Market Analysis Hunter Golf Course Banquet Facility Initial Assumptions 1. Increased rent (20 yrs) including adjustments $366,468 a. Initial Rent Increase $1,300 per month= $15,600/year b. Rent Adjustment 1.67% annually 2. Increased golf revenue (20 yrs) $305,600 a. Add'I tournaments/year 5 b. Average tournament $3,056 x 5= 17,800 3. Hall Rental Rates a. There are numerous ways to break out rental rates; weekday events, weekend events, half day, full day, peak times rates etc. A review of numerous venues in the area, some municipally owned~ some privately owned, would suggest that an average rental cost for the hall, factoring all of the above, would be in the vicinity of $500. b. Currently, approximately 20 events (besides fournaments) a year have used the tent. The tent is only available for six months (April thru Oct). A simple doubling of the availability of the hall would suggest that 40 events is a floor for consideration. c. A conservative estimate of a 25% increase in events scheduled for the hall, simply due to a much more attractive and capable venue is calculated in. d. This leads to an approximate SO events over the course of the year: 50 X $500 = $25,000
Option 1: $1,506,000 Principal Cost Interest on Bonding Gross Cost
$1,506,000 $434,858 $1,940,858
Less: Increased rent* $366,468 Increased golf revenue*$366,830 Hall rental revenue* $587,868 *Includes a 1.67% average inflation factor. Revenue total $1,321,166 Gross Revenue
$1,950,858 $1~3Zl~r6r--------------------------------
Net Cost to City (20 yrs) $629,692 Option 2: $1,696,000 Principal Cost Interest on Bonding Gross Cost
$1,6961000 $489,720 $2,185,720