Executive Summary

Ballard*King and Associates (B*K) was hired to conduct a feasibility study for a community center in Millcreek Township, PA. The objective of this study is to understand the market for a community center and, if warranted, recommend a facility program. This recommendation would include the anticipated participation and estimated revenue and expenses. Project tasks included analyzing demographic information, providing participation and facility trends, reviewing alternative providers, recommending potential facility amenities and developing an operating pro-forma.

Market Analysis:

As part of the study, B*K conducted a market assessment. B*K examined several service areas, that include:

• Primary Service Area. This was identified as the boundary of Millcreek Township, and residents who will likely be regular users of the facility, meaning at least weekly participation.
• Secondary Service Area. This was identified as an approximate 30-minute drive, or a distance from which individuals will travel a couple times a month.

Key Indicators

B*K accesses demographic information from Environmental Systems Research Institute (ESRI) which demographically analyzes 2020 Census data to generate 2024-2029 projections. In addition to demographics, ESRI also provides data on housing, recreation, and entertainment spending and adult participation in activities.

When completing studies for indoor recreation facilities there are two data points that B*K uses to predict the financial success of the facility; a higher median household income, and a population of 50,000+ in the primary service area. If the primary service area meets these data points, our experience would indicate that a facility has the potential for significant cost recovery. If those data points are not met, it does not mean that the facility won't be embraced and heavily used by the community, but it does mean that achieving significant cost recovery will be much more challenging.

Population: The population within the primary service area (53,671) is just above what B*K would typically see in a membership-based facility. For program and rental based facilities, the population is typically higher, at least 75,000. The Secondary Service Area provides a considerable population as potential users.

Median Income: The Primary and Secondary service areas have a lower median household income in comparison to the State of Pennsylvania. This reality means that determining an accurate price point for membership, programs and services will be

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