8E1 · 8e1 board of county commissioners agenda item summary ... aca ca background/related strategic goal: ... enclosure 8 of 43. i i i i i i i

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BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY

PLACEMENT: DEPARTMENTALPRESET: TITLE: PHIPPS PARK – CONCEPTUAL MASTER PLAN UPDATE

AGENDA ITEM DATES:

MEETING DATE:4/1/2014

COUNTY ATTORNEY:3/10/2014

COMPLETED DATE:3/20/2014

ASSISTANT COUNTY ADMINISTRATOR:3/17/2014

REQUESTED BY: DEPARTMENT: PREPARED BY:

Name: Kevin V. Abbate, Director

Parks and Recreation William Todd Foust

Name: Special Facilities Administrator

Procedures: None

EXECUTIVE SUMMARY:

The purpose of this agenda item is to provide an update on the conceptual master plan for renovations for Phipps Park that will enhance public recreation, boating, fishing, picnicking, hiking and camping opportunities which will ultimately create a destination campground for Martin County.

APPROVAL:ACACA

BACKGROUND/RELATED STRATEGIC GOAL:

Phipps Park is a 60 acre recreational campground with 40 RV sites, tent camping and other park amenities. In 2002, a market analysis of Phipps Park identified site improvements and enhancements

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that would improve recreation and camping for the public; increase occupancy rate 70%, thereby increasing the revenue for the County. The BOCC approved Capital Improvement Plan for Phipps Park includes the basic infrastructure improvements of converting septic to sewer, paving the roadways and installing Wi-Fi. On May 31, 2013 County staff began working on a master plan. County staff developed a workshop agenda and visited Long Point Park, Sebastian Inlet State Park and Phipps Park to evaluate the programmatic elements, facility amenities and site improvements needed at Phipps to create a destination campground. In addition, staff also researched campgrounds South of Martin County. Staff also met with each County Commissioner to present the draft conceptual plan. The results of the plan for Phipps Park will be included in the 2015 CIP.

PHIPPS PARK CONCEPTUAL PLANThe 2015 Phipps Park CIP will include the following elements found in the conceptual plan; completion of septic to sewer conversion, select paved roads, fiber, Wi-Fi, improved RV electrical service, paved RV sites to improve accessibility and access; renovations of the existing playground and boat ramp; new fishing and boating docks; shoreline stabilization; development of a group camping area; new restrooms; new pavilions; expanded nature trail; new full service cabins; tent or Tee-pee platforms; new maintenance building; contracted café (public/private partnership) and a new general store/check-in and resident caretaker building.

CAPITAL FUNDING SOURCESThe 2015 CIP plan also outlines potential funding sources which include; sales tax, bed tax (3rd cent), active park land, utilities fees and grant opportunities. On February 25th, 2014 the BOCC authorizedstaff to apply for a Land and Water Conservation Fund $200,000 matching grant. This application was submitted on February 28th, 2014. Other potential grant opportunities may exist through the Florida Boating Improvement Program, Florida Inlet Navigation District’s Waterways Assistance Program, Florida Coastal Partnership Initiative Grant, and the USDA Water and Waste Disposal Direct Loans and Grants. The project is also eligible (pending recommendation from the Tourist Development Council and BOCC approval) for bed tax funding under the capital 3rd cent program because the campground generates overnight stays.

ESTIMATED PROJECT COSTSThe current estimated cost for this project is $2,737,622. The final project cost will be determined by the approved program plan. This project is intended to be completed in phases with the first phase being infrastructure improvements (septic to sewer conversion, Wi-Fi, electrical service improvements, roadway, etc.). Additional phases will include improvements to RV amenities, existing restrooms, additional of general store, addition of cabins, rented tents and primitive camping. Other phases will include adding both docking, improvements to the existing boat ramp or launch, and addition of a day use playground.

OPERATING EXPENSESThe annual operating expenditures have been estimated to increase by $75,000 which would be covered by the increase in park revenue from the renovations. These expenses include contract mowing and cleaning, increased utility costs and increased personnel expenses. Mowing and cleaning are currently completed by the Park Supervisor. It is anticipated that with the creation of a destination campground and addition of a general store the Park Supervisor position would have

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increased supervisory and customer service responsibilities requiring maintenance services to becontracted out. Additional part-time cashiers would also need to be hired to assist with reservations, customer service and concession/store sales. The increase in utilities would be for water/sewer related to the conversion from septic to sewer and provided to us by utilities. These increases in operating expenses are also supported by the 2002 market analysis.

REVENUE POTENTIALThe 2002 market analysis details the revenue potential for Phipps Park by implementing a phased capital improvement plan as outlined in the conceptual master plan. The revenue for Phipps Park in 2013 was $90,000 with an occupancy rate of 18%. Current revenue is $119,000 with an occupancy rate of 25%. The 2002 market analysis projects an occupancy rate of 70%. An occupancy rate of 70% would yield approximately $218,000 in revenue. Other revenue generating opportunities include; cabin/tent platform rentals, canoe/kayak rentals, concessions at the general store, etc.

ISSUES:

None

RECOMMENDED ACTION:

RECOMMENDATION Accept staff’s presentation.

ALTERNATIVE RECOMMENDATIONS N/A

FISCAL IMPACT:

RECOMMENDATIONN/A

Funding Source County Funds Non-County Funds Authorization

Subtotal

Project Total

ALTERNATIVE RECOMMENDATIONSN/A

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DOCUMENT(S) REQUIRING ACTION:

Budget Transfer / Amendment Chair Letter Contract / Agreement

Grant / Application Notice Ordinance Resolution

Other:

ROUTING:

_ ADM _ BLD _ CDD _ COM _ ENG _ FRD _ GMD_ GSD _ ITS _ LIB _ MCA _ MPO _ PRD _ USDX CA X ACA _ LEG

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I I I I I I I I I I I I I I I I I I

Market Analysis for Phipps Park

Martin County, Florida

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I I I I I I I I I I I I I I I I

I I

Real Estate RESEARCH C 0 N SULTAN T S

January 30, 2003

Mr. Randy Phillips Parks Superintendent Martin County 2990 S.E. Dixie Highway Stuart, FL 34997

Dear Randy:

Real Estate Research Consultants, Inc. (RERC) and EMS Scientists, Engineers, Planners, Inc. (EMS) have completed our Market Analysis of the Phipps Park Campground. The study was completed as outlined in our agreement with you dated September 25, 2002. The attached report summarizes the results of our analysis.

The report is based on estimates, assumptions and other information related to the above. Such estimates, assumptions or other information were developed from prior research, knowledge of the retail and commercial real estate market and discussions with your representatives, during which we were provided certain information. The sources of information and bases of estimates and assumptions are stated in the report. Since our documentation is based on estimates and assumptions which are inherently subject to uncertainty and variation depending upon evolving events, we do not represent the data as results which would actually be achieved.

The following paragraphs express conditions and limitations which our firm necessarily states with any engagement of this nature. Please call us if you should have questions. Our services did not include legal and regulatory counseling, comments on matters associated with zoning or other state and local government regulations, permits and licenses. Further, no effort was made to determine the possible effects on any specific projects as they may be influenced by present or future federal, state or local legislation, including any bond restrictions, changes in tax structure or tax law, environmental or ecological matters, or interpretations thereof.

Any conclusions and/or any prospective financial information that is included in our documentation were based on estimates and assumptions from previous studies, information developed from supplemental research, knowledge of the industry and other sources, including certain baseline information that your staff has provided. These sources of information and bases of significant estimates and assumptions are stated in our documentation. Some assumptions inevitably will not materialize and unanticipated events and circumstances may occur. Therefore, actual results achieved will vary from any estimates, and the variations may be material.

The terms of this engagement are such that we have no obligation to revise the document to reflect events or conditions which occur subsequent to the date of the documentation.

518 SOUTH MAGNOLIA AVENUE • ORLANDO, FLORIDA 32801 • P 407-843-5635 • F 407-839-6197 • WWW.RERCINC.COM

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I I I I I I I I I I I I I I I I I I I

Our documentation is intended solely for your information and internal planning and should be relied upon only for this purpose. Otherwise, neither our documentation nor its contents, nor any reference to our firm may be included or quoted in any offering circular or registration statement, loan or other agreement or legal document without our prior permission. Permission will be granted upon meeting certain conditions.

Please contact us if you have any questions about this report. It has been a pleasure working with you on this assignment.

Sincerely,

David R. Darsey Vice President

Enclosure

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Introduction

Real Estate Research Consultants, Inc. (RERC) was retained by Martin County to perform a market analysis for the Phipps Park campground. The conclusions of our analysis are presented in this report.

Our research effort entailed the following major work tasks:

• Interview key county agencies and others as appropriate regarding background information on the local recreation market, proposed projects and any major transportation and infrastructure improvements planned in the area.

• Obtain information from park management on current operations, including visitation trends, occupancy, operating revenues and expenses and guest demographics and origin.

• Comment on the site and other factors such as current campground condition, recreational amenities, park access, surrounding land uses, linkages to support services, etc.

• Profile recent trends in tourist visitation to the area.

• Profile existing parks and campgrounds that are competitive with Phipps Park.

• Identify proposed campground or recreation projects that could be competitive Phipps Park.

• Profile potential comparable projects to an expanded and improved Phipps Park.

• Investigate the advantages and disadvantages of privatizing the management of the park.

• Recommend supportable campground sites by type, as well as park amenities.

• Estimate the cost of the recommended improvements on a preliminary basis.

The conclusions outlined here are based upon the results of the major work tasks above.

This report is presented in a summary format in the following sections:

• Introduction • Profile of Existing Phipps Park • Demographic and Tourism Trends • Profile of Competitive and Comparable Campgrounds • Privatization Advantages and Disadvantages • Phipps Park Recommendations • Cost Estimates

All Tables are contained in the Appendix.

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Executive Summary

Phipps Park currently has a total of 60 campground sites without hookups. The campground has two restroom buildings with showers, a dump station, children's playground, picnic tables, fire rings and a recently opened boat ramp. The internal roads are unpaved. The park's main amenity is the St. Lucie Canal, which has limited visibility from adjacent campsites due to the topography and existing vegetation.

We believe Phipps Park has the potential to be a highly utilized campground . The park has only averaged about a 30 percent occupancy, much lower than the comparable parks we examined. Campsite fees are $3.00 (County residents) and $6.00 (non-County residents) per site, also lower than comparable parks.

Operating performance and utilization can be improved dramatically if the park's infrastructure is improved. The facility has excellent access from 1-95, the Florida Turnpike and has a relatively central location to County residents. The principal amenity (St. Lucie Canal) is underutilized, but that can be corrected with the proper improvements.

Based on our profile of competitive and comparable parks, we believe the following phased recommendations should be implemented at Phipps Park:

Phase I

• 75-100 RV sites with hookups, picnic tables, fire rings and charcoal grill stands. At least 25 to 50 percent of the sites should have full hook-ups (water, electric and sewer) with the remainder having water and electric hookups.

• Renovation of existing restroom/shower buildings, plus add new restroom/shower building.

• Improve internal roads to at least a hard packed gravel surface. Paving would be preferable if the cost can be absorbed.

• RV pad sites should also be at least a hard packed gravel surface.

• Improve the entrance to the park with fencing, landscaping and an entrance checkpoint. Camping fees would be collected at the entrance.

• Add a small building that would house a camp store selling convenience and basic camping related goods (firewood, charcoal, ponchos, etc.).

• Make the St. Lucie Canal more of a visual amenity. Clear some of the vegetation to create better views. Create areas where fishing could occur.

• Add a dock and several slips (5 to 1 0) that could be used by boaters passing through the canal. Hookups would not be necessary in this phase.

• Consider adding a rental concession for small non-powered boats and canoes. This operation could be housed within the camp store building noted earlier. The building should be located proximate to the dock areas, similar to the facility at Jonathan Dickinson Park.

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• Expand the existing children's playground.

• Add 4 to 6 freestanding picnic pavilions that could be used by day visitors or groups.

• Create special events or programs that will bring attention to the park. These could include outdoor festivals, canoe and kayak races, fishing demonstrations, etc. It may be possible to get local businesses to help sponsor these events. We also understand that the Stuart-Potsdam Canoe and Kayak Club has plans to use Phipps Park as a training base for Olympic athletes. This activity may bring in spectators and programs could be developed for the general public. Specific activities and programs are not available at this time, but the overall impact to the park and campground should be very positive.

• Expand area for primitive camping that could accommodate about 20 tents. No hookups would be needed in this area.

Future Phases

If Phase I is successful and meets the County's financial goals, this future phase of improvements could be implemented. The timing of these improvements is unknown, but would most likely not occur until the campground's operations had stabilized after Phase I renovations.

• Add 30 to 50 more RV sites with full hookups (water, electric and sewer), along with the site amenities noted earlier.

• Add an additional restroom/shower building.

• Consider adding more dock and boat slip space depending on demand.

• Add 1 to 2 more freestanding picnic pavilions.

• Consider adding a swimming pool.

Later phases may also include paving the internal roads assuming a hard packed gravel surface is used in early phases. The County may also want to consider adding sewer hookups to all campsites prior to paving. Also, in the first phase of work, we would recommend including the piping necessary to add sewer hookups at a later date. We did not include sewer hookups at all sites in the first phase of work due to the County's restriction on length of stay. A maximum of 30 days of camping per person per County fiscal year is allowed. Since longterm stays are discouraged, we did not feel that sewer hookups would be needed in all campsites.

The financial operating estimates for a renovated Phipps Park were a collaborative effort between Martin County and RERC. Martin County prepared the financial operating estimates based on RERC's market study, their experience with Phipps Park and their staffs experience with campgrounds in other locations. RERC has evaluated the assumptions and resulting financial projections for Phase I, and they do not appear unreasonable based on our study and our experience in the industry.

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The projections assume camping fees would be as follows:

Hookups Tent Sites (no hookups)

Resident

$15 $10

Non-Resident

$18 $12

Also, it was assumed that County residents would continue to get a resident camping fee at reduced rate from non-resident visitors. This assumption is built into the revenue projections.

Campground occupancy ranged from 50 percent in year 1 to 70 percent in year 5.

Under these assumptions, the following operating revenues and expenses could be generated by year 5 after first phase improvements are completed (assuming 75 RV sites):

Operating Revenues

Operating Expenses

Net Operating Profit

Debt Service

Net Operating Profit After Debt Service

$353,000

$223,000

$130,000

$100,000

$30,000

Debt service for Phase I is described in detail later in the report, but was estimated at a constant $100,000 per year.

The projections assume the park is managed in a professional and efficient manner. This could be achieved through the public sector if proper policies are implemented and experienced staff is retained.

If the private sector were retained to manage the park, it may be possible to increase revenues. If the private sector could increase revenue by 1 0 to 20 percent, and they were required to remit 10 percent of total revenue to the County, the following would occur:

Total Revenue (Public sector operations)

Total Revenue (Private sector operations)(1)

Revenue to County(2)

First Phase-Year 5 $353,000

$388,000 - $424,000

$39,000-$42,000

(1lAssumes 10 to 20 percent revenue enhancement with private sector management

(2)Assume 10 percent of total revenue is remitted to County Either of these scenarios would result in less than the projected net operating profit prior to debt service for public sector management. However, all the risks of operation would fall to the private sector under this scenario.

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The actual interest in managing the park from the private sector could only be gauged by issuing an RFP for these services. We used a 10 percent remittal fee as an illustrative example. The actual negotiated percentage could be less than this estimate. Also, we believe it may be difficult to entice the private sector to invest significant capital resources in campground improvements based on our discussions with private management companies. The responsibility for improvements will most likely fall to the public sector.

EMS Scientists, Engineers, Planners, Inc. (EMS) estimated the construction costs necessary to renovate and improve Phipps Park based on the program outlined by RERC. Their estimates are based on the extensive experience of the company with parks and recreation areas within the State.

The EMS construction cost estimates include RERC's improvement recommendations as well as additional costs for architectural and engineering services and contingencies. These costs exclude any extensive site work (other than what is described in our recommendations), as well as permitting fees. EMS estimated these improvements in a manner that would provide campers a basic to moderate quality product, similar in many respects to the quality level at the nearby St. Lucie Locks Campground. Any adjustments to the assumed quality level could significantly impact these cost estimates.

You should also keep in mind that this is a preliminary planning document designed to provide an indication as to the general level of financial investment necessary to upgrade the campground. A much more detailed planning, design and cost estimation effort will be needed if you decide to actually proceed with these improvements and additions.

Given these assumptions, EMS estimates Phase I renovation and additions would range from approximately $1,000,000 to $1,200,000. Future phases as described could cost an additional $500,000 to $800,000. Therefore, the total for all work as proposed could range from approximately $1,500,000 to $2,000,000. However, if future phases are added at a later date as is assumed in this document, costs associated with that expansion would need to be reevaluated at that time.

Assuming the County could issue 20-year bonds at an interest rate of 6%, annual debt service for Phase I could range from approximately $90,000 to $1 05,000. Using the same bond assumptions, future phases could add another $45,000 to $70,000 of annual debt service. Therefore, if all phases were completed, total debt service could range from about $135,000 to $175,000 annually. Again, if future phases are added at a later date, costs associated with that debt service would need to be reevaluated at that time.

County management may also want to treat Phipps Park as an amenity to local residents, not as a separate profit center. Most municipal parks operate at a deficit and are provided to the public as a part of the public sector's service to the community. The deficit that would have to be funded at Phipps Park could be treated in a like manner. However, that is a policy decision that will have to be made by County management.

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Profile of Existing Phipps Park

Site Description

Phipps Park is generally located on Locks Road, just north of State Road 76, near the SR 76 interchange of Interstate 95. Phipps Park abuts the St. Lucie Canal. The canal provides Phipps Park with access to the Intercoastal Waterway, via the St. Lucie River (South Fork) . See Figures 1 and 2 for location maps.

Figure 1 -Phipps Park Location Within Martin County Area

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Figure 2 - Phipps Park - General location map

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The park is approximately 59.7 acres, including about 14 acres of environmentally sensitive land. The St. Lucie Canal abuts the park to the north and west, an elevated portion of the Florida's Turnpike abuts the park to the east, and single family residential homes abuts the park to the south. Also along the St. Lucie Canal and very close to Phipps Park, is St. Lucie Locks Park and Visitors Center. St. Lucie Locks, although smaller than Phipps Park also has a campground, with approximately 12 paved campground sites - 3 for RVs and 9 for tents. Phipps Park, on the other hand, currently has a total of 60 unpaved campground sites.

The 60 unpaved sites are also without full water, sewer, and electricity hookups - typically expected at any campgrounds/park vying to attract RV travelers/campers. There is, however, a dump station and a water station/faucet for campers to use. Additionally, there are two restroom buildings (men's and women's) with shower facilities. There are over 50 picnic tables and approximately 50 fire rings for use by campers and daily park/picnic users. There is also a children's playground and picnic shelter.

Generally, the park appears to be underutilized. As mentioned above, the unpaved sites, lack of hookups for utilities, and lack of numerous amenities, contribute to the underutilization of Phipps Park. Moreover, the view of the St. Lucie Canal (which is an asset) is mostly obscured because of the topography and the existing vegetation.

Other Amenities

Phipps Park's principal amenity is the St. Lucie Canal. The canal provides Phipps Park with access to the Intercoastal Waterway, via the St. Lucie River (South Fork). To take advantage of the canal, the State Fish and Game Department has installed a boat ramp and is currently in the process of constructing floating boat docks. Phipps Park provides exclusive access to the boat ramp and future boat docks.

Access

Locks Road, a two lane residential road, serves as the main access point to Phipps Park. State Road 76, which is a four lane divided highway, is the primary road that leads visitors to Locks Road and to the park. In addition to State Road 76, the park also enjoys close proximity to Interstate 95 and the Florida Turnpike. Exit 101 (previously Exit 62) of Interstate 95 is the interchange for State Road 76, and is less than one mile of the park's entrance.

Visibility

Phipps Park's location along the St. Lucie South Canal prohibits visibility from major roads. The park is also located behind single-family residential neighborhoods, which stem from Locks Road. While the park enjoys very good access from State Road 76 and Interstate 95, Phipps Park does not have any major road frontage and direct road visibility. However, as mentioned in the General Description section of this report, an elevated portion of the Florida's Turnpike abuts the park to the east. Signage to the park from the major roads is considered to be inadequate, which may be one of the factors for the park's low occupancy. An improvement to the park's signage should mitigate the visibility issue.

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Surrounding Land Use

To the south of Phipps Park are a number of low-density residential subdivisions, stemming from Locks Road. In addition to these subdivisions, the US Army Corps of Engineers have one of their facilities at St. Lucie Locks, which is directly east of Phipps Park. St. Lucie Locks has a campground, with approximately 12 paved campground sites- 3 for RVs and 9 for tents. In addition to the park, the US Army Corps of Engineers also operates the St. Lucie Lock and Dam.

Occupancy and Attendance

Occupancy at Phipps Park has historically been low. While other factors contribute to this condition (such as poor advertising and signage) , low occupancy is primarily due to the lack of current amenities that modern campers demand, such as full hookups (water, electricity, sewer), and the general physical condition of the park. In 2001, the occupancy rate was 29 percent. Occupancy for 2002 grew slightly to 30 percent. The County allows a maximum of 30 days of camping per person per year.

According to park management, Phipps Park generally averages 16,000 patrons per year. This is calculated by using a 2.5 person multiplier to the number of registrants to the park. In 2001, there were 6,400 registered campsite nights for an estimated 16,000 attendance. In 2002, there was a slight increase (2.75o/o) in the number of registered campsite nights to 6,576, which equates to approximately 16,440 attendees.

Revenue and Expenditures

A fee of $6.00 per night is charged for non-resident campers versus $3.00 per night for County residents. Fees collected for Phipps Park in fiscal year 2001 were $28,101. Through July 2002, fees collected for fiscal year 2002 totaled to $28,464. This is an increase of 1.3 percent over year-end 2001. The total for 2002 could be as high as $30,000 to $34,000, based on projections for an additional two months of operation.

Operating expenditures for Phipps Park for fiscal year 2001 were $45,640. Labor cost was 91 percent of the total, while the remaining 9 percent was allocated for materials. In fiscal year 2002, the total operating expenditures decreased to $43,000. Labor still makes up most of the total costs (87 percent), with materials at 13 percent.

According to Martin County records and staff input, Phipps Park generally operates at a deficit. In fiscal year 2001, the park had a deficit of approximately $18,000. In fiscal year 2002, fees through July were $28,464. Management indicated the budgeted cost of operating the park decreased to $43,000. Based on the budgeted expenses for the 2002 fiscal year, the park will most likely operate with a deficit of approximately $9,000 to $13,000. The table below summarizes these calculations.

Revenue (fees collected) Expenditures (labor & materials) Net Operating Income

FY 2001 $28,101 $45,640

($17,539)

Estimated FY 2002 $30 '000-$34 '000

$43,000 ($9,000-$13,000)

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Competition

A recent survey conducted by Martin County Park and Recreation Department revealed that there are a handful of competitive parks/campgrounds to Phipps Park. These competitive parks are deemed to be competition due to various considerations including, but not limited to, location, type of park, and available amenities. Based on that survey, the following parks were considered competitive with Phipps Park:

• Jonathan Dickinson State Park • St. Lucie Campground (Army Corps of Engineers) • Ronny's Mobil Ranch • Angle In Trailer Court • John Prince Park

A field study performed by RERC revealed that both Ronny's Mobil Ranch and Angle In Trailer Court might be competitive because of their proximity, but are not comparable to the camping experience at Phipps Park. Both are privately owned mobile parks, predominantly marketed to long-term rentals, and do not provide the same "outdoors" experience that is normally associated with a typical campground/park. These characteristics are not in line with what Phipps Park is currently or could be in the future.

Conversely, Jonathan Dickinson Park, St. Lucie Campground, and John Prince Park are more aligned to the attributes of Phipps Park. All three parks are publicly owned, provide reasonable priced places to camp (RV, tent, cabins), and offer natural amenities where one can hike, jog, bike, or boat. A profile of these three parks, plus additional parks, are provided in another section of this report.

Demographic and Tourism Trends

Tables 1 and 2 in the Appendix reflect Martin County's demographic characteristics in 1990 and 2000. Pertinent information from these tables is summarized below:

• Overall population increased from approximately 101,000 (1990) to 127,000 (2000), an average annual growth of 2.3 percent.

• The fastest growing age segments were those people aged 75 years or older. However, the largest population concentration in 2000 was in the 25 to 44 year age bracket. About 19 percent of the total population was aged 17 or younger in 2000.

• The number of households grew at an annual average of 2.5 percent from 1990 to 2000, very similar to the population growth. Owner occupied housing accounted for a larger percentage of total households in 2000 than in 1900.

• Households defined as seasonal or recreational in nature grew from 6,900 to 7,200 from 1990 to 2000. In 2000, these households accounted for 13 percent of the total.

• The median value of owner occupied housing increased to approximately $152,000 in 2000, which reflects an average growth of 3.1 percent per year.

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• County resident households became more stable in 2000 versus 1990. The percent of residents that lived in the same house over the last five years increased from 1990 to 2000. Even so, approximately 31 percent of Martin County residents lived in a different county or state five years prior to 2000.

• The services sector accounted for the greatest percentage of County employment in 2000. Wholesale and retail trade and construction were the next highest employment sectors. The services sector was also one of the fastest growing job segments from 1990 to 2000.

• Household income averaged $43,000 in 2000, an average annual increase of 3.1 percent from 1990.

The Tourism Development Council (TDC) of Martin County has been in existence a relatively short time. The County recently approved a two percent resort tax that went into effect on October 1, 2002. The TDC is just beginning to collect tourism statistics.

TDC representatives indicated the County had the following general tourism characteristics:

• There are about 3,300 hotel rooms in the County.

• Countywide annual hotel occupancy averages about 60 percent. Peak season runs from late January through Easter, when occupancy averages about 85 to 88 percent. During the off-season, occupancy typically averages 45 to 60 percent.

• About 55 to 60 percent of County visitors are from other parts of Florida. During the winter months, visitors from the northeastern and mid-western United States make up the largest concentration of tourists.

• Length of stay usually averages 4 to 6 days in the winter and 2 to 3 days in the summer.

• The most popular visitor activities include:

Beaches Outdoor activities, such as golf Visiting parks and museums

• Many tourists visit the area after stays in either the Orlando/Disney area or Miami.

These tourist visitation patterns are similar to what is experienced in the campgrounds we profiled. This information is discussed in a later section.

Profile of Competitive and Comparable Campgrounds

With the assistance of the Martin County Parks and Recreation Department, RERC identified several potential competitive and comparable campgrounds to Phipps Park. These campgrounds are a mix of private and public parks/campgrounds, and include the following:

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• KOA Okeechobee • Long Pointe • Jonathan Dickinson • Fort Pierce Inlet • John Prince • Sebastian Inlet • St. Lucie Locks • Ronnie's RV Park • Numerous small, private RV parks (within and near Martin County)

After visiting all of the parks listed above and discussing preliminary findings with the staff of Martin County Parks and Recreation Department, we concluded that Ronnie's RV Park and the numerous small, private RV Parks were not directly comparable to Phipps Park. These parks are somewhat competitive to Phipps Park on the basis of location and availability of full and partial hookups. However, these private parks are designed and marketed for RV use and not for tent use. Moreover, in some cases, these private RV parks appear to be housing semipermanent users/residents.

RERC also recommended not using Ft. Pierce Inlet Park as a comparable park. Ft. Pierce Inlet Park is a State Park that includes amenities such as a nature trail, picnic tables and pavilions, water/beach access, showers, and a youth camp. However, Ft. Pierce Inlet Park's campground facility is not open to the general public. Instead, it is exclusively reserved and used by youth groups, church groups, and other non-profit organizations for the youth. Moreover, the campground facility is strictly for tent camping only and lack the amenities most RV campers desire.

Based on our fieldwork and discussions with Martin County Parks and Recreation Department staff, the following parks were profiled as competitive or comparable to Phipps Park:

• KOA Okeechobee • Long Pointe • Jonathan Dickinson • John Prince • Sebastian Inlet • St. Lucie Locks

Physical Characteristics

Land Size

Phipps Park is a self-contained campground, while some of the parks/campgrounds included in this profile are part of a larger park system. This explains the wide range of the actual land size of the parks and the corresponding number of campsites (including cottages and cabins). For example, Jonathan Dickinson Park and Sebastian Inlet Park have campgrounds that are part of a much larger park facility. Jonathan Dickinson includes thousands of acres that are purely for conservation purposes and are not used for camping.

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Park Name KOA Okeechobee Long Pointe Jonathan Dickinson John Prince Sebastian Inlet St. Lucie Locks

Land Acres 117 85

11,500 48

1,000 4

# of Camp Sites 700 170 142 265

51 12

As a comparison, Phipps Park totals approximately 59.7 acres (45.7 developable acres) and has 60 campsites. However, the developed campgrounds only take up approximately 30 to 40 percent of the total property. RERC attempted to isolate the land size of the campground section of the larger park system. However, only KOA Okeechobee, John Prince, Long Pointe, and St. Lucie Locks were able to completely isolate the campground section of their park.

Number of Camp Sites

As mentioned above, there are several campgrounds that are part of a larger park system. The KOA Okeechobee, Long Pointe Park and St. Lucie Locks campgrounds are mostly selfcontained with little excess land devoted to other purposes. In contrast, Jonathan Dickinson, John Prince, and Sebastian Inlet are all part of a larger park.

The table below profiles the physical characteristics of each park. Those that are selfcontained are separated from those that are a part of a larger park system. It is important to recognize this fundamental difference between the park types as we analyze the ratio of campground sites to the land acres.

Park Name Land Acres # of Camp Sites Camp Site/Acre

Self-Contained Parks:

KOA Okeechobee 117 700 6.0 Long Pointe 85 170 2.0 St. Lucie Locks 4 12 3

Part of Larger Park:

Jonathan Dickinson 11,500 142 .01 John Prince(1

) 48 265 5.5 Sebastian Inlet 1,000 51 0.1

(1) Reflects only acreage associated with the campground

The "self-contained" parks have a ratio of approximately two to six campsites per acre. The ratios noted for Jonathan Dickinson Park and Sebastian Inlet are not applicable here since they are a part of a larger park system.

In addition to reviewing the absolute number of campsites per park, RERC also looked at the percentage split between campsites dedicated to RVs as opposed to tents. All of the parks,

Page 12 20 of 43


except St. Lucie Locks make no distinction as to the type of camping medium utilized at the park. St. Lucie Locks has 3 sites for RVs and 9 sites for tents.

Lastly, only two of the parks profiled have cottages and/or cabins for rent. KOA Okeechobee was one of the parks that offer such facilities. The other park was Jonathan Dickinson. KOA Okeechobee has 13 cabins/cottages, only two percent of the total campsites. Similarly, Jonathan Dickinson only has 12 cabins/cottages, less than nine percent of the total campsites.

Amenities

We also identified the types of amenities that are commonly found in the profiled campgrounds. There was no distinction made between the amenities found in self-contained campground versus larger parks. Since the recreational amenities at larger parks are an integral reason for visitation, we did not feel these amenities should be excluded simply based on proximity to the campground.

All of the parks profiled allowed pets on leashes, had picnic tables and playgrounds. The following is a list of amenities that were present in all but one park. Brackets identify the name of the park that did not have the specific amenity.

• Full hookups (John Prince) • Paved campsites (Jonathan Dickinson) • Beach/waterfront (KOA Okeechobee) • Boat ramp/dock (KOA Okeechobee)

Other amenities include, with brackets identifying the park with the specific amenity:

• Cable TV (KOA Okeechobee) • On site store (KOA Okeechobee, Jonathan Dickinson, Sebastian Inlet) • Laundry facility (KOA Okeechobee, Long Pointe) • Recreation hall/clubhouse (KOA Okeechobee) • Swimming pools- adult and separate children's pools (KOA Okeechobee) • Swimming pond (Long Pointe, Sebastian Inlet) • Equestrian facility (Jonathan Dickinson) • Boat, canoe, kayak rental (Jonathan Dickinson, Sebastian Inlet) • 18-hole golf course (KOA Okeechobee) • Tennis courts (KOA Okeechobee, John Prince) • Basketball courts (John Prince) • Golf practice facility (John Prince)

Rates and Fees

The rates and fees for the camps and parks RERC profiled can be divided into three main categories - daily entrance fees, overnight campground rates, and additional fees for use of amenities and/or equipment.

Daily admission rates are typically charged per vehicle, up to eight people. Charges are usually nominal, in the $2-$3/car range. KOA Okeechobee, John Prince Park (campground section only), and St. Lucie Locks do not charge a daily admission rate. These parks either function as

Page 13 21 of 43


campground facilities or have the ability to separate a campground area from the larger park. Conversely, Jonathan Dickinson ($3/car) and Sebastian Inlet ($3/car) are larger parks with other amenities that attract visitors other than campers, such as groups that use picnic pavilions, fishermen, trail walkers, boaters, kayakers, and canoe users. Long Pointe Park also charges a daily admission of $2.00 per car.

Daily campground rates are usually divided into two rates - tent rates and RV rates. There is an obvious difference in the campground rate structure between the public parks and the private parks such as the KOA Okeechobee facility. The range for campground fees- tent only -for public parks are within $12-$18 per campsite. On the other hand, tent campsites rates for KOA Okeechobee ranges from $35 to $39 per site. In regards to the RV campsite rates, the public parks typically charge $14-$22 per RV site, including one car. KOA Okeechobee charges $45-$49 per RV site, which also includes one car. In addition, there is a fee for use of the dump station, which typically is $5.00 per RV.

Sebastian Inlet charges an extra $2 for using a waterfronUwater view campsite, while KOA Okeechobee charges an additional $20 for a golf front campsite.

For rent cabins and cottages are only present in KOA Okeechobee and Jonathan Dickinson. Cabins only have sleeping facilities while cottages also include living areas and bathrooms separate from sleeping quarters. KOA charges $64/day for their cabins and $1 00-$135/day for their cottages. Jonathan Dickinson charges $85-$95/day for their cottages. Both parks offer airconditioned cabins and cottages.

Additional fees are associated with the rental and use of facilities and equipment. Typically, these facilities and equipment are picnic pavilions, marine equipment (boat, canoe, kayak), boat launch, dump station, and shower. Other recreation facilities include a golf course (KOA Okeechobee) and an equestrian trail (Jonathan Dickinson). A table summarizing these fees is presented below.

Picnic pavilion (1)

Boat launch Shower Dump station Boat (2)

Canoe, kayak (3)

Golf Equestrian trail

KOA Okeechobee

N/A N/A N/A N/A N/A N/A

$28-$42 N/A

Long Pointe

$20-$100 N/A N/A N/A N/A N/A N/A N/A

Jonathan Dickinson $60-$90

$2 $5 $5

$30 $10-$20

N/A $5

John Prince

N/A N/A N/A $5 N/A N/A N/A N/A

Sebastian Inlet

$30-$60 $2 N/A N/A

$45-$139 $17-$39

N/A N/A

(1

) Picnic pavilion- The wide range of rental rates is attributable to the differences in the sizes of the pavilion

(2

) Boat rental - Jonathan Dickinson is for a minimum of 2 hours - Sebastian Inlet is for a minimum of~ day. Boat type ranges from a row

boat ($45) to a powered pontoon boat ($139)

(3

) Canoe, kayak rental- Jonathan Dickinson is for a minimum of 2 hours -Sebastian Inlet is for a minimum of 2 hours

St. Lucie Locks

N/A $2 N/A N/A N/A N/A N/A N/A

Page 14 22 of 43


Competition

RERC interviewed campground managers and staff to ascertain who they thought their competition was in the campground market. Based on these interviews, Jonathan Dickinson Park was the number one competitor to all of the parks profiled. Sebastian Inlet was also mentioned several times, while KOA Okeechobee was only mentioned once. Small, private RV parks are also mentioned as competition mainly because they can offer longer-term (6 months to a year) arrangements with the RV users.

Jonathan Dickinson's reputation as an excellent park and campground, with a tremendous list of amenities and activities, is very far reaching. The park is also one of the largest in the Central/Southeast section of the state.

Other park management's opinion of KOA Okeechobee as "limited" competition was somewhat surprising. It was suggested by some of the people interviewed that there are different types of campers that will use a KOA campground versus a state, federal, or county park/campground. People that typically use public campgrounds are looking for the more natural setting ("to rough it'), while people using the KOA campgrounds are merely using them as a traveling extension of their homes- with the expected creature comforts and amenities.

Visitation

Clearly, there is a seasonality to camping and the use of campgrounds. It was very apparent from the interviews that the winter months are the busiest months of the year, with the starting of school (September to October) being the slowest time for campground activity. In addition, weekdays are also very slow while weekends are almost always heavily booked.

Overall, the annual occupancy rate for the parks profiled ranged from SOo/o-80%. KOA Okeechobee, John Prince and Jonathan Dickinson Park have an annual occupancy rate of 50%-60°/o, the lowest among all the parks profiled. Long Pointe, St. Lucie Locks and Sebastian Inlet have the highest occupancy rates- 70%-80°/o. St Lucie Locks only has 12 campsites, making it relatively easy to attain a high occupancy.

Most of the parks do not track the specific origin of their campers. However, staff members at the various camps gave us their best approximation of visitor origin. The following is an estimated breakdown of the visitor origination per park.

Winter {November- Ma~} KOA Long Jonathan John Sebastian St. Lucie

Guest Origin Okeechobee Pointe Dickinson Prince Inlet Locks In State:

Martin Co. NfT 0% NfT NfT NfT NfT SE FL NfT 0% NfT NfT NfT NfT Central FL NfT 0% NfT NfT 40% NfT

Total In State 20% 0°/o NfT NfT 40% NfT

Out of State: Other States 60o/o 50°/o NfT NfT NfT NfT International 20°/o 50% NfT NfT NfT NfT

Total Out of State (1> 80°/o 100°/o NfT NfT 60°/o NfT

Total 100°/o 100°/o NIT NIT 100°/o NIT

Page 15 23 of 43


Summer (June- October)

KOA Long Jonathan John Sebastian St. Lucie Guest Origin Okeechobee Pointe Dickinson Prince Inlet Locks

In State: Martin Co. NfT 50% NIT NIT NIT NIT SE FL NfT >20% NIT NIT NIT NIT Central FL NfT >20% NIT NIT 60% N!T

Total In State 80% 100% NIT NIT 60% Nff

Out of State: Other States NfT 0°/o NIT NIT NIT Nff International N!T 0% NIT NIT NIT NIT

Total Out of State (1> 20% 0% NIT NIT 40°/o NIT

Total 100°/o 100°/o NIT NIT 100°/o NIT

Annual Estimate

KOA Long Jonathan John Sebastian St. Lucie Guest Origin Okeechobee Pointe Dickinson Prince Inlet Locks

In State: Martin Co. N/A 20°/o NIT N!T N/A 40% SE FL N/A 10% N!T N!T N/A 5% Central FL N/A 10% N!T N!T N/A 5%

Total In State 45% 40°/o 40% N!T 55°/o 50°/o

Out of State: Other States 40o/o 30% 40°/o N!T 35o/o 45% International 15°/o 30% 20°/o NIT 10°/o 5%

Total Out of State (1) 55% 60% 60% NIT 45% 50%

Total 100°/o 100°/o 100°/o NIT 100°/o 100°/o

Notes: NIT= Not Tracked by park management (1) Park staff generally can estimate the total out of state percentage, but not specifically by

state or country.

One can see from the table above that a large percentage of the summer campers are from within the State of Florida, mostly from the Central and Southeast part of the state. Conversely, out of state and international (including Canada) patronage represent a lower share in the summer months.

The winter months are dominated by snowbirds, from the northeast states and Canada (Ontario and Quebec), representing as much as 80 to 100 percent of the campers. As expected and discussed earlier, these months are the prime camping months in Florida due to the cooler climate. This prime season is so attractive that many of the campers book their reservations up to a year in advance in some cases.

Page 16 24 of 43


In addition to these seasonal changes, there are also changes in visitation origin on weekdays versus weekends. According to the staff from the various parks we interviewed, county residents and in state residents are more likely to patronize their campgrounds during the weekends. In contrast, during the week campers tend to be from outside the region or from out of state.

Financial Information

RERC was able to obtain financial information for all the parks/campgrounds profiled except for KOA Okeechobee. Since the KOA is a privately owned park, they would not divulge financial information. Similar to other parts of this study, RERC isolated the operating revenue and expenses that were exclusively related to the daily operations of the campground portion of the park.

Three of the campgrounds profiled (Long Pointe, Jonathan Dickinson, and John Prince) had a net operating income between approximately $144,000 to $226,000. Sebastian Inlet had a deficit for 2001 of $150,000. The U.S. Army Corps of Engineers, which owns and operates St. Lucie Locks, could only provide an estimate of operating revenue for the campground. Operating expenses were not available.

Below is a summary table of the 2001 financial data obtained from the parks.

PhiQQS KOA Long Jonathan John Sebastian St. Park Okeechobee Pointe Dickinson Prince Inlet Lucie

Locks Revenue $28,101 N/A $500,000 $376,000 $651,000 $750,000 $30,000 ExQenses ~451640 N/A ~3001000 ~1501000 ~5071000 ~9001000 N/A Net Op. Income ($17,539) N/A $200,000 $226,000 $144,000 ($150,000) N/A

Based on conversations we had with park staff, Long Pointe is the only self-sufficient park in all of Brevard County. Park staff also told RERC that there is a State fund that can be used to subsidize parks with an operating deficit. However, Sebastian Inlet has its own park trust fund and does not rely on the State fund for subsidies.

As expected, most of the park's operating revenues come from campground site rental. Approximately 90%-95°/o of the total operative revenue stems from campground site rentals. Other sources of funds include the following:

• Daily park admissions (Sebastian Inlet, Jonathan Dickinson) • Boat launch fee (Sebastian Inlet, St. Lucie Locks) • Picnic pavilion rental (Long Pointe, Sebastian Inlet, Jonathan Dickinson) • Boat rental (Sebastian Inlet, Jonathan Dickinson) • On-site store (Sebastian Inlet, Jonathan Dickinson)

Both Sebastian Inlet and Jonathan Dickinson have private concessionaires that manage the boat rental and the on-site store in their respective parks. In addition, Jonathan Dickinson's cabins are managed by a private concessionaire. According to staff, Sebastian Inlet receives 9% of the gross revenue from the boat rental and on-site store sales. With a similar arrangement, Jonathan Dickinson receives 9% of the gross revenue from their private concessionaire.

Page 17 25 of 43

I I I I .I I I I I I I I I I I I I I I

RERC obtained detailed information on Jonathan Dickinson State Park's concession operations from the State of Florida. The park's concession operator generated the following gross revenues for 2000 and 2001.

Cabin Rentals Canoe Rentals Boat Tour Store Sales Vending Total Gross Revenue

Commission to State @ 9% of Gross Revenue

$100,000 $108,000 $179,000 $127,000

$7.000 $523,000

$47,000

$100,000 $142,000 $166,000 $126,000

$7.000 $541,000

$49,000

As can be seen from above, the concessions generated gross revenue of over $500,000 for both 2000 and 2001. From this, the state received just under $50,000 from the concessionaire for the right to do business in the park. Based upon this information, the 2001 revenue estimates for the park could be broken down as follows:

Campsite Rental Concessionaire Commission (9o/o)

$327,000 $49.000

$376,000

Gross revenue generated at the park from combined state and concessionaire operations would be as follows:

Campsite Rental Concessionaire Sales

$327,000 $541.000 $868,000

Therefore, Jonathan Dickinson actually generated $868,000 in gross revenue from 2001 operations.

In addition to these parks, RERC obtained information on Rainbow Springs State Park in Dunnellon, Florida. That park is unusual in that it is owned by the state but operated by Marion County. In 1993, the state entered into a contract with Marion County to operate the park for a 10-year period. In return, the County remits 6 percent of gross revenues to the state.

The campground has 105 sites, all with water and electric hook-ups. In addition, 40 of the sites also have sewage hook-ups. Most sites will accommodate a 40-foot RV.

On-site amenities include a swimming area on the river, canoe rental ($5.00 per hour), 1.5 miles of nature trails, a campground store, recreation hall, laundry, playground and showers/restrooms. Fishing is also allowed on a portion of the river. Camp rangers also offer guided canoe trips and nature walks. The campground itself is separate from the Rainbow Springs day-use area.

Page 18 26 of 43


Camping fees at the park range from $13.00 (non-waterfront) to $15.00 (waterfront) per night. Entrance fees are $3.25 per carload, up to 8 people.

Through September 2002, the park achieved an occupancy level of 53 percent. The following revenues and expenses were generated in 2001:

Revenues: Camping and Day Use Store Sales Rental Equipment Total Operating Revenues

Expenses: Salaries and Wages Cost of Goods Sold Utilities Other Operations Total Operating Expenses

Operating Profit

Concession Commission to State (6°/o of gross revenue)

$263,000 $54,000 $27,000

$344,000

$189,000 $29,000 $42,000 $35,000

$295,000

$49,000

$21,000

The park operates at a $49,000 profit, exclusive of capital expenditures. The state receives $21,000 in commissions from the County for the right to operate the park.

Privatization Advantages and Disadvantages

RERC explored some of the advantages and disadvantages of private versus public management of campgrounds. In order to accomplish this, RERC interviewed individuals at companies that specialize in managing campgrounds. We also spoke with state and federal employees who act as a liaison between the government sector and private campground management on public lands. The results of these interviews are summarized below:

• Private firms are usually selected by an RFP bid process. The RFP would stipulate the public sector goals and objectives, minimum bid requirements, operating restrictions, maintenance needs and requirements, etc. Amongst other items, the firm would need to submit information on existing managed campgrounds, historical financial performance, staff experience and qualifications, references, etc.

• A private campground operator is usually required to remit anywhere from 5 to 15 percent of total gross revenue for the right to operate the park. In some cases, the operator will remit a flat fee, although that is rare. Flat fees do not work well with campgrounds that have significant seasonality impacts. Some operators also remit a graduated percentage payment that increases with the level of revenue earned. For example, an operator might remit 5 percent of the first $200,000 of revenue, 10 percent for the second $200,000 and 12 percent of anything over $500,000.

Page 19 27 of 43

I I

I I I I I I I I I I I I I I I

• The length of the management contract can vary, but is rarely less than five years. Many contracts are in the 10-year range, with options to renew. Some go out as far as 30 years or more, though these are in the minority. A typical contract might be for 15 years with three 5-year periods. Although the percentage remittal would typically not change over the length of the contract, the renewal option allows the public sector the ability to change operators if there is a performance issue.

• It is very rare for the private sector to invest significant capital into a campground. In almost all cases, capital improvements are the responsibility of the public sector. The private operator is usually only responsible for the upkeep of the facility, which would include day-to-day maintenance and repair. The private sector would only invest in facilities that they could receive a return on those investments and would also require a very lengthy lease term (30 or more years). With such lengthy contracts, they would in essence "own" the facility. Also, if the public sector desires some capital improvement, it may be possible to swap out the revenue remitted from the operator in exchange for the needed improvement.

• A private operator usually requires a minimum of 50 to 60 campsites within a facility in order to create an acceptable income stream. Many operators will try to obtain management contracts for several campgrounds in the same area in order to increase the efficiency of their operation.

• Another reason private operators are reluctant to provide a significant capital investment relates to the difficulty in obtaining financing. Since the firm does not own the property, financial institutions are reluctant to loan significant dollars where there is no real collateral involved.

Based on these discussions, we believe the advantages and disadvantages of private management include the following:

Advantages of Private Management

• Lower costs of personnel-typically less benefits in private sector • Reduced manpower supervision and control • Contractor can impose specific standards agreed on by public sector • Minimizes financial exposure from operating losses • May be easier to terminate than regular staff • May be better management in high visibility situations • Possibly more aggressive in revenue collection, however, with proper policies and

management, the public sector can have similar success.

Disadvantages of Private Management

• Contract specifications must be clear to achieve desired benefits • Expect only services as stipulated in agreement • Can be difficult to terminate without cause • Requires someone very experienced in contract negotiation and supervision from the

public sector • Back-up positions need to be planned in case contractor quits or is terminated • Lines of responsibility can be murky unless clearly specified in agreement.

Page 20 28 of 43


• Not willing to invest significant capital expenditures upfront without lengthy lease term commitment, if then

• Public sector loses effective control of the property in long lease term (25 to 30 years or more) situations. Long lease terms in effect make the operator the "owner'' of the property. The private sector would also require a lower revenue remittal or some other contract concession in order to compensate for the risk of that investment.

• If the public sector covers capital improvements, it is doubtful that cash flow remitted from the operator will be sufficient to cover debt associated with those improvements.

RERC agreed to profile a limited number of publicly owned but privately operated campgrounds with Martin County's assistance. This work task was not in our original scope of services. We did agree to try and obtain as much information as possible with the assistance of Martin County.

At the beginning of this assignment, Martin County agreed to assist RERC in identifying comparable campgrounds operated by the private sector. The County and RERC developed a survey that was distributed to park operators from around the country to assist in identifying comparable facilities. Even though there were multiple attempts to obtain answers to those questions, there was ultimately no response to the survey.

Since no information was available from this survey effort, RERC was limited in what we could provide due to the study budget constraints of the County. Also, the lack of survey response was most likely indicative of the relatively limited number of campgrounds owned and operated in this manner. However, we did identify several campgrounds in the Ocala National Forest area that were publicly owned yet privately managed. In our opinion, the Salt Springs campground was the most comparable to the potential operations of Phipps Park.

The Salt Springs campground is located near the intersection of State Roads 314 and 19, near the town of Salt Springs. The campground has 160 sites, of which 1 06 are RV sites with hookups (water, electric and sewer) and 54 tent sites without hookups. The park is situated on 90 acres adjacent to the Salt Springs run and within walking distance of the springs.

Amenities include:

• Picnic Tables • Charcoal Grills • Dump Station • Bathroom and Showers • Swimming Beach • Fishing • Boat Launch • Basketball Court, Horseshoe Pits and Recreation Barn • Small Store • Within a short drive: grocery store, marina with boat and canoe rentals, laundry and

restaurants.

The campground is owned by the federal government but managed by a private company (American Land and Leisure). From 1997 through 1998, approximately $2.5 million in improvements were added to the campground. These included all new electric, water, sewer hookups for 106 sites, new roads and RV pads, three new restroom/shower buildings (men- 2 toilets, 2 showers; women- 3 toilets, 2 showers), and a new bathhouse at the swimming area.

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Year

The campground was open during the construction process. The public sector paid for all capital improvements.

Campground fees and length of stay limits are:

• $17 per night for full hook-up • $13 per night for tent sites • $3 per person for day use • Golden Age card holder (62 years and older)- pay half price • Minimum stay of two days on weekends and 3 days on holiday weekends. • Maximum stay of 180 days.

American Land and Leisure is under a 5-year contract to operate the campground with an option to renew for an additional five years. The company remits 18 percent of net revenues (gross sales less sales tax) to the federal government.

In 2001, the campground achieved an occupancy level of 43 percent. March, April and July were the most occupied months (51 to 59 percent). These figures are skewed downward due to the inclusion of tent sites in the total. If only RV sites were included, occupancy would increase significantly. Management indicated that these sites are virtually 100 percent occupied in the winter months.

Based on information obtained from the federal government and park management, the campground had the following revenue and expenses from 1997 through 2001:

Total Net Revenues Operating

Camping (1) Day Use (1) Food (1) Revenues Revenues (2) to Govt (3) Subtotal Expenses Profit C4l

1997 (5) $231,000 $116,000 $39,000 $386,000 $362,000 $65,000 $297,000 $267,000 $30,000

1998 (5) $154,000 $77,000 $26,000 $257,000 $242,000 $43,000 $198,000 $178,000 $20,000

1999 (5) $164,000 $82,000 $27,000 $273,000 $258,000 $46,000 $211 ,000 $190,000 $21 ,000

2000

2001

$248,000 $124,000 $41,000 $413,000 $388,000 $70,000 $318,000 $287,000 $32,000

$270,000 $135,000 $45,000 $450,000 $423,000 $76,000 $347,000 $312,000 $35,000

Notes:

(1) Based on estimates of% revenue distributions from management.

(2) Net revenues=Gross revenues less sales tax (6%)

(3) 18% of net revenues remitted to federal government

(4) 10% profit margin based on conversations with management

(5) The campground was under renovation during this time.

Revenue rose dramatically in 2000 and 2001 after the campground renovations were completed. About 60 percent of total revenue was derived from campsite rentals. There was an operating profit of about 10 percent including the remittal to the federal government.

Page 22 30 of 43


Phipps Park Recommendations

Phipps Park currently has a total of 60 campground sites without hookups. The campground has two restroom buildings with showers, a dump station, children's playground, picnic tables, fire rings and a recently opened boat ramp. The internal roads are unpaved. The park's main amenity is the St. Lucie Canal, which has limited visibility from adjacent campsites due to the topography and existing vegetation .

We believe Phipps Park has the potential to be a highly utilized campground . The park has only averaged about a 30 percent occupancy, much lower than comparable parks. Campsite fees are $3.00 (County residents) and $6.00 (non-County residents) per site, also lower than comparable parks.

Operating performance and utilization can be improved dramatically if the park's infrastructure is improved. The facility has excellent access from 1-95 and has a relatively central location to County residents . The principal amenity (St. Lucie Canal) is under-utilized, but that can be corrected with the proper improvements.

Based on our profile of competitive and comparable parks, we believe the following phased recommendations should be implemented at Phipps Park:

Phase I

• 75-1 00 RV sites with hookups, picnic tables, fire rings and charcoal grill stands. At least 25 to 50 percent of the sites should have full hook-ups (water, electric and sewer) with the remainder having water and electric hookups.

• Renovation of existing restroom/shower buildings, plus add new restroom/shower building.

• Improve internal roads to at least a hard packed gravel surface. Paving would be preferable if the cost can be absorbed.

• RV pad sites should also be at least a hard packed gravel surface.

• Improve the entrance to the park with fencing, landscaping and an entrance checkpoint. Camping fees would be collected at the entrance.

• Add a small building that would house a camp store selling convenience and basic camping related goods (firewood, charcoal, ponchos, etc.). A business/computer room with internet access could also be included here.

• Make the St. Lucie Canal more of a visual amenity. Clear some of the vegetation to create better views. Create areas where fishing could occur.

• Add a dock and several slips (5 to 1 0) that could be used by boaters passing through the canal. Hookups would not be necessary in this phase.

• Consider adding a rental concession for small non-powered boats and canoes. This operation could be housed within the camp store building noted earlier. The building should be located proximate to the dock areas.

Page 23 31 of 43


• Expand the existing children's playground.

• Add 4 to 6 freestanding picnic pavilions that could be used by day visitors or groups. A small air-conditioned meeting room could be added to one of the picnic pavilions.

• Create special events or programs that will bring attention to the park. These could include outdoor festivals, canoe and kayak races, fishing demonstrations, etc. It may be possible to get local businesses to help sponsor these events. For example, local sporting goods stores may want to be involved with kayak races or fishing exhibits as a means of selling their products. These events would raise awareness of the park and site amenities and act as a good marketing vehicle for the renovated facility. We also understand that the Stuart-Potsdam Canoe and Kayak Club has plans to use Phipps Park as a training base for Olympic athletes. This activity may bring in spectators and programs could be developed for the general public. Specific activities and programs are not available at this time, but the overall impact to the park and campground should be very positive.

• Expand area for primitive camping that could accommodate about 20 tents. No hookups would be needed in this area. This area would most likely not produce significant revenue but would allow a more diverse camping experience. Tent camping could also be allowed in sites with hook-ups. However, they would pay the same overnight rate as RV's.

• Add laundry facilities, vending machines and a game room.

Future Phases

If Phase I is successful and meets the County's financial goals, this future phase of improvements could be implemented. The timing of these improvements is unknown, but would most likely not occur until the campground's operations had stabilized after Phase I renovations.

• Add 30 to 50 more RV sites with full hookups (water, electric and sewer), along with the site amenities noted earlier.

• Add an additional restroom/shower building.

• Consider adding more dock and boat slip space depending on demand.

• Add 1 to 2 more freestanding picnic pavilions.

• Consider adding a swimming pool (discussed in more detail later).

Later phases may also include paving the internal roads assuming a hard packed gravel surface is used in early phases. The County may also want to consider adding sewer hookups to all campsites prior to paving. Also, in the first phase of work, we would recommend including the piping necessary to add sewer hookups at a later date. We did not include sewer hookups at all sites in the first phase of work due to the County's restriction on length of stay.

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A maximum of 30 days of camping per person per County fiscal year is allowed. Since longterm stays are discouraged, we did not feel that sewer hookups would be needed in all campsites. This recommendation depends on the outcome of cost estimates to be provided by EMS. If the savings were marginal, we would recommend putting sewer hookups in all RV sites.

The County is also interested in investigating whether a swimming pool could benefit the park. We do not believe that needs to occur in the first phase of development. It may be warranted in later phases depending on demand and feedback from campers.

The KOA Campground was the only comparable facility we profiled with a swimming pool amenity. The KOA actually has two pools, one for adults and one for children. That campground is operated like a motel and requires a higher amenity level to justify the much higher camping fees charged versus the competition. The other parks we profiled do have natural swimming areas but no swimming pools. Since the St. Lucie Canal is not a good swimming alternative, a pool could ultimately be a desirable amenity for Phipps Park.

We did speak with management at Turkey Lake Park in Orlando concerning the operation of their pool. That park has limited overnight camping (36 RV sites) and is operated as more of a day use park. They do not charge an extra admission or fee for use of the pool . The pool is open from May through August and has a capacity of about 1 00 bathers per hour. A pool that size requires four lifeguards. Management did indicate they would like to eventually add an interactive children's area that would not require lifeguards. Management did not have separate operating estimates for the pool, but did indicate it is not a revenue generator.

If a pool were added at Phipps Park, it would most likely function as a recreational amenity, not a separate revenue generator. It may positively impact camping usage, particularly in the summer months. The County may be able to use the facility for a limited amount of recreational programs oriented towards local residents. However, this type of use cannot be extensive or it would negatively impact camper access to the pool.

Financial Operating Estimates

The financial operating estimates for a renovated Phipps Park were a collaborative effort between Martin County and RERC. Martin County prepared the financial operating estimates based on RERC's market study, their experience with Phipps Park and their staffs experience with campgrounds in other locations. RERC has evaluated the assumptions and resulting financial projections for Phase I, and they do not appear unreasonable based on our study and our experience in the industry.

The projections assume camping fees would be as follows:

Hookups Tent Sites (no hookups)

Resident

$15 $10

Non-Resident

$18 $12

A day user fee for entry into the park was not included. Except for use of the boat ramps and picnic pavilions, day entry exclusive of camping would most likely be relatively limited in this phase. Fees for use of the picnic pavilion could be accommodated in separate rental arrangements with the groups using the facilities. The boat ramp would have free access under this assumption. These are also policy issues for the County. If the desire is to

Page 25 33 of 43


maximize revenue, the County may want to consider initiating a separate entry fee. However, if easy access to this recreational amenity is the goal, then a fee should not be instituted.

Also, it was assumed that County residents would continue to get a resident camping fee at reduced rate from non-resident visitors. This assumption is built into the revenue projections.

Campground occupancy ranged from 50 percent in year 1 to 70 percent in year 5.

A staffing need of 3 full-time employees with an additional 3 part-time positions was a principal expense assumption. Full-time salaries including benefits were estimated to average $25,000 to $30,000 annually, with part-time staff at approximately $18,000 on an annualized basis.

Camping fees were held at the same rate for each year, which is a relatively conservative assumption. Operating expenses generally increased about 4 to 5 percent per year. Debt service for Phase I is described in detail in the next section, but was estimated at a constant $1 00,000 per year.

Under these assumptions, the following operating revenues and expenses could be generated after first phase improvements are completed (assuming 75 RV sites):

Operating Revenues:

Camping Fees Store Boat Rentals Other Total Revenue

Operating Expenses:

Salaries & Wages Other Operating Expenses Total Operating Expenses

Net Operating Profit Debt Service

Net Operating Profit After Debt Service

Year 1 YearS

$213,000 $260,000 $34,000 $40,000 $24,000 $28,000 $20,000 $24,000

$291,000 $353,000

$114,000 $135,000 $76,000 $88,000

$190,000 $223,000

$101,000 $130,000 $100,000 $100,000

$1,000 $30,000

A year by year financial projection for Phase I is summarized in Table 5 in the Appendix.

The projections assume the park is managed in a professional and efficient manner. This could be achieved through the public sector if proper policies are implemented and experienced staff is retained.

If the private sector were retained to manage the park, it may be possible to increase revenues. If the private sector could increase revenue by 1 0 to 20 percent, and they were required to remit 10 percent of total revenue to the County, the following would occur:

Page 26 34 of 43


Total Revenue (Public sector operations)

Total Revenue (Private sector operations)(1)

Revenue to County(2)

First Phase-Year 5

$353,000 .

$388,000 - $424,000

$39,000- $42,000

(1)Assumes 10 to 20 percent revenue enhancement with private sector management

(2)Assume 10 percent of total revenue is remitted to County

Either of these scenarios would result in less than the projected net operating profit prior to debt service for public sector management. However, all the risks of operation would fall to the private sector under this scenario.

The actual interest in managing the park from the private sector could only be gauged by issuing an RFP for these services. We used a 10 percent remittal fee as an illustrative example. The actual negotiated percentage could be less than this estimate. Also, we believe it may be difficult to entice the private sector to invest significant capital resources in campground improvements based on our discussions with private management companies. The responsibility for improvements will most likely fall to the public sector.

Cost Estimates

EMS estimated the construction costs necessary to renovate and improve Phipps Park based on the program outlined by RERC. Their estimates are based on the extensive experience of the company with parks and recreation areas within the State. EMS has been involved in the planning efforts related to numerous parks in this area of the State and Martin County.

The EMS construction cost estimates include RERC's improvement recommendations as well as additional costs for architectural and engineering services and contingencies. These costs exclude any extensive site work (other than what is described in our recommendations), as well as permitting fees. EMS estimated these improvements in a manner that would provide campers a basic to moderate quality product, similar in many respects to the quality level at the nearby St. Lucie Locks Campground. Any adjustments to the assumed quality level could significantly impact these cost estimates.

You should also keep in mind that this is a preliminary planning document designed to provide an indication as to the general level of financial investment necessary to upgrade the campground. A much more detailed planning, design and cost estimation effort will be needed if you decide to actually proceed with these improvements and additions.

Future phase costs include an allowance for a swimming pool. Construction costs for pools can vary dramatically depending on size. We have assumed the pool would be relatively small and used for recreational, not competitive purposes. It would not be an Olympic size pool. Larger pools that can accommodate 100 to 150 people can cost from $800,000 to $1,500,000, which is much greater than what is included in our budget. You may want to reexamine the costs and benefits of a pool at a later date prior to actual development.

Page 27 35 of 43


Given these assumptions, EMS estimates Phase I renovation and additions would range from approximately $1,000,000 to $1,200,000. Future phases as described earlier could cost an additional $500,000 to $800,000. Therefore, the total for all work as proposed could range from approximately $1,500,000 to $2,000,000. However, if future phases are added at a later date as is assumed in this document, costs associated with that expansion would need to be reevaluated at that time.

Assuming the County could issue 20-year bonds at an interest rate of 6°/o, annual debt service for Phase I could range from approximately $90,000 to $105,000. Using the same bond assumptions, future phases could add another $45,000 to $70,000 of annual debt service. Therefore, if all phases were completed, total debt service could range from about $135,000 to $175,000 annually. Again, if future phases are added at a later date, costs associated with that debt service would need to be reevaluated at that time.

Debt service costs could of course be reduced if the park is improved in multiple phases. However, this would have a corresponding impact of lowering the operating revenue for the campground as presented here.

County management may also want to treat Phipps Park as an amenity to local residents, not as a separate profit center. Most municipal parks operate at a deficit and are provided to the public as a part of the public sector's service to the community. The deficit that would have to be funded at Phipps Park could be treated in a like manner. However, that is a policy decision that will have to be made by County management.

Page 28 36 of 43


APPENDIX

Page 29 37 of 43

I I TABLEt

DEMOGRAPHIC CHARACTERISTICS, 1990 & 2000 CENSUS MARTIN COUNTY

I 1990 2000 Amount Percent Amount Percent

Population 100,900 NA 126,731 NA

I Age:

Under 5 5,162 5.1% 5,599 4.4%

5 to 17 12,576 12.5% 18,024 14.2%

18 to 24 6,799 6.7% 6,724 5.3%

I 25 to 44 26,589 26.4% 29,015 22.9%

45 to 54 9,757 9 .7% 16,527 13.0%

55 to 64 12,327 12.2% 15,056 11.9%

65 to 74 16,828 16.7% 17,959 14.2%

I 75 to 84 8,9 11 8.8% 13,891 11.00/o

85 & older 1.951 1.9% 3.936 3.1%

100,900 100.0% 126,731 tOO.O%

Households:

I Owner Occupied 33,079 76.9% 44,136 79.8%

Renter Occupied 9 943 23.1 % .l.l.J22 20.2%

Total 43,022 100.0% 55,288 100.0%

SeasonaVRecreational Use 6,900 16.0% 7,189 13.00/o

I People Per Household 2.28 NA 2.23 NA

Median Value of Owner Occupied Housing $112,700 NA $152,400 NA

I Education:

Percent High School Graduate or Higher NA 79.7% NA 85 .3%

Percent Bachelor's Degree or Higher NA 20.3% NA 26.3%

I Residence 5 Years Previous:

% In Same House NA 42.6% NA 50.00/o

% In Different House-Same County NA 19.0% NA 18.9%

I % In Different House-Different County NA 13.3% NA 14.5%

% In Different House-Different State or Abroad NA 25 .1% NA 16.6%

Employment by Industry:

Agriculture & Mining 2,086 5.1% 1,065 2.1%

I Construction 4,595 11 .2% 5,357 10.5%

Manufacturing 4,179 10.1% 3,354 6.6%

Transportation & Communications 2,694 6.5% 2,684 5.3%

Wholesale & Retail Trade 9,491 23.0% 8,303 16.3%

I Information <I> NA NA 1,014 2.0%

Finance, Insurance & Real Estate 3,218 7 .8% 3,678 7.2%

Services 13,708 33.3% 23,333 45 .7%

Public Administration I 227 3.0% 2.266 4 .4%

I Total 41 ,198 100.0% 51,054 100.0%

Median Household Income $31 ,760 NA $43,083 NA

I Notes:

<1lNew employment category added for 2000 census. Source: US Census Bureau; Real Estate Research Consultants, Inc .

I I I I

38 of 43


DEMOGRAPHIC CHARACTERISTICS, AVERAGE ANNUAL GROWTH FROM 1990 TO 2000 CENSUS MARTIN COUNTY

Population

Age: Under 5 5 to 17 18 to 24 25 to 44 45 to 54 55 to 64 65 to 74 75 to 84 85 & older

Households: Owner Occupied Renter Occupied Total

Seasonal/Recreational Use

People Per Household

Median Value of Owner Occupied Housing

Education: Percent High School Graduate or Higher Percent Bachelor's Degree or Higher

Residence 5 Years Previous: % In Same House % In Different House-Same County %In Different House-Different County %In Different House-Different State or Abroad

Employment by Industry: Agriculture & Mining Construction Manufacturing Transportation & Communications Wholesale & Retail Trade Information ( I )

Finance, Insurance & Real Estate Services Public Administration Total

Median Household Income

Notes: < •~ew employment category added for 2000 census.

Total Growth 25,831

437 5,448

(75) 2,426 6,770 2,729 1,131 4,980 1.985

25,831

11 ,057 1,209

12,266

289

NA

NA NA

NA NA NA NA

(1,021) 762

(825) (I 0)

(1,188) NA

460 9,625 1,039 9,856

NA

Source: US Census Bureau; Real Estate Research Consultants, Inc.

A vg Annual Growth A vg Annual Growth % 2,583 2.3%

44 545 (8)

243 677 273 113 498 199

2,583

1,106

ill 1,227

29

NA

NA NA

NA NA NA NA

(102) 76

(83) (I)

(119) NA

46 963 104 986

NA

0.8% 3.7%

(0.1)% 0.9% 5.4% 2.0% 0.7% 4.5% 7.3% 2.3%

2.9% 1.2% 2.5%

0.4%

NA

3.1%

3.0% 5.0%

4.0% 2.3% 3.3%

(1.7)%

(6.5)% 1.5%

(2.2)% (0.0)% (1.3)%

NA

1.3% 5.5% 6.3% 2.2%

3.1%

TABLE2

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- - - - - - - - - - - - - - - - ~ABLtp -SUMMARY PROFILE OF COMPETITIVE OR COMPARABLE CAMPGROUNDS AND PARKS

MARTIN COUNTY - PHIPPS PARK

Park Name KOA Okeechobee Long Pointe Jonathan Dickinson Ft. Pierce Inlet John Prince Sebastian Inlet St. Lucie Locks

Contact Person Olivia Moorman Jack Leffingwell Mark Nelson PenySmith John Ramsey Ron Johns Ted Estes

Phone Number (863) 763-0231 (321) 952-4532 (772) 546-2771 (772) 468-4007 (561) 792-5882 (321) 984-4852 (772) 219-4575

General Location Okeechobee, FL Melbourne Beach, FL Hobe Sound, FL Ft. Pierce, FL Palm Beach, FL Melbourne Beach, FL Stuart,FL

Acres 117 85 11,500 18 48 1,000 3-4

Number of Sites

Tents 675 no distinction 170 no distinction 130 no distinction approx. 20 265 no distinction 51 no distinction 3 RVs 675 no distinction 170 no distinction 130 no distinction 0 265 no distinction 51 no distinction 9

Cabins/Cottages .u. n/a .ll Q n/a n/a n/a

Total 700 170 142 20 265 51 12

Amenities

Cabin rentals y N y N N N N

Full hookups y y y N N y y

Paved sites y y N N y y y

Tables y y y y y y y

Cable TV y N N N N N N

Beach/waterfront N y y y y y y

Boat ramp/dock N y y N y y y

Pets on leash y y y y y y y

On site store y N y N N y N

Laundry y y N N N y N

Rec.hall/Clubhouse y N N N N N N

Swimming pool y N N N N y N

Swimming pond N y N Y (ocean) N Y (cove) N Playground y y y y y y y

Equestrian facilities N N y N N N N

Boat, canoe, kayak rentals y N N y N

Special Amenities

18-hole golf course Boat access by site Conservation area Youth camp only Part of a larger park Inlet access for boats Water access

Bike/walking paths Swimming ponds Large boat, canoe, NoRVs with ballfields, Atlantic access for boats Clean and small

2 pools - kids, adults Fishing kayak rental Beach courts, water access Fishing

tennis courts

Competition

NA Sebastian Inlet None in particular, Jonathan Dickinson Jonathan Dickinson Long Pointe Jonathan Dickinson

Jonathan Dickinson maybeKOA in Sebastian Inlet Ronnie's (location)

Source: Park Management; Real Estate Research Consultants, Inc. Okeechobee

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- - - - - - - - - - - - - - - - - - -TABLE4 SUMMARY PROFILE OF COMPARABLE CAMPGROUNDS AND PARKS MARTIN COUNTY- PHIPPS PARK

Park Name KOA Okeechobee Long Pointe Jonathan Dickinson Ft. Pierce Inlet John Prince Sebastian Inlet St. Lucie Locks Contact Person Olivia Moorman Jack Leffingwell Mark Nelson Perry Smith John Ramsey Ron Johns Ted Estes

Phone Number (863) 763-0231 (321) 952-4532 (772) 546-2771 (772) 468-4007 (561) 792-5882 (32 I) 984-4852 (772) 2 I 9-457 5 General Location Okeechobee, FL Melbourne Beach, FL Hobe Sound, FL Ft. Pierce, FL Palm Beach, FL Melbourne Beach, FL Stuart, FL

Day Admission

Per Car nla $2 $3 $3 nla $3 nla

Per Person nla $2 $1 $1 nla $3 nla

Campground Rates (Daily)

Tents $35-$39 $14 $14-$17 nla $15-$18 $14 $12

RVs $45-$49 $18-$22 $14-$17 nla $15-$ I 8 $17 $16

Cabins/Cottages $64 (cabin)-$135 (cottage) nla $85-$95 nla nla nla nla

Golfside $55-$59 nla nla nla nla nla nla

Waterside nla nla nla nla $15-$18 $16-$19 nla

Additional Fees (Daily or Per Use)

Electricity nla nla $2 nla nla nla nla

Extra Car nla nla $3 nla $3 $2 nla

Pet Fee nla nla $2 nla nla nla nla

Picnic Pavillion nla $20-$100 $60-$90 n/a $30-$60 nla

Boat Launch Fee nla n/a $2 n/a nla $2 $2

Equestrian Fee Per Horse nla n/a $5 n/a nla n/a n/a

Shower n/a nla $5 n/a nla n/a nla

Dump Station n/a nla $5 nla $5 $5 nla

Golf $28-$42 nla nla nla nla nla nla

Storage $5 n/a n/a n/a nla n/a nla

Cable TV $2 n/a n/a n/a nla nla nla

Boat rental (motorized) n/a n/a $30 for 2 hrs. n/a nla $45-$139 for 1/2 day nla

Canoe, kayak rental n/a n/a $1 0-$20 for 2 hrs. nla nla $17-$39 for 2 hrs. nla

Occupancy (Avg. Annual) 2001 50o/o-60% 70% 51 % n/a 60% 80% 50%

2000 SOo/o-60% 70% 51 % n/a 60% 80% 75%

Guest origin (estimated)

County residents not tracked 50% (Summer) not tracked n/a not tracked not tracked 35o/o-45%

Other SE Fl county residents not tracked >20% (S) not tracked n/a not tracked not tracked >5%

Central Florida not tracked >20% (S) not tracked n/a not tracked 60% (S) 40% (W) >5%

In state 80% (S), 20% (W) < 10% (S) 40% n/a 55% not tracked >5%

Out of State 20% (S), 60%9 (W) 50% (W) 40% n/a 35% 40% (S) 60% (W) 35%-45%

International (incl. Canada) 20% (W) 50% (W) 20% n/a 10% 40% (S) 60% (W) >5%

Source: Park Management; Real Estate Research Consultants, Inc.

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- - - - - - - - - - - - - - - - - - -TABLES

PROJECTED FINANCIAL OPERATIONS PHIPPS PARK- PHASE I

Year 1 Year2 Year3 Year4 YearS 50% Occupancy 55% Occupancy 60% Occupancy 60% Occupancy 70% Occupancy

Operating Revenues: Camping Fees $213,000 $224,000 $235,000 $235,000 $260,000

Camp Store $34,000 $36,000 $38,000 $40,000 $40,500

Boat/Other Rentals $24,000 $25,000 $26,000 $27,000 $28,000

Other $20.000 $21.000 $22.000 $23.000 $24.000 Total Operating Revenues $291,000 $306,000 $321,000 $325,000 $352,500

Operating Expenses: Salaries & Wages $114,000 $120,000 $125,000 $130,000 $135,000

Other Operating Expenses $75.800 $79.520 $84,050 $84.550 $87.920

T ota1 Operating Expenses $189,800 $199,520 $209,050 $214,550 $222,920

Net Operating Profit Before Debt Service $101,200 $106,480 $111,950 $110,450 $129,580

Debt Service $100,000 $100,000 $100,000 $100.000 llOO.OOO

Net Operating Profit After Debt Service $1,200 $6,480 $11,950 $10,450 $29,580

Source: Martin County Parks & Recreation Department

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Month Revenue Percentage Occupancy # of sites Days Total Days Average Rental13-Apr $5,167 5% 14% 60 30 1800 $2013-May $3,471 3% 9% 60 31 1860 $2013-Jun $2,701 2% 8% 60 30 1800 $2013-Jul $5,176 5% 14% 60 31 1860 $20

13-Aug $3,570 3% 10% 60 31 1860 $2013-Sep $4,984 5% 14% 60 30 1800 $2013-Oct $16,448 15% 44% 60 31 1860 $2013-Nov $10,486 10% 29% 60 30 1800 $2013-Dec $10,487 10% 28% 60 31 1860 $2014-Jan $18,437 17% 50% 60 31 1860 $2014-Feb $15,985 15% 48% 60 28 1680 $2013-Mar $12,450 11% 33% 60 31 1860 $20

Total YTD $109,362 Occupancy Avg 25%

Levels Occupancy RevenueFY2013 18% $90,000

YTD 25% $109,000 Goal 70% $218,000

*Consultant states 70% occupancy can be achieved

$0

$5,000

$10,000

$15,000

$20,000

14-Jan 14-Feb 14-Mar 14-Apr 14-May 14-Jun 14-Jul 14-Aug 14-Sep 14-Oct 14-Nov

Revenue

Revenue

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Documents

8E1 · 8e1 board of county commissioners agenda item summary ... aca ca background/related strategic goal: ... enclosure 8 of 43. i i i i i i i