LLC specializes in conducting feasibility studies for a variety
leisure attractions. An independent expert typically prepares
this planning report, which is generally required by potential lenders
is the first step of the development process and provides
critical guidance for design, construction, and operations. It
evaluates potential market support and forecasts usage.
It determines potential financial performance
warranted development costs. It provides
detailed physical planning parameters. It recommends the attraction mix and includes images for use
in initial presentations.
The following paragraphs outline the major tasks typically involved in
conducting a feasibility study.
Task 1: Orientation Meeting
would be held to discuss the project in more detail and to see the
prospective site if one has been chosen.
Site and Area Evaluation
The site and local area would be evaluated to determine its effect on
potential usage. Factors include:
limitations or constraints
complementary and competitive facilities
Concept Description and Industry Trends
The type of leisure business being studied would be described and
industry trends discussed. Readers of the feasibility study may be
unfamiliar with the concept and this section of the report provides an
introduction before specific project-related issues are examined.
The market areas would be defined based on distance from the site.
Demographic characteristics for the resident market would be analyzed
to provide an indication of support. This would typically include:
tourist market would be defined and analyzed. Based on available
information, this analysis would likely examine:
Evaluation of Comparable Facilities
Selected comparable facilities would be examined. Available reported
information would be provided on individual characteristics, including:
Potential annual usage for the proposed facility would be estimated for
the first five years of operation based on a number of factors,
of the available markets
penetration rates achieved by comparable facilities
and possible competition
Task 7: Physical Planning Guidance
LBA would make physical planning recommendations needed to service
expected market demand. The specific parameters vary from one leisure
attraction to another. For larger projects, LBA can also provide master
planning and schematic design services. Physical planning
- Estimated design capacity
types of activities
activity mix and sizing
visitor service space
- Recommended parking sizing
land area needed
The financial analysis for the proposed facility would be based on the
selected concept and potential usage. Financial estimates for
first five years of operations would include:
for equity investors
Warranted and Typical Development Cost
LBA would determine the warranted development cost or investment based
on potential profitability. This is the recommended maximum amount that
should be spent to effectively develop the project and return a
reasonable return-on-investment to equity investors.
This warranted amount would be compared to the actual development costs
for other comparable facilities. Relative size would be taken into
consideration. This comparison would provide guidance as to whether the
proposed project could be developed for its warranted investment. If it
can be, the project is considered financially feasible.
Planning & Schematic Design Services
As part of an expanded
planning effort, LBA can also provide conceptual
design services. Click
here for details.
The types of leisure projects that LBA serves include the following, listed alphabetically:
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Business Advisors LLC and its licensors.