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TROY CITY COUNCIL

COMMITTEE MEETING NOTICE


CITY HALL BASEMENT CONFERENCE ROOM
100 S. MARKET STREET, TROY, OHIO
Tuesday, January 12, 2016, 5:30 p.m.
Council as Committee of the Whole

(Chaired by Council President Baker)

1. Provide a recommendation to Council regarding increasing the authorization for the Hobart
Arena Renovation Project from $7,350,000 to $9,650,000. Emergency legislation is requested so
that current pricing can be maintained.
Other Committees/items may be added.

1-6-2016

Cc:

Mayor
Mr. Titterington
Mr. Kerber
Mr. Frigge
Recreation Board
Department Heads
Chamber of Commerce
media

Exhibit III

Market and Economic Analysis


for a Proposed New Ice Rink
in Troy, Ohio

Presented to:
City of Troy, Ohio

Presented by:

Final Report
October 2015
5401 W. Kennedy Boulevard Suite 755 Tampa, Florida 33609 Phone 813.281.1222 Fax 813.315.6040

October 19, 2015

Mr. Ken Siler, Arena Manager


Hobart Arena
255 Adams Street
Troy, OH 45373
Dear Mr. Siler:
Crossroads Consulting Services LLC has completed its market and economic analysis regarding a
proposed new ice rink adjacent to Hobart Arena in Troy, Ohio. The report presented herein includes the
summary of findings, conclusions, and recommendations from our research.
This report was prepared for the City of Troy for its decisions regarding the above referenced project. The
findings and assumptions contained in the report reflect analysis of primary and secondary sources. We
have utilized sources that are deemed to be reliable but cannot guarantee their accuracy. All information
provided to us by others was not audited or verified and was assumed to be correct. Furthermore, estimates
and analysis regarding this project are based on trends and assumptions and, therefore, there will usually
be differences between projected and actual results because events and circumstances frequently do not
occur as expected, and those differences may be material. We have no obligation, unless subsequently
engaged, to update this report or revise this analysis as presented due to events or conditions occurring
after the date of this report. The accompanying report is restricted to internal use by the City of Troy and
may not be relied upon by any third party for any purpose including financing. Notwithstanding these
limitations, it is understood that this document may be subject to public information laws and as such can
be made available to the public upon request.
Although you have authorized reports to be sent electronically for your convenience, only the final hard
copy report should be viewed as our work product.
We have enjoyed working on this engagement and look forward to the opportunity to provide you with
continued service in the future.
Sincerely,

Crossroads Consulting Services LLC

5401 W. Kennedy Boulevard Suite 755 Tampa, Florida 33609 Phone 813.281.1222 Fax 813.315.6040

Table of Contents

1.

Introduction

2.

General Market Overview

3.

Industry Trends and Potential Demand

13

4.

Comparable Facility Case Studies

25

5.

Competitive Market Assessment

34

6.

Program and Cost Estimate

37

7.

Financial Pro Forma

41

8.

Limiting Conditions and Assumptions

51

Introduction
Project Background
Municipalities and states throughout the U.S. have recognized the economic benefits associated with
operating various public assembly facilities. There are examples of dual-ice sheet facilities throughout
North America to support ice-based activities. As ice-based sports such as ice hockey, figure skating and
curling continue to grow in the U.S., date availability at local ice facilities has become a challenge in some
communities. In markets where hockey is popular, dual ice sheets were built as early as the 1970s to
accommodate local demand. As hockey has grown in popularity nationwide dual-ice sheet facilities have
been constructed in areas of the U.S. that have not traditionally been considered ice sport hubs such as
Florida. Due to the unique nature of ice rinks, there is limited peak or prime hours for user groups. Given
that many user groups are school-aged children, hours with the greatest demand are generally weekends
and weekdays after school and cannot extend past mid-evening. Youth sports are also extending their
seasons to accommodate growing demand. While hockey and figure skating may have traditionally been
viewed as winter sports, there are now training programs, camp, clinics, leagues, tournaments and
competitions year-round. In an effort to support residents and the increased year-round needs of ice-based
sports, communities are exploring the option of additional ice sheets to meet demand.
Troy is the county seat for Miami County. Located in southwest Ohio, Troy is proximate to several other
regional centers including Dayton, Columbus, and Indianapolis, Indiana. Troy is situated along Interstate
75 and is 10 miles north of the I-75 and I-70 interchange. I-75 connects south into Dayton and Cincinnati
and I-70 connects west into Indianapolis and east into Columbus. While the City has a relatively small
population base it is easily accessible to a larger region. Troy is well-known for its annual Strawberry
Festival, being a destination in the Great Ohio Bicycle Adventure, and for various sports/entertainment
and community events held at Hobart Arena.
Hobart Arena is a 3,800-seat facility that opened in 1950 and serves as the communitys primary venue
for sports and entertainment. The City of Troys (City) Recreation Department is responsible for
management of Hobart Arena. The venue underwent a major renovation from 1997 to 2001 that included
many interior and exterior upgrades and replacements. In 2014, Crossroads Consulting Services LLC
(Crossroads Consulting), in association with Convergence Design and The Bigelow Companies, Inc.,
conducted a facility assessment that resulted in the City approving and moving forward with $7.2 million
in renovations that are currently underway.
Hobart Arena is home to the Troy Skating Club, an established figure skating club with strong ties to U.S.
Figure Skating at a national level. The Troy Skating Club has hosted the U.S. Figure Skatings National
Theatre on Ice competition in past years. It has a history of strong leadership at the Board of Directors
level. The Recreation Department manages and administers the Troy Bruins Youth Hockey program
which uses Hobart Arena as its primary ice rink. The Troy Youth Hockey program has both house and
travel programs for area youth age four through eighteen. The Recreation Department also manages and
administers an adult hockey program. Troy High Schools boys varsity hockey program utilizes Hobart
Arena for its games and practices. Curl Troy uses multiple venues to accommodate its members and
events including Hobart Arena. Additionally, there are Learn to Skate and Basic Skills programs and
open public skating held at Hobart Arena. The Troy Skating Club hosts the annual Troy Summer Classic
figure skating competition annually in July and the Dayton Hockey Association utilizes Hobart Arena in
December for their Silver Sticks tournament.
2

Hobart Arena does not have ice available for the majority of April and May or the month of August. In
April and May, a synthetic turf floor covering replaces the ice and Hobart Arena is utilized by programs
including the Winter Guard International, local youth soccer, local youth softball, graduation ceremonies,
and annual maintenance. In addition, during April and May, staff focuses on getting the pool prepared for
its summer operation. In August, the facility is generally not used for any activity when the staff focuses
on operating the adjacent aquatics facility and maintenance projects at Hobart Arena.
Purpose of the Study
Given this backdrop and the Citys desire to operate Hobart Arena as effectively and efficiently as
possible, the City of Troy hired Crossroads Consulting to assist it in evaluating the merits of constructing
a proposed new ice rink adjacent to Hobart Arena as part of its strategic planning efforts. A second ice
sheet could potentially allow some ice-based activities to move from Hobart Arena opening its schedule
for additional commercial events and/or community events. This analysis focuses on assessing the
potential market demand and financial implications of constructing and operating a new ice rink and
potential uses for Hobart Arena with increased programmable dates.
Work Plan
Research tasks completed as part of the study effort include, but are not limited to, the following:

Spoke with City representatives to understand their objectives for the proposed new ice rink and obtain
available background information applicable to the performance of this study.

Conducted interviews with stakeholders including, but not limited to, representatives from the City,
existing facility operators, as well as other area groups involved in ice activities.

Analyzed select market attributes including demographic/economic data, area employment,


accessibility, and hotel statistics.

Profiled existing and planned ice rinks in the region in terms of owner/operator physical attributes,
usage characteristics, rental rate structure, and general financial operations to assess how the proposed
new ice rink could potentially compete with or complement these facilities.

Outlined key industry trends.

Interviewed existing user groups at Hobart Arena as well as potential users of the proposed new ice
rink to obtain their input and perspectives on the strengths, challenges and opportunities associated
with the proposed new ice rink.

Analyzed usage and operating data from select comparable ice rink facilities.

Summarized key findings related to the potential market demand for the proposed new ice rink within
the context of the competitive environment.

Prepared a basic outline program for the proposed new ice rink that MSA further developed along
with a preliminary conceptual site plan and preliminary construction costs.

Developed an estimate of usage and financial pro forma for the proposed new ice rink in a stabilized
year and outlined potential impacts on Hobart Arenas operation.

The remainder of this report summarizes the key findings from our research and analysis.
3

Table of Contents

1.

Introduction

2.

General Market Overview

3.

Industry Trends and Potential Demand

13

4.

Comparable Facility Case Studies

25

5.

Competitive Market Assessment

34

6.

Program and Cost Estimate

37

7.

Financial Pro Forma

41

8.

Limiting Conditions and Assumptions

51

General Market Overview


Because general market conditions impact the operations of ice rinks, this section of the report profiles
select market characteristics including:

Demographic/economic data

Area employment

Accessibility

Hotel supply

Supply of area facilities

Demographic and Economic Statistics


Demographic and economic indicators are pertinent to estimating demand for participant and spectatororiented sports activities for several reasons. Event activity at the proposed ice rink is anticipated to be
diverse and include multiple ice-based sports. Depending on the scope and nature of the event, the facility
will draw both area residents as well as out-of-town attendees to tournaments and competitions.
Tournament producers typically consider market characteristics as well as facility/complex elements when
deciding where to host their events. Having active, well-established local youth/adult/amateur sports
clubs, accessibility, age and income characteristics are important considerations for tournament producers.
Based on interviews with ice rink management at comparable facilities, the primary market for the
proposed new ice rink is a 30-mile radius.
Map of the Primary Market

Source: mapdevelopers.com

Demographic statistics for the primary market are based on data from Claritas, a Nielsen company that
provides current and projected demographics based on U.S. census figures.
5

Population
Population serves as a base from which the proposed new ice rink could draw attendance and other forms
of support. The primary market has a population of more than 1.0 million people. The market experienced
a slight decrease in population between 2000 and 2015 and is projected to remain relatively consistent
through 2020.
Age Distribution
Analysis by age group is helpful since many ice based activities are targeted toward consumers who fall
within specific age categories. Although approximately 22% of the primary market is under 18 years old,
a relatively large portion of the population (30%) is over the age of 55. The median age of the primary
market is 39.5 which is older than that for the U.S. (37.9 years old).
Income
Income offers a broad measurement of spending potential for a specific population because it indicates
the general ability of individuals or households to purchase a variety of goods and services including
participation in, or attendance at, ice-based sports activities. Approximately 27% of the households have
income levels of at least $75,000. The median household income in the primary market is $45,500 and
the average household income is $60,200 which is significantly lower than for the U.S., $53,700 and
$74,200, respectively.

The following table summarizes the key demographic/economic characteristics of the primary market.
Summary of Key Demographic/Economic Characteristics
30-Mile Radius
Category
(Primary Market)
Population
2000 Population
2010 Population
2015 Population
2020 Projection
Growth (2000-2010)
Growth (2010-2015)
Growth (2015-2020)

1,057,000
1,045,000
1,042,000
1,041,000
-1.2%
-0.3%
-0.1%

Age Distribution
Under 18 Years Old
18 - 24 Years Old
25 - 34 Years Old
35 - 44 Years Old
45 - 54 Years Old
55+ Years Old

22%
10%
12%
11%
13%
31%

Median Age

39.5

Household Income Distribution


Less than $25,000
$25,000 to $49,999
$50,000 to $74,999
$75,000 to $99,999
$100,000 to $149,999
$150,000 or more

28%
27%
18%
11%
10%
6%

Median Household Income


Average Household Income

$45,500
$60,200

Source: Claritas.

Area Employment
A broad workforce distribution helps lessen a communitys dependence on support from any one single
industry segment. Employment diversification also helps a local economy withstand economic downturns
due to dependency upon one industry; should one industry fail, there are others upon which the local
economy can rely. There are approximately 35,500 people employed in Miami County. While Miami
County offers employment in various industries, employment data shown in the following table indicates
that the workforce is primarily concentrated in manufacturing and trade/transportation/utilities jobs. In
aggregate, these industries comprise 53% of total jobs in Miami County.
Non-Farm Employment by Industry as of September 2014
Industry
Manufacturing
Trade, Transportation, and Utilities
Leisure and Hospitality
Professional and Business Services
Education and Health Services
Construction
Other Services
Financial Activities
Natural Resources and Mining
Information
Total
Note:
Source:

Miami County, OH
Total Jobs
% of Total
10,021
28.2%
8,808
24.8%
12.1%
4,295
4,158
11.7%
11.5%
4,104
4.6%
1,650
3.6%
1,280
2.7%
962
0.5%
167
0.3%
91
35,536
100%

Sorted in descending order by total jobs as of Sep tember 2014.


U.S. Bureau of Labor Statistics.

Area employers provide a target market for sponsorship/advertising opportunities at sports venues. The
Upper Valley Medical Center, Clopay Building Products, and F&P America are the three largest private
employers in Miami County.
Company

Major Private Employers in Miami County, OH


Industry

Upper Valley M edical Center


Healthcare
Clopay Building Products
M anufacturing
F&P America
M anufacturing
UTC Aerospace Systems
M anufacturing
M eijer Distribution Center
Logistics
ConAgra Foods
M anufacturing
American Honda
Logistics
Hobart Brothers
M anufacturing
Industry Products
M anufacturing
ITW Food Equipment Group
M anufacturing
Note:
Sorted in descending order by total employees.
Source:
M iami County website.

Employees
1,600
935
920
814
800
734
631
568
440
320

Miami Countys institutions of higher education include Edison Community College, Hobart Institute of
Welding Technology, Miami-Jacobs Career College-Troy, and Upper Valley Career Center. These
institutions do not have formal ice hockey or figure skating programs but may provide opportunity for
private ice rentals for club/intramural sports. The Southwest Ohio region also offers several higher
education institutions including Wright State University, University of Dayton, University of Cincinnati,
Miami of Ohio, and Ohio State University, all of which have various hockey, curling and figure skating
programs. While Miami of Ohio and Ohio State University have on-campus ice rink facilities, the other
three universities utilize off-campus facilities for games and practices. These off-campus facilities include
Kettering Ice Arena, Springfield Chiller, SouthMetro, and Cincinnati Gardens. These schools and their
ice-related sports teams may serve to foster ice activities in the surrounding area to accommodate
practices, games, and tournaments.
According to the U.S. Bureau of Labor Statistics, the unemployment rate for Miami County was 4.3% in
December 2014 which was lower than that for both the State of Ohio (4.7%) and the U.S. (5.6%). A new
ice rink could provide jobs directly for staffing at the facility as well as indirectly by attracting out-oftown attendees who purchase goods and services from local businesses.
Accessibility
Local sports participants utilizing the proposed new ice rink on a regular basis for practices and games
will likely travel by car as they are anticipated to primarily originate from within a 30-mile radius. Further,
the method that competitive sporting event promoters/producers use to select venues to host their event is
partially based on ease of access to a market for attendees. In addition, the location and accessibility of a
facility relative to the population base can impact its marketability for certain events. Interstate 75 runs
through Troy and connects with Bowling Green and Toledo to the north and Dayton and Cincinnati to the
South. Interstate 70 runs south of Troy and connects to Indianapolis in the West and Columbus to the
East. Extensive interstate access to other cities in Ohio and throughout the region make Troy marketable
for events that draw drive-in attendees.
Map of Highway Access

Commercial air access is provided by the Dayton International Airport, which is located approximately
20 miles from Hobart Arena. Major air carriers include Delta Airlines, Air Tran/Southwest, US Airways,
United and American. In 2014, there were approximately 1.1 million passenger enplanements, which the
Federal Aviation Administration (FAA) defines as domestic, territorial and international passengers who
board an aircraft in scheduled and non-scheduled service of aircraft. Due to its proximity to other major
cities, air access is also available through Cincinnati/Northern Kentucky International Airport, Port
Columbus International Airport, and Indianapolis International Airport. Proximate, convenient air access
can be beneficial in accommodating the needs of regional/national sporting event promoters/producers,
athletes/teams or their VIPs.
Hotel Supply
Tournament organizers indicated that a diverse supply of hotels is preferable to accommodate their
attendees. Participants tend to travel further and stay longer when their choice of hotel is available.
Troy, Piqua, and the North Dayton area proximate to Hobart Arena offer approximately 1,000 rooms at
various limited service and economy properties. Further south, in the greater Dayton area, there are 6,500
additional rooms in full-service, limited service, and economy properties.
Hotels Proximate to Hobart Arena
Hotel Name
Comfort Inn Miami Valley Centre Mall
Residence Inn by Marriott Dayton Troy
Super 8 Vandalia / Dayton International Airport
Hampton Inn Troy
Fairfield Inn & Suites By Marriott Troy Ohio
Motel 6 Troy
Holiday Inn Express Hotels and Suites Dayton North Tipp City
Budget Inn Troy
La Quinta Inn Piqua
Holiday Inn Express Hotel & Suites Troy
Comfort Suites Troy
La Quinta Inn & Suites Dayton North - Tipp City
Airport Inn and Parking/Dayton International Airport
Total
Note:

Region
Piqua
Troy
North Dayton
Troy
Troy
Troy
North Dayton
Troy
Piqua
Troy
Troy
North Dayton
North Dayton

Rooms
124
96
94
88
80
80
77
70
70
65
65
56
46
1,011

Sorted in descending order by number of rooms.

Source: Secondary research including hotel websites.

Based on input from current and potential ice-based users, Troys hotel room supply combined with that
available in the greater Dayton area is sufficient to meet the needs of ice-related tournaments/competitions.
Supply of Area Ice Facilities
As stated earlier, one objective of the proposed new ice rink is to host local sports organizations that
currently have difficulty growing their programs due to lack of available and consistent ice time. These
organizations include the multiple age and skills-based programs within the Troy Skating Club, Troy
Youth Hockey (Troy Bruins), Troy Adult Hockey, Curl Troy, and Troy High School Hockey.

10

The degree to which existing local and State facilities adequately meet the needs of this target market is
an important aspect to consider when evaluating the potential demand for a new ice rink. Facility size,
program elements, geographic location, configuration, age, market focus, and date availability are factors
that impact how competitive area sports facilities may be to the proposed new ice rink in Troy.
This section profiles existing ice facilities within a 30-mile radius of Troy that host local teams and
programs similar in nature to those anticipated to be held at the proposed new ice rink. As shown in the
following table, there are seven facilities within a 30-mile radius that can accommodate ice activity
including Hobart Arena. Two are privately owned, two are City owned, two are owned by park districts
and one is university owned. Only two of the profiled facilities, including Hobart Arena, are operated by
their respective City.
Troy Area Ice Facilities - Owner/Operator
Facility

Location

Owner

Operator

Hara Arena

Dayton

Private

Venuworks

Hobart Arena

Troy

City of Troy

City of Troy

Kettering Ice Arena

Kettering

City of Kettering

NTPRD Chiller

Springfield

City of Kettering
National Trail Parks and
Recreation District
Wright State University

Wright State University

Five Rivers MetroPark District

Five Rivers MetroPark District

Slapshot Properties, LLC

Slapshot Properties, LLC

Nutter Center

Beavercreek

RiverScape MetroPark

Dayton

South Metro Sports Center

Centerville

Note:

Chiller LLC

Sorted alphabetically.

Sources: Individual facilities; secondary research.

Hara Arena is the only area venue that hosts a professional minor league hockey team. The NTPRD
Chiller and Nutter Center each host university related sports activity. Each of the other area venues
primarily hosts youth/adult amateur ice sports activities. As mentioned previously, Hobart Arena is home
to local high school hockey teams as well as several amateur hockey and ice skating clubs. All of the
profiled facilities with the exception of the RiverScape Metro Park in Dayton are indoor. Only the NTPRD
Chiller and South Metro Sports Center offer ice year-round. Area ice facilities include large arenas with
spectator seating ranging from 3,700 to 9,900 as well as ice rinks with seating ranging from 250 to 700.
Troy Area Ice Facilities - Program Elements
Ice Size

Open Year Round


for Ice

Indoor

84 x 195

No

5,500

Indoor

85 x 185

No

3,700

Kettering

Indoor

85 x 200

No

700

NTPRD Chiller

Springfield

Indoor

85 x 200

Yes

700

Nutter Center

Beavercreek

Indoor

85 x 200

No

9,900

RiverScape MetroPark

Dayton

Outdoor, covered

70 x 150

No

n/a

South Metro Sports Center

Centerville

Indoor

85 x 200

Yes

250

Facility

Location

Hara Arena

Dayton

Hobart Arena

Troy

Kettering Ice Arena

Notes:

Sorted aphabetically.

Sources:

Individual facilities; secondary research.

Indoor-Outdoor

Spectator
Capacity

n/a denotes not applicable.

11

It is reported that both Hara Complex and Kettering Recreation Center are contemplating their options as
to their ongoing operations. The City of Kettering indicated that it may conduct a study to determine the
best use of the Kettering Ice Rink moving forward. Hara Arena originally had two ice sheets but currently
operates only one ice sheet. Sports and event organizers indicated that Hara Arena has not invested in
maintenance or upgrades in recent years. Both facilities host numerous figure skating and hockey
programs.
Summary
An areas demographic characteristics such as population and income statistics are indicators of the market
size and relative capability to spend money on recreational sports and attend sporting and entertainment
events. Based on interviews with area facilities, U.S. Figure Skating, and independent research,
community ice rinks typically draw from a 30-mile radius. The population within a 30-mile radius of
Troy provides a significant base from which to draw users to a proposed new ice rink.
Regular users of sporting facilities need quick and convenient access for practices and games. From a
local user perspective, Troy is well-situated to accommodate travel from a 30-mile radius. For games,
tournaments, and competitions, Troys geographic location, highway and air accessibility, supply and
affordability of hotel rooms, proximity to adjacent cities including Dayton, Cincinnati, and Columbus,
and breadth of family-friendly attractions are compatible with desired site selection criteria for event
producers. The supply and proximity of these types of amenities also serves to enhance a particular
destinations ability to capture visitor spending by making it convenient for attendees as well as attractive
for bringing additional family/friends and/or extending their stay beyond the sporting event.
Several area ice rinks are used by local, amateur figure skating, hockey, and curling programs. Some area
facilities are primarily dedicated to university or professional team use which limits ice time for local
clubs/programs. Both Hara Arena and Kettering Recreation Center host numerous figure skating and
hockey programs. If these facilities are taken offline and are no longer utilized as ice facilities, a new ice
rink in Troy would be well-positioned to host some of the displaced programs from those facilities. While
Hobart Arena is capable of hosting ice-related activities, its date availability limits local clubs and high
schools, likewise local ice users occupy Hobart Arena on dates that could be marketed for other revenue
generating events. A new ice rink would increase date availability at Hobart Arena by shifting some
programming to the new ice rink allowing them to better accommodate other sports/entertainment target
markets and potentially expand Troys existing ice-related programs and create new programs.

12

Table of Contents

1.

Introduction

2.

General Market Overview

3.

Industry Trends and Potential Demand

13

4.

Comparable Facility Case Studies

25

5.

Competitive Market Assessment

34

6.

Program and Cost Estimate

37

7.

Financial Pro Forma

41

8.

Limiting Conditions and Assumptions

51

13

Industry Trends and Potential Demand


Potential demand associated with any ice rink is somewhat dependent on the attributes of the industry as
a whole as well as specific target market segments. This section outlines key industry trends that may
impact operations of the proposed new ice rink as well as input from potential demand generators.
Sports Participation Trends
USA Hockey
USA Hockey is the national governing body for the sport of hockey in the U.S. It is the official
representative to the U.S. Olympic Committee and the International Ice Hockey Federation (IIHF). USA
Hockeys primary emphasis is on the support and development of grassroots hockey programs and hockey
safety. It is also responsible for organizing and training the mens and womens teams for international
tournaments, including the IIHF World Championships and the Olympic and Paralympic Winter Games.
USA Hockey set a record for registrations in 2013-2014 with 598,841 registered players, coaches, and
officials. Total registrations increased by 7% (or 40,365 participants) between 2009 and 2014 and 13%
(or 66,991 participants) in the past 10 years. Although total registrations fluctuated over the profiled
period, total participation continues to grow nationally. Perhaps more importantly, player registrations
increased by 9% between 2009 and 2014 and 17% over the past 10 years.

USA Hockey Registration Data - National


Year

Players

Coaches

Officials

Total

2004-2005

445,245

59,957

26,648

531,850

2005-2006

442,077

58,593

26,599

527,269

2006-2007

457,038

56,383

25,978

539,399

2007-2008

468,202

54,302

26,047

548,551

2008-2009

465,975

55,448

26,866

548,289

2009-2010

474,592

55,460

28,424

558,476

2010-2011

500,579

56,358

26,325

583,262

2011-2012

511,178

58,825

24,956

594,959

2012-2013

510,279

56,836

24,303

591,418

2013-2014

519,417

56,011

23,413

598,841

479,458

56,817

25,956

562,231

44,825

551

-5,011

40,365

9%

1%

-18%

7%

74,172

-3,946

-3,235

66,991

17%

-7%

-12%

13%

Average
5-Year Change

10-Year Change
Source: USA Hockey.

14

USA Hockey is divided into 12 geographical districts. The Mid-American Region includes Ohio, Indiana,
Kentucky, Western Pennsylvania, and West Virginia. As with the national statistics, total participation in
the Mid-American Region has experienced growth. Player registrations have increased by 12% over the
past five years and 29% since 2004.
USA Hockey Registration Data - Mid-American Region
Total
Players
Coaches Officials
Year
2004-2005
33,507
27,897
3,721
1,889
2005-2006
33,996
28,363
3,843
1,790
33,893
3,498
1,753
2006-2007
28,642
34,520
1,755
29,287
3,478
2007-2008
35,357
3,526
1,737
2008-2009
30,094
1,898
37,763
3,814
2009-2010
32,051
1,891
40,552
3,995
2010-2011
34,666
2011-2012
41,870
35,412
4,605
1,853
2012-2013
36,040
4,240
1,688
41,968
41,796
35,943
4,225
1,628
2013-2014
37,522
3,895
1,788
Average
31,840
4,033
-270
3,892
411
5-Year Change
11%
-14%
12%
11%
-261
8,289
8,046
504
29%
14%
-14%
25%
10-Year Change
Source: USA Hockey.

In 2013-2014, Ohio led the Mid-American Region in registered players with 14,387, which represented
40% of the total region. Western Pennsylvania accounted for 36% of the total registered players in the
region while Indiana, Kentucky and West Virginia combined comprised the remaining 24% of the
registered players. As a point of reference, the Troy Bruins Youth Hockey Association, administered by
Hobart Arena and the Citys Recreation Department, is a member of USA Hockey.
USA Hockey - Mid-American Region
2013-2014 Registered Players by State
State
Number
% Total
Ohio
14,387
40%
Western Pennsylvania
12,862
36%
Indiana
5,922
16%
Kentucky
1,625
5%
West Virginia
1,147
3%
Mid-American Region Total
35,943
100%
Note:
Sorted in descending order by state.
Source: USA Hockey.

U.S. Figure Skating


U.S. Figure Skating (USFS) is the national governing body for figure skating in the U.S. USFS is a
member of the International Skating Union (ISU), the International Federation for Figure Skating, and the
U.S. Olympic Committee (USOC). USFS is comprised of member clubs, collegiate clubs, schoolaffiliated clubs, individual members, Friends of Figure Skating, and Basic Skills programs. The Troy
Skating Club is a member of the USFS and is part of the Eastern Great Lakes region.
15

Over the last 10 years, membership in USFS increased by 8%, from 158,000 in 2004-2005 to 171,000 in
2013-2014. Over the last five years, there has been a decrease in membership of 3%. During the profiled
period, USFS had the lowest membership in 2004-2005 and experienced its highest membership the
following year (2005-2006). The most recent Winter Olympics were held in 2006 (Turin), 2010
(Vancouver), and 2014 (Sochi) and USFS membership data reflects an increase in membership during
those corresponding Olympic seasons of 2005-2006, 2009-2010, and 2013-2014.
U.S. Figure Skating Membership
Year

Members % Change

2004-2005

158,000

2005-2006

196,000

24%

2006-2007

185,000

-6%

2007-2008

179,000

-3%

2008-2009

170,000

-5%

2009-2010

176,000

4%

2010-2011

180,000

2%

2011-2012

173,000

-4%

2012-2013

165,000

-5%

2013-2014

171,000

4%

175,300

1%

5-Year Change

Average

(5,000)

-3%

10-Year Change

13,000

8%

Source: U.S. Figure Skating.

Approximately 65% of USFS members are 18 years old and under. The largest percentage of members
(36%) falls within the 7 to 12 year old bracket. In addition, USFS indicates that 72% of their members
are females and 24% are male with 4% not indicating their specific gender.
U.S. Figure Skating Membership
Age Group
Percent of Total
Under 6 years old
15%
7 to 12 years old
36%
13 to 18 years old
14%
19 to 25 years old
5%
26 to 50 years old
10%
51+ years old
5%
Age unknown
16%
Total
101%
Note:
Amounts do not add to 100% due to rounding.
Source: U.S. Figure Skating.

In an interview with USFS representatives, the recent decrease in figure skating membership was partially
attributable to the increase in demand for hockey, particularly girls hockey, and challenges with securing
ice time for figure skating. The demand for ice for hockey programs impacts the figure skating clubs and
their access to ice to maintain and grow their programs.

16

USA Curling
USA Curling is the national governing body responsible for the oversight and growth of curling. In the
latest data available, USA Curling experienced growth from its original membership data by 53%. By
region, the highest participation rates are in Wisconsin, Grand National, Minnesota, Great Lakes, North
Dakota, and Mountain Pacific. This provides competitors and events in the area surrounding Troy and
Ohio. USA Curling is focused on developing their sport in the areas of youth, college, and
training/instruction. While the numbers are relatively small and data is not available annually, there has
been an increase in memberships over the time period for which data was available.
USA Curling Growth
Year

Membership

2001-2002
2005-2006
2009-2010
2010-2011

10,805
13,380
13,923
16,512

Source: USA Curling.

Sports and Fitness Industry Association / Physical Activity Council


The Sports and Fitness Industry Association (SFIA) in conjunction with the Physical Activity Council
(PAC) conducted a nationwide survey in 2014 of individuals and households to obtain sports participation
statistics. The sample included 19,240 completed surveys.
The tables that follow summarize ice hockey and ice skating participation figures for the past five years
based on the SFIA and PAC survey results. Total participation in each sport is defined as the sum of both
casual and CORE participants. The definition of casual and CORE participants varies by sport. The
majority of indoor sports define casual participants as those who play 1 to 50 times per year. CORE
participants are defined as those who are more heavily involved in the sport and therefore participate more
frequently than the casual player.
Between 2009 and 2013, the 2014 SFIA Participation Topline Report indicated that ice hockey averaged
2.2 million total participants, of which 1 million (or 46%) were categorized as casual players and 1.2
million (or 56%) were considered CORE players. For ice hockey, casual participation is defined as 1-12
times annually and CORE is defined as 13+ times participating in the sport annually. Based on this data,
total ice hockey participation increased by 19% during this five-year period.
Indoor Sports Participation Data - Ice Hockey (in 000s)
Category
Total
Casual
CORE
Source:

2009
2,018
918
1,101

2010
2,140
1,006
1,134

2011
2,131
957
1,174

2012
2,363
1,082
1,281

2013
2,393
1,093
1,300

Five-Year
Average
2,209
1,011
1,198

2014 SFIA Participation Topline Report .

17

Between 2009 and 2013, this same report indicates that ice skating averaged 11.2 million total participants.
Approximately 9.5 million (or 85%) of participants were categorized as casual compared to 1.7 million
(or 15%) classified as CORE participants. Similar to ice hockey, figure skating casual participation is
defined as 1-12 times annually and CORE is defined as 13+ times participating in the sport annually.
Participation fluctuated over the five year period.
Indoor Sports Participation Data - Ice Skating (in 000s)
Category
Total
Casual
CORE
Source:

2009
10,964
9,480
1,485

2010
11,477
9,817
1,660

2011
11,626
9,898
1,728

2012
11,214
9,375
1,838

2013
10,679
9,023
1,656

Five-Year
Average
11,192
9,519
1,673

2014 SFIA Participation Topline Report.

Potential Demand Generators


As part of the market research conducted to identify potential demand for a proposed new ice rink in Troy,
interviews were conducted with representatives from the following ice-based sports organizations:

Colin Chaulk Hockey Camps


Curl Troy
Dayton Hockey Association
Mid American District Hockey
Ohio State High School Athletic Association
Troy Adult Hockey

Troy Bruins Youth Hockey


Troy City Schools Athletics
Troy High School Hockey
Troy Skating Club
U.S. Figure Skating

Interviews were also conducted with the following event promoters/producers who represent concerts,
family shows, trade/consumer shows and non-ice sporting events that currently use or have utilized Hobart
Arena:

Awakening Events
Classic Motorsports and Presentations
Cooking School Show - Troy Daily News
Dayton Performing Arts Alliance
Feld Entertainment
Greater Midwest Cheer Expo

Southwest
District
Athletic
Board
(SWDAB) Wrestling District Tournament
Variety Attractions
VEE Corporation
Western Ohio Home Builders Association

It is important to understand from these organizations if potential opportunities exist for new and/or
expanded event bookings at Hobart Arena based on increased date availability. Additionally, an interview
was conducted with Serving the American Rinks (STAR), the joint venture funded by USA Hockey and
USFS, tasked with being the key industry resource for the ice facility operators.

18

Ice-Based Sports Organizations


Curl Troy
Curl Troy is comprised of a group of curlers in the Miami Valley and focused on growing interest in
curling in the region. This organization conducts leagues and Learn to Curl clinics at ice facilities in the
area. The organization began in 2010 at Hobart Arena and was accepted into the Great Lakes Curling
Association. Curl Troy has a relationship with Five Rivers MetroParks and utilizes the outdoor venue,
RiverScape MetroPark Ice Rink, as its primary ice surface. Curl Troy has a long term strategic vision to
build its own curling-specific venue but plans to continue to use RiverScape MetroPark Ice Rink at this
time. Hobart Arena or a new ice rink would be of interest for some ice time particularly due to the quality
staff and maintenance equipment at Hobart Arena. They are seeking reasonable evening and consistent
ice times. The sport of curling is not only sport-based but also social-based and, as such, they would
require gathering space at the venue for post-event socializing that offers food and beverage.
Troy Bruins Youth Hockey
The Troy Bruins Youth Hockey program is managed by the Troy Recreation Department and Hobart
Arena. The program has multiple participation levels which include Mite, Squirt, Pee Wee, Bantam, and
Midget. There are currently approximately 155 players in the program. Although this program offers
travel and house teams, its travel team hockey programs are relatively limited resulting in a loss of players
to Dayton, Cincinnati, and Columbus. It is estimated that 10% of possible Troy participants play in other
area hockey programs due to the lack of focus on travel-level competition programs. Consistent ice time
is a challenge with the unavailability of ice in April, May, and August as well as concert, family show,
and special event programming in Hobart Arena. The lack of ice availability is a limiting factor for growth
or expansion of Troys youth hockey programs.
It should be noted that the Troy Recreation Department strategically positions its youth and adult hockey
programs to be affordable and priced lower than other local area hockey and skating programs. The
hockey programs have seen an incremental increase over the past five years but are still priced lower than
other nearby hockey programs.
Troy High School Hockey
Troy High School Hockey has a boys varsity hockey team that practices and plays its games at Hobart
Arena. The school does not have a junior varsity boys team or a girls hockey program. The team plays
a 35-game regular-season schedule and is part of the Southwest Ohio High School Hockey League. In
2014-15, the team was able to schedule 10 of those games at Hobart Arena. The team was unable to have
an equal number of home and away games due to scheduling challenges at Hobart Arena. Representatives
indicated the team would like to play an equal number of games on their home ice and have more
consistent access for practice time.
While USA Hockey indicates that girls hockey is a growing sport across the U.S., it does not appear that
there is adequate interest to develop a girls high school hockey program at this time. Additionally, it does
not appear that there is enough interest in boys high school hockey to develop a junior varsity program
at this time.
19

Dayton Hockey Association


The Dayton Hockey Association (DHA) has over 500 active participants which is the largest youth hockey
program in the greater Dayton area. The DHA, also referred to as the Dayton Stealth, is the result of
combining three youth organizations in the area approximately four years ago. The volunteer-managed
organization hosts both house and travel teams for youth hockey players from age four to 18. It also has
varsity and junior varsity club high school teams. The DHA utilizes Hobart Arena, Hara Arena, Kettering
Ice Center, and South Metro Sports Center to host its programs. Hobart Arena hosts portions of the DHAs
annual Silver Sticks Tournament in December. The DHA is looking to grow its Hignite Memorial
Tournament that is traditionally held over Martin Luther King, Jr. Weekend at Hara Arena, Kettering Ice
Arena, and NTPRD Chiller.
Association organizers indicated an interest in using a potential second ice sheet in Troy. Northern
Dayton/Troy players have a need for ice time at a quality ice rink. Additionally, there is potential for
current tournaments to expand creating a need for additional ice. Based on distance, Troy may not be of
interest for regular play for members who are based in the southern Dayton area.
Ohio High School Athletic Association
The Ohio High School Athletic Association's (OHSAA) mission is to regulate and administer
interscholastic athletic competition in a fair and equitable manner while promoting the values of
participation in interscholastic athletics as an integral part of a student's educational experience. The
OHSAA stages the annual State and districts championships for boys high school ice hockey. The district
tournaments are held at Nationwide Arena (Columbus), Sylvania Tam-O-Shanter, Kent State University
Ice Arena, and Brooklyn Recreation Center (Cleveland). The State tournament is held at Nationwide
Arena (Columbus). Representatives indicated that they are satisfied at their current locations and have a
solid relationship with the Chillers management group for tournament management.
Troy Adult Hockey
The Troy Adult Drop-In Hockey program has been managed at Hobart Arena since 1983. The program
runs for one hour on Sunday mornings, and has approximately 50 participants with an average of 20
players attending the weekly session. It is anticipated that the program could utilize an evening time slot
during the week for drop-in adult players and continue to utilize their Sunday time slot year-round.
The Canes & Pucks League is an adult league played on Sunday nights during a two-hour time slot from
8:00 PM to 10:00 PM. The program is administered through the Troy Recreation Department with the
league offered during the Fall, Winter, and Summer. There are approximately 45 players who participate
in the League during its peak Winter session. The proposed new ice rink could allow for the adult hockey
league to add dates and sessions.

20

Mid American District Hockey


As mentioned previously, the Mid American District Hockey (MidAm) is U.S. hockeys regional
governing body and development organization of youth and adult amateur hockey talent in Ohio, Indiana,
Western Pennsylvania, Kentucky and West Virginia. While youth programs have traditionally been the
primary focus of MidAm, the organization is working towards developing its adult programs at all age
levels for increased recreational play. MidAm indicated that successful programs they are involved with
have full-time hockey directors that allow the maximization of year-round hockey programs at all age
levels. Representatives also indicated that a full-time hockey director has the time and ability to develop
girls programs and adult programs which are experiencing growth across the district. Year-round
marketing and program development are viewed as key efforts to successful rinks.
Colin Chaulk Hockey Camps
Colin Chaulk hosts a week-long hockey camp at Hobart Arena annually during the summer in conjunction
with the Troy Recreation Department. Registration for the camp has remained steady over the past five
years. Although representatives did not indicate demand for expansion or growth of their camp, they did
indicate that a new ice rink allows for potential expansion of hockey programs which would, in turn,
benefit their camp. Representatives view Hobart Arena as a well-maintained hockey facility that continues
to serve as a good location for their Dayton area camp.
Troy Skating Club
The Troy Skating Club (TSC) has a use agreement with Hobart Arena to house their skating programs.
Those programs include their Freestyle, Junior Club, Skate With Us, Friday evening and Saturday Ice,
Snow Plow Sam, Basic Skills, and Bridge programs. Previously, they had run a Preschool program and
that is no longer offered due to lack of demand. The TSC indicated that they are unable to fully support
the demands of the local skating community due to a lack of consistent ice time in Hobart Arena. The
club is unable to attract the quality coaches that are preferred due to the lack of ice time during the months
of April, May, and August. Hobart Arena also schedules concerts, family shows and special events that
disrupt the schedule throughout the year.
TSC hosts their annual Troy Summer Classic skating competition in early July. In 2010 and 2013, the
TSC hosted the USFSs Theatre on Ice competition. The TSC is interested in continuing its Troy Summer
Classic as well as bidding on Theatre on Ice in future years should a second ice sheet be constructed.
Additionally, the TSC is interested in pursuing additional competitions throughout the year. According
to TSC officials, membership has remained consistent and averages approximately 40 full-time members
and they administer skating programs to another 250+ people annually.
USFS
USFS is a member-based organization. Its skating clubs are responsible for promoting and producing
local, regional, and sectional competitions. USFS produces national events such as Skate America,
National Championships, and will host the World Championships in Boston, Massachusetts in 2016.
Neither Hobart Arena nor the proposed new ice rink would have the seating capacity required to host a
national event. In addition, the ice sheet at Hobart Arena is not large enough to host a national event.
21

However, representatives indicated that Troy Skating Club has a strong presence nationally with its
leadership and is well-positioned to host local and regional competitions. Representatives mentioned that
a seating capacity ranging between 1,000 and 1,500 would allow the TSC to host competitions in a new
ice rink. Representatives also indicated that the majority of ice rinks in North America have an ice sheet
size of 85 x 200 which is an NHL-sized rink. The ISU does not mandate a specific ice sheet dimension.
Having two ice sheets is essential to successfully hosting USFS-sanctioned events. One ice sheet is
utilized as a warm-up or practice rink and the other is utilized as the competition facility. Having two ice
sheets within close proximity is important in terms of ease for skaters and event organizers and is also
beneficial to the economics of hosting a figure skating competition. The local club recognizes revenue
from renting the practice facility ice to clubs and skaters that are participating in the competition. As such,
the ability to bid on events from a revenue perspective is essential to local clubs.
STAR Serving The American Rinks
STAR is a non-profit membership organization that provides education, resources and networking
opportunities for individuals, facilities and vendors in the American ice rink industry. STAR was formed
in 2000 as a joint venture between USA Hockey and USFS to foster the development, growth and success
of ice skating facilities in the U.S.
Conversations with STAR officials indicated that although the building of ice rinks has seen flat growth
post-recession, there has been more activity in ice rink development recently. Driving the activity is the
growth of hockey in the U.S., according to STAR officials. The concept of a dual ice complex offers the
opportunity to share staff and offer more consistent ice time for hockey and skating programs.
Consistency in public skating, Learn to Skate, learn to play hockey, and special events was cited as an
important factor in the success of these programs. Having two ice sheet options can help with consistency.
There is more opportunity to shift dates and times with more established participants such as youth hockey
teams for practices and adult leagues. Beginner programs and their ice days and times should be kept as
consistent as possible.
Having hockey director and skating director positions are important for the growth and success of
community-based hockey rinks, according to STAR officials. These can be part-time or full-time
positions or a combined full-time position but they are necessary for the growth and usage of community
rinks.
From a building program perspective, STAR officials indicated that recent trends in design have reduced
the emphasis on pro shops as the online gear industry is robust and customers are shopping online.
Concession areas are necessary as a customer service for daily users and tournament/competition
participants and spectators.
It was noted that both USA Hockey and USFS potentially have funds available for program development
but do not fund the construction of facilities.

22

Concerts, Family Shows, Consumer Shows, and Non-Ice Sporting Events


As mentioned previously, interviews were conducted with event promoters representing concert, family
show, consumer show, cheer and dance, and other non-ice based sporting event activity. Concert
promoters indicated that the fall and winter seasons should be the focus for Hobart Arenas touring event
activity. With the opening of the Rose Music Center at The Heights in Huber Heights as well as the Fraze
Pavilion in Kettering, and Country Concert in Fort Loramie, the summer season has tremendous
competition. It was noted that the concert touring industry in the region has a traditional protection period
of 90 days pre-event and 30 days post-event as well as a 75-mile radius. These date protection windows
and the protection radius does not allow other venues to compete as easily for summer touring concerts.
However, with the Rose Music Center having a June through September season and Country Concert
being a one-weekend, summer event, it does allow Hobart Arena to compete for the late fall and winter
season concerts.
The Nutter Center at Wright State University hosts many of the touring family shows in the greater Dayton
area. Previously, some of the indoor motorsports shows were held at Hara Arena but the Nutter Center
has a greater capacity, particularly for the highest price tickets, and larger floor dimensions. Based on
these factors, the Nutter Center is the primary home for the larger national touring family shows and is
anticipated to continue to host these events in the future.
One national family show promoter indicated that Hobart Arena is located in a challenging market given
the presence of the Nutter Center and Hara Arena. The promoter has challenges obtaining dates at the
Nutter Center given its University and non-University event schedule. Although Hara Arena is currently
viewed as a viable option, it will become less desirable over time to host family shows unless
renovations/upgrades are made. This particular promoter had a very positive experience with the
management team at Hobart Arena. Although Hobart Arena is a new venue for this event, the promoter
expected higher ticket sales. A variety of factors can influence ticket sales including customer awareness
of Troy and Hobart Arena and advertising strategy. There is a customers perception of traveling into a
larger city for an event. In general, promoters find that customers who live in a suburban area will travel
into a larger city for an event but that the reverse is not as likely where urban customers will travel to a
suburban venue for a family show. Promoters mentioned that they would only play Hobart Arena or a
venue in Dayton, not both, with the Nutter Center being the preferred location. However, this promoter
would play Hobart Arena again if the Nutter Center was not available. The dates would likely be midweek and a co-promotion type of rental agreement may be a viable option.
Consumer shows indicated that they are rebounding back to exhibitor and attendee levels post-economic
downturn. These levels have slowly risen and are continuing to rise. The Home Show will likely continue
as a one-weekend event due to the sales cycle of home products. A potential fall show could be considered
if exhibitor and attendee numbers continue to increase and create additional demand. The Cooking School
Show has indicated that they are an annual event and likely would not add additional shows at this time.
Their needs are being met at Hobart Arena currently.

23

The Dayton Performing Arts Alliance is the producer of the Dayton Philharmonic Holiday Concert that
was held at Hobart Arena in December. Representatives indicated that although attendance numbers did
not meet expectations, they are committed to 2015 and are adjusting marketing and ticket pricing with the
goal of increasing attendance and related revenue. The Performing Arts Alliance prefers to utilize its own
ticketing arm in an effort to best analyze the ticket buying data. The Performing Arts Alliances goal is
to create a new audience for their product in the area north of Dayton through this holiday event in Troy.
The late winter SWDAB Wrestling District Tournament continues to find Hobart Arena to be the right fit
for its tournament needs. Organizers indicated that there is potential for a possible Sectional Tournament
the weekend before the District Tournament. Costs are an important factor for the non-profit organization.
Hobart Arena has good sightlines for their tournament and fits their current event needs.
For non-hockey sports in the Troy City Schools, such as basketball or volleyball, representatives from the
Athletics Department indicated that the local high school gymnasiums are sufficient to accommodate their
current needs from an operational and spectator capacity perspective. In addition, keeping these games
and tournaments for both basketball and volleyball on school property is a more financially viable option
for the schools currently.
The Greater Midwest Cheer & Dance Expo is a one-day event hosted annually at Hobart Arena in
February. The organization that produces these dance and cheerleading events also has events in Dayton,
Fairfield, Toledo and Columbus. Event producers indicated that they enjoy a solid relationship with
Hobart Arena and its management staff and will continue to host their annual event in Troy. However,
while the event has adjusted to Hobart Arena it is a more difficult facility to host their event due to the
limited floor space. Dance and cheer events require both a warm-up area and competition area and this is
challenging due to the limited floor dimensions in Hobart Arena.
Summary
Individual and team ice hockey participation statistics reveal competitive hockey has a significant market
in the Mid-American region. Competitive sporting event organizers indicated strong interest in hosting a
variety of ice-related events in Troy if there was an additional ice rink. These potential demand generators
indicated the need for access to consistent ice time throughout the year. It is particularly difficult for
organizations to schedule around other venue events such as concerts, family shows, expos, and special
events. Additionally, it is challenging to maintain consistency with their players and participants during
the weeks in April and May and the month of August when ice is removed from Hobart Arena. In addition,
the figure skating club is challenged to book consistent ice time at Hobart Arena. As such, these ice-based
programs are limited in their ability to grow and expand program offerings to the community. Troy is
well-situated with excellent access to other state and regional population centers. Hockey is experiencing
growth in Ohio and the broader Mid-American region and local demand for ice time is growing. Providing
an additional ice rink could better position Troy to retain and expand its existing hockey, figure skating
and curling programs as well as open up dates at Hobart Arena for other revenue generating events.

24

Table of Contents

1.

Introduction

2.

General Market Overview

3.

Industry Trends and Potential Demand

13

4.

Comparable Facility Case Studies

25

5.

Competitive Market Assessment

34

6.

Program and Cost Estimate

37

7.

Financial Pro Forma

41

8.

Limiting Conditions and Assumptions

51

25

Comparable Facility Case Studies


This section of the report provides case studies on select ice rink facilities in terms of
ownership/management structure, building program elements, event activity, financial operations, and
operating strategies obtained from direct interviews with management as well as secondary sources.
The following facilities were chosen based on their similarity in terms of facility type and market focus
as well as from discussions with representatives at Hobart Arena and feedback from existing/potential
user groups:

Cedar Rapids Ice Arena in Cedar Rapids, Iowa


Lakeview Arena in Marquette, Michigan
Norway Savings Bank Arena in Auburn, Maine
Ralston Arena in Ralston, Nebraska
Vadnais Sports Center in Maplewood, Minnesota

While comparable case studies can provide significant data, they still only serve as a guide. Factors such
as building program/configuration, market conditions and competitive environment vary among venues
and impact operations making it difficult to find a perfect comparable facility. However, these facilities
offer a frame of reference in terms of common programmatic elements and certain areas of operation.
Each of the comparable facilities profiled in this section are dual ice sheet complexes. All of the facilities
are owned by a governmental entity. Four of the profiled facilities are operated by their owner and Cedar
Rapids Ice Arena is operated by a professional management company.
Profiled Facilities - Owner/Operator Structure
Facility
Owner
Cedar Rapids Ice Arena
City of Cedar Rapids
Lakeview Arena
City of Marquette
City of Auburn
Norway Savings Bank Arena
Ralston Arena
City of Ralston
Vadnais Sports Center
Ramsey County
Note:
Sorted alphabetically.
Sources: Individual facilities; secondary research.

Operator
Venuworks
City of Marquette
City of Auburn
City of Ralston
Ramsey County

All of the profiled facilities all have NHL-sized ice sheets (85 x 200). One ice sheet at Cedar Rapids Ice
Arena has an Olympic-sized ice surface (100 x 200) which is larger than an NHL-sized surface.

26

All facilities have one facility with a larger capacity for seating averaging 2,575 as well as a smaller seating
capacity in the second ice rink (average of 477). Cedar Rapids has a United States Hockey League
professional minor league tenant team. Unlike Hobart Arena, all of the profiled facilities have a regulation
size rink.
Profiled Facilities - Program
Ice Sheet #1
Facility
Hockey Capacity
Dimensions
Cedar Rapids
4,000
85 x 200 (NHL)
Ralston Arena
3,320
85 x 200 (NHL)
Lakeview Arena
3,100
85 x 200 (NHL)
Vadnais Sports Center
1,245
85 x 200 (NHL)
Norway Savings Bank Arena
1,210
85 x 200 (NHL)
Average
2,575
Note:
Sorted in descending order by hockey capacity of Ice Sheet #1.
Sources: Individual facilities; secondary research.

Ice Sheet #2
Hockey Capacity
Dimensions
200
100 x 200 (Olympic)
275
85 x 200 (NHL)
300
85 x 200 (NHL)
658
85 x 200 (NHL)
950
85 x 200 (NHL)
477

Other common program elements include on-site concessions, a pro shop for skate rental/repair, locker
rooms and retail space. The remainder of this section includes case studies describing each of the
profiled facilities.
Ralston Arena Ralston, Nebraska

Source: Brad Williams Photography

Source: Boyd Jones Construction

The Ralston Arena is a dual-ice sheet facility that is owned and operated by the City of Ralston and opened
in October of 2012. The Ralston Arena has a hockey capacity of 3,320 and an NHL-sized ice surface.
The adjacent Community Rink is an NHL-sized ice surface with a spectator capacity of 275. Ralston
Arena has 14 suites, 177 club seats and five concession stands. The Ralston Arena ice surface is active
for eight months of the year and removed for the months of June through September. The Community
Rink has ice available throughout the year. There is a 3,500 square-foot retail space that is leased out to
a third party.
The main arena is home to a variety of programs including the United States Hockey Leagues Omaha
Lancers, Summit Leagues University of Nebraska Omahas Mens Basketball program, Champions
Professional Indoor Football Leagues Omaha Beef, Legends Football Leagues Omaha Heart, and
Victory Fighting Championship. The University of Nebraska Omahas athletic programs, including mens
basketball, will be moving into the under-construction Baxter Arena in 2015.
27

The Community Rink has a variety of programs that utilize the facility as their primary venue. The Ralston
Skating Academy (RSA), Junior Lancers, Omaha Hockey Club, and Aksarben Curling Club also utilize
Ralston Arena as their primary facility. The RSA was created when three area skating programs joined
together under one umbrella when the new Arena came online. There are also adult recreational leagues
that are run independently. The City of Ralston Parks and Recreation Department does not have programs
to support ice skating activities. All instructional and learn-to-skate programs are organized and
administered through the RSA or Omaha Hockey Club.
There are 19 full-time staff members and eight part-time staff members that operate the two ice sheets.
The main arena rents for $225 per hour and the Community Rink rents for $190 per hour. Food and
beverage operations are handled in-house and the facility has a liquor license. The City of Ralstons
Statement of Activities for the year ending September 30, 2013 indicates operating revenues of $3.4
million and operating expenses of $6.0 million for an operating loss of $2.6 million. Excluding
depreciation and amortization expenses of $1.8 million, the facility realized a net operating loss of
$840,000.
Vadnais Sports Center Maplewood, Minnesota

Source: Master Electric Mankato, MN

The Vadnais Sports Center was developed in 2010 and was originally owned by a private organization.
Ramsey County purchased the facility in 2014 and currently operates it through its Recreation Department.
The Vadnais Sports Center is a two-sheet ice and sports dome facility, currently the County has a total of
11 facilities with 13 sheets of ice under its management.
Both ice sheets at Vadnais are NHL size with one rink having a spectator capacity of 1,245 and the second
rink having a capacity of 658, and both are open year-round. The turf-surface dome has three individual
fields and can be used for soccer, baseball, softball, lacrosse, football and other athletic activities. The
Sports Center is home to the White Bear Lake Girls and Boys Hockey teams and the Mounds View Boys
Hockey team.
Vadnais Sports Center has five full-time staff and seasonal/temporary employees that equate to two fulltime employees. The full-time staff includes an arena superintendent, three maintenance and operations
positions and a park aide. Vadnais Sports Center has a concessions operation that is leased to a third party
operator but does not have a ProShop. The County Recreation Department also has a position that works
with each of the hockey and skating organizations at their 11 venues to facilitate the needs of the
organizations, assist with ice scheduling, and maximize the purchase of ice time. The position provides a
centralized leadership position for hockey, skating, and other ice-based organizations to use as a resource.
The County does not provide programming.
28

Organizations buy their ice time and the County focuses on providing strong management and operations
of their facilities. Hourly ice rates vary based on season and peak hours and range from $115 to $180 per
hour. Tournament ice rentals are $205 per hour. There are set rates for game rentals that are pro-rated
based on the number of games but begin at $700 for a single game. The two ice sheets and dome facility
were constructed for a reported $26 million by a not-for-profit developer. The County purchased the
facility for $10.5 million. The County has not completed a full year of operation of the facility, it
reportedly anticipates revenues of approximately $1.7 million and expenses of approximately $1.0 million.
Of the $700,000 in estimated net revenue, an average of $500,000 will be repaid to the Countys capital
improvement fund for 20 years and the remaining $200,000 is anticipated to be applied to contingency
costs and future capital improvements.
The staff at Vadnais is seeing a greater demand for space for dry land training including synthetic ice
areas, workout rooms, and space for running and cross training. The demand for dry land training is a
good fit with their facility with its two ice sheets and three-field turf dome.
The booking priority for ice begins with high school hockey games and then practices, followed by figure
skating and youth hockey programs. Figure skating, in general, is also able to use ice at times that is
generally not ideal for hockey, in particular on Sundays. Adult programs are the final group to be
scheduled.
It was noted that the County provides ice facilities as a service to their community and citizens. Based on
the hourly rentals, it is challenging for their ice venues to generate net income based on ice rentals alone.
Therefore, they focus on providing the best service and facilities that they can at a reasonable price for
their community. The focus, from a contract perspective, is to secure users for the maximum amount of
ice time possible with each organization.
The County has recently assembled an Arena Task Force as a response to the R-22 phase out requirements,
as mandated by the Environmental Protection Agency and its Clean Air Act. R-22 is commonly known
as Freon, a chemical that may affect the ozone layer. The R-22 phase out requires venues with an R-22
ice refrigeration system and floor to be replaced in coming years. As such, the County is evaluating its
ice facilities and determining best uses for these facilities in consideration of the costly and potentially
prohibitive retrofits to their venues.
Cedar Rapids Ice Arena Cedar Rapids, Iowa

Source: cedar-rapids.com

Source: www.kcrg.com

29

The Cedar Rapids Ice Arena is owned by the City of Cedar Rapids and operated by VenuWorks, a national
professional management company of arenas, convention centers and other public assembly facilities.
The facility opened in 2000 and has two ice sheets. One ice sheet is NHL-sized and has a capacity of
4,000 and the second ice sheet is Olympic-sized and has a capacity of 200. The RoughRiders of the United
States Hockey League utilize the NHL-sized sheet as its home ice. Other primary users of the facility
include the Cedar Rapids Youth Hockey Association, a curling organization, figure skating club, and a
high school.
There are four full-time employees and an average of eight part-time seasonal employees. The four fulltime positions include a General Manager, Program Director, Food and Beverage Manager, and an
Operations Manager. The Program Director is a key position in the organization. Originally, there was
two full-time staff members dedicated to the development of ice-based programs as well as a Hockey
Director and Figure Skating Director. As the youth hockey and figure skating organizations became more
developed the necessity for a Hockey Director and a Figure Skating Director was no longer required. A
Program Director position was created to work with both the youth hockey association and figure skating
club to cultivate their programs and to increase non-peak time business. These responsibilities include
developing roller hockey programs during non-ice times in the NHL rink, partnering with the City Parks
and Recreation Department on summer Learn to Skate and Instructional Hockey programs, and creating
awareness for public skating opportunities.
The ice rate is currently $200 per hour. Facility management will be shifting to peak and non-peak hourly
rental rates. Peak hours, between 5:00 PM and 10:00 PM on weekdays and all hours on weekends will be
raised to $235 per hour while non-peak hours will remain at $200 per hour.
Norway Savings Bank Arena Auburn, Maine

Source: Hebert Construction

Source: LA Future Forum

Norway Savings Bank Arena opened in November of 2013 and is owned by a private developer and leased
to the City of Auburn. Both ice sheets are NHL-sized; one has a capacity of 1,200 and the other one has
a capacity of 950. There are seven high school programs that utilize the facility for practices and games.
Additionally, the Maine Gladiators, a youth hockey organization utilizes the facility and has
approximately 700 participants.
One rink is open for nine months of the year (June through February) and the second rink is open year
round. During the non-ice months, Rink 1 is utilized for car shows, motorcycle shows, small concerts,
community events, and off-ice dry land training. From a booking priority perspective, youth organizations
have primary booking options, followed by high schools and adult programming. Other programs
utilizing the facility include groups that home-school their children which enable the facility to book nonpeak ice times during weekday mornings.
30

The facility is operated by City staff including eight full-time, four part-time, and three seasonal staff
members. Full-time staff includes a General Manager, Administrative Assistant, and six Ice
Maintenance/Operations/Ice Resurface Machine Drivers. Facility staff manages the Learn to Skate to
skate, youth hockey, and adult recreational hockey programs, as well as develop and manage year round
camps and clinics. The regions figure skating program is beginning to develop and the facility staff is
also looking to establish and grow the figure skating programs. The staff works closely with the high
schools, adult recreation leagues, and youth leagues on booking tournaments throughout the year. A key
area of focus is providing a balanced schedule of events with protection of Learn to Skate programs and
public skate programs. Facility management believes strongly in developing new skaters through the
Learn to Skate programs and by working with other youth hockey programs on maintaining consistency
with these programs throughout the year.
The facility has a concessions area, a tavern, and a pro shop of which all are leased to third party operators.
The concessions operator/tavern operator does carry a liquor license that extends to the facility, as needed.
The facility does not have a fitness center but utilizes the non-ice time in Rink 1 for off-ice dry land
training. A portion of the facilitys locker rooms are leased out on a seasonal basis to local high school
teams. The hourly rental rate at the facility is $235 per hour.
For Fiscal Year 2015, the City budgeted $1.22 million in operating revenues and $1.21 million in operating
expenses at the facility for an estimated net operating income of $10,000. The Fiscal Year 2016 budget
projects a net operating loss of $200,000 based on $1.0 million in estimated operating revenues and $1.2
million in estimated operating expenses. The major revenue generators are an annual agreement with
Maine Gladiators youth hockey, sponsorships, adult league fees, and private rental fees. The primary
operating expenses include the annual lease payment to the private owner, salaries, utilities, and capital
improvements. Norway Savings Bank has a 10-year naming rights agreement with the City for a total of
$770,000.
Lakeview Arena Marquette, Michigan

Source: www.mqtcty.org

Lakeview Arena is owned and operated by the City of Marquette. Lakeview Arena is comprised of two
arenas; the Russell Arena and Olson Arena. Both venues opened in 1974 and are NHL-sized ice sheets.
There is a third ice sheet in a separate facility across the street that is managed by the same management
team. Russell Arena has a capacity of approximately 3,100 and Olson Arena has a standing room only
capacity of 300. The facility is home to the Marquette Figure Skating Club and Marquette Junior Hockey
as well as a Junior A team, high school teams, adult recreation leagues, public skating, and a roller hockey
team.

31

All programming is managed by the Marquette Figure Skating Club and Marquette Junior Hockey.
However, facility management is responsible for all special events such as food shows, circuses, roller
derby, weddings, etc. when there is not ice in the facility. There are also meeting rooms that are rented
out throughout the year. Lakeview Arena is managed by one full-time manager with part-time and
seasonal staff support. There is one permanent part-time ice maintenance employee, one permanent parttime custodian as well as seven to nine seasonal part-time employees responsible for operating the ice
resurfaces, supervising skate rentals, and maintenance.
Both the ice sheets in Russell Arena and Olson Arena are taken off-line from approximately April through
August. Rates are based on prime versus non-prime hours. Prime hours are identified as 3:00 PM to
11:00 PM on weekdays and all day Saturday and Sunday when the rental rate is $170 per hour for
residents. Non-prime hours are identified as 11:00 AM to 3:00 PM Monday through Friday with a resident
rate of $115 per hour. The tournament ice rental rate is $200 per hour. Non-residents rates are $50 to $70
higher depending on the time and type of ice that is rented. Peak season is mid-October through midMarch. There Pro Shop and concession operations are leased out to third party operators. The Arena holds
a liquor license.
Facility management estimates that 70% to 75% of their prime hours are booked while 40% to 50% of
their non-prime hours are booked. The 2013 financial statement reports total revenues of $458,000 and
total expenditures of $713,000 for a net operating loss of $255,000.
Summary
The following summarizes common themes/success factors based on input from management at the
profiled comparable dual ice facilities:

Demographic/economic characteristics that support ice-related sports.

Proximity to supporting amenities such as accommodations, restaurants, retail and entertainment


establishments.

Building program elements and supporting infrastructure that appropriately accommodates the desired
target market(s)

Reasonable ice fees for the market.

Technology to host games and competitions which includes scoreboards, sound system, and Wi-Fi.

Spectator seating for at least one ice sheet so it can host larger games and competitions.

Most facilities operate one ice sheet year round with the other operating seasonally.

Facilities support their local community demand for ice-based sports and programs.

Facilities are well-maintained, clean, and safe environments for families and children.

Most facilities operate with a lean, dedicated full-time staff and augment seasonally with part-time
staff.

There is staff that understands the unique programming needs of hockey, figure skating, and hockey
at all levels of competition and recreational programs.
32

There is an understanding and commitment for Learn to Skate/Instructional Skate programs as a


pledge for feeding the pipeline of skating participants as well as keeping all levels of programs solid.

There is a relationship with primary user organizations and a delicate balance to booking these
programs.

In many cases, there is a dedicated staff member who works closely with all user groups to ensure
efficient scheduling of ice and to maximize booking of ice time.

Most facilities have staff that focus on developing programming for non-prime ice time or off-season,
non-ice events.

Most facilities operate at a deficit.

Most facilities are not driven by a mission to drive economic impact tournament or competition
business.

There is a growing demand for non-ice space for fitness training.

33

Table of Contents

1.

Introduction

2.

General Market Overview

3.

Industry Trends and Potential Demand

13

4.

Comparable Facility Case Studies

25

5.

Competitive Market Assessment

34

6.

Program and Cost Estimate

37

7.

Financial Pro Forma

41

8.

Limiting Conditions and Assumptions

51

34

Competitive Market Assessment


Previous sections of this report discussed various supply and demand factors that may influence the type
and amount of event activity that may occur at a new ice rink in Troy including select demographic and
economic characteristics, accessibility, hotel supply, area facilities, industry trends, input from potential
demand generators and comparable facility case studies. Based on the primary and secondary research
conducted for this study, this section summarizes relative strengths, challenges, opportunities, and threats
associated with the proposed new ice rink in Troy.
Troys primary market demographics including its population size, income, accessibility, affordability,
and visitor amenities are strengths in terms of hosting area instructional ice-related sports as well as
competitive event activity at the proposed new ice rink. Input from area sports organizations and existing
ice rinks in the primary market indicate there is demand for additional year-round ice. Offering consistent
year-round ice is necessary for local sports organizations to maintain the quality of their programs and
expand to accommodate growing demand. The possible closing of two area ice rinks could serve to
exacerbate this local need for ice time and well-position the proposed new ice rink in Troy to accommodate
displaced programming.
The potential site location for the proposed ice rink is adjacent to Hobart Arena. Offering two ice rinks
in Troy would increase the Citys marketability for competitive ice events such as tournaments and figure
skating competitions that draw out-of-town visitors. Troy is located in a region experiencing steady
growth in hockey and the City has a well-respected figure skating organization. These characteristics
could serve to enhance the ability for Troy to draw regional and/or national competitive events to the
proposed new ice rink. In addition, Hobart Arenas experienced management/operations team and
existing relationships with ice users would allow the proposed new ice rink to be programmed in a manner
that maximizes usage and accommodates each groups unique needs.
Challenges with the proposed new ice rinks operation include the cost-consciousness of many amateur
youth and adult sports organizations, the reliance of local sports programs on volunteer leadership that
can experience turnover, and the likely need for on-going operational funding. That said, shifting icerelated programs to the proposed new ice rink will increase date availability at Hobart Arena for other
revenue generating activities. Further, sharing staff and other administrative expenses with Hobart Arena
could provide operating efficiencies for the proposed new ice rink. Combined, these benefits of operating
dual ice facilities could offset some of the proposed ice rinks operating costs.
Preliminary Program Recommendations
Market research conducted for this analysis including input from event producers/users and interviews
with management of comparable dual ice facilities suggests that constructing a new ice rink with the
following building program elements and patron amenities would enhance Troys ability to support and
potentially expand existing sports programs as well as attract new activities:

35

An NHL-sized 85 x 200 ice sheet

High quality ice plant and maintenance equipment

Well lit, safe, clean facility

Spectator seating for a minimum of approximately 1,000 spectators to accommodate modest


tournament and competition activity which may include retractable seats for maximum flexibility

Adequate, convenient on-site parking and appropriate parking management to accommodate traffic
flow, particularly when a simultaneous event is occurring at Hobart Arena

Restrooms and concessions

Lobby space

Locker rooms/lounges for teams and officials

Locker rooms that may be available for full-season, exclusive use for select teams or programs e.g.
a high school hockey team

On-site storage space for the facility and equipment

Administrative space, as needed, for facility management

PA system, scoreboard, and Wi-Fi connectivity throughout the facility

Assuming that the proposed ice rink is located adjacent to Hobart Arena, the facilities could share space,
as needed, such as meeting/breakout rooms, hospitality/VIP areas, media/interview room, and banquet
space to service events.

36

Table of Contents

1.

Introduction

2.

General Market Overview

3.

Industry Trends and Potential Demand

13

4.

Comparable Facility Case Studies

25

5.

Competitive Market Assessment

34

6.

Program and Cost Estimate

37

7.

Financial Pro Forma

41

8.

Limiting Conditions and Assumptions

51

37

Program and Cost Estimate


MSA Architects, an architectural firm selected by the City to design the current renovations to Hobart
Arena, prepared a preliminary building program, conceptual site plan, and cost estimate for the proposed
new ice rink based on the recommended program elements outlined in the market assessment.
Building Program
Based on the recommended building program
elements, MSA Architects developed the adjacent
preliminary program outline taking into account
the space necessary for the ice rink, seating,
circulation, back-of-house, and support space.
This program assumes that the second ice sheet is
physically attached to Hobart Arena and that the
ice rink is 85 by 200.

Preliminary Program
Proposed New Ice Rink at Hobart Arena
Area
Square Feet
Rink and Seating (1,000 seats)
28,793
Staff Office
300
Skate Rental
200
Locker Room 1
800
Locker Room 2
800
Locker Room 3
800
Locker Room 4
800
Official Locker 1
300
Official Locker 2
300
Concession
700
Men's Restroom
500
Women's Restroom
500
Storage
2,000
Circulation
4,775
Total
41,568
Source: MSA Sport.

Conceptual Site Plan


MSA Architects developed a preliminary conceptual site plan showing how, in general, the proposed new
ice rink could fit on the site adjacent to Hobart Arena after the on-going renovations are completed. This
initial site plan does not take into account certain program elements of the second ice rink that will be
necessary if/when simultaneous events are held at both venues. These factors include, but are not limited
to, the following:

Identifying a primary entrance into secondary ice sheet

Creating a primary entrance with ticket windows, and access points for ticketed events

Lobby / flow space for patrons entering the facility as well as throughout a tournament type of event

Lobby / gathering space for event participants between games or competition times

Services available in lobby space including concessions/vending area, restrooms

Ability to run two facilities concurrently for an event

Ability to flow patrons between both facilities without impeding back-of-house space

These issues as well as the overall recommended building program will be addressed in more detail in a
revised conceptual site plan prepared by MSA Architects. The next page depicts a preliminary conceptual
site plans.
38

Preliminary Conceptual Site Plan Proposed New Ice Rink

39

Cost Estimate
Based on the recommended building program and other programmatic considerations including the shared
site with Hobart Arena, the table below presents an order-of-magnitude range of total development
concept costs for the proposed new ice rink prepared by MSA Architects. Building construction costs are
estimated to be approximately $5.7 million in current dollars. Factoring in professional fees and
contingency fees, the total construction cost is estimated to be approximately $7.4 million. The costs for
the owner are estimated to be approximately $269,500. The total concept cost is estimated to be
approximately $7.6 million. This total cost estimate includes expanding Hobart Arenas existing ice sheet
from 85 by 185 to 85 by 200. The cost estimate is preliminary in nature and will need to be refined
based on more detailed architectural programming should the City choose to move forward. Currently,
the construction industry is overly busy, which creates a very volatile and un-predictable bidding
climate. Construction costs are rapid rising and it is suggested that an escalation factor of 10% for every
6 months from the issuance of this report.
Preliminary Concept Cost Estimate
Proposed New Ice Rink at Hobart Arena
Estimated Cost/Budget

Category
Construction Costs
Building Construction
Site Development (Demolition, Sitework, New)
New Building Construction (One Story)
Subtotal

$250,000
$5,403,800
$5,653,800

Professional Fees
Architecture & Engineering
Reimbursable Expenses
Subtotal
Construction Costs - Total
Construction Contingency
Grand Total - Construction Costs

$565,400
$282,700
$848,100
$6,501,900
$848,100
$7,350,000

Costs by Owner
Furniture, Fixtures, Equipment (FF&E)
Audio Visual Equipment (Scoreboard)
Specialty Equipment (e.g., Ice Mats, Dasher boards, etc.)
Legal Advertising
Environmental Testing
Survey
Geotech/Borings
Special Inspections
Geotech
Structural
Permits/Fees
Building
Tap/Connection Fees
Document Printing
Moving
Land Acquisition
Cost by Owner - Total
Owner Contingency
Grand Total - Cost by Owner
Total Concept Cost
Source: MSA Sport.

$50,000
$50,000
$50,000
$3,000
$10,000
$10,000
$6,000
$0
$8,000
$8,000
$0
$15,000
$15,000
$20,000
$0
$0
$245,000
$24,500
$269,500
$7,619,500

40

Table of Contents

1.

Introduction

2.

General Market Overview

3.

Industry Trends and Potential Demand

13

4.

Comparable Facility Case Studies

25

5.

Competitive Market Assessment

34

6.

Program and Cost Estimate

37

7.

Financial Pro Forma

41

8.

Limiting Conditions and Assumptions

51

41

Financial Pro Forma


As with many communities, financial considerations associated with construction, on-going operations
and maintenance often dictate whether a particular project is deemed viable and whether a phased
development approach may be necessary. Further, the operating strategy plays a critical role in the
operations of similar facilities. With respect to financial performance, it is important to understand that
similar ice rinks realize an operating deficit. However, one of the primary reasons for developing these
types of facilities is to serve a community need much like a public library, aquatic center, or park. In
addition, offering two ice rinks can increase Troys marketability for competitive ice-related sporting
events that can draw out-of-town visitors.
Crossroads assisted the City in developing a hypothetical, order-of-magnitude estimate of operating
revenues and operating expenses before taxes, depreciation and debt service for a proposed new ice rink
in Troy for a stabilized year of operations. This analysis is also based on certain hypothetical assumptions
pertaining to operations of the facility, usage levels and other related financial assumptions agreed to by
the City. The accompanying analysis was prepared for internal use by the City for its consideration of
plans for a proposed new ice rink and should not be used or relied upon for any other purpose including
financing of the project.
The analysis performed was limited in nature and, as such, Crossroads does not express an opinion or any
other form of assurance on the information presented in this report. As with all estimates of this type, we
cannot guarantee the results nor is any warranty intended that they can be achieved. The estimates of
revenues and expenses are based on the anticipated size, location, quality and efficiency of the potential
new ice rink. Since these estimates and assumptions are based on circumstances that have not yet
transpired, they are subject to variation. Further, there will usually be differences between estimated and
actual results because events and circumstances frequently do not occur as expected, and those differences
may be material.
As shown in the table below, it is estimated that the proposed new ice rink will operate at a deficit before
taxes, debt service and depreciation in a stabilized year of operations. Although these estimates only
reflect the operations associated with the proposed new ice rink, assumptions used in the analysis
regarding shared resources with Hobart Arena are outlined throughout this section.
Proposed New Ice Rink in Troy
Estimate of Annual Financial Operations
Category

Range

Net Operating Revenues

$342,000

$386,000

Net Operating Expenses

$444,000

$483,000

($102,000)

($97,000)

$17,000

$19,000

($119,000)

($116,000)

77%

80%

Estimate of Net Operating Revenues Over


Net Operating Expenses
Reserve for Replacement
Net Operating Loss Before Taxes,
Debt Service and Depreciation
Expense Coverage Ratio

Note: Expense coverage ratio equals operating revenues divided by operating expenses.

42

This financial estimate is based on information from primary and secondary sources including, but not
limited to, general market data; existing and planned facilities in the area; input from area stakeholders;
historical Hobart Arena ice operations; input from existing and potential users; the preliminary building
program provided in the previous section; information on comparable facilities; as well as input from the
City. This analysis represents a net operating revenue and operating expense assessment and is subject to
change depending on the actual building program, contractual agreements with service providers, and
further refinements regarding operating strategies for the proposed new ice rink.
General Assumptions
Based on input from the City, the following assumptions were used to develop the estimates of event
activity and financial operations:

The proposed site is adjacent to Hobart Arena in order to take advantage of shared human and
physical resources.
The building program outlined previously which generally consists of an NHL sized ice sheet with
a minimum of approximately 1,000 spectator seats.
The City owns and operates the proposed new ice rink jointly with Hobart Arena.
The proposed new ice rink is staffed with additional personnel who specialize in
marketing/management of community based ice programming as well as ice sporting events and
has established contacts and strong relationships with regional/national sporting event promoters.
The Troy Skating Club continues to have viable leadership and will expand its programs including
Learn-to-Skate.
The Troy High School hockey team continues to offer varsity hockey and potentially expand its
hockey programs.
The Troy Recreation Department builds upon its current programs and expands to offer new
hockey programs.
The proposed new ice rink primarily focuses on hosting local community based ice activities.
The facility is aggressively marketed and management develops ice related programming as well
as special events (e.g., corporate skates, birthday parties, etc.).
The facility will be aggressively marketed by the City and Miami County Convention & Visitors
Bureau.
A high level of quality customer service is provided.
The site location is adequate in terms of visibility, ingress and egress, parking, safety and other
similar issues.
No other similar, competitive facilities are built in the region.
No major economic fluctuations or acts of nature occur that could adversely impact the dynamics
of the project.
This analysis does not include an estimate for taxes, debt service or depreciation.
Amounts are presented in current dollars and reflect a stabilized year of operations.

43

It should be noted that these assumptions are preliminary and will continue to be refined as decisions
related to the building program, site location and other operating characteristics evolve.
Estimated Usage/Event Activity
The following table shows the hypothetical estimate of utilization for the proposed new ice rink in a
stabilized year based on the market research discussed previously. Subsequent to construction, ice rinks
typically experience a ramp up period to a stabilized level of activity which occurs for several reasons.
For instance, some groups that book their event years in advance may not want to risk that construction is
delayed and not completed in time for their event. In addition, some groups may choose to let management
fine tune its operations before scheduling an event at a newly constructed venue. However, it is
important to recognize that the overall utilization at any ice rink is typically dependent on a number of
factors (e.g., market size; accessibility; nearby amenities; size, configuration and quality of the facilities
offered; effectiveness of the management team in booking the facility; date availability; cost, etc.) and is
rarely consistent. As such, the utilization estimate presented herein represents a stabilized year of
operations.
Proposed New Ice Rink in Troy
Estimate of Usage/Event Activity
Category
Peak Ice Season
Available Hours Per Day

Total
September - March
15

Number of Peak Hours Available Per Year


Estimated Number of Peak Hours Used Per Year
Estimated % of Available Peak Hours Used

2,555
2,123
83%

Number of Non-Peak Hours Available Per Year


Estimated Number of Non-Peak Hours Used Per Year
Estimated % of Available Non-Peak Hours Used

2,920
1,473
50%

Number of Total Hours Available Per Year


Estimated Number of Total Hours Used Per Year
Estimated % of Total Hours Used

5,475
3,595
66%

It is assumed that the proposed ice rink operates year-round with a peak season from September to March
and off-peak months the remainder of the year. Daily operating hours are assumed to be 7:00 AM to
10:00 PM with peak hours occurring from 3:00 PM to 10:00 PM. Primary users of the facility are assumed
to be the Troy Skating Club and Troy Hockey Association each utilizing the ice year-round allowing for
expansion of their existing programs and the addition of new programs. Usage by the Troy High School
hockey team is assumed to include seven more games annually as well as additional practice sessions
during the peak season. Given that one of the objectives is to support instructional and recreational
community use, the Canes & Pucks adult amateur league, camps/clinics, hourly rentals, and public skating
time is also assumed to expand by adding more sessions year-round. Finally, the proposed new ice rink
is assumed to allow Troy to host three hockey tournaments and one figure skating competition in addition
to the three competitive events Hobart Arena currently hosts. Combined, this activity is estimated to result
in an annual occupancy of 66% for the proposed new ice rink. This includes 83% occupancy during peak
hours and 50% occupancy during non-peak hours over the course of a stabilized year.
44

It is important for the ice rink to be marketed aggressively with new participants being introduced to icebased sports and a focus on retaining beginning skaters. A key factor in the success of programs directed
at new skaters is consistency of class schedules. The primary challenge with the ice schedule at Hobart
Arena is its lack of a consistent schedule due to concert, family show, and special event programming. A
year-round ice sheet, with permanent ice, allows for consistent access to ice. Equally important is
maintaining a consistent class schedule. A disruption in class schedule equates to losing interested parents
and new-to-the-sport adults, according to management at comparable facilities. Learn to Skate, Basic
Skills, and youth programs should have schedules that do not shift from their allotted date and time slots.
Currently, Hobart Arena ice is programmed for approximately 1,500 hours per year. Based on the
assumptions outlined above, the proposed new ice rink would allow the community to more than double
its ice programming to 3,595 hours per year.
Net Operating Revenues
The following table shows the estimated net operating revenues for the proposed new ice rink in a
stabilized year of operation:
Proposed New Ice Rink in Troy
Estimate of Net Operating Revenues
Category
Facility Rental

Range
$284,000

$319,000

Advertising & Sponsorship

32,000

37,000

Concessions

12,000

14,000

Other

14,000

16,000

$342,000

$386,000

Total Net Operating Revenues

Net Operating Revenue Assumptions


Facility Rental Facility rental at ice rinks is primarily derived from ice rental that is charged per hour.
Rates are usually dependent on peak vs non-peak times and the type of user. For instance, local
community groups are often given discounted rates whereas tournaments or tenant teams often pay higher
rates. Comparable ice rinks have published hourly rates ranging from $115 to $235; however, their actual
rates per usage hour are often lower based on negotiated rates.
Facility management will likely negotiate rental terms for events/tournaments based on factors such as
potential economic impact and/or the ability to execute multi-year contracts. Based on comparable facility
data, ice rental typically represents the most significant revenue source. Ice rental revenue is largely
dependent on the mix of business (e.g., tournaments versus local leagues) and mission of the facility (e.g.,
local league use versus economic impact).
Comparable ice rinks also rent the facility for special events such as birthday parties or team socials. In
addition, tenant teams including local leagues and/or scholastic teams commonly rent facility space such
as locker rooms or storage space.
45

Advertising & Sponsorship Advertising and sponsorship opportunities are diverse and can range from
temporary signage at a single event to permanent signage on scoreboards or dasher boards to advertising
in a program to sponsoring team uniforms to sponsoring an entire event/tournament. Typically events
sponsored by outside organizations do not share revenues with the facility owner/operator. However,
advertising and sponsorship revenue generated from events that are organized/sponsored by the facility
operator (assumed to be the City in this case) is usually retained by the facility and is a function of the
event activity as well as aggressiveness of the management approach in terms of the amount and type of
advertising and sponsorships sold.
Concessions The operation and management of concession sales are generally handled by one of two
methods. The first method allows an independent concessionaire exclusive rights to facility events with
the facility taking either a percentage of gross sales or a flat fee per month. The second method allows
for the facility owner to own and operate the concession service. Under this method, the facility owner
captures all food and beverage sales but also incurs expense items related to purchase and maintenance of
equipment, labor costs and costs of goods sold. It is assumed that the proposed ice rink concessions will
be operated in-house in conjunction with Hobart Arena food/beverage operations. During a non-game
situation such as a practice or learn-to-skate program when there are a limited number of players/skaters
on the ice, concession stands are generally not open. Concession stands are typically open for games and
competitions/tournaments or when a high number of participants/spectators are anticipated. For purposes
of this analysis, a net concession amount is estimated taking into account the cost of goods sold.
Other Revenues This line item includes revenue generated from vending machines, skate
sharpening/rental, ATM fees, and equipment rental for social events, etc.
Net Operating Expenses
The following table shows the estimated net operating expenses for the potential new ice rink in a
stabilized year of operation:
Proposed New Ice Rink in Troy
Estimate of Net Operating Expenses
Category
Salaries & Wages

Range
$128,000

$142,000

Benefits

42,000

47,000

Utilities

180,000

190,000
30,000

Repairs & Maintenance

28,000

Materials & Supplies

24,000

26,000

General & Administrative

18,000

20,000

Sales & Marketing

16,000

18,000

8,000

10,000

$444,000

$483,000

Insurance
Total Net Operating Expenses

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Net Operating Expenses Assumptions


Salaries & Wages Although the staffing requirements and subsequent salaries and wages can represent
a significant expense, permanent full-time staffing plans can vary. This variance in staffing levels is
generally attributed to multiple factors. One factor relates to the management philosophy of maintaining
event-related personnel as full-time or part-time staff. Another factor relates to the management and
physical relationship the facility might have to other facilities. Ownership/management structure also
plays a role in the staffing plan where a facility operated by the local parks and recreation department can
often share administrative and maintenance costs with the broader municipal department. The overall
mission of the facility, the level of competition, and primary uses can also impact staffing levels. In
addition, the extent that contracted services and/or seasonal/part-time labor are used also impacts staffing
at similar facilities.
Because it is assumed that the proposed new ice rink will be co-managed with Hobart Arena, some of the
staffing, general/administrative, and operations responsibilities are assumed to be absorbed by existing
Hobart Arena personnel. With the addition of an ice facility that would be operated year-round and to
best maximize the utilization of a new community asset, it is recommended that a full-time Ice Programs
Director and a part-time Ice Programs Marketing/Administrator be added to the existing staff at Hobart
Arena. These positions would be responsible for the growth and development of ice programs and event
acquisition at both the proposed new ice rink and at Hobart Arena.
The Ice Programs Directors primary role would be to create and implement a strategic plan designed to
maximize utilization and revenue opportunities. Elements of this plan may include: enhancing existing
hockey and learn-to-skate programs; applying for grants for program development through USFS and
USA Hockey; creating and marketing ice programs to the greater Troy / Piqua / Dayton community to
encourage participation; serving as liaison with the Troy Skating Club and current user groups to
maximize their customer experience and hours; attracting new user groups; coordinating the scheduling
of ice time and locker room usage; developing special events; and working with the Ice Programs
Marketing Administrator on scheduling and marketing outreach efforts. It is anticipated that this position
would work with the Miami County CVB and other community business resources to attract and retain
additional tournaments, competitions, and special events to Troy.
Hobart Arena currently operates with six full-time staff that are augmented by permanent part-time and
seasonal employees. The full-time staff also maintain and operate the Troy Aquatic Park seasonally. A
full-time staff position at Hobart Arena is currently responsible for coordinating and scheduling the
Recreation Departments youth and adult hockey programs. If a second ice sheet is added, additional
operational, maintenance, and support staff would be necessary to accommodate an expanded ice
programming schedule and year-round operations. For purposes of this analysis, it is further assumed that
one full-time operations staff and several part-time, seasonal staff are added to assist with special events,
monitor ice, operate skate rental/sharpening shop, etc.
Benefits Benefits are estimated to be 33% of the salaries and wages.
Utilities Utilities, which include water, sewer, and electric, generally represent one of the highest
expense items for these types of facilities and can be variable depending upon the level of utilization and
decisions concerning energy systems and management.
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Repairs & Maintenance - This line item includes labor and equipment associated with maintaining the
facility and the general grounds. Facility management at comparable facilities stressed the importance of
appropriate funding for this line item in order to maintain quality ice and be marketable for
regional/national tournaments/competitions.
Materials & Supplies - This line item includes materials such as office, janitorial, and event related
supplies.
General & Administrative This line item includes various general expenses used in the day-to-day
management of the proposed ice rink such as travel, communications, technology, postage, membership
dues, etc.
Sales & Marketing Providing a new ice rink alone will not bring events to the venue. An aggressive
marketing strategy will need to be implemented to better allow the proposed facility to diversify and
enhance its event base, particularly for tournaments/competitions. It is recommended and assumed that
the facility establishes an annual dedicated marketing budget for programming and event development
that can be used to attract, develop, host and/or sponsor large sporting events/tournaments to the proposed
new facility. This is consistent with industry practices and is considered important to enhance
programming and revenue generating opportunities.
Insurance Insurance expenses vary among facilities due to factors such as utilization, facility program
elements as well as the amount and type of coverage. Based on input from the City, this analysis assumes
that property, casualty, and liability insurance needs associated with the proposed new ice rink are
primarily covered under the Citys current policy.
Reserve for Replacement It is recommended that the facility plan for an annual payment specifically
designated as a reserve for replacement fund in order to safeguard its investment. This fund is intended
to cover any extraordinary annual/future capital repairs or improvements to the facility. For purposes of
this analysis, the reserve for replacement fund is estimated to be 5% of operating revenues.
Taxes, Debt Service and Depreciation - This analysis does not estimate any operating expenses related to
taxes, debt service, or depreciation.
Impact on Hobart Arenas Operation
The addition of a year-round ice facility will impact the operations of Hobart Arena in multiple ways. It
is anticipated that more date availability will be created at Hobart Arena with the ice-based programs
shifting to the new facility. As such, the management of Hobart Arena will need to develop a strategy to
create more programming opportunities for these dates. Additional programming opportunities include
concerts, family shows, dual-ice sheet hockey tournaments, dual-ice figure skating competitions,
additional sporting competitions such as wrestling, basketball or volleyball, banquets, consumer shows,
turf-based athletic programs, and dry land off-ice training programs. The revised strategic plan should
include an increased marketing budget.

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Hobart Arena will also benefit from decreased costs associated with hosting additional event activity,
particularly in terms of event changeovers, as the second ice sheet allows Hobart Arena to maintain a
concrete floor for the majority of the year. Hosting ice-related activities on a daily basis in the proposed
new ice rink will decrease the time and cost associated with event changeovers from ice to non-ice
activities. This can benefit Hobart Arenas internal financial operations from an efficiency perspective
and, if some savings are passed on to non-ice event promoters, can enhance its marketability.
Despite increased date availability and lower event related costs for non-ice events, there is currently
considerable competition in the marketplace for concerts in the summer months from similarly sized
facilities such as Fraze Pavilion (4,300) and the new Rose Music Center at The Heights (4,200). The
Fraze Pavilion, which opened in 1991, is an established amphitheater in the summer concert routing while
the Rose Music Center, which opened in 2015, has quickly established itself as a summer destination. The
landscape for indoor venues is also competitive with the Nutter Center and its built-in captive marketing
audience of college students and facilities in Cincinnati and Columbus. However, with a newly remodeled
and upgraded Hobart Arena and more available dates, Hobart Arena has the potential to capture additional
concerts, particularly with aggressive marketing.
From a recreational sports programming perspective, Hobart Arena would have opportunity to explore the
expansion of indoor turf-based athletic programs such as winter soccer, softball or lacrosse. Currently,
the Troy Recreation Department does not offer these programs and there may be opportunity to begin
these off-season programs for residents.
Based on the planned facility improvements at Hobart Arena, there is an opportunity to rebrand the facility
and the market to the national/regional concert and family show touring industry. An improved facility
and significantly more open dates should be communicated to the events industry both locally and
nationally. Many facilities across the country have partnerships with national promoters such as Live
Nation, AEG, and/or regional promoters. A preferred relationship with a promoter with broader reach
may represent a partnership that can be beneficial to both a promoter and Hobart Arena. Another option
is for management to buy talent and promote the act in-house which involves more risk but may be
required in some instances given the facility size and market attributes. Regardless, developing a solid
relationship and enhanced presence with concert and family show booking agents is recommended to
maximize entertainment programming.
It is recommended that the City work with concert promoters and agents, family show promoters, local
and regional organizations, as well as convention and tourism organizations to find events to fill the Hobart
Arena schedule. There is an emerging promoter in the industry for secondary and tertiary markets
specifically in the concert industry and discussions with this new promoter could be advantageous.
From an operational perspective, parking and traffic management will need to be addressed. For instance,
although the two facilities can be programmed so that two major events do not occur at the same time, the
impact of the flow of skaters, players, and teams requiring access to parking for the second ice sheet while
an event is occurring at Hobart Arena will need to be strategically planned.
From a long-term planning perspective, management should consider the impact and cost implications of
retrofitting the current Hobart Arena ice floor from its current 85 x 185 dimensions to a standard 85 x
200 dimension to place the facility in a position to attract regional and sectional figure skating and hockey
events.
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It is anticipated that Hobart Arena will be able to host approximately six to eight incremental new events
annually based on the additional date availability, a reduction in event related cost, and an aggressive
marketing/pricing strategy to promoters/event producers. These events may be consumer shows, concerts,
family shows, sporting events, or other types of special events.
Summary
Based on the assumptions outlined in this report, it is estimated that the proposed new ice rink will operate
at a deficit which is similar to other governmental initiatives for assets such as parks and libraries that
require a significant capital investment by the public as well as on-going funding for maintenance. As a
point of reference, the proposed new facility is estimated to cover between 77% and 80% of its operating
expenses with operating revenues. It is assumed that the proposed ice rink realizes operating efficiencies
from shared staffing, administrative and maintenance costs with Hobart Arena. However, there should
still be a dedicated staff at the proposed new ice rink with experience operating similar facilities.
As noted previously, the financial pro forma and related assumptions in this report are preliminary and
will continue to be refined as decisions related to the building program and other operating characteristics
evolve.

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Table of Contents

1.

Introduction

2.

General Market Overview

3.

Industry Trends and Potential Demand

13

4.

Comparable Facility Case Studies

25

5.

Competitive Market Assessment

34

6.

Program and Cost Estimate

37

7.

Financial Pro Forma

41

8.

Limiting Conditions and Assumptions

51

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Limiting Conditions and Assumptions


This analysis is subject to our contractual terms, as well as the following limiting conditions and assumptions:

This analysis has been prepared for the City of Troy, Ohio (Client) for its internal decision-making purposes
associated with a proposed new ice rink adjacent to Hobart Arena and should not be used for any other purposes
without the prior written consent of Crossroads Consulting Services LLC.

The findings and assumptions contained in the report reflect analysis of primary and secondary sources. We
have utilized sources that are deemed to be accurate but cannot guarantee their accuracy. No information
provided to us by others was audited or verified and was assumed to be correct.

Although the analysis includes findings and recommendations, all decisions in connection with the
implementation of such findings and recommendations shall be the Clients responsibility.

Estimates and analysis regarding the proposed new ice rink are based on trends and assumptions and, therefore,
there will usually be differences between the projected and actual results because events and circumstances
frequently do not occur as expected, and those differences may be material.

This analysis does not constitute an audit, a projection of financial performance, or an opinion of value or
appraisal in accordance with generally accepted audit standards. As such, we do not express an opinion or any
other form of assurance. Any estimates or ranges of value were prepared to illustrate current and potential future
market conditions.

Although this analysis utilizes various mathematical calculations, the final estimates are subjective and may be
influenced by our experience and other factors not specifically set forth in this report.

We have no obligation, unless subsequently engaged, to update this report or revise this analysis as presented
due to events or circumstances occurring after the date of this report.

The quality of ownership and management of the proposed new ice rink has a direct impact on its economic
performance. This analysis assumes responsible and competent ownership and management. Any departure
from this assumption may have a significant impact on the findings in this report.

Current and anticipated market conditions are influenced by a large number of external factors. We have not
knowingly withheld any pertinent facts, but we do not guarantee that we have knowledge of all factors which
might influence the operating potential of the proposed new ice rink. Due to quick changes in the external
factors, the actual results may vary significantly from estimates presented in this report.

The analysis performed was limited in nature and, as such, Crossroads does not express an opinion or any other
form of assurance on the information presented in this report. As with all estimates of this type, we cannot
guarantee the results nor is any warranty intended that they can be achieved.

The analysis is intended to be read and used in whole and not in part. Separation of any section or page from
the main body of the report is expressly forbidden and invalidates the analysis.

In accordance with the terms of our engagement letter, the accompanying report is restricted to internal use by
the City of Troy and may not be relied upon by any third party for any purpose including any matter pertaining
to financing.

Possession of the report does not carry with it the right of publication. It should be used for its intended purpose
only and by the parties to whom it is addressed.

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