Agenda - 02-16-1993 - VII-B - Laserfiche WebLink

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FACILITIES The 90, 000 sq. ft. facility will include a 180 'x 75 ' pool, a 200 'x 85 ' Ice Rink, a fitness center, a multipurpose activity center, a community sports shop, a snack bar as well a range of offices changing rooms reception area etc. The main contractor is McDevitt Street Bovis who have also contracted to build a number of the sporting facilities in Atlanta for the 1998 Olympic Games. Cimco Lock Refridgeration, the Subcontractor for the Ice Rink, is the major company specializing in this field in Canada and USA. MANAGEMENT The TYHA has brought together an impressive management team which includes a combination of professional, semi-professional and volunteer coaches and helpers. They have also built a team of professional advisors to support their Board of Directors. FINANCIAL INFORMATION TYHA will need to finance $6.7 million. Detailed projections of revenues and expenses over the 10. year life of the required loan have been made to support the viability of the project. A model has been designed to allow the effects of varying rates of inflation in both revenue and expenses to be tested. A matrix of financing costs has also been designed to cover borrowing between $6.7 and $7 million and fixed rates from 5. 5% to 10%. Based on an informal survey of leading Banks in the region a rate of 9% fixed has been shown in the projection. Typically for a Project Finance concept, evaluation of the proposal has been based on the two major income streams (Rink and Pool revenues) plus the extent to which county funds can be guaranteed over the lifetime of the loan. A county guarantee to make monthly payments equivalent to $400, 000 a year for 10 years is sufficient to validate the cash flow and should make the deal "bankable" . Less emphasis is placed on the nature and value of underlying asset that the money will be used to build although it is relevant that if, for any reason, the facility could not pay its way in its intended usage, there would still be a 90, 000 sq.ft building on 16.8 commercial acres in a well located business park. A lender would certainly take such evaluation into reckoning as well as the benefit of the main contractor's performance bond during the construction stage. The projection makes the very conservative assumption that cumula- tive revenue increases would be kept to 1% (year on year) whilst costs would rise at a rate of 4% (year on year) .