01-Executive SummaryJuly 2010
Executive Summary
Feasibility of a Twin Sheet of Ice and Evaluation of Current Single Sheet
Janesville, Wisconsin
Rink Management Services Corporation has been retained to evaluate the current
facility condition of the Janesville Ice Skating Center, and the viability of constructing a
new twin sheet facility; including its design and forecasted budget.
Interviews were conducted with primary user groups during our initial research, and
additional interviews were held when merited. Our staff also visited the competing rinks
with Janesville Ice Skating Center. We reviewed the current operations at the Janesville
property including the demographic information, as well as hockey and figure skating
data provided by USA Hockey and US Figure Skating for the region.
Rink Management Services has reviewed the floor plan and layout drawings for the
proposed twin rink facility. Generally speaking, we believe the plans to be quite
reasonable. There are a few suggestions we have to increase efficiency included in this
report.
Rink Management Services does not believe that there is enough demand in the region
to support a newly constructed, twin sheet facility, nor do we think this facility could
financially sustainable if constructed. Most user groups of the current facility are
satisfied with their ice allotment and do not see a future need for additional ice for their
organizations. As you are aware, satisfied is a relative term with ice rink user groups.
Almost all groups everywhere in the country would like to have more prime time ice
available to them, and usually at a lower cost. The key factors regarding satisfaction
when considering ice expansion are the potential growth of the group’s programs and
their sensitivity to increased prices. The biggest user group, the Janesville Youth Hockey
Club, stated in our interview that they are “not turning anyone away”. They do not
believe their members would be receptive to an increase in their current fees. If a new
twin rink was built, the rates and user fees would have to increase in order to avoid the
subsidy to the facility increasing. The rate increase could establish the list price of an
hour of ice at $210. Even at this price a twin ice rink would need subsidies.
Unless an existing competitive rink closes, it is Rink Management Service’s opinion that
the percentage of ice utilization in prime time (defined as 5pm to 10pm weekdays and
8am to 9pm on weekends and holidays) would not grow more than 30% even if two rinks
were constructed. Much of the increase in the utilization of the second ice rink will come
from customers switching from the existing rink for more desirable time slots.
We have included two Profit & Loss statements from RMSC managed properties. We
believe that these are a fair representation of how a twin sheet facility should perform
financially. We have reviewed the 2008 and 2009 actual results for the Janesville Ice
Skating Center, and we evaluated the estimated budgets for the proposed twin ice rink.
We have also included a cost estimate for construction of a typical twin ice rink.
The current arrangement with Wisconsin Hockey Partners, LLC seems to be working in
the existing facility and has proven to be a popular draw in the community. The team’s
attendance numbers would probably improve with a new and larger facility, however,
under the current contract the team has a number of ways to vacate. If a new rink was to
be built, we would recommend a revision of the existing contract with this group.
Rink Management Services is the largest operator of ice skating facilities in the United
States. We have operated rinks in every type of market and demographic profile and
have been involved in more than 42 ice rink construction projects. Our conclusions are
based on local research tempered with the practical experience gained by operating
more than 37 different ice rinks over an 18 year period.
Rink Management Services is available via conference call to review this study.