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HomeMy WebLinkAboutCommunity Center - Correspondence (5)CITY F E I „C~~l G' ~ ~, >4 ~ „ 290 FiDALGO KENAI, ALASKA 99699 TELEPNQNE 263-7535 Attached is a workpaper estimating revenues relating to a Convention Center (Community Center?). The assumptions uponwhich the numbers were based were not developed by me, and I have no assurances that they are reasonable. The primary assumptions were: 1) We°d have 10 conventions of 350 .people per year. 2) We'd have 15 conventions_of 150 people. per year. 3) All conventions last 3 days.' 4) All attendants stay the full 3 days in Kenai, and spend $150 per day in Kenai. Perhaps a good question is: Where`s the break-even point, given an annual operating cost of $256,000 per year? Let's assume that we have an`average of 57.5 conventions per year, each with 200 people attending for 3 days, using 3 rooms each day. The ballroom is used once in each convention.. And, we have 52 miscellaneous rentals during the year. Room Rental by conventions: 57.5 X $125 X 3 X 3 $ 64,688 Ballroom Rental: 57.5 X $500 28,750 Miscellaneous Rentals: 52 X $1256,500 Total Rental 99,938 Sales Tax: $150 X 3 X 57.5 X 200 X .03 155,250 Grand Total 255 188 I made the same assumptions about sales tax (each person spends $150 per day in Kenai for 3 days). This would indicate that, in order to break even, we'd need a fairly large convention more often than once each week. Also, keep in mind that only the rental portion could be accounted for. There is no reasonable way to keep track of sales tax revenue that would be generated. T0: William J. Brighton FROM: Charles A. Brown SUBJECT: Convention Center DATE: November 6, 1984 ,: ;..,;. ASSUMPTIONS: ANNUALLY, WE WOtJLp HAVE ld LARGE COIVVEN'fIONS (350 PEOPLE) .. .. ._._ ._..~._ ...._ .~. _._..._..... .. v.. ...r ~~~v ~~~.. ~ env t.l~t_ray m_ vt_ n.JJVI LL_v ,v-1n, f-.. ° EACH PERSON WILL SPENp 1"I-IE PULL 3 DAYS iN IiENAI ANU SPEND ~iSd ~ , PER pAY IN I~ENAI. <3 ,,, `' REMARF<S: THE SALES TAX REVEPJUE WILL E,E RECORDEp iN THE C,ENERAL FUPdD. ~_ 3 ``-.THEREFORE, ONLY THS REN1"AI_ WILL E,E A RFVENUC'SOURCE TO TNG FACIi.:TTY. , 7~SSQf`~E13-'fi~A-f-IIPFR'HTTF~COST~-OF=~TNE-f=A~IZ=fTV-'PFAYL;E`~~- n, ~SSb,d00 PER YEAR. E:A,_yl._D UPON '1"F-IAT FIf~IJitE, THE FACILITY WOUI_p :`LOSE AEOUT *fi216,J'.`.i0 PER YEAR. EVFiN IF' WL: COUIVI` l"HE SALES TAX RE'JENU1~, cl TZCL-C.TISI`~33c'T,ZiS.~i 1~ER~YE7`+R: -"_~ cl ) _ 'f . ~~ - ~.~ ~~ -- -- e - ; 4 -0 ~ t/ -- OJ ~'+P (0 V7 m O 0000 0n0 J 0 L~ -~ q; 0 0 0 0 0 0 0 0 ('l 6 ~]dNCOP O GOAL CC 000 O ~ mmmnm c ©~a ao~; ~~o ~ . - o u;mmm-. n .-~ .. N ul ' F- .. N ° oo° o ° ,' o= o o ~, P I- PO~PP ~D ~ ~ - ~xs N.-•amm d xv m~~omm m ., 3 .-~ . ' O O .:. U F r ^ Z q} ~ ~ ° N~Nmm - ~ oco ~ ~' . mn~oa~m m o~~io r- M O . Y .. ¢ O N ~ ° w i ~ - _ .. - r . ~ J ~ n,0 .0dm O`~ [~ .-CJwti ZE~1~ a ~ xa oa nu'Im n w~;zJZ aoa~ r- o .:,.. wUC~~~~ ain r . .. W E i ,~ ~ N Jti RO ~ ~ y. , L , I il J _, _. y ma.. : - _ ,~: . ...~~.~, mP a ~~-.I Y mooPU~ P m J mnN ~~ !, - :. o. =c ~;omnJ n i N d N m N .+ c w OJ l~ J OJ d ~0 > •0 ~ N N OJ' !u JL i.p ~ . . Jo.. N n ~ I , P rJ CJ ~J ~J ~ ' .. ',, N .. Vl b ~,~, - ~ . > ~ .. ......-~ JS ,J, '_:, ~ • Q J oa nm ; N' ~ ¢ m - ~ a ~ ,. ~ .; o a F ~ - < , ~¢ . ~ ,.. oS ~--N _ mm ~~ , oS F . ~ ~ ~ - W ~ s w ~ , ~ . mm~nm . a mm NNd m .,, . , .- , O Z ~l] S~ N 1T - O C6 D5" ` '. N n -~ -~ n- . ¢ ~ U ' J i w q ~ ; a a m ~ w I- U ¢ 'JJE Z E W ~ W, . w ~ i U ' SSI- O O C 1- p E Z U I- f- N U3~ O a,J ~~~ W wm U ENti Li ... [i-