Feasibility Study - Woodridge Park District

Transcription

April 2012
Feasibility Study
Woodridge Athletic
Recreation Center
Woodridge (IL) Park District
This document details the vision, the business model, current status,
expected needs, defined markets, and projected results of the
Woodridge Athletic Recreation Center project, as well as the
projected feasibility for the success and financial viability of the
project. This study represents a formal statement of the business
goals and the reasons why they are believed attainable, in addition to
background information about the Park District and its assembled
advisory board.
Prepared For: Woodridge Park District
Prepared by: The Sports Facilities Advisory
Feasibility Study ♦ Woodridge Athletic Recreation Center ♦ Woodridge, IL
April 2012
TABLE OF CONTENTS
PROJECT PLANNING & DEVELOPMENT ....................................................................3
EXECUTIVE SUMMARY ........................................................................................................................................... 5
PROJECT INTRODUCTION AND METHODOLGY...................................................................................................... 7
Project Background ............................................................................................................... 7
Planning and Strategy .......................................................................................................... 8
Final Facility Design - Option 7 ....................................................................................... 11
Site Options .......................................................................................................................... 11
Financial Forecasting.......................................................................................................... 14
PROGRAMMING AND PRODUCTS/SERVICES ....................................................................................................... 15
Projected Revenue of Products and Services .................................................................. 16
MARKET ANALYSIS .........................................................................................................19
FACILITY LOCATION & SITE ACCESSIBILITY ....................................................................................................... 20
MARKET DEMOGRAPHIC CHARACTERISTICS ...................................................................................................... 21
EXISTING PROVIDER ANALYSIS ........................................................................................................................... 24
Existing Turf Providers....................................................................................................... 30
Existing Court Providers .................................................................................................... 32
Existing Baseball and Softball Training Providers ...................................................... 33
Existing YMCA and Rec Centers....................................................................................... 34
Existing Fitness Providers ................................................................................................. 35
Summary of Existing Service Providers .......................................................................... 37
FINANCIAL ANALYSIS ....................................................................................................39
SUMMARY OF FINANCIAL PROJECTIONS ............................................................................................................. 40
Programming Revenues & Expenses ................................................................................ 40
Payroll ................................................................................................................................... 43
Facility and Operating Expenses ...................................................................................... 46
CONCLUSION .....................................................................................................................48
CONCLUSION & PROFESSIONAL RECOMMENDATION ........................................................................................ 49
Contributors to Project Success........................................................................................ 49
Challenges to Project Success ........................................................................................... 50
Conclusion, Recommendations & Next Steps ................................................................ 50
APPENDIX ............................................................................................................................52
The Sports Facilities Advisory, LLC
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April 2012
Project Planning & Development
Page 3
April 2012
THE SPORTS FACILITIES ADVISORY PROFILE
The Sports Facilities Advisory
The Park District engaged The Sports Facilities Advisory (SFA) to contribute third-party
financial and feasibility analysis and expertise for this indoor sports and recreation facility.
Operated by a team of accomplished sports facility operators, business advisors, league sports
experts, corporate team development professionals, and facility design professionals; SFA is a
full-service consultancy firm specializing in the planning, opening, and managing of sports and
recreation facilities of all sizes and scope. SFA assists clients in evaluating opportunities,
developing new sport and recreation facilities – from community centers to professional-level
training and competition facilities – and managing or optimizing existing operations. SFA’s
work encompasses multisport and multipurpose centers, performance training facilities,
health/fitness centers, aquatic facilities, and outdoor complexes. Having served a portfolio of
projects totaling more than $2 billion in planned and operational facilities, SFA is called upon to
assist sports tourism destinations, private developers, parks and recreation departments and
other national/state/local government entities, and architect and engineering firms. SFA also
offers design-build and general contractor services, architectural consultations, and bid
procurement. Through our network of vendors, SFA has also secured serious discounts for
purchases of turf, hardwood, lighting, dasher boards, and other sports-specific elements. SFA
facilities provide programming for various sports and activities, such as soccer, lacrosse,
football, basketball, volleyball, baseball, softball, hockey, performance training, health/fitness,
golf, aquatics, and many more.
Since its inception in 2003, the SFA team has consulted on more than 60 operational sport,
recreation, and youth leadership centers across the country. SFA has also completed more than
100 financial forecasts and feasibility analyses for projects across the U.S. and internationally.
SFA is conservative in its market research and feasibility projections. More than 70% of the
projects analyzed by SFA result in a “Feasibility: No” or require significant changes to the
original business model, financing structure, or facility design.
Additional information can be found at www.sportadvisory.com.
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April 2012
EXECUTIVE SUMMARY
The Sports Facilities Advisory (SFA) – with expertise in developing program plans, business
plans, financial forecasts and feasibility analyses, as well as consulting, operational
management, and design – has developed a third-party feasibility study and financial analysis
for the development of an indoor, multi-sport community and recreation facility in Woodridge,
Illinois surrounding area. Woodridge Athletic Recreation Center will be situated in the community
of Woodridge in the Chicago land market. The Woodridge Park District contracted SFA to
analyze the feasibility and financial viability for the project.
SFA developed and analyzed seven unique facility models for Woodridge Athletic Recreation
Center. The seventh (and recommended) model is a 76,529 square foot facility that features a turf
field, a hardwood basketball court, three volleyball courts, six batting cages, a child watch area,
a café, and multi-purpose rooms, as well as fitness areas that include weight training, cardio
equipment, aerobics, and an elevated track. The center will be equipped to host fitness, youth
and adult recreational sports, competitive sports, tournaments, events, parties, performance
training, and more. The projected cost of construction is $15MM, not including land and site
work.
Land and site work costs depend on which of two locations the facility is built. SFA evaluated
both sites to determine whether they have the capacity to house the facility. Site 1, called the
“TIF Site,” is a 4-acre parcel of land located directly south of outdoor fields already in use for
park programs. The TIF Site may be eligible for up to $5 million in TIF subsidies. If it is chosen
and the subsidies are granted in full, SFA estimates the total cost of the project to be $13.3MM.
Site 2, called the “Orchard Site,” is a 4.5-acre plot already owned by the park system and
adjacent to a community aquatics center. Woodridge Park District already owns the land,
drastically reducing initial costs, but the site is not in a TIF district, eliminating the possibility of
the $5 million in aforementioned subsidies. If the Orchard Site is selected, SFA estimates the
total cost of the project would be $15.8MM.
The market surrounding Woodridge Athletic Recreation Center has over 1,500,000 people within a
30-minute drive time and features a median household income of $75,552, which is nearly
$26,000 or 52% higher than the national average. Sports participation rates in the area are high
relative to national averages, and – as should be expected – there are a significant number of
existing providers in the market. Each of those factors was weighed as the recommended
facility model above was developed. The data was also incorporated into SFA’s proprietary
formulas as the financial forecast (pro forma) was developed, which is detailed in the body of
this study.
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April 2012
Year 1
Year 2
Year 3
Year 4
Year 5
$ 1,599,191.61
$ 1,782,660.83
$ 2,062,563.87
$ 2,159,254.42
$ 2,333,548.86
Total Cost of Goods Sold
$
623,783.00
$
652,021.54
$
732,267.70
$
765,982.95
$
821,738.84
Total Operating Expenses
$
879,252.17
$
896,853.92
$
915,880.49
$
934,790.17
$
954,396.87
Total Revenue
Total Expenses
$ 1,503,035.17
$ 1,548,875.45
$ 1,648,148.19
$ 1,700,773.12
$ 1,776,135.71
EBITDA
$
$
$
$
$
% of Revenue
96,156.43
6%
233,785.37
13%
414,415.68
20%
458,481.31
21%
557,413.15
24%
Based on SFA’s proven system of planning, managing, and projecting facility utilization,
Woodridge Athletic Recreation Center is slated to generate $1.6MM in total revenue its first year
and expand to $2.33MM in total revenue in year five. The total cost of goods sold and operating
expenses in those respective years is $1.5MM and $1.77MM, meaning that total net is projected
to be just under $100,000 in Woodridge Athletic Recreation Center’s first year and over $550,000 in
its fifth year. It should be noted that those figures reflect earnings before interest, tax,
depreciation, and amortization (EBITDA). Because the site has not been selected, it is impossible
to project year-end cash flow, but EBITDA as a percent of revenue (6% in Year 1 and 24% in
Year 5) is within the range that signifies a viable model.
After careful consideration and comprehensive analysis of the business model, program plan,
financials, and the Park District’s vision for the Woodridge Athletic Recreation Center, the project
has been deemed by SFA to be a “Feasibility: Yes.” Please note that this finding is based on
EBITDA projections. Furthermore, the finding is predicated on minimal and an appropriate
level of debt service so that the cash flow is not hamstrung by excessive principal and interest
payments.
SFA is conservative in its market analyses, financial forecasts, and feasibility projections, with
more than 70% of the projects analyzed by SFA resulting in either a “Feasibility: No” or
requiring significant changes to the original business model, financing structure, or facility
design. Because of the comprehensive and collaborative approach during the planning,
strategy, and feasibility analysis stages – including the exhaustive analysis of numerous
potential models – the Woodridge Athletic Recreation Center project stands out as an example of a
“Feasibility: Yes.”
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April 2012
PROJECT INTRODUCTION AND METHODOLOGY
This document represents the analysis and findings
related to the development of Woodridge Athletic
Recreation Center. The Park District secured the
services of SFA to assist in the production of a
comprehensive financial forecast and associated
feasibility study. Through continual collaboration
and information sharing between the Park District
and consultant team, this document provides the
narrative behind the financial analysis and
underlying assumptions.
Vision Statement
Woodridge ARC will establish itself in
the community as the place to go for
family recreation, indoor sports, and
fun in Woodridge and the
neighboring communities. The
facility – which will function as a
high-quality indoor sports complex
but maintain the atmosphere of a
local community center – will focus
on providing a best-in-class playing
environment as well as an
unmatched experience for families,
athletes and spectators.
Project Background
On December 12, 2011, Mike Adams (Executive
Director) and Don Ritter (Superintendent of
Recreation/Deputy Director) of the Woodridge (IL)
Park District met by phone with The Sports
Facilities Advisory (SFA). This call was a follow-up
to a presentation that SFA had completed during the 2011 Athletic Business Conference & Expo
on Dec. 1. Mr. Adams attended this session and was interested in learning more about SFA’s
capabilities to assist the Woodridge Park District with its recreation center planning process.
Through that discussion, the following facts were identified:
The Woodridge Park District (WPD) had completed a preliminary community needs
assessment and determined that there is interest in a community recreation center.
The WPD was interested in evaluating the financial realities for the construction and
operation of a community recreation center.
The WPD was interested in pursuing a model that can be financially self-sustaining.
There was interest in evaluating the potential for the site to serve as a community
destination; therefore, the site and final plan may include additional spaces for other
local entities and/or retail space that could provide economic impact while working
synergistically with the community recreation center.
It was critical to the decision-making process that SFA’s study includes detailed
financial forecasts.
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Planning and Strategy
To begin the analytical process, the two sides worked through several critical strategy issues in
the development of the business model and the financial projections for Woodridge Athletic
Recreation Center; more specifically:
Preliminary demographic review and
Major marketing strategies
other market characteristics
Developing Ideal Customer
Relationships© (ICR)
Product lines & services
The business model
Local providers
Facility components & amenities
Staffing approaches
Facility design considerations
Facility differentiators
Site planning and land acquisition
Funding strategy
Projected start-up costs
Construction & pre-opening timeline
Community needs and desired impact
Potential strategic alliances
Vision
Facility utilization
This initial phase of work included discussions related to:
Transforming existing ideas into a
Identifying and strengthening resources
realistic plan
in preparation for financing
presentations
Top reasons why facilities fail to meet
forecasted revenues
Maximizing revenue per square foot
Top reasons why most developers fail to
Current trends in facility financing
raise capital
(common loan terms, rates, equity) and
involvement in the daily operations
Estimating timelines for funding,
construction/build-out, profitability,
Typical management and organizational
etc.
structures
Keys to successful facility ownership
And much more
What’s involved in raising capital for a
new facility
SFA then completed more in-depth market research to arrive at detailed pricing, team
projections and seasonality for the various sports, market demand, and market reach.
From there, SFA created and analyzed a total of seven different business and operating models
to find the best fit for the market. Based on this extensive research, SFA arrived at its
recommended model, which provided for highest and best use and highest returns. The chart
on the next page and the narrative that follows outlines models 1-6. Each of these models
provided discussion points and insights that contributed to the creation of model 7, designated
as the “final facility design.”
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April 2012
Construction
& Start-Up Cost
Models 1-6 Comparison
Year One
Year Two
Year Three
Year Four
Year Five
Cumulative
(5 Year)
Land + Site work
Hard Cost (bldg. only)
Field/Sport Equipment
FF&E
Soft Cost
Total
Total (minus land &
site work)
Revenue
Expense
EBITDA
Revenue
Expense
EBITDA
Revenue
Expense
EBITDA
Revenue
Expense
EBITDA
Revenue
Expense
EBITDA
Revenue
Expense
EBITDA
Option 1
Fitness, 2 Court
Gym, Turf
88,188 sf
$2,900,000
$12,988,563
$1,013,555
$277,830
$1,802,281
$18,982,228
Option 2
Fitness, 1 Court
Gym, Turf
75,969 sf
$2,900,000
$11,192,406
$877,000
$277,830
$1,639,205
$16,886,441
Option 3
Fitness, 2 Court
Gym, No Turf
61,188 sf
$2,900,000
$9,019,563
$915,577
$277,830
$1,441,929
$14,554,898
Option 4
Fitness, 2 Court
Gym, Synthetic
73,406 sf
$2,900,000
$10,815,719
$998,969
$277,830
$1,600,150
$16,592,667
Option 5
Fitness, 1 Court
Gym, Synthetic
61,188 sf
$2,900,000
$9,019,563
$862,414
$277,830
$1,437,074
$14,496,880
Option 6
Fitness, 1 Court
Gym, No Turf
48,969 sf
$2,900,000
$7,223,406
$779,023
$277,830
$1,278,853
$12,459,111
$16,082,228
$13,986,441
$11,654,898
$13,692,667
$11,596,880
$9,559,111
$1,808,580
$1,615,079
$193,500
$2,027,112
$1,714,834
$312,279
$2,341,198
$1,847,483
$493,715
$2,453,914
$1,917,096
$536,817
$2,645,390
$2,015,103
$630,287
$11,276,194
$9,109,595
$2,166,599
11.4%
$1,796,850
$1,577,665
$219,184
$2,014,283
$1,676,280
$338,002
$2,327,727
$1,807,919
$519,809
$2,439,769
$1,876,488
$563,281
$2,630,538
$1,973,417
$657,122
$11,209,167
$8,911,769
$2,297,398
13.6%
$1,507,410
$1,435,895
$71,514
$1,685,285
$1,527,674
$157,611
$1,956,433
$1,642,813
$313,620
$2,053,444
$1,704,522
$348,922
$2,209,225
$1,787,835
$421,389
$9,411,796
$8,098,740
$1,313,056
9.0%
$1,582,041
$1,495,447
$86,594
$1,768,786
$1,586,978
$181,808
$2,047,412
$1,705,275
$342,137
$2,146,751
$1,768,568
$378,183
$2,310,334
$1,855,284
$455,049
$9,855,324
$8,411,552
$1,443,771
8.7%
$1,570,311
$1,458,033
$112,278
$1,755,957
$1,548,425
$207,532
$2,033,941
$1,665,710
$368,231
$2,132,606
$1,727,959
$404,647
$2,295,482
$1,813,598
$481,884
$9,788,296
$8,213,726
$1,574,570
10.9%
$1,469,985
$1,422,296
$47,689
$1,635,762
$1,510,126
$125,636
$1,893,510
$1,619,764
$273,746
$1,985,842
$1,679,447
$306,395
$2,130,667
$1,758,332
$372,335
$9,115,765
$7,989,964
$1,125,801
9.0%
The chart above shows the five-year operations summary for each of the first six models developed. The following descriptions
highlight the differences in the models, the thought process behind the adaptations, the effect on usage, and the resulting
profitability. Note that for each of the models the land and site work fee was been subtracted, thus eliminating variables caused by
location and allowing for the most meaningful contrast of the facilities themselves.
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Option 1 was the first model developed. It features two basketball courts (each lined for crosscourt play on two smaller courts, which is how the majority of youth programming would be
run), an unboarded turf field (which allows for maximum flexibility to segment the field into
multiple areas, thus accommodating several activities at once and allowing for multiple sports
to run simultaneously), and a fitness center. This model is the largest and grandest of the
options, but SFA’s in-depth analysis predicted that the court space would be underutilized for
the entirety of years 1-5 based on participation rates. Overbuilt courts add cost to both
construction and ongoing utilities without significantly increasing revenue, affecting the
profitability and yielding a 5-year EBITDA ROI of 11.4%.
Option 2 mirrors Option 1 but eliminates one basketball court (and thus two smaller crosscourts). This shift significantly decreases square footage, construction costs, and operating costs,
increases the utilization percentages, and only marginally decreases revenue from
tournaments/events. The result is a 5-year EBITDA ROI of 13.6%.
Option 3 keeps the two-court model developed in Option 1 and the fitness center while
eliminating the turf component. The advantage of this model is that it results in the smallest
footprint of any of the options, thus decreasing start-up and construction costs, operating costs,
and management costs. That said, the courts would still be underutilized, the revenue streams
would decrease significantly over Option 1 and Option 2 (because the turf component would be
highly utilized), and the overall service to the community would suffer. The 5-year EBITDA
ROI is 9.0%, which signifies a low return on a relatively small investment.
Option 4 adds a court-sized synthetic floor to Option 3. Synthetic court is more suitable for field
sports than hardwood courts, but sacrifices a significant amount of playability offered by turf.
The result is a footprint close to that of Option 2 and a mix of activities similar to Option 1, but
the savings on building size, operating costs, and field/sport equipment are offset by the
decreased draw of synthetic flooring as opposed to turf. The hardwood courts would remain
underutilized and revenue on synthetic court is relatively low, resulting in a 5-year EBITDA
ROI of 8.7%, the lowest of all of the models.
Option 5 presents the next logical iteration: a facility with a single court, a single synthetic
court, and a fitness center. The footprint is the same as Option 3 (again requiring low start-up
and construction costs, operating costs, and management costs), but the underutilized court is
replaced with the more versatile synthetic flooring. This option provides flexibility and
adaptability at a low price, but the return remains at a relatively modest 10.9%
Option 6 scales down as much as possible, eliminating the multi-sport component all together
and paring down to one hardwood court and a fitness center. This option has by far the smallest
footprint and construction costs, but also limits the ability to serve a broad spectrum of the
community and returns only 9.0% of the investment over 5 years.
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Final Facility Design - Option 7
After an in-depth analysis and multiple discussions revolving around models 1-6, a seventh and
final model was designed. It is a derivative of “Option 2”, which was the most efficient model
analyzed in providing a diverse program offering while responding to the market needs of the
surrounding Woodridge market place. For this model, Woodridge Athletic Recreation Center’s
indoor facility is recommended to include one unboarded turf field flanked by a basketball court
overlaid with three volleyball courts. The turf area is designed to accommodate not only
traditional field sports such as soccer, football, and lacrosse, but also field hockey and
baseball/softball training. More details on the facility design are as follows:
Basketball court space (115’ x 85’)
o 2 cross-court functionality
Volleyball courts (three at 60’ x 30’ over
the above court space)
Unboarded turf field (180’ x 120’)
o 3 cross-field functionality
Batting cages/pitching tunnels (six at
75’ x 15’ over the turf field)
Fitness/Strength Room (100’ x 75’)
Aerobic Rooms (two at 40’ x 30’)
Fitness Locker Rooms (two at 30’ x 30’)
Elevated Jogging Track (860’ x 10’)
Child Watch Room (30’ x 30’)
Lobby/Welcome Area (30’ x 30’)
Café and Seating Area (40’ x 40’)
Multipurpose Rooms (two at 32’ x 32’,
divisible)
Staff Offices (four at 15’ x 15’)
General Office (30’ x 30’)
Outsource Space/CRC Classroom &
Computer Lab (two at 30’ x 30’)
Restrooms (three at 20’ x 20’)
Parking (estimated 230 spaces)
o 3 per 1000sf of building
Site Options
Woodridge Athletic Recreation Center will sit on one of two sites.
Site 1, called “TIF Site” for
identification purposes, is a 4-acre
parcel of land located on the
northeast corner of North Janes Ave
and 83rd St directly south of outdoor
fields already in use for park
programs. There is efficient street
access and if necessary, future
expansion is possible on the north
side of the building. The site’s
proximity to the fields allows for
shared parking and enhanced
services for residents, but the land is
privately owned and will need to
negotiate a reasonable purchase
price. The city has expressed an
initial willingness to provide a TIF
subsidy of $5 million. While formal
design has not yet begun and with it,
a site plan not yet designed, SFA has
analyzed the feasibility of a 4-acre
site for the 7 models described.
Figure 1 is a conceptual site diagram
Figure 1: Conceptual site lay-out for the “TIF Site” located at North
rd
Janes Ave and 83 St. Building is denoted in red and parking in grey.
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April 2012
demonstrating how the building footprint and parking could work. While the site is “tight,” it
can accommodate the building footprint and necessary parking.
Site 2, called “Orchard Site” for
identification purposes, is located on
the east side of North Jane Ave. just
south of the 83rd St intersection. It is a
4.5-acre plot already owned by the park
system with southern adjacency to a
community aquatics center, also
allowing for some shared parking and a
maximization of space due to each
facility’s seasonality. Expansion would
be possible to the west. The fact that the
land is already owned by the Park
District eliminates the acquisition cost,
but the site is not located in a TIF
district, making none of the $5 million
TIF subsidies available. As an
additional note, the facility and
additional parking would be developed Figure 2: Conceptual site lay-out for the “Orchard Site” located on
over existing fields that are currently in the east side of North Janes Ave south of the 83rd St intersection.
Building is denoted in red and parking in grey.
use by the park district for outdoor
programming, so that space would
likely need to be relocated. The cost for replacement of those existing fields is not factored into
the financial analysis; however, those costs are real and should be considered in site selection.
The table on the following page demonstrates a comparison of the two sites utilizing the Model
7 (Final Facility Program Design) financial forecast.
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April 2012
TIF Site
Orchard Site
Fitness, 1 Court Gym, Turf
76528.75
$3,200,000
Fitness, 1 Court Gym, Turf
76528.75
$800,000
$12,093,278
$12,093,278
$1,087,137
$1,087,137
$351,750
$351,750
Soft Cost
$1,497,754
$1,497,754
Sub Total
$18,229,920
$15,829,920
TIF Land/Site Subsidy (TBD)
($3,200,000)
$0
TIF Bldg. Subsidy (TBD)
($1,800,000)
$0
Model 7 Comparison
Land + Sitework
Construction
& Start-Up Cost
Hard Cost (building only)
Field/Sport Equipment
FF&E
PARC Grant ($2,500,000)
Total
Revenue
Expense
EBITDA
Revenue
Year Two Expense
EBITDA
Revenue
Year Three Expense
EBITDA
Revenue
Year Four Expense
EBITDA
Revenue
Year Five Expense
EBITDA
Revenue
Expense
Cumulative EBITDA
(5 Year)
Total Development ROI
Year One
Cash on Cash ROI
$0
$0
$13,229,920
$15,829,920
$1,599,192
$1,503,035
$96,156
$1,782,661
$1,548,875
$233,785
$2,062,564
$1,648,148
$414,416
$2,159,254
$1,700,773
$458,481
$2,333,549
$1,776,136
$557,413
$9,937,220
$8,176,968
$1,760,252
$1,599,192
$1,503,035
$96,156
$1,782,661
$1,548,875
$233,785
$2,062,564
$1,648,148
$414,416
$2,159,254
$1,700,773
$458,481
$2,333,549
$1,776,136
$557,413
$9,937,220
$8,176,968
$1,760,252
9.7%
11.1%
13.3%
11.1%
Based on the financial analysis, SFA recommends pursuing the TIF site given the following
factors:
- The seller of the site is reasonable and is willing to sell the site at market rate.
- The TIF subsidies are provided to aid in the development of the facility.
- The site is “tight” and the design of the building and parking can be accommodated on
the site as analyzed by SFA. This is predicated on a functional plan for storm water
retention and the development authorities providing any necessary variances and
adjustments to ordinances that will permit the development at this location.
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April 2012
Financial Forecasting
Upon being retained, SFA reviewed the Park District’s existing model, structure, and study for
the Woodridge Athletic Recreation Center project. SFA then proceeded to complete its own
comprehensive analysis of the market, existing providers, and opportunities. The forecasts for
each model and the subsequent recommendations were reached through an application of
SFA’s standard methodology for financial analysis and projections, which have been
successfully implemented and proven accurate in the development of sports complexes across
the nation. The Park District reviewed SFA’s final analysis and confirmed that it is realistic and
attainable; the result of the effort is a mutually approved, thorough financial forecast with
supporting documentation to assess the feasibility of the project.
The Woodridge Athletic Recreation Center business model will feature a product/service mix
focused on leagues, tournaments, camps, clinics, and instruction/training in sports such as
soccer, football, lacrosse, baseball, softball, basketball, and volleyball. Complementing the
sports and training programs, Woodridge Athletic Recreation Center will also offer plenty of
school-age programming and birthday parties. By combining these elements at one site, it is the
desire of the Park District to create a hub of activity for the local area and region and to provide
a full family experience that promotes player development, competition, involvement,
entertainment, and participation. Also, Woodridge Athletic Recreation Center will provide an
atmosphere of fun, healthy living, excitement, and a desire to return season after season and
year after year.
The keys to success for Woodridge Athletic Recreation Center include the Park District’s ability to
drive traffic into the facility, create an unmatched atmosphere and facility that serves as a
popular destination and gathering spot, and effectively deliver the variety of unique services
being considered. The Park District also has established and is further building relationships
within the local and regional sports community; this will attract current programs and leagues
and aid in the creation of new and exciting programs that will benefit athletes and participants
of all ages and abilities. It should be noted that the Park District is not a new operator in the
area, and it currently serves the residents with programming. For that reason, it already has a
head start in communication, pubic relations, marketing, and a track record with its customer
base.
Page 14
April 2012
PROGRAMMING AND PRODUCTS/SERVICES
Woodridge Athletic Recreation Center will be designed as a “hub” for sports programming, player
development, training, and community recreation. As such, the Park District acknowledges the
necessity for a diverse mix of products/services and the implementation of various programs and
other offerings throughout the indoor facility. By providing these various program spaces and
amenities, Woodridge Athletic Recreation Center will offer multiple athletic and recreational
activities to serve a wide range of user and community pursuits. The facility will be designed as a
cross-marketing engine to increase revenue and develop Ideal Customer Relationships©. Below is
a list of the various programs/revenue streams and product and service offerings to be included
in the first year of operation and beyond:
Soccer
o Instructional Clinics & Camps
o Drop-in Play
o Tournaments
o Leagues
o Traveling Soccer
Basketball
o Drop-in Play
o Tournaments
o Leagues
Lacrosse
o Drop-in Play
o Tournaments
o Leagues
Football
o Drop-in Play
o Tournaments
o Leagues
Baseball/Softball
o Private Lessons
o Team Rentals
o Cage Rentals
o Drop-in Play
Volleyball
o Drop-in Play
o Leagues
Fitness & Training
o Personal Training
o Group Training Classes
o Group Exercise Classes
Membership
o Program Memberships
o Day Guest Passes
Court and Field Rentals
o Full-Court/Field Rentals
o Half-Field Rentals
Birthday Parties
o Turf Sport Parties
o Baseball Parties
o General/Non-Sport Parties
Corporate & Group Events
o Corporate Events and Parties
o Large Events and Parties
o Facility Rentals
Youth Programming
o Full-Day and Half-day Camps
o Single-day Camps
o Teen Programs
o Camp Daycare
o Lock-ins
o Before and After School Programs
o Field Trips
Food & Beverage
o Concessions
o Vending
Page 15
April 2012
Projected Revenue of Products and Services
The following table illustrates the revenue (and percentage of revenue) that each product/service lends to the overall bottom line. The
specific revenue and expense projections can be found in the financial analysis section of this study and in the accompanying detailed
pro-forma. The “Projected Revenue of Products and Services” table demonstrates the diversified revenue base for Woodridge Athletic
Recreation Center and how the various contributions increase and are distributed over the first five years of operations. It is important to
note that some secondary revenue-generating opportunities (i.e. seasonal offerings per market demand) have not been included.
Projected Revenue of Products
and Services
Year 1
Year 2
Year 3
Year 4
Year 5
∆ Growth Yr. 1 to Yr. 5
$
%
$
%
$
%
$
%
$
%
$
%
Fitness Memberships
$510,972
32%
$540,026
30%
$623,730
30%
$654,916
30%
$687,662
29%
$176,690
35%
Basketball
$61,055
4%
$70,213
4%
$81,096
4%
$85,151
4%
$93,879
4%
$32,824
54%
Volleyball
$34,550
2%
$39,733
2%
$45,891
2%
$48,186
2%
$53,125
2%
$18,575
54%
Court Events (Tournaments)
$21,888
1%
$25,171
1%
$29,073
1%
$30,526
1%
$33,655
1%
$11,767
54%
Court Rentals
$45,000
3%
$49,500
3%
$54,574
3%
$54,574
3%
$57,302
2%
$12,302
27%
Competitive and Travel Soccer
$135,975
9%
$156,371
9%
$180,609
9%
$189,639
9%
$209,077
9%
$73,102
54%
Recreational/Child Development Soccer
$64,416
4%
$74,629
4%
$85,900
4%
$90,904
4%
$99,512
4%
$35,096
54%
Lacrosse
$17,100
1%
$23,665
1%
$27,333
1%
$28,700
1%
$31,641
1%
$14,541
85%
Football
$31,425
2%
$36,139
2%
$41,740
2%
$43,827
2%
$48,320
2%
$16,895
54%
Baseball/Softball
$44,830
3%
$51,555
3%
$59,545
3%
$62,523
3%
$68,931
3%
$24,101
54%
Field Rental
$76,500
5%
$84,150
5%
$88,358
4%
$88,358
4%
$92,775
4%
$16,275
21%
Birthday Parties
$32,400
2%
$37,260
2%
$43,035
2%
$45,187
2%
$49,819
2%
$17,419
54%
Performance Fitness & Training
$80,800
5%
$92,920
5%
$107,323
5%
$112,689
5%
$124,239
5%
$43,439
54%
$23,000
1%
$26,450
1%
$32,005
2%
$33,605
2%
$37,049
2%
$14,049
61%
Youth Programming
$346,351
22%
$398,304
22%
$481,947
23%
$506,045
23%
$557,914
24%
$211,563
61%
Food & Beverage
$72,930
5%
$76,577
4%
$80,405
4%
$84,426
4%
$88,647
4%
$15,717
22%
$1,599,192
100%
$1,782,661
100%
$2,062,564
100%
$2,159,254
100%
$2,333,549
100%
$734,357
46%
Total Revenue
Page 16
April 2012
Page 17
April 2012
THE MANAGEMENT TEAM
The Management Team consists of the Board of Park Commissioners, whose primary
responsibility is to set policy and oversee all financial obligations of the proposed facility. The
Board is supported by the existing Administrative Staff consisting of the Executive Director,
Deputy Director/Superintendent of Recreation, Superintendent of Finance and Personnel,
Superintendent of Park Operations and the Assistant Superintendent of Recreation; whose
primary responsibilities are to develop and administer financial, administrative, personnel and
operations procedures in compliance with the policies established by the Park Board. Facility
Management staff responsible for the day to day operations will consist of a Facility Supervisor,
Recreation Supervisor, Athletic Supervisor, Fitness Manager, and Maintenance Supervisor. The
Management Team will report to the Park Board, as currently reported for other District
facilities, on all aspects relative to the overall operational and financial performance of the
facility.
Page 18
April 2012
Market Analysis
Page 19
April 2012
FACILITY LOCATION & SITE ACCESSIBILITY
A suburb of Chicago, located primarily in DuPage County,
Woodridge is located in northeastern Illinois about 30 miles
southwest of downtown Chicago (see shaded area to the right).
Market Accessibility
Both the TIF Site and Orchard Site are located near 83rd Street between
North Janes Avenue and the Veteran’s Memorial Tollway (TIF Site is
north of 83rd, Orchard Site is south). Both locations are on/next to
already-in-use Parks and Rec pieces of land, making the facility a
natural fit in a known and established area.
Either site will allow the facility and the Park District to draw players and patrons from the
local area and region for training, leagues, tournaments, and other instructional programs such
as camps and clinics. Such market penetration is critical to facility utilization and sustainability.
Page 20
April 2012
MARKET DEMOGRAPHIC CHARACTERISTICS
Depending on the business model, different parameters are applied when analyzing a market (demographics, participation, existing
providers, etc.). For a sports and recreation facility located in a densely populated region such as the Chicago market, industry metrics
dictate that a 30-minute drive time area would serve as the “target market” from which to capture facility participants and patrons for
regular league, tournament, and training programs. It is this 30-minute demarcation that is employed when analyzing the test facility
(Woodridge Athletic Recreation Center) against existing service providers in the area and market reach for specific programming such as
soccer, lacrosse, baseball, softball, basketball, volleyball, etc.
The map above depicts Woodridge ARC surrounded by 10-, 15-, and 30-minute drivetimes. The map illustrates population
by zip code, with the darker colors representing the denser areas.
Page 21
April 2012
The map above depicts Woodridge ARC surrounded by 10-, 15-, and 30-minute drivetimes. The map illustrates median household
income by zip code, with the darker colors representing the higher income areas. Demographic data provided by Demographics Now.
Page 22
April 2012
Key Demographics
As the table to the right demonstrates,
Woodridge Athletic Recreation Center is
located in a heavily populated area.
What stands out about the
demographic factors is that the target
market surrounding Woodridge
Athletic Recreation Center is stable,
young, and affluent. The surrounding
area is expected to remain highly
populated without having to
accommodate for the influx of people
seen in many markets; the median
age in each of the drive time
circumferences analyzed is in line
with the U.S. average; and the
median household income is
significantly higher than the national
average.
Potential Sports Participation
To project the number of teams
Woodridge Athletic Recreation Center
can expect to capture from the
current market, SFA utilized local
participation rates reported by
American Sports Data, Inc. (ASD), the
National Sporting Goods Association
(NSGA), and the Sporting Goods
Manufacturers Association (SGMA).
These reports take into account only
active sports participants who play
their respective sport in an organized
format a set amount of times per
year.
Key Demographic Factors
Category
Total Population
(2011 Estimate)
Total Population
(2016 Projection)
Expected Pop. Change
(2011-2016)
Median Age
(U.S. = 36.95)
Median HH Income
(U.S. = $49,726)
10
minutes
15
minutes
30
minutes
89,902
222,932
1,564,840
89,345
221,730
1,564,448
-0.6%
-0.5%
0.0%
37.7
37.2
36
$75,667
$76,529
$75,552
Sports Participation - 30-minute Drivetime
Baseball
Registered
Participant %
5.1%
Potential
Participants
79,024
Basketball
12.7%
199,126
Football
5.1%
79,416
Soccer
5.3%
82,937
Softball
7.9%
123,622
Volleyball
4.3%
66,506
Futsal
2.4%
37,165
Sport
Lacrosse
1.1%
17,213
* Note: existing providers are not factored into this “pool” of
participants. The “potential participants” are the number of
individuals that the facility and the management team could
target for the respective activities. The actual participants
would result from a closing percentage of these “potential
participants.”
Page 23
April 2012
•
EXISTING PROVIDER ANALYSIS
As can be expected in a market of this size with such favorable key demographic factors, there
are a significant number of existing providers in the area. In order to determine the share of the
market that Woodridge Athletic Recreation Center can expect to capture, SFA performed an indepth analysis of the local providers. That analysis is based on the following factors:
•
•
•
•
•
•
Proximity to existing providers
Sports and Programs offered relative to existing providers
Other services offered
Pricing advantages
Facility quality, aesthetics, and amenities
Existing providers within the desired demographic
Based on an indoor turf, court, and fitness model, Woodridge Athletic Recreation Center must
consider five primary categories of similar providers: 1) Existing Turf Providers; 2) Existing
Court Providers; 3) Existing BB/SB Training Providers; 4) Existing Fitness Providers; and 5)
Existing YMCA/Rec Centers. A provider map for each of those categories can be found on the
pages that follow.
Page 24
April 2012
Woodridge ARC
Drive time (30 mins)
Turf
1. Ditka’s Sports Dome
2. Seven Bridges Ice Arena
3. Darien Sportsplex
4. Westmont Yard Indoor Sports
5. Bo Jackson Elite Sports
6. Ackerman SFC (Glen Ellyn)
7. Players Indoor Sports Center
8. The Max
9. Bridgeview Sports Dome
10. Sport Zone Family Fun Center
11. Just for Kicks
12. Elite Sports Performance
13. PlayUSA Indoor
14. ChiTown Futbol
15. Finish Strong Indoor Sportsplex
16. Chicago Sports Zone
17. Sportsplex St Charles
Page 25
April 2012
Woodridge ARC
Court
1. Bulls/Sox Training Academy
2. Sunsetters Volleyball
3. Walker Athletics
4. Ackerman Sports & Fitness
Center
5. Players Indoor Sports Center
6. The Max
7. Wheaton Park CAC
8. Illinois Basketball Academy
9. Great Lakes Volleyball Center
10. Sugar Grove Sports Center
Page 26
April 2012
Woodridge ARC
Baseball/Softball Training
1. Perfect Swing
2. Bulls/Sox Training Academy
3. Quarry Fieldhouse
4. Bo Jackson Elite Sports
5. Ackerman Sports & Fitness
6. The Max
7. Bridgeview Sports Dome
8. Naperville Baseball Academy
9. Centerfield Sports Academy
10. Elite Sports Performance
11. Finish Strong Indoor Sportsplex
Page 27
April 2012
Woodridge ARC
Fitness
1. Curves
2. LA Fitness
3. Blast Fitness
4. Women’s Workout World
5. X Sport Fitness
6. Edward Health & Fitness
7. Curves
8. Cardinal Fitness
9. Walker Athletics
10. Midtown Athletic Club
11. Good Samaritan Hospital HWC
12. ATI Fitness Center
13. Lifetime Fitness
14. Five Seasons Family Sports Club
15. Edward Health & FitnessNaperville
16. Anytime Fitness
17. Lifetime Fitness
18. LifeStart Central Park Athletic
Club
19. Curves
Page 28
April 2012
Woodridge ARC
YMCA
1. Indian Boundary YMCA (Downers
Grove)
2. Kroeler Family YMCA (Naperville)
3. YMCA Sports Complex
Recreation Centers
1. Darien Park District Fitness Center
2. Bolingbrook Annerino Comm.
Center
3. Lemont Park District CORE
4. Lisle Community Park Fitness
Center
5. Downers Grove Park District Rec
Center
6. Bolingbrook Park District RAC
7. Ackerman SPC (Glen Ellyn)
Page 29
April 2012
EXISTING TURF PROVIDERS
Ditka's Sports Dome (www.ditkasportsdome.com)
Located approximately 4 minutes away in Bolingbrook, Ditka’s Sports Dome features a 70,000
square foot dome with an unboarded turf field and a 44 station, 2-deck driving range.
Seven Bridges Ice Arena (www.sevenbridgesicearena.com )
Located approximately 6 minutes away in Woodridge, Seven Bridges Ice Arena features two ice
sheets and one small unboarded turf field used for programs including Lil’ Kickers.
Darien Sportsplex (www.dariensportsplex.com)
Located approximately 10 minutes away in Darien, Darien Sportsplex features three ice sheets
and a 185’ x 85’' turf field. The facility is owned by the park district.
Westmont Yard Indoor Sports (www.westmontyard.com)
Located approximately 12 minutes away in Westmont, Westmont Yard Indoor Sports features a
270’ x 180’ field that divides into three 180’ x 90’ fields and is used for a variety of indoor sports.
Bo Jackson’s Elite Sports (www.bojacksonselitesports.com)
Located approximately 19 minutes away in Lockport, Bo Jackson’s Elite Sports features two
major league-size infields with adjustable base paths, a multipurpose field measuring 110’ x
195’, a three-lane 80-yard track, state of the art agility and speed training area, and 12 batting
cages with professional clay mounds. The facility also has a team store, concessions, and rehab
clinic.
Ackerman Sports & Fitness Center (www.ackermansportsandfitnesscenter.com)
Located approximately 22 minutes away in Glen Ellyn, Ackerman Sports & Fitness Center is an
88,000 square foot multi-purpose facility, including a 180’ x 120’ multi-purpose turf field, three
high school-size wood basketball courts, two 30-foot climbing rocks, batting cages, an elevated,
multi-lane walking/running/jogging track, a 7,000 SF fitness center, multipurpose rooms for
fitness classes, locker rooms, and meeting rooms. The facility is owned by the park district.
Players Indoor Sports Center (www.playersindoor.com)
Located approximately 22 minutes away in Naperville, Players Indoor Sports Center is a 95,000
SF facility featuring three 200’ x 100’' boarded fields, one unboarded 80’ x 50’ training field, and
two volleyball courts.
McCook Athletic & Expo (MAX) (www.max-mccook.com)
Located approximately 22 minutes away in McCook, MAX is a 125,000 SF facility that features
two full-sized basketball courts, volleyball courts, and a baseball/softball academy, and is
headlined by a 408’ x 159’ full unboarded field that can be divided into four 159’ x 102’ pods.
MAX is Chicago's first full-sized outdoor field under roof; it is positioned under a 40’ clear-span
roof.
Bridgeview Sports Dome (www.bridgeview-il.gov/dome/)
Located approximately 24 minutes away in Bridgeview, Bridgeview Sports Dome is a 90,000 SF
facility featuring a variety of sporting activities, plus free chipping and putting areas. The Dome
can be reserved for indoor soccer, softball, baseball, whiffle ball, football practice or leagues,
seminars, meetings and parties.
Page 30
April 2012
Sport Zone Family Fun Center (www.sportzonepark.com)
Located approximately 26 minutes away in Aurora, Sport Zone Family Fun Center is a dome
structure featuring an unboarded field used for a variety of sports.
Just for Kicks (www.justforkicks.org)
Located approximately 27 minutes away in Plainfield, Just for Kicks is a 50,000 SF facility that
features two 100’ x 200’ fields and two full-size outdoor fields behind the building.
Elite Sports Performance (www.espcomplex.com)
Located approximately 27 minutes away in Oswego, Elite Sports Performance features two
unboarded 110’ x 65’' turf fields, seven baseball tunnels, and a sports performance training area.
PlayUSA Indoor (www.playusasoccer.org)
Located approximately 28 minutes away in Aurora, PlayUSA Indoor features a 90’' x 40’' field
and a 188’' x 90’' field. Both are unboarded.
ChiTown Futbol (www.chitownfutbol.com)
Located approximately 30 minutes away in Chicago, ChiTown Futbol features two 171’ x 65’'
and one 80’ x 50’' boarded turf field.
Finish Strong Indoor Sportsplex (www.finishstrongsportsplex.com)
Located approximately 31 minutes away in West Chicago, Finish Strong Indoor Sportsplex is a
baseball training-focused facility with one 160’ x 75’ boarded turf field, one 95’ x 84’' open turf
field used for baseball, drop down tunnels, and training areas. Soccer and lacrosse programs are
also featured.
Chicago Sports Zone (www.chicagosportszone.com)
Located approximately 35 minutes away in Melrose Park, Chicago Sports Zone features two
185’ x 85’ boarded fields, a small fitness center, and a bar.
SportsPlex St. Charles (www.sportsplexstc.net)
Located approximately 46 minutes away in St. Charles, SportsPlex St. Charles is a 62,500 SF
facility featuring two indoor soccer fields, locker rooms, showers, a soccer store, a concession
stand, a sports performance center, and a dance studio.
Page 31
April 2012
EXISTING COURT PROVIDERS
Bulls Sox Training Academy (www.bullssoxacademy.com)
Located approximately 9 minutes away in Lisle, Bulls Sox Training Academy is a 57,000 SF
facility owned by the Chicago Bulls and Chicago White Sox and features three courts, baseball
training with 13 tunnels, and a sports fitness center.
Sunsetters Volleyball Facility (www.sunsettersvbc.org)
Located approximately 11 minutes away in Woodridge, Sunsetters Volleyball Facility features
four volleyball sport courts.
Walker Athletics and Sports Performance Complex (www.walkerathletic.com)
Located approximately 14 minutes away in Lisle, Walker Athletics and Sports Performance
Complex is a 100,000 SF facility featuring four hardwood basketball courts and a 12,000 SF
fitness center.
See above.
Players Indoor Sports Center (www.playersindoor.com)
See above.
See above.
Wheaton Park Central Athletic Center (www.wheatonparkdistrict.com)
Located approximately 23 minutes away in Wheaton, Wheaton Park Central Athletic Center
features four hardwood basketball courts, three volleyball courts, two batting cages, and party
rooms.
Illinois Basketball Academy (www.ibahoops.com)
Located approximately 24 minutes away in Naperville, Illinois Basketball Academy features
four synthetic courts and competitive basketball programs.
Great Lakes Volleyball Center (www.greatlakescenter.com)
Located approximately 27 minutes away in Aurora, Great Lakes Volleyball Center is a 60,000
SF facility featuring eight volleyball courts, a training room, a weight training facility, a 10,000
SF mezzanine, and a team store.
Sugar Grove Sports Center (www.sg-sports.com)
Located approximately 41 minutes away in Sugar Grove, this facility features two-basketball
courts and baseball training.
Page 32
April 2012
EXISTING BASEBALL AND SOFTBALL TRAINING PROVIDERS
Perfect Swing (www.perfectswingil.com)
Located approximately 6 minutes away in Darien, Perfect Swing features a 38,000 SF training
facility.
Bulls Sox Training Academy (www.bullssoxacademy.com)
See above.
The Quarry Fieldhouse (www.quarryfieldhouse.com)
Located approximately 15 minutes away in Romeoville, The Quarry Fieldhouse features a large
open turf area for training and multiple baseball tunnels.
Bo Jackson’s Elite Sports (www.bojacksonselitesports.com)
See above.
See above.
See above.
Bridgeview Sports Dome (www.bridgeview-il.gov)
See above.
Naperville Baseball Academy (www.5toolschool.com)
Located approximately 24 minutes away in Naperville, Naperville Baseball Academy is a 7,200
SF facility featuring seven tunnels.
Centerfield Sports Academy (www.centerfieldsportsacademy.com)
Located approximately 24 minutes away in Naperville, Centerfield Sports Academy features
three auto cages, four tunnels, four mound areas, and a 120’ x 50' infield space.
Elite Sports Performance (www.espcomplex.com)
See above.
Finish Strong Indoor Sportsplex (www.finishstrongsportsplex.com)
See above.
Page 33
April 2012
EXISTING YMCA AND REC CENTERS
Indian Boundary YMCA (www.ymcachicago.org/indianboundary)
Located approximately 13 minutes away in Downers Grove, Indian Boundary YMCA features a
fitness center, three courts, a walking track, a six-lane pool, a rock wall, and a skate park.
Kroeler Family YMCA (www.ymcachicago.org/kroehler)
Located approximately 17 minutes away in Naperville, Kroeler Family YMCA features a fitness
center with classes, an indoor track, a gym, and aquatics.
YMCA Sports Complex (www.ymcachicago.org/ysportscomplex)
Located approximately 25 minutes away in Naperville, YMCA Sports Complex features five
synthetic basketball courts, a walking track, and cardio and weight equipment.
Darien Park District Fitness Center (www.darienparks.com/FitnessCenter.aspx)
Located approximately 9 minutes away in Darien, Darien Park District Fitness Center features a
3,900 SF fitness center.
Bolingbrook Annerino Community Center (www.bolingbrookparks.org)
Located approximately 10 minutes away in Bolingbrook, Bolingbrook Annerino Community
Center features a Lifestyles fitness center, a gymnastics a, dance, rock wall, and a preschool.
Lemont Park District CORE Fitness & Aquatic Complex (www.lemontparks.org)
Located approximately 10 minutes away in Lemont, Lemont Park District CORE Fitness &
Aquatic Complex features a fitness center, indoor/outdoor pool, 21,000 SF three-court gym, an
elevated track, and massage therapy.
Lisle Community Park Fitness Center (www.lisleparkdistrict.org)
Located approximately 12 minutes away in Lisle, Lisle Community Park Fitness Center features
a fitness center, with cardio and classes.
Downers Grove Park District Rec Center (www.dgparks.org/facilities/recreation-center.htm)
Located approximately 13 minutes away in Downers Grove, Downers Grove Park District Rec
Center is a 69,000 SF facility featuring a fitness center, 20,000 SF three-court gym, an elevated
track, and a multi-purpose center.
Bolingbrook Park District Recreation & Aquatic Complex (www.bolingbrookparks.org)
Located approximately 14 minutes away in Bolingbrook, this complex features a fitness center
with aerobic studios, indoor/outdoor aquatics, a 16,000 SF gym, and multipurpose rooms.
See above.
Page 34
April 2012
EXISTING FITNESS PROVIDERS
Curves (www.curves.com)
Located approximately 4 minutes away in Darien, Curves features fitness for women only.
LA Fitness (www.lafitness.com)
Located approximately 4 minutes away in Bolingbrook, LA Fitness features fitness, a basketball
court, classes, and an indoor pool.
Blast Fitness (www.signup.myiclubonline.com)
Located approximately 6 minutes away in Downers Grove, Blast Fitness features fitness for
$10/month and fitness with classes and tanning for $20/month.
Women's Workout World (www.w3body.com)
Located approximately 7 minutes away in Downers Grove, Women's Workout World features
fitness for women only.
X Sport Fitness (www.xsportfitness.com)
Located approximately 7 minutes away in Darien, X Sport Fitness features fitness, classes, a pro
shop, and tanning for $20/month.
Edward Health & Fitness (www.edward.org/fitness)
Located approximately 8 minutes away in Woodridge, Edward Health & Fitness features
fitness, an indoor track, courts, classes, a spa, aquatics, and retail.
Located approximately 12 minutes away in Westmont, Curves features fitness for women only.
Cardinal Fitness (www.charterfitness.com)
Located approximately 13 minutes away in Westmont, Cardinal Fitness features fitness for
$10/month at a single location or $20/month at all locations.
Walker Athletics and Sports Performance Complex (www.walkerathletic.com)
See above.
Midtown Athletic Club (www.midtown.com)
Located approximately 15 minutes away in Willowbrook, Midtown Athletic Club features
fitness, indoor tennis, an indoor track, one court, an indoor pool, a spa, and a pro shop.
Good Samaritan Hospital Health and Wellness Center (www.advocatehealth.com)
Located approximately 15 minutes away in Downers Grove, Good Samaritan Hospital Health
and Wellness Center is a 90,000 SF fitness club with three indoor pools, an indoor track, a fitness
and weight room, three group fitness rooms, and a basketball court.
ATI Fitness Center (www.atipt.com)
Located approximately 15 minutes away in Downers Grove, ATI Fitness Center features fitness
and classes for $25/month.
Page 35
April 2012
Lifetime Fitness (www.clubs.lifetimefitness.com)
Located approximately 15 minutes away in Romeoville, Lifetime Fitness features fitness,
classes, an indoor pool, an outdoor pool, a court, a rock wall, racquetball, and a spa.
Five Seasons Family Sports Club (www.fiveseasonssportsclu.reachlocal.com)
Located approximately 15 minutes away in Burr Ridge, Five Seasons Family Sports Club
features fitness, indoor tennis, a spa, and a pool.
Edward Health & Fitness (www.edward.org/fitness)
Located approximately 16 minutes away in Naperville, Edward Health & Fitness features
fitness, an indoor track, courts, classes, a spa, aquatics, and retail.
Anytime Fitness (www.anytimefitness.com)
Located approximately 16 minutes away in Naperville, Anytime Fitness features 24 hour
fitness.
Lifetime Fitness (www.clubs.lifetimefitness.com)
Located approximately 16 minutes away in Burr Ridge, Lifetime Fitness features fitness, classes,
an indoor pool, an outdoor pool, a court, a rock wall, racquetball, and a spa.
LifeStart Central Park Athletic Club (www.lifestart.net)
Located approximately 16 minutes away in Lisle, LifeStart Central Park Athletic Club features
fitness, an indoor pool, classes, and a court.
Located approximately 17 minutes away in Naperville, Curves features fitness for women only.
Page 36
April 2012
SUMMARY OF EXISTING SERVICE PROVIDERS
Due to the broad scope of activities Woodridge Athletic Recreation Center will offer its users, the
facility encounters a significant number of existing providers in both the “immediate trade
area,” defined as a 15-minute drive time, and the “local trade area,” defined as a 30-minute
drive time.
●
●
●
The 15-minute drive time is used to determine which existing
‘Immediate’ Trade Area =
providers will have the greatest impact on the operations of
15 minutes
Woodridge Athletic Recreation Center due to the fact that they
‘Local’ Trade Area =
are, for all intents and purposes, neighbors. A 30-minute drive
30 minutes
time is the industry standard “local trade area” for a sports
● ● ●
facility, as patrons will typically drive approximately 1/3 of
the time that they will actually spend at the facility. Given that the typical stay for a patron at a
sports facility is 1 ½ hours (60 minutes for competition or training plus 15 minutes warm-up
and 15 minutes post event or workout); this means that patrons will typically drive 30 minutes
each way.
The existing provider drive time circumference for fitness facilities is smaller. The industry
standard for identifying existing providers is an 8-minute drive time, but SFA uses a 10- and a
15-minute range to achieve conservative, realistic estimates of market share.
It is critical to understand that there is a significant difference between the quantity of existing
providers and the quality of existing providers. Chicago land is a large, densely populated area,
and it should come as no surprise that there are a wide range of existing providers in the realms
of sports, recreation, and fitness. SFA’s practice is to identify every existing facility and to weigh
each one based on quality. The result is an accurate determination of participation and market
retention.
In the court market, four of the existing providers are top-tier facilities: BullSox, Walker, IBA,
and YMCA Sports Complex. These existing providers headline a list of 14 facilities with court
programming (fitness providers with courts are not included), leaving a significant opening to
draw basketball players from the local trade area. Based on participation rates and opportunity,
Woodridge Athletic Recreation Center can expect to host 120 basketball teams and 36 volleyball
teams in its first year, bringing in a majority of the $162,500 in forecasted court revenue.
In the turf market, another four existing providers are top-tier facilities: Ackerman, Players
Indoor, The Max, and ChiTown. These existing providers lead a group of 14 facilities, again
leaving a large opportunity for Woodridge Athletic Recreation Center. Year one should see 167
soccer teams, 81 football teams, and 22 lacrosse teams enter the facility, contributing to $325,400
in forecasted turf revenue.
Baseball and Softball training facilities exhibit the highest quality for traditional sports
opportunities in the market, with four out of nine facilities qualifying as top-tier existing
providers. Although Perfect Swing, BullSox, Bo Jackson’s Elite Sports, and Quarry Fieldhouse
will all draw a significant amount of the market, the participation, interest, and spending rates
in baseball/softball are high enough to forecast that teams, leagues, memberships, lessons,
camps, and rentals will yield $44,800 in revenue.
Page 37
April 2012
Fitness facilities in the 15-minute local trade area are both dense and high in quality. LA Fitness,
Edward Health and Fitness, Walker, Midtown, Good Samaritan, Lifetime, and Five Seasons are
all head-of-class, but Woodridge Athletic Recreation Center will be able to capitalize on its key
differentiators and unique positioning to generate over $590,000 worth of membership and
fitness/training revenue in its first year.
In summary, Woodridge Athletic Recreation Center will benefit from the strong size of the market,
density of the population, sizeable participation rates, and high income levels in the area. While
there are a significant number of existing providers, there is room for a thoughtfully planned,
well-managed facility to run a profitable operation with court, turf, and fitness components at
the core of the business.
In order to ensure that profitability, Woodridge Athletic Recreation Center will need to focus on
how it differentiates itself from existing providers. This can be accomplished through
programming and amenities as well as the quality, cleanliness, and level of customer service. In
order to protect and improve upon Woodridge Athletic Recreation Center’s initial market position,
the experience at this facility must be superior to that of any existing providers in the area, as
well as any future facilities. As Woodridge Athletic Recreation Center becomes successful, other
entrepreneurs could begin to consider creating a similar facility, which would further increase
the number providers in the market. The physical structure and products of the facility could be
created with the appropriate resources. However, the experience within the walls will be the
greatest barriers of entry for potential new providers.
Page 38
April 2012
Financial Analysis
Page 39
April 2012
SUMMARY OF FINANCIAL PROJECTIONS
Operational revenues were accounted for based on SFA’s proven metrics for calculating the
number of individuals and teams within the facility’s radius of influence and the percentage of
that market that Woodridge Athletic Recreation Center will capture.
Programming Revenues & Expenses
The overall operating budget is generally a component of the overall service philosophy of the
facility’s primary purpose. The following revenues and expenses are based on observations of
comparable facilities, stakeholder interviews, market research, and industry leading practices
utilizing proprietary forecasting formulas. To meet the following projections, SFA and the Park
District recognize that the facility must:
1. Implement a mix of program elements that generate revenue, while attracting a wide
range of age groups to accommodate the needs of families, children, teens, and adults, as
well as varying levels of competition. The programming will be targeted to maximize
youth sports and training activities during peak times and secondary markets (adults,
seniors, corporations, etc.) during non-peak times.
2. Implement a marketing plan while leveraging the existing park district customer base
that includes proper pricing points, operating hours, and an aggressive rollout and
community outreach campaign, as well as continual brand development and industry
leading tactics to attract users post opening.
3. Employ a strong leadership team, which can plan and meet the goals of the facility and
take the right actions to attract users to the facility, sustain current members postopening, increase members and revenue-generating events, and effectively manage the
day-to-day operation.
With success in each of those three areas, Woodridge Athletic Recreation Center can expect to
achieve the revenue and expense projections outlined in the table below.
Page 40
April 2012
Total Facility Revenue & Expenses
Revenue
Year 1
Fitness Memberships
Year 2
Year 3
Year 4
Year 5
$510,972
$540,026
$623,730
$654,916
$687,662
Basketball
$61,055
$70,213
$81,096
$85,151
$93,879
Volleyball
$34,550
$39,733
$45,891
$48,186
$53,125
$21,888
$25,171
$29,073
$30,526
$33,655
Court Rentals
$45,000
$49,500
$54,574
$54,574
$57,302
$135,975
$156,371
$180,609
$189,639
$209,077
$64,416
$74,629
$85,900
$90,904
$99,512
Lacrosse
$17,100
$23,665
$27,333
$28,700
$31,641
Football
$31,425
$36,139
$41,740
$43,827
$48,320
Baseball/Softball
$44,830
$51,555
$59,545
$62,523
$68,931
Field Rental
$76,500
$84,150
$88,358
$88,358
$92,775
Birthday Parties
$32,400
$37,260
$43,035
$45,187
$49,819
$80,800
$92,920
$107,323
$112,689
$124,239
$0
$0
$0
$0
$0
$23,000
$26,450
$32,005
$33,605
$37,049
$346,351
$398,304
$481,947
$506,045
$557,914
Secondary Areas
$0
$0
$0
$0
$0
Food & Beverage
$72,930
$76,577
$80,405
$84,426
$88,647
$1,599,192
$1,782,661
$2,062,564
$2,159,254
$2,333,549
Year 1
Year 2
Year 3
Year 4
Year 5
Rockwall
Youth Programming
Total Revenue
Expenses
Fitness Memberships
$134,804
$125,109
$140,878
$147,344
$154,053
Basketball
$38,465
$43,533
$50,165
$52,673
$57,945
Volleyball
$14,299
$16,047
$18,481
$19,405
$21,335
$8,425
$8,880
$10,065
$10,530
$11,450
$0
$0
$0
$0
$0
$45,129
$50,335
$58,131
$61,037
$67,286
$28,527
$36,314
$41,636
$44,203
$48,095
Lacrosse
$8,198
$10,751
$12,313
$12,928
$14,138
Football
$13,181
$14,796
$17,020
$17,871
$19,625
Baseball/Softball
$13,053
$14,495
$16,742
$17,579
$19,381
$0
$0
$0
$0
$0
Birthday Parties
$13,716
$13,013
$14,909
$15,654
$17,125
$50,096
$39,210
$45,288
$47,552
$52,427
$0
$0
$0
$0
$0
$3,450
$3,692
$4,040
$4,194
$4,441
$209,290
$230,538
$255,028
$265,060
$281,987
Secondary Areas
$0
$0
$0
$0
$0
Food & Beverage
$43,150
$45,308
$47,573
$49,952
$52,449
$623,783
$652,022
$732,268
$765,983
$821,739
Court Rentals
Field Rental
Rockwall
Youth Programming
Total Cost of Goods Sold
Page 41
April 2012
Gross Margin
$975,409
$1,130,639
$1,330,296
$1,393,271
$1,511,810
61%
63%
64%
65%
65%
Facility Expenses
$339,956
$346,819
$353,830
$360,939
$368,215
Management Payroll
$422,600
$431,052
$439,673
$448,467
$457,436
Payroll Taxes/Benefits/Bonus
$116,696
$118,983
$122,377
$125,385
$128,746
Total Operating Expenses
$879,252
$896,854
$915,880
$934,790
$954,397
EBITDA
$96,156
$233,785
$414,416
$458,481
$557,413
6%
13%
20%
21%
24%
$96,156
$233,785
$414,416
$458,481
$557,413
% of Revenue
% of Revenue
Total Net Income
As demonstrated, success in programming, marketing, and leadership will result in a sizeable
return on investment for the operating company. Earnings before interest, tax, debt, and
amortization are expected at 6% in year 1 and projected to balloon to 24% in year 5.
The Park District will assume debt service for the capital improvement from existing funds. The
debt service is excluded from the operational pro forma EBITDA (NOI) projections.
Page 42
April 2012
Payroll
The following table represents the estimated payroll structure required for the programming at
Woodridge Athletic Recreation Center:
Facility Management Payroll Summary
Year 1
Year 2
Year 3
Year 4
Year 5
Facility Supervisor (Director of Operations)(FT)
$55,000
$56,100
$57,222
$58,366
$59,534
Asst. Facility Supervisors (2 - PT)
$48,000
$48,960
$49,939
$50,938
$51,957
Athletic Supervisor (Program Director)(FT)
$43,000
$43,860
$44,737
$45,632
$46,545
Recreation Supervisor @ 50% (Kids Squad/Camps)(FT)
$21,840
$22,277
$22,722
$23,177
$23,640
Fitness Manager (FT)
$40,000
$40,800
$41,616
$42,448
$43,297
Marketing & PR Assistant
$18,720
$19,094
$19,476
$19,866
$20,263
Facility Maintenance Supervisor (FT)
$37,000
$37,740
$38,495
$39,265
$40,050
Maintenance (Grounds) @ 50% of Payroll (FT)
$18,720
$19,094
$19,476
$19,866
$20,263
Maintenance Custodial l (2-PT)
$33,280
$33,946
$34,625
$35,317
$36,023
Registration/Customer Service Representative (FT)
$37,440
$38,189
$38,953
$39,732
$40,526
Registration/Customer Service Representative (PT)
$38,400
$39,168
$39,951
$40,750
$41,565
$391,400
$399,228
$407,213
$415,357
$423,664
Subtotal Facility Management
Page 43
April 2012
Total Payroll Summary
Pre-Open
Year 1
Year 2
Year 3
Year 4
Year 5
Facility Supervisor (Director of Operations)(FT)
$27,500
$55,000
$56,100
$57,222
$58,366
$59,534
Asst. Facility Supervisors (2 - PT)
$24,000
$48,000
$48,960
$49,939
$50,938
$51,957
Athletic Supervisor (Program Director)(FT)
$21,500
$43,000
$43,860
$44,737
$45,632
$46,545
Recreation Supervisor @ 50% (Kids Squad/Camps)(FT)
$10,920
$21,840
$22,277
$22,722
$23,177
$23,640
Fitness Manager (FT)
$20,000
$40,000
$40,800
$41,616
$42,448
$43,297
Marketing & PR Assistant
$9,360
$18,720
$19,094
$19,476
$19,866
$20,263
Facility Maintenance Supervisor (FT)
$9,250
$37,000
$37,740
$38,495
$39,265
$40,050
Maintenance (Grounds) @ 50% of Payroll (FT)
$4,680
$18,720
$19,094
$19,476
$19,866
$20,263
Maintenance Custodial l (2-PT)
$8,320
$33,280
$33,946
$34,625
$35,317
$36,023
Registration/Customer Service Representative (FT)
$3,120
$37,440
$38,189
$38,953
$39,732
$40,526
Registration/Customer Service Representative (PT)
$3,200
$38,400
$39,168
$39,951
$40,750
$41,565
$141,850
$391,400
$399,228
$407,213
$415,357
$423,664
Human Resources Generalist - PT (Additional Hours)
$2,600
$10,400
$10,608
$10,820
$11,037
$11,257
Finance Assistant (A/P) - PT (Added Position)
$5,200
$20,800
$21,216
$21,640
$22,073
$22,515
$0
$0
$0
$0
$0
$0
Subtotal Finance/HR/IT Payroll
Fitness Membership Coordinator (Performed by Fitness
Mgr.)
$7,800
$31,200
$31,824
$32,460
$33,110
$33,772
$0
$0
$0
$0
$0
$0
Court Coordinator (Basketball)
$1,526
$6,106
$7,021
$8,110
$8,515
$9,388
Court Coordinator (Volleyball)
$864
$3,455
$3,973
$4,589
$4,819
$5,312
Court Coordinator (Tournaments)
$274
$1,094
$1,259
$1,454
$1,526
$1,683
Turf Coordinator (Traveling Soccer)
$3,399
$13,598
$15,637
$18,061
$18,964
$20,908
Turf Coordinator (Recreation Soccer)
$1,610
$6,442
$7,463
$8,590
$9,090
$9,951
Turf Coordinator (Lacrosse)
$428
$1,710
$2,367
$2,733
$2,870
$3,164
Turf Coordinator (Football)
$786
$3,143
$3,614
$4,174
$4,383
$4,832
$1,121
$4,483
$5,155
$5,955
$6,252
$6,893
$0
$0
$0
$0
$0
$0
$810
$3,240
$3,726
$4,304
$4,519
$4,982
Corporate Events Management
$0
$0
$0
$0
$0
$0
Concessions Manager
$0
$0
$0
$0
$0
$0
$10,817
$43,270
$50,215
$57,969
$60,938
$67,113
$3,415
$40,977
$32,149
$33,630
$34,735
$35,877
Traveling Soccer Staff
$0
$0
$0
$0
$0
$0
Recreational Soccer Staff
$0
$0
$0
$0
$0
$0
Basketball Staff
$407
$4,884
$5,617
$6,488
$6,812
$7,510
Volleyball Staff
$0
$0
$0
$0
$0
$0
$91
$1,094
$1,259
$1,454
$1,526
$1,683
Lacrosse Staff
$0
$0
$0
$0
$0
$0
Football Staff
$0
$0
$0
$0
$0
$0
Baseball/Softball Staff
$0
$0
$0
$0
$0
$0
Rock Wall Staff
$0
$0
$0
$0
$0
$0
$360
$4,320
$2,208
$2,429
$2,550
$2,678
Subtotal Facility Management
IT (TBD)
Turf Coordinator (Baseball/Softball)
Adventure Area Management
Birthday Party Management
Subtotal Program Management Payroll
Fitness Membership Attendant and Sales Staff
Court Events Staff
Birthday Party Staff
Page 44
April 2012
Indoor Concession Staff
$1,266
$15,194
$15,953
$16,751
$17,589
$18,468
$10,682
$128,185
$132,031
$135,991
$140,071
$144,273
$438
$5,250
$5,408
$5,570
$5,737
$5,909
$0
$0
$0
$0
$0
$0
$16,659
$199,904
$194,624
$202,313
$209,020
$216,398
$0
$0
$0
$0
$0
$40,400
$28,060
$32,409
$34,030
$37,518
Traveling Soccer Camp/Clinic Instructor
$1,969
$2,264
$2,615
$2,746
$3,027
Recreation Soccer Camp/Clinic Instructor
$4,904
$5,777
$6,599
$7,106
$7,657
Lacrosse Camp/Clinic Instructor
$1,500
$1,725
$1,992
$2,092
$2,306
Football Camp/Clinic Instructor
$656
$755
$872
$915
$1,009
Baseball Soccer Camp/Clinic Instructor
$7,225
$8,309
$9,597
$10,076
$11,109
Basketball Instructors
$2,569
$2,954
$3,412
$3,583
$3,950
$0
$0
$0
$0
$0
$3,000
$3,450
$3,985
$4,184
$4,613
Volleyball Academy Instructors
$0
$0
$0
$0
$0
Climbing Instructors
$0
$0
$0
$0
$0
Group Events Instructors
$0
$0
$0
$0
$0
$21,823
$25,234
$29,071
$30,702
$33,671
Traveling Soccer Referees
$18,585
$21,373
$24,686
$25,920
$28,577
Recreation Soccer Referees
$6,720
$14,026
$16,203
$17,174
$18,828
Lacrosse Referees
$2,000
$3,100
$3,581
$3,760
$4,145
Football Referees
$5,760
$6,624
$7,651
$8,033
$8,857
Basketball Officials
$18,202
$20,932
$24,177
$25,386
$27,988
Volleyball Officials
$4,240
$4,876
$5,632
$5,913
$6,519
Court Tournament Officials
$2,400
$2,760
$3,188
$3,347
$3,690
$0
$57,907
$73,691
$85,116
$89,533
$98,604
$177,126
$745,504
$774,816
$814,142
$838,659
$873,222
47%
43%
39%
39%
37%
$7,150
$6,600
$6,930
$7,277
$7,640
$8,022
$19,455
$59,164
$60,347
$61,554
$62,785
$64,041
Bonus Pool
$0
$0
$0
$0
$0
$0
Payroll Services
$0
$0
$0
$0
$0
$0
$13,550
$50,932
$51,706
$53,547
$54,959
$56,682
Payroll Taxes/Benefits/Bonus Totals
$40,155
$116,696
$118,983
$122,377
$125,385
$128,746
Total Payroll
$217,281
$862,199
$893,799
$936,519
$964,044
$1,001,968
Summer Camp & Kidz Squad Staff
Child Watch Room Staff
Maintenance Staff
Subtotal Program Staff Payroll
Fitness Membership Class Fitness Instructors (Free)
Performance Fitness Trainers/Class Instructors
Basketball Academy Instructors
Volleyball Instructors
Subtotal Instructors (COGS)
$0
Subtotal Referee/Officials (COGS)
Payroll Subtotal
% of Revenue
Health Insurance/Benefits
IMRF
Payroll Taxes (FICA)
Page 45
April 2012
Facility and Operating Expenses
The following tables represent the expenses for the facility and the operations:
Expense
Year 1
Year 2
Year 3
Year 4
Year 5
General Expenses
204-Dues & Subscriptions
$1,000
$1,020
$1,040
$1,061
$1,082
205-Education & Training (Management)
$5,000
$5,100
$5,202
$5,306
$5,412
206-Education & Training (Staff)
$1,000
$1,020
$1,040
$1,061
$1,082
209-Printing
$6,000
$6,120
$6,242
$6,367
$6,495
210-Advertising
$8,000
$8,160
$8,323
$8,490
$8,659
211-Postage
$500
$510
$520
$531
$541
212-Transportation
$500
$510
$520
$531
$541
$0
$0
$0
$0
$0
221-Utilities - Gas
$30,612
$31,224
$31,848
$32,485
$33,135
222-Utilities - Electric
$76,529
$78,059
$79,621
$81,213
$82,837
223-Utilities - Phone
$10,000
$10,200
$10,404
$10,612
$10,824
224-Utilities - Water & Sewer
$6,888
$7,025
$7,166
$7,309
$7,455
225-Utilities - Disposal
$3,000
$3,060
$3,121
$3,184
$3,247
230- Internet Expense
$2,000
$2,040
$2,081
$2,122
$2,165
$0
$0
$0
$0
$0
$500
$510
$520
$531
$541
233-Legal
$1,000
$1,020
$1,040
$1,061
$1,082
243-Fire Protection
$1,035
$1,056
$1,077
$1,098
$1,120
248-Maintenance Agreements
$9,000
$9,180
$9,364
$9,551
$9,742
252-Software Maintenance
$7,000
$7,140
$7,283
$7,428
$7,577
253-Computer Services
$5,000
$5,100
$5,202
$5,306
$5,412
254-Security Services
$2,000
$2,040
$2,081
$2,122
$2,165
$23,988
$24,468
$24,957
$25,456
$25,965
$6,000
$6,120
$6,242
$6,367
$6,495
$500
$510
$520
$531
$541
$1,000
$1,020
$1,040
$1,061
$1,082
$10,000
$10,200
$10,404
$10,612
$10,824
314-Photo ID Supplies
$2,000
$2,040
$2,081
$2,122
$2,165
321-Equipment & Supplies
$8,000
$8,160
$8,323
$8,490
$8,659
331-Janitorial Supplies
$3,000
$3,060
$3,121
$3,184
$3,247
424-Maintenance Repairs
$15,306
$15,612
$15,924
$16,243
$16,567
434-Equipment & Supplies
$10,000
$10,200
$10,404
$10,612
$10,824
436-Grounds Maintenance
$5,000
$5,100
$5,202
$5,306
$5,412
801-New Equipment
$5,000
$5,100
$5,202
$5,306
$5,412
811-Technology
$5,000
$5,100
$5,202
$5,306
$5,412
218-Contractual Services
231-Marketing Services
232-Uniforms (Staff)
257-Credit Card Expenses
258-Internet Registration Fees
272-Prof/Community Relations
Commodities
303-First Aid
311-Office Supplies
Repairs & Maintenance
Capital Outlay
Capital Replacement Program
Page 46
April 2012
CRP Sinking Fund Transfer
$50,000
$51,000
$52,020
$53,060
$54,122
$2,500
$2,550
$2,601
$2,653
$2,706
Property
$3,400
$3,468
$3,537
$3,608
$3,680
Liability & Pollution
$3,600
$3,672
$3,745
$3,820
$3,897
EPLI Rate
$1,200
$1,224
$1,248
$1,273
$1,299
Workers Compensation (Other Payroll)
$4,000
$4,154
$4,312
$4,430
$4,577
Workers Compensation (Maint. Payroll)
$3,900
$3,967
$4,046
$4,127
$4,210
$339,956
$346,819
$353,830
$360,939
$368,215
Audit Services
Audit Services
Insurance
Total Facility Expense
Page 47
April 2012
Conclusion
Page 48
April 2012
CONCLUSION & PROFESSIONAL RECOMMENDATION
To assess the likelihood of success for a multisport and multipurpose sports and recreation
facility in Woodridge, the Park District for the Woodridge Athletic Recreation Center project
contracted The Sports Facilities Advisory (SFA) to analyze the feasibility and financial viability
for the project. The basis for the project is to serve the Woodridge community by developing a
first-class sports, recreation, and training facility with an emphasis on court sports, turf sports,
fitness, and events. Woodridge Athletic Recreation Center will provide sports and recreation
opportunities for all ages with an emphasis on families including youth programming and
development, adult programs, as well as family participation and community involvement.
This feasibility analysis and the associated financial projections encompasses market research
(demographics, sports participation, existing providers, etc.) specific to this project and this
region. Additionally, this analysis details financial projections and recommendations for
operational success.
What follows are the professional conclusions, findings, and recommendations for the
Woodridge Athletic Recreation Center project:
Contributors to Project Success
For the Woodridge Athletic Recreation Center project, several positive factors can be found, and
these “Contributors to Project Success” are listed below:
Site and Location: Both sites are in an established recreational area and supported by
the city. In the case of the TIF Site, the facility could benefit from a $5 million TIF to
decrease land acquisition, site work, and building expenses and would be able to share
parking and resources with an existing Parks and Rec field space to the north. In the case
of the Orchard Site, the land would be granted to the project – decreasing land and site
work costs by roughly $2.4 million – and the facility would be erected next to an
aquatics center that has existing parking and creates a naturally beneficial adjacency and
a synergetic use of space based on seasonality.
Market and Demographics: Situated in a community with an ideal demographic
makeup, the local market can support a facility of this type and size. Despite the heavy
volume of existing providers, Woodridge Athletic Recreation Center will be able to capture
a large enough percentage of the market to sustain itself and grow into the future. The
income and spending trends in this local area are outstanding, and such demographics
bode well for a sports facility when it comes to programming mix and pricing. Chicago
has a very strong sports market and it is expected that this facility can capitalize on
interest and participation as soon as the doors open.
Construction Costs: With a projected $12-$14 million in available funding and an
additional $5 million TIF, the outlined construction cost of $16,886,441 is in line with
budget.
Park District track record: The management of the Woodridge Park District currently
operates successful programming and has a foundation of an active customer base. The
track record for delivering quality service to an already established customer base gives
any new facility or operation a head start in marketing new services.
Page 49
April 2012
Challenges to Project Success
As is the case with many start-up endeavors, there are many obstacles to overcome along the
path to creating and maintaining a sports facility that is economically viable and financially
sustainable. SFA has outlined these “Challenges to Project Success” below:
Financing: After discussing the financing of this project in more detail and based on our
expertise in planning and developing facilities – along with our vast experience in Chicago – we
feel comfortable that the $17,000,000 in secured funding will be sufficient to build the facility
regardless of the site. However, receiving the $5 million TIF from the city would change the
entire scope of operations and the speed at which the facility can expect to become sustainable
assuming an appropriately minimal level of debt service is owed.
Land and Layout: In total, the facility footprint is 4.74 acres. The TIF site is 4 acres and
the Orchard Site is 4.5 acres; given the fact that both locations offer shared parking, any
adjustments to the plan should be minor but may still be necessary.
Existing Providers: Although the market and the opportunity make this a viable facility,
there is a high density of existing providers. Both immediate and long-term success is
dependent on a strong opening, which will require a significant amount of work on the
part of the founding group and management. A detailed pre-opening plan with
measurable goals and targets must be developed to ensure that Woodridge Athletic
Recreation Center opens with the momentum it needs to be sustainable.
Conclusion, Recommendations & Next Steps
In identifying the positive contributors to success as well as acknowledging the existing
challenges listed above, SFA believes this is a very viable project and, under the correct
financing and development terms, SFA, as previously stated, formally endorses the project and
deems it to be a “Feasibility: Yes.” The financials, cash flow, and operational metrics all meet
SFA qualifications and are typical for a start-up indoor sports facility. For next steps, SFA
recommends the following:
1. Floor Plan: SFA recommends creating a detailed floor plan that can be helpful in better
analyzing the spaces of the facility and can be used by general contractors for budgetary
construction pricing. The floor plan will also be used for investor and financing
marketing material.
2. Obtain Building Cost Estimates: To further hone in on budget numbers – and possibly
lower construction costs – SFA recommends reaching out to one or more general
contractors to get more specific quotes on true building and site costs. We have seen
contractors recently get aggressive, especially in Chicago, so any reduction of
construction budgets will improve the financial numbers and lower the amount of
outside equity needed.
3. TIF Acquisition Strategy: Because the TIF is not guaranteed, SFA recommends
additional marketing material such as investment information sheets, community
information packets, funding presentations, etc.
4. Facility Development Timeline: A comprehensive development timeline including the
short term steps mentioned above as part of a more detailed, longterm, and strategic
perspective is important to the developmental success of the facility. The timeline
should include critical design, entitlement, construction, development, marketing,
branding, staffing, and operational milestones. The milestones should be accompanied
by anticipated completion dates so that it serves as a roadmap going forward. SFA
suggests utilizing this as a “living document” so that it is adjusted and modified as the
development process moves forward.
Page 50
April 2012
If steps are taken to address the issues listed above, SFA suggests that this could be a successful
facility and viable business model in Woodridge. If the Park District should determine that any
such subsequent work is needed beyond this financial forecast and feasibility study, SFA can
provide any such materials and support.
Page 51
April 2012
APPENDIX
See Supporting Documents under separate cover.
Page 52
April 2012
Page 53

Feasibility Study - Woodridge Park District

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