Primary Market Area represents a 30-minute drive time radius surrounding the reference site

(2) Greater Market Area represents the City of Williamsburg, James City County, and York County, collectively Note: CAGR = Compound Annual Growth Rate Source: Claritas, 2014

The Primary Market for the proposed Facilities, defined as the area within a 30-minute drive of the reference site, is home to approximately 182,000 residents. Population growth rates in the Primary Market area are projected to be slightly higher than those for the Virginia Beach CBSA and the U.S. as a whole over the next five years. These data are used later in this study to estimate potential participant levels for individual sports.

2.5 Age

Another demographic characteristic that is important to the overall viability of the proposed Facilities is the age of the local population. Sports participation trends can vary greatly by age and the type of sport. As a result, the age distribution of the local populace will impact the type and amount of utilization at the proposed Facilities.

The following table provides the median age and the population by age group for the Primary Market, as well as the Greater Market area, the Virginia Beach CBSA, and the U.S. as a whole.

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Greater Williamsburg Age Statistics

Primary Greater VA Beach et al U.S. Market Area ( 1) Market Area ( 2 ) CBSA Totals Median Age 36.1 N/A 35.8 37.7 Age Stratification: Under 7 9% 7% (3) 9% 9% 7 to 11 6% 6% (3) 6% 6% 12 to 17 7% 8% (3) 8% 8% 18 to 24 13% 12% (3) 12% 10% 25 to 34 14% 11% (3) 14% 13% 35 to 44 12% 11% (3) 12% 13% 45 to 54 13% 14% (3) 14% 14% 55 to 64 12% 13% (3) 12% 13% 65 to 74 9% 10% (3) 7% 8% 75 & Over 7% 7% (3) 5% 6%

(1) Primary Market Area represents a 30-minute drive time radius surrounding the reference site (2) Greater Market Area represents the City of Williamsburg, James City County, and York County, collectively (3) Represents a weighted-average for the Greater Market Area Source: Claritas, 2014

As depicted in the exhibit, the median age of residents within the primary market area is 36.1 years old, slightly higher than that of the Virginia Beach CBSA, but below that of the U.S. median age of 37.7.

The age stratification of the Primary Market population falls closely in line with that of the U.S. as a whole, as well as that of the Virginia Beach et al CBSA, with nearly equal percentages of the population under the age of 18 and over the age of 45. The Primary market exhibits a slightly higher proportion of residents aged 18 to 34 and a slightly smaller proportion of those 35 and older.

In order to maximize utilization of the proposed Facilities, and to ensure that the facility offers an amenity for the community as a whole, a mix of youth and adult programming should be offered. However, as will be discussed in the Estimated Demand section of this report, community survey results give indication that youth participants will likely provide the largest share of facility users, consistent with recreational sports facilities and programs throughout the country.

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2.6 Household Income

Another socioeconomic variable that will be important to the potential success of the proposed new Facilities in Williamsburg is household income. Income levels can serve as an indication of area households’ ability to support athletics in the region by paying league fees and other costs associated with participation. The affluence of area households can also impact the types of programming that will be most successful, as household income levels can impact the types of sports that are played by a specific populace. The following table summarizes key household income demographic variables for the Primary Market, the Greater Market area, the Virginia Beach CBSA, and the U.S. as a whole.

Greater Williamsburg Household Income Statistics

Primary Greater VA Beach et al U.S. Market Area ( 1) Market Area ( 2 ) CBSA Totals Median Household Income $62,093 N/A $60,617 $51,579 Household Income Distribution: Less than $25,000 16% 12% (3) 18% 24% $25,000 to $50,000 24% 20% (3) 23% 24% $50,000 to $75,000 21% 18% (3) 20% 18% $75,000 to $100,000 15% 16% (3) 14% 12% $100,000+ 24% 34% (3) 24% 21%

The Primary Market area median household income level, while in line with that of the Virginia Beach CBSA, is considerably higher than that of the U.S. as a whole. Specifically, the median household income within the Primary Market is approximately $62,100 - 20 percent higher than the U.S. median of $51,600.

The Primary Market area’s household income distribution statistics also outperform national and regional income statistics. Households with income in excess of $50,000 represent 60 percent of the area households, whereas those households in the U.S. represent just 51 percent. Households with income in excess of $75,000 represent 39 percent of the Primary Market, compared with 33 percent of U.S. households.

Summary

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Within this section, local market characteristics that will impact the operations of the proposed Facilities have been evaluated. The following is a summary of the key conclusions of the analysis of local market characteristics:

 Factors such as transportation access to the market, travel distances from other regional markets, hotel accommodations, and the market’s available attractions and amenities, are all critical in building a competitive tournament/meet, sports-tourism destination.  Williamsburg benefits from a high degree of highway connectivity with the surrounding region. Its location along Interstate 64, which runs the length of the Peninsula and to Richmond, allows for easy access into the City for a large population of potential users. Interstate 95 runs north and south from Richmond and provides northern connectivity to regional markets, Washington, D.C., Baltimore, and Philadelphia.  There are three international airports within 60 miles of Williamsburg that can provide air access to the market – the Newport News/Williamsburg International Airport, Norfolk International, and Richmond International.  Williamsburg and the Greater Market area are known for their tourist draw and provide a great deal of attractions and activities to visitors. The “Historic Triangle,” which drives a great deal of the local tourism, provides a living-history of colonial Williamsburg, Jamestown, and Yorktown.  Timeshare accommodations within the Greater Market area play a large part in supporting transient room nights. Room accommodations within properties with 100 rooms or more, including timeshares properties, total 12,600 within a 7-mile radius of downtown Williamsburg total. 6,200 exist within a 3-mile radius.  Based on CSL industry research and past studies, data show that a large majority of local, regular users of recreational sports facilities within markets similar to that of Williamsburg reside in or drive from a geographical area within 30 minutes of the facility. For purposes of this study, the geographical area and its population of potential users will be known as the Primary Market.  The Primary Market for the proposed Facilities is home to approximately 182,000 residents, representing the primary population base of potential local users. Between the years 2000 and 2014, this population base grew 1.7 percent, compared with 0.9 percent for the U.S. as a whole. Growth rates over the next five years are projected to be 1.0 percent for the Primary market and 0.7 percent for the U.S. as a whole.  The age demographics of the Williamsburg market area are very similar to those of the U.S. as a whole. In terms of local participation, a mix of youth and adult programming should be offered to maximize utilization of the proposed Facilities.

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The characteristics of the proposed Facilities’ market are considered together with an assessment of the physical and operational characteristics of comparable/competitive facilities, industry trends, and

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2. LOCAL MARKET ANALYSIS interviews with representatives of local and regional recreational sports organizations to estimate demand.

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3. COMPARABLE/COMPETITIVE FACILITIES

The purpose of this section is to present an overview of comparable and potentially competitive aquatics and recreational sports facilities. Understanding the general offerings and operations of comparable facilities provides benchmarks from which to assess the potential of the proposed Williamsburg Facilities. Furthermore, this analysis is important in understanding the competitive environment in which the proposed Facilities will operate, particularly at the local and regional level. As there are two different facilities being explored in this study, this section will be split between the comparable/competitive aquatics facilities and the comparable/competitive recreational sports complexes identified.

3.1 Aquatics Facilities

3.1.1 National Comparable Facilities

While the proposed aquatic facility in Williamsburg is intended to support local swimming and aquatic needs, its long-term success is more dependent on its ability to accommodate and attract regional and possibly national competitive swimming events to the Williamsburg area. With this in mind, a sample of national comparable aquatic facilities known for drawing regional and national meets was identified. A chart summarizing the offerings among these facilities is below, followed by individual case studies for each.

Fort Lauderdale Greensboro Santa Clara Aquatic Center Aquatic Center Int'l Swim Center City of Santa Clara/City and Owner/Operator City of Fort Lauderdale City of Greensboro Swim Club Co-operate Year Opened 1965 2011 1966 Facility Characteristics # of 50-meter pools 2 1 1 # of 25-yard pools 1 2 2 1-meter spring board 4 2 3 3-meter spring board 4 2 2 1-meter platform 1 N/A N/A 3-meter platform 1 N/A N/A 5-meter platform 1 1 1 7-meter platform 1 N/A 1 7.5-meter platform N/A 1 N/A 10-meter platform 1 1 1 Permanent seating 1,750 2,500 5,000

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Fort Lauderdale Aquatic Complex Fort Lauderdale, Florida

The Fort Lauderdale Aquatic Complex (FLAC), which opened in 1965, is owned and operated by the Parks and Recreation Department of the City of Fort Lauderdale. The property, located on Fort Lauderdale Beach, is home to the aquatic facility, as well as the International Swimming Hall of Fame.

The aquatic facility offers two, 10-lane, 50-meter Olympic-size pools, a 25-yard training pool with diving well, and a spa. Diving boards and platforms include: four, 1-meter spring boards; four, 3-meter spring boards; and five platforms (1-, 3-, 5-, 7-, and 10-meter). Fixed spectator seating at the facility can accommodate 1,750 attendees.

The Facility is home to the Fort Lauderdale Dive Team and Swim Fort Lauderdale, a USA Swimming and U.S. Masters Swimming team. It also acts as a training site for many national and international teams. Additionally, numerous City of Fort Lauderdale public programs are offered, including swimming lessons, water aerobics, scuba training, public swim, and pool rentals.

The Complex is open 365 days a year, and hosts an average of 50 events (over 100 event days). Past events (some of which are held at FLAC annually) include: the Annual College Swim Forum; U.S. National Swimming Championships; YMCA National Swimming & Diving Championships; U.S. Masters National Swimming Championships; NCAA National Water Polo Championships; the FINA/U.S. International Diving Invitational and national and international synchronized swimming competitions.

FACILITY RENTAL RATES SWIMMING SWIMMING TIMED FINAL or 4 HOURS TRIAL-FINAL or ALL DAY COMPUTER / MEET MANAGER 1 x 25 yard course $500 $1,500 $450 2 x 25-yard courses $875 $1,875 $700 1 x 50 meter course $875 $1,875 $450 2 x 50 meter courses $1,875 $3,750 $700 Entire Facility N/A $5,000 per day $700

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Greensboro Aquatic Center Greensboro, North Carolina

The Greensboro Aquatic Center is a 78,300-square-foot aquatic facility built in 2011 as part of a major expansion to the campus of the Greensboro Coliseum Complex. The Coliseum Complex, owned and operated by the city of Greensboro, is a multi-facility complex that is designed to host a variety of events including, but not limited to, athletics, cultural arts, concerts, theater, conventions, convocations, and trade and consumer shows.

The Aquatic Center offers one 8-lane, 50-meter stretch competition pool, and one, 25-yard teaching pool with 17-foot-deep diving welll. Diving boards and platforms include two, 1-meter spring boards; two, 3- meter spring boards, and 5-meter, 7.5-meter, and 10-meter platforms. Four classrooms and a fitness room are also available to the aquatics programs. Permanent spectator seating at the facility can accommodate 1,848 guests, while removable bleacher seating offers an additional 652 seats.

The Facility is home to three year-round swimming clubs (Star Aquatics, Greensboro Swim Association, and the Greensboro YMCA swim club); four area high schools, which practice from October through mid- February; and one year-round diving club. Rental rates for these tenants vary, based primarily on expected annual usage and the way each contract was written. Star Aquatics and Greensboro Swim Association, both of which utilize the pool between 35 and 40 hours per week (seven to eight lanes, on average, per hour), pay between $6 and $8 per lane, per hour. In addition to facility-tenant use, there are a number of public programs offered, including learn to swim classes (both children and adult), beginning synchronized swimming, beginning diving, beginning swim team, beginning splash ball, and water aerobics. Most programs cost $70 per 8-lesson session. There are generally 10 to 12 sessions of each program offered annually.

During a typical year, the Facility hosts 45-50 swimming and/or diving events, including 30 club meets, six to seven high school dual meets, three high school invitationals, two high school conference championships, two to three club diving meets, and four to five national championships (collegiate and club). Athlete numbers range from 50 to 1,200 per event, and average approximately 520. Total attendees range from 225 to 1,700, with an average of 840. Meet organizers are charged $175 per hour for the single 50-meter pool and $250 per hour to rent both the 50-meter and 25-yard pool.

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George F. Haines International Swim Center (Santa Clara Swim Center) Santa Clara, California

The George F. Haines International Swim Center, built in 1966, is located within Santa Clara’s Central Park, approximately five miles south of the San Francisco bay’s southern shore. The facility is owned by the City of Santa Clara and co-operated by the City and the three tenants of the facility. The tenants pay fixed rent, pursue all outside meet/competition activity, and operate the facility during their respective events. The City doesn’t take any part in operating the venue during said events.

The Swim Center consists of three pools, including the 9-lane, 50-meter main competition pool; a 25-yard lesson pool; and a 25-yard, 17.5-foot-deep diving well. Diving boards and platforms include three, 1- meter spring boards; two, 3-meter spring boards; and 5-, 7- and 10-meter platforms. Permanent seating at the facility can accommodate 5,000 attendees.

Tenants of the facility include the Santa Clara Swim Club (SCSC), the Santa Clara Diving Club (SCDC), and the Santa Clara Aquamaids synchronized swimming team. As mentioned, all programs pay fixed rent and pursue/host all meets and competitions. All three tenants keep any income generated by the events they host. The City offers year-round senior lap swim and adult lap swim opportunities, each for an hour a day (Monday through Friday). During the summer months only, recreational open swim is available for all ages. No other City programs are offered.

On an annual basis, SCSC hosts eight to ten swim meets, SCDC hosts 15-20 events; the Aquamaids hold three competitions, the Central Coast Section (high school) holds its sectional swim meet and water polo tournament (both hosted by SCSC), and Threshold Racing organizes an annual triathlon that utilizes the pool. Notably, the SCSC/Facility hosts one of the USA International Grand Prix series swim meets on an annual basis. This four-day, televised meet attracts some of the top swimmers in the country. A total of 600 swimmers and 1,500 spectators per day are expected at the event.

Pool rentals at the Facility are $225 per hour; however, this happens infrequently. Threshold Racing is the only rental most years.

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3. COMPARABLE/COMPETITIVE FACILITIES

3.1.2 Local & Regional Competitive Facilities

In addition to national comparable venues, the local and regional pools and aquatic facilities surrounding the greater Williamsburg area were inventoried and evaluated. Understanding the offerings and operations of these facilities is important in assessing the competitive landscape in which the proposed Williamsburg aquatic facility would operate. Though many indoor pools exist throughout the region, the following list represents those facilities that were identified as being potentially competitive with the proposed facility.

Pool Programming Drive- Daily # of Primary Competitive time from 50M 25Y # of Additional Spectator Rental Annual Competition Aquatic Facilities Williamsburg Pool Pool Lanes Pool(s) Seating Rates Meets Midtown Aquatic Center 0:30 X 8 No 500 $2,750 30 Ft. Eustis Aquatic Center 0:30 X N/A No 200 $1,700 10 Hampton University Aquatic Facility 0:35 X N/A Virginia Commonwealth University 0:50 X N/A Old Dominion 0:55 X N/A No 350 $1,500 30 Collegiate School Aquatic Center 0:55 X 8 Yes 700 $5,000 35 UVA Aquatic Center 1:55 X 8 Yes 700 $5,000 8 George Mason Aquatic Center 2:15 X 8 Yes 450 $6,000 15 Christiansburg Aquatic Center 3:55 X 8 Yes 1,000 $3,750 25 Average 8 557 $3,671 24 Median 8 500 $3,750 28

 Midtown Aquatic Center – The Midtown Aquatic Center is located in Newport News, Virginia, approximately 30 minutes south of Williamsburg on the Peninsula. The facility represents the only indoor 50-meter competitive pool throughout the Peninsula and Hampton Roads region. Special features of the facility include a moveable bulkhead providing pool-sectioning capabilities; a 14-foot diving well; two, 1-meter and one, 3-meter diving boards; a retractable roof for natural lighting and ventilation; and fixed seating for 500.

The facility hosts around 35 meets annually, including 18 to 20 USA swimming club meets and 15 to 18 high school meets. The club meets are a variety of short and long course meets, averaging 600 to 800 athletes and 1,200 to 1,500 spectators for short course, and 200 to 300 athletes and 400 to 600 spectators for long course. The high school meets are made up mostly of dual and tri meets of 100 to 160 swimmers, but also include two regional meets with 200 to 300 athletes. During the high school season (Nov to Feb) six high schools practice out of the facility daily, as well. Many of the Bay Rivers District (the conference to which a number of the greater Williamsburg-area high schools’ belong) meets are held at the Midtown Aquatic Center.

Daily rental rates for the facility are approximately $2,750.

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 Fort Eustis Aquatic Center – the Fort Eustis Aquatic Center is located on the Fort Eustis Army base near Newport News, Virginia. It offers a 10-lane, 25-yard competitive pool and seating for 200 attendees.

The facility hosts between 10 and 15 meets annually, including four, 2-day USA club swimming meets with 400 to 600 swimmers and 600 to 800 total spectators; two, 3-day holiday club meets, drawing 750 to 1,000 athletes and 1,500 to 2,000 spectators; and five high school dual/tri meets. Occasional Bay Rivers District events are held at the Fort Eustis Aquatic Center.

Daily rental rates for the facility average around $1,700 for the mentioned meets.

 Old Dominion University Aquatic Center – Old Dominion University is located in Norfolk, Virginia, approximately one hour from Williamsburg. The University’s Aquatic Center offers a 25-yard competitive pool and related rentals and programming. Seating at the facility can accommodate up to 350 attendees.

In a typical year, the facility holds four Old Dominion University swimming and diving competitions (non-rental events). In terms of outside rentals, the facility hosts four YMCA meets; 12, 2-day USA club meets with 200 to 300 athletes (generally three to six teams) and 300 to 400 spectators; 8, 1-day dual/tri high school meets with 200 to 300 athletes and 400 to 600 spectators; and one, 2- day high school regional meet that draws 2,000 swimmers and 200 to 400 spectators. Additional Facility programming includes swimming lessons and a variety of Red Cross certification courses.

Rental rates at the facility are $120 per hour ($90 per hour pool rental and $30 per hour required lifeguard wages). Based on what is typically a 12- to 14-hour utilization period, daily rental rates approximate $1,500.

 Collegiate School Aquatic Center – The Collegiate School Aquatic Center opened in 2012 in Richmond, Virginia (Chesterfield County) and is home to the Poseidon Swimming Club and two local high schools (the Collegiate School, which was granted naming rights, and Trinity Episcopal). The competition pool, an 8-lane, 50-meter pool with moveable bulkheads, was used in the 2008 Olympic Trials in Omaha, Nebraska. Following the Trials, the Poseidon Club purchased it for the planned facility. Also within the Center is a 6-lane, 25-yard instructional pool, used primarily for non-competitive aquatic programming. Permanent bleacher seating overlooking the main pool can accommodate up to 700 spectators.

On an annual basis, the facility hosts around 35 meets. Eight to ten of them are USA swimming related events that tend to be more local, drawing 500 to 600 swimmers primarily from the Richmond and Peninsula/Hampton Roads region. Additional USA swimming events include 2 to 3 Virginia Region championships/invitationals, which draw teams from throughout the state of

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Virginia and occasionally surrounding states, and one USA Eastern Zone championship, a 1,200- athlete event covering the East Coast “zone” of USA swimming (from Virginia to Maine). Most USA events are three days in length. In terms of high school swimming, each of the high school teams will hold between six to eight events annually, all of which are single-day meets. The Facility also hosts the High School State 5A and 6A Meet, a 2-day, 500-athlete event. Summer leagues throughout the Richmond area host four championship meets at the Center in July, each of which has 1,000 athletes. Local colleges/universities will occasionally utilize the facility for invitational meets, as well.

Additional programming at the Center includes swimming lessons, group swim classes, water aerobics, CPR classes, lifeguard training, masters swimming, warm water therapy lessons, land fitness classes, youth triathlon training, and water polo.

Daily rental rates approximate $5,000.

 University of Virginia Aquatic Center – The University of Virginia is located in Charlottesville, approximately two hours northwest of Williamsburg. The University’s aquatic and fitness center was built in 1996 and expanded in 2004. The Aquatic Center consists of an 8-lane, 50-meter competitive pool with two moveable bulkheads; a warm-water leisure and instructional pool; two, 1-meter spring boards; two, 3-meter spring boards; and a 5-meter platform. Spectator seating at the facility can accommodate 700 guests. The Center is home to both the UVA men’s and women’s swimming and diving programs.

The Aquatic Center hosts around eight events annually, most of which are University-affiliated. Of the University swimming and diving programs’ five annual events, two to three are dual meets, drawing approximately 100 swimmers; one quad meet annually brings in around 200 athletes; and the six-team, two-day invitational draws 350-400 swimmers. Additional events include the University club swimming program’s annual meet with 10 to 12 other university clubs teams, a local summer league two-day meet with 2,000 swimmers, and one University club water polo competition.

A youth diving program, youth and adult swimming lessons, and water aerobics/fitness programs are offered through the facility, as well.

 George Mason Aquatic Center – The George Mason Aquatic Center is located on the George Mason University Campus in Fairfax, Virginia, approximately two hours north of Williamsburg. The facility is home to the George Mason men’s and women’s swimming teams. It offers an 8- lane, 50-meter competition pool with moveable bulkhead, as well as a 6-lane, 25-yard warm- up/recreational pool. Additionally, there are two, 1-meter and two, 3-meter diving boards and fixed seating for 450.

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The facility hosts approximately 15 meets annually, including five university team meets, nine USA swimming club meets and one high school meet. The high school meet held in any given years is generally either the state championship or regional championship meet.

Additional offerings include learn to swim programs, CPR training, lifeguard certification, and water aerobics. Daily rates for meet rentals generally range between $6,000 and $9,000 (all in). The recreational pool rents for $200 per hour.

 Christiansburg Aquatic Center – The Christiansburg Aquatic Center (CAC) is located in Christiansburg, Virginia, four hours west of Williamsburg. The 64,000-square-foot facility, which opened in 2010, was the result of a public-private partnership between the town of Christiansburg and Virginia Tech University, who uses the facility as its home pool. VT, per the agreement with the Christiansburg, agreed to pay $2 million to cover incremental costs associated with changes they requested to the initial plans for the Facility, including upgrading to a 50-meter competition pool. Additionally, VT would pay $94,000 annually to cover increased operational budget expenses. Total VT costs were to be paid in 20 annual installments of $250,000 ($5 million total). The Town of Christiansburg financed the $19 million facility through two bond issuances – one for $11.185 million and another for VT’s $2 million portion. The remaining $5.815 million was paid with Town funds.

The facility offers an 8-lane, 50-meter Olympic-size competition pool, with moveable bulkheads, as well as a heated therapy pool. Two, 1-meter spring boards; two, 3-meter spring boards; and a diving tower with 5-, 7.5-, and 10-meter platforms are available within the competition pool, as well. Balcony seating overlooking the competition pool can accommodate 1,000 spectators.

In addition to Virginia Tech’s swimming program, the facility is home to a USA club swimming and USA club diving program. Virginia Tech holds between four and six meets at the Center annually, including three to four dual meets of 100 to 200 athletes and 300 spectators, and one to two invitationals of 100 to 125 athletes and 250 spectators. Club meets at the facility include two invitationals with 800 swimmers, and three state/regional championships drawing between 600 and 1,200 swimmers and 1,000 spectators. Other events include high school state swimming and diving championships (600 to 800 swimmers), as well as some high school district and regional meets.

Additional facility programming includes swim education classes, offered to children as young as 6 months through adult, fitness classes, Red Cross training and lifeguard certification courses.

Locally, throughout Williamsburg and the Greater Market area, there are a number of indoor pools. None of them, however, can accommodate a competitive event larger than a dual meet. As noted, all competitive events hosted by local swimming organizations are held at regional venues.

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Though the proposed facility would likely offer some level of aquatic programming to the public (open swim, swimming lessons, aquatic fitness, etcetera), which would increase the set of potentially competitive venues in the area, the following facilities were determined to be most relevant in representing the local swimming that the proposed facility would be supporting.

Pool Programming Daily # of Primary Competitive 50M 25Y # of Additional Spectator Rental Annual Practice Aquatic Facilities Location Pool Pool Lanes Pool(s) Seating Rates Meets

James City County Rec Center Williasmburg, VA X N/A No N/A See Note 1 R.F. Wilkinson Family YMCA Williasmburg, VA X N/A No N/A See Note 1 Eastern State "Bubble" Williasmburg, VA X N/A No N/A See Note 1 College of William and Mary Aq Ctr Williasmburg, VA X N/A No N/A See Note 2

(1) Cannot accommodate competitive events (2) Hosts approximately 3-5 meets annually (all dual meets). Too small for anything larger.

Comparable/Competitive Aquatic Facilities Summary

The following is a summary of the key findings of the analysis of comparable/competitive facilities.

 Three national comparable facilities were evaluated. These facilities represent a sample of the large, national venues that a proposed Williamsburg center would be competing with for large regional and national meets. The three facilities each have at least one 50-meter competitive pool with moveable bulkheads, as well as at least one 25-yard warm-up/cool-down pool. Average spectator seating at the facilities is 3,100, ranging from 1,750 to 5,000. A variety of programming needs are accommodated by the facilities, including, but not limited to, high school swimming, USA club swimming, collegiate swimming, synchronized swimming, water polo, public open swim and other programs, and swimming lessons. Each facility hosts, on average, 35 to 50 events annually, including everything from small local meets to the large regional and national meets.

 Regionally, eight venues were identified as comparable/competitive with the proposed facility. Seven are located within a two-hour drive of Williamsburg. Of the eight facilities, four contain 50- meter pools averaging eight, 50-meter lanes, while the remaining four facilities have 25-yard pools. Spectator seating shows capacities ranging from 200 to 1,000, and averaging 575. On an annual basis, the facilities host 23 meets, on average, made up of a variety of levels of swimming. Daily rental rates for the group, based on available data, ranged from $1,500 to $5,000, with an average of approximately $3,300.

 Prince William County is currently developing a new aquatic facility, anticipated to open in September of 2016, as a component of a new high school. The $10 million project, in conjunction with the $90 million high school, will feature a 50-meter competition pool with a moveable bulkhead, 25-yard recreational/warm-up pool, and 465 spectator fixed seating. It is understood

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that the driving force behind the pursuit of a new facility in the county, was the level of local high school demand relative to the number of existing facilities. Currently, prior to completion of the new high school and pool, there are eleven high schools and only two competitive aquatic centers. The new facility will focus mainly on supporting the needs of the local high schools. As a result, we don’t feel that this facility will have a significant, direct effect on the primary competitive environment within which a Williamsburg facility is intended to operate.

 On a local level, there are no facilities that can accommodate a competitive swimming event of the level anticipated for the proposed Williamsburg facility. Four facilities within Williamsburg currently support the practice needs of the local swimming organizations. All contain 25-yard pools and very little, if any, spectator seating.

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3.2 Recreational Sports Facilities

3.2.1 National Comparable Facilities

Like the proposed aquatic facility, a recreational sports facility in Williamsburg would support a variety of local needs, but would also serve to attract and accommodate regional and possibly national competitive indoor recreational sporting events. In order to help in understanding the physical requirements and the operational characteristics that are necessary to host events at this level, a sample of six national comparable recreational sports complexes was identified and evaluated. A chart summarizing various characteristics of the facilities is presented below, followed by individual case studies for each.

Total Total Full‐Size Full‐Size Year Cost Square Basketball Volleyball Facility Location Opened ($MM) Feet Courts Courts New Century Fieldhouse Gardner, KS 2011 $6.0 88,000 4 8 Fieldhouse USA Frisco, TX 2009 $17.5 145,000 12 12 Plano Sports Authority 2 Plano, TX 2008 n/a 95,000 8 8 Greensboro Sportsplex Greensboro, NC 2002 $6.0 106,000 8 8 Okun Fieldhouse Shawnee, KS 1999 n/a 56,500 4 8 Spiece Fieldhouse Ft. Wayne, IN 1999 n/a 150,000 8 8 Average 2005 $9.8 106,750 7 9 Median 2005 $6.0 100,500 8 8

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New Century Fieldhouse Gardner, Kansas

The New Century Fieldhouse, located in Johnson County, Kansas (near Garnder) opened in 2011 at a cost of $6.0 million. The 88,000-square-foot complex is owned by Johnson County and operated by the Johnson County Parks & Recreation Department. The Fieldhouse was the first public recreation facility in the Kansas City metropolitan area to receive LEED certification.

Included within the facility are four full-length basketball courts, eight volleyball courts, a 100’ x 190’ artificial turf field, four futsal courts, a 78’ x 29’ multi-purpose room, four upper-level party suites with court and field views, and an upper level lounge area with court and field views.

In addition to providing a variety of youth and adult sports leagues, the Fieldhouse offers a wide assortment of programs and activities for all ages, from fitness and health to arts and crafts. Additionally, tournaments are hosted at the facility. In terms of basketball and volleyball tournaments, the facility hosts 10 and 12, respectively. Typical basketball and volleyball tournaments will draw 35 teams and 700 spectators per event. Hourly rental rates are approximately $60 per court ($30 per hour for volleyball, which takes up half a basketball court).

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Fieldhouse USA Frisco, Texas

Fieldhouse USA is a 145,000-square-foot indoor multi-purpose sports and recreation facility that opened in 2009 in Frisco, Texas. The facility is part of the 62-acre Sports Village USA, a mixed-use development that includes entertainment, shopping, and residential space. The facility is owned by the City of Frisco and operated by Sports Village Holdings, LLC.

Facility development costs totalled $17.5 million. $12.5 million of the total was funded by the City, and went toward construction costs. The remaining $5.0 million came in the form of 14 acres of land and investments and was donated by Sports Village Holdings, LLC.

The facility includes 12 full-size hardwood basketball/volleyball courts, an indoor turf field designed for soccer, football, and lacrosse, a fitness center, the 10,000-square-foot Athletes’ Performance training center, 13,200 square feet of retail space, a food and beverage court, and several breakout meeting rooms.

In a typical year, the facility hosts 30-40 tournaments and draws over 200,000 attendees. Basketball tournaments, which make up the majority of the events held at the Fieldhouse, draw around 100 teams and 1,000 athletes, on average. Hourly rental rates are $60 per court.

In 2011, Sports Village Holdings, LLC renegotiated its lease agreement with the City of Frisco in order to settle issues of past due rent. In 2012, Sports Village Holdings, LLC will pay the city $110,000 per quarter ($440,000 per year), increasing to $260,150 ($1.04 million per year) per quarter by 2016 and beyond. Lease payments to the City are expected to total $25.8 million by 2033.

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Plano Sports Authority Plano, Texas

The Plano Sports Authority (PSA) was formed in 1970 as an independent non-profit organization to provide management of youth sports in Plano, Texas, a suburb of Dallas. In 2002, PSA opened the $10.8 million, 143,000-square-foot Plano StarCenter, which includes 14 full-size hardwood basketball/volleyball courts, a multi-purpose turf arena, and an ice rink that draws more than 2.5 million people annually. In order to accommodate the area’s growing population, the PSA opened a second facility in 2008 (PSA 2), a 95,000 square foot complex that includes eight hardwood basketball/volleyball courts, a multi-purpose turf arena, and a full-service café.

Overall, PSA serves over 60,000 youths living within the Plano Independent School District and surrounding areas on an annual basis. Programming at the PSA 2 includes year-round recreational leagues for sports such as basketball, volleyball, football, soccer, track and field, cheerleading, and other such activities. Approximately 20 basketball tournaments are held annually, as well, and draw 80 to 100 teams and 1,200 spectators, on average. Hourly rental rates are $50 per court.

In a recent year, the PSA generated total operating revenues of approximately $7.53 million and incurred approximately $7.35 million in total operating expenses (including $1.7 million in salaries and benefits), resulting in a total operating profit of approximately $180,000. Annual operating profits generated by the PSA are considered for investment projects the following year. It should be noted that the financial operating data presented herein is inclusive of all PSA programming and fundraising at all event sites.

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Greensboro Sportsplex Greensboro, North Carolina

Located in Greensboro, North Carolina, the 106,000-square-foot Greensboro Sportsplex is a multi- purpose sports facility owned and operated by the City of Greensboro Parks and Recreation Department.

The facility includes eight full-size basketball/volleyball courts, four state-of-the-art indoor soccer fields, an inline roller hockey rink, a weight room, a fitness center, concession area, two locker rooms and a conference room.

Annually, the facility attracts approximately 135,000 visitors. Many of these visitors are non-local, particularly for tournaments, which often draw teams from throughout the state and beyond. In a typical year, the facility will host 45 basketball tournaments and 12 to 15 volleyball tournaments. Average number of teams and spectators at each is 75 and 1,500 (for basketball) and 35 and 2,500 (for volleyball). An economic impact study prepared by the Greensboro Convention and Visitors Bureau in 2009 estimated that economic impact of the facility approximated $24 million annually.

On an annual basis, the facility generates operating revenues of approximately $750,000 to $800,000, while incurring operating expenses of $900,000 to $950,000, resulting in annual operating losses of $100,000 to $200,000 per year. Annual operating losses incurred by the facility are subsidized by City tax revenues.

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Okun Fieldhouse Shawnee, Kansas

The Okun Fieldhouse opened in 1999 in Shawnee, Kansas, approximately 10 miles southwest of Kansas City. The facility is owned by Johnson County and operated by the Johnson County Parks & Recreation Department.

The 56,500-square-foot facility includes eight volleyball courts, four basketball courts, and is part of the Mid-America West Sports Complex, which covers 100 acres and includes 12 baseball/softball fields.

The Fieldhouse offers a number of different in-house programs for the local community, including girls volleyball leagues (five sessions per year, drawing a combined 3,000 participants); girls and boys basketball leagues (four seasons, drawing a combined 2,500 participants); and youth basketball and volleyball camps.

In addition to its in-house programs, the Fieldhouse offers court/facility rentals. Annually, the facility hosts one Futsal league, which rents all courts on Saturday nights and Sundays between November and February; approximately 10 weekend volleyball tournaments drawing 40 teams and 600 spectators per event; 12 weekend basketball tournaments with 30 teams and 600 spectators; and 2 week-long AAU “Showcase” tournaments. Rental rates at the facility vary by event and time of year. Generally, a single court rents for $45 to $60 per hour, while facility rentals (all 4 courts) are $1,200 to $2,200 per day. Approximately 140,000 people use the facility on an annual basis, including approximately 50,000 tournament participants.

The facility generates approximately $900,000 in operating revenues and incurs approximately $1.0 million in operating expenses, resulting in an annual operating loss of approximately $100,000 which is subsidized by the County.

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Spiece Fieldhouse Fort Wayne, Indiana

Spiece Fieldhouse, a 150,000-square-foot, multi-purpose sports and retail facility, opened in 1999 in Fort Wayne, Indiana. Privately owned and operated, the facility is home to Spiece Fitness (under the same ownership), numerous retail tenants and the following tenant sports organizations: Gym Rats, Inc.; Zentai Martial Arts; and Fair Play Volleyball. The facility is located on a three-acre site that also includes a 560- bed dormitory used to accommodate camps and tournaments.

The Fieldhouse includes eight full-size hardwood basketball/volleyball courts, a 70,000 square foot fitness center, which includes cardio and strength training machines, indoor running track, two saunas, two full- service locker rooms, a 25-yard pool, warm water pool, two group exercise studios, child care facilities, youth gym, and family locker rooms.

Gym Rats, Inc., a for-profit youth basketball association founded in 1992, hosts approximately 30 basketball tournaments on an annual basis, including the Indiana Basketball Association State Championship and the USSSA National Championship. The facility has developed a strong reputation throughout the Upper Midwest and Great Lakes regions, often drawing elite travel teams from areas such as Indianapolis, Chicago and Detroit. In addition to basketball tournaments, the facility also conducts boys and girls shooting and skills camps and volleyball leagues organized by Fair Play Volleyball.

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3.2.2 Local & Regional Competitive Facilities

The local and regional recreational sports venues surrounding the greater Williamsburg area were inventoried and evaluated as part of research effots. As with the aquatic facilities, it is important to understand the offerings and operations of those facilities that represent the competitive environment within and surrounding Williamsburg. Because of the diversity of possible offerings that is inherent in a multi-purpose recreational sports venue, the market of competitive venues is large. Though important to inventory and consider each, many of the facilities looked at served purposes that were determined to be different than that of the proposed Williamsburg facility. The following table provides details on those facilities that were identified as being potentially competitive with the proposed facility. Case studies follow.

Total Total Full‐Size Full‐Size Year Cost Square Basketball Volleyball Facility Location Opened ($MM) Feet Courts Courts Boo Williams Sportsplex Hampton, VA 2008 $13.5 135,000 8 12 Richmond Volleyball Club Henrico, VA 2010 N/A 73,000 0 12 U-Turn Sports Performance Academy Richmond, VA 1998 N/A 150,000 4 5 Virginia Beach Fieldhouse Virginia Beach, VA 2010 $15.0 175,000 4 8 Virginia Sports Complex Richmond, VA 2006 N/A 40,000 2 4 Average 2006 $14.3 114,600 4 8 Median 2008 $14.3 135,000 4 8

 Boo Williams Sportsplex – The 135,000-square-foot Boo Williams Sportsplex opened in 2008 in Hampton, Virginia (approximately 30 miles northwest of Virginia Beach). The $13.5 million facility was funded via a public-private partnership between the City of Hampton and the Boo Williams Summer League AAU program, a private non-profit organization that is one of the most successful AAU basketball programs in the country.

The facility includes eight tournament play basketball courts, 12 competition volleyball courts, eight competition indoor hockey fields, a 200-meter, six-lane indoor track, retractable bleacher seating for up to 4,000, two meeting/banquet rooms, two training rooms, and a large concession area.

The facility hosts a variety of competitive and recreational sports activities. On an annual basis, the facility hosts approximately 40 AAU boys’ and girls’ basketball tournaments, the majority of which last for three days. Some of the state and national AAU championships draw a significant number of non-local teams.

In addition to basketball, the facility hosts approximately 40 high school indoor track meets, and serves as the home of the Virginia Rush Soccer Club which operates local youth and adult leagues

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and tournaments. The facility also hosts various volleyball, gymnastics, wrestling and weightlifting competitions throughout the year.

 Richmond Volleyball Club – The Richmond Volleyball Club is a private, not-for-profit organization founded in 1981. Currently, there are approximately 2,500 active members and up to 240 teams participating in evening Club recreational leagues. In addition to league play, the organization also supports 40 USA Volleyball (USAV) and recreational juniors teams annually.

In 2010, the organization purchased a 73,000-square-foot home venue, the Richmond Volleyball Club facility. It consists of 12 indoor volleyball courts, concession stand, locker rooms/showers, and pro shop.

As mentioned, the Club organizes a multitude of in-house leagues throughout the year, both youth and adult. Additionally, related to the USAV and junior teams, the Club will host approximately 20 tournaments between January and May in a typical year. These tournaments will draw upwards of 720 participants, primarily from within the state of Virginia.

Court rental rates at the facility are $35 per hour.

 U-turn Sports Performance Academy – The U-turn Sports Performance Academy, built in 1998, is a 150,000-square-foot facility located in Richmond, Virginia. It is owned and operated by U- Turn Sports Performance Academy, a faith based non-profit athletic training organization founded in 1992.

The facility includes four basketball courts, five volleyball courts, two tennis courts, and indoor turf field, a 9,000-square-foot weight room, an 8,000-square-foot atrium, a 5,000-square-foot Café, and two meeting rooms.

The organization provides youth sports training in a variety of athletics, including basketball, football, soccer, strength and conditioning, tennis, and volleyball. 12 AAU basketball teams and six USAV volleyball teams are run out of the facility, as well. In addition to training and team programming, 35 to 40 tournaments for youth basketball, volleyball, futsal (indoor soccer) and gymnastics are held annually. These events draw both statewide and throughout the region (DC, Carolinas, etc.). The facility is rented hourly at a rate of $30 per court per hour. Labor is billed separately (Security = $17/hr, Janitors = $15/hr, Customer Service = $20/hr).

In a recent year, the facility generated approximately $1.15 million in revenue, which included $500,000 in contributions and public support. Program fees and income from facility operations totaled approximately $630,000. Expenses for the year totaled $1.43 million, resulting in a net operating loss of $800,000.

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 Virginia Beach Field House – The Virginia Beach Field House, located approximately one hour from Williamsburg, is a 175,000-square-foot multi-purpose sports facility that opened in 2010. The public/private partnership was built on 13-acres of city land, adjacent to the existing Virginia Beach Sportsplex, at a total price of approximately $15.0 million.

Included in the facility are four full-size basketball courts, eight volleyball courts, four large indoor turf fields, two small indoor turf fields, party rooms, and the Field House Grille. It is one of the largest recreational sport facilities in the world.

The Field House offers youth and/or adult leagues for a variety of sports, including soccer, flag football, volleyball, basketball, lacrosse, field hockey, indoor baseball, indoor softball, and “social sports” like dodgeball, kickball, and ultimate frisbee. Additionally, the facility regularly hosts tournaments that draw regional and statewide participants. Rental rates at the facility vary by day of the week, ranging from $65 to $90 per hour for a basketball, and $35 to $45 per hour for volleyball.

 Virginia Sports Complex – The Virginia Sports Complex, built in 2006, is an indoor/outdoor sports complex located in Richmond. It consists of eight outdoor baseball diamonds and the subject 40,000-square-foot multi-purpose indoor sports facility. The indoor portion of the Complex includes two full-size basketball courts, four volleyball courts, 13,000 square feet of turf, and seven indoor batting cages.

Though the Complex is most known and utilized for outdoor baseball, the indoor facility draws consistent basketball tournament activity. Annually, the facility hosts approximately 30 AAU and USBA tournaments, each of which draws 25 teams and 750 spectators, on average, primarily from within the state. Though capable of hosting volleyball, it’s very infrequent that they do so. No league activity takes place; it is strictly a rental facility. Hourly rental rates are approximately $90 per court.

The inventory of indoor court facilities throughout Williamsburg and the Greater Market area is made up primarily of local-area elementary, middle, and high schools gyms, the majority of which are limited in size and court offerings and are most-often used to support practice needs. Additional venues include the James City County Recreation Center and a City of Williamsburg-owned community recreation center (Quarterpath), both of which are multi-purpose in nature and offer a considerable amount of public programming. Though Quarterpath will host small-scale basketball and volleyball tournaments, on occasion, there is a general inability to accommodate tournaments in the Community within a single venue.

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The following chart provides a list of what was determined to be the most relevant local facilities (largely public school venues), along with the offering of indoor basketball and volleyball courts for each. The proposed facility would likely offer some mix of public programming and court/facility rentals, which few of the identified venues do; however, it is important to note the existing inventory of court space.

Basketball Volleyball Facility Courts Courts James City County Warhill High School 2 2 James Town High School 2 3 JCC Rec Center 2 4 Hornsby Middle School 1 2 Lafayette High School 1 2 Toano Middle School 1 2 Blayton Elementary 1 1 Matoaka Elementary 1 1 Clair Byrd Baker Elementary 1 N/A Williamsburg Walsingham Academy 3 5 Quaterpath 2 4 James Blair Elementary 1 2 Berkeley Middle School 1 2 Mathew Whaley Elementary 1 N/A James River Elementary 1 2 Williamsburg Christian Academy 1 2 York County Bruton High School 1 2 Magruder Elementary 1 2 Queens Lake Elementary 1 1

Totals 25 39

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Comparable/Competitive Recreational Sports Facilities Summary

The following is a summary of the key findings of the analysis of comparable/competitive facilities:

 Six national comparable recreational sports facilities were evaluated. These facilities represent a sample of the type of venue the proposed Williamsburg center would likely be competing with for large regional and national tournaments. The six facilities contain an average of nearly 110,000 square feet of space, ranging from low of 56,500 square feet to a high of 150,000. All facilities have both full-size basketball and full-size volleyball court setups available to their users. On average across the sample set, seven basketball courts and nine volleyball courts are available. Additional amenities include, but are not limited to, turf fields, futsal courts, indoor tracks, meeting/multi-purpose rooms, fitness center/weight rooms, athletic training centers, locker rooms, and concession areas/restaurants. A variety of sports and programs are supported by the facilities including youth and adult leagues, sport camps and training sessions, fitness and health classes, and court/facility rentals. On average, the facilities host a combined 35 basketball and volleyball tournaments annually. Hourly rental rates per court are $42 for volleyball and $57 for basketball.

 Regionally, there are a large number of multi-purpose and recreational sports facilities whose offerings would likely compete, to some degree, with offerings at the proposed Williamsburg facility. After close evaluation, five facilities, all within a one-hour drive of Williamsburg, were determined to best represent the competitive environment the proposed rec center would operate in. Total square feet contained within the sample set ranges from 40,000 to 175,000 and averages just under 115,000. In addition to an average of four full-size basketball and eight full- size volleyball court setups, the regional facilities, collectively, offer ancillary amenities very similar to those offered by the national comparable facilities. Programming closely matches the national comparable set, as well.

 Locally, the inventory of indoor court facilities is largely made up of area elementary, middle, and high schools gyms, the majority of which are limited in size and court offerings and are most-often used to support practices and in-season games. Additional venues include the James City County Recreation Center and Quarterpath. There is very limited ability, with the existing inventory, to efficiently host a sizable tournament.

********

The physical and operational characteristics of comparable/competitive facilities are considered together with an assessment of the characteristics of the proposed Facilitiy’s market, industry trends, and interviews with representatives of local and regional recreational sports organizations to estimate demand.

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4. ESTIMATED DEMAND

The purpose of this section is to estimate the utilization levels that could be achieved by the proposed Facilities. A variety of information sources have been used to gauge potential demand, including:

 A review of industry trends and sports participation levels  Interviews with local and regional sports organizations  Review of historical utilization levels at comparable/competitive facilities

Sports Participation Trend Data

As an initial step in estimating the demand for the proposed Facilities, it is helpful to understand the approximate number of sports participants residing within the facility’s market area. The Sports Business Research Network (SBRnet) compiles trend data on nationwide participation levels for a number of sports and recreational activities, including several that could be offered at the proposed Williamsburg Facilities. The following table summarizes the approximate percentage of Americans participating in selected sports and recreation activities, stratified by age group.

U.S. Participation Levels in Selected Activities as a Percent of Population Age Group 7-11 12-17 18-24 25-34 35-44 45-54 55-64 65-74 75+

Basketball 21.1% 21.0% 13.8% 9.6% 5.5% 4.4% 1.9% 0.5% 0.0% Swimming 32.6% 27.3% 14.0% 17.1% 14.8% 14.8% 13.9% 8.8% 5.9% Wrestling 1.5% 2.5% 1.6% 1.3% 0.8% 0.1% 0.1% 0.0% 0.1% Volleyball 4.7% 10.6% 5.2% 3.9% 2.2% 1.9% 1.0% 0.4% 0.2% Source: SBRnet

Applying these participation rates to the population of the Primary Market for the proposed Facilities (the area within a 30-minute drive time of the reference site) provides a preliminary indication of the potential population of sports participants from which the Facilities could draw the majority of their local users. The results of this analysis are presented in the following table.

Primary Market Area(1) - Estimated Participants by Sport and Age Age Range 7-11 12-17 18-24 25-34 35-44 45-54 55-64 65-74 75+ Total

Primary Mkt(1) Population 11,265 13,620 22,733 24,854 21,088 22,961 21,273 16,016 11,831 165,641

Basketball 2,377 2,860 3,137 2,386 1,160 1,010 404 80 0 13,415 Swimming 3,673 3,718 3,183 4,250 3,121 3,398 2,957 1,409 698 26,407 Wrestling 169 341 364 323 169 23 21 0 12 1,421 Volleyball 529 1,444 1,182 969 464 436 213 64 24 5,325

(1) Primary Market Area represents a 30-minute drive time surrounding the identified reference site Source: SBRnet

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4. ESTIMATED DEMAND

As summarized in the table, assuming Williamsburg-area participation rates are similar to those of the U.S. as a whole, the Primary Market for the proposed Facilities is estimated at approximately 13,400 basketball players, 26,400 swimmers, 1,400 wrestlers, and 5,300 volleyball players. When considering the market relative to each proposed facility, it can be estimated that the aquatic facility will draw from a user population of approximately 26,400, while the recreational sports complex has a combined participation base of 20,200. While this assessment is not all-inclusive in terms of the sports and activities that could potentially be held in the two proposed Facilities, it does represent what are likely to be the larger and most consistent user groups.

Market participation rates will undoubtedly vary from national averages, based on local sporting trends, and not all participants in a sport will necessarily have an interest in participating in that particular activity at the proposed Facilities. However, it appears that the proposed Facilities will draw from a relatively large population of sports participants, particularly relative to the number of available venues in the market.

For sports tourism, market demand is not based on a 30-minute drivetime, but rather the local and regional opportunity to host and run tournaments and events. This opportunity is assessed and defined through extensive research into the following:  Existing tournament facilities  Existing tournaments and events  Local and regional sports organizations  The ability for the area to become a sports tourism destination

Local and Regional Sports Organizations

Interviews with representatives of local, regional, and national youth and amateur sports organizations that could represent potential users of the proposed Facilities were conducted to assess their potential interest in utilizing the Facilities for their events and activities.

The following is a summary of the key findings of the interviews conducted with regional sports organizations, broken down by facility and sport type:

4.1 Aquatic Facility

Organizations contacted as part of this study included, but were not limited to:

 Greater Williamsburg Chamber & Tourism;  Williamsburg Aquatic Club;  Virginia State High School League;  Blue Dolphin Swimming;  Williamsburg-Area High School Athletics;  USA Swimming;  Lafayette High School Athletics;  The College of William and Mary;

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4. ESTIMATED DEMAND

4.1.1 Swimming

Representatives of the organizations interviewed were supportive of a new aquatic facility in Williamsburg and generally indicated an opinion that such a facility is definitely needed and would be supported by the local and regional swimming communities.

From a local standpoint, representatives emphasized the large numbers of swimming programs and swimmers in the Williamsburg area and the fact that there are very few indoor facilities to accommodate them. Throughout the greater Williamsburg area, there are four public and one private high schools that have varsity swim teams, and none of them have a home pool. The few facilities that exist in the market struggle to support the high levels of practice and public programming needs, and all are incapable of supporting a competitive event. Consequently, the local high school teams hold practices at 5:00 a.m. every morning and drive 30 to 45 minutes out of Williamsburg to hold their “home” meets. It is highly anticipated, based on interview responses, that all five high school teams would seek daily practice time and host all home meets at a new facility.

The four public high schools in the area belong to the Bay Rivers District (BRD). There are three aquatic venues, all located in the Newport News/Hampton area, that currently host the majority of BRD meets. According to an individual that has involvement in BRD meet planning, season scheduling is nearly impossible due to inadequate space. It is anticipated that, in addition to the Williamsburg teams, the remaining BRD teams would hold many of their home meets at the new Facility. Altogether, representatives estimated that two to three (and maybe more) single-day, dual meets would be held weekly between December and late February – approximately 30 to 35 meets. Additionally, there would be opportunity to host year-end conference, regional, and state meets, as well, especially considering the available hotel accommodations and the relative attractiveness of the Williamsburg area. This would be dependent, however, on facility size and seating capacity. According to representatives from the Virginia State High School League, a 1,000-seat venue would get serious consideration from planners of the swimming state championships.

One concern commonly expressed was that the high schools wouldn’t get evening practice and meet times within the proposed facility. There has been a reluctance/inability to give prime public programming time to high school organizations at other public facilities. According to interviewees, an inability to secure evening hours would greatly reduce the high school teams’ ability to use the new Facility.

In addition to the high school swimming programs, there are two USA Swimming organizations that have participants in the Williamsburg area - the Williamsburg Aquatic Club (WAC) and the Coast Guard Blue Dolphins (CGBD), the latter of which is based out of Yorktown but has

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4. ESTIMATED DEMAND

approximately 100 (of its 300) swimmers in Williamsburg. Both clubs compete within the Southeastern District of USA Swimming’s Virginia LSC (Local Swimming Committee). Within the Southeastern District (District), which includes approximately 12 swim clubs throughout the Peninsula and Hampton Roads area, there are 2,200 to 2,400 registered swimmers – representing one of the most populous districts in the state. It is estimated that the number of annual sanctioned meets within the District (35 to 40 annually) needs to grow by 25 to 30 percent to sufficiently accommodate the numbers of teams and swimmers. WAC estimates that it would hold one, single-day District meet per month in a new facility, drawing 400 to 600 athletes per event mainly from the District. CGBD, which is forced to greatly limit its numbers in the Williamsburg area due to inadequate practice space, would definitely utilize the new facility if the opportunity were there, both for practice and events. Beyond the District season meets, there are 14 District, Regional, and State championship meets annually. According to interviews conducted, it is reasonable to believe that the proposed Facility would host 2 to 3 championship- level meets per year, drawing 1,000 to 1,200 athletes from throughout the District and state. Finally, depending upon the size and amenities of the Facility, it’s very possible that zone sectionals, regionals, and national level meet organizers would highly consider the Facility, as well (via competitive bid process). The awarding of these events is harder to predict.

In terms of facility size, interviewees expect that a 1,000-seat facility in the Williamsburg market would be a very competitive venue in attracting the largest meets in the state and region, including high school and USA Swimming state championships and USA zone sectionals. Furthermore, a facility that could accommodate 1,500 attendees, coupled with Williamsburg’s attractiveness and centralized location on the east coast, would contend for national-level meets. One thing noted on numerous occasions was that the quality of the group running the facility and meets was as important as the quality and specifications of the facility itself.

4.2 Recreational Sports Facility

Organizations contacted included, but were not limited to:

 Greater Williamsburg Chamber & Tourism;  USA Volleyball;  Virginia State High School League;  USA Table Tennis;  Lafayette High School Athletics;  Virginia Venom Basketball;  Williamsburg-Area High School Athletics;  Toano Storm Basketball;  Virginia AAU Basketball;  United State Basketball Assoc.;  The College of William and Mary;  USA Wrestling  Virginia AAU Wrestling;  AAU Volleyball

In talking with organizations and individuals regarding the potential for a recreational sports complex, there was a general consensus that the Williamsburg area currently lacks in its number

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4. ESTIMATED DEMAND

and quality of court facilities, leaving the local needs and the market’s potential for sports-tourism underserved. From the perspective of the local high schools, it should be noted that, while practice time/space is in high demand, in-season games are relatively well accommodated, and it doesn’t appear that a recreational facility would draw much competition play.

Representatives from area high schools and school districts communicated that they have a very difficult time meeting the practice needs of the various high school teams, due to the numbers of schools, the numbers of often-overlapping sport seasons (including basketball, volleyball, wrestling, competition cheer, and numerous outdoor, but weather-dependent, sports) and the fact that few of the schools offer auxiliary gym space. Practice needs oftentimes have to be accommodated through the use of other facilities in the area. Part of the difficulty with supporting practices is that coaching staffs are increasingly coming from the private sector, which pushes what would be a 3:00 to 5:00 p.m. practice to 5:00 and later. Not only does this put greater strain on the later practice hours, it also reduces the number of available courts. Local facilities that provide public programming, while willing to give space from 3:00 to 5:00, oftentimes hesitate or refuse to give practice time during their peak public-use hours. To that point, as was similarly expressed with regard to the proposed aquatic center, a common concern is that the facility will not be available to the high schools during the times that will benefit them, which would greatly reduce their ability to use it.

When it comes to accommodating the game/competition needs of the court sports, the high schools are generally able to do so sufficiently and wouldn’t require this of the proposed facility. Though hosting playoff-level competitions is a possibility, those games, when in Williamsburg, are relatively well accommodated at existing facilities, as well. According to the Virginia State High School League, state level competitions (both semi-finals and finals matches) are typically held at large university facilities, like VCU.

4.2.1 Basketball

There are two AAU club basketball teams in the local area, the Virginia Venom and the Toano Storm. In terms of available practice space, both organizations expressed opinion similar to those of the individuals representing the high schools. Though both teams have second priority (behind the local schools) in using James City County gyms, they have difficulty in getting the amount of practice time they would like. This, in turn, forces them to limit their player numbers.

Few tournaments are held in the Williamsburg area, primarily due to an inability to efficiently host them. Club teams, when hosting a tournament, are forced to limit the numbers of teams and/or spread the games across numerous facilities. Generally, these games take place at local elementary and middle schools. Both clubs expressed significant interest in the proposed facility and envisioned holding many more local tournaments.

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4. ESTIMATED DEMAND

Individuals from the regional arms of AAU and USAB agree that the area from Richmond to Virginia Beach is a hotbed for basketball (as well as volleyball and wrestling), and that another large, multi-purpose facility could definitely be supported in that market. Representatives of the organizations thought that a new facility could realistically expect to host eight to ten, two-day basketball tournaments between October and May. In their opinion, the Williamsburg area would almost certainly be attractive to tournament organizers, teams and spectators.

4.2.2 Volleyball

The Williamsburg Volleyball Club is a USA Volleyball (USAV) club that plays out of Williamsburg. It consists of 11 teams and approximately 110 players total. According to representatives of the Club, they are constantly turning kids away, due to inadequate practice space. Each of the 11 teams currently holds two, three-hour practices per week between January and June; however, this is far less than they would like to be practicing.

The Club holds few tournaments in the Williamsburg area, mainly because of the lack of a facility that can efficiently host a larger event. The Revolutionary Rumble (the one large event that the WVC holds annually) draws 200 teams, and the games are spread throughout 18 facilities in the area. Estimates show that the tournament draws 5,000 to 6,000 people to Williamsburg. According to conversations with WVC, if the proposed facility were to be built, they would likely hold around 10, single-day tournaments (four to five teams per available court) and multiple “Rumbles.”

Representatives from the regional arm of USA Volleyball expressed a great deal of interest in the proposed facility. The organization has a desire for additional venues to host larger tournaments in the JCC/Williamsburg area. Due to the tourist draw of the Williamsburg, along with the popularity of the sport in that area, a facility like this could expect to do 10 to 12 single-day events (as was expressed by WVC) and would have the potential to draw regional events, as well. Most regional and state events, however, require a large number of courts (25-50) and generally take place at convention centers or large arenas.

4.3.3 Other Events

A multi-purpose court facility has the capability, depending upon size, to host a variety of additional sporting events, as well. Wrestling, in particular, which is also popular throughout the region, presents some opportunity. According to USA and AAU Wrestling, there is a large need for more facilities similar to the proposed recreational sports center in the JCC/Williamsburg area. It’s a very attractive area for tourism and sports, and the available venues aren’t able to accommodate the large events that could be attracted.

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4. ESTIMATED DEMAND

A facility like this, according to USA and AAU representatives, could realistically expect to host 10 to 12 events annually, with around 200 athletes. Four to six mats would be set up at a typical event (four mats cover two regulation-sized basketball courts). Additional opportunities exist among a variety of less popular sports organizations including, but not limited to, weightlifting, boxing, judo, table tennis, badminton, and mixed martial arts. According to the Greater Williamsburg Chamber and Tourism, requests to host national tournaments, from large sanctioning bodies (including the USA arm of most of those mentioned), are received regularly and have to be turned down due to an inability to accommodate them. According to conversations with a number of the organizations, typically, there are few local- and regional-level events with these sports, unless there is a very active local club. At the national level, one to two larger events will look for a host location annually. Though opportunity exists, the awarding of these events is more difficult to predict.

Market Demand Summary

Based on our interviews with representatives of local, regional and national sports organizations, as well as event, activity and attendance levels at comparable/competitive facilities and the experience of the consulting team in analyzing and operating indoor sports venues across the country, estimates were developed with regard to the types of activities that could be supported at a new athletic, recreational and aquatic facilities in James City County. The following table provides an overview of these utilization estimates as they relate to tournaments and competitions at the proposed indoor athletic venue.

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4. ESTIMATED DEMAND

Rental Basketball Number of Tournaments 8 8 6 5 6 33 Number of Players 3,872 4,160 3,344 3,824 5,360 20,560 Number of Spectators 5,808 6,240 5,016 5,736 8,040 30,840

In-House Volleyball Number of Tournaments 0 0 2 2 2 6 Number of Players 0 0 1,680 1,680 2,240 5,600 Number of Spectators 0 0 2,520 2,520 3,360 8,400

Rental Volleyball Number of Tournaments 6 8 8 9 8 39 Number of Players 4,320 6,320 7,120 8,880 8,480 35,120 Number of Spectators 6,480 9,480 10,680 13,320 12,720 52,680

Total Number of Events 14 18 20 22 22 96 Total Number of Players 8,192 11,200 13,920 18,288 20,720 72,320 Total Number of Spectators 12,288 16,800 20,880 27,432 31,080 108,480

Other Uses

Other Indoor Tournaments/Events Drop-In PlayPersonal Training Youth Programs Birthday Parties Athlete GroupChild Training Development Membership

As shown, basketball and volleyball activities are estimated to represent the largest source of tournament utilization for the proposed indoor athletic facility. It is estimated that the proposed facility could accommodate as many as 43 individual tournaments in a stabilized year of operations (assumed to occur in the fifth year).

Beyond these organized sports activities, a variety of additional programming options could be offered, including birthday parties, rock climbing, drop-in play sessions, rentals, athlete group training, personal training, child development and a variety of youth programs.

A summary of utilization estimates for swimming meets and other event activity at the proposed aquatics facility is presented below.

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4. ESTIMATED DEMAND

Total Number of Events 44 47 48 50 51 240 Total Number of Swimmers 8,600 11,626 14,088 16,646 18,923 69,883 Total Number of Spectators 17,750 24,460 30,161 35,489 40,290 148,150

Other Uses

Birthday Parties Public Swim Swim Instruction Youth Programming Water Exercise Membership High School Rentals Other Rentals

As shown, our research indicates that the proposed aquatics facility could accommodate as many as 51 swimming meets in a stabilized year of operations (assumed to occur in the fifth year). The majority of this activity is derived from dual meets, which generally consist of fewer than 150 swimmers.

The financial estimates presented in the following section are based on the utilization levels outlined in these tables. Additional detail, including the build-up to normalized operations over the first five years of operations, and the price/fee structure associated with each activity, can be found in the appendices following this report.

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5. BUILDING PROGRAM, COST AND FINANCIAL ANALYSIS

The purpose of this section is to present recommendations regarding an appropriate building program for the proposed Sports Complex that will be best positioned to meet demand in the marketplace and to summarize the analysis of potential sites for the proposed facility, including City-owned and non-City- owned parcels.

5.1 Facility Program and Products/Services

James City County Sports Facility – 84,462 Total Square Feet

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5. BUILDING PROGRAM, COST AND FINANCIAL ANALYSIS

The chart below details the specific space recommendations for the indoor court facility and site, including parking.

Indoor Athletic Facility (IAF) Dimensions Approx. Space Indoor Programming Product/Service Count Total SF % of Footprint L (') W (') SF each Basketball Courts 6 115 86 9,890 59,340 70.3% (actual courts 84' x 50')

Court Volleyball Courts 12 60 30 Over Courts 0.0% Total Court Sq. Ft. 59,340 70.3% Welcome/Lobby Area 1 30 25 750 750 0.9% Admin/ Check-In Office 1 20 10 200 200 0.2% Control Office 1 10 10 100 100 0.1% Conference Room 1 20 15 300 300 0.4% Training Room 1 20 12 240 240 0.3% Telescopic Bleacher System: 1200 Seats 1 10 120 1,200 1,200 1.4% (15 Rows) Flex Locker/Team Rooms 3 25 25 625 1,875 2.2% Coaches/Ref Rooms 2 12 10 120 240 0.3% Rock Wall 1 40 35 1,400 1,400 1.7%

Flex SpaceFlex Classroom Space (with two room 1 60 25 1,500 1,500 1.8% dividers) Office Area 1 40 40 1,600 1,600 1.9% Kitchen 1 30 30 900 900 1.1% Café Seating 1 40 20 800 800 0.9% Restrooms 4 30 25 750 3,000 3.6% Mezzanine (Upstairs) 1 12 320 3,840 3,840 4.5% Hospitality Room (Upstairs) 1 25 20 500 500 0.6% Total Flex Space Sq. Ft 14,105 16.7% Required SF for Products and Services 73,445 87.0% Mechanical, Electrical, Storage, etc. 5% of P&S SF 3,672 4.3% Common Area, Stairs, Circulation, etc. 10% of P&S SF 7,345 8.7% Total Estimated Indoor Facility SF 84,462 100% Estimated Building Footprint 80,122 Total Building Acreage 1.9

Site Development (IAF) Outdoor Dimensions Approx. Quantity Total SF % of Total L (') W (') SF each Parking Spaces Total (10'x18') 380 20 20 400 152,031 59.0% Setbacks, Green Space, etc. 25% of SF 21,115 8.2% Total Estimated Complex SF 257,608 100% Total Complex Acreage 5.9

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James City County Aquatics Center – 58,402

 Admin Area o Dry Land Training Room ( 40’ x 30’) o Lobby/ Welcome Area o Concessions & Seating Area o Pro Shop o Restrooms o Locker Rooms o Family Changing Rooms o Office Area

The chart on the following page details the specific space recommendations for the aquatics based site, including parking.

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5. BUILDING PROGRAM, COST AND FINANCIAL ANALYSIS Facility Program

Indoor Building Dimensions Indoor Programming Product/Service Quantity Approx. SF each Total SF % of Total L (') W (') 50 Meter Competition Pool 1 168 75 12,600 12,600 25.9% Warm Up and Instruction Pool 1 75 46 3,450 3,450 7.1% Warm Up Area and Deck Space 1 15,000 15,000 30.8% Spectator Seating - 1500 Seats 1 160 35 5,600 5,600 11.5% Pool Mech. Room & Storage 1 100 15 1,500 1,500 3.1%

Natatorium Mezzanine (Upper Level) 1 220 15 3,300 3,300 6.8% Closed Mezzanine (Upper Level) 1 100 17 1,700 1,700 3.5% Dry Land Training Room 1 40 30 1,200 1,200 2.5% Lobby/Welcome Area 1 25 20 500 500 1.0% Concessions & Seating Area 1 25 20 500 500 1.0% Pro Shop 1 15 10 150 150 0.3% Restrooms 2 25 20 500 1,000 2.1% Locker Rooms 2 30 30 900 1,800 3.7% Admin/Flex Space Family Changing Rooms 2 8 8 64 128 0.3% Office Area 3 10 8 80 240 0.5% Required SF for Products and Services 48,668 100.0% Mechanical, Electrical, Storage, etc. 7.5% of P&S SF 3,650 Common Area, Stairs, Circulation, etc. 12.5% of P&S SF 6,084 Total Estimated Indoor Facility SF 58,402 Estimated Building Footprint 51,474 Building Acreage 1.18

Site Development Dimensions Outdoor Amenities Quantity Approx. SF each Total SF % of Total L (') W (') Parking 400 20 20 400 160,000 68.4% Setbacks, Green Space, etc. 35% of SF 74,016 Total Estimated Outdoor SF 234,016 Total Estimated Outdoor Acreage 5.37 Total Complex Acreage 6.55

5.2 Construction Cost Estimates

Based on the information presented herein, the projected cost of the proposed indoor athletic facility development is summarized in the following chart.

USES OF FUNDS Land Cost $1,253,741 Hard Cost $7,449,852 Field and Sport Equipment Cost $1,829,668 Soft Cost $1,904,970 Working Capital Reserve TBD Total Uses of Funds $12,438,232

The complete breakdown of construction cost estimates can be found in the comprehensive five-year operating pro forma, which can be found in Appendix A following this report.

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5. BUILDING PROGRAM, COST AND FINANCIAL ANALYSIS

The projected cost of aquatics center development is summarized in the following chart.

The complete breakdown of construction cost estimates can be found in the comprehensive 5-year operating pro forma, which has been delivered as a separate document.

5.3 Financial Analysis

This study contains projections and actual tables from the comprehensive 5-year operating pro forma for the James City County Sports Facility and James City County Aquatics Center.

In advance of the financial analysis, CSL and SFA completed demographic and market research related to sports participation, program pricing, competition, comparable facilities, and other important variables. Numerous factors have been considered, including but not limited to:

 Community sports/recreation needs  Existing resources (human and financial)  Existing data  Local and Regional Market data (demographics, sports and recreation participation, tournaments and events, existing service providers, community interest)  Pricing for comparable offerings in the local and regional market  Construction and land cost estimates

Several of the assumptions listed throughout this section and reflected in the financial forecast are subject to change based on the next scope of work, which will include site selection and could result in a shift in the financing model. The forecast can be adjusted to accommodate those changes and the resulting shifts may slightly alter final projections and recommendations.

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Assumptions and Drivers to Success

 The model assumes that the County will build the court and aquatics facilities on two separate sites; an 18 acre private site near downtown or a 15 acre city owned site near Berkley Middle School. In terms of local programming, the site near middle school has a more dense surrounding population and has potential to generate additional revenue streams for local programming.  The financing structure assumes the use of 100% equity for the construction costs and the operational start-up costs. Under those guidelines, the County will not borrow any funds and will contribute a total of $12,438,232 in equity for the court facility and $17,684,285 for the aquatics facility.  The operation of both facilities will require subsidization, and the model assumes that the amount needed to cover negative cash flow will be available for each facility. It should be noted that this is common in facilities constructed to attract non-local populations in an effort to increase spending in the market.  The facility will be professionally managed by experienced staff, and the facility operating systems, software, marketing, and other systems will meet national market standards for excellence.  The operating expenses, salaries, fees, and cost of goods sold will meet the revenue-to-expense ratios outlined within the pro forma.

Methodology and Background

The determination of financial feasibility for this project depends on the financial forecast of the business and the level of confidence we have that the facility will achieve results that support long-term sustainability.

In creating a financial forecast, SFA project numbers that are dependent on timely marketing, attention to detail, ongoing financial analysis, a focus on customer service, and intelligent management practices that do not rely on unlikely circumstances or unreliable sources of revenue to achieve. If assessed on a 1- 10 scale where 1 represents a scenario in which the numbers are virtually guaranteed as long as the facility opens its doors and 10 represents a scenario in which every revenue stream relies on a best-case blend of timing and circumstance, SFA aims to create a forecast that would fall between a 4 and a 5.

In order to project the financial performance of the facilities, CSL and SFA took 13 steps to assess feasibility. Those steps were:

1) Interview the founding team to understand the vision for the project, the goals for the project, and the core competencies of the founding team. 2) Conduct an in-depth local and regional market analysis to understand the unique needs and habits of James City County and the surrounding area residents, including a demographic study and a review of sports participation rates. A RECREATIONAL FACILITY FEASIBILITY STUDY FOR JAMES CITY COUNTY Page 52

5. BUILDING PROGRAM, COST AND FINANCIAL ANALYSIS

3) Analyze existing local service providers to identify areas where residents were underserved based on their needs and habits. 4) Analyze existing regional service providers and events to identify areas of opportunities to attract sports tourism. 5) Interview key stakeholders and user groups to identify the needs of the local and regional community and identify potential user groups and program partners. 6) Project the number of participants for programs. 7) Project the number of local and non-local tournament and event participants. 8) Project the total hotel room nights and economic impact generated from sports tourism. 9) Design a facility program, for each model, that would accommodate the projected number of participants and events. 10) Determine the expense structure of each facility, including operating costs, facility costs, management costs, and direct costs to deliver programs and events. 11) Review the model with the founding team. 12) Analyze the revenue and expense projections to determine the appropriate funding structure. 13) Present the factors that lead to a determination of feasibility.

Overview of Financial Performance

Through completion of the steps detailed above, the following tables show a summary income statement for each facility produced by SFA. These projections provide a conservative baseline for assessing feasibility.

James City County Sports Facility

Summary Income Statement Year 1 Year 2 Year 3 Year 4 Year 5 Total Revenue $723,837 $899,395 $1,130,679 $1,503,051 $1,843,254 Total Cost of Goods Sold $282,465 $360,510 $464,986 $656,825 $840,887 Gross Margin $441,372 $538,885 $665,693 $846,226 $1,002,367 Total Operating Expenses $1,179,928 $1,215,305 $1,259,260 $1,334,991 $1,405,334 EBITDA ($738,557) ($676,421) ($593,567) ($488,765) ($402,967) Debt Service $0 $0 $0 $0 $0 Total Net Income ($738,557) ($676,421) ($593,567) ($488,765) ($402,967)

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5. BUILDING PROGRAM, COST AND FINANCIAL ANALYSIS competitive pricing that – in many cases – will result in lost bottom-line revenue in order to generate economic impact from non-local spending. The local population that would participate in the sports offered at the court facility is not large enough to justify a 6-court gymnasium, but based on the regional opportunity the 6-court facility will optimize economic impact through sports tourism.

As shown, the direct spending in the community catalyzed by the court facility will generate tax revenues for the City and County totaling $150,000 in year one and $485,000 annually at maturity.

James City County Aquatics Center

Summary Income Statement Year 1 Year 2 Year 3 Year 4 Year 5 Total Revenue $689,737 $767,867 $889,622 $946,720 $1,028,743 Total Cost of Goods Sold $217,953 $231,565 $256,038 $270,901 $288,890 Gross Margin $471,784 $536,302 $633,584 $675,819 $739,854 Total Operating Expenses $1,106,375 $1,135,953 $1,171,158 $1,205,081 $1,240,679 EBITDA ($634,590) ($599,651) ($537,573) ($529,262) ($500,826) Debt Service $0 $0 $0 $0 $0 Total Net Income ($634,590) ($599,651) ($537,573) ($529,262) ($500,826)

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5. BUILDING PROGRAM, COST AND FINANCIAL ANALYSIS

As shown, the direct spending in the community catalyzed by the aquatics facility will generate tax revenues for the City and County totaling $35,000 in year one and $51,000 annually at maturity.

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Projected Revenue of Products and Services

The “Projected Revenue of Products and Services” table demonstrates the diversified revenue base for the Sports Complex and how the various contributions increase and are distributed over the first five years of operations.

James City County Sports Facility

Year 1 Year 2 Year 3 Year 4 Year 5 Growth Year 1 to 5 Projected Revenue of Products and Services $ % of Total $ % of Total $ % of Total $ % of Total $ % of Total $ % Growth Tournament Revenue In-House Basketball Tournaments $0 0% $24,075 3% $52,197 5% $118,908 8% $122,472 7% $122,472 - In-House Overflow Basketball Tournaments $0 0% $0 0% $0 0% $6,695 0% $38,724 2% $38,724 - Rental Basketball Tournaments $81,702 11% $85,188 9% $69,897 6% $69,027 5% $97,443 5% $15,741 19% Rental Overflow Basketball Tournaments $10,190 1% $16,744 2% $17,444 2% $28,952 2% $41,285 2% $31,095 305% In-House Volleyball Tournaments $0 0% $0 0% $58,013 5% $114,983 8% $191,079 10% $191,079 - In-House Overflow Volleyball Tournaments $0 0% $0 0% $0 0% $0 0% $19,062 1% $19,062 - Rental Volleyball Tournaments $79,290 11% $79,425 9% $83,160 7% $95,040 6% $83,606 5% $4,316 5% Rental Overflow Volleyball Tournaments $0 0% $5,550 1% $11,550 1% $17,325 1% $23,595 1% $23,595 - Indoor Rental Events $12,750 2% $12,750 1% $17,325 2% $20,625 1% $25,121 1% $12,371 97% Hotel Rebates $7,789 1% $13,069 1% $23,139 2% $47,725 3% $63,521 3% $55,733 716% Secondary Rev. Areas $75,000 10% $90,000 10% $94,500 8% $99,225 7% $104,186 6% $29,186 39% Food & Beverage $149,920 21% $205,600 23% $246,500 22% $381,240 25% $470,860 26% $320,940 214% Retail $9,342 1% $16,670 2% $32,776 3% $56,962 4% $74,220 4% $64,878 694% Local Usage Revenue IAF-Memberships $12,574 2% $15,718 2% $19,883 2% $20,877 1% $23,017 1% $10,443 83% IAF-Basketball $69,687 10% $87,109 10% $110,193 10% $115,703 8% $127,562 7% $57,875 83% IAF-Volleyball $20,262 3% $25,327 3% $32,039 3% $33,640 2% $37,089 2% $16,827 83% IAF-Court Rental $12,650 2% $13,915 2% $16,072 1% $16,875 1% $17,719 1% $5,069 40% IAF-Rock Wall $39,800 5% $45,770 5% $55,382 5% $58,151 4% $64,111 3% $24,311 61% IAF-Birthday Parties $18,000 2% $22,500 3% $28,463 3% $29,886 2% $32,949 2% $14,949 83% IAF-Corporate and Group Events $11,600 2% $14,500 2% $19,140 2% $21,054 1% $24,317 1% $12,717 110% IAF-Youth Programs $43,600 6% $52,320 6% $66,185 6% $69,494 5% $76,617 4% $33,017 76% IAF-Food & Beverage $69,681 10% $73,165 8% $76,823 7% $80,664 5% $84,698 5% $15,017 22% Total Revenue $723,837 100% $899,395 100% $1,130,679 100% $1,503,051 100% $1,843,254 100% $1,119,417 155%

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5. BUILDING PROGRAM, COST AND FINANCIAL ANALYSIS

Growth of Local Products and Services

Year 1 to 5

$200,000

$100,000

$0 Year 1 Year 5

Growth of Tournament Products and Services Year 1 to 5 $500,000 Year 1 Year 5

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James City County Aquatics Center

Projected Revenue of Products Year 1 Year 2 Year 3 Year 4 Year 5 Growth Year 1 to 5 and Services $ % of Total $ % of Total $ % of Total $ % of Total $ % of Total $ % Growth Membership and Public Swim $172,505 25% $189,756 25% $219,168 25% $230,127 24% $253,715 25% $81,209 47% Swim Instruction $51,431 7% $56,574 7% $68,455 8% $75,301 8% $83,019 8% $31,588 61% Swim Competition Events $69,700 10% $89,855 12% $107,847 12% $121,035 13% $127,646 12% $57,946 83% Water Exercise $39,997 6% $43,997 6% $53,237 6% $55,898 6% $61,628 6% $21,631 54% Pool Rentals $141,495 21% $155,645 20% $188,330 21% $197,746 21% $218,015 21% $76,520 54% Youth Programming $32,940 5% $36,234 5% $43,843 5% $46,035 5% $50,754 5% $17,814 54% Birthday Parties $10,800 2% $11,880 2% $14,375 2% $15,094 2% $16,641 2% $5,841 54% Food & Beverage $150,868 22% $163,326 21% $173,149 19% $183,629 19% $194,816 19% $43,948 29% Secondary Areas $20,000 3% $20,600 3% $21,218 2% $21,855 2% $22,510 2% $2,510 13% Total Revenue $689,737 100% $767,867 100% $889,622 100% $946,720 100% $1,028,743 100% $339,006 49%

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Total Operating Revenues & Expenses

The five-year financial forecast is a reflection of the service philosophy of the facility’s primary purpose: to be a County-owned and County-operated facility that creates economic impact through sports tourism and serves the local needs of the area. As such, pricing and structure is reflective of the trends in the region and creates a competitive opportunity to attract and host tournaments.

The following revenues and expenses are based on observations of comparable facilities, stakeholder interviews, market research, and SFA’s proprietary system for projecting tournament and program participation. To meet the following projections in the first year and continuing through the life of the facility, the County should recognize that it must:

1. Implement a marketing plan to attract business before the facility is constructed. 2. Target programming to maximize sports and training activities during peak times and off-peak times. 3. Implement and host a mix of program elements that generate revenue for the Sports Complex while attracting a wide range of age groups to accommodate the needs of children, teens, and adults, as well as varying levels of competition. 4. Employ a strong leadership team can focus on business development to meet the revenue goals while effectively managing the day-to-day operations to control expenses and meet bottom line targets.

With success in each of those four areas, the court and aquatics facilities can expect to achieve the revenue and expense projections outlined in the tables below.

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Total Court Facility Revenue & Expenses

Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Tournament Revenue In-House Basketball Tournaments $0 $24,075 $52,197 $118,908 $122,472 In-House Overflow Basketball Tournaments $0 $0 $0 $6,695 $38,724 Rental Basketball Tournaments $81,702 $85,188 $69,897 $69,027 $97,443 Rental Overflow Basketball Tournaments $10,190 $16,744 $17,444 $28,952 $41,285 In-House Volleyball Tournaments $0 $0 $58,013 $114,983 $191,079 In-House Overflow Volleyball Tournaments $0 $0 $0 $0 $19,062 Rental Volleyball Tournaments $79,290 $79,425 $83,160 $95,040 $83,606 Rental Overflow Volleyball Tournaments $0 $5,550 $11,550 $17,325 $23,595 Indoor Rental Events $12,750 $12,750 $17,325 $20,625 $25,121 Hotel Rebates $7,789 $13,069 $23,139 $47,725 $63,521 Secondary Rev. Areas $75,000 $90,000 $94,500 $99,225 $104,186 Food & Beverage $149,920 $205,600 $246,500 $381,240 $470,860 Retail $9,342 $16,670 $32,776 $56,962 $74,220 Local Usage Revenue IAF-Memberships $12,574 $15,718 $19,883 $20,877 $23,017 IAF-Local Aquatics $0 $0 $0 $0 $0 IAF-Basketball $69,687 $87,109 $110,193 $115,703 $127,562 IAF-Volleyball $20,262 $25,327 $32,039 $33,640 $37,089 IAF-Court Rental $12,650 $13,915 $16,072 $16,875 $17,719 IAF-Rock Wall $39,800 $45,770 $55,382 $58,151 $64,111 IAF-Birthday Parties $18,000 $22,500 $28,463 $29,886 $32,949 IAF-Corporate and Group Events $11,600 $14,500 $19,140 $21,054 $24,317 IAF-Youth Programs $43,600 $52,320 $66,185 $69,494 $76,617 IAF-Food & Beverage $69,681 $73,165 $76,823 $80,664 $84,698 Total Revenue $723,837 $899,395 $1,130,679 $1,503,051 $1,843,254

Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Tournament Expenses In-House Basketball Tournaments $0 $13,208 $25,020 $54,659 $57,154 In-House Overflow Basketball Tournaments $0 $0 $0 $5,310 $30,396 Rental Basketball Tournaments $18,250 $18,599 $14,910 $14,823 $20,544 Rental Overflow Basketball Tournaments $5,979 $10,114 $10,184 $16,295 $22,489 In-House Volleyball Tournaments $0 $0 $31,211 $63,044 $106,010 In-House Overflow Volleyball Tournaments $0 $0 $0 $0 $14,054 Rental Volleyball Tournaments $7,929 $7,943 $8,316 $9,504 $8,361 Rental Overflow Volleyball Tournaments $0 $3,555 $7,155 $10,733 $14,360 Indoor Rental Events $1,275 $1,275 $1,733 $2,063 $2,512 Hotel Rebates $0 $0 $0 $0 $0 Secondary Rev. Areas $15,000 $18,000 $18,900 $19,845 $20,837 Food & Beverage $97,448 $133,640 $160,225 $247,806 $306,059 Retail $6,539 $11,669 $22,943 $39,873 $51,954 Local Usage Expenses IAF-Memberships $629 $786 $994 $1,044 $1,151 IAF-Basketball $33,119 $36,521 $43,246 $45,408 $48,878 IAF-Volleyball $8,579 $9,305 $11,106 $11,662 $12,620 IAF-Court Rental $633 $696 $804 $844 $886 IAF-Rock Wall $16,668 $17,337 $20,705 $21,740 $23,818 IAF-Birthday Parties $7,380 $9,225 $11,359 $11,927 $12,978 IAF-Corporate and Group Events $4,640 $5,545 $6,973 $7,584 $8,601 IAF-Youth Programs $11,838 $14,206 $17,871 $18,764 $20,633 IAF-Food & Beverage $46,560 $48,888 $51,332 $53,898 $56,593 Total Cost of Goods Sold $282,465 $360,510 $464,986 $656,825 $840,887

Continued below

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Gross Margin $441,372 $538,885 $665,693 $846,226 $1,002,367 $3,494,543 % of Revenue 61% 60% 59% 56% 54% 57%

Facility Expenses $238,154 $242,499 $249,774 $257,267 $264,985 $1,252,680 Operating Expense $499,258 $512,633 $525,106 $556,116 $580,837 $2,673,950 Management Payroll $343,393 $353,873 $369,089 $392,048 $416,029 $1,874,432 Payroll Taxes/Benefits/Bonus $99,123 $106,300 $115,291 $129,560 $143,484 $593,758 Total Operating Expenses $1,179,928 $1,215,305 $1,259,260 $1,334,991 $1,405,334 $6,394,820

EBITDA ($738,557) ($676,421) ($593,567) ($488,765) ($402,967) ($2,900,277) % of Revenue -102% -75% -52% -33% -22% -48% Debt Service $0 $0 $0 $0 $0 $0

Total Net Income ($738,557) ($676,421) ($593,567) ($488,765) ($402,967) ($2,900,277)

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Aquatics Center

Total Aquatics Facility Revenue & Expenses

Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Cumulative Membership and Public Swim $172,505 $189,756 $219,168 $230,127 $253,715 $1,065,271 Swim Instruction $51,431 $56,574 $68,455 $75,301 $83,019 $334,781 Swim Competition Events $69,700 $89,855 $107,847 $121,035 $127,646 $516,084 Water Exercise $39,997 $43,997 $53,237 $55,898 $61,628 $254,757 Pool Rentals $141,495 $155,645 $188,330 $197,746 $218,015 $901,231 Youth Programming $32,940 $36,234 $43,843 $46,035 $50,754 $209,806 Birthday Parties $10,800 $11,880 $14,375 $15,094 $16,641 $68,789 Food & Beverage $150,868 $163,326 $173,149 $183,629 $194,816 $865,788 Secondary Areas $20,000 $20,600 $21,218 $21,855 $22,510 $106,183 Total Revenue $689,737 $767,867 $889,622 $946,720 $1,028,743 $4,322,690

Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Cumulative Membership and Public Swim $43,800 $45,180 $47,533 $48,410 $50,297 $235,222 Swim Instruction $18,073 $16,335 $19,574 $21,455 $23,573 $99,010 Swim Competition Events $13,940 $17,971 $21,569 $24,207 $25,529 $103,217 Water Exercise $14,799 $14,959 $18,100 $19,005 $20,954 $87,817 Pool Rentals $7,075 $7,782 $9,416 $9,887 $10,901 $45,062 Youth Programming $12,414 $13,655 $16,436 $17,257 $18,978 $78,740 Birthday Parties $10,332 $11,365 $12,881 $13,525 $14,431 $62,533 Food & Beverage $93,520 $100,197 $106,284 $112,783 $119,725 $532,509 Secondary Areas $4,000 $4,120 $4,244 $4,371 $4,502 $21,237 Total Cost of Goods Sold $217,953 $231,565 $256,038 $270,901 $288,890 $1,265,346

Gross Margin $471,784 $536,302 $633,584 $675,819 $739,854 $3,057,344 % of Revenue 68% 70% 71% 71% 72% 71% Facility Expenses $642,676 $661,956 $681,815 $702,269 $723,337 $3,412,053 Operating Expense $212,646 $214,702 $221,724 $227,932 $234,674 $1,111,678 Management and Lifeguard Payroll $187,500 $192,825 $197,312 $201,919 $206,652 $986,208 Payroll Taxes/Benefits/Bonus $63,553 $66,470 $70,307 $72,961 $76,016 $349,307 Total Operating Expenses $1,106,375 $1,135,953 $1,171,158 $1,205,081 $1,240,679 $5,859,246 % of Revenue 160% 148% 132% 127% 121% 136%

EBITDA ($634,590) ($599,651) ($537,573) ($529,262) ($500,826) ($2,801,902) % of Revenue -92% -78% -60% -56% -49% -65% Debt Service $0 $0 $0 $0 $0 $0

Total Net Income ($634,590) ($599,651) ($537,573) ($529,262) ($500,826) ($2,801,902)

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Conclusion

As stated and demonstrated above, the financial forecast projects cash flow to remain negative through year 5 and will require a subsidy to remain operational.

The court facility will generate an economic impact of $4.8 million from direct spending as well as $1.1 million from indirect spending by filling 7,789 room nights in year one and will generate an annual economic impact of $15.2 million from direct spending and $3.6 million from indirect spending by filling 26,356 room nights at maturity. That amount of direct spending in the community will generate tax revenues for the City and County totaling $150,000 in year one and $485,000 annually at maturity.

The aquatics facility will generate an economic impact of $1.1 million from direct spending as well as $250,000 from indirect spending by filling 1,804 room nights in year one and will generate an annual economic impact of $1.6 million from direct spending as well as $360,000 from indirect spending by filling 2,617 room nights at maturity. That amount of direct spending in the community will generate tax revenues for the City and County totaling $35,000 in year one and $51,000 annually at maturity.

What follows are the professional conclusions, findings, and recommendations for the James City County Sports Facility and James City County Aquatics Center:

Contributors to Project Success

When assessing the feasibility of these facilities, there are several “Contributors to Project Success” that have been identified through this study:

 Destination Appeal: James City County is known for its rich culture and place in U.S. history. One of the primary factors in attracting tournament and event rights holders and participants is the appeal of the destination, and the County has a unique set of attractions that will draw guests and encourage them to extend their stays and spending in the market.  Regional Needs: Both facilities being evaluated are needed in the region. The court facility would be one of the very few in the region that can host 48 basketball teams or 96 volleyball teams under one roof, and the number of 50-meter competition pools in the region is not enough to meet the demand of the high school or competition club markets.  Public Support: As County projects, the facilities start off with key institutional alliances that will allow for a high level of support through the planning, zoning, construction, and ongoing operation processes. Furthermore, there has been a positive response to the project from several key user groups in the local and regional markets.  Economic Benefits: Because this is a public project, the tax benefit of economic impact from out-of-town spending is realized by the ownership group. If the County chooses to track

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revenue in this way, the incremental tax generation from the 1% County tax, a 5% hotel tax, and a 5% meal purchase tax can be counted toward a direct offset of negative operating cash flow.  Financing Structure: Because of access to capital, the County is able to avoid a debt service payment. SFA’s typical recommendation is to keep annual debt service to less than 10% of gross revenue by maturity (Year 5). Under the finance structure assumed for this model, annual debt service is 0% of gross revenue.

Challenges to Project Success

As is the case with any business endeavor, there are obstacles to overcome along the path to feasibility. Although this project has a limited number of challenges based on the factors listed above, SFA has outlined these “Challenges to Project Success” below:

 Cost to Operate: As demonstrated in the financial analysis, there is an ongoing cost to operate both facilities. Although this is common for tournament-based facilities and is the norm for aquatics facilities, the need to subsidize the facilities to and beyond maturity must be factored into the decision and planned for in the County’s master plan for recreation and tourism development.  Market Size: While these facilities are being considered for their ability to drive out-of-town visits and spending, the opportunity to serve the local market is also a consideration. In larger markets, weekday programming can contribute to the operations of tournament-based destination and – in some cases – lead to operational sustainability. In this market, there is a limited local market in terms of size and participation. One way to overcome the challenge of the market size is to encompass existing programming within the new facilities through partnerships with public and/or private program providers.  Balance of Tournament vs. Local Programming: Although there will be limited instances in which local programming would compete for inventory of time and space, it should be considered that both facilities have a local service component. Because of that, the management group will have to be clear in scheduling and messaging to ensure that local users are aware of the tournament and event plans so that they do not expect to have access to facilities during times when they are being programmed for the purpose of creating a positive economic impact.

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James City County Aquatics Center (James City County, VA) Five Year Financial Forecast

Date: March 2014 Developed for: James City County Developed by: The Sports Facilities Advisory

Note: SFA has no responsibility to update this financial forecast for events and circumstances that occur after the date of these deliverables. The findings presented herein reflect analysis of primary and secondary sources of information. SFA utilized sources deemed to be reliable but cannot guarantee their accuracy. Moreover, estimates and analysis presented in this financial forecast are based on trends and assumptions, which usually result in differences between the projected results and actual results. Because events and circumstances frequently do not occur as expected, those differences may be material. Facility Program Indoor Building Dimensions Indoor Programming Product/Service Quantity Approx. SF each Total SF % of Total L (') W (') 50 Meter Competition Pool 1 168 75 12,600 12,600 25.9% Warm Up and Instruction Pool 1 75 46 3,450 3,450 7.1% Warm Up Area and Deck Space 1 15,000 15,000 30.8% Spectator Seating - 1500 Seats 1 160 35 5,600 5,600 11.5% Pool Mech. Room & Storage 1 100 15 1,500 1,500 3.1% Natatorium Mezzanine (Upper Level) 1 220 15 3,300 3,300 6.8% Closed Mezzanine (Upper Level) 1 100 17 1,700 1,700 3.5% Dry Land Training Room 1 40 30 1,200 1,200 2.5% Lobby/Welcome Area 1 25 20 500 500 1.0% Concessions & Seating Area 1 25 20 500 500 1.0% Pro Shop 1 15 10 150 150 0.3% Restrooms 2 25 20 500 1,000 2.1% Locker Rooms 2 30 30 900 1,800 3.7%

Admin/Flex Space Family Changing Rooms 2 8 8 64 128 0.3% Office Area 3 10 8 80 240 0.5% Required SF for Products and Services 48,668 100.0% Mechanical, Electrical, Storage, etc. 7.5% of P&S SF 3,650 Common Area, Stairs, Circulation, etc. 12.5% of P&S SF 6,084 Total Estimated Indoor Facility SF 58,402 Estimated Building Footprint 51,474 Building Acreage 1.18

Details Quantity Unit Cost/Unit Budgeted Cost % of Total Land Cost Land Acquisition AVERAGE: Land Cost 6.55 Acre $212,000 $1,389,434 7.9% Land Cost Total $1,389,434 7.9% Hard Costs Structure Cost Warm Shell - Block Construction with Corrosion Resistant Interior Finishes 58,402 SF $135 $7,884,216 44.6% Site Development ESTIMATE: Paving, Grading, Utilities, Landscaping, Pad, Parking Renovation 6.55 Acre $200,000 $1,310,787 7.4%

Contingency 10.00% $919,500 Hard Cost Total $10,114,503 57.2% Aquatic and Training Equipment Costs Aquatics Area 50 Meter Pool Including Deck, Blocks, Stanchions, Timing Systems, Equipment, Etc. 1 LS $2,000,000 $2,000,000 11.3% Shallow Instruction Pool 1 LS $500,000 $500,000 2.8% Rehabilitation Pool 0 LS $75,000 $0 0.0% Bulkhead Adjustable 1 LS $155,000 $155,000 0.9% Filtration System 1 LS $200,000 $200,000 1.1% Spectator Seating 1,500 Seats 1 LS $150,000 $150,000 0.8% Warm-Up Area Dry Land Training Buildout Equipment 1 LS $24,000 $24,000 0.1% Fitness/Training Area Flooring 1,200 SF $9 $10,800 0.1% Miscellaneous Misc. Pool Equipment Training & Safety Equipment 1 LS $50,000 $50,000 0.3% Tax & Shipping 8.00% $247,184 1.4% Contingency 10.00% $333,698 Aquatic and Training Equipment Cost Total $3,670,682 20.8% FOOD & BEVERAGE Equipment 1 LS $100,000 $100,000 0.6% Finish Out 1 LS $50,000 $50,000 0.3% FURNISHINGS Furnishings Offices, Meeting Rooms, Classrooms, Etc. 1 LS $30,000 $30,000 0.2% Hardware IT systems, Computers, Etc. 1 LS $20,000 $20,000 0.1% Software 1 LS $30,000 $30,000 0.2% Locker Rooms 1,800 SF $65 $117,000 0.7% MISCELLANEOUS Signage & Banners Interior and Exterior 1 LS $25,000 $25,000 0.1% Sound/Video Interior Sound/Video System 1 LS $75,000 $75,000 0.4% Maintenance Equipment 1 LS $10,000 $10,000 0.1% Tax & Shipping 8.00% $36,560 0.2% Contingency 10.00% $49,356 Furniture, Fixtures & Equipment Cost Total $542,916 3.1% Soft Costs Architecture, Engineering, Construction Management % of Structure, Sitework, and Pools 7.00% $883,015 5.0% Impact Fees Assumes no major responsibility to roadway improvements $75,000 0.4% Permits/Inspections 1.00% $126,145 0.7% Pre-Launch Professional Services Legal, Accounting, Bank, Consulting $125,000 0.7% Marketing Allowance Pre-Opening Marketing Budget $150,000 0.8% Event Business Development Fund $100,000 0.6% Pre-Opening Staff Budget Staffing Cost Pre-Grand Opening $103,794 0.6% Facility Development Consulting Fees TBD $225,000 1.3% Contingency 10.00% $178,795 1.0% Soft Cost Total $1,966,749 11.1% Total Construction & Start-up Costs $17,684,285 Use of Proceeds

SOURCES OF FUNDS Equity Financing 100% $17,684,285 Debt Financing 0% $0 Working Capital Reserve Owner Equity TBD Total Sources of Funds $17,684,285

USES OF FUNDS Land Cost $1,389,434 Hard Costs $10,114,503 Aquatic and Training Equipment Costs $3,670,682 FF&E Costs $542,916 Soft Costs $1,966,749 Working Capital Reserve TBD Total Uses of Funds $17,684,285 Total Aquatics Facility Revenue & Expenses

EBITDA ($634,590) ($599,651) ($537,573) ($529,262) ($500,826) ($2,801,902) % of Revenue -92% -78% -60% -56% -49% -65% Debt Service $0 $0 $0 $0 $0 $0

Total Net Income ($634,590) ($599,651) ($537,573) ($529,262) ($500,826) ($2,801,902)

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Alarm System Maintenance $2,500 $2,575 $2,652 $2,732 $2,814 Facility Cleaning/Janitorial Expense $0.50/SF $29,201 $30,077 $30,979 $31,909 $32,866 Facility/Medical Supplies $10,000 $10,300 $10,609 $10,927 $11,255 Grounds Maintenance Lawn and Snow Care $12,000 $12,360 $12,731 $13,113 $13,506 Maintenance & Repairs $0.75/SF $43,801 $45,115 $46,469 $47,863 $49,299 Pool Chemicals $40,000 $41,200 $42,436 $43,709 $45,020 Utility - Electricity Expense $8.00/SF $467,213 $481,229 $495,666 $510,536 $525,852 Utility - Water Expense $.65/SF $37,961 $39,100 $40,273 $41,481 $42,725 Total Facility Expense $642,676 $661,956 $681,815 $702,269 $723,337 Operating Expenses

Expense Mgmt. Assump Year 1 Year 2 Year 3 Year 4 Year 5 Accounting Fees $2,000 $2,060 $2,122 $2,185 $2,251 Bank Service Charges Misc. Banking Fees $1,500 $1,545 $1,591 $1,639 $1,688 Communications Phone/Cable $2,400 $2,472 $2,546 $2,623 $2,701 Consulting Fees TBD $30,000 $30,000 $30,000 $30,000 $30,000 Credit Card Expense 50% of Sales (3% fee) $10,346 $11,518 $13,344 $14,201 $15,431 Dues and Subscriptions Magazines/Publications $1,500 $1,545 $1,591 $1,639 $1,688 Employee Uniforms $3,500 $1,500 $1,545 $1,591 $1,639 First Aid Supplies $6,000 $4,000 $4,120 $4,244 $4,371 First Aid Training and Certifications $5,000 $5,150 $5,305 $5,464 $5,628 General Advertising $25,000 $25,750 $26,523 $27,318 $28,138 Event Business Development and Marketing $40,000 $41,200 $42,436 $43,709 $45,020 Insurance-Property $1200/month $14,400 $14,832 $15,277 $15,735 $16,207 Insurance-Liability $2000/month $24,000 $24,720 $25,462 $26,225 $27,012 Insurance-Workman's Comp $400/month $4,800 $4,944 $5,092 $5,245 $5,402 Interest Expense $0 $0 $0 $0 $0 Legal Fees $20,000 $20,600 $21,218 $21,855 $22,510 Licenses, Permits Food Licenses, etc. $2,500 $2,575 $2,652 $2,732 $2,814 Office Supplies office and cleaning $2,500 $2,575 $2,652 $2,732 $2,814 Photocopier Lease $2,500 $2,575 $2,652 $2,732 $2,814 Postage & Freight $1,000 $1,030 $1,061 $1,093 $1,126 Real Estate Tax $0 $0 $0 $0 $0 Rent- Building Lease $0 $0 $0 $0 $0 Software $8,700 $8,961 $9,230 $9,507 $9,792 Travel and Education $5,000 $5,150 $5,305 $5,464 $5,628 Total Operating Expenses $212,646 $214,702 $221,724 $227,932 $234,674 Management and Lifeguard Payroll Summary

Management Position Mgmt. Assump Year 1 Year 2 Year 3 Year 4 Year 5 General Manager $70,000 $71,400 $72,828 $74,285 $75,770 Lifeguards 150 hours/wk. at $13 $97,500 $100,425 $102,434 $104,482 $106,572 Admin Positions $20,000 $21,000 $22,050 $23,153 $24,310 Total Management Payroll $187,500 $192,825 $197,312 $201,919 $206,652 Total Payroll Summary Total Payroll Summary Mgmt. Assump Pre-Open Year 1 Year 2 Year 3 Year 4 Year 5 Mgmt General Manager 12 months prior $70,000 $70,000 $71,400 $72,828 $74,285 $75,770 Admin Lifeguards 1 month prior $8,125 $97,500 $100,425 $102,434 $104,482 $106,572 Admin Admin Positions 1 month prior $1,667 $20,000 $21,000 $22,050 $23,153 $24,310 Subtotal Facility Management Payroll $79,792 $187,500 $192,825 $197,312 $201,919 $206,652 Director Membership Director 3 months prior $8,363 $33,450 $33,795 $34,383 $34,603 $35,074 Director Meet Manager 3 months prior $871 $3,485 $4,493 $5,392 $6,052 $6,382 Director Youth Program Manager 3 months prior $824 $3,294 $3,623 $4,384 $4,604 $5,075 Director Birthday Manager 3 months prior $360 $1,080 $1,188 $1,437 $1,509 $1,664 Subtotal Program Management Allocations $10,417 $41,309 $43,099 $45,598 $46,767 $48,196 Staff Competition Staff 1 month prior $581 $6,970 $8,986 $10,785 $12,104 $12,765 Staff Birthday Party Staff 1 month prior $600 $7,200 $7,920 $8,712 $9,148 $9,605 Staff Youth Program Staff 1 month prior $412 $4,941 $5,435 $6,576 $6,905 $7,613 Staff Food & Beverage Staff 1 month prior $2,082 $24,981 $26,606 $28,351 $30,224 $32,236 Staff Retail Staff 1 month prior $475 $5,694 $5,979 $6,278 $6,592 $6,921 Subtotal Program Staff Allocations $4,149 $49,786 $54,926 $60,702 $64,972 $69,140 Instructors Swim Instructors Per Diem $13,959 $14,144 $17,114 $18,825 $20,755 Instructors Fitness Instructors Per Diem $9,999 $10,999 $13,309 $13,975 $15,407 Subtotal Instructors $0 $23,958 $25,143 $30,423 $32,800 $36,162 $94,358 $302,553 $315,993 $334,034 $346,458 $360,150 Health Insurance/Benefits 4 employees @ 500/month $24,000 $24,720 $25,462 $26,225 $27,012 Bonus Pool $6,897 $7,679 $8,896 $9,467 $10,287 Payroll Services $2,400 $2,472 $2,546 $2,623 $2,701 Payroll Taxes 10.00% of payroll (excl refs)$9,436 $30,255 $31,599 $33,403 $34,646 $36,015 Payroll Taxes/Benefits/Bonus Totals $9,436 $63,553 $66,470 $70,307 $72,961 $76,016

Total Payroll $103,794 $366,106 $382,463 $404,341 $419,419 $436,166 Appendix Membership and Public Swim Revenue & Expenses

Price per Session Number per Session Sellable Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sessions Annual Membership Youth Access Pass $60 $60 $66 $66 $69 74 82 86 90 94 1 $4,451 $4,896 $5,655 $5,938 $6,547 Adult Access Pass $215 $215 $237 $237 $248 554 610 640 672 706 1 $119,130 $131,043 $151,354 $158,922 $175,211 Senior Access Pass $175 $175 $193 $193 $202 147 162 170 179 188 1 $25,773 $28,351 $32,745 $34,382 $37,907 Day Pass Youth/Student $2 $2 $2 $2 $2 408 449 471 495 520 1 $816 $898 $1,037 $1,089 $1,200 Adult $6 $6 $7 $7 $7 3,048 3,352 3,520 3,696 3,881 1 $18,285 $20,114 $23,231 $24,393 $26,893 Senior $5 $5 $6 $6 $6 810 891 936 982 1,031 1 $4,050 $4,455 $5,146 $5,403 $5,957 Non-capacity growth rate 1.00 1.10 1.00 1.05 1.10 1.05 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 Area Revenue $ 172,505 $ 189,756 $ 219,168 $ 230,127 $ 253,715

Expense Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Membership Director $30,000 + 2% Gross $ 33,450 $ 33,795 $ 34,383 $ 34,603 $ 35,074 Advertising 5% of gross revenue $ 8,625 $ 9,488 $ 10,958 $ 11,506 $ 12,686 Membership Cards Cards + Printing Equipment: 1% of gross $ 1,725 $ 1,898 $ 2,192 $ 2,301 $ 2,537 Area Expense $ 43,800 $ 45,180 $ 47,533 $ 48,410 $ 50,297

Net Revenue $ 128,705 $ 144,575 $ 171,635 $ 181,716 $ 203,417 Swim Instruction Revenue & Expenses

Price Per Session (8) Number of Lessons Revenue Mgmt. Assump. Sellable Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sessions Group Lessons Infant Swim $55 $55 $61 $61 $64 52 57 62 69 72 1 $2,833 $3,117 $3,771 $4,148 $4,574 Youth Swim $70 $70 $77 $77 $81 631 694 764 840 882 1 $44,194 $48,614 $58,823 $64,705 $71,337 Private Lessons Youth $30 $30 $33 $33 $34 34 38 41 45 48 1 $1,016 $1,117 $1,352 $1,487 $1,640 Adult $30 $30 $33 $33 $34 114 125 138 152 159 1 $3,388 $3,726 $4,509 $4,960 $5,468 Non-capacity growth rate 1.00 1.10 1.00 1.05 1.10 1.10 1.10 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 Area Revenue $51,431 $56,574 $68,455 $75,301 $83,019

Expense Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Aquatics Instructors 25% Group Inst. Revenue, 50% Private Inst. Revenue $13,959 $14,144 $17,114 $18,825 $20,755 Advertising 3% of gross revenue (6% year one) $3,086 $1,131 $1,369 $1,506 $1,660 Equipment & Supplies 2% gross revenue $1,029 $1,059 $1,091 $1,124 $1,158 Area Expense $18,073 $16,335 $19,574 $21,455 $23,573

Net Revenue $33,358 $40,240 $48,881 $53,845 $59,446 Swim Competition Events Revenue & Expenses

Amount per Event Ave. Participants Sellable Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sessions Dual Meets Number of Swimmers 100 110 121 133 146 Gate Fees 2.0 Spectators/Swimmer $1 $1 $1 $1 $1 200 220 242 266 293 1 $200 $220 $242 $266 $293 Pool Rental Fees $/Meet $500 $500 $550 $550 $578 32 32 32 32 32 1 $16,000 $16,000 $17,600 $17,600 $18,480 Regional Meets - One Day Number of Swimmers 250 263 276 289 304 Gate Fees 2.0 Spectators/Swimmer $1 $1 $1 $1 $1 500 525 551 579 608 1 $500 $525 $551 $579 $608 Pool Rental Fees $2,750 $2,750 $3,025 $3,025 $3,176 2 2 2 2 2 1 $5,500 $5,500 $6,050 $6,050 $6,353 Conference Meets - Two Day Number of Swimmers 200 210 221 232 243 Gate Fees 2.0 Spectators/Swimmer $1 $1 $1 $1 $1 400 420 441 463 486 2 $800 $840 $882 $926 $972 Pool Rental Fees $2,750 $2,750 $3,025 $3,025 $3,176 1 1 1 1 1 2 $5,500 $5,500 $6,050 $6,050 $6,353 USS Meets - One Day Number of Swimmers 450 495 545 599 659 Gate Fees 2.0 Spectators/Swimmer $1 $1 $1 $1 $1 900 990 1089 1198 1318 1 $900 $990 $1,089 $1,198 $1,318 Pool Rental Fees $2,750 $2,750 $3,025 $3,025 $3,176 6 5 4 4 4 1 $16,500 $13,750 $12,100 $12,100 $12,705 USS Meets - Two Day Number of Swimmers 450 495 545 599 659 Gate Fees 2.0 Spectators/Swimmer $1 $1 $1 $1 $1 900 990 1089 1198 1318 2 $1,800 $1,980 $2,178 $2,396 $2,635 Pool Rental Fees $2,750 $2,750 $3,025 $3,025 $3,176 2 5 6 8 8 2 $11,000 $27,500 $36,300 $48,400 $50,820 Elite Meets Number of Swimmers 1100 1210 1331 1464 1611 Gate Fees 2.5 Spectators/Swimmer $1 $1 $1 $1 $1 2750 3025 3328 3660 4026 2 $5,500 $6,050 $6,655 $7,321 $8,053 Pool Rental Fees $2,750 $2,750 $3,025 $3,025 $3,176 1 2 3 3 3 2 $5,500 $11,000 $18,150 $18,150 $19,058 Non-capacity growth rate 1.00 1.10 1.00 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 Area Revenue $69,700 $89,855 $107,847 $121,035 $127,646

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Meet Manager 5% gross revenue $3,485 $4,493 $5,392 $6,052 $6,382 Event Staff 10% gross revenue $6,970 $8,986 $10,785 $12,104 $12,765 Official/Coach/Vol. Hospitality 5% gross revenue $3,485 $4,493 $5,392 $6,052 $6,382 Area Expense $13,940 $17,971 $21,569 $24,207 $25,529

Net Revenue $55,760 $71,884 $86,278 $96,828 $102,117 Water Exercise Revenue & Expenses

Price per Sale Sales per Month Sellable Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sessions Aquatics Training Group Training Class $/Class $5 $5 $6 $6 $6 228 251 276 290 304 12 $13,693 $15,063 $18,226 $19,137 $21,099 Group Training Pack $/10 Classes $40 $40 $44 $44 $46 55 60 66 70 73 12 $26,304 $28,934 $35,011 $36,761 $40,529 Non-capacity growth rate 1.00 1.10 1.00 1.05 1.10 1.10 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 Area Revenue $39,997 $43,997 $53,237 $55,898 $61,628

Expense Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Instructors 25% Gross Revenue $9,999 $10,999 $13,309 $13,975 $15,407 Advertising 2% Gross Revenue (5% year 1) $2,000 $880 $1,065 $1,118 $1,233 Equipment and Supplies 2% area revenue $800 $880 $1,065 $1,118 $1,233 Discounts 5% Gross Revenue $2,000 $2,200 $2,662 $2,795 $3,081

Area Expense $14,799 $14,959 $18,100 $19,005 $20,954

Net Revenue $25,198 $29,038 $35,136 $36,893 $40,674 Pool Rental Revenue & Expenses

Price per Session (Hour) Number per Session Sellable Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sessions Pool Rentals - High Schools Sept. - Oct. Rentals $/Hour $50 $50 $55 $55 $58 100 110 121 127 133 1 $5,000 $5,500 $6,655 $6,988 $7,704 Nov.- Dec. Rentals $/Hour $50 $50 $55 $55 $58 250 275 303 318 334 1 $12,500 $13,750 $16,638 $17,469 $19,260 Jan. - Feb. Rentals $/Hour $50 $50 $55 $55 $58 400 440 484 508 534 1 $20,000 $22,000 $26,620 $27,951 $30,816 Mar. - Apr. Rentals $/Hour $50 $50 $55 $55 $58 0 - - - - 1 $0 $0 $0 $0 $0 May - June Rentals $/Hour $50 $50 $55 $55 $58 0 - - - - 1 $0 $0 $0 $0 $0 July - Aug. Rentals $/Hour $50 $50 $55 $55 $58 0 - - - - 1 $0 $0 $0 $0 $0 Pool Rentals - Other Sept. - Oct. Rentals $/Hour/Lane $12 $12 $13 $13 $14 2240 2,464 2,710 2,846 2,988 1 $26,880 $29,568 $35,777 $37,566 $41,417 Nov.- Dec. Rentals $/Hour/Lane $12 $12 $13 $13 $14 1050 1,155 1,271 1,334 1,401 1 $12,600 $13,860 $16,771 $17,609 $19,414 Jan. - Feb. Rentals $/Hour/Lane $12 $12 $13 $13 $14 1680 1,848 2,033 2,134 2,241 1 $20,160 $22,176 $26,833 $28,175 $31,063 Mar. - Apr. Rentals $/Hour/Lane $12 $12 $13 $13 $14 2240 2,464 2,710 2,846 2,988 1 $26,880 $29,568 $35,777 $37,566 $41,417 May - June Rentals $/Hour/Lane $12 $12 $13 $13 $14 2240 2,464 2,710 2,846 2,988 1 $26,880 $29,568 $35,777 $37,566 $41,417 July - Aug. Rentals $/Hour/Lane $12 $12 $13 $13 $14 1440 1,584 1,742 1,830 1,921 1 $17,280 $19,008 $23,000 $24,150 $26,625 Dry Land Training Area $/Hour $35 $35 $39 $39 $40 309 340 374 393 412 1 $10,815 $11,897 $14,395 $15,115 $16,664 Non-capacity growth rate 1.00 1.10 1.00 1.05 1.10 1.10 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 Area Revenue $141,495 $155,645 $188,330 $197,746 $218,015

Expense Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Maintenance/Supervision 5% gross revenue $7,075 $7,782 $9,416 $9,887 $10,901

Area Expense $7,075 $7,782 $9,416 $9,887 $10,901

Net Revenue $134,420 $147,862 $178,913 $187,859 $207,115 Youth Programming Revenue & Expenses

Price per Session Number per Session Sellable Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sessions Half-Day Camp $/week $90 $90 $99 $99 $104 6 7 7 8 8 10 $5,400 $5,940 $7,187 $7,547 $8,320 Full Day Camp $/week *1 $150 $150 $165 $165 $173 12 13 15 15 16 10 $18,000 $19,800 $23,958 $25,156 $27,734 Single Day Camps $/day $30 $30 $33 $33 $35 12 13 15 15 16 12 $4,320 $4,752 $5,750 $6,037 $6,656 Camp Day-Care $/day $10 $10 $11 $11 $12 52 57 63 66 70 10 $5,220 $5,742 $6,948 $7,295 $8,043 Non-capacity growth rate 1.00 1.10 1.00 1.05 1.10 1.10 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 Area Revenue $32,940 $36,234 $43,843 $46,035 $50,754

Expense Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Youth Programming Management 10% Gross Revenue $3,294 $3,623 $4,384 $4,604 $5,075 Camp Payroll 15% Gross Revenue $4,941 $5,435 $6,576 $6,905 $7,613 Advertising 5% Gross Revenue $1,647 $1,812 $2,192 $2,302 $2,538 Equipment & Consumables 3% Gross Revenue $988 $1,087 $1,315 $1,381 $1,523 Camp Lunch 2.5% Gross Revenue $824 $906 $1,096 $1,151 $1,269 T-shirts $4 per shirt $720 $792 $871 $915 $960

Area Expense $12,414 $13,655 $16,436 $17,257 $18,978

Net Revenue $20,526 $22,579 $27,408 $28,778 $31,776 Birthday Parties Rental Revenue & Expenses

Price per Session Number per Session (Month) Sellable Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sessions Aquatics Birthdays $/Party (avg 15 kids) *1 $225 $225 $248 $248 $260 4 4 5 5 5 12 $10,800 $11,880 $14,375 $15,094 $16,641 Non-capacity growth rate 1.00 1.10 1.00 1.05 1.10 1.10 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 Area Revenue $10,800 $11,880 $14,375 $15,094 $16,641

Expense Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Birthday Party Management 10% Gross Revenue $1,080 $1,188 $1,437 $1,509 $1,664 Birthday Party Staff 2 hrs/party plus set up and clean, 1 employee/party, $10/hr/employee $7,200 $7,920 $8,712 $9,148 $9,605 Birthday Party Supplies 4% COGS $432 $475 $575 $604 $666 Birthday Party Food 15% COGS $1,620 $1,782 $2,156 $2,264 $2,496 Area Expense $10,332 $11,365 $12,881 $13,525 $14,431

Net Revenue $468 $515 $1,494 $1,569 $2,210 Food & Beverage/Retail Revenue & Expenses

Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Event Concessions Sales $2.50 Per Cap $35,000 $38,256 $41,826 $45,740 $50,032 Non-Event Concessions Sales $64,923 $68,169 $71,577 $75,156 $78,914 Vending Income 20% Concession sales $12,985 $17,042 $17,894 $18,789 $19,728 Retail Income $37,961 $39,859 $41,852 $43,945 $46,142 Area Revenue $150,868 $163,326 $173,149 $183,629 $194,816

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Concessions- Food 30% Concession and Vending Revenue $33,872 $37,040 $39,389 $41,905 $44,602 Concessions Non-food 10% Concession Revenue $9,992 $10,642 $11,340 $12,090 $12,895 Concessions Wages 25% Concession Revenue $24,981 $26,606 $28,351 $30,224 $32,236 Retail COGS 50% Retail Revenue $18,981 $19,930 $20,926 $21,972 $23,071 Retail Staff 15% Retail Revenue $5,694 $5,979 $6,278 $6,592 $6,921 Area Expense $93,520 $100,197 $106,284 $112,783 $119,725

Net Revenue $57,348 $63,129 $66,865 $70,846 $75,090 Secondary Revenue Areas

Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Advertisement/Sponsorship Income $20,000 $20,600 $21,218 $21,855 $22,510 Area Revenue $20,000 $20,600 $21,218 $21,855 $22,510

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Advertisement hard cost Printing of Ad/Sponsors within facility(10% of Ad Inc.) $2,000 $2,060 $2,122 $2,185 $2,251 Sponsorship Commissions $2,000 $2,060 $2,122 $2,185 $2,251 Area Expense $4,000 $4,120 $4,244 $4,371 $4,502

Net Revenue $16,000 $16,480 $16,974 $17,484 $18,008 James City County Sports Facility (Williamsburg, VA) Five-Year Operating Pro Forma

Date: March 2014 Developed for: James City County

Flex Space Flex Classroom Space (with two room 1 60 25 1,500 1,500 1.8% dividers) Office Area 1 40 40 1,600 1,600 1.9% Kitchen 1 30 30 900 900 1.1% Café Seating 1 40 20 800 800 0.9% Restrooms 4 30 25 750 3,000 3.6% Mezzanine (Upstairs) 1 12 320 3,840 3,840 4.5% Hospitality Room (Upstairs) 1 25 20 500 500 0.6% Total Flex Space Sq. Ft 14,105 16.7% Required SF for Products and Services 73,445 87.0% Mechanical, Electrical, Storage, etc. 5% of P&S SF 3,672 4.3% Common Area, Stairs, Circulation, etc. 10% of P&S SF 7,345 8.7% Total Estimated Indoor Facility SF 84,462 100% Estimated Building Footprint 80,122 Total Building Acreage 1.9

Indoor Facility Details Quantity Unit Cost/Unit Budgeted Cost % of Total Building & Land Cost RE Acquisition AVERAGE: Land Cost 5.91 Acre $212,000 $1,253,741 10.1% Land Cost Total $1,253,741 10.1% Hard Costs Structure Cost Warm Shell 84,462 SF $70 $5,912,323 47.5% Site Development ESTIMATE: Paving, Grading, Utilities, Landscaping, Pad, Parking Renovation 5.91 Acre $200,000 $1,182,775 9.5%

Contingency 10.00% $354,755 2.9% Hard Cost Total $7,449,852 59.9% Field and Sport Equipment Cost Court Area Wood Court Flooring 59,340 SF $9.25 $548,895 4.4% Basketball Net & Stanchion System Mechanical Roll-down system 6 Ea. $5,000 $30,000 0.2% Volleyball Net System Electronic System (Nets, Poles, Padding, etc.) 12 Ea. $10,000 $120,000 1.0% Scoreboards With Controllers 6 Ea. $10,000 $60,000 0.5% Benches (Participants) 24 Ea. $400 $9,600 0.1% Bleachers (Spectators) Tip and Roll 24 Ea. $2,500 $60,000 0.5% Curtains (Court) Mechanical Roll Down 5 Ea. $13,500 $67,500 0.5% Telescopic Bleachers 1,200 Seats (15 Rows) 1 LS $120,000 $120,000 1.0% Miscellaneous Rock Wall 1 Ea. $125,000 $125,000 1.0% Athletic Equipment Balls, Cones, & Training Equip. 1 LS $10,000 $10,000 0.1% Tax and Shipping 9.00% $103,590 0.8% Contingency 10.00% $125,458 1.0% Field and Sport Equipment Cost Total $1,380,043 11.1% Furniture, Fixtures and Equipment Cost FOOD & BEVERAGE Equipment Full Cooking Kitchen for Tournament F&B 1 LS $125,000 $125,000 1.0% Finish Out 1 LS $50,000 $50,000 0.4% FURNISHINGS Furnishings Offices, Meeting Rooms, Classrooms, Etc 1 LS $60,000 $60,000 0.5% Hardware IT systems, Computers, Etc 1 LS $40,000 $40,000 0.3% Software 1 LS $30,000 $30,000 0.2% MISCELLANEOUS Signage & Banners Interior and Exterior 1 LS $60,000 $60,000 0.5% Maintenance Equipment 1 LS $10,000 $10,000 0.1% Tax & Shipping 9.00% $33,750 0.3% Contingency 10.00% $40,875 0.3% Furniture, Fixtures and Equipment Cost Total $449,625 3.6% Soft Costs Construction Architecture and Engineering % of Structure and Site work 4.0% $421,330 3.4% Construction Management Fee 2.0% $210,665 1.7% Design-Build Fee 0.0% $0 0.0% Impact Fees $25,000 0.2% Performance Bond 0.00% $0 0.0% Permits/Inspections 0.50% $52,666 0.4% Soft Costs Operations Pre-Launch Professional Services Legal, Accounting, Bank, Consulting $100,000 0.8% Permits and Extensions $30,000 0.2% Presentation Materials Renderings, etc. $10,000 0.1% Interest on Construction Loan 100% Equity $0 0.0% Facility Development Consulting Fees Pre-opening consulting fee ($14,500/month) $261,000 2.1% Consultant Travel $3,000/month $54,000 0.4% Marketing Allowance Pre-Opening Marketing Budget $200,000 1.6% Event Business Development $100,000 0.8% Pre-Opening Staff Budget Staffing Cost Pre-Grand Opening $267,129 2.1% Contingency 10.00% $173,179 1.4% Soft Cost Total $1,904,970 15.3% Total Construction Costs $12,438,232 100.0% Cost Per Square Foot $147.26 Use of Proceeds

SOURCES OF FUNDS Equity Financing 100% $12,438,232 Debt Financing 0% $0 Working Capital Reserve Owner Equity TBD Total Sources of Funds $12,438,232

USES OF FUNDS Land Cost $1,253,741 Hard Cost $7,449,852 Field and Sport Equipment Cost $1,829,668 Soft Cost $1,904,970 Working Capital Reserve TBD Total Uses of Funds $12,438,232 Total Court Facility Revenue & Expenses

Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Cumulative Tournament Revenue In-House Basketball Tournaments $0 $24,075 $52,197 $118,908 $122,472 $317,652 In-House Overflow Basketball Tournaments $0 $0 $0 $6,695 $38,724 $45,419 Rental Basketball Tournaments $81,702 $85,188 $69,897 $69,027 $97,443 $403,257 Rental Overflow Basketball Tournaments $10,190 $16,744 $17,444 $28,952 $41,285 $114,615 In-House Volleyball Tournaments $0 $0 $58,013 $114,983 $191,079 $364,074 In-House Overflow Volleyball Tournaments $0 $0 $0 $0 $19,062 $19,062 Rental Volleyball Tournaments $79,290 $79,425 $83,160 $95,040 $83,606 $420,521 Rental Overflow Volleyball Tournaments $0 $5,550 $11,550 $17,325 $23,595 $58,020 Indoor Rental Events $12,750 $12,750 $17,325 $20,625 $25,121 $88,571 Hotel Rebates $7,789 $13,069 $23,139 $47,725 $63,521 $155,243 Secondary Rev. Areas $75,000 $90,000 $94,500 $99,225 $104,186 $462,911 Food & Beverage $149,920 $205,600 $246,500 $381,240 $470,860 $1,454,120 Retail $9,342 $16,670 $32,776 $56,962 $74,220 $189,970 Local Usage Revenue IAF-Memberships $12,574 $15,718 $19,883 $20,877 $23,017 $92,070 IAF-Local Aquatics $0 $0 $0 $0 $0 $0 IAF-Basketball $69,687 $87,109 $110,193 $115,703 $127,562 $510,254 IAF-Volleyball $20,262 $25,327 $32,039 $33,640 $37,089 $148,356 IAF-Court Rental $12,650 $13,915 $16,072 $16,875 $17,719 $77,231 IAF-Rock Wall $39,800 $45,770 $55,382 $58,151 $64,111 $263,214 IAF-Birthday Parties $18,000 $22,500 $28,463 $29,886 $32,949 $131,797 IAF-Corporate and Group Events $11,600 $14,500 $19,140 $21,054 $24,317 $90,611 IAF-Youth Programs $43,600 $52,320 $66,185 $69,494 $76,617 $308,216 IAF-Food & Beverage $69,681 $73,165 $76,823 $80,664 $84,698 $385,031 Total Revenue $723,837 $899,395 $1,130,679 $1,503,051 $1,843,254 $6,100,216

Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Cumulative Tournament Expenses In-House Basketball Tournaments $0 $13,208 $25,020 $54,659 $57,154 $150,040 In-House Overflow Basketball Tournaments $0 $0 $0 $5,310 $30,396 $35,705 Rental Basketball Tournaments $18,250 $18,599 $14,910 $14,823 $20,544 $87,126 Rental Overflow Basketball Tournaments $5,979 $10,114 $10,184 $16,295 $22,489 $65,062 In-House Volleyball Tournaments $0 $0 $31,211 $63,044 $106,010 $200,266 In-House Overflow Volleyball Tournaments $0 $0 $0 $0 $14,054 $14,054 Rental Volleyball Tournaments $7,929 $7,943 $8,316 $9,504 $8,361 $42,052 Rental Overflow Volleyball Tournaments $0 $3,555 $7,155 $10,733 $14,360 $35,802 Indoor Rental Events $1,275 $1,275 $1,733 $2,063 $2,512 $8,857 Hotel Rebates $0 $0 $0 $0 $0 $0 Secondary Rev. Areas $15,000 $18,000 $18,900 $19,845 $20,837 $92,582 Food & Beverage $97,448 $133,640 $160,225 $247,806 $306,059 $945,178 Retail $6,539 $11,669 $22,943 $39,873 $51,954 $132,979 Local Usage Expenses IAF-Memberships $629 $786 $994 $1,044 $1,151 $4,604 IAF-Basketball $33,119 $36,521 $43,246 $45,408 $48,878 $207,172 IAF-Volleyball $8,579 $9,305 $11,106 $11,662 $12,620 $53,271 IAF-Court Rental $633 $696 $804 $844 $886 $3,862 IAF-Rock Wall $16,668 $17,337 $20,705 $21,740 $23,818 $100,269 IAF-Birthday Parties $7,380 $9,225 $11,359 $11,927 $12,978 $52,870 IAF-Corporate and Group Events $4,640 $5,545 $6,973 $7,584 $8,601 $33,342 IAF-Youth Programs $11,838 $14,206 $17,871 $18,764 $20,633 $83,311 IAF-Food & Beverage $46,560 $48,888 $51,332 $53,898 $56,593 $257,271 Total Cost of Goods Sold $282,465 $360,510 $464,986 $656,825 $840,887 $2,605,673

Gross Margin $441,372 $538,885 $665,693 $846,226 $1,002,367 $3,494,543 % of Revenue 61% 60% 59% 56% 54% 57%

EBITDA ($738,557) ($676,421) ($593,567) ($488,765) ($402,967) ($2,900,277) % of Revenue -102% -75% -52% -33% -22% -48% Debt Service $0 $0 $0 $0 $0 $0

Total Net Income ($738,557) ($676,421) ($593,567) ($488,765) ($402,967) ($2,900,277)

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Alarm System Maintenance $5,000 $5,150 $5,305 $5,464 $5,628 Facility Maintenance & Cleaning Expense $0.75/SF $63,346 $65,247 $67,204 $69,220 $71,297 Facility/Medical Supplies $10,000 $7,500 $7,725 $7,957 $8,195 Grounds Maintenance $1000/Mo $12,000 $12,360 $12,731 $13,113 $13,506 Maint. & Repairs $.25/SF $21,115 $21,749 $22,401 $23,073 $23,766 Utility Expense $1.50/SF $126,693 $130,493 $134,408 $138,440 $142,594 Total Indoor Facility Expense $238,154 $242,499 $249,774 $257,267 $264,985 Total Facility Expense $238,154 $242,499 $249,774 $257,267 $264,985 Operating Expenses

Expense Mgmt. Assump Year 1 Year 2 Year 3 Year 4 Year 5 Accounting Fees $10,000 $10,300 $10,609 $10,927 $11,255 Bank Service Charges Misc Banking Fees $2,400 $2,472 $2,546 $2,623 $2,701 Communications Phone/Cable $6,000 $6,180 $6,365 $6,556 $6,753 Consulting Fees Full-Time Management $174,000 $162,000 $144,000 $138,000 $126,000 Consultant Travel $18,000 $12,000 $8,000 $8,240 $8,487 Credit Card Expense 50% of Sales (3% fee) $10,858 $13,491 $16,960 $22,546 $27,649 Dues and Subscriptions Magazines/Publications $500 $515 $530 $546 $563 Employee Uniforms $5,000 $3,000 $3,090 $3,183 $3,278 Exchange Expense $0 $0 $0 $0 $0 General Advertising $60,000 $61,800 $63,654 $65,564 $67,531 Event Business Development and Marketing $100,000 $125,000 $150,000 $175,000 $200,000 Insurance-Property $1500/month $18,000 $18,540 $19,096 $19,669 $20,259 Insurance-Liability $2000/month $24,000 $24,720 $25,462 $26,225 $27,012 Insurance-Workman's Comp $1000/month $12,000 $12,360 $12,731 $13,113 $13,506 Interest Expense $0 $0 $0 $0 $0 Legal Fees $5,000 $5,150 $5,305 $5,464 $5,628 Licenses, Permits Food Licenses, etc $5,000 $5,150 $5,305 $5,464 $5,628 Office Supplies Office and cleaning $8,000 $8,240 $8,487 $8,742 $9,004 Photocopier Lease $4,800 $4,944 $5,092 $5,245 $5,402 Postage & Freight $4,000 $4,120 $4,244 $4,371 $4,502 Real Estate Tax $0 $0 $0 $0 $0 Rent- Building Lease $0 $0 $0 $0 $0 Software- Facility Management Online Scheduling Software $19,200 $19,776 $20,369 $20,980 $21,610 Software- Office $5,000 $5,150 $5,305 $5,464 $5,628 Travel and Education $7,500 $7,725 $7,957 $8,195 $8,441 Total Operating Expenses $499,258 $512,633 $525,106 $556,116 $580,837 Management Payroll Summary

Management Position Mgmt. Assump Year 1 Year 2 Year 3 Year 4 Year 5 General Manager/CEO $75,000 $76,500 $78,030 $79,591 $81,182 Director of Operations $60,000 $61,200 $62,424 $63,672 $64,946 Marketing & Business Development Director $55,000 $56,100 $57,222 $58,366 $59,534 Facility Manager $35,000 $35,700 $36,414 $37,142 $37,885 Office Manager/Bookkeeper $40,000 $40,800 $41,616 $42,448 $43,297 Event Sales Director 10% of Tournament Revenue $18,393 $22,373 $30,959 $47,155 $64,239 Facility Admin 6000 hours at $10 (120/week) $60,000 $61,200 $62,424 $63,672 $64,946 Total Management Payroll $343,393 $353,873 $369,089 $392,048 $416,029 Total Payroll Summary

Total Payroll Summary Mgmt. Assump Pre-Open Year 1 Year 2 Year 3 Year 4 Year 5 Mgmt General Manager/CEO 12 months prior $75,000 $75,000 $76,500 $78,030 $79,591 $81,182 Mgmt Director of Operations 10 months prior $50,000 $60,000 $61,200 $62,424 $63,672 $64,946 Mgmt Marketing & Business Development Director 12 months prior $55,000 $55,000 $56,100 $57,222 $58,366 $59,534 Mgmt Facility Manager 4 months prior $11,667 $35,000 $35,700 $36,414 $37,142 $37,885 Mgmt Office Manager/Bookkeeper 10 months prior $33,333 $40,000 $40,800 $41,616 $42,448 $43,297 Mgmt Event Sales Director 12 months prior $18,393 $18,393 $22,373 $30,959 $47,155 $64,239 Mgmt Facility Admin 1 months prior $5,000 $60,000 $61,200 $62,424 $63,672 $64,946 Subtotal Management Payroll $248,393 $343,393 $353,873 $369,089 $392,048 $416,029 Director Basketball Tournament Director $0 $0 $1,800 $3,300 $7,568 $10,072 Director Volleyball Tournament Director $0 $0 $0 $4,620 $9,372 $17,464 Director IAF-Basketball Management Allotment 3 months prior $1,742 $6,969 $7,317 $7,683 $8,067 $8,471 Director IAF-Volleyball Management Allotment 3 months prior $507 $2,026 $2,127 $2,234 $2,346 $2,463 Director IAF-Adventure Area Management Allotment 3 months prior $995 $3,980 $4,577 $5,538 $5,815 $6,411 Director IAF-Birthday Party Management Allotment 3 months prior $450 $1,800 $2,250 $2,846 $2,989 $3,295 Director IAF-Corporate & Group Events Management Allotment3 months prior $290 $1,160 $1,450 $1,914 $2,105 $2,432 Director IAF-Youth Programming Management Allotment 3 months prior $1,090 $4,360 $5,232 $6,618 $6,949 $7,662 Subtotal Program Management $5,074 $20,295 $24,754 $34,754 $45,211 $58,268 Staff Basketball Tournament Staff 1 month prior $0 $0 $2,700 $4,950 $11,352 $15,107 Staff Basketball Rental Tournament Staff 1 month prior $766 $9,189 $10,193 $8,734 $9,798 $13,873 Staff Scorekeepers/Court Supervisor 1 month prior $920 $11,040 $11,520 $9,360 $10,320 $14,160 Staff Volleyball Tournament Staff 1 month prior $0 $0 $0 $6,930 $14,058 $26,195 Staff Volleyball Rental Tournament Staff 1 month prior $661 $7,929 $8,498 $9,471 $11,237 $10,720 Staff Indoor Rental Event Staff 1 month prior $106 $1,275 $1,275 $1,733 $2,063 $2,512 Staff Concessions Staff 1 month prior $3,123 $37,480 $51,400 $61,625 $95,310 $117,715 Staff Retail Staff 1 month prior $117 $1,401 $2,501 $4,916 $8,544 $11,133 Staff IAF-Membership Staff 1 month prior $52 $629 $786 $994 $1,044 $1,151 Staff IAF-Basketball Staff 1 month prior $290 $3,484 $4,355 $5,510 $5,785 $6,378 Staff IAF-Volleyball Staff 1 month prior $84 $1,013 $1,266 $1,602 $1,682 $1,854 Staff IAF-Court Rental Staff 1 month prior $53 $633 $696 $804 $844 $886 Staff IAF-Rock Wall Staff 1 month prior $166 $1,990 $2,289 $2,769 $2,908 $3,206 Staff IAF-Birthday Party Staff 1 month prior $180 $2,160 $2,700 $3,105 $3,260 $3,423 Staff IAF-Youth Programming Staff 1 month prior $545 $6,540 $7,848 $9,928 $10,424 $11,493 Staff IAF-Concessions Staff 1 month prior $1,320 $15,837 $16,628 $17,460 $18,333 $19,249 Staff Maintenance Staff 1 month prior $5,279 $63,346 $65,247 $67,204 $69,220 $71,297 Subtotal Sport Admin Staff $13,662 $163,946 $189,901 $217,094 $276,181 $330,353 Instructors Basketball Instructors Per Diem $4,007 $5,009 $6,336 $6,653 $7,334 Volleyball Instructors Per Diem $1,465 $1,832 $2,317 $2,433 $2,682 Instructors Corporate & Group Events Instructors Per Diem $1,740 $2,175 $2,871 $3,158 $3,648 Subtotal Instructors (COGS) $7,212 $9,015 $11,524 $12,244 $13,664 Referees Tournament Referees and Officials Per Diem $0 $6,300 $25,410 $54,604 $87,641 Referees Basketball Officials Per Diem $9,600 $12,000 $13,800 $14,490 $15,215 Referees Volleyball Officials Per Diem $1,440 $1,800 $2,070 $2,174 $2,282 Subtotal Referee/Trainers (COGS) $11,040 $20,100 $41,280 $71,268 $105,138 Payroll Subtotal $267,129 $545,886 $597,643 $673,740 $796,951 $923,452 Health Insurance/Benefits 6 employees @ 500/month $36,000 $37,080 $38,192 $39,338 $40,518 Management Bonus Pool 1% of Gross Sales $7,238 $8,994 $11,307 $15,031 $18,433 Payroll Services $2,400 $2,472 $2,546 $2,623 $2,701 Payroll Taxes 10.00% of payroll (excl refs) $53,485 $57,754 $63,246 $72,568 $81,831 Payroll Taxes/Benefits/Bonus Totals $99,123 $106,300 $115,291 $129,560 $143,484 Total Payroll $645,009 $703,944 $789,032 $926,511 $1,066,936 Appendix In-House Basketball Tournament Revenue & Expenses

Amount per Activity Number of Participants per Year Ave. Revenue Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Participants Small Tournament - 3 Courts, 2 Days Entry Fees 10 players per team $250 $250 $275 $275 $289 0 1 1 0 0 24 $0 $6,000 $6,600 $0 $0 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $3 $3 $3 $3 $3 0 1 1 0 0 90 $0 $270 $270 $0 $0 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $5 $5 $5 $5 $5 0 1 1 0 0 270 $0 $1,350 $1,350 $0 $0 Medium Tournament - 6 Courts, 2 Days Entry Fees 10 players per team $250 $250 $275 $275 $289 0 1 2 3 3 48 $0 $12,000 $26,400 $39,600 $41,580 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $6 $6 $6 $6 $6 0 1 2 3 3 180 $0 $1,080 $2,160 $3,240 $3,240 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $10 $10 $10 $10 $10 0 1 2 3 3 540 $0 $5,400 $10,800 $16,200 $16,200 Large Tournament - 6 Courts, 3 Days Entry Fees 12 players per team $300 $0 $0 $0 $0 0 0 1 2 2 48 $0 $0 $0 $0 $0 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $6 $6 $6 $6 $6 0 0 1 2 2 216 $0 $0 $1,296 $2,592 $2,592 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $15 $15 $15 $15 $15 0 0 1 2 2 648 $0 $0 $9,720 $19,440 $19,440 Extra Large Tournament - 6 Courts, 4 Days *1 Entry Fees 12 players per team $300 $300 $330 $330 $347 0 0 0 1 1 96 $0 $0 $0 $31,680 $33,264 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $6 $6 $6 $6 $6 0 0 0 1 1 432 $0 $0 $0 $2,592 $2,592 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $10 $15 $15 $15 $15 0 0 0 1 1 1296 $0 $0 $0 $19,440 $19,440 Child Gate Fee Discounts 25% Reduction of Revenue $0 ($2,025) ($6,399) ($15,876) ($15,876) Non-capacity growth rate 1.00 1.10 1.00 1.05 0 2 4 6 6 Capacity growth rate 1.10 1.10 1.10 1.10 Area Revenue $0 $24,075 $52,197 $118,908 $122,472

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Tournament Director 10% Entry Fees $0 $1,800 $3,300 $7,128 $7,484 Tournament Staff 15% Entry Fees $0 $2,700 $4,950 $10,692 $11,227 Official Fees 35% Entry Fees $0 $6,300 $11,550 $24,948 $26,195 Equip./Supplies 5% Gross Revenue $0 $1,204 $2,610 $5,945 $6,124 Awards 5% Gross Revenue $0 $1,204 $2,610 $5,945 $6,124 Area Expense $0 $13,208 $25,020 $54,659 $57,154

Net Revenue $0 $10,868 $27,177 $64,249 $65,318

Notes *1 Extra Large Tournaments have the same structure as medium tournaments but run for 4 days and include the use of 2 additional courts at offsite locations In-House Overflow Basketball Tournament Revenue & Expenses

Amount per Activity Number of Participants per Year Ave. Revenue Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Participants Overflow Tournament - 2 Courts, 2 Days Entry Fees 10 players per team $250 $250 $275 $275 $289 0 0 0 1 2 16 $0 $0 $0 $4,400 $9,240 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $6 $6 $6 $6 $6 0 0 0 1 2 60 $0 $0 $0 $360 $720 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $10 $15 $15 $15 $15 0 0 0 1 2 180 $0 $0 $0 $2,700 $5,400 Overflow Tournament - 2 Courts, 3 Days Entry Fees 12 players per team $300 $300 $330 $330 $347 0 0 0 0 1 16 $0 $0 $0 $0 $5,544 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $6 $6 $6 $6 $6 0 0 0 0 1 72 $0 $0 $0 $0 $432 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $15 $15 $15 $15 $15 0 0 0 0 1 216 $0 $0 $0 $0 $3,240 Overflow Tournament - 2 Courts, 4 Days Entry Fees 12 players per team $300 $300 $330 $330 $347 0 0 0 0 1 32 $0 $0 $0 $0 $11,088 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $6 $6 $6 $6 $6 0 0 0 0 1 144 $0 $0 $0 $0 $864 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $10 $15 $15 $15 $15 0 0 0 0 1 432 $0 $0 $0 $0 $6,480 Child Gate Fee Discounts 25% Reduction of Revenue $0 $0 $0 ($765) ($4,284) Non-capacity growth rate 1.00 1.10 1.00 1.05 0 0 0 1 4 Capacity growth rate 1.10 1.10 1.10 1.10 Area Revenue $0 $0 $0 $6,695 $38,724

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Facility Rental $50/hr $0 $0 $0 $2,000 $11,000 Tournament Director 10% Entry Fees $0 $0 $0 $440 $2,587 Tournament Staff 15% Entry Fees $0 $0 $0 $660 $3,881 Official Fees 35% Entry Fees $0 $0 $0 $1,540 $9,055 Equip./Supplies 5% Gross Revenue $0 $0 $0 $335 $1,936 Awards 5% Gross Revenue $0 $0 $0 $335 $1,936 Area Expense $0 $0 $0 $5,310 $30,396

Net Revenue $0 $0 $0 $1,386 $8,328 Rental Basketball Tournament Revenue & Expenses

Amount per Activity Number of Events per Year Ave. Revenue Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Participants Small Tournament - 3 Courts, 2 Days Team Information 10 players per team 2 2 1 1 1 24 Scorekeeper/Court Supervisor $25 per hour $25 $25 $25 $25 $25 2 2 1 1 1 48 $2,400 $2,400 $1,200 $1,200 $1,200 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $1 $1 $1 $1 $1 2 2 1 1 1 90 $180 $180 $90 $90 $90 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $3 $3 $3 $3 $3 2 2 1 1 1 270 $1,620 $1,620 $810 $810 $810 Rental Fees $500/Court/Day $500 $500 $550 $550 $578 2 2 1 1 1 6 $6,000 $6,000 $3,300 $3,300 $3,465 Medium Tournament - 6 Courts, 2 Days Team Information 10 players per team 4 3 3 2 2 48 Scorekeeper/Court Supervisor $25 per hour $25 $25 $25 $25 $25 4 3 3 2 2 96 $9,600 $7,200 $7,200 $4,800 $4,800 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $3 $3 $3 $3 $3 4 3 3 2 2 180 $2,160 $1,620 $1,620 $1,080 $1,080 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $5 $5 $5 $5 $5 4 3 3 2 2 540 $10,800 $8,100 $8,100 $5,400 $5,400 Rental Fees $500/Court/Day $500 $500 $550 $550 $578 4 3 3 2 2 12 $24,000 $18,000 $19,800 $13,200 $13,860 Large Tournament - 6 Courts, 3 Days Team Information 12 players per team 2 3 2 1 1 48 Scorekeeper/Court Supervisor $25 per hour $25 $25 $25 $25 $25 2 3 2 1 1 96 $4,800 $7,200 $4,800 $2,400 $2,400 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $3 $3 $3 $3 $3 2 3 2 1 1 216 $1,296 $1,944 $1,296 $648 $648 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $5 $5 $5 $5 $5 2 3 2 1 1 648 $6,480 $9,720 $6,480 $3,240 $3,240 Rental Fees $500/Court/Day $500 $500 $550 $550 $578 2 3 2 1 1 18 $18,000 $27,000 $19,800 $9,900 $10,395 Extra Large Tournament - 6 Courts, 4 Days *1 Team Information 12 players per team 0 0 0 1 2 96 Scorekeeper/Court Supervisor $25 per hour $25 $25 $25 $25 $25 0 0 0 1 2 192 $0 $0 $0 $4,800 $9,600 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $3 $3 $3 $3 $3 0 0 0 1 2 432 $0 $0 $0 $1,296 $2,592 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $5 $5 $5 $5 $5 0 0 0 1 2 1296 $0 $0 $0 $6,480 $12,960 Rental Fees $500/Court/Day $500 $500 $550 $550 $578 0 0 0 1 2 24 $0 $0 $0 $13,200 $27,720 Child Gate Fee Discount 25% Reduction of Revenue ($5,634) ($5,796) ($4,599) ($2,817) ($2,817) Non-capacity growth rate 1.00 1.10 1.00 1.05 8 8 6 5 6 Capacity growth rate 1.10 1.10 1.10 1.10 8 10 10 11 12 Area Revenue $81,702 $85,188 $69,897 $69,027 $97,443

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Tournament Hosting Expenses 10% Gross Revenue $8,170 $8,519 $6,990 $6,903 $9,744 Scorekeeper/Court Supervisor $15/Hour $10,080 $10,080 $7,920 $7,920 $10,800 Area Expense $18,250 $18,599 $14,910 $14,823 $20,544

Net Revenue $63,452 $66,589 $54,987 $54,204 $76,899

Notes *1 Extra Large Tournaments have the same structure as medium tournaments but run for 4 days and include the use of 2 additional courts at offsite locations Rental Overflow Basketball Tournament Revenue & Expenses

Amount per Activity Number of Participants per Year Ave. Revenue Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Participants Overflow Tournament - 2 Courts, 2 Days Team Information 10 players per team 2 2 2 2 2 16 Scorekeeper/Court Supervisor $25 per hour $25 $25 $25 $25 $25 2 2 2 2 2 32 $1,600 $1,600 $1,600 $1,600 $1,600 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $6 $6 $6 $6 $6 2 2 2 2 2 60 $720 $720 $720 $720 $720 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $15 $15 $15 $15 $15 2 2 2 2 2 180 $5,400 $5,400 $5,400 $5,400 $5,400 Rental Fees $500/Court/Day $500 $500 $550 $550 $578 2 2 2 2 2 4 $4,000 $4,000 $4,400 $4,400 $4,620 Overflow Tournament - 2 Courts, 3 Days Team Information 12 players per team 0 1 1 1 1 16 Scorekeeper/Court Supervisor $25 per hour $25 $25 $25 $25 $25 0 1 1 1 1 32 $0 $800 $800 $800 $800 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $6 $6 $6 $6 $6 0 1 1 1 1 72 $0 $432 $432 $432 $432 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $15 $15 $15 $15 $15 0 1 1 1 1 216 $0 $3,240 $3,240 $3,240 $3,240 Rental Fees $500/Court/Day $500 $500 $550 $550 $578 0 1 1 1 1 6 $0 $3,000 $3,300 $3,300 $3,465 Overflow Tournament - 2 Courts, 4 Days Team Information 12 players per team 0 0 0 1 2 32 Scorekeeper/Court Supervisor $25 per hour $25 $25 $25 $25 $25 0 0 0 1 2 64 $0 $0 $0 $1,600 $3,200 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $6 $6 $6 $6 $6 0 0 0 1 2 144 $0 $0 $0 $864 $1,728 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $15 $15 $15 $15 $15 0 0 0 1 2 432 $0 $0 $0 $6,480 $12,960 Rental Fees $500/Court/Day $500 $500 $550 $550 $578 0 0 0 1 2 8 $0 $0 $0 $4,400 $9,240 Child Gate Fee Discount 25% Reduction of Revenue ($1,530) ($2,448) ($2,448) ($4,284) ($6,120) Non-capacity growth rate 1.00 1.10 1.00 1.05 2 3 3 4 5 Capacity growth rate 1.10 1.10 1.10 1.10 Area Revenue $10,190 $16,744 $17,444 $28,952 $41,285

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Facility Rental $50/hr $4,000 $7,000 $7,000 $11,000 $15,000 Tournament Hosting Expenses 10% Revenue $1,019 $1,674 $1,744 $2,895 $4,129 Scorekeeper/Court Supervisor $15/Hour $960 $1,440 $1,440 $2,400 $3,360 Area Expense $5,979 $10,114 $10,184 $16,295 $22,489

Net Revenue $4,211 $6,630 $7,260 $12,657 $18,797 In-House Volleyball Tournaments Revenue & Expenses

Amount per Activity Number of Activities per Year Ave. Revenue Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Participants Small Tournament - 6 Courts, 2 Days Entry Fees 10 players per team $350 $350 $385 $385 $404 0 0 1 1 0 48 $0 $0 $18,480 $18,480 $0 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $5 $5 $5 $5 $5 0 0 1 1 0 180 $0 $0 $900 $900 $0 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $10 $10 $10 $10 $10 0 0 1 1 0 540 $0 $0 $5,400 $5,400 $0 Medium Tournament - 9 Courts, 2 Days Entry Fees 10 players per team $350 $350 $385 $385 $404 0 0 1 1 2 72 $0 $0 $27,720 $27,720 $58,212 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $5 $5 $5 $5 $5 0 0 1 1 2 270 $0 $0 $1,350 $1,350 $2,700 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $10 $10 $10 $10 $10 0 0 1 1 2 810 $0 $0 $8,100 $8,100 $16,200 Large Tournament - 12 Courts, 2.5 Days Entry Fees 10 players per team $450 $450 $495 $495 $520 0 0 0 1 2 96 $0 $0 $0 $47,520 $99,792 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $5 $5 $5 $5 $5 0 0 0 1 2 360 $0 $0 $0 $1,800 $3,600 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $10 $10 $10 $10 $10 0 0 0 1 2 1080 $0 $0 $0 $10,800 $21,600 Child Gate Fee Discount 25% Reduction of Revenue $0 $0 ($3,938) ($7,088) ($11,025) Non-capacity growth rate 1.00 1.10 1.00 1.05 0 0 2 3 4 Capacity growth rate 1.10 1.10 1.10 1.10 Area Revenue $0 $0 $58,013 $114,983 $191,079

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Tournament Director 10% Entry Fees $0 $0 $4,620 $9,372 $15,800 Tournament Staff 15% Entry Fees $0 $0 $6,930 $14,058 $23,701 Official Fees 30% Entry Fees $0 $0 $13,860 $28,116 $47,401 Equip./Supplies 5% Gross Revenue $0 $0 $2,901 $5,749 $9,554 Awards 5% Gross Revenue $0 $0 $2,901 $5,749 $9,554 Area Expense $0 $0 $31,211 $63,044 $106,010

Net Revenue $0 $0 $26,801 $51,938 $85,069 In-House Overflow Volleyball Tournament Revenue & Expenses

Amount per Activity Number of Participants per Year Ave. Revenue Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Participants Overflow Tournament - 4 Courts, 2.5 Days *2 Entry Fees 10 players per team $450 $450 $495 $495 $520 0 0 0 0 1 32 $0 $0 $0 $0 $16,632 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $5 $3 $3 $3 $3 0 0 0 0 1 120 $0 $0 $0 $0 $360 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $10 $8 $8 $8 $8 0 0 0 0 1 360 $0 $0 $0 $0 $2,880 Child Gate Fee Discount 25% Reduction of Revenue $0 $0 $0 $0 ($810) Non-capacity growth rate 1.00 1.10 1.00 1.05 0 0 0 0 1 Capacity growth rate 1.10 1.10 1.10 1.10 Area Revenue $0 $0 $0 $0 $19,062

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Facility Rental $30/hr $0 $0 $0 $0 $3,000 Tournament Director 10% Entry Fees $0 $0 $0 $0 $1,663 Tournament Staff 15% Entry Fees $0 $0 $0 $0 $2,495 Official Fees 30% Entry Fees $0 $0 $0 $0 $4,990 Equip./Supplies 5% Gross Revenue $0 $0 $0 $0 $953 Awards 5% Gross Revenue $0 $0 $0 $0 $953 Area Expense $0 $0 $0 $0 $14,054

Net Revenue $0 $0 $0 $0 $5,008 Rental Volleyball Tournaments Revenue & Expenses Amount per Activity Number of Events per Year Ave. Revenue Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Participants Small Tournament - 6 Courts, 2 Days Team Information 10 players per team 2 2 1 0 0 48 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $5 $5 $5 $5 $5 2 2 1 0 0 180 $1,800 $1,800 $900 $0 $0 Gate Fees - Tournament Pass 75% of fans (1.5 fans/player) $8 $10 $10 $10 $10 2 2 1 0 0 540 $8,640 $10,800 $5,400 $0 $0 Rental Fees $300/Court/Day $300 $300 $330 $330 $347 2 2 1 0 0 12 $7,200 $7,200 $3,960 $0 $0 Medium Tournament - 9 Courts, 2 Days Entry Fees 10 players per team 2 3 3 3 2 72 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $6 $5 $5 $5 $5 2 3 3 3 2 270 $3,240 $4,050 $4,050 $4,050 $2,700 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $10 $10 $10 $10 $10 2 3 3 3 2 810 $16,200 $24,300 $24,300 $24,300 $16,200 Rental Fees $300/Court/Day $300 $300 $330 $330 $347 2 3 3 3 2 18 $10,800 $16,200 $17,820 $17,820 $12,474 Large Tournament - 12 Courts, 2.5 Days Entry Fees 10 players per team 2 3 4 6 6 96 Gate Fees - Day Pass 25% of fans (1.5 fans/player) $6 $5 $5 $5 $5 2 3 4 6 6 360 $4,320 $5,400 $7,200 $10,800 $10,800 Gate Fess - Tournament Pass 75% of fans (1.5 fans/player) $15 $10 $10 $10 $10 2 3 4 6 6 1080 $32,400 $32,400 $43,200 $64,800 $64,800 Rental Fees $300/Court/Day $300 $0 $0 $0 $0 2 3 4 6 6 30 $18,000 $0 $0 $0 $0 Child Gate Fee Discount 25% Reduction of Revenue ($23,310) ($22,725) ($23,670) ($26,730) ($23,369) Non-capacity growth rate 1.00 1.10 1.00 1.05 6 8 8 9 8 Capacity growth rate 1.10 1.10 1.10 1.10 6 8 10 12 12 Area Revenue $79,290 $79,425 $83,160 $95,040 $83,606

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Tournament Hosting Expenses 10% Gross Revenue $7,929 $7,943 $8,316 $9,504 $8,361 Area Expense $7,929 $7,943 $8,316 $9,504 $8,361

Net Revenue $71,361 $71,483 $74,844 $85,536 $75,245 Rental Overflow Volleyball Tournament Revenue & Expenses

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Facility Rental $20/hr $0 $3,000 $6,000 $9,000 $12,000 Tournament Hosting Expenses 10% Revenue $0 $555 $1,155 $1,733 $2,360 Area Expense $0 $3,555 $7,155 $10,733 $14,360

Net Revenue $0 $1,995 $4,395 $6,593 $9,236 Indoor Rental Events Revenue & Expenses

Amount per Activity Number of Participants per Year Ave. Revenue Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Participants Small Event - 1 Day, Half Utilization Rental Fee $750 $750 $825 $825 $866 1 1 1 1 1 1 $750 $750 $825 $825 $866 Medium Event - 1 Days, Full Utilization Rental Fee $3,000 $3,000 $3,300 $3,300 $3,465 2 2 3 4 5 1 $6,000 $6,000 $9,900 $13,200 $17,325 Large Event - 2 Days, Full Utilization Rental Fee $6,000 $6,000 $6,600 $6,600 $6,930 1 1 1 1 1 1 $6,000 $6,000 $6,600 $6,600 $6,930 Non-capacity growth rate 1.00 1.10 1.00 1.05 4 4 5 6 7 Capacity growth rate 1.10 1.10 1.10 1.10 Area Revenue $12,750 $12,750 $17,325 $20,625 $25,121

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Tournament Hosting Expenses 10% Gross Revenue $1,275 $1,275 $1,733 $2,063 $2,512 Area Expense $1,275 $1,275 $1,733 $2,063 $2,512

Net Revenue $11,475 $11,475 $15,593 $18,563 $22,609 Hotel Rebates

# Room Nights Per Number of Events per Year # Non-Local Rooms Per Room Nights Revenue Mgmt. Assump. Rebate Year 1 Year 2 Year 3 Year 4 Year 5 Non-Local Part. Rate Year 1 Year 2 Year 3 Year 4 Year 5 Attendees Night Per Event Basketball - Small 75% non-local attendance 1.5 $5 0 1 1 0 0 450 129 193 $0 $964 $964 $0 $0 Basketball - Medium 75% non-local attendance 1.5 $5 0 1 2 3 3 900 257 386 $0 $1,929 $3,857 $5,786 $5,786 Basketball - Large 75% non-local attendance 2 $5 0 0 1 2 2 1080 309 617 $0 $0 $3,086 $6,171 $6,171 Basketball - Extra Large 75% non-local attendance 3.5 $5 0 0 0 1 1 2160 617 2160 $0 $0 $0 $10,800 $10,800 Basketball - Medium Overflow 75% non-local attendance 1.5 $5 0 0 0 1 2 300 86 129 $0 $0 $0 $643 $1,286 Basketball - Large Overflow 75% non-local attendance 2 $5 0 0 0 0 1 360 103 206 $0 $0 $0 $0 $1,029 Basketball - Extra Large Overflow 75% non-local attendance 3.5 $5 0 0 0 0 1 720 206 720 $0 $0 $0 $0 $3,600 Basketball Rental - Small 75% non-local attendance 1.5 $1 2 2 1 1 1 450 129 193 $386 $386 $193 $193 $193 Basketball Rental - Medium 75% non-local attendance 1.5 $1 4 3 3 2 2 900 257 386 $1,543 $1,157 $1,157 $771 $771 Basketball Rental - Large 75% non-local attendance 2 $1 2 3 2 1 1 1080 309 617 $1,234 $1,851 $1,234 $617 $617 Basketball Rental - Extra Large 75% non-local attendance 3.5 $1 0 0 0 1 2 2160 617 2160 $0 $0 $0 $2,160 $4,320 Basketball Rental - Medium Overflow 75% non-local attendance 1.5 $1 2 2 2 2 2 300 86 129 $257 $257 $257 $257 $257 Basketball Rental - Large Overflow 75% non-local attendance 2 $1 0 1 1 1 1 360 103 206 $0 $206 $206 $206 $206 Basketball Rental - Extra Large Overflow 75% non-local attendance 3.5 $1 0 0 0 1 2 720 206 720 $0 $0 $0 $720 $1,440 Volleyball - Small 75% non-local attendance 1.5 $5 0 0 1 1 0 900 257 386 $0 $0 $1,929 $1,929 $0 Volleyball - Medium 75% non-local attendance 1.5 $5 0 0 1 1 2 1350 386 579 $0 $0 $2,893 $2,893 $5,786 Volleyball - Large 75% non-local attendance 2 $5 0 0 0 1 2 1800 514 1029 $0 $0 $0 $5,143 $10,286 Volleyball - Large Overflow 75% non-local attendance 2 $5 0 0 0 0 1 600 171 343 $0 $0 $0 $0 $1,714 Volleyball Rental - Small 75% non-local attendance 1.5 $1 2 2 1 0 0 900 257 386 $771 $771 $386 $0 $0 Volleyball Rental - Medium 75% non-local attendance 1.5 $1 2 3 3 3 2 1350 386 579 $1,157 $1,736 $1,736 $1,736 $1,157 Volleyball Rental - Large 75% non-local attendance 2 $1 2 3 4 6 6 1800 514 1029 $2,057 $3,086 $4,114 $6,171 $6,171 Volleyball Rental - Large Overflow 75% non-local attendance 2 $1 0 1 2 3 4 600 171 343 $0 $343 $686 $1,029 $1,371 Small Indoor Rental Event 25% non-local attendance 0 $1 1 1 1 1 1 100 29 0 $0 $0 $0 $0 $0 Medium Indoor Rental Event 50% non-local attendance 0.5 $1 2 2 3 4 5 413 118 59 $118 $118 $177 $236 $295 Large Indoor Rental Event 75% non-local attendance 1.5 $1 1 1 1 1 1 619 177 265 $265 $265 $265 $265 $265 18 22 25 29 31 Area Revenue $7,789 $13,069 $23,139 $47,725 $63,521

Expense Year 1 Year 2 Year 3 Year 4 Year 5

Area Expense $0 $0 $0 $0 $0

Net Revenue $7,789 $13,069 $23,139 $47,725 $63,521 Food & Beverage Revenue & Expenses

Event Daily Expend. Number of Events per Year Number of Revenue Participants Per Entry Total # of Entries Number of Participants Year 1 Year 2 Year 3 Year 4 Year 5 Days Per Attendee Year 1 Year 2 Year 3 Year 4 Year 5 Fans Basketball - Small 2 $3 0 1 1 0 0 10 24 240 360 $0 $3,600 $3,600 $0 $0 Basketball - Medium 2 $3 0 1 2 3 3 10 48 480 720 $0 $7,200 $14,400 $21,600 $21,600 Basketball - Large 3 $3 0 0 1 2 2 12 48 576 864 $0 $0 $12,960 $25,920 $25,920 Basketball - Extra Large 4 $3 0 0 0 1 1 12 96 1152 1728 $0 $0 $0 $34,560 $34,560 Basketball - Medium Overflow 2 $3 0 0 0 1 2 10 16 160 240 $0 $0 $0 $2,400 $4,800 Basketball - Large Overflow 3 $3 0 0 0 0 1 12 16 192 288 $0 $0 $0 $0 $4,320 Basketball - Extra Large Overflow 4 $3 0 0 0 0 1 12 32 384 576 $0 $0 $0 $0 $11,520 Basketball Rental - Small 2 $3 2 2 1 1 1 10 24 240 360 $7,200 $7,200 $3,600 $3,600 $3,600 Basketball Rental - Medium 2 $3 4 3 3 2 2 10 48 480 720 $28,800 $21,600 $21,600 $14,400 $14,400 Basketball Rental - Large 3 $3 2 3 2 1 1 12 48 576 864 $25,920 $38,880 $25,920 $12,960 $12,960 Basketball Rental - Extra Large 4 $3 0 0 0 1 2 12 96 1152 1728 $0 $0 $0 $34,560 $69,120 Basketball Rental - Medium Overflow 2 $3 2 2 2 2 2 10 16 160 240 $4,800 $4,800 $4,800 $4,800 $4,800 Basketball Rental - Large Overflow 3 $3 0 1 1 1 1 12 16 192 288 $0 $4,320 $4,320 $4,320 $4,320 Basketball Rental - Extra Large Overflow 4 $3 0 0 0 1 2 12 32 384 576 $0 $0 $0 $11,520 $23,040 Volleyball - Small 2 $3 0 0 1 1 0 10 48 480 720 $0 $0 $7,200 $7,200 $0 Volleyball - Medium 2 $3 0 0 1 1 2 10 72 720 1080 $0 $0 $10,800 $10,800 $21,600 Volleyball - Large 2.5 $3 0 0 0 1 2 10 96 960 1440 $0 $0 $0 $18,000 $36,000 Volleyball - Large Overflow 2.5 $3 0 0 0 0 1 10 32 320 480 $0 $0 $0 $0 $6,000 Volleyball Rental - Small 2 $3 2 2 1 0 0 10 48 480 720 $14,400 $14,400 $7,200 $0 $0 Volleyball Rental - Medium 2 $3 2 3 3 3 2 10 72 720 1080 $21,600 $32,400 $32,400 $32,400 $21,600 Volleyball Rental - Large 2.5 $3 2 3 4 6 6 10 96 960 1440 $36,000 $54,000 $72,000 $108,000 $108,000 Volleyball Rental - Large Overflow 2.5 $3 0 1 2 3 4 10 32 320 480 $0 $6,000 $12,000 $18,000 $24,000 Small Indoor Rental Event 0.5 $1,200 1 1 1 1 1 1 1 1 1 $1,200 $1,200 $1,200 $1,200 $1,200 Medium Indoor Rental Event 1 $2,500 2 2 3 4 5 1 1 1 1 $5,000 $5,000 $7,500 $10,000 $12,500 Large Indoor Rental Event 2 $5,000 1 1 1 1 1 1 1 1 1 $5,000 $5,000 $5,000 $5,000 $5,000 18 22 25 29 31 Area Revenue $149,920 $205,600 $246,500 $381,240 $470,860

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Food Cost 35% Concessions Sales $52,472 $71,960 $86,275 $133,434 $164,801 Non-food Costs 5% Concession Sales $7,496 $10,280 $12,325 $19,062 $23,543 Food and Beverage Wages 25% Concession Sales $37,480 $51,400 $61,625 $95,310 $117,715 Area Expense $97,448 $133,640 $160,225 $247,806 $306,059

Net Revenue $52,472 $71,960 $86,275 $133,434 $164,801 Secondary Revenue Areas

Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Advertisement/Sponsorship Income $75,000 $90,000 $94,500 $99,225 $104,186 Area Revenue $75,000 $90,000 $94,500 $99,225 $104,186

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Advertisement hard cost Printing of Ad/Sponsors within facility(10% of Ad Inc.) $7,500 $9,000 $9,450 $9,923 $10,419 Sponsorship Commissions $7,500 $9,000 $9,450 $9,923 $10,419 Area Expense $15,000 $18,000 $18,900 $19,845 $20,837

Net Revenue $60,000 $72,000 $75,600 $79,380 $83,349 Retail Revenue & Expenses

Number of Events per Year Number of Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Participants Basketball - Small $7 0 1 1 0 0 240 $0 $1,680 $1,680 $0 $0 Basketball - Medium $7 0 1 2 3 3 480 $0 $3,360 $6,720 $10,080 $10,080 Basketball - Large $7 0 0 1 2 2 576 $0 $0 $4,032 $8,064 $8,064 Basketball - Extra Large $7 0 0 0 1 1 1152 $0 $0 $0 $8,064 $8,064 Basketball - Medium Overflow $7 0 0 0 1 2 160 $0 $0 $0 $1,120 $2,240 Basketball - Large Overflow $7 0 0 0 0 1 192 $0 $0 $0 $0 $1,344 Basketball - Extra Large Overflow $7 0 0 0 0 1 384 $0 $0 $0 $0 $2,688 Basketball Rental - Small $1 2 2 1 1 1 240 $480 $480 $240 $240 $240 Basketball Rental - Medium $1 4 3 3 2 2 480 $1,920 $1,440 $1,440 $960 $960 Basketball Rental - Large $1 2 3 2 1 1 576 $1,152 $1,728 $1,152 $576 $576 Basketball Rental - Extra Large $1 0 0 0 1 2 1152 $0 $0 $0 $1,152 $2,304 Basketball Rental - Medium Overflow $1 2 2 2 2 2 160 $320 $320 $320 $320 $320 Basketball Rental - Large Overflow $1 0 1 1 1 1 192 $0 $192 $192 $192 $192 Basketball Rental - Extra Large Overflow $1 0 0 0 1 2 384 $0 $0 $0 $384 $768 Volleyball - Small $7 0 0 1 1 0 480 $0 $0 $3,360 $3,360 $0 Volleyball - Medium $7 0 0 1 1 2 720 $0 $0 $5,040 $5,040 $10,080 Volleyball - Large $7 0 0 0 1 2 960 $0 $0 $0 $6,720 $13,440 Volleyball - Large Overflow $7 0 0 0 0 1 320 $0 $0 $0 $0 $2,240 Volleyball Rental - Small $1 2 2 1 0 0 480 $960 $960 $480 $0 $0 Volleyball Rental - Medium $1 2 3 3 3 2 720 $1,440 $2,160 $2,160 $2,160 $1,440 Volleyball Rental - Large $1 2 3 4 6 6 960 $1,920 $2,880 $3,840 $5,760 $5,760 Volleyball Rental - Large Overflow $1 0 1 2 3 4 320 $0 $320 $640 $960 $1,280 Small Indoor Rental Event $1 1 1 1 1 1 160 $160 $160 $160 $160 $160 Medium Indoor Rental Event $1 2 2 3 4 5 330 $660 $660 $990 $1,320 $1,650 Large Indoor Rental Event $1 1 1 1 1 1 330 $330 $330 $330 $330 $330 18 22 25 29 31 Area Revenue $9,342 $16,670 $32,776 $56,962 $74,220

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Retail Product Cost 55% Gross Revenue $5,138 $9,169 $18,027 $31,329 $40,821 Retail Wages 15% Gross Revenue $1,401 $2,501 $4,916 $8,544 $11,133 Area Expense $6,539 $11,669 $22,943 $39,873 $51,954

Net Revenue $2,803 $5,001 $9,833 $17,089 $22,266 Membership Revenue & Expenses

Price Per Session Total Per Year Revenue Mgmt. Assump. Sellable Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sessions Memberships *1 Program Membership $/Year $24 $24 $26 $26 $28 524 655 753 791 830 1 $12,574 $15,718 $19,883 $20,877 $23,017 Non-capacity growth rate 1.00 1.10 1.00 1.05 1.25 1.15 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 Area Revenue $12,574 $15,718 $19,883 $20,877 $23,017

Expense Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Membership Sales Staff 5% Gross Revenue $629 $786 $994 $1,044 $1,151 Area Expense $629 $786 $994 $1,044 $1,151

Net Revenue $11,946 $14,932 $18,889 $19,833 $21,866 Basketball Revenue & Expenses

Price per Session (8 weeks) Number per Session (8 weeks) Sellable Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sessions Instructional Clinics $/Session $100 $100 $110 $110 $116 8 10 11 12 13 3 $2,376 $2,970 $3,757 $3,945 $4,349 Instructional Camps $/Week (full days)*1 $300 $300 $330 $330 $347 12 15 17 18 19 3 $10,800 $13,500 $17,078 $17,931 $19,769 Individual Instruction $/Hour $50 $50 $55 $55 $58 10 12 14 14 15 6 $2,851 $3,564 $4,508 $4,734 $5,219 Drop-in/Other Income $/Session $10 $10 $11 $11 $12 40 50 58 60 63 12 $4,800 $6,000 $7,590 $7,970 $8,786 3 vs. 3 Leagues $/Team *2 $270 $270 $297 $297 $312 6 8 9 9 10 3 $4,860 $6,075 $7,685 $8,069 $8,896 Leagues Sept. - Oct. League $/Team *3 $550 $550 $605 $605 $635 8 10 12 12 13 1 $4,400 $5,500 $6,958 $7,305 $8,054 Nov.- Dec. League $/Team $550 $550 $605 $605 $635 12 15 17 18 19 1 $6,600 $8,250 $10,436 $10,958 $12,081 Jan. - Feb. League $/Team $550 $550 $605 $605 $635 16 20 23 24 25 1 $8,800 $11,000 $13,915 $14,611 $16,108 Mar. - Apr. League $/Team $550 $550 $605 $605 $635 20 25 29 30 32 1 $11,000 $13,750 $17,394 $18,263 $20,135 May - June League $/Team $550 $550 $605 $605 $635 12 15 17 18 19 1 $6,600 $8,250 $10,436 $10,958 $12,081 July - Aug. League $/Team $550 $550 $605 $605 $635 12 15 17 18 19 1 $6,600 $8,250 $10,436 $10,958 $12,081 Non-capacity growth rate 1.00 1.10 1.00 1.05 1.25 1.15 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 Area Revenue $69,687 $87,109 $110,193 $115,703 $127,562

Expense Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Basketball Director 10% gross revenue $6,969 $7,317 $7,683 $8,067 $8,471 Basketball Staff 5% of gross revenue $3,484 $4,355 $5,510 $5,785 $6,378 Referee Fees Avg. $30/game $9,600 $12,000 $13,800 $14,490 $15,215 Instructor Fees $10-$25/Instructor (25% Instruct. Rev) $4,007 $5,009 $6,336 $6,653 $7,334 Advertising 2% gross revenue (6% year one) $4,181 $1,742 $2,204 $2,314 $2,551 Equipment and Supplies 5% of gross revenue $3,484 $4,355 $5,510 $5,785 $6,378 Awards T-Shirts and Trophies (2% of Revenue) $1,394 $1,742 $2,204 $2,314 $2,551

Area Expense $33,119 $36,521 $43,246 $45,408 $48,878

Net Revenue $36,568 $50,588 $66,947 $70,294 $78,684

Pricing Notes *1 Davis & Elkins College *3 City of Williamsburg $60/particpant 4 day (1/2 day sessions) $45/ player (8 weeks)

William & Mary Local YMCA's $250/participant 4 day (full day sessions) $25-55/player (member) 6-8 weeks $56-70/player (non-member) 6-8 weeks James City County $95/participant 4 day (half day sessions) City of Williamsburg $500/ player (8 weeks)--Adult League Williamsburg Christian Academy $110/participant 5 day (half day sessions) Newport News $35/ player (8 weeks)

*2 City of Williamsburg $260/Team (Summer/Winter) Volleyball Revenue & Expenses

Price per Session (8 weeks) Number per Session (8 weeks) Sellable Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sessions Instructional Clinics $/Session *1 $100 $100 $110 $110 $116 3 3 4 4 4 3 $832 $1,040 $1,315 $1,381 $1,522 Instructional Camps $/Week (full*2 days) $320 $320 $352 $352 $370 4 5 6 6 7 3 $4,032 $5,040 $6,376 $6,694 $7,381 Individual Instruction $/Hour $50 $50 $55 $55 $58 3 4 5 5 5 6 $998 $1,247 $1,578 $1,657 $1,827 Drop-in/Other Income $/Session $10 $10 $11 $11 $12 30 38 43 45 48 12 $3,600 $4,500 $5,693 $5,977 $6,590 Leagues Sept. - Oct. League $/Team *3 $450 $450 $495 $495 $520 5 6 7 8 8 1 $2,250 $2,813 $3,558 $3,736 $4,119 Nov.- Dec. League $/Team $450 $450 $495 $495 $520 5 6 7 8 8 1 $2,250 $2,813 $3,558 $3,736 $4,119 Jan. - Feb. League $/Team $450 $450 $495 $495 $520 7 9 10 11 11 1 $3,150 $3,938 $4,981 $5,230 $5,766 Mar. - Apr. League $/Team $450 $450 $495 $495 $520 7 9 10 11 11 1 $3,150 $3,938 $4,981 $5,230 $5,766 May - June League $/Team $450 $450 $495 $495 $520 0 - - - - 1 $0 $0 $0 $0 $0 July - Aug. League $/Team $450 $450 $495 $495 $520 0 - - - - 1 $0 $0 $0 $0 $0 Non-capacity growth rate 1.00 1.10 1.00 1.05 1.25 1.15 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 Area Revenue $20,262 $25,327 $32,039 $33,640 $37,089

Expense Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Volleyball Director 10% gross revenue $2,026 $2,127 $2,234 $2,346 $2,463 Volleyball Staff 5% of gross revenue $1,013 $1,266 $1,602 $1,682 $1,854 Referee Fees Avg. $15/game $1,440 $1,800 $2,070 $2,174 $2,282 Instructor Fees $10-$25/Instructor (25% Instruct. Rev) $1,465 $1,832 $2,317 $2,433 $2,682 Advertising 2% gross revenue (6% revenue year 1) $1,216 $507 $641 $673 $742 Equipment and Supplies 5% of gross revenue $1,013 $1,266 $1,602 $1,682 $1,854 Awards T-Shirts and Trophies (2% of Revenue) $405 $507 $641 $673 $742

Area Expense $8,579 $9,305 $11,106 $11,662 $12,620

Net Revenue $11,683 $16,022 $20,932 $21,979 $24,469

Pricing Notes *1 City of Williamsburg *3 City of Williamsburg $12 per clinic (2 hour session) $45/player (5wks) $30-45/player (2hr/2day) $175/team (Adult)

*2 High Potential VB Camp Victory YMCA $75/day - 3 days (half day sessions) $15/player 6wk Co-Rec Adult

Warhill High VB Camp $250/player 4 days (5hr sessions)

Collonial Volleyball Camp $60-75/player 4 days (half day sessions) Indoor Court Rental Revenue & Expenses

Price per Session (Hour) Number per Session (8 weeks) Revenue Mgmt. Assump. Sellable Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Session Small Court Rentals Sept. - Oct. $/Hour $20 $20 $21 $21 $22 20 22 24 25 25 1 $400 $440 $508 $534 $560 Nov.- Dec. $/Hour $30 $30 $32 $32 $33 30 33 36 38 38 1 $900 $990 $1,143 $1,201 $1,261 Jan. - Feb. $/Hour $30 $30 $32 $32 $33 40 44 48 51 51 1 $1,200 $1,320 $1,525 $1,601 $1,681 Mar. - Apr. $/Hour $30 $30 $32 $32 $33 40 44 48 51 51 1 $1,200 $1,320 $1,525 $1,601 $1,681 May - June $/Hour $20 $20 $21 $21 $22 30 33 36 38 38 1 $600 $660 $762 $800 $840 July - Aug $/Hour $20 $20 $21 $21 $22 20 22 24 25 25 1 $400 $440 $508 $534 $560 Large Court Rentals Sept. - Oct. $/Hour *1 $35 $35 $37 $37 $39 20 22 24 25 25 1 $700 $770 $889 $934 $981 Nov.- Dec. $/Hour $50 $50 $53 $53 $55 30 33 36 38 38 1 $1,500 $1,650 $1,906 $2,001 $2,101 Jan. - Feb. $/Hour $50 $50 $53 $53 $55 40 44 48 51 51 1 $2,000 $2,200 $2,541 $2,668 $2,801 Mar. - Apr. $/Hour $50 $50 $53 $53 $55 40 44 48 51 51 1 $2,000 $2,200 $2,541 $2,668 $2,801 May - June $/Hour $35 $35 $37 $37 $39 30 33 36 38 38 1 $1,050 $1,155 $1,334 $1,401 $1,471 July - Aug $/Hour $35 $35 $37 $37 $39 20 22 24 25 25 1 $700 $770 $889 $934 $981 Non-capacity growth rate 1.00 1.05 1.00 1.05 1.10 1.10 1.05 1.00 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 Area Revenue $12,650 $13,915 $16,072 $16,875 $17,719

Expense Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Supervision/Maintenance Staff 5% Rev $633 $696 $804 $844 $886

Area Expense $633 $696 $804 $844 $886

Net Revenue $12,018 $13,219 $15,268 $16,032 $16,833

Pricing Notes *1 U-Turn Sports Performance $75/hr (4 hours or less) $30hr (4hours or more)

Boo Williams $35-$50/hr (non-peak/peak) Rock Wall Revenue & Expenses

Price per Sale Sales per Month Sellable Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sessions Climbing punch cards 10 climbs for $100 $100 $100 $110 $110 $116 100 115 127 133 139 1 $10,000 $11,500 $13,915 $14,611 $16,108 Drop-in Climbing $/Session $10 $10 $11 $11 $12 20 23 25 27 28 50 $10,000 $11,500 $13,915 $14,611 $16,108 Rock Wall Parties $/Party (avg 15 kids) $275 $275 $303 $303 $318 6 7 8 8 8 12 $19,800 $22,770 $27,552 $28,929 $31,895 Non-capacity growth rate 1.00 1.10 1.00 1.05 1.15 1.10 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 Area Revenue $39,800 $45,770 $55,382 $58,151 $64,111

Expense Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Adventure Area Management 10% Revenue $3,980 $4,577 $5,538 $5,815 $6,411 Rock Staff 5% Revenue $1,990 $2,289 $2,769 $2,908 $3,206 Route Setter Adventure Area Responsibility $0 $0 $0 $0 $0 Birthday Party Staff 2 hrs/party plus set up and clean, 1 employee/party, $10/hr/employee $2,160 $2,484 $2,732 $2,869 $3,012 Birthday Party Supplies 4% COGS $792 $911 $1,102 $1,157 $1,276 Birthday Party Food 15% COGS $2,970 $3,416 $4,133 $4,339 $4,784 Advertising 2% Area Revenue (6% rev year 1) $2,388 $915 $1,108 $1,163 $1,282 Maintenance 2% Area Revenue $796 $915 $1,108 $1,163 $1,282 Equipment and Supplies 4% area revenue $1,592 $1,831 $2,215 $2,326 $2,564

Area Expense $16,668 $17,337 $20,705 $21,740 $23,818

Net Revenue $23,132 $28,433 $34,677 $36,411 $40,293 Birthday Parties Rental Revenue & Expenses

Price per Session Number per Session (Month) Sellable Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sessions Court Birthday Parties $/Party (avg 15 kids) *1 $250 $250 $275 $275 $289 6 8 9 9 10 12 $18,000 $22,500 $28,463 $29,886 $32,949 Non-capacity growth rate 1.00 1.10 1.00 1.05 1.25 1.15 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 Area Revenue $18,000 $22,500 $28,463 $29,886 $32,949

Expense Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Birthday Party Management 10% gross revenue $1,800 $2,250 $2,846 $2,989 $3,295 Birthday Party Staff 2 hrs/party plus set up and clean, 1 employee/party, $10/hr/employee $2,160 $2,700 $3,105 $3,260 $3,423 Birthday Party Supplies 4% COGS $720 $900 $1,139 $1,195 $1,318 Birthday Party Food 15% COGS $2,700 $3,375 $4,269 $4,483 $4,942 Area Expense $7,380 $9,225 $11,359 $11,927 $12,978

Net Revenue $10,620 $13,275 $17,103 $17,959 $19,970

Pricing Notes *1 The WISC $205-$290

Quarterpath Park and Rec Center $25/hr - $50/hr

RF Wilkinson YMCA $60 member/$85 non-member

Victory YMCA $60-$145 Corporate & Group Events Revenue & Expenses

Price per Session Ave # Number per Session Sellable Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Attending Year 1 Year 2 Year 3 Year 4 Year 5 Sessions Corporate Events and Parties $35 $35 $42 $42 $44 20 8 10 11 12 13 1 $5,600 $7,000 $9,240 $10,164 $11,739 Facility Rentals $3,000 $3,000 $3,600 $3,600 $3,780 1 2 3 3 3 3 1 $6,000 $7,500 $9,900 $10,890 $12,578 Non-capacity growth rate 1.00 1.20 1.00 1.05 1.25 1.10 1.10 1.10 Capacity growth rate 1.10 1.20 1.10 1.10 Area Revenue $11,600 $14,500 $19,140 $21,054 $24,317

Expense Year 1 Year 2 Year 3 Year 4 Year 5 Corporate Events Director 10% Gross Sales $1,160 $1,450 $1,914 $2,105 $2,432 Group Event Instructors 15% of Gross $1,740 $2,175 $2,871 $3,158 $3,648 Advertising 10% Gross Sales $1,160 $1,195 $1,231 $1,268 $1,306 Equipment and Consumable Supplies 5% of gross $580 $725 $957 $1,053 $1,216

Area Expense $4,640 $5,545 $6,973 $7,584 $8,601

Net Revenue $6,960 $8,955 $12,167 $13,470 $15,717 Youth Programming Revenue & Expenses

Price per Session Number per Session Sellable Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sessions Half-Day Camp $/week $75 $75 $83 $83 $87 8 10 11 12 12 10 $6,000 $7,200 $9,108 $9,563 $10,544 Full Day Camp $/week *1 $130 $130 $143 $143 $150 10 12 14 14 15 10 $13,000 $15,600 $19,734 $20,721 $22,845 Single Day Camps $/day $25 $25 $28 $28 $29 10 12 14 14 15 12 $3,000 $3,600 $4,554 $4,782 $5,272 Camp Day-Care $/day $10 $10 $11 $11 $12 102 122 141 148 155 10 $10,200 $12,240 $15,484 $16,258 $17,924 Lock-Ins $/visit $25 $25 $28 $28 $29 20 24 28 29 30 12 $6,000 $7,200 $9,108 $9,563 $10,544 Large Parties $/attendee $30 $30 $33 $33 $35 50 60 69 72 76 3 $4,500 $5,400 $6,831 $7,173 $7,908 Field Trips $/visit $5 $5 $6 $6 $6 20 24 28 29 30 9 $900 $1,080 $1,366 $1,435 $1,582 Non-capacity growth rate 1.00 1.10 1.00 1.05 1.20 1.15 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 Area Revenue $43,600 $52,320 $66,185 $69,494 $76,617

Expense Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Youth Programming Management 10% Gross Revenue $4,360 $5,232 $6,618 $6,949 $7,662 Camp Payroll 15% Gross Revenue $6,540 $7,848 $9,928 $10,424 $11,493 Advertising 5% Gross Revenue $2,180 $2,616 $3,309 $3,475 $3,831 Equipment & Consumables 3% Gross Revenue $1,308 $1,570 $1,986 $2,085 $2,299 Camp Lunch 2.5% Gross Revenue $1,090 $1,308 $1,655 $1,737 $1,915 T-shirts $4 per shirt $720 $864 $994 $1,043 $1,095

Area Expense $11,838 $14,206 $17,871 $18,764 $20,633

Net Revenue $31,762 $38,114 $48,314 $50,730 $55,984

Pricing Notes *1 WISC $125/week

Local YMCA's $85/$100 (member/non-member) Food & Beverage Revenue & Expenses

Revenue Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Concessions Sales $63,346 $66,514 $69,839 $73,331 $76,998 Vending Income 10% Concession sales $6,335 $6,651 $6,984 $7,333 $7,700 Area Revenue $69,681 $73,165 $76,823 $80,664 $84,698

Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Concessions Food 35% COGS $24,388 $25,608 $26,888 $28,233 $29,644 Concessions Non-food 10% Concession Sales $6,335 $6,651 $6,984 $7,333 $7,700 Concessions Wages 25% Concession Sales $15,837 $16,628 $17,460 $18,333 $19,249 Area Expense $46,560 $48,888 $51,332 $53,898 $56,593

Net Revenue $23,121 $24,277 $25,491 $26,766 $28,104