Development Options & Enterprise Plan (Update)

April, 2004

Section 1 - Background

In the spring of 2000, Cherry Huffman Architects in association with Counsilman/Hunsaker & Associates was retained to develop the information necessary for the political leadership of the Town of Cary to make a knowledgeable decision regarding how to go forward with the future of aquatic programming in the Cary community. During this process, Cherry Huffman Architects and Counsilman/Hunsaker & Associates developed the following findings:

The existing aquatic programming need is beyond capacity of the Town of Cary and region.
The Town of Cary does not currently provide an aquatic facility.
There is a high level of demand from competitive aquatic groups in the community.
The school districts in the Cary community are high users of aquatic facilities and have not developed facilities to meet the school district’s need.

Counsilman/Hunsaker & Associates, in conjunction with the Town of Cary, the aquatic committee, and the community developed a mission statement for the development of a new aquatic facility.

The mission statement identifies uses including amateur sports, recreation, and fitness. Each of these user groups requires unique spaces that may or may not be compatible with each other. The competitive swimmer prefers cool, deep water preferably in the 78 to 82 degree temperature range. They also prefer deep water for safety with regard to starting block usage as well as speed in minimizing wave action.

The fitness and recreation user prefers warmer water and often less than 4½ feet deep. When looking at aquatic usage nationally, the competitive swimmer makes up less than 10 percent of the population, while according to the National Sporting Goods Association, 90 percent of all aquatic users define themselves as recreation users. It has also been our experience that the recreation user is willing to pay more to use an aquatic facility than the competitive swimmer. This is due to the fact that they come less frequently and expect more for their investment through a recreation value standpoint.

As a result of these observations, Counsilman/Hunsaker & Associates developed recreation amenities to be considered in the 2000 study outside of the original charge from the Town of Cary. Understanding the influences of recreation on the fiscal sustainability of aquatic facilities, the town felt that a recreation component was important to be included in the overall development of an aquatic center. Not only will this make it attractive to a large cross-section of the town, but will also increase its fiscal performance. Four options were created for study and evaluation. These options are presented in Section 2 of this document with updated in formation to 2004 figures.

During the Needs Analysis portion of the investigation in the 2000 study, the discussion of priorities with regard to community and regional programming was discussed.

2003 Revisited

When a community amenity is being considered, it is sized for capacity taking into account the immediate market area. This assumes little or no usage outside of the town area and may have managerial barriers of preventing non-residents from using the facility. A regional concept allows the facility to grow in scope and capacity to not only meet the needs of the town by creating more amenities and more value, but helping to financially support the use of the facility by non-residents. This often results in a two-tiered fee structure.

One of the early concepts developed but not carried through to the final stages of the Enterprise Plan was to create two community-oriented aquatic facilities. These included a 25 yard by 25 meter pool providing ten training and competitive lanes, with an indoor/outdoor leisure component. The reason this option was removed from further consideration was that combining the two 25 yard by 25 meter concepts we were able to achieve a 50 meter field of play, thereby meeting additional needs in the community for long course swimming.

In the spring of 2004 as we look forward to aquatic programming opportunities in the Town of Cary, it is evident that additional aquatic facilities are likely to be constructed meeting the 50 meter dimension. This could either be the result of the Town of Cary facility or private group investment. Today, this as well as funding realities may change the dynamics influencing the town’s decision regarding community versus regional aquatic planning. (See Section 4)

In the fall of 2000, when the draft report was being discussed and finalized, the conversation of developing a national venue facility was brought to attention. The potential benefits included the opportunity for a facility of this type to contribute to the economic engine in the town and region. As a result, a national venue option was developed for study and included in the final report.

Since the conclusion of the Enterprise Plan, Option 4 (the Venue Concept) has been further developed by a volunteer group creating a vision that would feature aquatics, ice, and fitness facilities for the region. The group and concept has become know as The State Capital Sports Center (SCSC). This group has facilitated conversation with regard to land acquisition, funding sources, partnership opportunities, and management protocols. The foundation of the State Capital Sports Center rests on the Town of Cary to partner in creating the vision.

During the budgeting process in the summer of 2003, the town council for the Town of Cary approved a $5 million dollar budget allocation for the next 3 years to support the development of an aquatic center in the Cary community. This commitment was important in laying the foundation to approach Wake County for the opportunity to participate in matching the funding commitment to develop a regional destination oriented facility. As of this writing, the county has not made a decision with regard to funding participation.

In June of 2003, the Triangle Aquatic Center (TAC) organization approached the Town of Cary for aquatic development partnership opportunities. The concept primarily concentrates on meeting the needs of aquatic sport and programming in a traditional approach with aquatic spaces defined around sport requirements. This concept is to make an initial investment for meeting some of the needs for aquatic space and develop numerous facilities through the triangle region. It will not meet all of the needs, but it is designed to begin the process of providing additional aquatic space in the community.

In August of 2003 at the invitation of SCSC, the Consultants met with SCSC representatives, user groups and town officials, and toured potential sites. Areas of discussion focused on the SCSC concept, organizational structure, funding strategies, and discussions with town staff on the next steps. In further discussion with the Town of Cary, it was felt that the town needed to move forward in making a decision on the priorities and direction regarding aquatic programming in the community and not wait indefinitely for the county or others to move the project forward. The town further required assistance in evaluating the options presented for consideration. These include:

Implementing the concepts developed during the 2000 Enterprise Plan Study.
Evaluate adding a separate diving well and platform to Option 1 from the 2000 Enterprise Plan Study.
Participating in evaluating proposals submitted by SCSC and / or TAC.
Re-evaluating the role of the Town of Cary in providing aquatic programming to the community.
Re-visiting the community aquatic center concept.
Leading an effort based upon the 2000 Enterprise Plan Study concept that would meet the needs of SCSC, TAC, and the Town of Cary.

To assist in this process, Counsilman / Hunsaker & Associates were retained to update the findings of the 2000 Enterprise Plan and evaluate the concepts proposed by the two community organizations.

Section 2 - Updating Enterprise Plan to 2003 Economic Conditions

Four options were presented in the Enterprise Plan dated December 2000. The following summary updates the findings of the December 2000 report to the current economic conditions for the spring of 2004.

Option 1:

Project Cost: $11,500,000

Square Footage: 46,777

First Year Estimated Attendance:

Recreation 69,142*

*Recreation attendance, in this case, is defined as any non-programmed use of the facility, including self-directed exercise, training, and therapy programs.

Option 1 is an 8-lane 50-meter competitive pool, a moveable floor, one bulkhead, necessary support areas, permanent seating for 450 spectators, and 1-meter and 3-meter springboard diving boards.

Table 1
Opinion of Financial Performance

Option 1

Town of Cary

In this table and in subsequent references throughout this report, “recapture rate” is a phrase used to define the percentage of operating expenses recuperated or recaptured by operating revenue. It is common in the parks and recreation industry to judge facility performance in these terms.

Option 2:

Project Cost: $4,710,000

$5,000,000

Square Footage: 16,865

First Year Estimated Attendance:

Recreation 99,245

Option 2 is an indoor leisure fitness pool that can be added to Option 1 and is located in a separate room. This option cannot stand alone, as it does not include the necessary support space to operate independently of Option 1. It does include the necessary pool mechanical and building mechanical spaces required by the leisure pool.

Table 2
Opinion of Financial Performance

Option 2

Town of Cary

Option 3:

Project Cost: $3,210,000

Square Footage: 22,400

First Year Estimated Attendance,

Recreation 73,466

Option 3 is an outdoor recreation pool that will include recreation features to attract and accommodate summer recreational programming. The support spaces provided in Option 1 would provide the necessary locker rooms for summer usage. A snack bar is included for the outdoor pool.

Table 3
Opinion of Financial Performance

Option 3

Town of Cary

Option 4A&B:

Project Cost: $30,500,000

Square Footage: 196,169

First Year Estimated Attendance:

Recreation 100,399

Options 4A and 4B make up a venue-oriented facility that will be capable of serving the competitive aquatic sports needs of the Town of Cary. This facility features an indoor 50 Meter by 25 Meter competition pool with a separate diving pool with platform and springboard diving. The natatorium also features 2,500 spectator seats with the ability of accommodating temporary seating at deck level. In addition to the indoor aquatic amenities, Option 4B provides an outdoor 50 Meter by 25 Yard venue training pool. In addition to the aquatic space, area is provided for as many as 10,000 temporary seats.

Table 4
Opinion of Financial Performance

Option 4A & B

Town of Cary

Section 3 - Partnership Proposals

State Capital Sports Center

Mission Statement

Responding to the discussions in the community, Capital Sports Management (CSM) built on the venue option (Option 4) in the Enterprise Plan to complement the aquatics portion of the project with other sports and recreation components while developing a business model that could be fiscally sustainable. The current concept is known as the State Capital Sports Center featuring five pools including three indoor pools and two outdoor pools. The three indoor pools include a 50 meter competition/training pool, a 25 yard by 25 meter diving well, and a recreation pool. There will be an additional 50 meter pool and leisure pool outdoors. In addition to the aquatic space, a fitness/wellness center would be created of approximately 70,000 sq. ft. These amenities will include a gymnasium, racquetball courts, exercise room, juice/health food bar, wellness center, child care facilities, steam rooms, saunas and locker space. The third component of the sports facility will include ice facilities with two ice rinks. One sheet of ice will be sized to the Olympic dimensional standards, while the other will be more traditionally designed. The two ice sheets and support spaces will encompass more than 65,000 square feet of programming area including spectator seating, party rooms, skate rental, pro shop, snack bar and changing facilities.

The current cost estimates, not reflecting land acquisition, are approximately $40,000,000.

Bundling Amenities

The State Capital Sports Center concept has expanded upon the aquatic center’s earlier study in the Enterprise Plan to include an entire recreation experience. This approach is a common practice nationally in providing services for a community in an attractive and economically viable way. It has been the Consultant’s experience that the bundling of amenities increases market penetration for all areas of the recreation center by creating a critical mass of recreation value, thus attracting a greater percentage of the population to the facility resulting in great use.

In meeting the recreation needs beyond aquatics, another approach would be to develop separate ice, fitness and aquatic spaces throughout the community. The concept of bundling these amenities together will increase the efficiency of delivering and managing the recreation experience.

The current SCSC partnership plan is teaming with private enterprise including the Ice House to provide industry experience on ice development and management as well as Carolina Sports in supporting the fitness center. The current details of investment and operations have yet to be worked out with these different constituencies; however, this group as a whole appears to have the industry knowledge to develop and operate the amenities outlined. A business plan and structure including capital investment requirements and management protocols has yet to be developed. There are additional advantages of bundling these amenities by taking into account efficiencies of some of the common spaces. This could include locker rooms, family changing rooms, team rooms, food service, administration, mechanical and circulation space.

Triangle Aquatic Center

Mission Statement

The Triangle Aquatic Center (TAC), a non-profit organization, has been developing a strategy for several years in creating aquatic spaces and experiences in the Cary region. TAC is implementing a vision that would create a number of aquatic facilities throughout the triangle area. They view the Cary development as the potential of being a prototype and leading facility in implementing this vision. They have and are completing the following tasks in the continuing development of aquatic spaces.

1. Close on 21.5 acres of land on October 23, 2003.

2. Contract with an A&E firm to begin design and site development work on the property assuming a 50 meter outdoor pool and a 25 yard indoor pool and building.

3. Begin the development of a fund-raising plan.

4. April 2004, TAC submitted site plan approval to the Town of Cary.

The below concept was provided by TAC depicting the concept developed for the Town Center site.

In the Consultant’s opinion, the purpose of TAC approaching the Town of Cary was to build on a foundation and structure TAC has created to expand capacity of the existing concept for the Town of Cary community. If an alliance could be established, it is the goal of TAC to have facilities for use as quickly as possible.

In the Consultant’s opinion, TAC will proceed in developing aquatic programming space with or without participation with the Town of Cary. Partnering will allow the TAC concept to increase capacity and potentially meet some town’s aquatic needs.

Developing a strategic partnership with TAC requires a discussion of mission and priorities for the Town of Cary.

Competitive Aquatics:

If the Town of Cary participates in implementing the aquatic vision for TAC the focus will likely be on aquatic sports (swimming, diving, synchronized swimming and water polo). A strategic alliance between TAC and the Town of Cary would allow for improvements in the current budgeted program to include a 50 meter pool, natatorium, and warm-up facilities. By investing in this concept, the town should consider if expanding the amenities for aquatic sport is best done through a public private partnership where day to day management may rest with non-town staff. The town should also consider the lack of recreation programming and amenities in a facility of this type.

Additional Considerations:

The earlier discussion regarding leisure aquatics complementing competitive aquatics holds true to the TAC concept. It is Counsilman/Hunsaker & Associates’ opinion that the TAC concept would benefit from outdoor leisure programming, thereby, contributing a positive cash flow to help offset operating costs of the competitive program. By combining the facility being developed privately by TAC with seasonal recreation programming, this will result in a more viable facility. Adding recreation space to the TAC concept will only meet a portion of the needs of Cary; however, we believe this option is worth considering in the Town’s overall aquatic plan.

Such an approach would accomplish two things. First it would allow TAC to be more viable in providing the aquatic programming for the Town of Cary as well as surrounding areas. And, partnering with private enterprise in providing additional uses for community use of a facility would be consistent with town philosophy with other recreation experiences. It would also demonstrate the influences of recreation programming aquatics and its ability to sustain repeat visits and interest from Cary residents at large.

This could be a short-term strategy in developing a community-based solution for aquatic programming in the community. The initial phase would be to complement the aquatics facilities being developed by TAC with recreation programming. In addition to the TAC investment, the Town of Cary would also benefit from developing additional aquatic spaces taking into account new facilities developed since 2000. The ultimate solution may be more of a community solution. This could take the form of several smaller facilities located adjacent to or with another community center or recreation site. As discussed in this report, there are benefits of bundling aquatic and non-aquatic amenities influencing use of all activities.

Section 4 of this report will revisit the community aquatic solution concept originally discussed during the original study.

SECTION 4: ADDITIONAL AMENITIES AND CONCEPTS STUDIED DURING 2003 UPDATE

Separate Diving Well

In conversations with the Town of Cary, it was requested that the consultant develop a separate diving well concept that could be added to Option 1. The separate diving well will have a dimension of 75 feet wide and 60 feet long. This space will accommodate both 3 meter and 1 meter spring board diving and a two center line platform for diving. The diving well will be located in the main natatorium adjacent to the 50 meter pool. Deck dimensions will be similar to the Option 1 concept; however the ceiling height over the diving pool will be 60 feet. This will be an increase over the 30 feet clearance over the 50 meter pool. The adjacent picture is an example of this configuration.

Project Cost: $4,300,000

Square Footage: 15,281

First Year Estimated Attendance:

10,000

Opinion of Financial Performance

Diving Well Concept

Town of Cary

Community Concept

The community concept revisits the discussions of 2000 regarding the methods of meeting aquatic programming needs in the community. This approach considers the potential of developing more than one facility either by the town or other providers. This option would appeal to all four aquatic user groups (competitive, recreation, lesson, fitness, but with a greater emphasis given to the recreational swimmer. Long course training would not be possible with this option. The natatorium includes a 6,170 square foot 25 meter x 25 yard competition pool and a 5,145 square foot leisure/therapy pool. The competition pool includes two 1 meter diving boards and 400 deck level movable bleacher seats. This pool allows for training and competition for both short course lengths: 25 yards and 25 meters.

The leisure pool consists of a current channel, which pushes water through a channel like a miniature river. The current can be used for play or it can be used as an exercise enhancer. Walking against the current provides safe resistance and a cardiovascular workout for exercise seekers. A water vortex, which spins the patron around in a circle with water jets, can entertain children of all ages or be used as a lesson space when turned off. A waterslide provides excitement for older children and adults. An interactive play feature, located near the zero-beach entry (the shallower area of the pool) provides entertainment and activities for the younger children. Two water floatables, essentially foam floats tethered to the bottom of the pool that children can climb on, are included. The splash down area for the slide can be isolated from the pool; thus, the water temperature can be raised and used as a therapy pool. Support spaces include a pool storage room, pool mechanical and chemical room, lifeguard room, aquatic office, wet classroom, custodial, locker rooms and family changing rooms.

In addition to aquatics, this option also incorporates a 3,300 square foot fitness area, a babysitting room, public restrooms, vending area, administrative, lobby, storage and building mechanical spaces.

Project Cost: $10,320,000

Square Footage: 40,284

First Year Estimated Attendance:

Recreation 152,685

Opinion of Financial Performance

Community Aquatic Concept

Town of Cary

Section 5 - Planning for Aquatics in the Town of Cary

The Town of Cary is at the cross roads of making a decision on if and how it will support aquatic programming in the community. There is a clear need for competitive swimming in the region. The school system as well as amateur athletics has a very strong aquatic program made up of dedicated and hard working athletes. At present neither the school system nor amateur athletic organizations have their own aquatic facilities and look to other providers for support. TAC is in the process of developing their own training and limited venue facility with opening planned for in 2006-07. The Raleigh / Durham competitive community is substantial and well organized and residents from the Town of Cary participate in these activities.

Aquatic recreation is the foundation of most community aquatic programs in the United States. Since the mid 80’s family aquatic centers have been created to support community aquatics with something for everyone. The recreation user makes up a majority of the individuals participating in aquatics. Facilities that offer recreation experience tend to attract a larger cross section of the community population. An aquatics facility without a recreation component will miss a major need in the community aquatic experience in the Town of Cary.

The following matrix summarizes each of the concepts discussed in this report and defines that concepts ability to meet the needs of a variety of aquatic activities.

Observations

§ There are not enough aquatic facilities to meet the recreation, competitive, lesson and therapy needs in the Cary community and region.

§ School districts are large users of competitive aquatic facilities, but do not provide aquatic space.

§ The Town of Cary has a long history of working with school districts to meet facility needs for residents and students.

§ The Town of Cary is willing to support aquatics and has earmarked $5,000,000 for development over the next three years.

§ Wake County has been asked to consider matching the Town of Cary’s commitment to facilitate the development of a venue (State Capital Sports Center-type) concept. As of this writing, no formal response has been received; however, there have been commitments to make a decision by the end of 2003.

§ There is no fiscally sustainable plan identified that could be implemented in the next several years to create the SCSC concept without Wake County’s participation.

§ Neither the TAC or the SCSC facilities would meet all the aquatic needs in the Town of Cary or region.

Aquatic Options For The Town of Cary

Venue Facility

1. Provide a deadline for when Wake County must make a decision to join the Town of Cary in the development of Venue Aquatic Facility for the Wake County region. Solid commitment from Wake County would be required regarding their funding level in implementing this option.

Advantages:

· Economic growth resources for region

· Complement the vision of Cary as an amateur athletic center

· Make a significant contribution of meeting the aquatic needs in the region

· Potential of meeting many of the SCSC, TAC, School District, and Town of Cary aquatic needs.

Disadvantages

· Defining a workable management structure including all constituencies

· Bringing the facility online in a timely manner

· Without fitness and ice components (or other revenue producing elements) subsidized operation is likely

If the Wake County participation does not occur, consider the role the Town of Cary wishes to participate in developing aquatic facilities in the community. The Town may choose to take a leadership role in supplying facilities or a support role.

Leadership Role

2. Implement the options developed in the 2000 study. This could include an indoor 50 meter pool, an indoor leisure pool and/or an outdoor leisure pool. The recently developed option of a standalone diving well could also be included with this concept. Depending upon the size and combinations of amenities, the capital requirements for these investments could range between $17,000,000 and $24,000,000.

Advantages:

· Provides aquatic facilities to meet many of the Town of Cary needs

· Leadership role in development and management of facility. (Increase stewardship role for public funds)

· Opportunity to pay operating costs with user fees

Disadvantage:

· Commitment for Town of Cary aquatic programming all in one facility

Support Role

3. Contribute funding toward the TAC project to provide capacity and amenities to meet some of the seasonal aquatic needs for the Town of Cary residents and develop a community oriented aquatic solution in the near future as a part of park development.

Advantages:

· Capital investment spread out over several years

· Potential for multiple aquatic facilities in community

Disadvantages:

· Will not provide a public long course pool in the Cary market

· Unlikely for the additional investment for a venue concept to be developed in the near future

· Aquatic programming will still be at capacity without further development

APPPENDIX A: SITE ANALYSIS

Since the final 2000 report, additional study and consideration has occurred with regard to potential sites in the Town of Cary to host the aquatic center. The following table provides general guidelines regarding concept requirements for site selection. In summary, to accommodate the fully developed option combining Options 1, 2, and 3 in the 2000 study, a site providing approximately 16 acres would be preferred. Option 4 (the Venue Concept) with Options 2 and 3 would prefer a site of 35 acres.

Site Requirements

The current investigation by the Town, SCSC, TAC and Counsilman/Hunsaker and Associates has narrowed to the consideration of three primary sites.

Weston Park site: 25.67 acres at the intersection of Cary Parkway and Sheldon Drive. This site is currently owned by the Weston Group. An opportunity may exist to secure the property for public use with consideration for development. This site is capable of supporting all concepts discussed.

Cary Town Center site: 21.5 acres on the east side of Cary Town Blvd., immediately off the I-40 exits. TAC’s purchase of the land is scheduled for October 23, 2003. TAC is moving forward with the development process for a stand-alone concept including design and fund raising.

North Cary Park site: XX.X acres at the intersection of Cary Parkway and Norwell Boulevard. This site is current town property and features a town soccer field, basketball courts, sand volleyball courts, playground, picnic shelter, picnic tables, restrooms, climbing boulders and trails. The park master plan mentions the possible development of a community center type facility at this location.

Counsilman / Hunsaker & Associates in association with town park planners developed a model for evaluating the sites for the different options being considered. The following table outlines the matrix developed for concept and site preferences.

Site analysis

PHASING

Site selection will also depend on the potential for future development. Phasing is one of a sequence of distinct apparent forms or a distinct stage of development. The benefits of phasing the aquatic center project allows a holistic vision to be created initially and then implemented over a number of years in meeting the aquatic needs of the community and matching the financial resources. There are a variety of phasing options. These could include phasing several facilities throughout the development of aquatic programming in the Town of Cary to meet needs over a number of years. It could create a base facility that additional uses could be attached to and developed over a series of years. Examples could include a TAC concept of aquatics only, thereby, supporting future phasing of indoor and outdoor leisure as well as fitness and other components. It could also be the phasing of the Town of Cary concept developed in the 2000 study where an aquatic center is created with the forethought and understanding of future additions to include fitness and ice.

The key to a successful phasing strategy is maximizing the return on capital dollars expended for future use. The industry has seen significant dollars invested for future development that has never occurred. This should be avoided. A strategy that maximizes capital dollars is a decision-making philosophy and design principle of not preventing future development with decisions made today. It is unlikely the design solutions and assumptions regarding future development made today will actually be implemented in years to come. New technology, new information and new uses influence change. Issues such as locating the base facility on a site, thereby, complementing future expansion, and providing initial utility accessibility and traffic pattern considerations also work well in master planning the entire use of the site and facility.

There are inefficiencies in phasing as well. The economies of scale allow larger projects bid together to be more efficient as far as constructing these types of facilities. Constructing two smaller projects years apart, as opposed to one larger project at one time, can have a distinct cost penalty. The market also reacts to a phase facility. The first impression that this facility will make will define its position in the market. While it is possible to change this impression after additional phases, this will come with an investment in marketing and negative impacts of the existing operation during future phase construction.