The Illinois Finance Authority sold tax exempt bonds for the Leaf’s Hockey Club in West Dundee in 2007.

Almost $20 million worth “with no equity at risk,” reports Crane’s Chicago Business.

In this case, the bondholders are left holding the bag and not the taxpayers.

But what if McHenry County College had sold $25 million in bonds to build a minor league baseball stadium?

You and I would have had to pay them off, the same way that Lakewood residents ended up paying off 53 percent of the cost of the golf course that village trustees assured me would not “cost me a dime.”

It is my understanding that the $45 million health club, etc., addition to McHenry County College will have no monetary investment from the health club.

No one needs to guess who will end up paying back the borrowed money, if the projections–made by a health club operator–don’t pan out.

The complex in Lake Barrington.

There’s a mention in the article of the sports complex in Lake Barrington, too:

“‘The one non-ice facility, the Lake Barrington Field House—”the largest multi-sport and fitness complex in the Midwest,’ according to its website—also is in foreclosure and has been taken over by a receiver after defaulting on $28.5 million in bonds sold in 2007, according to Wells Fargo Bank N.A., a trustee for bondholders.”

Ken Koehler

Erin Smith

Now I’ve gotten three pieces of political mail.

The only contests in my part of Lakewood and Crystal Lake are for President and McHenry County Board.

I received

• an introduction-fund raising pitch from our Congressman-to-be Peter Roskam,
• a piece from the Romney delegates (which featured State Treasurer Dan Rutherford prominently),
• a post card from County Board candidate Tom Wilbeck and, on the very same day,
• a letter from Lakewood’s Village President Erin Smith endorsing Ken Koehler.

In Smith’s letter, she says she has “worked closely with Koehler on a variety of issues that affect our quality of life in Lakewood.”

There are no specifics, but there could be, considering the cooperation at the County Board level in the granting of bonding authority to the developers of the McHenry County Sports Complex.

Interestingly, Smith refers to Koehler’s “detractors,” saying “his record of achievement over time has earned him widespread support across the collar county area.”

A copy of Koehler’s palm card, which you can see here, was enclosed.

The main building of the proposed SportsPlex.

Thought it was time to check up on the progress of the McHenry County SportsPlex planned for Lakewood.

So, I called chief honcho Lou Tenore.

He told me his group is no long seeking government money or financing from the EB-5 “buy a visa” (my words, not his) program.

Nevertheless foreign investors are being courted.

Tenore told me that a firm the developers have engaged to raise money is “actively working on it.”

The end of July the Lakewood Village Board voted 4-3 to extend its deal with the SportsPlex for six months.

Lakewood Village President Erin Smith sent out the following letter to her constituents in the fall village newsletter.

FROM THE PRESIDENT

As we bid a fond farewell to summer, it’s appropriate to review what was accomplished during the past three (3) months and what we can look forward to in the coming months.

As is typical in the Midwest, summer was filled with construction projects and other work on infrastructure.

The new Lakewood Bike Path

Notable among these were

• the construction of bicycle lanes along Huntley Road, from West Beach to Chicago Avenue,
• the repaving of RedTail Drive and Loch Glen Drive,
• the construction of our new water tower on Turnberry Trail and
• work on the East Side Storm Sewer.

Huntley Road Bike Path

This project has been a long standing priority of our Comprehensive Plan and Parks and Recreation Committee. Given its cost, we were able to proceed with the project because staff secured a federal grant that paid for eighty percent (80%) of the construction. It has been a difficult and lengthy process for the residents impacted by the construction, and we give our sincere thanks and appreciation for their patience throughout this process.

RedTail and Loch Glen Drive

Both residents and golfers are pleased to experience the repaving of RedTail Drive. This portion of our roadway program was paid for with a $200,000 grant secured for the Village of Lakewood by State Representative Michael Tryon, and we thank him for his efforts on our behalf. With revenues from our General Fund, we were also able to repave Loch Glen Drive and make several roadway repairs throughout the community. We receive a lot of complaints about the gravel that is “kicked up” at busy intersections, and it is a maintenance problem for our residents and Public Works crew. Therefore, we took advantage of this year’s roadway program to install cobblestone returns at the intersection of RedTail Drive/Loch Glen Drive/Bardwell Lane. Please take a look and let us know what you think as we contemplate whether to continue this program at other key intersections.

Water Tower

We have also nearly completed the construction of our new water tower on Turnberry Trail, and it is expected to go online shortly, at which time the old water tower will be removed. In terms of branding our community, a strategic decision was made by the Board of Trustees to position the writing so that it is visible as you approach the Village of Lakewood from the north and south. The lettering is most visible from Turnberry and RedTail golf courses, where visitors will see that they are in the Village of Lakewood.

East Side Storm Water

In our ongoing efforts to address the issue of storm water on the East Side of the Village, our Public Works Department recently completed a project to clean and televise one-half of the Broadway storm sewer outfall pipe. This project was completed at a cost of approximately $17,150 and verified our concern that substantial repair and replacement of the storm sewer will be needed. We will include revenues in the budget for the next fiscal year that will allow us to complete the second half of the cleaning/televising project in order to assess the full extent of the work needed and begin to develop a plan for funding the repairs.

Other Summer News

In addition to our infrastructure improvements, we had another safe recreational season on Crystal Lake, and we extend our thanks to the Police Department for its consistently strong enforcement in this area. I am also very pleased to report that RedTail Golf Course has had a strong year to date. Revenues are greater than last year, and the volunteer program that was instituted for starters and rangers has helped to decrease expenditures. The golf season is not yet over, so take advantage of some great fall rates to help insure that RedTail Golf Course has a great year!

Economic Development Update

Looking forward, we continue to place economic development as our number one priority. Toward this end, we have hired Dobbe Marketing & PR to help our community develop a strong and consistent message to attract businesses. A Focus Group was held with local businesses and residents in July, and the results of that meeting will be shared with the Board of Trustees at the meeting on September 13. Primary topics will include:

How to best take advantage of the contacts of our residents to attract the types of businesses identified as priorities. You are our best resource!

How to partner with the developer of Lakewood Commons to fill the center, including the remaining vacant parcel.

Whether the current site of Village Hall can or should have an alternative use, such as a restaurant.

Whether it is viable to develop a town center and, if so, where?

I encourage you to participate in these discussions and provide your feedback to any of our elected officials.

Also in July, the Board approved a 6-month extension of the preliminary agreement with the developer of the sports complex. Financing has not yet been secured, but some indication of progress was presented.

Some of those attending the July SportsPlex board meeting at which Village President Erin Smith broke a 3-3 tie vote in favor of granting six more months for developers (seen on the right side of the audience in the front row) to obtain financing.

Our Board was split on the decision to extend the agreement.

I voted to extend the agreement because other surrounding communities have automatically extended existing agreements to support businesses in this difficult economy and I believe we need to show an equal level of support.

Input from our Focus Group, which reinforced that the sports complex is consistent with our vision, also influenced my vote.

Through the first three months of our current fiscal year, I am also pleased to report that our sales tax revenues have increased by nearly $6,400 over this same time period last year. This increase is most directly attributable to the four (4) new businesses that were annexed last summer, and we believe that we will continue to experience increased growth in revenues from these businesses.

In fact, The Gardens of Woodstock recently become a member of the McHenry County Convention and Visitors Bureau, and motor coach tours are already making regular stops for lunch and shopping. As we seek new businesses, our most effective testimonials are our existing businesses, and it benefits all of us to support them.

New Entryway Signs

In the upcoming months, you will also see three (3) new entryway signs installed as one of the recommendations from the Parks and Recreation Committee, which is interested in establishing a Garden Club to help landscape these and other public areas in the community.

Could Lakewood residents save money by having the village go shopping for electricity?

We are also exploring the possibility of working with neighboring communities to bid for the purchase of electricity for our residents. Harvard and Fox River Grove recently completed this process and had great success with overall savings for their residents of between ten (10) to fifteen (15) percent on the electric bills.

Such a process requires the passage of a referendum by our residents, and we have set a tentative goal of placing such a referendum on the March 2012 ballot. Any resident who did not want to participate in the program could simply “opt out” and continue to purchase their electricity from Commonwealth Edison. Again, we would be interested in hearing your thoughts about the program. Our goal would simply be to save our residents money in these difficult economic times.

In addition to soliciting your input on a number of issues, I am always available for a Pizza with the President and welcome your invitation.

Sincerely,

Erin

Continued from yesterday.

The 2nd meeting in July was the fun one. It made the local papers for a few days.

The Sportsplex as it is referred to by me.

Lou Tenor thanks village officials after winning a six-month delay to find financing on a 4-3 vote. Ken Santowski can be seen in the background.

While there was nothing to “redo” about the original plans the developer wanted us to extend the annexation and development incentive agreements for an additional 6 months so they could secure funding to get this megalith off the ground. Megalith is the wrong word to use but I have always wanted to use it in a sentence.

The “chaps” as I will call them, explained to the board and the audience about the stagnant economy, unsold bonds and enormous hurdles that have been up against.

But they had a new plan to secure financing. They have been working on securing financing through several options.

They have been working with another bonding company, who I shall not name here  [identity here], who had investors that were potentially interested in the project.

Ken Santowski questioing Lou Tenor about SprotsPlex financing.

Each of us on the board had the opportunity (as well as the audience) to ask questions.

My only question to them that night was basically

“Where is the money?”

If everyone on their “team” was sure this project was going to be successful then why did they come to the village with an empty checkbook?

Surely someone had some money to invest?

Let me set the record straight though; yes, in the beginning I voted for the Sportsplex.

I wanted to give them every tool possible to make this thing work.

I thought they were going too big, but figured they could downsize or do things in phases.

Yes, they would have had to make special trips to our village and come before the board for those changes, but hey they could have stopped for dinner at Lou’s and then gotten their dogs washed.

Since they came to me (and the others sitting next to me) with no money, no contracts, no investors I had no choice to vote NO.

Well, as you read, it passed anyway.

Newly-elected Jeff Iden, one of the three who voted "No" on the SportsPlex extension.

Newly-elected Trustee Gary Sexson II, one of the three "No" votes.

Oh, by the way, Trustee’s Iden and Sexson are not my henchmen.

Jeff makes straps for holding things and Gary is an orthodontist. I think Gary buys the straps for the dental chairs from Jeff, but that is just a rumor I started.

There is a difference in each of us!

I would love to see SOMETHING happen at that intersection that says “Lakewood” in the future; maybe tomorrow.

Crowd at the Lakewood Village Board meeting on the SportsPlex that didn't stick around to hear the discussion on the spillway.

The room cleared out quickly after the 4-3 vote in favor of the extension, so not too many people stuck around for the exciting report on the spillway repairs.

There was talk of allocating some additional funds to install preventive wall structures but it was deemed not necessary at this point in the project.

We wrapped up the meeting and headed for the hills.

Ken Santowwki

More tomorrow.

A drawing of the proposed entrance to the SportsPlex on the other side of where Route 176 now enters Route 47.

An email from the neighborhood folks fighting the McHenry County SportsPlex asks for opponents to attend the Tuesday Lakewood Village Board meeting that starts at 7 PM.

CALL TO ARMS! We’re not done

YET!

According to today’s Northwest Herald, MC Sportsplex-specifically Lou Tenore, is asking Lakewood for an extension on the annexation agreement ““The extra time is needed to tie up all the loose ends.” Please read the article for more information.

Remember “The agreement calls for Lakewood to contribute $5 million in fee waivers and grant assistance to the project. ”

Our sources have revealed that sale contracts for the properties along Pleasant Valley Road and Hamilton Road were NOT extended thus they have already expired-that’s not to say that they can’t be re-written.

Your presence is requested at the Lakewood Board Meeting on Tuesday when Lou Tenore will request this extension. The Lakewood Village Board is to consider the request at a meeting scheduled for 7 p.m. this Tuesday 7/26 at RedTail Golf Club, 7900 RedTail Drive, Lakewood.

Some of our key people will be there to oppose this request and present facts on the inaccurate/incomplete “feasibility study” (again, done by Terri Gauoette, who was declared only a “turf specialist” when confronted about his Wisconsin indictment for fraud). A copy of analysis of this feasibility study is attached. Just to refresh your memory, our analysis was done by Joseph Daleiden, former Director of Long Term Planning for Ameritech and responsible for reviewing acquisitions and major capital investments and hence, had much experience in assessing such proposals. A commentary will also be made on Lou Tenore’s financial situation.

PLEASE RSVP TO THIS EMAIL IF YOU PLAN ON ATTENDING. A CONTINUED SHOW OF OPPOSITION STRENGTH IS ESSENTIAL.

Hope to see you there!

Some may remember that the night the SportsPlex was rushed through the village board last summer. It was said to be essential to pass the ordinances that night. It was not a good night for the democratic process in Lakewood.

Subsequently, one of the village board members who voted for the package was replaced during the spring elections. One of the District 5 McHenry County Board members–a Democrat–lost his re-election attempt. The other person on the County Board who voted for Federal Stimulus Bonding authority was outvoted by the candidate who knocked off the Democrat.

The agenda item appears below:

Motion to Extension through January 26, 2012, of

• Ordinance No. 2010-65) (An Ordinance Authorizing Execution of an Annexation and Development Incentive Agreement Between the Village of Lakewood, Napier Partners, LP, Patricia M. LeClair Revocable Trust, Donald Swanson and McHenry County Sportsplex, LLC), Ordinance No. 2010-66 (An Ordinance Annexing the Napier and LeClair Properties Commonly Known as 12317 and 12512 Pleasant Valley Road to the Village of Lakewood),
• Ordinance No. 2010-67 (An Ordinance Zoning 12317 and 12512 Pleasant Valley Road as AG Agriculture District and 11717 Pleasant Valley Road as B-2 General Business District (Napier Partners, LP, Patricia M. LeClair Revocable Trust and Donald Swanson Properities),
• Ordinance No. 2010-68 (An Ordinance Issuing Special Use Permits for Planned Developments for Property Commonly known as 11717, 12317, and 12512 Pleasant Valley Road (Donald Swanson, Napier Partners, LP, and Patricia M. LeClair Revocable Trust Properties) and
• Ordinance No 201069 (An Ordinance Approving the Preliminary Plan for Napier Patrners, LP, Patricia M. LeClair Revocable Trust and Donald Swanson Properties)

One of the things I would like made clear in the contract is that the SportsPlex will be forced to pay real estate taxes. The consultant hired had little clue regarding the property taxes that could be expected and, since then, I have heard that the developers may try to organize as a not-for-profit organization, which would potentially allow the SportsPlex to pay no real estate taxes.

As a Lakewood resident, I want a clause that would guarantee payments in lieu of property taxes, should the development manage to gain a real estate tax exemption.

Blake Hobson explains the role of the Upper Illinois River Valley Development Authority to Crystal Lake Kiwanis in April, 2009.

First the December 31st deadline for the Federal Stimulus Bond authority ran out.

Now, the backup plan deadline has expired.

I asked Blake Hobson, McHenry County’s representative to the Upper Illinois River Valley Development Authority about the status of Lakewood’s McHenry County SportsPlex.

Here’s the reply:

The approval from UIRVDA was good for financing on the ARA and expired 12/31.

It is my understanding that to utilize any of URIVDAs bonding authority will require a new application and appearance before the UIRVDA board.

That’s not to say that the SportsPlex backers could not start over with the regional authority, but the first attempt is dead.

McHenry County Blog ran a critical analysis of the McHenry County SportPlex Friday, Saturday and Sunday:

McHenry County SportsPlex Analysis – Part 1 – Demographics

McHenry County SportsPlex Analysis – Part 2 – Comparisons with Other Sport Complexes

McHenry County SportsPlex Analaysis – Part 3 – Financials

Former Illinois Bell and Ameritech Director of Corporate Planning Joseph L. Daleiden who also served as Economic Advisor to the  Executive Office of the White House, Office of Management and the Budget during the Carter Administration, prepared the following report about the viability of Lakewood’s proposed SportsPlex. He did it after examining the SportsPlex’ application for bonding underwriting to the Upper Illinois River Valley Development Authority.

In his preface to the report, he wrote,

In my position with Ameritech I reviewed plans for acquisitions and major business ventures. Although quite often proposal estimates appeared exaggerated and few won my support, I never saw a proposal more half-baked and poorly prepared than the Lakewood Sports complex.

Part – 3 Financials

A rendering of the main building of the proposed McHenry County SportsPlex

1. The estimates in the report are inconsistent and the tables contradict the text.

For example, page 5 states “The goal is activation by maximizing the more than 800,000 visits to the center per year by spectator (sic) and 300,000 plus athletic visits.”

However, by adding up the estimated visits in the accompanying tables (upon which the revenue estimates are based, the athletic visits amount to 777,100 and spectators account for only 432,000 visits. Moreover, in the section on revenue from sponsorships, the study assumes 1.5 million spectators annually.

Layout of ballfields at the SportsPlex planned for Lakewood.

2. Recall from the demographic information, the actual market within ten miles is a population of only 160,000 compared to the average population within the ten miles of the sports centers they reviewed was 530,000 Even including all of McHenry County the population is only about 350,000.

3. What is the basis for the estimates of visits? There are no studies or surveys to support the data provided. They appear to be pulled out of thin air.

4. Less than ½ the estimated revenues come from fees for athletes and spectators. Over half (56%) of the revenues are expected to come from retail, concessions, restaurants and “admissions.” But the admission revenue is already included in the spectator fees, hence it is counted twice

5. The detailed assumptions provided for outdoor sports amounts to $3.7 million annually, only 21% of the estimated $17 million revenue for the first full year of operation. Although half the total athletic and spectator visits are due to soccer – 756,000 (69%) of the 1.1 million visit estimate – soccer revenues amount to only about $1 million in revenue.

6. The alternative sports including BMX, Moto Cross, Obstacle Course and Skateboard account for another $1.4 million of outdoor revenue. Not only does this estimate not take into consideration that the huge Elgin complex about ten miles away already attracts 50,000 BMX riders each year for its tournaments thus taking this market, but it is questionable that such facilities may not be included in the Sportsplex construction estimates.

7. The indoor sports revenue is estimated at $3.3 million but no breakdown of the sports generating this revenue is provided. Another number pulled out of thin air?

Conclusion

SportsPlex plans for road improvements on Rt. 176, Rt. 14 and Pleasant Valley Road. Click to enlarge.

The estimates for the Sportsplex are

• inconsistent,
• riddled with errors, and
• wildly optimistic with no empirical support.

The proposal seems so unprofessional and naïve that I can’t imagine any knowledgeable financial analyst giving this proposal a second thought.

= = = = =
Part 1 covers demographics.
Part 2 compares the proposal with other SportsPlexes.

Former Illinois Bell and Ameritech Director of Corporate Planning Joseph L. Daleiden, who also served as Economic Advisor to the Executive Office of the White House, Office of Management and the Budget during the Carter Administration, prepared the following report about the viability of Lakewood’s proposed SportsPlex after examining the group’s application for bonding approval by the Upper Illinois River Valley Development Authority.

In today’s analysis, Daleiden looks at how well other sports complexes have done, pointing out,

“There are no data to suggest that any of the sports complexes are making a profit!!!”

Part 2 – Comparisons with other Sport Complexes

In the presentation to the Lakewood Village Board, the promoters of the SportsPlex showed this image of how night lighting would appear.

There is little information on the relevant markets for other sports parks such as the population within the 10 and 20 mile areas, the income distribution of the population within the area, and the actual annual revenues, costs and profitability.

Moreover, in at least some locations with favorable weather year round, the entire number of playing fields might be available for most or all of the year.

Hence, the comparisons are of no value.

Preseentatio of the reasons "Opportunites Exist."

A review of several other sport parks facilities in the Chicago area reveals that although they are located in markets of far greater population densities, the only one that appears to be running in the black is located in Barrington, one of the wealthiest communities in the nation.

The comparisons with other sports complexes supplied in the study are useless since virtually no significant financial data are provided.  Profitability data is mentioned for only three operations.

• Tuma  in Marion, Iowa is a 110 acre operation that generated total revenue of $33,000 with expenses of $120,000!


A drawing of the proposed SportsPlex restaurant.

• Elgin is a huge 407 acre facility with revenue from operations of only $380,000!
• The 600 acre National Sports Center in Blaine, Minn. generates approximately $5 million dollars in revenue.
• The study states that 163 acre South Germantown Recreational Park in Boyds Maryland generally operates at a loss.

There are no data to suggest that any of the sports complexes are making a profit!!! (Emphasis in the original.)

As for the estimates of general revenue impact on the area surrounding the sports, complexes, if they are anything like most estimates provided by Chamber of Commerce’s, they are not wildly optimistic with no hard data to support them.

= = = = =
The concluding section will be published Sunday.  Part 1 is here. Here is Part 3 about finanicals.

Former Illinois Bell and Ameritech Director of Corporate Planning Joseph L. Daleiden, who also served as Economic Advisor to the Executive Office of the White House, Office of Management and the Budget during the Carter Administration, prepared a report about the viability of Lakewood’s proposed SportsPlex as presented in an application to the Upper Illinois River Valley Development Authority. It will run in three parts.

In his cover message, Daleiden, wrote,

“…my critique of the proposed Lakewood Sportsplex based on their feasibility study submitted to the Upper Illinois River Valley Development Authority (UIRVDA) .

“As you can see the proposal was, if not a scam, an amateurish, ill-conceived plan filled with errors, unverified assumptions and seems devoid of any substantive research.

“That the request for $18 million federal stimulus money was approved by both the McHenry County Board and then UIRVDA is classic example why, as a rule, governmental bodies should not subsidize business ventures. (Some day I’ll write about my trip to Cleveland to visit a sweet potato chip entrepreneur as the Budget Bureau guy with the Small Business Administration budget. I reached the same conclusion as Mr. Daleiden mentions above. Government officials have little clue what businesses will succeed and which will fail.)

“They simply are unable to do the adequate due diligence that a bank or other financial lenders can do (at least theoretically) on a request for a loan or the issuance of bonds.”

Critique of the Crystal Lake Youth Sports Complex Feasibility Analysis submitted to the Upper Illinois River Valley Development Authority

Part 1 -  Demographics

1. Sportsplex estimates are miscalculated and misleading

McHenry County Board audience members who opposed the granting of Federal Stimulus bonding authoity to the SportsPlex were asked to raise their hands before the vote. Click to enlarge.

Page 2 of the report estimates “the total youth population of McHenry County between ages of four and 18 is 98,217″ and that roughly 50% are involved in at least one sport.  However, on page 3 it states McHenry County has “45,217 youth aged children of which 22,133 are involved in athletics in McHenry County”  Is this obvious contradiction representative of sloppy analysis?

The report then refers to the “second layer of population to use the facility is men and woman between ages of 25-45″ (for some reason ignoring those between 19 and 25) as 192,468, They go on to state, “This population group as evidenced by US census information has 36%  regular competitive athletics each week. This allows for another 55,000 who will use this facility.”

This statement certainly does not reflect census data and is 50% overstated. The correct census data calculated from The US Census Bureau 2005-2009 American Community Survey 5 – Year Estimates for Illinois  (S0101)  – including the 19-25 age group – is 132,207, still about 60,000 less than the Sportsplex estimate.

Signs opposed to the SportsPlex are throughout the neighborhood.

Even worse, these estimates are completely misleading for the following reasons:

1. McHenry County as a whole is not the relevant market. On page 15 the report states that “leagues are targeted primarily towards a constituency within a 20 miles areas with the majority coming from the local (ten miles) population.”  Moreover, the 20 mile circle would significantly overlap with the Elgin sports complex (which is already losing money despite a far denser population area.
2. 

   The palm card for former McHenry County Board member John Jung is hanging on the mailbox of a neighbor of the SportsPlex. Jung made a comeback, running first. He defeated Lake in the Hills Democrat James Kennedy and ran ahead of his running mate Tina Hill of Woodstock. Both voted to approve the SportsPlex bonds.

   The report assumes that all persons involved in sports are part of the market, whereas the census estimates of the percent of persons involved in sports includes all sports including track and field, football, swimming, hockey, tennis, golf, bowling, weightlifting, wrestling, bicycling, even simply walking for exercise and fishing. The proper estimates of potential persons in the Sportsplex would include only those persons involved in sports offered by the Sportsplex as calculated below.

3. The vast majority of school-aged athletes use the facilities supplied by schools and  park districts. The same is true of adults who have access to park district softball and soccer fields throughout McHenry County. Why would people travel substantial distances and pay high fees to participate in sports with low cost public facilities nearby?

2. A more realistic estimate of the relevant market would be calculated as follows:

1. Total population in McHenry County within ten miles of facility              160,000
   (To this could be added some portion of population within
   20 miles taking into consideration the large overlap with the
   Elgin sports facility but should exclude the number of seniors
   in Sun City)
2. Percent of population in the 10 to 19 age group
   (including ages 4-9 is absurd)                                                               27%
3. Total of 10-19 age group    (1 x 2)                                                                 43,200
4. The Census Bureau’s estimates that over 90% of children are involved
   in some sport. But the number involved in baseball, softball
   and soccer is about 40%                                                                         40%
5. Total age 10 to 19  (3 x 4)                                                                                17,200
6. Percent of population  in 20-40 age group                                               36.5%
7. Number in 20-40 age group   (1 x 6)                                                           58,400
8. Percent in 20-40 age group playing baseball, softball or soccer                                       6%
9. Total 20- 40 age group playing baseball, softball and soccer (7 x 8)                3,500
10. Total market  (5 + 9)                                                                                       20,700
11. Per cent that have access to school or park facilities during                      90 -100% ? Percent that are willing to pay $1500 to $3000 per year to use                         NA
12. Percent that are willing to pay $1500 to $3000 per year to use facilities instead of existing school and park facilities
    for far less cost                                                                                                                NA

Conclusion: even if we included some portion of those living in the 10-20 mile radius, the maximum size of the market for the relevant sports is perhaps 30,000 children and adults, virtually all of which have access to school and local Park District facilities, including dozens of soccer and baseball fields which are at present under utilized. Although in winter an indoor park offers a unique advantage, it is severely limited by the number of games that can be played on one field.

= = = = =

Parts 2 Saturday and Part 3 Sunday.