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HORSE PARK ECONOMICS JUNE 20, 2007 MARYLAND HORSE PARK

HORSE PARK ECONOMICS JUNE 20, 2007 MARYLAND HORSE PARK. Rob Burk Executive Director Maryland Horse Industry Board. REASONS FOR ESTABLISHMENT OF A HORSE PARK. Retaining regional championships, and businesses Currently 2 major MD State championships are held out of State

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HORSE PARK ECONOMICS JUNE 20, 2007 MARYLAND HORSE PARK

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  1. HORSE PARK ECONOMICS JUNE 20, 2007MARYLAND HORSE PARK Rob Burk Executive Director Maryland Horse Industry Board

  2. REASONS FOR ESTABLISHMENTOF A HORSE PARK • Retaining regional championships, and businesses • Currently 2 major MD State championships are held out of State • Economic impact for regional businesses / attracting new businesses • Funding mechanism for regional public horse facilities • Promotion of existing industry • Open space preservation • Sport / Activity development • Historic preservation • Increased market for agricultural commodities

  3. ECONOMICS OF A HORSE PARK • Economics 101 • Economic / Tax Impact = the net change in an economy resulting from an event, business, industry, etc. • Capital Costs = the total cost needed to bring a project to a commercially operable status, ie cost of construction. • Operational Costs = recurring expenses which are related to the operation of a business.

  4. ECONOMICS OF A HORSE PARK • Economic Impact • Hotels, Food, Entertainment, Transportation, etc. • $122 Million a year in economic impact • Tax Impact • Sales, Admissions and Amusement, Hotel, etc. • $9 Million a year in tax revenue • These are the funds leveraged in public projects to fund capital costs / operational overrun.

  5. ECONOMICS OF A HORSE PARK • Capital Cost • $114 Million Total • Payments with interest = $7 Million a year for 30 years • Tax Impact – Capital Cost = + $2 Million a year • Operational Cost • Operational Expenditure = - $6 to - $7 Million a year • On Site Revenue = $6 Million a year • Operational Cost = $0 to - $ 1 Million a year • Add Remaining Tax Impact = + $1 Million to $2 Million a year

  6. QUESTIONS • Rob Burk info@marylandhorseindustry.org 410-841-5861 • Information: • www.marylandhorsepark.com • www.marylandhorseindustry.org • www.marylandhorseforum.com • www.mdhorsecouncil.org

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