Sierra Planning and Management Velodrome - Town of Milton

Sierra Planning & Management
36
36 Velodrome Business Plan – Town of Milton
7.2 SCENARIOS CONSIDERED
The assessment of indicative financial performance of the velodrome is based on the following framework:
Option A: Community Legacy Facility Option B: Community Legacy with Laurier
University
Scenario 1: Lower revenue potential, higher Scenario 1: Lower revenue potential, higher
operating costs
operating costs
Scenario 2: Moderate revenue base Scenario 2: Moderate revenue base
Scenario 3: Higher revenue potential Scenario 3: Higher revenue potential
The impacts of Option A (community legacy without the presence of Laurier University), and Option B
(community legacy with Laurier University present on the site) are described more fully in the sections
which follow as are the details which underline the low, moderate and higher projections.
7.3 GENERAL ASSUMPTIONS
The following outlines the principle revenue and expense categories. Differences between the lower and
higher net revenue projections are described below.
7.3.1 REVENUE SOURCES
This facility operates as a cycling first facility. This translates into a management approach which should
ensure that the operation of the facility as an indoor track cycling venue and for local, regional, national
and international users is maintained as a primary objective. At the same time, significant potential exists
for community use both of the track and of the infield for a range of sports. The detailed financial analysis
outlines which sports can be accommodated and Appendix A includes current configuration testing for
alternative court sports.
The viability of the facility is predicated upon the achievement of revenue from alternative sources and its
operation as a multi-use facility. Notwithstanding, the business case should also recognize that the
adoption of the facility as a national home of cycling in Canada will ensure primacy of cycling in the facility
and hence there may be some risk in the achievement of revenues from infield where such use conflicts
with the operation of the track.
7.3.2 TRACK CYCLING
The facility is assumed to operate some 16 hrs a day from 7:00 in the morning to 11:00 at night. Evidence
from around the world suggests that well equipped velodromes have significant potential to achieve high
levels of utilization during the prime indoor cycling seasons. The opening times for the facility are
maintained both in the scenarios which consider the absence of Laurier University as well as that which
includes its existence as an adjacent user.
While in some instances it may viable to keep resources open later into the evening to reflect the needs of
the student body, it is anticipated that as a commuter campus first and foremost, there is unlikely to be a
significant demand for late night infield court use at this location.
Business Plan | January 2012