Strategic Master Plan For Pirate s Bay Waterpark

Transcription

1 City of Baytown, Texas Strategic Master Plan For Pirate s Bay Waterpark Final Report July 2012 Prepared by: Kimley-Horn and Associates, Inc. Contact: Mark Hatchel Suite West Royal Lane Irving, Texas (214) In Association with: Counsilman-Hunsaker Contact: Kevin Post Sunset Office Drive Suite 400 St. Louis, Missouri (314)

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3 Table of Contents Executive Summary...5 Section 1: Introduction Methodology Project Scope Existing Amenities Section 2: Market Area Demographics Population Income Age Distribution Mosaic Types Weather Summary Section 3: Area Provider Analysis Baytown, TX La Porte, TX Mont Belvieu, TX Waterparks within 50 Miles City of Houston Pools Summary Section 4: Waterpark Expansion Trends and Recommendations Defining Success Three Major Components of a Waterpark Fee Recommendation Expansion Recommendations Section 5: Expansion Concepts PHASE 1: $6,600, PHASE 2: $2,500, PHASE 3: $2,8000, Section 6: Operations Opinion of Revenue Opinion of Expenses Cash Flow Appendix A: General Limiting Conditions... i 3

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5 Executive Summary In 2012, Baytown Parks and Recreation Department retained Kimley-Horn and Counsilman-Hunsaker to develop an aquatic expansion plan to meet the growing needs of Pirates Bay waterpark. Demographics U.S. Government Census 2010 projects Baytown s population base to increase from 71,900 to 79,400 by The 0-14 age group is 31.9% of the city s population compared to the national average of 27.1%. The median age for the city is younger than the national average (32.4 compared to 36.9 respectively). Income analysis for the City of Baytown is 20% lower than the national average in regard to per capita income, and 8% lower than the national average for median household income. Other Area Aquatic Providers An investigation in the immediate area shows a clear shortage of aquatic centers of the Pirates Bay caliber. Sterling High School and Lee College both offer indoor pools but for students only. Baytown YMCA has a small outdoor 4-lane pool. City of La Porte and Eagle Pointe Golf and Recreation both offer outdoor wave pools, but no other aquatic features such as waterslides, water rides, etc. Waterparks with many attractions within 50 miles include SplashTown Waterpark (45 miles north) and Schlitterbahn Galveston Island (41 miles south). Waterpark Observations Park Walkthrough Observations: Park cleanliness and landscaping are in good condition All park features are well used Limited teen areas Adequate children's areas Consider adding timing system for mat racer More shade Island/children area Need other large shade areas More lockers Wave pool Large thrill ride Aqua Loop Free fall slide Boomerango Signage Marque sign at FlowRider Marque sign at snack bar Larger menu boards 5

6 Park Board Observations: Two large projects will bring up to 16,000 new jobs over next several years 1,000 permanent jobs City is strong financially Waterpark needs room for more guest Typically have 100+ people waiting in line Shade is good Staff initiated shade additions have worked well Staff and Patron Observations: Need more teen rides Multiple person tubes More seating and shade Covered eating area Stage Could be incorporated with the wave pool E-stop at all rides Larger guard area Misted areas Music and air conditioning at concessions Options for the Future Expanding Pirates Bay may create a win/win solution for guests and management. Adding a wave pool would add capacity, thus addressing the long line challenge. Family raft rides and thrill slides would add to the current draw of young families and the teen demographic. PHASE 1: Wave Pool and Family Raft Ride $6,600,000 PHASE 2: Boomerango and Family Raft Slide $2,500,000 PHASE 3: Aqualoop and Master Blaster $2,800,000 6

7 Cash Flow The following projections are in regard to project costs and pro forma for each of the options. 7

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9 Section 1: Introduction Methodology Project Scope Existing Amenities

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11 Section 1: Introduction Methodology This Aquatic Expansion Study is based on extensive research through the following processes: Met with representatives of the City of Baytown and representatives of Pirates Bay waterpark. Toured the site and region. Reviewed past data gathered through public forums and events. Investigated area aquatic providers to understand the amenities, programs, and fees of those facilities. Identified potential user groups through demographics of the market area. Reviewed national trends in waterpark expansion and made recommendations for the City of Baytown to consider. Project Scope The scope of this project is to: Recommend future aquatic needs to enhance entertainment value. Make projections regarding project costs and pro forma. Existing Amenities Since opening in 2010, Pirates Bay operated by Baytown Parks and Recreation is a well run waterpark in Baytown featuring: Zero-depth entry pool Large pirate themed water play center 671-foot lazy river Two large waterslide towers FlowRider surfing machine Mat racer Space bowl slide Climbing wall Crossing challenge Small rectangular pool Concession stand Year-round air conditioned meeting room Three large picnic cabanas for rentals Programming at Pirates Bay includes Dive-In Movies, Itty Bitty Beach Party, Birthday Parties, Swim Lessons, and FlowRider Surf Lessons. 11

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13 Section 2: Population Characteristics Population Mosaic Types Sports Participation Income Age Distribution Weather

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15 Section 2: Market Area Demographics Factors that can influence attendance include projections for growth/decline of population, income levels, and age groups. Market studies are used to predict how relevant products, services, and fees are to residents. The primary area is assumed as a 50-mile radius, and the service area is assumed as a 5-mile radius, both originating from Pirates Bay at 5300 East Rd., Baytown, TX. The difference between primary (50-mile market area) and service area (5-mile market area) is that destination oriented waterpark guests will customarily drive farther to use a facility of that caliber. Thus, a study of demographic patterns in the area is helpful in projecting usage rates. The resident market area has been divided into the following distance rings. Distance From Site 0 to 3 Miles 3 to 5 Miles 5 to 10 Miles 10 to 15 Miles 15 to 25 Miles 25 to 50 Miles Distance Rings Map Grimes County 105 San Jacinto County Jasper County Montgomery County 105 Hardin County 249 The Woodlands Spring Liberty County Beaumont Atascocita 45 Texas Houston Baytown Chambers County Jefferson County 73 Pasadena 124 Fort Bend County 6 Sugar Land Missouri City Pearland League City Galveston County 6 36 Brazoria County Galveston Matagorda County Source: Demographics Now 15

16 Population The following chart presents a summary of market area population with distance rings surrounding Pirates Bay. The 2010 U.S. Government Census was used to estimate the population for 2011 and to make projections for The population base for the city is projected to increase from 71,900 to 79,400 by Moreover, the entire market area is projected to increase. MARKET AREA POPULATION BY DISTANCE Population Average Annual Change Number Percent Number Percent Number Percent Number Percent Number Percent Radius (000's) of Total (000's) of Total (000's) of Total (000's) Percent (000's) Percent 0 to 3 Miles % % % % % 3 to 5 Miles % % % % % 5 to 10 Miles % % % % % Subtotal % % % % % 10 to 15 Miles % % % % % 15 to 25 Miles 1, % 1, % 1, % % % 25 to 50 Miles 2, % 3, , Subtotal 4, % 5, % 6, % % % Total (0-50 Miles) 4, % 5, % 6, % % % Baytown, TX % % Source: Demographics Now Census Tract Map of Population Density (2011) Grimes County 105 San Jacinto County Jasper County 6 Montgomery County 105 Hardin County The Woodlands Liberty County Waller County 249 Spring Atascocita Beaumont 45 Texas Houston Baytown Chambers County Jefferson County 73 Pasadena Fort Bend County 6 Sugar Land Missouri City Pearland League City Galveston County 6 36 Brazoria County Galveston 60 Matagorda County Source: Demographics Now 16

17 Income To a certain degree, the likelihood of residents to engage in municipal recreation depends on their ability to pay for admission and program fees. In the following chart, the U.S. national average is set at Index refers to the percentage higher or lower than the national average. Income analysis for the City of Baytown is 20% lower than the national average in regard to per capita income, and 8% lower than the national average for median household income. MARKET AREA INCOME Per Capita Income Median Household Income Radius Dollars Index Dollars Index 0 to 3 Miles $22, $49, to 5 Miles $21, $49, to 10 Miles $21, $52, to 15 Miles $22, $54, to 25 Miles $22, $50, to 50 Miles $28, $56, Baytown, TX $21, $48, Total U.S. $26, $52, Source: Demographics Now Census Tract Map of Median Household Income (2011) Grimes County 105 San Jacinto County Montgomery County 105 Hardin County The Woodlands Liberty County 249 Spring Beaumont Atascocita 45 Texas Houston Baytown Chambers County Jefferson County 73 Pasadena 124 Fort Bend County 6 Sugar Land Missouri City Pearland League City Galveston County 6 36 Brazoria County Galveston Matagorda County Source: Demographics Now 17

18 Age Distribution Age distribution is another population characteristic used to determine the type and level of use of any type of program. The following table provides the number of residents and the percentage of total population for each age group compared to the U.S. column, which identifies the national average. The 0-14 age group is 31.9% of the city s population compared to the national average of 27.1%. The median age for the city is younger than the national average (32.4 compared to 36.9 respectively). MARKET AREA AGE DISTRIBUTION Age 0-3 Miles 3-5 Miles 5-10 Miles Miles Miles Miles Baytown, TX Total Groups # % # % # % # % # % # % # % U.S. Under 5 4, % 3, % 5, % 23, % 113, % 325, % 6, % 6.8% 5 to 9 4, % 3, % 4, % 22, % 107, % 306, % 5, % 6.6% 10 to 14 3, % 3, % 4, % 21, % 103, % 293, % 5, % 6.7% 15 to 19 3, % 3, % 4, % 20, % 98, % 279, % 5, % 7.0% Subtotal 16, % 13, % 18, % 89, % 422, % 1,205, % 22, % 27.1% 20 to 24 3, % 3, % 4, % 19, % 93, % 261, % 4, % 7.0% 25 to 34 8, % 6, % 8, % 46, % 210, % 557, % 10, % 13.5% 35 to 44 8, % 5, % 8, % 42, % 203, % 562, % 10, % 14.0% 45 to 54 6, % 5, % 8, % 37, % 187, % 578, % 9, % 14.5% 55 to 64 5, % 4, % 5, % 26, % 132, % 395, % 6, % 11.2% 65 to 74 2, % 2, % 3, % 13, % 68, % 200, % 3, % 6.7% 75 to 84 1, % 1, % 1, % 7, % 37, % 104, % 1, % 4.3% 85 and over % % % 2, % 14, % 40, % % 1.9% TOTAL: 52, % 42, % 60, % 286, % 1,371, % 3,907, % 71, % 100% Median Age Source: Demographics Now Census Tract Map of Median Age (2011) Grimes County 105 San Jacinto County Jasper County Montgomery County 105 Hardin County The Woodlands Liberty County 249 Spring Beaumont Atascocita 45 Texas Houston Baytown Chambers County Jefferson County 73 Pasadena 124 Fort Bend County 6 Sugar Land Missouri City Pearland League City Galveston County 6 36 Brazoria County Galveston Matagorda County Source: Demographics Now 18

19 Mosaic Types The adjacent table shows types of household lifestyles in the City of Baytown as compared to the U.S. national averages. The following describes the top three Baytown lifestyles. Cultural Connections (35%) Unpretentious Individualists Opportunity seekers TV watchers Meager means Open minded Credit cards Athletic activities Limited educations Online entertainment Family Union (15%) Conservative Blue-collar jobs Union workers Family centric Price sensitive Domestic vehicles Online shoppers Cautious investors Motor sport fans Baytown, TX U.S. Pastoral Pride 1% 12.00% Family Union 15% 8.80% Middle-class Melting Pot 2% 8.70% Blue Sky Boomers 3% 8.30% Cultural Connections 35% 8.00% Booming w/confidence 8% 7.10% Autumn Years 7% 6.70% Significant Singles 2% 5.70% Singles and Starters 7% 5.30% Struggling Societies 6% 5.20% Flourishing Families 0% 4.80% Suburban Style 11% 4.30% Thriving Boomers 0% 3.20% Power Elite 0% 3.00% Young, City Solos 0% 2.60% Golden Year Guardians 0% 2.00% Families in Motion 2% 1.60% Aspirational Fusion 0% 1.40% Promising Families 0% 1.2% 100% 100% Suburban Style (11%) Outlying suburbanites Commuter jobs Well educated Upscale Kid centered Community minded Responsible Conservative views Team sports fans Physical fitness Internet friendly Online shoppers Anti-media advertising Unpretentious 19

20 Weather Given the sensitivity of aquatics to weather conditions, it is appropriate to include an assessment of local weather patterns in the market analysis. The factors in the following chart were used to determine user days in the financial models. Highs in the 90s in the summer should enhance participation in outdoor events and activities. Summary CLIMATOLOGICAL DATA Baytown, TX Temperatures Precipitation Precipitation Month Average High Low Inches Days January February March April May June July August September October November December Source: Weatherbase U.S. Government Census 2010 projects Baytown s population base to increase from 71,900 to 79,400 by The 0-14 age group is 31.9% of the city s population compared to the national average of 27.1%. The median age for the city is younger than the national average (32.4 compared to 36.9 respectively). Income analysis for the City of Baytown is 20% lower than the national average in regard to per capita income, and 8% lower than the national average for median household income. 20

21 Section 3: Area Provider Analysis Sterling High School Lee College Baytown YMCA Little Cedar Bayou Wave Pool Northwest Pool Fairmont Pool San Jacinto Pool Eagle Pointe Wave Pool Sienna Plantation Schlitterbahn Galveston Island SplashTown Waterpark

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23 Section 3: Area Provider Analysis The aquatic industry is a competitive market vying for disposable income driven by population trends, income levels, demographic profiles, and favorable locations. Large aquatic centers and destination facilities offer a grand scale of cutting-edge amenities, deliver a unique customer experience, and draw from a large radius. Small to medium aquatic centers compete by offering family amenities in a cozy atmosphere, thus delivering a friendly customer experience to the local market. Pirates Bay goal is not to compete for services, but to deliver high quality programs at a reasonable cost. The following information regarding aquatic facilities within the region is used to locate gaps in programs and services in the immediate area. The following map shows pools in the vicinity. Map of Baytown Area Providers Houston Sheldon Barrett 8 Mont Belvieu Old River-Winfree Houston Highlands Cloverleaf Channelview Highlands Baytown Baytown Cove Jacinto City Houston 3 1 Baytown Galena Park Pasadena 225 Texas Baytown 2 99 Beach City Pasadena Deer Park Pasadena South Houston Pasadena Pasadena La Porte 6 La Porte 7 4 Morgan's Point Houston Pasadena Houston Shoreacres 23

24 Baytown, TX 1. Sterling High School 300 W Baker Rd Baytown, TX Indoor 8 lane 25-yard pool Sterling High School athletic department uses its pool for student swimming, diving, and water polo. Not open to the public. 2. Lee College 200 Lee Drive Baytown, TX Indoor 6 lane 25-yard pool Lee College offers an indoor heated swimming pool for students at a fee of $25/semester. Not open to the public. 24

25 3. Baytown YMCA 201 W Wye Dr. Baytown, TX Outdoor 4-lane pool At Baytown YMCA, fees are based on income. La Porte, TX 4. Little Cedar Bayou Wave Pool 600 Little Cedar Bayou Dr. La Porte, TX Little Cedar Bayou Wave Pool Amenities Wave Pool Zero-Beach Entry Fees Daily Resident $3 Nonresident $5 Under 2 Free Age 60+ $1 Season Pass Individual $45 Nonresident $55 Res. Family $120 Nonres. Family $145 Operated by the City of La Porte, programming at Little Cedar Bayou Wave Pool includes pool rentals. 25

26 5. Northwest Pool N. Avenue P La Porte, TX Northwest Pool Amenities Zero-Depth Entry Leisure Pool Otter Slides Spray Features Fees Daily Individual $1 Season Pass Individual $20 Family $45 Operated by the City of La Porte, programming at Northwest Pool includes pool rentals and public safety pool parties. 6. Fairmont Pool Hillridge La Porte, TX Fairmont Pool Amenities L-Shaped Pool Fees Daily Individual $1 Under 2 Free Season Pass Individual $20 Family $45 Operated by the City of La Porte, programming at Fairmont Pool includes swim lessons sponsored by Sweetwater Pools Inc. 26

27 7. San Jacinto Pool 618 San Jacinto and G Street La Porte, TX San Jacinto Pool Amenities Zero-Depth Entry L-Shaped Pool Otter Slides Fees Daily Individual $1 Under 2 Free Season Pass Individual $20 Family $45 Operated by the City of La Porte, programming at San Jacinto Pool includes pool rentals. Mont Belvieu, TX 8. Eagle Pointe Wave Pool Eagle Pointe Dr. Mont Belvieu, TX Eagle Pointe Wave Pool Amenities Wave Pool Fees Daily Under 2 Free Age 3-11 $7 Age $8 Age 65+ $4 Season Pass Individual $175 Operated by Eagle Pointe Golf and Recreation, programming at Eagle Pointe Wave Pool includes swim lessons and swim team. 27

28 Waterparks within 50 Miles Map of Baytown Area Waterpark Providers 105 San Jacinto County Grimes County Conroe Montgomery County 105 Hardin County 249 The Woodlands 11 Spring Liberty County Atascocita Harris County Texas Houston Chambers County Pasadena 124 Fort Bend County 6 Sugar Land Missouri City Pearland 9 League City Galveston County Brazoria County Matagorda County Sienna Plantation (39 miles southwest) 9600 Scanlan Trace Missouri City, TX Although not open to the public, Sienna Plantation is a 7,000-acre Master Planned Community renowned for its three resort style waterparks. Sienna residents have three swim teams and enjoy many special events. Zero-Depth Entry Pools Play Feature Waterslides Plunge Pool Dumping Bucket Three Diving Wells Junior Olympic Pool 28

29 10. Schlitterbahn Galveston Island (41 miles south) 2026 Lockheed Street Galveston, TX WAVE (9283) Schlitterbahn Galveston Island Amenities Wave Pool Waterslides Water Rides Lazy River Beaches Heated Pool Lagoon Tot Area Whitewater River Concessions Fees Daily Age 3-11 $57 Age $68 Age 55+ $57 Season Pass Age 3-11 $96 Age $146 Age 55+ $96 Schlitterbahn Galveston Island is an indoor/outdoor waterpark operated by a family-owned company based in New Braunfels, TX. The Master Blaster uphill water coaster has been the Golden Ticket winner for Best Water Attraction from 1998 to 2002 and from 2004 to

30 11. SplashTown Waterpark (45 miles north) I 45 North Spring, TX Splashtown Waterpark Amenities Wave Pool Waterslides Water Rides Lazy River Lagoon Activity Pool Cabanas Concessions Fees Daily Under 2 Free 48" & Taller $35 Under 48" $28 Season Pass Individual $80 SplashTown Waterpark in Spring, TX, is operated by Premier Attractions Management, LLC. 30

31 City of Houston Pools The Houston Parks and Recreation Department operates 38 outdoor swimming pools and 20 water spraygrounds. In addition, the department operates a heated indoor natatorium for citizens with disabilities located at the Metropolitan Multi-Service Center. American Red Cross Learn to Swim classes and adult water fitness classes are held at certain pools during the summer. NORTHEAST Greenwood 602 Beresford Hobart Taylor 8100 Kenton Moody 3201 Fulton Northline 6911 Nordling Tidwell 9720 Spaulding Tuffly 3200 Russell NORTHWEST Agnes Moffitt Hammerly Inde Heights 603 East 35th Lincoln 1048 Grenshaw Love 1000 West 12th Oak Forest 1400 Du Barry Ln Schwartz 8203 Vogue Stude 1031 Stude T.C. Jester 4205 T.C. Jester

32 SOUTHEAST Beverly Hills 9800 Kingspoint Clinton 203 Mississippi Cloverland Scott Denver Harbor 1020 Gazin DeZavala 7521 Avenue H Eastwood 5000 Harrisburg Emancipation 3018 Dowling Finnigan 4900 Providence J Robinson, Sr Ledwicke George T. Nelson 6900 La Salette Glenbrook 8201 North Bayou MacGregor 5225 Calhoun Mason 541 South 75th Reveille 7700 Oak Vista Sagemont Hughes Sunnyside 3502 Bellfort Wilson Memorial 100 Gilpin SOUTHWEST Alief Bellaire Lansdale 8201 Roos Memorial 6402 Arnot Sharpstown 6600 Harbor Town Townwood 3403 Simsbrook Westbury Mullins Windsor Village Croquet

33 HPARD Pools Map Summary An investigation in the immediate area shows a clear shortage of aquatic centers of the Pirates Bay caliber. Sterling High School and Lee College both offer indoor pools but for students only. Baytown YMCA has a small outdoor 4-lane pool. City of La Porte and Eagle Pointe Golf and Recreation both offer outdoor wave pools, but no other aquatic features such as waterslides, water rides, etc. Waterparks with many attractions within 50 miles include SplashTown Waterpark (45 miles north) and Schlitterbahn Galveston Island (41 miles south). 33

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35 SECTION 4: Waterpark Expansion Trends and Recommendations Defining Success Three Major Components Fee Recommendation Expansion Recommendations

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37 Section 4: Waterpark Expansion Trends and Recommendations Rather than flat water rectangular municipal pools, stimulating waterparks are becoming the norm with water challenges, bubbling relaxation, and three-dimensional bodies of water set across several acres. Attractions can be added to the waterpark in increments as more capacity is required or more penetration is desired. Once the decision has been made to expand the waterpark, there are several key items to consider before starting construction that will affect success. What is the budget? How much land is available? What will it cost to operate? Will it make money? Defining Success For private developers, the definition of success is simple to make money. For municipal waterparks, however, the definition of success might be: To make enough money to cover the costs and any future expansions. To make enough money to help pay for other subsidized facilities within the park system. All of these are appropriate definitions of success, but each one affects the outcome of the waterpark expansion. Determining the definition of success will help make sure the goals are inline with realities. Three Major Components of a Waterpark Having the proper amenity mix will impact the viability of the waterpark within the market. When planning expansion, consider three things that a waterpark generally offers: a capacity holder, a children s area, and thrill amenities. Capacity Holders (Need wave pool and/or suntan lagoon) Children s Area (Need additional shaded areas for kids to play) Rides / Attractions (Need high-impact visible rides, two and/or three man raft ride) Capacity Holders Initially, waterslides were a free standing attraction. Then wave pools splashed onto the scene. When wave pools and waterslides merged into a single complex, the waterpark was born. Capacity became less of a problem since no single element was required to bear the load. In addition to wave pools and waterslides, another popular capacity holder wound its way into the waterpark, the lazy river. These capacity holders serve as the hub of the waterpark and are a crucial part of overall success. Capacity holders at Pirates Bay include a zero-depth entry pool, small rectangular pool, and a 671-ft. lazy river. Pirates Bay does not have a wave pool. 37

38 Children s Area Sensitively designed environments for children and tweeners can be vital to attendance. Families with various aged children need to be accommodated in order for them to come to the waterpark and spend the day together. Spraygrounds, tot pools, and children s pools with participatory play features with all sorts of pulleys, rope ladders, water buckets, geysers, dumping buckets, and slides should be located near the bathhouse for convenience purposes. The children s area at Pirates Bay features a large pirate-themed water play center. Thrill Amenities Teens like thrill rides while families like modest amenities that most anyone can enjoy. These can be a mix of body slides or tube slides and should be both open and closed flumes to offer diversity. Having a ride that allows multiple riders is another way of keeping the entire family happy. Big tube slides that have three to four people per ride add to the social aspect. Having a head first mat-racer slide, where riders can race their friends, can provide a grand experience for young teens. In general, the more thrilling the attraction, the less people will ride due to age preference. Pirates Bay features two large waterslide towers, a mat racer, and a space bowl slide. Artificial surfing is another thrill amenity. These environments use high-output pumps to produce a flow of water approximately two inches thick over a fixed foam-padded surface. Competitions are formed and spectators enjoy watching as much as inland surfers enjoy the challenge. Pirates Bay features a FlowRider surfing machine. A climbing wall over the water offers the physical activity and challenge of climbing while the water underneath cushions the fall. This thrill amenity can be a signature attraction that differentiates a waterpark from its competition. Pirates Bay features a climbing wall and a crossing challenge. Age Group Age 0-3 Age 4-7 Age 8-11 Age Age Age Age 46+ Recreational Aquatic Age-Group National Trends Tot Pool, Tot Slides, Gentle Spray Features Water Sprayground, Zero-Depth Pool, Participatory Play Features, Sand Play Water Walks, Large Play Structures, Full-Size Waterslides, Open Water Water Walks, Large Waterslides, Open Water, Lazy River, Gathering Places, Sand Volleyball, Mat Racer, Diving Boards Action Island, Intense Waterslides, FlowRider, Mat Racer, Climbing Wall, Open Water, Sand Volleyball, Drop Slides, Diving Boards Zero-Depth Pool (to be w/children), Open Water, Spa, Sun Deck, Lap Lanes, Lazy River, Waterslides, Diving Boards Spa, Sun Deck, Lap Lanes, Lazy River, Family-Friendly Waterslides Source: Counsilman-Hunsaker Fee Recommendation Stimulating waterparks are fueled by fierce competitors vying for discretionary leisure spending, not just other pools and waterparks, but with any activity where people spend discretionary income, including movies, sporting events, and dining out. The entry fee will have the biggest impact on revenue. This fee is not only the initial revenue as people walk through the turnstile but also how many people come to the waterpark and spend money in other areas. 38

39 As a general rule of thumb, keep pricing simple. Too many waterparks offer a special price for every situation such as a standard fee, then a children s fee, then a family fee, then a senior fee, then a resident rate, then a nonresident rate, then a daily rate vs. season pass rate, and on and on. If the person at the front desk cannot say it from memory, there are too many options. The consultant recommends the following fee structure. Expansion Recommendations No matter how many amenities there are, over time people enjoy experiencing something new. To generate additional excitement, a new ride or amenity every two to three years is about the norm for waterparks, especially when meeting the needs of an underserved group. Expansion keeps momentum high and if attractions are added for age groups who have been previously neglected, new segments of the population are attracted. At most waterparks, Saturdays are typically at capacity, but during the week there might be a fraction of that attendance. Finding ways to improve attendance Monday through Friday can be a challenge, but possible. A new wave pool, more shade, a family raft ride, and thrill rides could dramatically improve the market appeal and capacity of Pirates Bay, resulting in improved customer satisfaction and an increase in repeat visits. The following recommendations are discussed in detail in the next section. PHASE 1: Wave Pool and Family Raft Ride $6,600,000 PHASE 2: Boomerango and Family Raft Slide $2,500,000 PHASE 3: Aqualoop and Master Blaster $2,800,000 39

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41 Section 5: Expansion Concepts Phase 1 Phase 2 Phase 3

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43 Section 5: Expansion Concepts The following concepts were developed for Pirates Bay to consider for expansion phases. PHASE 1: $6,600,000 10,500 sq. ft. wave pool 700 sq. ft. interactive fountain More shaded areas Rattler family raft ride 5,000 sq. ft. operations support building 43

44 44 PHASE 1: OPINION OF PROBABLE COST

45 PHASE 2: $2,500,000 Boomerango Family Raft Slide 45

46 46 PHASE 2: OPINION OF PROBABLE COST

47 PHASE 3: $2,8000,000 Aqualoop Master Blaster 47

48 48 PHASE 3: OPINION OF PROBABLE COST

49 ALL PHASES 49

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51 SECTION 6: Operations Opinion of Revenue Opinion of Expenses Cash Flow

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53 Section 6: Operations Revenue analysis reviews facility capacity analysis, per capita spending trends, and special user group usage. Developing an opinion of financial impact is an important component in evaluating expansion opportunities. Projected attendance is based on population trends. Fee structure is based on fees from season pass holders and other users to project per capita income. Revenue is estimated, taking recommended fee schedules into account. All revenue assumptions reflect multiplying attendance by per capita. An analysis of operating expenses includes a detailed budget model for estimating probable expenses for major areas of labor, contractual services, commodities, and utilities. User projections are made based on programming. Expenses are estimated taking into account hours of operation, attendance projections, local weather patterns, local utility rates, and other key items. Operating data from other facilities in the area were reviewed and taken into account to form projections. Opinion of Revenue Facility Capacity Types of spaces and associated capacity determine the degree each facility will be used. Generally, recreation swimmers prefer shallow water of four feet or less, allowing participation in a variety of water-related activities while still touching the pool bottom. In estimating capacity for recreational use, a maximum density of 25 sq. ft. per person is assumed. Based on a length of stay of two to three hours, turnover in-house attendance is two and a half times per day for the recreation swimmer. For deep water, the maximum density is assumed to be 100 sq. ft. per person. Based on a length of stay of two to three hours, turnover in-house attendance is three times per day for the competitive swimmer. Group programming areas, which may include food service, are based on seating capacity. Additional spaces not listed such as office space and locker rooms have no impact on programming; therefore, market penetration has not been included in this analysis. Capacity of spaces is evaluated when projecting attendance. The following table predicts additional capacity based on program areas. It is necessary to use the descriptive above to project how many people can be accommodated in any given space using the per square foot guideline. The following table estimates what the additional capacity would be with the different expansion phases. 53

54 54 CAPACITY ANALYSIS

55 Fee Structure In order to project revenue, fee schedules are established. Three general approaches to evaluating the fee structure of an aquatic center include the following. 1. Maximize revenue by charging what the market will support. Programs and facilities operate with positive cash flow. If excess funds are available at season s end, they can be used to support under-funded programs. 2. Break-even in the operation of the facility. This approach is increasing in popularity as funding is becoming limited to organizations that use the facility. Capital funds are used to create the facility; operational funds are generated from the user on a break-even basis. 3. Subsidy pricing historically has been the policy of many community facilities. It is recommended to continue to increase fees based on local inflation and cost of living. 55

56 The following table takes into consideration the revenue streams from increased capacity and fees. OPINION OF REVENUE 56

57 Opinion of Expenses Commodities Commodities are day-to-day products used to operate aquatic centers. Office supplies, program supplies, custodial supplies, repair supplies and chemicals are included. In determining annual chemical expense, chemical treatment assumes the use of liquid chlorine and muriatic acid (ph buffer). Chemical use can depend upon bather load and chemical balance of the water. In estimating annual costs, medium bather load figures are assumed. Heating/Cooling In determining utility costs, current energy costs at other facilities in the area were reviewed. Total costs include energy, energy demand and delivery charges. Caution must be used when comparing this cost with operating expenses of other facilities across the country. Electricity The calculations below are based on 2012 utility rate information. The table conveys the estimated electricity costs for all options. Water and Sewer Water and sewer services will be needed for domestic use and compensation for evaporation and backwashing purposes. Backwash water and domestic water will be released to the sanitary system. This does not include landscape irrigation. Insurance Insurance denotes liability for more people and more structure based on visits and labor. Expenses The following table reflects a summary of all operating expenses, assumptions, and estimates detailed by the expense category. Capital Replacement Fund The manufacturers of some types of mechanical equipment recommend annual maintenance programs to ensure proper performance of their equipment. Much of this work will be performed by outside contractors. In addition, for daily operation of the facilities, miscellaneous items will need to be repaired by outside firms. The capital replacement fund sets money aside for repairs/replacement. 57

58 58 OPINION OF OPERTING EXPENSE

59 Cash Flow The following table presents projections of gross operating performance for all options based on revenue projections and expense estimates. 59

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61 Appendix A: General Limiting Conditions This study is based on information that was current as of Every reasonable effort has been made in order that the data reflects the most timely and current information possible and is believed to be reliable. This study is based on estimates, assumptions, and other information developed by the consultant from independent research. No warranty or representation is made by the consultant that any of the projected values or results contained in this study will actually be achieved. No responsibility is assumed for inaccuracies in reporting by the client, its agents, and representatives or any other data source used in preparing or presenting this study. This entire report is qualified and should be considered in light of the above conditions and limitations. i