Silent Sports Center

Pro Forma

Business Plan

March 2013

I. SILENT SPORTS CENTER BUSINESS PROPOSITION

The Loppet Foundation (Foundation) and the Minneapolis Park & Recreation Board (Park

Board) have worked together successfully for over ten years. In that time, the Foundation and

the Park Board have created a high-level winter recreation area, with world class cross country

ski facilities. The Foundation and the Park Board have brought events like the City of Lakes

Loppet to Minneapolis and have leveraged assets like the Loppet to provide year-round outdoor

recreational opportunities to the entire community, but especially to inner-city youth from North

Minneapolis.

Because the Foundation and the Park Board have a common mission - to provide year-round

outdoor recreational opportunities to the Minneapolis area - with a special emphasis on North

Minneapolis youth - the Foundation and the Park Board propose to enter a more formal

partnership going forward. The purpose of the partnership would be to create a “silent sports

center” that would enhance Theodore Wirth Park, provide better services and attract more

people to the park, while at the same time saving Park Board funds.

For purposes of this business plan the silent sports center project is assumed to be complete.1

This business plan focuses on the Loppet Foundation’s management of the silent sports center

once complete. Management of the silent sports center includes:

● management of the welcome center building (silent sports lodge);

● management of the winter recreation area, including cross country ski trails throughout

the Minneapolis Parks & Recreation system, and the snowboarding and tubing hills at

Theodore Wirth Park;

● management of the “mountain bike event trails” surrounding the welcome center and

extending to the area adjacent to Bassett Creek and north of the Wirth Chalet;

For purposes of this business plan, the income areas are roughly grouped together. Because

many of the expenses run across the entire plan, the expense areas are not necessarily

grouped by any one area of the business.

Note that this business plan does not include the Loppet Foundation’s current non-profit

business, but only the new income and expenses related to this venture specifically.

1 The Loppet Foundation is currently engaged in a fundraising campaign to raise the necessary funds for

the silent sports center project. This business plan only becomes relevant if the necessary funds are

raised and the silent sports center is built.

II. INCOME

The Foundation-run Silent Sports Center will derive revenues from roughly three areas: 1) the

welcome center building, 2) the winter recreation area, and 3) the mountain bike event trails.

A. Management of the Welcome Center Building

There are two basic income categories related directly to the Welcome Center - rent and pass

or membership type fees.

1. Income - Rent

In general, the Foundation has assumed very conservative rent numbers. Rent figures include

rent for a bike and ski shop ($1,500/month), rent for a restaurant type facility ($1,000/month)

and rent for office space for other non-profits with complementary missions ($1,000/month

total). The Foundation also expects to charge rent for use of the Welcome Center training room

for activities such as a yoga studio ($1,000/month). Finally, the Foundation expects to rent the

space for periodic banquets and weddings. Conservatively estimating two weddings or

banquets per month at $1000 rental the Foundation expects to generate some $24,000/year off

of weddings and banquets.

2. Income - Welcome Center Passes and Memberships

The concept here is to include showers and lockers facilities in the welcome center, similar to

what might be found in a health club. The difference is in the exercise facilities. The welcome

center might provide one small room for doing some push-ups and pull-ups and stretching, but

would otherwise offer only the trails. Rather than providing exercise bikes, stairmaster

machines, weight lifting apparatuses, etc., the Loppet Foundation would provide a gateway to

the outdoors - the assumption being that the club member would check in, change clothes and

proceed into the outdoors to go skiing, biking, running or hiking. A station or stations for check-

in validation would be located on the trails themselves.

The business plan assumes 300 annual memberships at $35/month and about ten day passes

sold per day at $10 each.

B. Winter Recreation Area

The Foundation will derive revenue from three basic facets of the winter recreation area - cross

country skiing, tubing and snowboarding.

1. Cross Country

Revenue from cross country skiing is mostly related to pass sales, but lesson fees and event

permitting fees also come into the equation.

a. Income - Cross Country Pass Sales

The Park Board brings in revenues between $120,000 and $160,000 per year from the sale of

cross country ski passes. The Foundation expects pass revenues to both increase and stabilize

under Foundation management. Pass revenues should increase for a number of reasons:

● Marketing. Most people do not even know that a ski pass is required. The Foundation

plans to post more signage to this effect. Special effort in this regard will be made in the

Chain of Lakes area - where there is the biggest concentration of skiers but the least

signage or enforcement. The Foundation will also be sending a postcard mailing to past

passholders and to the relevant portion of the Foundation’s mailing list. This simple

technique should ensure significantly increased pass sales.

● Urgency. With snowmaking, people purchase early season skiing. The Park Board has

typically not demonstrated the urgency necessary to attract passholders. The Park

Board routinely opens cross country ski trails after places like Elm Creek Park Reserve.

With a pond to optimize the snowmaking and a Foundation-driven maintenance crew the

trails should open earlier in the year, which will have a significant effect on pass sales.

● Reliability. Grooming on Park Board trails has not been reliable. One day the trails are

groomed, the next day they are not. Trails on the Chain of Lakes, Hiawatha Golf

Course, Columbia Golf Course and Gross Golf Course are typically groomed only about

once per week. The Foundation has a plan to groom more reliably and frequently but at

less cost. Specifically, the Foundation plans to store grooming equipment at each

location and have neighborhood volunteers do the grooming in these areas. This is the

technique used at Woodland Hills in Elk River and at Battle Creek Park in St. Paul. Both

systems routinely receive accolades for the excellent grooming. This approach will save

on maintenance costs while at the same time making the trails more reliably groomed.

This too will have a dramatic effect on pass sales.

Currently there are about 3,000 season pass and about 4,500 daily passes sold each year.

With better marketing, more early season snowmaking and more reliable grooming the

Foundation expects season pass sales to increase dramatically. Conservatively, the

Foundation expects to generate at least $180,000 in cross country pass sales per year.

b. Income - Cross Country Lessons

The Loppet Foundation already has a significant lesson presence in the Minneapolis area.

Running the walk-up type lessons is just another small revenue stream. The Park Board has

typically taken in about $5,000 in walk-up type lesson income and the Foundation expects to

take in a similar amount. However, by running the walk-up lessons the Foundation expects to

increase revenues for its Loppet Nordic Racing (LNR) through referrals to the longer-term LNR

programming.

c. Income - Cross Country Event Permitting

Because Wirth Park has snowmaking facilities and challenging terrain Wirth Park is a highly

desirable place to run cross country events. As the manager of the winter recreation area the

Foundation will need to permit the use of the trails in order to balance general passholder use

with event use. The Foundation expects to permit some fifteen high school meets at about

$800/meet as well as three to five “citizen” events at about $1000/event - for a total of at least

$15,000 per season.

2. Income - Tubing

The tubing hill for the Park Board has typically brought in around $70,000/year. The Foundation

believes that this number will grow for three reasons. First, the engineering of the current tubing

hill causes significant problems that delay the start of tubing by several weeks each year.

Correcting this problem through moving the tubing hill to a new, better planned, location,

combined with better snowmaking facilities and a different management structure will mean

earlier and more reliable snow on the tubing hill. Second, the Foundation will be investing in the

marketing of the tubing hill - investments that do not happen under Park Board management.

Third, the tubing hill will move to a new and, hopefully, better location - closer to the welcome

center building. Based on these changes, the Foundation conservatively estimates revenues of

about $100,000 per year from the tubing hill.

3. Income - Snowboarding

Snowboarding revenues have never been a substantial part of the winter recreation program

income. The Foundation does not expect this to change. However, the Foundation does plan a

few modifications to the current program. The current snowboarding hill is cupped in shape -

which means that it is difficult for beginner-level users. Some grading of the snowboard hill will

help make it more friendly to beginner-level snowboarders. With many “implements” (jumps,

rails, etc.) that only experienced snowboarders can handle, the snowboard hill is currently

geared toward the advanced riders, but the size and lack of variety of the hill make it better for

beginner level snowboarders. The Foundation will market the hill to beginner-level

snowboarders only, letting the advanced snowboarders go to more appropriate venues like

Hyland Hills, Buck Hill or Afton Alps. With the new emphasis on beginners, combined with the

attraction provided by the new chalet and the more convenient path from the new welcome

center to the snowboard hill, the Foundation expects snowboard income to increase slightly,

with most of the increase going to the bike and ski shop, which will handle the snowboard

rentals.

C. Mountain Bike Event Trails

The Foundation believes that there is significant demand for event trails for mountain biking,

cyclocross, and trail running type events. Examples of some of the demand segments include

the new high school mountain bike league, high school cross country running events, citizen

mountain bike events, citizen trail running and citizen cyclocross events. The Foundation

expects to permit at least four high school events at a fee of about $500/event, six citizen

mountain bike events, four citizen trail running events and four citizen cyclocross events at

about $500/event as well - for a total of at least $9,000 in trail permit fees.

III. EXPENSES

There are six expense categories for the Silent Sports Center project: 1) management, 2)

general maintenance, 3) welcome center costs, 4) costs specific to particular areas like cross

country skiing, tubing, snowboarding and mountain bike/event trails, 5) marketing costs, and 6)

Park Board fees.

A. Management Costs

The silent sports center, including the Welcome Center, will be managed by a single individual.

The employment expense for this management position is expected to be in the $60,000 range.

The Foundation’s executive director is expected to spend about half his/her time on the silent

sports center - equating to about $30,000/year.

B. General Maintenance Costs

Under this plan the Loppet Foundation takes over trail maintenance, snowmaking, trail grooming

and similar operations. The primary maintenance costs include staffing, volunteer

management, and equipment costs.

1. Maintenance Staffing and Volunteers

The Loppet Foundation plans to take a hybrid approach to the maintenance staffing needs of

the silent sports center. The staff would include one full-time foreman-level employee and

seasonal employees augmented by volunteers. The foreman would coordinate and manage the

seasonal employees and the volunteers. The seasonal employees would work primarily in late-

November and December or until the snowmaking process is complete, with one or two staying

on through early-March. The foreman and the seasonal employees would be augmented by

volunteers, who would help with both snowmaking and grooming.

The Foundation anticipates about $50,000 in employment expense for the maintenance

foreman and another $16,000 in expenses for the seasonal employees. In order to ensure long-

term volunteerism, the Foundation would spend an additional $10,000 per year on volunteer

coordinating and volunteer perks like hats and jackets.

2. Maintenance Equipment Costs

This Business Plan assumes that the Park Board continues to maintain its current fleet of

equipment. The Loppet Foundation would augment that equipment with additional equipment

(snowmobiles and grooming implements), mostly for use in volunteer grooming of “outlying” ski

courses (Hiawatha, Gross, Columbia and the Chain of Lakes). The Foundation anticipates an

initial investment of $10,000 and an ongoing cost of $7,000/year.

C. Welcome Center Expenses

There are several elements to management of the welcome center building. Staffing costs,

maintenance and utilities lead the way.

1. Staffing the Welcome Center.

The Foundation anticipates several types of staffing for the Welcome Center -

concierge/information, janitorial, management and staff related to the bike and ski shop and the

coffee shop/restaurant. The business plan includes staffing for 360 days with 18 hours per day

and two concierge/informational staff at $12/hour. These concierge/informational staff would

also sell passes for skiing, tubing, par-3 golfing, etc. The plan anticipates spending

$1500/month on janitorial services for the common areas of the Welcome Center. The bike and

ski shop and the coffee shop/restaurant space would be responsible for their own employees

and janitorial services.

2. Maintenance of the Welcome Center.

Because the Welcome Center will be a new building, the Foundation anticipates that

maintenance costs will be relatively low. The Foundation is anticipating maintenance costs of

$12,000/year.

3. Welcome Center Utilities.

Because the Welcome Center will be a LEED certified building, utility costs should be minimal.

The Foundation expects utilities to run no more than $24,000/year.

4. Sinking Fund

With the welcome center built as a “green” building and with high standards of construction, the

roof and the mechanical system should not need replacement for up to 40 years. For that

reason, setting aside $20,000/year for replacement should be more than adequate to cover the

costs. The Foundation has allocated $20,000/year to a “sinking fund” for the building.

D. Expenses Related to Specific Areas

Certain expenses are attributable to particular areas - like cross country skiing, tubing,

snowboading and mountain bike/event trails.

1. Expenses - Cross Country Ski Trails

After maintenance costs, including snowmaking and grooming, have been covered, there are

minimal extra expenses. Signage, instructor fees for lessons, trail preparation and costs for

volunteer trail ambassadors are some of the only other expenses. The total costs for cross

country after snowmaking and grooming are less than $6,000/year.

2. Expenses - Tubing

After snowmaking and grooming, the primary costs for tubing involve the cost of the attendants

and the cost to purchase and maintain tubes. This business plan assumes that the Park Board

conveys its stock of tubes to the Foundation and also assumes that the Park Board moves the

tubing facility to its new and better location. The plan assumes that the tubing hill is open for

nine weeks - three weekdays and two weekend days each week, for four hours each day during

the week and for twelve hours each day on weekends. It assumes four attendants working at all

times. With those assumptions, the tubing hill costs some $18,000+ per year to operate.

3. Expenses - Snowboarding

Similar to the tubing hill, snowboard expenses after snowmaking and grooming are not

significant - with the cost of attendants and instructors being the biggest expenses. The total

cost to run the snowboarding hill is also just over $18,000 per year.

4. Expenses - Mountain Bike / Event Trails

The mountain bike/event trails will be maintained primarily with volunteer labor. The

maintenance foreman will lead this effort and coordinate with volunteers. Between volunteer

expenses and trail maintenance supplies, event trail maintenance is expected to run some

$8,000/year.

E. Expenses - Insurance

After getting an initial quote, insurance costs for the Silent Sports Center are expected to cost

no more than $25,000/year.

F. Expenses - Marketing

To make this plan work the Foundation needs to engage in an extensive marketing effort.

Particular areas that need marketing attention include the cross country ski passes, the health

club aspect of the welcome center and the tubing hill. Marketing efforts will include appeals to

past pass holders, to the Loppet Foundation’s mailing list, to runners, skiers, bikers and

mountain bikers and to the general public that lives in the area. The tubing hill also needs to be

a marketing focus. Signage, brochures, flyers, mailings and coupons will all be part of the

Foundation’s marketing efforts. The Foundation expects to incur costs of just less than

$17,000/year on marketing and sponsorship expenses.

G. Park Board Fees

This Business Plan assumes that the Foundation would pay the Park Board an 8% fee on

revenues from the Silent Sports Center. This 8% fee would cover fees collected by the

Foundation incident to the running of the Silent Sports Center. For instance, the 8% fee would

apply to trail pass fees for cross country skiing, snowboarding and tubing. It would apply to

permit fees and welcome center use fees - e.g., for use of the locker room or use of the facility

for a wedding or other event. It would not apply to fees collected by sub-lessors, like a bike and

ski shop or a coffee shop or restaurant. Instead, the Park Board fee would apply to rent or

concession fees paid to the Loppet Foundation by the sub-lessor. Based upon revenue

projections, it is anticipated that the Foundation would pay the Park Board about $45,000/year.

IV. ANALYSIS: LEVERAGE AND ECONOMIES OF SCALE

This business plan is independent of the Loppet Foundation’s current business model. But in

reality the current Loppet Foundation and the Winter Recreation Area management plan will

complement each other on multiple fronts. For instance, the Loppet’s youth programming

efforts will now have a home in the welcome center. This will allow the Foundation to increase

the quality of its youth programming and to serve more North Minneapolis youth.

This plan has not directly analyzed the potential for economies of scale that a bigger

organization can command. Suffice it to say that generally the Loppet Foundation currently

operates in the black and the Silent Sports Center operation plan contained here also projects

positive net revenue. To the extent that there is concern about what might happen if the Silent

Sports Center business does not go as planned, there are two backstops to consider. The first

is the cost savings that the Loppet Foundation can achieve by having a larger organization. An

example might be the Loppet’s Operations Director. The Operations Director currently spends

significant time engaging in manual labor type tasks like hauling equipment around. Under this

plan the Operations Director likely morphs into the manager of the Silent Sports Center

generally, with other, lower-cost employees taking on the manual labor aspects of the job. The

second backstop is the successful and diversified nature of the Loppet Foundation currently.

Foundation revenues emanate from a variety of sources, including sponsorship, grants, event

registration fees, programming fees, memberships and donations. While there is some chance

that one or more of these sources of income will dry up, it is highly unlikely that the organization

as a whole will go under.

V. NET REVENUE PLAN

There may be some concern that the Loppet Foundation will “make money off of public land . . .”

There are a few points that should be made here. First, the Park Board currently loses some

$230,000/year on the winter recreation area. Under this plan, with a minimal initial investment

and $10,000/year in expense the Park Board provides more and better services than it did at a

loss of $230,000/year. Moreover, the whole reason that the parties are partnering on this

project is that the parties missions are generally aligned. Both the Park Board and the Loppet

Foundation want to see more people enjoying the outdoors throughout the year. To the extent

that the Loppet Foundation has positive net revenues those revenues go back into satisfying the

Foundation’s mission - to promote and support the cross country skiing lifestyle in the

Minneapolis area, especially among inner-city youth. While this mission does not necessarily

equate exactly with what the Park Board would do with Silent Sports Center proceeds, this

business plan saves the Park Board at least $220,000/year before the net revenues are even

considered.

VIII. PARTNERS

The Loppet Foundation prides itself on working with the community. Community partners

include:

● Minneapolis Park & Recreation Board

● Minneapolis Public Schools

● Minneapolis Community Education Department

● Beacons afterschool programming

● Bolder Options

● Northstar Ski Touring Club

● Minneapolis Youth Ski League

● The Sisu Foundation

● Major Taylor Bicycling Club

● The Courage Center

● Skijor USA

● Minnesota Kubb

● Minnesota Orienteering Club

● The Pohlad Foundation

● UCare Minnesota

● The Medica Foundation

● The Huelsmann Family Foundation

● The Uptown Association

● Cedar Lake Park Association

● Nice Ride Minnesota

● Back Country Trail Patrol Association

● Minnesota Canoe Association

● Boys & Girls Clubs

● Oak Park Community Center

● Redeemer Center for Life

● Wilderness Inquiry

● Friends of Eloise Butler Wildflower Garden

The Foundation also partners with scores of private businesses, usually in sponsor

relationships. See the sponsor pages of the various Loppet events to learn more about the

Foundation’s private partners.

IX. PRO FORMA ACCOUNTING

IncomeCross Country Pass Fees 30,000 100,000 30,000 20,000 180,000Cross Country Permit Fees 5,000 5,000 5,000 15,000Cross Country Lesson Revenues 2,000 2,000 1,000 5,000Cross Country Rentals 350 350 350 1,050Snowboarding 10,000 10,000 10,000 30,000Snowboard lessons 2,000 2,000 1,000 5,000Tubing 50,000 25,000 25,000 100,000Concessions - coffee shop/restaurant 500 800 1,000 1,000 800 800 500 1,200 1,000 800 500 1,000 9,900Concessions - bike and ski shop 100 500 1,000 500 500 500 500 1,500 1,000 500 500 1,000 8,100Rent - bike and ski shop 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000Rent - restaurant 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000Rent - other non-profits 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000event trail permit fees 500 2,000 3,000 2,000 1,500 9,000Welcome Center "member" fees 3,000 5,000 6,000 7,000 7,000 7,000 7,000 8,000 9,000 9,000 9,000 9,000 86,000Welcome Center day pass fees 3,000 5,000 5,000 5,000 4,000 3,000 2,000 2,000 3,000 3,000 1,000 3,000 39,000Welcome Center yoga studio rental 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000Welcome Center rental fees (weddings, banquets, etc.) 500 3,000 3,000 2,000 4,000 3,000 1,000 1,000 2,000 2,000 1,000 1,500 24,000Par-3 golf kiosk 500 500 500 500 500 500 500 500 500 500 500 500 6,000

Total Income 12,600 21,300 24,000 22,500 22,800 19,300 46,000 188,050 95,350 82,650 17,000 20,500 572,050

ExpensesManagement

Executive Director (based on % time on silent sports center)2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000Accounting and Tax Filing 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000Program Manager (based on 50% time)2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000Winter Recreation Area Supervisor 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000

General MaintenanceMaintenance staff 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 50,400Volunteer Expenses 3,000 2,000 2,000 3,000 10,000

EquipmentEquipment purchase - for grooming secondary courses0 10,000 10,000Storage trailers rental 0 0 0 0 0 0 500 500 500 500 0 0 2,000Snowmobile depreciation and maintenance0 0 0 0 0 0 0 0 0 0 0 0 0

00

Welcome CenterStaff 12,960 12,960 12,960 12,960 12,960 12,960 12,960 12,960 12,960 12,960 12,960 12,960 155,520Utilities 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000Maintenance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000Sinking Fund 0 0 0 0 0 0 0 0 0 0 0 20,000 20,000Janitorial 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000

Cross CountrySignage 1,000 1,000Ambassadors 1,000 1,000Transaction fees for passes 0Lesson fees 833 833 833 2,499Trail Preparation 3,500 3,500

Tubing Hill 0tubing hill operators - 4,200 4,200 4,200 12,600Tubes 3,000 3,000Tube storage 1,000 1,000 1,000 3,000Transaction fees for passes 0

Snowboard Hill 0snowboard hill operators 3,500 3,500 3,500 10,500snowboard hill instructors 2,000 2,000 1,000 5,000Hill Preparation 1,000 1,000Tow line and other maintenance 1,000 1,000

Event Trails 0Volunteer costs 1,000 500 500 500 500 3,000Maintenance 500 500 500 500 3,000 5,000

Marketing costs 0advertising 250 250 250 250 250 250 250 250 250 250 250 250 3,000brochures 2,000 2,000 4,000signage 1,000 1,500 2,500Direct mail to passholders 2,500 2,500

Insurance 12,500 12,500 25,000

Park Board feesPark Board fee 41,444 41,444concessions fee to Park Board 3,840 3,840

0Total Expense 49,410 33,910 33,910 36,910 33,910 49,410 60,910 46,943 47,943 43,943 32,910 98,194 568,303

PROFIT/LOSS -36,810 -12,610 -9,910 -14,410 -11,110 -30,110 -14,910 141,107 47,407 38,707 -15,910 -77,694 3,747

Cash Status - Year-to-Date -36,810 -49,420 -59,330 -73,740 -84,850 -114,960 -129,870 11,237 58,644 97,351 81,441 3,747

May June July August Sept. Oct. Nov. Dec. Jan. Feb. March April Total

Cross Country Pass Fees 0 0 160,000 20,000 180,000Cross Country Permit Fees 0 0 10,000 5,000 15,000Cross Country Lesson Revenues 0 0 4,000 1,000 5,000Cross Country Rentals 0 0 700 350 1,050Snowboarding 0 0 20,000 10,000 30,000Snowboard lessons 0 0 4,000 1,000 5,000Tubing 0 0 75,000 25,000 100,000Concessions - coffee shop/restaurant 5,500 3,500 2,700 2,300 14,000Concessions - bike and ski shop 4,000 1,500 3,000 2,000 10,500Rent - bike and ski shop 4,500 4,500 4,500 4,500 18,000Rent - restaurant 3,000 3,000 3,000 3,000 12,000Rent - other non-profits 3,000 3,000 3,000 3,000 12,000event trail permit fees 6,000 3,500 0 0 9,500Welcome Center "member" fees 27,000 27,000 27,000 27,000 108,000Welcome Center day pass fees 6,500 6,000 3,500 3,500 19,500Welcome Center yoga studio rental 3,000 3,000 3,000 3,000 12,000Welcome Center rental fees (weddings, banquets, etc.) 10,000 9,000 4,000 4,500 27,500Par-3 Golf kiosk 1,500 1,500 1,500 1,500 6,000

Total Income 74,000 65,500 327,400 115,150 582,050

ExpensesManagement

Executive Director (based on 50% time on silent sports center)7,500 7,500 7,500 7,500 30,000Accounting and Tax Filing 7,500 4,500 4,500 4,500 21,000Program Manager (based on 50% time) 6,000 6,000 6,000 6,000 24,000Winter Recreation Area Supervisor 15,000 15,000 15,000 15,000 60,000

General MaintenanceMaintenance staff 12,600 12,600 12,600 12,600 50,400Volunteer Expenses 0 3,000 7,000 0 10,000

EquipmentEquipment purchase - for grooming secondary courses0 0 0 0 0Storage trailers rental 0 0 2,000 0 2,000Snowmobile depreciation and maintenance 0 0 0 5,000 5,000

Welcome CenterStaff 38,880 38,880 38,880 38,880 155,520Utilities 6,000 6,000 6,000 6,000 24,000Maintenance 3,000 3,000 3,000 3,000 12,000Sinking Fund 5,000 5,000 5,000 5,000 20,000Janitorial 4,500 4,500 4,500 4,500 18,000

Cross Country 0 0 0 0 0Signage 0 0 1,000 0 1,000Ambassadors 0 0 1,000 0 1,000Transaction fees for passes 0 0 0 0 0Lesson fees 0 0 1,666 833 2,499Trail Preparation 0 3,500 0 0 3,500

Tubing Hilltubing hill operators - 0 0 8,400 4,200 12,600Tubes 0 0 3,000 0 3,000Tube storage 0 0 2,000 1,000 3,000Transaction fees for passes 0 0 0 0 0

Snowboard Hillsnowboard hill operators 0 0 7,000 3,500 10,500snowboard hill instructors 0 0 4,000 1,000 5,000Hill Preparation 0 0 1,000 0 1,000Tow line and other maintenance 0 0 1,000 0 1,000

Event TrailsVolunteer costs 2,000 1,000 0 0 3,000Maintenance 1,000 4,000 0 0 5,000

Marketing costs

Income Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total

advertising 750 750 750 750 3,000brochures 2,000 0 2,000 0 4,000signage 1,000 0 1,500 0 2,500Direct mail to passholders 0 0 1,500 0 1,500

Insurance 12,500 0 12,500 0 25,000

Park Board feesPark Board fee 41,964 41,964concessions fee to Park Board 4,360 4,360

Total Expenses 125,230 115,230 160,296 165,587 566,343

PROFIT/LOSS -51,230 -49,730 167,104 -50,437 15,707

Cash Status - Year-to-Date -51,230 -100,960 66,144 15,707

Cash Status - Project-to-Date -47,483 -97,213 69,891 19,454

Income Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total

Cross Country Pass Fees 0 0 160,000 20,000 180,000Cross Country Permit Fees 0 0 10,000 5,000 15,000Cross Country Lesson Revenues 0 0 4,000 1,000 5,000Cross Country Rentals 0 0 700 350 1,050Snowboarding 0 0 20,000 10,000 30,000Snowboard lessons 0 0 4,000 1,000 5,000Tubing 0 0 75,000 25,000 100,000Concessions - coffee shop/restaurant 5,500 3,500 2,700 2,300 14,000Concessions - bike and ski shop 4,000 1,500 3,000 2,000 10,500Rent - bike and ski shop 4,500 4,500 4,500 4,500 18,000Rent - restaurant 3,000 3,000 3,000 3,000 12,000Rent - other non-profits 3,000 3,000 3,000 3,000 12,000event trail permit fees 6,000 3,500 0 0 9,500Welcome Center "member" fees 27,000 27,000 27,000 27,000 108,000Welcome Center day pass fees 6,500 6,000 3,500 3,500 19,500Welcome Center yoga studio rental 3,000 3,000 3,000 3,000 12,000Welcome Center rental fees (weddings, banquets, etc.) 10,000 9,000 4,000 4,500 27,500Par-3 Golf kiosk 1,500 1,500 1,500 1,500 6,000

Total Income 74,000 65,500 327,400 115,150 582,050

ExpensesManagement

Executive Director (based on 50% time on silent sports center)7,500 7,500 7,500 7,500 30,000Accounting and Tax Filing 7,500 4,500 4,500 4,500 21,000Program Manager (based on 50% time) 6,000 6,000 6,000 6,000 24,000Winter Recreation Area Supervisor 15,000 15,000 15,000 15,000 60,000

General MaintenanceMaintenance staff 12,600 12,600 12,600 12,600 50,400Volunteer Expenses 0 3,000 7,000 0 10,000

EquipmentEquipment purchase - for grooming secondary courses0 0 0 0 0Storage trailers rental 0 0 2,000 0 2,000Snowmobile depreciation and maintenance 0 0 0 5,000 5,000

Welcome CenterStaff 38,880 38,880 38,880 38,880 155,520Utilities 6,000 6,000 6,000 6,000 24,000Maintenance 3,000 3,000 3,000 3,000 12,000Sinking Fund 5,000 5,000 5,000 5,000 20,000Janitorial 4,500 4,500 4,500 4,500 18,000

Cross Country 0 0 0 0 0Signage 0 0 1,000 0 1,000Ambassadors 0 0 1,000 0 1,000Transaction fees for passes 0 0 0 0 0Lesson fees 0 0 1,666 833 2,499Trail Preparation 0 3,500 0 0 3,500

Tubing Hilltubing hill operators - 0 0 8,400 4,200 12,600Tubes 0 0 3,000 0 3,000Tube storage 0 0 2,000 1,000 3,000Transaction fees for passes 0 0 0 0 0

Snowboard Hillsnowboard hill operators 0 0 7,000 3,500 10,500snowboard hill instructors 0 0 4,000 1,000 5,000Hill Preparation 0 0 1,000 0 1,000Tow line and other maintenance 0 0 1,000 0 1,000

Event TrailsVolunteer costs 2,000 1,000 0 0 3,000Maintenance 1,000 4,000 0 0 5,000

Marketing costs

Income Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total

advertising 750 750 750 750 3,000brochures 2,000 0 2,000 0 4,000signage 1,000 0 1,500 0 2,500Direct mail to passholders 0 0 1,500 0 1,500

Insurance 12,500 0 12,500 0 25,000

Park Board feesPark Board fee 41,964 41,964concessions fee to Park Board 4,360 4,360

Total Expenses 125,230 115,230 160,296 165,587 566,343

PROFIT/LOSS -51,230 -49,730 167,104 -50,437 15,707

Cash Status - Year-to-Date -51,230 -100,960 66,144 15,707

Cash Status - Project-to-Date -31,776 -81,506 85,598 35,161

Income Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total

Cross Country Pass Fees 180,000 180,000 180,000Cross Country Permit Fees 15,000 15,000 15,000Cross Country Lesson Revenues 5,000 5,000 5,000Cross Country Rentals 1,050 1,050 1,050Snowboarding 30,000 30,000 30,000Snowboard lessons 5,000 5,000 5,000Tubing 100,000 100,000 100,000Concessions - coffee shop/restaurant 14,000 14,000 14,000Concessions - bike and ski shop 10,500 10,500 10,500Rent - bike and ski shop 18,000 18,000 18,000Rent - restaurant 12,000 12,000 12,000Rent - other non-profits 12,000 12,000 12,000event trail permit fees 9,500 9,500 9,500Welcome Center "member" fees 108,000 108,000 108,000Welcome Center day pass fees 19,500 19,500 19,500Welcome Center yoga studio rental 12,000 12,000 12,000Welcome Center rental fees (weddings, banquets, etc.) 27,500 27,500 27,500Par-3 Golf kiosk 6,000 6,000 6,000

Total Income 585,050 585,050 585,050

ExpensesManagement

Executive Director (based on 50% time on silent sports center) 30,000 30,000 30,000Accounting and Tax Filing 21,000 21,000 21,000Program Manager (based on 50% time) 24,000 24,000 24,000Winter Recreation Area Supervisor 60,000 60,000 60,000

General MaintenanceMaintenance staff 50,400 50,400 50,400Volunteer Expenses 10,000 10,000 10,000

EquipmentEquipment purchase - for grooming secondary courses 0 0 0Storage trailers rental 2,000 2,000 2,000Snowmobile depreciation and maintenance 5,000 5,000 5,000

Welcome CenterStaff 155,520 155,520 155,520Utilities 24,000 24,000 24,000Maintenance 12,000 12,000 12,000Sinking Fund 20,000 20,000 20,000Janitorial 18,000 18,000 18,000

Cross Country 0 0 0Signage 1,000 1,000 1,000Ambassadors 1,000 1,000 1,000Transaction fees for passes 0 0 0Lesson fees 2,499 2,499 2,499Trail Preparation 3,500 3,500 3,500

Tubing Hilltubing hill operators - 12,600 12,600 12,600Tubes 3,000 3,000 3,000Tube storage 3,000 3,000 3,000Transaction fees for passes 0 0 0

Snowboard Hillsnowboard hill operators 10,500 10,500 10,500snowboard hill instructors 5,000 5,000 5,000Hill Preparation 1,000 1,000 1,000

Income Year 4 Year 5 Year 6

Tow line and other maintenance 1,000 1,000 1,000Event Trails

Volunteer costs 3,000 3,000 3,000Maintenance 5,000 5,000 5,000

Marketing costsadvertising 3,000 3,000 3,000brochures 4,000 4,000 4,000signage 2,500 2,500 2,500Direct mail to passholders 1,500 1,500 1,500

Insurance 25,000 25,000 25,000

Park Board feesPark Board fee 41,964 41,964 41,964concessions fee to Park Board 4,360 4,360 4,360

Total Expenses 566,343 566,343 566,343

PROFIT/LOSS 18,707 18,707 18,707

Cash Status - Project to Date 53,868 72,575 91,282

Income Year 4 Year 5 Year 6

percent going toPark Board forgeneral revenues 0.08percent going toPark Board forconcessionrevenues 0.08SinkingFund/EscrowAccount $20,000.00Golf Kiosk Fee paidby Park Board toLoppet Foundation -per year $6,000.00Initiail cost ofsnowmobiles andgroomers for"outying" sites - likeColumbia, Chain ofLakes, Hiawatha,etc. $10,000.00Annual cost ofupkeep of Loppetgroomingequipment $5,000.00Cost of storagetrailers for outlyingsites $2,000.00