business case mcadam park regional motorsports

BUSINESS CASE

MCADAM PARK REGIONAL MOTORSPORTS & RECREATIONAL COMPLEX

FINAL REPORT COMMERCIAL IN CONFIDENCE Prepared by Stratcorp Consulting Pty Ltd Level 1, 38 Mills Street Albert Park Vic 3206 T: (03) 9521 6033 F: (03) 9521 6533 [email protected] www.stratcorp.com.au © Stratcorp Consulting Pty Ltd, 2009

Business Case McAdam Park Regional Motorsports & Recreational Complex Sporting Motor Cycle Club

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DISCLAIMER OF LIABILITY

This report is a confidential document that has been prepared by Stratcorp Consulting (“Startcorp”) for the Sporting Motorcycle Club. Stratcorp has undertaken this analysis in its capacity as advisor in accordance with the scope and subject to the terms associated with Stratcorp’s letter of offer. Readers should note that this report may include implicit projections about the future which by their nature are uncertain and cannot be relied upon, as they are dependent on potential events which have not yet occurred. For these reasons and others, property development is inherently risky and frequently things do not turn out as planned. In preparing this report, Stratcorp has relied upon information supplied by third parties, Sporting Motorcycle Club and their advisers, along with publicly available information. Stratcorp has not attempted to verify the accuracy or completeness of the information provided. Neither Stratcorp nor its officers and employees undertakes any responsibility arising in any way whatsoever to any person or organization, except the Sporting Motorcycle Club, in respect of information set out in this report, including any errors or omissions therein through negligence or otherwise however caused.


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TABLE OF CONTENTS 1. EXECUTIVE SUMMARY...................................................................................... 1 2. INTRODUCTION ............................................................................................... 3

2.1. Background ................................................................................................................................ 3 2.2. Barwon Recreational Motorcycling Council................................................................................ 5 2.3. Study Purpose and Objectives .................................................................................................... 5 2.4. Acknowledgements .................................................................................................................... 6

3. SITUATIONAL ANALYSIS .................................................................................. 7 3.1. Sporting Motorcycle Club........................................................................................................... 7 3.2. Site Analysis ............................................................................................................................... 7

3.2.1. Ownership of McAdam Park ............................................................................................... 8 3.3. Current Users of McAdam Park................................................................................................... 9 3.4. Existing Documentation.............................................................................................................. 9

3.4.1. Social Benefits ..................................................................................................................... 9 3.4.2. Regional Economic Impact from Events ............................................................................. 10 3.4.3. Review of Existing Motorsport Facilities............................................................................. 11

3.5. SWOT Analysis ........................................................................................................................ 12 3.6. Key attributes of SMCC & McAdam Park .................................................................................. 12

4. DEMOGRAPHIC ANALYSIS ............................................................................. 14 4.1. Age Structure............................................................................................................................ 15 4.2. Gender Structure ...................................................................................................................... 17 4.3. Projected Population Growth ................................................................................................... 18 4.4. Weekly Individual Income........................................................................................................ 19 4.5. Motorcycle Participation Data .................................................................................................. 19

4.5.1. Exercise, Recreation and Sport Survey ............................................................................... 19 4.5.2. Market Research Data ....................................................................................................... 20

4.6. Demographic Profile Summary ................................................................................................. 25 5. INDUSTRY ANALYSIS ...................................................................................... 26

5.1. Motorcycling Australia.............................................................................................................. 26 5.2. Motorcycling Victoria ............................................................................................................... 27 5.3. Victorian Motorcycle Advisory Council .................................................................................... 29 5.4. Trail Bike Initiative.................................................................................................................... 30 5.5. Motorcycle Sales ...................................................................................................................... 31 5.6. Motorcycle Licences................................................................................................................. 32 5.7. Motorcycle Registrations........................................................................................................... 32

5.7.1. Recreational Registration ................................................................................................... 34 5.8. Safety Statistics ......................................................................................................................... 35 5.9. Environmental Issues ................................................................................................................ 37 5.10. Competitor Analysis ................................................................................................................. 38

5.10.1. Local Facilities................................................................................................................... 38 5.10.2. Dandos Road .................................................................................................................... 39 5.10.3. Major Regional Facilities ................................................................................................... 39 5.10.4. Summary........................................................................................................................... 40

6. CONCEPT MASTER PLAN ................................................................................ 41 6.1. Masterplan Drawings................................................................................................................ 41 6.2. Elements of Masterplan............................................................................................................. 41


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6.2.1. Existing facilities ................................................................................................................ 41 6.2.2. Proposed facilities - Building infrastructure ........................................................................ 43 6.2.3. Proposed facilities - Motorcycle Riding areas..................................................................... 43 6.2.4. Proposed facilities - Other ................................................................................................. 45 6.2.5. Other development ........................................................................................................... 45

6.3. Proposed Operational Schedule................................................................................................ 46 6.4. Outcomes from Masterplan ...................................................................................................... 47 6.5. Indicative Capital Costs ............................................................................................................ 48

7. MANAGEMENT OPTIONS ............................................................................... 51 7.1. Land Ownership Options ......................................................................................................... 51 7.2. Management Model Options .................................................................................................... 51 7.3. The Board of Management........................................................................................................ 53 7.4. The Advisory Sub Committee and Operational Sub Committee’s.............................................. 54 7.5. Professional Venue Management .............................................................................................. 54 7.6. The role of individual sports clubs ............................................................................................ 55 7.7. Management Reporting............................................................................................................. 55 7.8. Financing.................................................................................................................................. 56

8. FINANCIAL MODEL......................................................................................... 57 8.1. Methodology ............................................................................................................................ 57 8.2. Assumptions ............................................................................................................................. 57

8.2.1. General Assumptions ........................................................................................................ 57 8.2.2. Revenue Assumptions ....................................................................................................... 58 8.2.3. Expenditure Assumptions .................................................................................................. 60

8.3. Models ..................................................................................................................................... 61 8.3.1. Situation One – 3 Operating Days..................................................................................... 61 8.3.2. Situation Two – 4 Operating Days..................................................................................... 61 8.3.3. Situation Three – 5 Operating Days................................................................................... 62 8.3.4. Situation Four – 6 Operating Days .................................................................................... 62 8.3.5. Situation Five – 7 Operating Days ..................................................................................... 62

8.4. Recommendation ..................................................................................................................... 63 9. FUNDING SCENARIOS.................................................................................... 64

9.1. Phase 1 Funding ....................................................................................................................... 64 9.2. Phase 2 Funding ....................................................................................................................... 64 9.3. Phase 3 Funding ....................................................................................................................... 64 9.4. Stakeholder Funding Sources.................................................................................................... 64

9.4.1. State Government.............................................................................................................. 64 9.4.2. Federal Government.......................................................................................................... 65 9.4.3. Local Government............................................................................................................. 65 9.4.4. Club .................................................................................................................................. 65 9.4.5. Commercial/Other ............................................................................................................ 65

10. CONCLUSION ................................................................................................. 66

APPENDICES Appendix 1 – Concept Masterplan Appendix 2 – Masterplan Cost Estimate Appendix 3 – 10 Year Business Case Model Appendix 4 – Mc Adam Park Motor Sports Complex, Directions Paper (August 2007)


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1. EXECUTIVE SUMMARY

The Sporting Motorcycle Club (SMCC) was founded in 1932 and has been operating at McAdam Park, since 1963. McAdam Park is located on Haines Rd, Barrabool, currently approximately 15 minutes West of Geelong and 55 mins from the Melbourne CBD.

McAdam Park is currently owned by the family of the late Clive McAdam, who indicated that they wish to sell the site. In September 2007, the SMCC entered into an option arrangement with the McAdam Family to purchase the land for $3.075 million (excluding stamp duty and GST if applicable) on or before 7 September 2009.

In order to arrange the necessary funding to acquire the McAdam Park site, the SMCC has engaged Stratcorp Consulting to prepare a detailed Master Plan and Business Case for the redevelopment of McAdam Park.

The findings from this report conclude that there is a strong need in the Barwon Region for a managed venue to provide a contained, safe and controlled facility for motorcycle rider education, activities and events.

At present, the City of Greater Geelong is currently without a dedicated motorcycling facility while it explores locations to relocate the Geelong Motocross Club from its Breakwater venue which was closed in 2007 following noise related issues. While other nearby facilities at Meredith and Colac, are not of a comparable standard to Mc Adam Park.

The McAdam Park Masterplan proposes to meet this need by providing facilities for motorcyclist to undertake a range of riding activities and events. Already established as renowned international and national level motorcycling facility, the Masterplan positions McAdam Park to establish itself as a Regional Level Motorsport & Recreational Complex that caters for the State but in particular, the broader South-West region of Victoria.

the Masterplan is the provision of areas for rider education programs, particularly for Motorbikes and All Terrain Vehicles/Quadbikes. These key social outcomes are vital for the Masterplan when the following information is taken into consideration:

• According to data from the Transport Accident Commission (TAC) of the 332 fatalities on Victoria's roads in 2007, 45 were motorcycle related. This equates to 13.6% of the road toll yet only 3% of registered vehicles in Victoria are motorcycles.

• All Terrain Vehicles (ATV) are becoming a leading cause of death and serious injury on Australian farms. According to information from Farm Safe Australia, there has been a 10 fold increase in farm related quadbike fatalities over the last 10 years and on average there are 12 farm related fatalities per year on Australian farms associated with quadbike accidents. In Victoria, ATV or Quadbikes are the number one cause of death on Victorian farms, responsible for nearly half of all regional deaths investigated by WorkSafe Victoria in 2002.

More recently, the Victorian Coroner completed an inquest into 8 deaths in Victoria and Tasmania in 2002 from quadbike accidents. In delivering his findings Coroner John Olle, called for tougher restrictions on the sale of quad bikes. This included a requirement for manufacturers to ensure that quad bikes are only sold to people who have completed a certified training course.

The Business Case model established for the McAdam Park Masterplan has investigated a number of different operational scenarios for the redeveloped facility. In summary, the model indicates that based upon the underlying assumptions, a redeveloped facility at McAdam Park would Conservatively generate a “Net Profit” from Year 6 operating at 3 days a week, Year 3 operating at 4 days per week, and from Year 1 if operating at or greater than 5 days per week.



Whilst the ultimate number of approved operating days will be dependent upon the outcomes of the planning approval process, which is outside the scope of this Report, the facility at McAdam Park would need to be operational for at least a minimum of 4 days per week (ie. Saturday, Sunday plus two week days) to be financially viable.

The predominant issue that McAdam Park will face relates to noise pollution and its impact on surrounding residential areas. To address this, the Masterplan proposes treed buffer zones both internally and to its perimeter boundaries, along with locating any new riding facilities/activities at McAdam Park towards the centre of the site to capitalise on the natural topography of the site in reduction the likelihood of noise spill from the site. At the same time given the location of the International Circuit on the site and its proximity to neighbouring properties, the Masterplan proposes to reduce the current annual usage of the International Circuit from 140 to 48 occasions (decrease in use of approximately 65%). These measures will make for a significant reduction in noise emissions compared to existing usage, though the most significant action in reducing noise levels will be the implementation of mandatory noise testing of all bikes before riding at the facility.

The recommended Management Model would see ownership of the site reside with the State Government who would then delegate the Management of the facility to an independent “Board of Management”. This Board of Management would then be responsible for controlling and managing the facility in accordance with a “Terms of Reference” that outlines its roles and responsibilities.

An indicative cost estimate using base rate preliminary estimates which is premised on extensive work being undertaken by volunteers with some donation of materials has been prepared for the Masterplan. This estimate indicates that $4.533 million will be required estimated to develop McAdam Park into a Regional Level Motorsport & Recreational Complex.

After reviewing this indicative cost estimate and prioritising elements of the Masterplan, the cost estimate has been split into 2 stages of development. The implementation of Stage 1 the Masterplan will require approximately $2 million, while a further $2.533 million will be required for Stage 2.

In order to successfully deliver the Masterplan, a three phase funding mix for the Masterplan has been recommended as follows:

Phase 1 Funding – Acquisitions of Freehold Title

• The proposed funding mix to acquire the freehold title of the Land is as follows:

- State Government $1.0 million (2009/2010) - Federal/Local Government $1.9 million (exact breakdown TBC) - Club $0.5 million

Phase 2 Funding – Implementation of Stage 1 of Masterplan

• The proposed funding mix for the implementation of Stage 1 of the Masterplan is as follows:

- State Government $1.0 million - Federal/Local Government/Club/Commercial $1.0 million (exact breakdown TBC)

Phase 3 Funding – Implementation of Stage 2 of Masterplan

• The proposed funding mix for the implementation of Stage 2 of the Masterplan is as follows:

- State Government Federal/Local Government/Club/Commercial $2.533 million (exact breakdown TBC)



2. INTRODUCTION

2.1. Background The Sporting Motorcycle Club (SMCC) was founded in 1932 and has been operating at McAdam Park, Barrabool since 1963. The track is located in McAdam Park, Haines Rd, Barrabool, currently approximately 15 minutes West of Geelong and 55 mins from the Melbourne CBD.

Current facilities at McAdam Park include:

• Large site of approx 293 acres, of undulating farmland with panoramic viewing of track areas and surrounding country side.

• Existing International standard Motocross Track, small track for Junior Development Activities, and Mototrials course.

• The track is fully covered by a network of underground sprinklers.

• Substantial onsite car parking.

• Significant land as a noise buffer to local residents.

• Clubrooms, canteen, pits, car parking, rider’s shelter, two dams, bike wash down facility, equipment sheds.

• Two tractors and an all terrain vehicle with tilt trailer for general work including rubbish collection.

• Race control tower.

• Benched and gravelled areas for corporate marquee.

The facility is aimed at a wide range of clientele including:

• Recreational Motocross and Trail bike riders.

• Competitive Motocross Riders.

• Moto Trials riders.

• Junior Riders aged 4 -16, recreational and competitive.

• Professional Motocross Teams.

• Corporate and Industry (for training, demonstration and advertising).

• Motorcycle Coaching and accreditation.

• Offroad and Enduro competitive riders.

The land is currently owned by the family of the late Clive McAdam, who was a passionate supporter of the SMCC and is leased by the club until September 2009. Several years ago Clive McAdam passed away and his estate has been transferred to his children who are looking to sell the site. As a result the original McAdam Park site now constitutes three blocks with the original land of 118.64 hectares (293.16 acres) having been sub divided into three lots:

• Lot 1, which includes the existing main track, is 33.11 hectares and

• Lot 2 to the north is 40.68 hectares.

• Lot 3 to the east is 44.85 hectares.



In recent times, in-line with the sub-division above and to assist with the sale of McAdam Park, it was re-zoned into the new Farm Zone classification – a classification that prohibits its use for motor sport.

However, since the property has been in use for motorcycling since 1963, existing usage rights have long been established and McAdam Park has developed into an icon facility for Australian Motocross.

In addition to the potential loss of the McAdam Park facility, the Geelong region has also recently lost the only other similar motocross facility, the Geelong Motor Cross Club Complex at Breakwater in Geelong, due to issues with issues with noise pollution. The Geelong Motor Cross Club is working with the City of Greater Geelong to find an alternate site to their current location with an extensive review of over 30 potential sites to find a new location for the Club. Notionally the City of Greater Geelong has allocated $800K for the relocation of Geelong Motocross Club from Breakwater.

Geelong Motorplex is a consortium involved in “improving the returns that can be achieved from Victoria’s motoring related stakeholders, including automotive engineering testing, education, motor sport, environmental protection and tourism industries. This includes involvement in the development of motor sport related facilities. Geelong Motorplex has become involved in the fight to save McAdam Park initially in two ways:

• Having facilitated a current two (2) year option to buy McAdam Park, thereby providing a realistic period in which to put the necessary arrangements in place to acquire McAdam Park. This has effectively extended SMCC lease of McAdam Park for the same period.

• Assisting the SMCC in putting the necessary processes in place with the Surf Coast Shire (in whose shire McAdam Park resides) to commence the rezoning process to a classification in line with the McAdam Park’s precinct’s ability to continue to be used for the conduct of motor sport.

The SMCC is conjunction with Geelong Motorplex commissioned “Sport and Leisure Solutions” to undertake a “Directions Paper” into the possibility of establishing McAdam Park as a “Regional Motor Sports Complex”. The paper identified McAdam Park as an important part of the sporting and recreation fabric of the Geelong Region and an important facility in terms of motorcycle users. The paper also identified the opportunity to establish McAdam Park as a “regional motor sports complex” if Geelong Motocross Club was interested in relocating to McAdam Park, if funding was to become available to purchase and redevelop the site and a business plan was prepared which demonstrated the viability of the facility.

The paper also identified significant negatives in terms of financial losses to the local economy through loss of tourism and retail ($5m annually), increases in motor cycle riders using unsupervised and unauthorised tracks, environmental issues, decreased motor cycle education opportunities and other intangible social negatives due to loss of the facility.

Subsequent to the directions paper the SMCC and Geelong Motorplex confirmed they wish to pursue the opportunity to evolve McAdam Park into a “Regional Sports Centre”. The development of a “Regional Motor Sports Centre” at McAdam Park will require:

• Acquisition of the three (sites)/parcels of land at an estimated cost of $3.4m.

• Additional infrastructure to an estimated value of $1.6m.

• Total project costs estimated at $5m.

In an effort to raise the necessary capital to purchase the land, the club is continuing to raise funding through a major fundraising project, the "Big Picture Wall". Unfortunately,



attempts at a range of other targeted efforts, including sponsorship from the motorcycle manufacturing industry, have been as yet unsuccessful. The Club has also approached various levels of Government in regards to funding. All potential funding parties, especially Government, have indicated that they require further details of the proposed development, including a detailed business case.

Based on this situation, the SMCC and Geelong Motorplex engaged a suitability skilled consultancy team, Stratcorp Consulting, to undertake further work on the proposed redevelopments, including the development of a detailed business case and business plan.

2.2. Barwon Recreational Motorcycling Council The Barwon Recreational Motorcycling Council (BRMC) has been established to bring a unified voice to the region’s recreational motor cycling activities. The BRMC has representation from all the regional motorcycling club’s, including Otway Trail Riders, Geelong Motocross Club, Sporting Motorcycle Club, Colac Motorcycle Club, and Meredith & District Motorcycle Club.

The Council’s mission statement is as follows:

“To represent and develop recreational motorcycling in the Barwon region and to encourage unity on issues involving the sustainable use of existing facilities, the creation of new facilities and ensure recreational motorcyclists, junior and novice riders can conduct their activities in a safe and socially responsible way."

The BRMC believes that recreational motor cycling related sporting clubs will need to play an increasing role in helping to curb the antisocial and un-safe use of motor cycles, by creating and offering enthusiasts facilities where they can conduct their activities in a safe, controlled and socially responsible way.

The BRMC is fully supportive of the SMCC’s efforts to retain McAdam Park as a key motorcycling facility for the region.

2.3. Study Purpose and Objectives The objectives of the project are to develop a business case for the development of a Regional Motorsports & Recreational Complex at McAdam Park with the following outcomes:

• Consulting further with key stakeholders with respect to facility development options/needs.

• Consulting with current, potential and alternative users groups to identify their potential to use the facility and their capacity to pay.

• Prepare a business case for the proposed redevelopment (including identifying business and management models).

• Preparation of a detailed business plan which identifies potential revenue and expenses associated with the development of such a facility.

• Assessing the suitability of attaining funding through partnerships with the private sector and Government.

• Recommending the most appropriate Funding Strategy (using a combination of Industry, Government and Private Sector investment).



2.4. Acknowledgements Stratcorp Consulting would like to acknowledge the contributions of Peter Ovens (Operations Manager SMCC), Gary Grant (Geelong Motorplex Consortium) and Peter Lindeman (Chairman, BRMC) into the development of the Business Case McAdam Park Regional Motorsports Facility.

In addition, the information prepared for the SMCC by Damian Gorman, Sport & Leisure Solutions, is his Directions Paper for McAdam park is also acknowledged.



3. SITUATIONAL ANALYSIS

3.1. Sporting Motorcycle Club The Sporting Motorcycle Club (SMCC) was founded in 1932 and has been operating at McAdam Park Barrabool since 1963.

The following table summarises the SMCC’s membership numbers from 2004 to 2008, total annual number of riders and the total number of public visitors attending McAdam Park.

Year Members Riders Public

2004 380 4,145 12,310

2005 430 4,055 13,040

2006 700 6,330 16,025

2007 680 4,375 13,360

2008 630 5,290 12,780

Table 1 – Member, Rider and Public Visitor Numbers for Sporting Motorcycle Club (2004 to 2008)

3.2. Site Analysis The McAdam Park site covers 293 acres land located off Haines Road in Barrabool, 15 minutes west of Geelong, Victoria. The current Motocross track occupies less than 15% (yellow area) of the current site as illustrated in the figure below.

Figure 1 - McAdam Park Aerial Photograph

The site is also extremely accessible to Melbourne with the new Geelong by-pass only a few kilometres away, which once completed will enable access to the from Melbourne in approximately 45 minutes.



The Facilities at McAdam Park currently include:

• Undulating landscape. • Small Junior Track.

• Moto trials course. • Underground sprinkler system.

• Ample Car parking. • Club house and kiosk.

• Two dams. • International standard Motocross track.

• Sparsely populated with trees allowing uninterrupted panoramic views.

• Level areas for construction of temporary marquees.

An example of the facility during a key event can be seen below in Figure 2 .

Figure 2 - McAdam Park in Event Mode

3.2.1. Ownership of McAdam Park The land is currently owned by the family of the late Clive McAdam, who was a passionate supporter of the SMCC. Several years ago Clive McAdam passed away and his estate was transferred to his children who are interested in selling the site.

Following negotiation with the McAdam Family, in September 2007, the SMCC entered into an option arrangement to purchase the land for $3.075 million (excluding stamp duty and GST if applicable) on or before 7 September 2009.

In order to facilitate the purchase of the freehold title of the land, the SMCC has indicated that it will require approximately $3.4 million.

Until the expiration of the Option (7 September 2009), the Club has advised that is has a lease with the Family to continue using the site.



3.3. Current Users of McAdam Park The facility at McAdam Park is currently aimed at a wide range of clientele.

• Competitive Motocross Riders • Recreational Motocross & Trail bike riders

• Moto Trials riders • Agricultural bike users

• Professional Motocross Teams • Motorcycle Coaching and accreditation

• All Terrain Vehicle users, competitive and agricultural, recreational

• Junior Riders aged 4 -16, recreational and competitive

• Offroad and Enduro competitive riders • Corporate and Industry for training, demonstration, and advertising

The McAdam Park facility caters for all of the above user groups with the exception of agricultural bike users and All Terrain Vehicle (ATV) users. In particular ATV users are facing a crisis due to a lack of facilities for competitive and recreational usage. McAdam Park has a flowing and open track, which would cater well for the future provision of facilities for ATV users.

3.4. Existing Documentation The SMCC has developed and prepared a wide range of documentation relating to McAdam Park, which has been provided to prepare this Business Case. In accordance with the Terms of Engagement, Stratcorp Consulting has relied upon the information provided by the Club as accurate and has not attempted to verify the accuracy or completeness of the information provided.

One such document was a “Directions Paper” prepared for the SMCC in December 2007, by Damian Gorman, Sport and Leisure Solutions that explores the options for establishing McAdam Park as a “Regional Motor Sports Complex”.

The Direction Paper identifies McAdam Park as an important part of the sporting and recreation fabric of the Geelong Region and an important facility in terms of motorcycle users. It also identified the opportunity to establish McAdam Park as a “Regional Motor Sports Complex”.

The Directions Paper is included in Appendix 4, but following sections outline some of the key information which has been relied upon in the preparation of this Business Case.

3.4.1. Social Benefits The Directions Paper indicates that at a community level, the SMCC is a valuable community strengthening resource by providing opportunities for the development of leadership behaviours and community co-operation for volunteers and members at many levels.

Over the last five years the SMCC has donated $75,000 to local community groups including local Fire Brigades, Lions clubs, Schools and Modewarre Football Netball Club.

With the closure of the Breakwater Motorcycling Complex in late 2007, the Barwon region will be faced with over 1000 displaced riders if McAdam Park was also to close. These riders will most likely seek their riding experience on unsupervised tracks in residential and/or public land areas. There is already some anecdotal evidence that indicates riders have established an informal motorcycle track



stretching from Geelong to the Otways that can be ridden without travelling onto a public road.

A facility such as McAdam Park provides a controlled supervised environment which not only gives riders the best track conditions but also prevents dangerous and unlawful riding on public roads in residential and public areas.

There are overwhelming positive social/community impacts surrounding the existence and further redevelopment of McAdam Park:

• Provides the only safe and legal riding area for riders in the region

• Provides Youth 5 – 18 with a controlled legal environment to practice both sport and recreation.

• Provides Youth 12 – 18, a targeted high risk group, with a facility where they can participate in a physical and demanding sport.

• McAdam Park is a family oriented venue. All users under the age of 18yrs must be accompanied by a parent/guardian, giving rise to an intrinsic social network and high level of volunteerism.

• Social and Recreational outlet for often socially displaced retired men aged 55 and over, again, providing an opportunity for volunteering and community commitment.

• Provides valuable accredited coaching and training for all ages and abilities in motorcycle riding and safety, with a focus on Junior Development.

• Provision of formal First Aid Training (Workplace Level 2) to any club member through the OHS program.

The McAdam Park facility is integral in training young motorcycle riders in safe motorcycle handling and therefore contributes to the reduction of motorcycle accidents and injuries within the Barwon region

There is also a strong volunteer base which provides the majority of safe riding training that is implemented at the Club. This volunteer base will be lost to the community if McAdam Park is forced to close.

3.4.2. Regional Economic Impact from Events The Directions Paper indicates that over the past 15 years, McAdam Park has hosted a number of Regional and National Motorcycle Championships which attract large crowds of between 1000 - 5000 people.

Statistics drawn from Geelong Otway Tourism indicate that on average a person spends approximately $112 when staying overnight in the region.

An evaluation of the Oceania Motocross Championships which were held in 2005 revealed the total consumer expenditure on the region as a result of attending the events at McAdam Park. The following is a summary of this evaluation:

• 83% of people who attended events held at McAdam Park came from outside of the Geelong Region.

• 27% of people come to events at Mc Adam Park stay 2, while a further 19% will spend 3 nights.

• 27% of people spent between $200 and $500 on accommodation when attending the event



• Over 40% of people would spend up to $100 on meals, food and drinks.

The Directions Paper indicates that on average there are 3 major events at McAdam Park each year - the Australian Open Motocross championships (5000 people attend), Western District Championships (1800 people attend) and the Clubman Challenge (1050 people attend) and that these events are traditionally held on long weekend which enables visitors from outside the region stay 1 to 2 nights.

Using this information the Directions Paper suggests that the current economic contribution that McAdam Park brings per year to the local economy is approximately $1,750,000. The Paper also suggests that according to Tourism Victoria and Access Economics data, for every $82,000 spent by tourists, one additional job is created.

The benefits of the tourism/events dollar are spread well beyond the hotel lobby, filtering through to the petrol pump, the corner store, restaurants and even the local mechanic.

3.4.3. Review of Existing Motorsport Facilities The Directions Paper indicates that a number of Motor Sport facilities are located within a 25km radius around Geelong. These include Geelong Motor Cross Club (Breakwater), Western District Car Club, Sporting Motorcycle Club (McAdam Park), Corio Go-Karting circuit, and the Avalon Speedway.

Of these facilities only the Geelong Motor Cross Club and the Sporting Motor Cycle Club are dedicated motorbike facilities, the others having no motorcycle activities at all. The Geelong Motor Cross Club (GMCC) facility ceased operation at the end of 2007 due to noise issues with local residents. The GMCC is currently working with the City of Greater Geelong to find an alternate site for their activities.

The Paper suggests that this situation presents the Geelong region with an opportunity to develop the existing McAdam Park site into a Regional Motor Sports Facility.

Apart from the competitive sports aspects of this type of facility, there is a strong demand for this type of facility from recreational users as the increasing number of trail bikes, especially illegal trail bike riders, has resulted in growing conflict between trail bike riders and other recreation groups seeking to enjoy Victoria’s natural forest areas. The safety of trail bike riders and other forest users (walkers, horse riders, mountain bikers, etc) is in danger where multiple user groups access the same road and track network.

The Paper also identifies other motocross facilities in neighbouring Councils which might impact on the viability of any development at McAdam Park. The review concluded that only the surrounding Shires of Golden Plains, and Colac Otway all boast motorcycling facilities, but none are of comparable standard of Mc Adam Park. Furthermore none of the surrounding municipalities have any solid plans to build further motocross facilities in the foreseeable future.

The Broadford Motor Sports complex (headquarters of Motorcycling Victoria), which is located more than two hours from Geelong, is the states main regional motorcycle facility and will likely become the nearest comparable option for local club members if Mc Adam Park ceases to exist. The complex incorporates Road race, Motocross, Super Cross, Dirt Track, Speedway, Trials and Enduro circuits.

Section 5.10 of this report further expands this review of existing facilities.



3.5. SWOT Analysis The following analysis is specific to the McAdam Park site including its potential development.

Strengths: Weakness: Opportunities Threats

• Large size of available land.

• Undulating terrain for Trail Riding/Enduro racing track.

• First class existing motocross track.

• Maintenance facilities already in place such as dams and sprinkler system.

• Strong reputation.

• Renowned track from entire industry.

• Local community support.

• Strong industry support.

• Lack of capital to fund the development.

• No capital to purchase the land.

• To be able to develop one of the best complete motor cycle venues in Australia.

• Lease out space to 3rd parties that would use the site for rider education programs, retail space and ATV education.

• To have the venue fully managed.

• SMCC does not receive financial support to purchase and develop the site.

• Development and support of an alternative venue rather than McAdam Park.

• Not gaining full support from the Greater Geelong Council, Surf Coast Shire and other surrounding Local Government Agencies.

• Not gaining / receiving the full support of local motorcycle clubs.

Table 2 - McAdam Park SWOT Analysis

3.6. Key attributes of SMCC & McAdam Park Based on the documentation provided by the SMCC the following summarises the key attributes of SMCC and McAdam Park:

• Annually McAdam Park caters for some 6,500 recreational motorcyclists and 16,500 spectators. The Visitor Dollar to the region for 2007 as calculated by an independent tourism authority was $1.75M1. The typical annual economic input to the local retail and tourism business sector is $5.5M2.

• There is a desperate shortage of safe and controlled motorcycle venues in the Geelong region, following the closure of the Geelong Motor Cross Club Complex at Breakwater in Geelong. McAdam Park is currently the only organised dirt based and recreational motorcycle facility in the Geelong region.

1 Sourced from documentation provided by the SMCC 2 Sourced from documentation provided by the SMCC



• Motor sporting clubs play a vital role in the wellbeing of the community by introducing young members to the need for self discipline, regulation and compliance. The positive culture and life skills that can be acquired from sporting clubs also form a unique and exceptional foundation for the development of responsible and valuable members of our community.

• The Sporting Motor Cycle Club and its McAdam Park facility make a significant contribution towards saving lives in our region. Their culture and the ability to teach young riders the necessary skills to cope with the responsible use of motorcycles also contributes towards minimising the incidences of motorcycle related antisocial behaviour on public roads, residential areas, community recreation areas and parklands.

• As vehicles become easier to acquire, the community is becoming increasingly concerned with those issues and the consequences arising from vehicle related antisocial behaviour. It is a widely accepted fact that the majority of young people evolve into an attraction to motor vehicles. Motor vehicles continue to become more easily available and more powerful. Without purpose built safe and controlled facilities that can be managed in a socially responsible and viable way, it is inevitable that young people will resort to public roads, parklands and other community recreational areas to experience their motoring interests, with likely disastrous consequences.

• The Sporting Motor Cycle Club’s development of McAdam Park has lead to the facility being recognised nationally and internationally as a world class sporting venue..

• It is likely that volunteer not for profit sporting clubs will continue to inherit an increasing role in preserving the wellbeing of the young in our community, given the increasing incidences of both parents working, parents having multiple jobs, shift work and/or the family unit being based on a sole parent. Such situations, through lack of traditional supervision, are recognised as contributing factors towards the incidences of the young being involved in motor vehicle related anti social behaviour, injury and death.



4. DEMOGRAPHIC ANALYSIS

The following section presents the demographic profile of the area surrounding McAdam Park (referred to as the Barwon Region) which comprises the following Local Government Authorities:

• City of Greater Geelong • Surf Coast Shire

• Golden Plains Shire • Colac-Otway Shire

• Borough of Queenscliffe

Figure 3 - Barwon Region Map

The analysis compares the Barwon Region with the demographic profile of Regional Victoria and Victoria, according to the following characteristics.

• Age Structure.

• Gender Structure.

• Projected Population Growth.

• Weekly Individual Income.

The data presented has been sourced from the Australian Bureau of Statistics (ABS) 2006 Census and from figures obtained from the Victorian Government’s Department of Planning & Community Development report Victoria in Future 2008 – First Release.



4.1. Age Structure The following graphs illustrate the age structure of the Barwon Region compared to Regional Victoria and Victoria.

14.6%

11.3%

13.4%

10.2%

13.2%

14.8%

12.4%

14.5%

14.7%

14.6%

13.4%

12.6%

13.8%

20.9%

18.4%

21.4%

12.7%

12.6%

12.9%

14.0%

13.5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Barwon Region

Victoria

Regional Victoria

0-9 years 10-19 years 20-29 years 30-39 years 40-49 years 50-59 years 60+ years

Figure 4 - Age Structure – Barwon Region vs Regional Victoria and Victoria

Figure 4 above provides the following information:

• Overall 65.7% of the Barwon Region population is aged 49 and under which is slightly higher than Regional Victoria (64.8%) and slightly lower than Victoria (68.9%).

• The Barwon Region has a slightly higher proportion of 0-9 and 10-19 year olds than Victoria, but a slightly lower proportion than Regional Victoria.

• The Barwon Region has a slightly higher proportion of both 20-29 and 30-39 year olds than Region Victoria but a lower proportion than Victoria.

• The proportion of 40-49 year olds in the Barwon Region is consistent with both Regional Victoria and Victoria.

• The Barwon Region (20.9%) and Regional Victoria (21.4%) have a slightly higher proportion of 60+ year olds than Victoria (18.4%).

Figure 5 below, examines the structure of the Local Government Authorities within the Barwon Region.

12.6%

15.1%

12.4%

13.9%

9.7%

14.7%

15.9%

13.9%

13.7%

10.2%

9.7%

7.8%

12.1%

9.0%

4.9%

11.8%

14.4%

13.2%

14.2%

8.5%

14.4%

16.7%

14.2%

16.3%

12.2%

14.1%

15.7%

13.0%

14.5%

14.7%

22.6%

14.4%

21.2%

18.5%

39.7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Colac-Otway Shire

Golden Plains Shire

City of Greater Geelong

Surf Coast Shire

Borough of Queenscliffe


Figure 5 - Age Structure (%) – Barwon Region by Local Government Authority



By examining the age structure for the Barwon Region by each Local Government authority (See Figure 5 above), and comparing it with the Regional & State wide Age Structure (See Figure 4 above) the following information can be obtained:

• The Borough of Queenscliffe has the highest proportion of 60+ year olds (39.7%) followed by Colac-Otway Shire (22.6%) and the City of Greater Geelong (21.2%).

• The Surf Coast Shire (9.0%), Golden Plains Shire (7.8%), Colac-Otway Shire (9.7%) and the Borough of Queenscliffe (4.9%) currently have a lower proportion of 20-29 year olds than Victoria (13.4%), Regional Victoria (10.2%) and the Barwon Region (11.3%).

• The Golden Plains Shire (15.9%) has the highest proportion of 10-19 year olds while the Borough of Queenscliffe (4.9%) has the lowest proportion of 10-19 year olds.

• The proportion of 50-59 year olds in the Surf Coast Shire (14.5%), Golden Plains Shire (15.7%), Colac-Otway Shire (14.1%) and the Borough of Queenscliffe (14.7%) are greater than Victoria (12.6%), Regional Victoria (13.8%) and the Barwon Region (13.4%).

0 10,000 20,000 30,000 40,000 50,000 60,000

0-9 years

10-19 years

20-29 years

30-39 years

40-49 years

50-59 years

60+ years

City of Greater Geelong Surf Coast Shire Colac-Otway Shire Golden Plains Shire Borough of Queenscliffe

Figure 6 - Age Structure (Totals) – Barwon Region by Local Government Authority

Figure 6 above provides a cumulative breakdown of each age group by Local Government Authorities. This figure illustrates that

• The City of Greater Geelong (197,477) has a significantly larger population than any other Municipality in the region, while the Borough of Queenscliffe (3,018) has the smallest population in the region.

• The City of Greater Geelong accounts for approximately 76% of the entire Barwon Region population, followed by the Surf Coast Shire (8.4%) and the Colac-Otway Shire (7.8%).

• The largest age group population is the 60+ year old group (54,134), followed by the 40-49 year old group (37,567) and the 10-19 year old group (36,290).

• The smallest age group population is the 20-29 year old group (29,218) followed by the 0-9 year old group (32,906) and the 30-39 year old group (34,226).



4.2. Gender Structure The following graphs illustrate the Gender Structure of the Barwon Region compared to Regional Victoria and Victoria.

2,420,416

655,910

126,891

2,512,006

677,526

132,121

0% 25% 50% 75% 100%

Victoria

Regional Victoria

Barwon Region

Males Females

Figure 7 - Gender Structure (Totals) – Barwon Region vs Regional Victoria and Victoria

10,115

8,381

96,134

10,874

1,387

10,181

8,073

101,343

10,893

1,631

0% 25% 50% 75% 100%

Colac-Otway Shire

Golden Plains Shire

City of Greater Geelong

Surf Coast Shire

Borough of Queenscliffe

Males Females

Figure 8 - Gender Structure (Totals) – Barwon Region by Local Government Authority

Figure 7 and Figure 8 above indicate that:

• The Gender Structure for the Barwon Region is consistent with that of Regional Victoria and Victoria with 49% of the population Male & 51% Female.

• The Gender Structure for Local Government Authorities within the Barwon Region is also consistent except for the Borough of Queenscliffe which has a slightly higher female population (54%) and the Golden Plains Shire which has a slightly higher male population (51%).



4.3. Projected Population Growth The figure below shows Barwon Region’s projected population growth to 20263.

0

20,000

40,000

60,000

80,000

100,000

120,000


2009 2014 2019 2026

Figure 9 - Barwon Region Projected Population Age Group Growth to 2026

The following information can be determined from Figure 9 :

• The total projected population for the Barwon Region is expected to increase by 25.7% (72,690) from 2009 to 2026.

• The age group with the largest increase in population growth will be the 60+ year old age group, increasing by 66.3% (40,529).

• The next largest age group with an increase in projected population is the 50-59 year age group increasing by 18.9% (7,120) followed by the 30-39 year age group increasing by 17.6% (6,474).

• The smallest age group with the smallest increase in projected population is the 20-29 year age group expected to increase by only 11.0% (3,756), followed by the 10-19 years increasing by 11.2% (4,312).

3 Victoria in Future 2008 – First Release – Figures obtained from the Department of Planning & Community Development Website



4.4. Weekly Individual Income The figure below shows the weekly individual income for the Barwon Region compared to Regional Victoria and Victoria.

8.4%

6.1%

13.1%12.3%

5.7%5.1%

2.3%

1.2%

6.1%

11.3% 11.0%

8.6%

6.5%6.1%

3.1%

1.9%2.7%

12.0%11.5%

1.5%

26.1%

1.8%2.8%

5.7%6.1%

12.7%

6.2%5.2%

26.8%

1.4%

8.5%

12.5%

5.0%

26.4%

10.3%

6.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Negative/Nil income

$1 to$149

$150 to $249

$250 to$399

$400 to$599

$600 to$799

$800 to$999

$1,000 to$1,299

$1,300 to$1,599

$1,600 to$1,999

$2,000 ormore

Not stated/Applicable

Barwon Region Regional Victoria Victoria

Figure 10 - Weekly Individual Income – Barwon Region vs Regional Victoria and Victoria

The following information can be determined from Figure 10 :

• Excluding individuals that did not indicate their weekly income, the highest weekly income bracket for the Barwon Region is $150 to $249 (12.7%) followed by $250 to $399 (12.0%) and $400 to $599 (11.5%).

• The Barwon Region and Regional Victoria area have a higher proportion of Individuals earning between $150 and $399 per week when compared to the Victoria.

• 36.2 % of individuals in the Barwon Region earn between $150 and $599 per week compared to 37.9% for Regional Victoria and 32.6% for Victoria.

• 11.8% of individuals in the Barwon Region earn more than $1000 per week compared to 10% for Regional Victoria and 13.8% for Victoria.

4.5. Motorcycle Participation Data

4.5.1. Exercise, Recreation and Sport Survey The Exercise, Recreation and Sport Survey (ERASS) collects information on the frequency, duration, nature and type of physical activities that are participated in for exercise &, recreation and sport by persons aged 15 years and over.

The following table outlines information collected by ERASS over the past 6 years for “Motorsports”. The definition of motor sport by ERASS includes, track, trail bike, car, motorbike, speedway, drag and go-kart.



Year Number Participation Rate Number Participation Rate2007 178,600 1.1% 46,500 1.1%2006 207,000 1.2% 42,300 1.0%2005 144,400 0.9% 28,600 0.7%2004 197,300 1.2% 40,200 1.0%2003 174,600 1.1% 49,600 1.3%2002 132,400 0.9% 27,800 0.7%

National Victoria

Table 3 - ERASS Participation Figures for Motorsport (2002 -2007)

Table 3 above indicates:

• Nationally, the highest number of participants in Motorsport was 207,000 in 2006, while in Victoria it was 49,600 in 2003.

• National and Victorian Participation rates for Motorsport were 1.1% in 2007.

• Over the 2002-2007 period National participation numbers averaged just over 172,000 (172,383) while in Victoria the average participation figure was just under 40,000 (39,167).

• Assuming that 50% of these participants participate in Motorcycling activities, there are approximately 23,000 motorcycle participants in Victoria aged 15 and over.

4.5.2. Market Research Data While the data provided by ERASS provides a broad overview of Motorsport in general, there is limited information in respect of participation rates and numbers specifically for motorcycling. Due to the lack of up to date and reliable data, Stratcorp Consulting undertook independent market research across Australia of the current status of motorsport. 33,000 panellists were provided with the questionnaire of which 4,964 (15%) people responded. Although the survey was distributed country wide, the focus of the research was on the specific areas of Melbourne/Geelong (40.9% of respondents).

The data collected has been analysed according to the following characteristics.

• Age profile

• Employment profile

• Club membership

• Vehicle registration and influencing factors

• Gender profile

• Income profile

• Factors influencing participation

• Desired facilities within a Motor Cycling complex

Where there is a difference between national figures and those of the Melbourne/Geelong study group, two figures are provided. The initial figures relate to National data, whilst the figures in brackets are pertinent to Melbourne/Geelong region. It should be noted that of those people participating in the survey and expressing an interest in motor cycling 76.8% (79.4%) indicated that they were active and 15.6% (13.5%) indicated that they were a parent of a participating junior. The remainder were either non-active 1.8% (1.9%) or had a general unspecified interest in the sport.



i. Age Profile:

8.0%

4.2%

17.6%

26.7%

19.8%

13.0%

10.7%

7.8%

4.8%

18.5%

27.5%

17.4%

12.0% 12.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

0 to 16 yrs 16 to 18 yrs 19 to 25 yrs 26 to 34 yrs 35 to 44 yrs 45 to 55 yrs 55+ yrs

Melbourne / Geelong National

Figure 11 - Motor Cycling Age Profile

• Nationally, the age profile for participating in motor cycling is dominated by the 26-34 year age group which accounts for 27.5% (26.7%) or just over 1 in every 4 participants.

• Generally the majority of participation is focused on the 19 to 44 year range, which accounts for 63.4% of all participants Nationally and 64.1% within the Melbourne/Geelong region.

ii. Gender profile

78.2% 79.6%

21.8% 20.4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Male Female

Figure 12 - Motorcycling Gender Profile

• The gender balance is one of a male dominated sport with only 1 out of every 5 participants being female.

• The National picture is consistent with that in the Melbourne/Geelong with 79.6 (78.2%) of participant’s male and 20.4% (21.8%) female.



iii. Employment profile

8.4%

31.3%

18.7%

20.6%

1.9%1.1%

4.6%

9.2%

4.2%

8.1%

35.3%

13.4%

18.2%

1.7%2.8%

7.0%

9.8%

3.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Unskilledblue collar

Skilled bluecollar

Lower white Upper/seniorwhite

Unemployed Pensioner Retired Student Home duties

Melbourne/Geelong National Figure 13 - Motorcycling Employment

• Employment profile of motor cycling participation is broad. Participation amongst skilled blue collar workers accounts for 35.3% (31.3%), whilst upper/senior white collar workers accounts for 18.2% (20.6%).

• Lower white collar workers account for 13.4% (18.7%) of participants whilst unskilled blue collar workers account for 8.1% (8.4%).

• Student interest accounts for 9.8% (9.2%) of current participants.

iv. Income profile

7.6%6.9% 6.9%

12.6%

13.7%

8.8%

10.3%

11.5%

5.7%

16.0%

8.4%

9.8%

6.7%

10.1%

12.6%

11.2%

9.2%

10.1%

6.7%

15.1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Under$20,000

$20,000-$29,999

$30,000-$39,999

$40,000-$49,999

$50,000-$59,999

$60,000-$69,999

$70,000-$79,999

$80,000-$89,999

$90,000-$99,999

$100,000plus


Figure 14 - Motorcycling Participant Income Profile



The income profile of motor cycling participants varies broadly with:

• 15.1% (16%) of respondents having an income in excess of $100,000.

• 33.9% (35.1%) of respondents had an income range of between $40,000 and $70,000,

• 26% (27.5%) of respondents had an income range of between $70,000 and $100,000

v. Club membership

• Only 25% of respondents were members of an organised club.

• 44% (47.4%) of respondents who are currently members of clubs pay up to $100 for annual membership and a further 28% (28.6%) pay up to $50

• Of all respondents 39.7% (41.6%) stated that they would pay up to $100 for annual membership whilst a further 33.3% (30.3%) said they would pay up to $50 annually.

• 72% (67.9%) of respondents suggested that they would be interested in being a member of an organised club.

vi. Vehicle registration and influencing factors

• Of those participating in the survey, less than 50% of motorbikes were registered.

• 60.8% (67.9%) of respondents indicated that they visited an organised motorsport facility between 1 and 5 times each year.

• 38.7% (40.5%) indicated that the distance travelled to utilise an organised motorsport facility would be between 1 and 30km. However 42.1% (42.7%) of participants would be willing to travel between 30km and 100km to get to an organised venue.

• 24.3% (26.3%) would only be prepared to travel between 1 and 30km to an organised venue.

• 40.9% (38.2%) of participants state they use unregulated sites. However when asked whether they would be prepared to use regulated sites more often if located in close proximity to their home 78.4% (75.2%) said that they would. The remainder would not.

• 68.2% (70.2%) of respondents indicated that they would be prepared to pay between $1 and $30 per visit to an organised site. Only 5.7% (3.8%) stated they would not be willing to pay. 7.6% (6.5%) would be prepared to pay in excess of $50

vii. Factors influencing participation The most important factors which would increase interest in participation are:

• Good quality of venue and safe environment - 36.8%(36.9%);

• Ease and affordability of riding – 31.8% (33.3%) and

• Ease of access and proximity of an organised facility -36.2% (35.6%)

The most significant barriers to participation in motorsport were highlighted as:

• Cost 61.6% (61%)

• Distance of Travel 36% (30.1%)



• Equipment 34.8% (34.9%)

Of the respondents that indicated their motorsport discipline, the most popular 2 wheel motorsports were:

• Motocross 48.7% (47.0%)

• Road Racing 25.8% (31.8%)

• Dirt Track Speedway 22.4% (25.2%)

• Junior 19.6% (21.2%)

viii. Desired Facilities within a motorsport complex When asked what facilities they would expect within a motorsport complex for motor bikes, the most important aspects were:

MELBOURNE /GEELONG NATIONAL

RANK FACILITY RANK FACILITY

1 Restroom facilities 1 Restroom facilities 2 Café / canteen 2 Café / canteen 3 Training facilities 3 Training facilities 4 Motocross track 4 Motocross track 5 Mechanic / repair area 5 Mechanic / repair area 6 Junior track 6 Junior track 7 Pitt area 7 Pitt area 8 Bike / equipment hire 8 Bike / equipment hire 9 Speedway 9 Trial 10 Trial 10 Road Racing circuit 11 Road Racing circuit 11 Pee Wee track 12 Pee Wee track 12 Speedway 13 Retail store 13 Super cross track 14 Super cross track 14 Retail store 15 ATV track 15 ATV track 16 Enduro circuit 16 Enduro circuit

Table 4 - Desired Facilities within a Motorsport Complex

ix. Motorcycling Participation Profile

The relevant findings from this data analysis suggest that following participation profile for motorcycling:

• Participants will predominantly be males aged between 19 and 44 years old.

• Participants will generally be a skilled blue collar worker earning between $40,000 and $70,000 per annum.

• Participants are unlikely to be a member of an organised club, however is interested in becoming a member of an organised club.

• Participants will visit a motorsport facility between 1 and 5 times a year and would be willing to travel up to 100km to get to an organised venue/facility.

• Participants would be willing to pay up to $30 per visit to ride at an organised venue/facility.

• Approximately 1 in 4 (25%) will be members of an organised club.



• Approximately 1 in 3 participants use unregulated sites for motorcycling activities, but would be willing to use a regulated site more often if located within close proximity to their home.

• Cost has been identified as a significant barrier to participation.

• The most popular motorcycling discipline is Motocross.

4.6. Demographic Profile Summary Based on the findings from this demographic analysis the following Demographic Profile can be concluded:

• There are a total of approximately 40,000 males living in the Barwon Region that fit the age demographic of a motorcycle participant (ie. between the ages of 19 and 44).

• With 76% of the population of the Barwon Region, the City of Greater Geelong accounts for approximately 30,400 of these males, followed by the Surf Coast Shire with approximately 3,300 (8.4%).

• Assuming the same gender ratios, by 2026 the number of males aged between 19 and 44 living in the Barwon Region will increase to approximately 51,000.

• Assuming that SMCC’s current membership (630) equates to 25% of the total riders in the region, there is a total of 2,520 motorcycle riders in the Barwon Region that fit the demographic profile.



5. INDUSTRY ANALYSIS

5.1. Motorcycling Australia Motorcycling Australia (MA) is the regulating body of motorcycle sport in Australia at a national level. It is supported by affiliate branches in each state of Australia. Each affiliate branch is responsible for the regulation of motorcycle sport in their state and is known as the State Controlling Body (SCB). Each SCB is represented on the National Council, along with a President, which allows members to have their views represented as individuals, through their clubs, and SCBs.

The National Council is responsible for policy and strategic development. It elects four members of the Board, who in turn appoint two independent Directors. The Board is responsible for implementing and reviewing the strategic plan, governance and appointing suitable people to join Commissions and Committees.

Motorcycling Australia governance of the sport covers a spectrum of motorcycle sport disciplines. These include:

DISCIPLINE DESCRIPTION

Road Race: Road racing is conducted on purpose built, closed, bitumen-surfaced tracks. The course includes straight sections and a variety of left and right corners

Motocross/ Supercross:

Motocross is conducted on purpose built, closed, dirt surfaced tracks. They include steeply banked corners, flat corners, jumps and short straights.

Classic Motocross:

Classic Motocross activities occur on Motocross tracks where machines of a pre-era race. Riders race with bikes and sidecars of a classic era prior to the more modern Motocross era.

Dirt Track: Dirt Track is conducted on purpose built, closed tracks surfaced in graded dirt or prepared grass. They are flat tracks and have left and right bending corners.

Speedway/ Track:

Speedway/Track is run on purpose built circuits with a loose surface consisting of two straights connected by two left hand semicircular corners. Bikes are purpose-built with no brakes or gear boxes.

Enduro: Enduro meetings are run on public land over dirt roads and cross-country terrain. They can run from one to six days and competitors ride relatively continuously.

Trials: Trials meetings are run on private land over rough terrain. They are the only code not determine by speed.

Historic: Historic racing activities are organised for road racing bikes and sidecars of a Historic Vintage. Machines predominately of a pre 1972 era compete and strict scrutineering occurs before competition to ensure that machines comply with regulations.

Table 5 – Motorsport Disciplines



MA is one of Australia’s largest rider organisations, with more than 26,000 members. It is a non-for-profit organisation and returns any profit made in its operations to the benefit of motorcycling.

While a competition licence isn’t required to become a member of a Club, MA policy stipulates that a participant will need one if they wish to participate as a rider or sidecar passenger in any motorsport competition. Licence requirements and costs vary from State to State.

State Controlling Bodies are required to satisfy themselves that first time licence applicants are capable of competently controlling a motorcycle before they issue a licence. This can be in the form of any one of the following:

• Holder of a current road motorcycling licence

• Attendance at an accredited Training Course run by a State Government Authority.

• Attendance at an SCB Accredited Training School.

• Attendance at a course conducted by a MA accredited coach.

• Endorsement by an official authorised by the club

5.2. Motorcycling Victoria Motorcycling Victoria (MV) is the Victorian affiliate of Motorcycling Australia and is the controlling body for the sporting motorcycle activities in the state of Victoria.

Figure 15 below illustrates MV member numbers between 2005 and 2008.

3333

39384166 4227

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2005 2006 2007 2008

Figure 15 – MV Membership Numbers 2005 – 2008

Since 2005, MV membership has increased by approximately 27% (894 members) to peak at 4,227 members in 2008.

As indicated Section 5.1 above, before participating in an official motorsport competition, members need to obtain a Motorcycling Victoria Competition Licence. There are many types of competition licences available and Table 6 below outlines the different types of licences and a brief description about them.



TYPES OF LICENCES DESCRIPTION

Senior National Licence

A Senior National Licence entitles the holder to compete in competitions permitted by Motorcycling Australia or Motorcycling Victoria. A Senior is classified as a person who is over the age of sixteen (16). Licence is valid for 1 year and costs $265.

Junior National Licence

A Junior National Licence entitles the holder to compete in competition permitted by Motorcycling Australia or Motorcycling Victoria. A Junior is classified as a person who is under the age of sixteen (16). Licence is valid for 1 year and costs $240.

Senior Club Licence

A Senior Club Licence entitles the holder to compete in closed to club events, or interclub competitions permitted by Motorcycling Australia or Motorcycling Victoria. A Senior is classified as a person who is over the age of sixteen (16). Licence is valid for 1 year and costs $230

Junior Club Licence

A Junior Club Licence entitles the holder to compete in closed to club events, or interclub competitions permitted by Motorcycling Australia or Motorcycling Victoria. A Junior is classified as a person who is under the age of sixteen (16). Licence is valid for 1 year and costs $215

Senior Restricted Licence

A Senior Restricted Licence entitles the holder to compete in Trials, Mini Moto/Pocket Bikes and Fast 50 events only, as permitted by Motorcycling Australia or Motorcycling Victoria. Licence is valid for 1 year and costs $175

Junior Restricted Licence

A Junior Restricted Licence entitles the holder to compete in Trials, Mini Moto/Pocket Bikes and Fast 50 events only, as permitted by Motorcycling Australia or Motorcycling Victoria. Valid for 1 year and costs $175.

Recreation Licence A Recreation Licence entitles the holder to participate in recreational activities permitted by Motorcycling Australia or Motorcycling Victoria. Licence is valid for 1 year and costs $85.50

Senior One Event National Licence

A Senior One Event National Licence entitles the holder to compete in an open Classic Motocross or Historic Road Race event, as permitted by Motorcycling Australia. This licence is ONLY valid for National Events and costs $77.

One Event Licence A One Event Licence entitles the holder to compete in a club or interclub event permitted by Motorcycling Australia or Motorcycling Victoria. It is only valid for the duration of that event and comes at a cost of $44. Only available for club events.

One Day Recreational Licence

A One Day Recreational Licence entitles the holder to the same as a Recreational Licence, however is only valid for one (1) day and comes at a cost of $20.

Come 'n' Try Licence

A Come 'n' Try Licence is available for clubs to provide to first time riders who attend Come 'n' Try Days conducted by the club. It is only valid for one day and is FREE of charge.

Table 6 - Motorcycling Victoria Licences Types



Figure 16 below outlines the number of competition licences issued by MV between 2005 and 2008.

1744

1965

1953

2105

743

842

869

856

369

512

491

347

177

191

74

39

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2005

2006

2007

2008

Senior National Licence Junior National Licence Recreation Licence Other

Figure 16 – Motorcycling Victoria Competition Licence numbers 2005 – 2008

As illustrated above:

• Senior National Licences are the dominant type of Competition Licences issued by Motorcycling Victoria accounting for over 50% of all licences issued annually, followed by Junior National Licences and Recreation Licences.

• Of the other Licence Types, Senior Restricted and Senior Club Licenses are the most frequently issued types of licences accounting for nearly 65% of all other Competition Licences issued by Motorcycling Victoria.

• The total number of Competition Licenses issues by Motorcycling Victoria has increased from 2,934 in 2005 to 3,690 in 2008. This is an approximate increase of 26%.

5.3. Victorian Motorcycle Advisory Council The Victorian Motorcycle Advisory Council (VMAC) was established in early 1998, to provide the State Government with strategic advice on issues relating to the management and development of motorcycling in Victoria.

The structure and wide-ranging membership of the VMAC ensures that the balanced advice that it provides is contemporary, well informed and represents the views of the motorcycling community.

VMAC includes representatives of motorcycle rider groups, manufacturers, retailers and rider training organisations, as well as Victoria Police, Transport Accident Commission, Monash University Accident Research Centre and VicRoads. VicRoads provides administrative support to the Council.

VMAC is currently working with VicRoads in developing a Victorian Motorcycle Transport and Safety Strategy which will build on the work achieved through the Victorian Motorcycle Road Safety Strategy 2002-07 whilst also identifying broader transport, access and mobility issues of importance to motorcyclists.



Whilst a key focus for VMAC is on road safety and motorcycles use of the road network, the Council also has a strong interest in addressing off road motorcycle issues. In July 2006, the Victorian Government announced a $5 million project, known as the Trail Bike Project. The project, which will run over four years, will address a range of issues in relation to recreational trail bike use in Victoria's state forests. VMAC strongly supports this initiative and is actively participating in this exciting project.

5.4. Trail Bike Initiative Trail bike riding in Victoria's State forests and other public land is an increasingly popular recreational activity. The Victorian State Government recognises this and wants to ensure that trail bike riders can continue to enjoy riding in the forest while also balancing the legitimate needs of rural residents and other forest recreational users.

The ‘Trail Bike Initiative’ is a four year project (2006-2010) by the Victorian State Government that has the objective of improving the management of trail bikes on public land. To help achieve this objective the Victorian Government, as part of the Our Environment Our Future - Sustainability Action Statement, has committed funding of $5 Million over four years towards the Project.

In December 2005, the Department for Sustainability & Environment released the ‘Trailbike Project Option Paper’. The paper outlines concerns that trail bikes are causing environmental damage and community conflict with residents and other forest recreationalists. The majority of these issues relate to illegal and inappropriate use by a minority of riders. As the number of riders increase and the urban sprawl continues this issue will just become more significant.

The conflict and environmental issues associated with trail bike use are not easy to resolve. However, the Trailbike Options Paper looks to reduce the severity of the problems and move this recreational activity onto a more sustainable footing. A summary of the key recommendations from the paper are outlined below:

• As noise is a key contributor to conflict issues associated with trail bikes on public land, it is recommended that the land management agencies (DSE/Parks Victoria) establish buffer zones around hotspot areas to reduce impacts on residents. Establishment of dedicated trail bike unloading zones away from sensitive areas and improved noise-testing regimes, both in the field and with roadworthy inspections, should be introduced to reduce noise impacts and improve noise emission compliance.

• Inappropriate riding and ill-informed behaviour should be addressed through investment in education to effect long-term behavioural change in riding behaviour and expectations. The engagement of industry (manufacturers and retailers), the riding fraternity and the local community will be critical in achieving this change. Improved public and industry education of the law in relation to under-aged riding and unregistered motorbikes must be a key component of this.

• Identification of gaps in the provision of legal venues for under-aged riders and for unregistered bikes should be undertaken. This will require a partnership approach by local government, the riding fraternity, industry, private landholders and relevant State Government agencies to investigate and support opportunities for the establishment of suitable venues to service demand for the various disciplines of off road motorcycling. Riding opportunities for road-registered trail bikes on public land should be supported through investment in clear and consistent signage.



• Central funds to resource illegal track closure and rehabilitation of environmental damage is required to protect the natural values of public land and remove the current ambiguity over what is the legal track network.

• The need for a consistent regulatory regime across public land tenures is required to provide clarity for recreational riders and should be achieved through targeted regulatory change to State forests legislation to provide parity of regulatory power across State forests and National and State Parks. A gradual introduction of regulatory change coupled with education should be adopted, with a review period after introduction, to ensure that regulatory change is targeted, appropriate and effective.

• Increased enforcement capacity is required to support all of the above and should be addressed through the development of a public land compliance strategy targeting improved coordination of compliance activities by the VicPolice Special Solo Squad, DSE, the EPA and Parks Victoria. This compliance strategy must be appropriately resourced to enable effective enforcement to be undertaken and should particularly address the current inadequate resourcing allocated to the VicPolice Special Solo Squad and public land managers for trail bike enforcement.

• The development of a comprehensive Statewide trail bike/off-road motorcycling strategy to better improve coordination of agency activities and funding of identified priorities should also be undertaken. This would address coordination of cooperative research activities to assist with future strategic decision making and coordination of cooperative education activities.

• To ensure a better coordinated approach to the development and implementation of public land motorcycling policies and programs across Government agencies, recognition of VMAC as the peak inter-agency coordinating body to guide State and local government responses to trail bike use of public land is required.

The Options Paper also suggests that in Victoria the demographics of trail bike riding has shifted over the last decade from more regionally based riders, to more urban based riders seeking riding in regional areas. This trend is expected to increase with the urban sprawl reaching the rural areas as well as a lack of legal motocross and dirt bike venues.

5.5. Motorcycle Sales Official figures released in January 2009 by the Federal Chamber of Automotive Industry show that 134,112 motorcycles, scooters and all-terrain vehicles were sold between Jan 07 and Jan 08 – an increase of 3.2% (4,146 units).

2007 2008 % ChangeATV 19,752 19,990 1.2%

Off Road 50,431 49,411 -2.0%Road 45,502 49,347 8.5%

Scooter 14,281 15,364 7.6%Total 129,966 134,112 3.2%

Units of Sale

Table 7 - FCAI Motorcycle Unit Sales Figures for 2007 & 2008

Table 7 above indicates that Road bikes were the key driver of growth in the market place during 2008 with 49,347 unit sales – an increase of 8.5% over the previous year. Scooters also remained extremely popular with 15,364 units sold – a 7.6% increase compared to 2007 due to perhaps the convenience and practicality of scooters for people who live and work in busy cities as well as higher fuel prices experienced during the period.



Sales of ATVs increased by 1.2 % during the year to 19,990 units while sales of Off-Road motorcycles fell 2% to 49,411 units. Despite this small fall, Off-Road motorcycles still make up over a third (36.8%) of the market share of all motorbikes sold, as illustrated in Figure 17 below.

15.2%

38.8%

35.0%

11.0%

14.9%

36.8% 36.8%

11.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

ATV Off Road Road Scooter

2007 2008

Figure 17 – Market share of Motorbike Sales 2007 & 2008

5.6. Motorcycle Licences In Victoria, a motorcycle licence is required to allow an individual to ride a motorcycle on a road. To be eligible to obtain a motorcycle licence you must be at least 18 years of age and have held a current motorcycle learner permit continuously for at least 3 months.

As at 30 June 20084, VicRoads had 297,066 people with current full or probationary Motorcycle Licences and a further 23,165 people with current Learner Permit Motorcycle Licences.

As indicated in Section 5.2 Motorcycling Victoria has many types of Competition Licences available for members to obtain before they can participate in an official sanction motorcycling event/competition. The number of Competition Licences issued by Motorcycling Victoria has increased by approximately 26% since 2005.

5.7. Motorcycle Registrations To ride a motorcycle on a public road (which includes forest roads and tracks), a motorcycle must be road registered and roadworthy. In Victoria, there are two types of registration options:

1. Full Registration

2. Recreational Registration

The Australian Bureau of Statistics (ABS) Motor Vehicle Census5 collects data on the number of fully registered motor vehicles throughout Australia. Table 8 below provides a summary of this data and indicates that the motorcycle market accounts for 3.7% of the

4 Information on Licence numbers prior to 1 July 2007 was unable to be released publically by VicRoads 5 Australian Bureau of Statistics, Motor Vehicle Census, 9309.0, 31 Mar 2008



total number of motor vehicle registrations in Australia as at 31 March 2008. This is up from 2.9% in 2003 and 3.4% in 2007.

Type of Vehicle 2003 2007 2008% of Total

Vehicle Market

% Change 03/08

% Change 07/08

Average Annual Growth

Passenger vehicles 10,365,941 11,466,560 11,803,536 77.2% 13.9% 2.9% 2.6%Campervans 38,337 43,287 44,790 0.3% 16.8% 3.5% 3.2%Light commercial vehicles 1,879,755 2,190,131 2,288,216 15.0% 21.7% 4.5% 4.0%Rigid Trucks 348,673 394,542 410,910 2.7% 17.8% 4.1% 3.3%Articulated Trucks 64,261 74,452 79,132 0.5% 23.1% 6.3% 4.3%Non-freight carrying trucks 18,599 21,248 21,808 0.1% 17.3% 2.6% 3.2%Buses 70,122 77,562 80,581 0.5% 14.9% 3.9% 2.8%Motor Cycles 377,271 512,428 567,569 3.7% 50.4% 10.8% 8.5%Total 13,162,959 14,780,210 15,296,542 100.0% 16.2% 3.5% 3.0%

Table 8 - Number of National Registrations by Vehicle Type

Figure 18 below graphical illustrates the percentage change in number of vehicle registrations from 2003 to 2008.

13.9%

16.8%

21.7%

17.8%

23.1%

17.3%14.9%

50.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Passenger Campervans Lightcommercial

Rigid Trucks ArticulatedTrucks

Non-freighttrucks

Buses Motor Cycles

Figure 18 - % change in registrations by Vehicle Type from 2003 to 2008

As illustrated in Figure 18 above, Motorcycles have had the most dramatic increase in motor vehicle registrations with a 50.4% increase followed by Articulated Trucks (23.1%) and Light Commercial vehicles (21.7%).

Figure 19 below breaks down State by State the number of motorcycle registrations from 2003 to 20086.

6 Australian Bureau of Statistics, Motor Vehicle Census, 9309.0, 31 Mar 2008



0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

NSW VIC QLD SA WA TAS NT ACT

2003 2007 2008

Figure 19 - Growth in Motorcycle Registrations by State for 2003, 2007 and 2008

Figure 19 above indicates that all States have experienced an increase in the number of motorcycles registered from 2003 to 2008 while Figure 20 below indicates that of all the motorcycles registered in Australia approximately 75% are registered in the Eastern States of NSW (26.1%), Queensland (24.6%) and Victoria (24.0%).

26.5%

26.0%

26.1%

26.3%

24.2%

24.0%

22.2%

24.5%

24.6%

12.5%

13.3%

13.6%

7.5%

7.2%

7.0%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2003

2007

2008

NSW VIC QLD WA SA TAS ACT NT

Figure 20 - % of Motorcycle Registrations by State for 2003, 2007 and 2008

Although there are 567,000 registered motorcycles in Australia, the Trail Bike Project Options Paper suggests that there may be up to 70% more motor bikes being illegally ridden on public land that are unregistered, most of which are off road motorcycles.

5.7.1. Recreational Registration Recreational Motorcycle registration was introduced in Victoria in 1999, following changes to the Road Safety (Vehicles) Regulations. It allows individuals to register their motorcycle to ride in certain areas without obtaining a full registration.

Any two-wheeled motorcycle can be registered as a recreation vehicle. To operate a recreational motorcycle you must be at least 18 years of age and hold a current motorcycle learner permit or licence to ride on a road.



All recreational motorcycles must have:

• a rear vision mirror fitted to the right hand side

• brakes fitted to both wheels, capable of working independently if one brake fails

• one head lamp

• one rear red tail lamp

• one rear red brake lamp

• one rear white number plate lamp

• a silencing device which restricts the noise level to 94 dBA or less

• an appropriate horn or warning device

• a chain guard that protects the rider from the front chain sprocket

There are a number of conditions applying to operating a recreational motorcycle. These include:

• Recreational motorcycles are only permitted to be operated on roads (except declared freeways and arterial roads, including roads formerly designated as forest roads, under the Road Management Act 2004) that are:

o located outside "built up areas" as defined by speed zones of less than 100 km/h, or

o those areas that are not a road and are solely for the training and assessment of a holder of a motorcycle learner permit by an organisation approved by VicRoads for that purpose

• the vehicle must not carry any load or a person other than the rider

• the rider must wear a protective helmet of the type approved under the Road Rules Victoria

As at 30 June 20087, VicRoads had 144,182 register motorcycles in Victoria of which 15,496 were Recreation Registered motorcycles.

5.8. Safety Statistics Motorcycling

According to data8 from the Transport Accident Commission (TAC) of the 332 fatalities on Victoria's roads in 2007, 45 were motorcycle related. This equates to 13.6% of the road toll yet only 3% of registered vehicles in Victoria are motorcycles. Of the 45 motorcycle fatalities in 2007:

• 93% were male • 47% were involved in single vehicle crashes • 22% were involved in crashes with another vehicle at an intersection • 11% were involved in head-on crashes • 38% occurred in rural Victoria • 56% were involved in crashes between the hours of 10am and 6pm • 42% of deaths occurred on roads sign posted at 100km/h or more.

7 Information on Registration numbers prior to 1 July 2007 was unable to be released publically by VicRoads. 8 Source: www.tacsafety.com.au



Figure 21 below outlines the total number of motorcycle fatalities on Victorian roads over the past 20 years.

67

6265

5557 56

4345

43

3941

48

38

46

64

56

3937

48 4745

0

10

20

30

40

50

60

70

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Figure 21 – Victorian Motorcycle Fatalities

In addition to the fatalities figures above, Motorcycle accidents accounted for 1023 (13.1%) of the 7781 serious injuries recorded on Victorian roads in 2007. Of the 1023 serious injuries resulting from motorcycle accidents:

• 87% were male.

• 73% were aged between 21 and 49.

• 47% resulted from motorcycles running off the road.

• 35% occurred in rural Victoria.

• 60% resulted from accidents between the hours of 10am and 6pm.

ATV/Quadbikes

All Terrain Vehicles (ATV) or four wheeled motorbikes (Quadbikes) are becoming a leading cause of death and serious injury on Australian farms. According to a Farm Safe Australia Report9, there has been a 10 fold increase in farm related quadbike fatalities over the last 10 years and on average there are 12 farm related fatalities per year on Australian farms associated with quadbike accidents.

In Victoria, ATV’s are the number one cause of death on Victorian farms, responsible for nearly half of all regional deaths investigated by WorkSafe Victoria in 200210.

Some of the causes of injury or death from ATV use include:

• The ATV is carrying a passenger.

• Legs (of either rider or passenger) get caught by the tyres.

• The ATV back-flips or rolls over while negotiating a steep incline.

• The ATV hits an obstacle and rolls over.

• The rider is hit by a low-hanging obstacle, such as a branch.

9 All-terrain Vehicle (ATV) Safety on Australian Farms, Briefing Paper prepared for the Farmsafe Australia Reference Group on ATV Safety (September 2007) 10 Farm safety - all terrain vehicles Fact Sheet, Better Health Channel Website (www.betterheatlh.vic.gov.au)



• Unevenly distributed or poorly secured loads tip the ATV when in motion.

• The rider is unfamiliar with the controls.

• The rider doesn’t know how to ride the ATV properly -for example, they aren’t aware of the need to shift body weight to maintain the bike’s centre of gravity.

• The rider is driving recklessly, such as trying to perform stunts.

• The ATV is poorly maintained, leading to mechanical failure of vital safety equipment such as brakes.

In April 2009, the Victorian Coroner completed an inquest into 8 deaths in Victoria and Tasmania in 2002 from quadbike accidents. In delivering his findings Coroner John Olle, called for tough restrictions on the sale of quad bikes. This included a requirement for manufactures to ensure that quad bikes are only sold to people who have completed a certified training course and for Consumer Affairs Departments and WorkSafe to enforce the rules.

Following the release of the Coroners’ findings, Farm Safe Australia has welcomed the findings while WorkSafe Victoria has indicated it will begin working immediately with farm safety groups on implementing the Coroner's recommendations.

5.9. Environmental Issues The predominant environmental issue associated with motorcycling facilities relates to noise pollution.

While recent noise tests demonstrated that the noise generated from activities at the McAdam Park facility was no more than any other machinery or vehicle activity emanating from the other properties in the surrounding area, the Sporting Motorcycle Club (SMCC) is required to adhere to all EPA noise requirements for motorcycle activity.

As such the SMCC is very proactive in relation to its management of noise emissions from the McAdam Park facility. Its noise management policy conforms with all existing limits as dictated by those responsible authorities, ensure that noise emissions are of an acceptable and reasonable level, and that they reflect an equitable outcome for the community and user groups. The nature of motorcycle competition requires that all competitors comply with the evolving noise limits as defined by the relevant government agencies.

An independent noise report also notes that there are no specific legislative standard requirements for control of noise at motorsport facilities in Victoria. However, there is an informative document published in May 1992 by the Victorian Environment Protection Authority (EPA) titled “Noise from Motor Sport”. This document has been referenced in the noise report in relation to the acceptable level of noise from motor cycling use at the McAdam Park site.

The noise report recommends that “the maximum acceptable noise level for daytime circuit racing should be approximately 65dBA outdoors”. The report recommends as a lower limit for acceptability “for frequent circuit racing during the day a noise level of approximately 50 dBA is unlikely to cause significant intrusion upon local residents”

The noise report concludes that an appropriate limit for the more regular events (typical of most weekends) would be somewhere between the upper and lower recommended limits, with a level of 55 dBA ensuring reasonable protection of amenity. The recommended upper limit of 65 dBA is considered suitable for major race events that have traditionally taken place on no more than 6 days/ year. This interpretation of limits is also consistent with the EPA’s music noise policy where up to six outdoor music events per year are



subject to a noise limit of 65 dBA11 Similar guidelines or legislation are used in other states and territories.

In addition to the SMCC’s efforts to minimise the impact of noise emissions, the sports governing body, Motorcycling Australia (MA), has recently introduced a new ruling which will effectively decrease the allowable limit of noise from motorcycles. The ruling highlights a reduction in the motor cycle noise limit from 102 dBA to 96 dBA. Further to this, in 2009 MA. has again reduced allowable limits by 2 dBA, setting the 2009 limits at 94dBA and will continue to implement more stringent limits over successive years.. These new restrictions are being applied across the entire range of activities held at McAdam Park.

The SMCC has advised that its noise management policy for McAdam Park, will continue to enforce these and any other new noise limit via the construction of a static on site testing stations in line with the required equipment and staff training protocols.

There are also issues with noise levels created by legal and illegal motor bike riding in many State forests. As many forest users undertake recreational pursuits in quiet, natural settings, the introduction of motor vehicle noise deters from the enjoyment of these users. The State Government Trail Bike Initiative has developed recommendations for the establishment of buffer zones around hotspot areas to reduce impacts on users and residents. This also includes the establishment of dedicated trail bike unloading zones away from sensitive areas to reduce noise impacts.

The lack of suitable dedicated managed venues is increasing the number of off road motorbike riders riding legally and illegally on public property. With off road riding the key environmental impact is the creating of single tracks in undisturbed areas. These tracks can erode the landscape, creating muddy areas, steep trails that go against the terrain, damage sensitive areas of vegetation, increase sedimentation of streams and negatively impact aquatic health.

Once these tracks are created they not only attract more trail bike riders but also recreationalists who mistake these tracks for legal walking tracks. This adds to the difficulty in trying to rehabilitate the areas.

5.10. Competitor Analysis The following section undertakes a review of motorcycling facilities across local facilities and similar regional competitor facilities.

5.10.1. Local Facilities Following the closure of the Breakwater Motorcycling Facility in 2007, the only surrounding municipalities that contain current motorcycling facilities are Golden Plains Shire (Meredith & District Motorcycling Club) and the Colac Otway Shire (Colac Motorcycling Club).

The following table summarises a comparison of the key attributes of these facilities:

11 State Environment Protection Policy “Control of Music noise from public premises” No. N-2.



Key Attributes

McA

dam

Par

k

Mer

edith

& D

istr

ict

Mot

orcy

clin

g C

lub

Col

ac

Mot

orcy

clin

g C

lub

Distance from Geelong CBD 13km 43km 70km Motorcycling Victoria Affiliation Motocross Supercross Trail Riding/Enduro Dirt Track Road Race Track Junior Beginner Tracks Quad Bikes International/National Competition Standard Club House Parking Spectator Area Managed Venue Camping Facilities

Table 9 – Local Facility Competitor Analysis

5.10.2. Dandos Road Following the closure of the Breakwater Complex in Geelong at the Geelong Motor Cross Club has been working with the City of Greater Geelong (CoGG) to find an alternate site for the Club’s motorcycling activities. Notionally the CoGG has allocated $800K towards the relocation of Geelong Motor Cross Club.

An extensive review of over 30 potential sites has been undertaken by the CoGG with a site at Dandos Road (behind Avalon Airport) identified as the preferred venue for the relocation. However, it is understood that Linfox Airports, owners and operators of the Avalon Airport, have serious concerns regarding the proposed site on Dandos Road and what impact motorcycling activities on this site will have on the operation and possible future expansion of the Airport into the future. As such, the suitability of the Dandos Road site as a new home for Geelong Motor Cross Club is now uncertain.

5.10.3. Major Regional Facilities The following table summarises a number of regional level motor-cross venues throughout Australia.



Venue

McA

dam

Par

k

Stat

e M

otor

cycl

e C

ompl

ex

Broa

dmea

dow

s M

otoc

ross

Par

k

Mac

arth

ur M

otor

cycl

e C

lub

Har

tley

Val

ley

Hol

iday

Far

m

Emu

Cre

ek E

xtre

me

Retr

eat

Gle

n Ec

ho P

ark

Bina

crom

be

Loue

e En

duro

Loch

mar

ee

Location Vic Vic Vic NSW NSW Nthn NSW QLD Cent

NSW Cent NSW NSW

Motocross Supercross Trail Riding/Enduro Dirt Track Road RaceTrack Junior Beginner Tracks Quad Bikes 4WD Competition Standard Club House Parking Spectator Area Managed Venue N/A N/A ? Camping Facilities

Annual Membership $100 to $140

$3000 0 $50 $1790 0 0 N/A N/A N/A

Casual Visit Fee $5 to $15 $20 $20 to

$25 $15 to

$25 N/A $10 to $20 $25 $33 $20 to

$40 $25 to

$50

Days of Operation Thur Sat Sun Sat Sun Wed

Sat Sun Tue Sat

Sun All days All days Sat Sun All days All days All days

Table 10 – Major Regional Facility Competitor Analysis

5.10.4. Summary From the information above it is evident that the surrounding local facilities at Meredith & Colac are not of a comparable standard to Mc Adam Park. Neither of these facilities have any confirmed plans to build or expand their motocross facilities in the foreseeable future.

Additionally, it is understood that residents of these Shires may also travel to McAdam Park to use a purpose-built motocross facility, certainly for competitions, and possibly also for regular training. This is especially the case for riders seeking further challenges and to improve their motorcycle skills and abilities.

Despite the uncertainty surrounding the suitability of the Dandos Road site for the Geelong Motor Cross Club, the proposed facility here would predominantly be a Club level facility.

Although Victoria currently has two Regional facilities in Broadford and Broadmeadows, a developed facility at McAdam Park positions the SMCC to establish a Regional Level Motorcycling facility to cater for the broader South-West of Victoria.



6. CONCEPT MASTER PLAN

6.1. Masterplan Drawings The SMCC has developed the following Masterplan for McAdam Park. Larger versions of these images are included in Appendix 1 of this Report.

Figure 22 – McAdam Park Masterplan Map

6.2. Elements of Masterplan The Masterplan contains a mixture of existing facilities and proposed facilities. It should be noted that during the development of the Masterplan the SMCC has attempted to concentrate the majority of any new facility/track development towards the centre of the site. The location of these facilities capitalises on the natural terrain of the site to reduce the impact of any noise spill from activities on these facilities/tracks.

6.2.1. Existing facilities

i. International Motocross Circuit

Existing track of approximately 1.8 km in length. Includes an extended section of 0.9km with an overpass bridge, that is used part time for bigger events. As part of the proposed redevelopment, to limit noise impact on neighbours, it is proposed to limit the use of this track. It contains:

• Fenced competitors pit area with water and power supply, roofed assembly area, enclosed wash bays with concrete floor and silt traps.




• Starting grid with 40 rider start gate, and starters control tower.

• Powered Clubroom building, amenities block, canteen, pits, race control tower.

• In ground watering system to 250 tap/sprinkler outlets supplied by an independent water collection and storage system.

• Public address system.

• Earth banked car parking areas to southern and eastern sides of circuit.

• Spectator fencing to southern and eastern sides of circuit.

• Benched and gravelled areas for corporate marquees and media centres (for events only).

• Significant land as a noise buffer to local residents

• Overflow car parks to western and eastern sides (for events only).

• Rubbish control, collection and removal facilities.

• One large shedded pump and 6 other smaller pumps.

• Machinery shed x 1 and storage sheds x 3.

• Dams x 2

• Small track for novice riders e.g. Pee Wee riders / children up to 15 year old learner riders / novices on ‘Fun Bikes’ (non racing bikes).

Given the location of the International Circuit on the site and its proximity to neighbouring properties, the International Circuit would predominantly be the source of any noise issues associated with the site. To address this issue, the SMCC is proposing to reduce the number of days the International Circuit is currently being used as part of its Masterplan.

In 2008 the International Circuit was used for events/competition/training on approximately 140 occasions. The SMCC is proposing that usage of the International Circuit by high noise level riding activities (ie. events/competition/training with multiple riders) would be limited to major events on 4 weekends per year (approximately 8 event days), 8 Club racing events per year and Group practice/training days on 12 weekend days and 20 midweek days (a total of approximately 48 usage days).

This is an approximate 65% decrease on current usage levels of the International Circuit. Instead, the SMCC intend to use the Junior Motocross Circuit outlined in Section 6.2.3.iv for its regular day to day club riding activities. The location of the new Junior Motocross Circuit in the centre of the site and down the natural valley of the site reduces the likelihood of noise issues with neighbouring properties.

In addition, low noise level riding activities (ie. single riders or other low noise emitting bikes) may also use the International Circuit, on top of the proposed 48 days However, these activities are considered to be quieter in nature and are not likely to create noise issues for neighbouring properties.



ii. Moto Trials area:

The site also contains a small amount of natural terrain in the northern areas of the property that is suitable to conduct Moto Trials. No permanent infrastructure or buildings exist as they are not essential for Moto Trials.

6.2.2. Proposed facilities - Building infrastructure

i. Administration building:

A multifunction double storey administration building is proposed to be recessed into the natural terrain of the site. The Bottom Level will predominately cater for Event and activities admin / Canteen / Storage / Shelter while the Upper Level will cater for Event and activities overseeing viewing platform / Club meeting rooms / Community shelter / Function room / Bar / Kitchenette / Balcony areas.

These rooms would be made available for use by community groups such as Landcare, Lions, Rotary, Outside clubs, School sports, orienteering groups, Country Fire Authority etc.

ii. Amenities blocks:

New amenities blocks are proposed. One positioned near the Nursery / Junior riding areas, the other incorporated into the new Administration building. Showers are included to provide for overnight camping.

iii. Payment station:

This will be the main entrance point to McAdam Park. On practice days casual and club users will check in at Pay Station prior to entering park.

iv. Noise testing station / workshop:

A noise testing station will be constructed so as to allow consistency of measurements regardless of prevailing weather conditions. An adjoining workshop will also be provided to assist riders with any mechanical procedures deemed necessary to assist in getting overly loud bikes to comply with noise restrictions.

v. Machinery storage:

A shed for storage of plant and equipment (track maintenance machinery etc.) positioned adjacent to Earthmoving / Heavy Machinery Training area.

6.2.3. Proposed facilities - Motorcycle Riding areas

i. Arena:

Situated adjacent to Administration building, the Arenas will be a flat area recessed into the existing terrain capable of catering for not only motorcycle events but a wide variety of sports and / or displays. 10 metre high earth banks for benched for spectator viewing will also be established which is integral to noise attenuation.

ii. Motorcycle Riders Education area:

Asphalt area of approximately 70 x 50 metres to accommodate formal rider training for motorcycle licence testing purposes. The administration building will provide supporting amenities including Instruction room / tea room / storage room meeting room and amenity facilities.



As illustrated in Section 5.8 above, statistics indicate that motorcycle related fatalities on Victorian Roads contributed 13.6% of the annual road toll in 2007. In order to address this area the SMCC has proposed to establish a rider education program as part of McAdam Park Masterplan. This facility will be used to provide individuals with a safe and supervised area to obtain a motorcycle learners licence.

iii. A.T.V. / Farm bike area:

Earth / gravel area of approximately 10,000 sq. metres to accommodate formal rider training for A.T.V. and Farm bike safety purposes. The administration building will provide supporting amenities including Instruction room / tea room / storage room and amenity facilities.

Again, as illustrated in Section 5.8 above, ATV/Quadbikes accidents are the number one cause of workplace deaths on Victorian Farms. As with the Rider Education area, this area will be used to skill and educate ATV owners on the safe and correct handling procedures for ATV’s. This area has become further important, following the release of the Victorian Coroners findings into quad bike accidents and his call for mandatory training of all operators prior to purchasing an ATV.

iv. Motocross Circuit – Junior:

A new 1.6.km motocross circuit located toward the centre of the property and away from neighbouring properties is proposed. It will include:


• Starting grid with 40 rider start gate, and starters control tower.

• Powered Clubroom building, amenities block (see Item 6.2.2.ii), pits, race control tower.

• In ground watering system to 250 tap/sprinkler outlets supplied by an independent water collection and storage system.

• Public address system.

The location of this track in the centre of the property is important, as it will use the natural terrain of the property to reduce the likelihood of noise spill associated with the use of this track.

v. Nursery area:

This will be an entry level riding area for novice riders (e.g. Pee Wee riders / children up to 16 year old learner riders / novices on ‘Fun Bikes’ non racing bikes). Proximity of this area will be close to the Junior Motocross Circuit to enable close supervision of activities.

vi. Natural Terrain Circuit:

A part time circuit offering a less technical, more casual riding experience for those riders and/or bikes not suited to the rougher circuits which have obstacles and jumps. This circuit would occasionally be used for senior riders to vary their riding experiences.



vii. Off Road coaching area:

A sole purpose separate area for coaching is needed to provide a safe traffic free environment for coaches whilst taking individual or group instruction sessions. This area to be strictly for coaching purposes only.

viii. Trail Riding / Multi purpose areas:

The McAdam Park Masterplan proposes the establishment of a ‘micro trail system’ of intertwining trails across the site for recreational Trail Riders. These areas would also be suitable for crossover user groups such as mountain biking, orienteering, scouts, 4wd etc. Extensive tree planting (approx. 170 acres) will be undertaken in these Trail Riding / Multi purpose areas.

As identified in the data analysis, by providing a controlled/regulated site for trial riding, the incidents of illegal use of State forests and National and State Parks will be reduced. It could also be used as an educational area for riders to learn how to ride appropriately in State forests and National and State Parks.

6.2.4. Proposed facilities - Other

i. Camping area:

The Masterplan proposes a camping area to be located within parking area between Arena and junior circuit / nursery area. Casual camping is proposed for visitors staying for two day events/activities. No extra infrastructure is needed for this purpose as campers would utilize proposed car parks and amenities blocks.

ii. Earthmoving / Heavy Machinery Training area:

An area has been designated for Earthmoving/Heavy machinery training (ie. (Bobcat, Excavator, Front-end Loader/Backhoe) which could coordinated with a possible TAFE College partner.

iii. 4WD training area:

A potential site for 4WD training has been included in the Masterplan. The northern areas of McAdam Park (in the lower gullies) have a full variety of terrain which would provide for all levels of difficulty needed for 4WD training activities.

iv. Mountain Bike area:

Given the synergies between motorcycling and mountain biking, the Masterplan also allows for a dedicated area to be set aside for mountain bike activities. These activities include downhill, trail riding as well as sharing of the forested multipurpose areas for cross country mountain bike riding and events.

The SMCC has had preliminary discussion with a locally based Mountain Bike Club who has indicated interest in basing its club activities on site.

6.2.5. Other development

i. Tree Plantings:

The Masterplan proposes to extensively plant out approximately 170 acres of the property with trees and shrubs native to the area. These plantings may enable McAdam Park to be involved in a Carbon Sequestration program, such as described in the federal government ‘Carbon Pollution Reduction Scheme’ and ‘National Carbon Accounting Toolbox’ to reduce its carbon footprint.



ii. Noise attenuation – Tree buffer zone / earth banking:

It is recognised that associated noise form motorcycle use is the most challenging issues for the motorcycling industry. Thus the new McAdam Park Masterplan proposes a strict level of noise regulation and compliance, well beyond those currently imposed by government agencies, with the aim of reducing overall noise emissions to even lower levels than those currently experienced at McAdam Park.

A goal of the Masterplan is for McAdam Park to become an industry leading test case facility for the control of noise emissions by showing what can be achieved with relatively simple but strict controls being employed at all times.

The Masterplan proposes a 20 metre wide treed buffer zone to the southern and western boundaries that will assist in noise reduction as well as lessening visual impact of activities within McAdam Park.

Also helping in future noise attenuation will be the following;

• More activity to be directed to new circuits in centre of property

• Spreading the riding around over a larger area

• The recent introduction of electric motorcycles to the market. Sales of this type of bike are expected to increase dramatically as innovative technology already taking place makes the bikes attractive to riders

iii. Water supply:

Water supply is crucial for efficient dust suppression on motocross tracks. Dust control is required not only for safety reasons but to minimise loss of top soils via wind erosion. Catchments over the last ten years have shown that an increase in capacity of current water supply (dams) will be necessary to fulfil future needs.

iv. Internal road system:

An internal road system will be developed to enable access to all areas of the property. Some will only be for management and first aid purposes to enable vehicular access to all reaches of McAdam Park.

v. Fencing:

A new 1.8m high external wire mesh fence to all boundaries of the properties is included in the Masterplan.

6.3. Proposed Operational Schedule The following summary outlines the proposed operational schedule for facilities proposed under the McAdam Park Masterplan. It should be noted that whilst this is the desired operating schedule for the facility, the approved operational schedule will be dependent upon the outcomes of the planning approval process, which is outside the scope of this Report.

Operational activities at McAdam Park can be classified into two types of activities:

1. Noise generating activities which include Motocross practice or racing, Enduro practice or racing and Trail riding areas; and

2. Non-noise generating activities which include non-motorcycle user groups and quieter Motorcycling activities (ie. Rider Education Programs, all training/coaching activities, and Moto Trials).



Table 11 below summarises how each facility at McAdam Park is classified according to these operational activities:

FACILITY Noise

Generating Facility

Non-Noise Generating

Facility

International Motocross Circuit

Moto Trials area

Administration building

Arena

Motorcycle Riders Education area

A.T.V. / Farm bike area

Motocross Circuit – Junior

Nursery area

Natural Terrain Circuit

Off Road coaching area

Trail Riding / Multi purpose areas

Camping area

Earthmoving / Heavy Machinery Training area

4WD training area

Mountain Biking areas

Table 11 – McAdam Park Facilities & Noise Classification

The SMCC has developed a proposed management plan for McAdam Park that outlines guiding principles for its operation. Under the proposed management plan Noise generating activities will be restricted to:

• Weekend operating hours of 8am to dusk or 7pm, whichever is the earlier.

• Weekday operating hours of 10am to dusk or 7pm, whichever is the earlier.

• Any night racing activities in the Arena will be finish by 11pm.

• One Sunday per quarter to be nominated as a quiet day for the facility with no noise generating activities permitted at the Facility.

The proposed operating schedule for Non-noise generating activities is as follows:

• Operating hours for all operating days from 8am to dusk or 7pm, whichever is the earlier.

6.4. Outcomes from Masterplan The successful implementation of the Masterplan will provide a range of community and social outcomes. These include:

• Promotion of safe motorbike riding practices

• Provide safe riding training for junior and seniors in all areas of motorcycle activity, including but not limited to:

– Motorcycle license training;

– Off-road motor cycle training;

– Motocross training;

– Pee-wee and junior motorcycle training;



– ATV and farm motorcycle education and training; and

– Motor cycle safety and maintenance programs.

• Promote motorcycle education in-line with TAC programs.

• Promote ATV and farm motorcycle education in-line with Work Cover programs.

• Provide and promote a “safe riding” venue for off-road motorcycling that provides an alternative to National Park Areas.

• Provide an International Standard facility for motocross and other motorsport events that will enable the region to attract regional, national and international events, thereby providing economic benefit to the region and Victoria as a whole.

• Provide a specialist venue for motorcycle learner and license training and testing.

• Provide a specialist venue for heavy machinery training.

• Provide a flexible motorsports event arena for various motorsport activities and events.

• Provide a recreational facility that can be shared with other passive community user groups such as the Country Fire Authority, Orienteering Groups, Mountain Biking, schools etc.

• Provide a service to community by providing static water supply for fire emergencies, community disaster assembly area with administration rooms available for such an event, open spaces with amenities for field day demonstrations etc.

• Provide a world’s best practice management model for the facility.

• Provide a world’ best practice model for reduction of noise impact from motorsports.

6.5. Indicative Capital Costs Based on the Masterplan, a Quantity Surveyor has estimated the following indicative cost estimate that suggests a total capital works program of $4.533M for the development McAdam Park into a Regional Level Motorcycle Complex.

After reviewing the indicative cost estimate and prioritising elements of the Masterplan, the cost estimate has been split into 2 stages of development. A detailed breakdown of this cost estimate in included in Appendix 2, but a summarised breakdown of Stage 1 & Stage 2 is included in Table 12 and Table 13 below:



ItemAmount

$M

Administration & amenities building (Stage 1) $0.640

Learner Rider Education Area $0.322

Gravel Carpark $0.012

Internal Road Network $0.100

Track Establishment/Riding Areas $0.444

Reforestation $0.050

Main entry control point $0.050

Noise testing station / workshop $0.050

Miscellaneous (Dams/Signage) $0.035

Preliminaries $0.051

Project Contingency $0.069

Consultant Fees $0.177

Indicative Total $2.000

Table 12 – McAdam Park Masterplan (Stage 1 Preliminary Cost Estimate)

Item (Stage 2 Works)Amount

$M

Lvl 2 of Administration & amenities building (Stage 2) $0.960

Creation of car parking (ongrade) $0.052

Spectator earth embankments at Arena $0.165

Further reforestation works $0.050

New amenities block in camping ground $0.150

Machinery storage shed $0.080

Bridge through trail riding area $0.600

Preliminaries $0.062

Project Contingency $0.188

Consultant Fees $0.226

Indicative Total (Stage 2 Works) $2.533

Table 13 – McAdam Park Masterplan (Stage 2 Preliminary Cost Estimate)



It should be noted, that these costs exclude cost escalation and any Authority Charges.

Furthermore, the cost estimates are a base rate preliminary estimate which is premised on extensive work being undertaken by volunteers with some donation of materials. It is envisaged that volunteer labour/donated materials will be utilised in the following areas:

• Donation & planting of trees for reforestation works;

• Earthworks for the creation of tracks;

• Earthworks & donation of clean fill to site for noise attenuation walls;

• Earthworks for car park establishment;

• Earthworks for dam construction;

• Building works.



7. MANAGEMENT OPTIONS

The following information provides a summary of the key ownerships and management recommendations associated with the operation of McAdam Park. It is assumed in all of the management options identified that paid professional support is necessary to provide a clear focus on promoting and developing the facility to secure its long term viability. The professional appointment will require direction through a formal management structure to ensure that the requirements of current club operations, casual daily users and commercial opportunities are met whilst also ensuring that desired community benefits are delivered. These aspects have been considered below.

7.1. Land Ownership Options There are a number of options available for acquiring ownership of the McAdam Park site from the McAdam family. The options for ownership of the site will depend on where the funding to acquire the Land comes from. These include:

1. Surf Coast Shire acquires the ownership of the land;

2. The SMCC acquires the ownership of the land;

3. State Government acquires the ownership of the land; or

4. Federal Government acquires the ownership of the land.

After reviewing the ownership arrangements for other sporting facilities, the preferred option is for the Land to be acquired by the State Government and then management of facility delegated to a responsible management authority outlined the Management Model Options section below.

7.2. Management Model Options Upon the review of industry trends, previous project experience and benchmarking of facilities, three main options in relation to the overall management of the proposed component facilities of the McAdam Park site exist, these being:

1. Management by Local Government (Surf Coast Shire).

2. Management by a locally appointed not for profit board established solely for the purpose of operating McAdam Park.

3. Management by an established Independent Management Group (e.g. A Motorsport Trust currently operating a portfolio of similar sites).

Table 14 below summarises the PMI (Plus, Minuses and Issues) Analysis conducted for each management option:

Management Option Pluses Minuses Issues

Option 1 – Management by Local Government (Surf Coast Shire)

High focus on recreational benefit, diversity of usage and access.

Not considered to be a high priority for local government

Capacity does not exist within the local government to perform this role

Clubs would be unwilling to relinquish control of the to a

May not be in a position to maximise commercial opportunities.



Management Option Pluses Minuses Issues

government entity

Could adversely impact on volunteer base to the detriment of the long term growth of the club and associated activities

Option 2 – Management by an Independent Local Board

Understand the local issues and familiar with current site operations

Cost effective solution by potentially utilising and expanding an existing structure

Long term planning would be a focus for the board

Potential to co-opt members with a strong Commercial understanding

Most likely to ensure that role of clubs is maintained

Need a very clear delineation of risk and responsibility between club and board (i.e. maintenance, accessibility and event management).

Board would need to be an eclectic group of individuals with a mix of skills (i.e. commercial, law, finance, tourism, etc).

Preferably the Board Members, whilst having an interest in motor sport, should be detached from the day to day club management issues

Option 3 – Management by an established Management Trust

Ability to gain specialist management expertise.

Singular focus for management group.

Minimise public risk associated with management of site.

Long term planning likely to be a focus.

Likely to have a stronger commercial focus than other options.

Specialist expertise within the motor industry

May impact on diversity of use with a greater focus on commercial activity.

There are a limited number of specialist management groups and available expertise.

Likely to be a higher cost to than Option 2.

Need a very clear delineation of risk and responsibility (i.e. maintenance, accessibility and event management).

There is limited commercial opportunity for a management group.

Sports Clubs are more likely to have a reduced role on the management of individual facilities.

Table 14 - Management Options PMI Analysis

Based on the results of the PMI analysis it is recommended that Option 2 be pursued on the grounds that:

• It is consistent with the desire by the club, casual users and other motorsport bodies to retain their independence.

• It will, subject to the appropriate terms of reference being established maintain a strong focus on club and volunteer activity; community wellbeing; access and equity of use.

• It will ensure optimal participation in sport and recreation activity.



• It is beneficial to retain local control and appoint board members who understand local issues and have the ability to generate local partnerships

The following figure outlines the proposed management structure for the management of the McAdam Park Regional Motorsport Facility.

Figure 23 - Proposed Management Structure for McAdam Park

7.3. The Board of Management The role of the Board of Management will be subject to a “terms of reference” ensuring existing club representation and access to current facilities on site is maintained. It is the intention to ensure that the expanded complex is governed by an overall management committee which acts as an umbrella organization. The requirements of individual motorsports will be fed into it the Board either directly through the paid professional manager (club representation specific) or through the sub-committee via representation on the Board. It is anticipated that the Board of Management will consist of:

• A minimum of 7 and maximum of 11 members

• Membership to provide a balanced representation of individuals of influence and authority to ensure strong and effective leadership, management reporting and decision making.

• 2 representatives from local government (an officer and elected member) with responsibility to ensure due process is being followed in decision making processes.

• A maximum of 2 representatives from existing clubs, rotated on a six monthly basis are required to ensure existing club interests are adequately reflected in the decision making processes. These members are to be nominated by the McAdam Park sub-committee.

• The Professional Manager is to facilitate the operation of the Board

• The Chair is to be nominated by members of the board and rotated annually.

Board of Management

Professional Venue Manager

Advisory Sub-Committee

Club

Club

Club

Club

Terms of Reference

Operational Sub-Committees



Roles and responsibilities of the Board and its Members would include:

• Strategic Planning: Advising and supporting the paid professional, clubs and recreational participants on the future direction of McAdam Park

• Management of Financial Resources: Determining the allocation of resources within their authority. Securing additional resources through commercial sponsorship opportunities or other sources

• Enhancing the public image: Of the site, its activities and motorsport generally

• Management of Staff: Professional staff associated with the precinct

7.4. The Advisory Sub Committee and Operational Sub Committee’s The Advisory Sub committee will be formed from representation from the individual sports/clubs and subject to a separate term’s of reference. The purpose of the Advisory sub committee is to ensure that all club and motor sport bodies associated with McAdam Park have a voice and an ability to influence both the day to day management of the site and its long term strategic direction.

The key objectives of the Advisory Committee are as follows:

• Provide ‘a voice’ for user groups in relation to the effective management and operation of McAdam Park.

• Provide advice to the Board in relation to the continued development of events and community activities.

• Provide advice to the Board on site usage and priority of use.

• Provide advice to the Professional Manager and Board on individual sports requirements, emerging issues and changes to any regulatory requirements.

The operational sub committees (sports or club representative bodies) will report to the Advisory sub-committee. The Sub-committee’s will be expected to represent the views of various sub committees and be the vehicle through which dialogue will be channelled either directly to the professional manager or at the Board of Management. The level of autonomy of the individual sporting activities and their level of representation on the Advisory sub committee will vary from club to club depending upon prevailing circumstances and the individuals involved. This will need to be determined but may include:

• Equal representation, or

• Proportional representation according to size or seniority of the constituent clubs.

The critical aspect however is that the majority of members must agree to the management structure and that it must be perceived as fair and not disadvantage the operations of existing clubs and sports.

To ensure effective governance arrangements an alliance agreement will need to be drafted between clubs to provide an agreed understanding of the operating arrangements and commitments.

7.5. Professional Venue Management Under the structure identified the Board of Management will provide advice and direction to the professional manager at McAdam Park who will be responsible for the day to day management of the facility including:



• Maintenance of all facilities • Management of site building(s)

• Event bookings • Revenue collection

• Marketing • Fund Raising

• OHS • Scrutineering of motor vehicles

• Insurance • Social /Function facilities

• Security • Car Parking

• Administration offices • Medical cover

• Vehicle Recovery arrangements • Event bidding and organisation

• Media provisions and arrangements • Administration and paperwork associated with motorsport events

• Volunteer management system (including discount system for club members who volunteer)

Initially the professional manager will be employed on a full time contract subject to standard employment terms and conditions which will require on site presence at weekends, where the significant usage will occur.

7.6. The role of individual sports clubs It is anticipated that the role of Individual sports clubs would include:

• Day to day running of the individual sports;

• Responsibility for liaising with the professional manager and main board to ensure they understand and share the aims of the clubs as a whole.

• Coach development;

• Development of club links with schools and other educational institutions;

• Volunteer management;

• Club social events;

• Individual Club Fund raising

• Competitions coordinated through the professional management team

7.7. Management Reporting It is recommended that management reporting will include, but is not limited to:

• Risk Management – number of incidents documented, incident resolution, OH&S, risk management planning, insurances, etc.



• Financial Performance – income and expenditure for the month (actual versus budget) income and expenditure for the year to date (actual versus budget), number of visitations, number of events, income received by activity, etc.

• Management Issues – upcoming events, marketing activity, etc.

7.8. Financing It is anticipated that the Board will establish the fees associated with the hire and day to day use of McAdam Park. It will be the responsibility of each club to negotiate through the Advisory Sub Group their requirements for track time annually. Each resident club will be responsible for collecting membership fees from their members and managing their club accounts. All funds payable to the Board will be utilised to establish the annual operating budget, the funding of the professional manager and to set aside sinking funds for the ongoing repair and replacement of facilities. Income will be generated, although not necessarily limited to:

• The hire of facilities to resident clubs on an annual basis

• The hire of track facilities to individuals or groups (when not required by resident clubs)

• Day to day casual entry fees

• Sponsorship

• Events

• On-site retail/merchandise

• Commercial hire of facilities for riding schools, rider training etc



8. FINANCIAL MODEL

8.1. Methodology To assess the Business Case for the development of McAdam Park the consulting team have performed indicative financial models for five (5) different operational situations (ie. number of operational days) under key business model assumptions identified in this report.

The models constructed are designed to be indicative only, based on forecast expectations for cost and revenue structures of the McAdam Park Regional Motorsport Facility.

Operational Schedule

As discussed in Section 6.3 above, the approved operating schedule will be dependent upon the outcomes of the planning approval process, which is outside the scope of this Report. As such, the financial modelling has assumed a range of operational situation for the facility starting with 50 weekends per year and 1 weekday (3 days per week in total) through to 50 weekends and 5 weekdays (7 days per week in total).

Net Present Value (NPV)

The model has been based on the discounted cash flow (DCF) methodology which discounts future cash flows to adjust for risk and the time value of money to estimate a net present value of the future cash flows.

If the NPV is positive then the project or business' cash flows are sufficient for the project to be financially viable. If the NPV is negative the project is not economically viable in its own right, and prima facie, would not attract private sector interest.

Timeframes

The analysis is conducted over the first 10 years of operation.

Sensitivity and scenario analysis

It should also be noted that a number of subjective assessments were used to develop the cash flow forecasts, although objective assumptions have been relied upon wherever possible. Sensitivity analysis on key financial assumptions has been conducted in an attempt to indicate a reasonable range of results which provides a greater degree of comfort than a single point estimate. The usage and the variable costs have been proportionally increased over the 10 year operating period for three different operational scenarios (Conservative, Realistic, Optimistic).

8.2. Assumptions The assumptions used to support the financial model have been based on research undertaken into the motorcycling industry and represent the most likely business model for the proposed McAdam Park Masterplan. Income and expenditure figures have been benchmarked against similar type facilities where possible. A summary of the assumptions is as follows:

8.2.1. General Assumptions

• All financial data is GST exclusive

• Although riders will cross over to ride on different tracks at the facility. This model uses numbers based on the preferred motor bike discipline.

• The number of riders for each riding discipline has been determined based upon discussions with the SMCC around current and projected rider numbers.



• The Rider Education Operator will utilise the facility 7 days a week between hours of 9am and 6pm.

• Track Riding activities assume usage from 8am to dusk or 7pm, whichever is the earlier on weekends and 10am to dusk or 7pm, whichever is the earlier on weekdays.

• The Facility will be open for 50 weekends per year and 50 weeks of weekday use. The number of operational weekday usage varies in the model ranging from 1 weekday through to 5 week days. The following Table summaries the complete number of days the facility will be open under each operational situation.

Total Operating Days per

Weekend Weekday Total Weekend

Days Open Total

Weekdays Open Total Annual

Operating Days

Situation 1 2 1 100 50 150

Situation 2 2 2 100 100 200

Situation 3 2 3 100 150 250

Situation 4 2 4 100 200 300

Situation 5 2 5 100 250 350

• Not all Track Riding facilities will be operational 100% of the total annual operating days. The following tables summarises the Track Riding Facilities percentage use of the total operating times outlined above:

Arena Natural Terrain Trail Riding

Junior MX Circuit Moto-Trials

Track Percentage of Use 30% 30% 100% 100% 100%

The number of usage days on the International MX Circuit to 48 Days (see Section 6.2.1.i on Page 41).

• The model uses a series of “ramp up” rates that factors in different levels of success of the facilities operating budget. The following table indicates the “ramp up” rates have been used in the operational scenario:

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Y 10

Conservative 45% 50% 55% 60% 65% 70% 75% 80% 85% 90%

Realistic 60% 65% 65% 70% 75% 80% 85% 90% 95% 100%

Optimistic 70% 75% 80% 85% 90% 95% 100% 105% 110% 115%

(eg. In Year 1 under the Conservative Scenario, the model assumes that the facility will only achieve 45% of the operating budget).

• The Net Present Value (NPV) calculation assumes an initial capital input of $5 million ($3 million for purchase of land and $2 million for capital works) towards the facility.

8.2.2. Revenue Assumptions

• Revenue projections are solely based upon motorcycle track usage of the venue. Revenue from other users (ie. Mountain Bike, 4WD Training, Rider Education programs etc) have not been included. Instead rental/lease figures have been assumed to include revenue from these users.

• No revenue has been assumed from Sponsorship or Naming Rights of the Facility due to current economic climate.

• Riding revenue assumes an average riding mix of 78% adult riders (paying $20 per ride) and 22% junior riders (paying $15 per ride).



• Membership Revenue assumes that 25% of all riders are members with an average mix of members at 84% (paying $100 per year) and 16% junior (paying $50 per year). Non-members (75%) pay a non-membership fee of $20 per visit.

• Revenue assumes that riders will pay a Riding Fee per visit of $20 per Adult and $15 per Junior on top of Annual Membership Fees for members or Non-Membership Fee for Non-members.

• SMCC has indicated that they are willing to commit up to $20,000 per year as an annual rental/licence fee for the facility in return for discounted riding fees for members and events. This has been excluded from the current model as it estimated that the impact on revenue will be minimal (ie. reduced Riding Fee revenue offset by increased Lease/Rental revenue).

• Canteen Sales assume $2 expenditure per rider per visit, $1 expenditure per visitor less 35% of all sales for Cost of Goods sold. Visitor numbers are assumed at 50% of total rider numbers. Excludes expenditure associated with other tenant users (ie Rider Education Operator, Mountain Bike etc.)

• Bar Sales assume $5 expenditure per adult weekend user less 35% of total sales for Cost of Goods Sold.

• Merchandise sales assume annual merchandise sales of $60,000 less 50% of annual sales for Cost of Goods Sold.

• Revenue includes $50,000 in Annual Tennant Lease/Rental Income. This consists $20,000 from SMCC, $15,000 from Rider Education Operator and $5,000 each from ATV Farm Bike Training Operator, Heavy Machinery Training Operator and Mountain Bike Club.

• Due to the variables and complexities between Events, three event types have been assumed with different profit scenarios. Event profits include revenue from Gate Takings, Food & Beverages, Merchandise, Sponsorship and Naming Rights associated with each event. The following tables summarises the Types of Events, Profit per Event and the number of Events assumed under each different operational scenarios:

Annual Number of Events

Types of Events Net Profit Per Event Conservative Realistic Optimistic

A Grade (International/National Standard) Event $20,000 0 1 2

B Grade (National/State Standard) Event $8,000 1 3 4

C Grade (Regional/Club Standard) Event $1,000 4 6 9

Total Number of Events 5 10 15

• Due to variables and complexities associated with Corporate Event Days, three scenarios have been modelled. The following table provides an overview of the assumptions used to model the revenue from Corporate Event Days with

Conservative Realistic Optimistic

Attendance 10 15 20

Number of Corporate Event Days 10 12 15

Annual Attendees 100 180 300

Price Per Person $200 $200 $200 Annual Revenue for Corporate Event Days $20,000 $36,000 $60,000

Annual Net Profit for Corporate Event Days $6,450 $9,645 $20,200



8.2.3. Expenditure Assumptions

• Includes straight-line depreciation costs based on $1m over 30 years.

• An allowance of $12,000 for Electricity costs has been made, that increases by 5% per annum.

• An allowance of $20,000 for Insurance costs has been made, that increase by 5% per annum.

• An allocation of $20,000 has been made for miscellaneous Equipment, that increases by 5% per annum.

• Canteen will be a basic operation with vending machines offering food and drinks. An allowance of $30,000 has been made for expenses associated with the operation of the Canteen, including a Part-Time Staff member (if required).

• All Repairs & Maintenance to tracks include a 5% annual increase due to ongoing wear and tear.

• An allowance has been made for a full-time staff member (including all on costs and a small additional operating budget) that increases by 2.5% per annum. The following table summarises the Management Costs for the different operating situations of the facility:

Management Costs

Operational Situation Annual Operational Days Annual Cost

Situation 1 (3 Operating Days) 150 $60,000





• An allocation of $5,000 per annum has been made for Accounting Fees.

• An allocation of $25,000 per annum has been made for Marketing & Promotion

• An allocation of $12,000 per annum has been made for Bank Fees.

• An allocation of $3,000 per annum has been made for License Submission.

• An allocation of $1,000 per annum has been made for Postage.

• An allocation of $2,000 per annum has been made for Printing & Stationary.

• An allocation of $5,000 per annum has been made for Waste Management.

• An allocation of $10,000 has been made for Fuel/Oil that increases by 5% per annum.

• An allocation of $1,000 has been made for Interest charges that increase by 5% per annum.

• An allocation of $30,000 has been made for Permits that increases by 5% per annum.

• An allocation of $6,000 has been made for Telephone expenses that increase by 5% per annum.

• An allocation of $3,000 has been made for Trophies that is linked to the relevant “ramp up” rate.



8.3. Models

8.3.1. Situation One – 3 Operating Days This situation is based on the following facility usage:

• Usage on Saturday and Sunday and on 1 weekday.

The following table summarises the Income, Expenditure & Profit/Loss for the different operational scenarios for Situation 1:

Income Expenditure Profit/Loss Income Expenditure Profit/Loss Income Expenditure Profit/Loss

Year 1 $294,207 $363,683 -$69,477 $417,321 $364,133 $53,187 $513,488 $364,433 $149,055Year 2 $321,513 $375,383 -$53,870 $444,627 $375,833 $68,794 $540,795 $376,133 $164,661Year 3 $348,819 $387,605 -$38,785 $444,627 $387,905 $56,722 $568,101 $388,355 $179,746Year 4 $376,126 $400,372 -$24,246 $471,933 $400,672 $71,262 $595,407 $401,122 $194,286Year 5 $403,432 $413,711 -$10,279 $499,240 $414,011 $85,229 $622,714 $414,461 $208,253Year 6 $430,738 $427,648 $3,090 $526,546 $427,948 $98,598 $650,020 $428,398 $221,621Year 7 $458,045 $442,214 $15,831 $553,852 $442,514 $111,339 $677,326 $442,964 $234,363Year 8 $485,351 $457,436 $27,915 $581,159 $457,736 $123,423 $704,633 $458,186 $246,447Year 9 $512,657 $473,346 $39,311 $608,465 $474,096 $134,819 $731,939 $474,096 $257,843Year 10 $539,964 $489,978 $49,986 $635,771 $490,278 $145,493 $759,245 $490,728 $268,517

Optimistic ScenarioCollective Summary - Operating Situation 1

Conservative Scenario Realistic Scenario

Table 15 - Situation 1 - 10 Year Collective Summary

The table above shows that the facility operating for 3 days per week will:

• Under the Conservative Scenario, operate at a loss of $69,477 in the first year and continue to operate at a loss for the first 5 years, before generating a profit.

• Under the Realistic and Optimistic Scenarios, the facility will generate a profit from its first year of operation.

8.3.2. Situation Two – 4 Operating Days This situation is based on the following facility usage:

• Usage on Saturday and Sunday and on 2 weekdays.

The following table summarises the different operational scenarios for Situation 2:


Year 1 $342,187 $363,683 -$21,496 $481,294 $364,133 $117,161 $588,124 $364,433 $223,691Year 2 $374,824 $375,383 -$559 $513,932 $375,833 $138,098 $620,762 $376,133 $244,628Year 3 $407,462 $387,605 $19,857 $513,932 $387,905 $126,027 $653,399 $388,355 $265,044Year 4 $440,099 $400,372 $39,728 $546,569 $400,672 $145,897 $686,036 $401,122 $284,915Year 5 $472,737 $413,711 $59,026 $579,207 $414,011 $165,196 $718,674 $414,461 $304,213Year 6 $505,374 $427,648 $77,726 $611,844 $427,948 $183,896 $751,311 $428,398 $322,913Year 7 $538,012 $442,214 $95,798 $644,481 $442,514 $201,968 $783,949 $442,964 $340,985Year 8 $570,649 $457,436 $113,213 $677,119 $457,736 $219,383 $816,586 $458,186 $358,400Year 9 $603,286 $473,346 $129,940 $709,756 $474,096 $236,110 $849,224 $474,096 $375,127Year 10 $635,924 $489,978 $145,946 $742,394 $490,278 $252,116 $881,861 $490,728 $391,133





• Under the Conservative Scenario, operate at a small loss for the first 2 years of operation before generating increasing profits.

• Under the Realistic and Optimistic Scenarios, the facility will generate a healthy profit from its first year of operation.



8.3.3. Situation Three – 5 Operating Days This situation is based on the following facility usage:

• Usage on Saturday and Sunday and 3 weekdays.



Year 1 $390,167 $383,683 $6,484 $545,268 $384,133 $161,134 $662,760 $384,433 $278,327Year 2 $428,136 $395,883 $32,252 $583,236 $396,333 $186,903 $700,728 $396,633 $304,095Year 3 $466,104 $408,617 $57,487 $583,236 $408,917 $174,319 $738,697 $409,367 $329,330Year 4 $504,073 $421,910 $82,163 $621,205 $422,210 $198,995 $776,666 $422,660 $354,006Year 5 $542,041 $435,787 $106,254 $659,173 $436,087 $223,087 $814,634 $436,537 $378,097Year 6 $580,010 $450,277 $129,733 $697,142 $450,577 $246,565 $852,603 $451,027 $401,576Year 7 $617,978 $465,407 $152,571 $735,111 $465,707 $269,403 $890,571 $466,157 $424,414Year 8 $655,947 $481,209 $174,738 $773,079 $481,509 $291,570 $928,540 $481,959 $446,580Year 9 $693,916 $497,714 $196,201 $811,048 $498,464 $313,033 $966,508 $498,464 $468,044Year 10 $731,884 $514,955 $216,929 $849,016 $515,255 $333,761 $1,004,477 $515,705 $488,772





• Under the Conservative, Realistic and Optimistic Scenarios, the facility will generate a profit from its first year of operation.

8.3.4. Situation Four – 6 Operating Days This situation is based on the following facility usage:

• Usage on Saturday and Sunday and 4 weekdays.



Year 1 $438,147 $383,683 $54,464 $609,241 $384,133 $225,108 $737,396 $384,433 $352,962Year 2 $481,447 $395,883 $85,564 $652,541 $396,333 $256,208 $780,695 $396,633 $384,062Year 3 $524,747 $408,617 $116,129 $652,541 $408,917 $243,624 $823,995 $409,367 $414,628Year 4 $568,046 $421,910 $146,137 $695,841 $422,210 $273,631 $867,295 $422,660 $444,635Year 5 $611,346 $435,787 $175,559 $739,140 $436,087 $303,053 $910,594 $436,537 $474,057Year 6 $654,646 $450,277 $204,369 $782,440 $450,577 $331,863 $953,894 $451,027 $502,867Year 7 $697,945 $465,407 $232,538 $825,740 $465,707 $360,032 $997,194 $466,157 $531,036Year 8 $741,245 $481,209 $260,036 $869,039 $481,509 $387,530 $1,040,493 $481,959 $558,534Year 9 $784,545 $497,714 $286,830 $912,339 $498,464 $414,325 $1,083,793 $498,464 $585,329Year 10 $827,844 $514,955 $312,889 $955,639 $515,255 $440,383 $1,127,093 $515,705 $611,388





• Under the Conservative, Realistic and Optimistic Scenarios, the facility will generate a profit from its first year of operation.

8.3.5. Situation Five – 7 Operating Days This situation is based on the following facility usage:

• Usage on Saturday and Sunday and on 5 weekdays.





Year 1 $486,127 $393,683 $92,444 $673,215 $394,133 $279,081 $812,031 $394,433 $417,598Year 2 $534,758 $406,133 $128,625 $721,846 $406,583 $315,262 $860,662 $406,883 $453,779Year 3 $583,389 $419,123 $164,266 $721,846 $419,423 $302,422 $909,293 $419,873 $489,420Year 4 $632,020 $432,678 $199,341 $770,476 $432,978 $337,498 $957,924 $433,428 $524,495Year 5 $680,651 $446,825 $233,826 $819,107 $447,125 $371,982 $1,006,555 $447,575 $558,980Year 6 $729,281 $461,591 $267,691 $867,738 $461,891 $405,847 $1,055,185 $462,341 $592,845Year 7 $777,912 $477,004 $300,908 $916,369 $477,304 $439,064 $1,103,816 $477,754 $626,062Year 8 $826,543 $493,096 $333,447 $965,000 $493,396 $471,603 $1,152,447 $493,846 $658,601Year 9 $875,174 $509,898 $365,275 $1,013,630 $510,648 $503,432 $1,201,078 $510,648 $690,429Year 10 $923,805 $527,444 $396,361 $1,062,261 $527,744 $534,517 $1,249,709 $528,194 $721,515





• Under the Conservative, Realistic and Optimistic Scenarios, the facility will generate a substantial profit from its first year of operation.

8.4. Recommendation In summary, based upon the financial modelling and its underlying assumptions, a redeveloped facility at McAdam Park would Conservatively generate a “Net Profit” from Year 6 operating 3 days a week, Year 3 operating 4 days per week, and from Year 1 if operating greater than 5 days per week.

Whilst the ultimate number of approved operating days will be dependent upon the outcomes of the planning approval process, which is outside the scope of this Report, the financial modelling undertaken indicates that the facility needs to be operational for at least a minimum of 4 days per week (ie. Saturday, Sunday plus two week days) to be financially viable.



9. FUNDING SCENARIOS

There are 3 Phases to this the development of McAdam Park that will require funding. These are:

1. Acquire the freehold title for the land (approximately $3.4 million)

2. Implement Stage 1 of the Masterplan (approximately $2 million)

3. Implement Stage 2 of the Masterplan (approximately $2.533 million)

9.1. Phase 1 Funding The proposed funding mix to acquire the freehold title of the Land (Stage 1) is as follows:

• State Government $1.0 million

• Federal/Local Government $1.9 million (exact breakdown TBC)

• Club $0.5 million

9.2. Phase 2 Funding The proposed funding mix for the implementation of Stage 1 of the Masterplan (Stage 2) is as follows:

• State Government $1.0 million

• Federal/Local Government/Club/Commercial $1.0 million (exact breakdown TBC)

9.3. Phase 3 Funding The proposed funding mix for the implementation of Stage 2 of the Masterplan (Stage 3) is as follows:

• State Government Federal/Local Government/ Club/Commercial

$2.533 million (exact breakdown TBC)

9.4. Stakeholder Funding Sources

9.4.1. State Government Funding should be targeted from the following areas of State Government:

• Sport and Recreation – State, National & International Motorsport facility.

• Transport Accident Commission – Motorcycle education and training.

• WorkSafe Victoria – ATV and farm motorcycle education and training.

• Parks Victoria – Taking off-road motorcycle riding out of National Parks.

• VicRoads – Motorcycle license testing & education.

• Department of Sustainability & Environment – Environment protection, tree planting & water conservation; Trail Bike initiative funding.



9.4.2. Federal Government Funding should be targeted from the following areas of Federal Government:

• Funding may also be available through the “Carbon Sequestration Program” as described in the Federal Governments “Carbon Pollution Reduction Scheme”.

•

9.4.3. Local Government Funding should be targeted from the following Local Government agencies:

• City of Greater Geelong • Surf Coast Shire

• Golden Plains Shire • Colac-Otways Shire

9.4.4. Club The Club should implement a range of fundraising opportunities and commence discussion to establish commercial partnerships program to raise $0.6m.

9.4.5. Commercial/Other Put together potential “commercial partnership” proposals for large motorcycle manufacturers and large business with local presence and/or link to the motorsport industry, including but not limited to:

• Yamaha • Kawasaki

• KTM • Suzuki

• Honda • Shell

• Local motorcycle retailers • InsureMyRide (insurance)

• Fox • Farm Safe Australia



10. CONCLUSION

From the information collected as part of this report, it is evident that there is a strong need in the Barwon Region for a managed venue to provide a contained, safe and controlled facility for motorcycling riding activities and events.

The City of Greater Geelong is currently without a dedicated motorcycling facility while it explores locations to relocate the Geelong Motocross Club from its Breakwater venue which was closed in 2007 following related noise issues. While other nearby facilities at Meredith and Colac, are not of a comparable standard to Mc Adam Park.

The Masterplan for McAdam Park proposes to meet this need by providing facilities for motorcyclists to undertake a range of riding activities and events. Already established as renowned international and national level motorcycling facility, the Masterplan positions McAdam Park to establish itself as a Regional Level Motorsport & Recreational Complex that caters for the State but in particular, the broader South-West region of Victoria.

The financial modelling indicates that based on the elements of the Masterplan, the facility will start generating a “Net Profit” conservatively, within the first three years of operation if open and operating 4 days per week for motorcycle riding activities.

Whilst the ultimate number of approved operating days will be dependent upon the outcomes of the planning approval process, which is outside the scope of this Report, based upon the financial modelling undertaken it is recommended that the Facility be operational for at least a minimum of 4 days per week (ie. Saturday, Sunday plus two week days) to be financially viable.


Sc 1211 Final Report © Stratcorp Consulting 2003 Appendices

APPENDIX 1


MASTERPLAN



APPENDIX 2


MASTERPLAN COST ESTIMATE

McADAM PARK

MASTERPLAN ESTIMATE

NO. SCOPE QTY UNIT RATE TOTAL

Site area 1,208,582 m² 0 0

Existing areas;‐ International MX circuit 144,764 m² 0 0‐ Existing parking 14,818 m² 0 0‐ Overflow parking 26,354 m² 0 0‐ Existing clubroom 900 m² 0 0‐ Existing amenities block 400 m² 0 0‐ Existing water supplies / dams 2 no. 0 0

New Works (Stage 1)Provision for creation of new water supplies / dams 3 no. 5,000 15,000Creation of user parking areas (Gravel) 600 m² 20 12,000Lvl 1 of Administration & amenities building (Stage 1) 400 m² 1,600 640,000Provision for new learners' area 5,374 m² 60 322,000Provision for natural terrain circuit 49,879 m² 1 50,000Provision for Junior MX circuit Item 47,000Provision for 4WD training area Item 12,000Provision of Nursery riding area Item 7,000Provision for Offroad coaching area Item 14,000Provision forEarthmoving / heavy machinery training area Item 50,000Provision for trail riding area Item 50,000Provision for reforestation including 20m Tree Buffer zone Item 50,000Provision for new internal roads Item 100,000Provision for Moto trials area Item 100,000Provision for new ATV & farm bike area Item 14,000Provision for creation of Arena Item 100,000Provision for Main entry controlled access Item 50,000Provision for Noise testing station / workshop Item 50,000Allowance for directional signage Item 20,000Preliminaries 3% 51,000

Sub Total ‐ Building Costs 1,754,000

Project Contingency 10% 69,000Sub Total ‐ Contingencies 69,000

Consultant Fees 10% 177,000Sub Total ‐ Project Costs 177,000

GRAND TOTAL (Stage 1) 2,000,000

New Works (Stage 2)Lvl 2 of Administration & amenities building (Stage 2) 600 m² 1,600 960,000Creation of car parking (ongrade) 51,726 m² 1 52,000Provision of spectator earth embankments 3,300 m³ 50 165,000Provision for further reforestation m 50,000Provision for new amenities block in camping ground Item 150,000Provision for Machinery storage Item 80,000Provision for bridge through trail riding area Item 600,000Preliminaries 3% 62,000

Sub Total ‐ Building Costs 2,119,000

Project Contingency 10% 188,000Sub Total ‐ Contingencies 188,000

Consultant Fees 10% 226,000Sub Total ‐ Project Costs 226,000

GRAND TOTAL (Stage 2) 2,533,000

NOTE:‐ Cost escalation is excluded‐ Authority charges are excluded‐ Assumes majority of Track Establishment work will be undertaken by Club Volunteers‐ Assumes majority of Trees for reforestation of trail riding areas are donated and planted by Club Volunteers

1 24/04/2009



APPENDIX 3


BUSINESS CASE MODELS

Situation 1 (Financial Model - 50we 1wd)

Master International Arena Natural Terrain Trail Riding Junior Moto-Trials Total

Days OpenWeekends 100 28 30 30 100 100 100Weekdays 50 20 15 15 50 50 50Percentage of Operation 32% 30% 30% 100% 100% 100%

Weekend UsersSaturday 35 20 20 25 25 5 130Sunday 40 20 20 25 30 5 140Average 37.5 20 20 25 27.5 5

Weekdays Average 20 15 15 15 20 2 87

RidersWeekends 1,050 600 600 2,500 2,750 500 8,000 Weekdays 400 225 225 750 1,000 100 2,700 Total Annual Riders 1,450 825 825 3,250 3,750 600 10,700

Rider MixAdult 85% 50% 90% 90% 50% 90%Junior 15% 50% 10% 10% 50% 10%

Riding FeeAdult 20$ 20$ 20$ 20$ 20$ 20$ 20$ Junior 15$ 15$ 15$ 15$ 15$ 15$ 15$

Riding Fee RevenueAdult 78% 24,650$ 8,250$ 14,850$ 58,500$ 37,500$ 10,800$ 154,550 Junior 22% 3,263$ 6,188$ 1,238$ 4,875$ 28,125$ 900$ 44,588

Total Riding Revenue 27,913$ 14,438$ 16,088$ 63,375$ 65,625$ 11,700$ 199,138

MembershipsAdult 100.00$ 100.00$ 100.00$ 100.00$ 100.00$ 100.00$ 100.00$ Junior 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ 50.00$ Non-Membership Fee 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$ 20.00$

Number of Members 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0%Adult 308 103 186 731 469 135 1,932 Junior 54 103 21 81 469 15 743

Non-Membership Fee 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0%Adult 924 309 557 2,194 1,406 405 5,796 Junior 163 309 62 244 1,406 45 2,229

Member RevenueNon-Membership Fees 4,187$ 6,497$ 1,794$ 7,069$ 29,531$ 1,305$ 50,383$ Adult 84% 30,813$ 10,313$ 18,563$ 73,125$ 46,875$ 13,500$ 193,188$ Junior 16% 2,719$ 5,156$ 1,031$ 4,063$ 23,438$ 750$ 37,156$

Total Membership Revenue 37,718$ 21,966$ 21,388$ 84,256$ 99,844$ 15,555$ 280,727$

Canteen RevenueSalesPer rider per visit 2.00$ 2,900$ 1,650$ 1,650$ 6,500$ 7,500$ 1,200$ 21,400$ Per visitor 1.00$ 725$ 413$ 413$ 1,625$ 1,875$ 300$ 5,350$ Visitors Numbers (% of riders) 50% 725 413 413 1,625 1,875 300 5,350 CGS (35%) 35% (1,269)-$ (722)-$ (722)-$ (2,844)-$ (3,281)-$ (525)-$ (9,363)-$

Total Canteen Revenue 2,356$ 1,341$ 1,341$ 5,281$ 6,094$ 975$ 17,388$

Bar Revenue$5 per adult weekend user 5.00$ 4,463$ 1,500$ 2,700$ 11,250$ 6,875$ 2,250$ 29,038$ CGS (35%) 35% (1,562)-$ (525)-$ (945)-$ (3,938)-$ (2,406)-$ (788)-$ (10,163)-$

Total Bar Revenue 2,901$ 975$ 1,755$ 7,313$ 4,469$ 1,463$ 18,874$

Merchandise/Pro-Shop RevenueSales 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 60,000$ CoGS 50% (5,000)-$ (5,000)-$ (5,000)-$ (5,000)-$ (5,000)-$ (5,000)-$ (30,000)-$

Total Merchandise/Pro-Shop Revenue 5,000$ 5,000$ 5,000$ 5,000$ 5,000$ 5,000$ 30,000$

Total Riding Related Revenue 75,888$ 43,719$ 45,571$ 165,225$ 181,031$ 34,693$ 546,126$

Other Revenue Opportunities

Tennant Rental/LeasesRider Education OperatorSporting Motorcycle ClubATV Farm Bike EducationHeavy Machinery TrainingMountain Bike

Total Rental/Lease Revenue

Events Conservative Realistic Optimistic Conservative Realistic OptimisticGrade A (International/National) 0 1 2 -$ 20,000$ 40,000$ Grade B (National/State) 1 3 4 8,000$ 24,000$ 32,000$ Grade C (Regional/Club) 4 6 9 4,000$ 6,000$ 9,000$

Total Event Revenue 5 10 15 12,000$ 50,000$ 81,000$

Corporate EventsConservativeRealisticOptimistic

Total Event Profit

8,000$ 1,000$

Number of Events

30,000$ 5,000$

Profit Per Event20,000$

Annual Rental/Lease15,000$

5,000$ 5,000$

-$

Annual Profit Per Scenario6,450$ 9,645$

20,200$

Revenue Page 1 of 5


Income Conservative Realistic Optimistic Commentary

Rider Fees 199,138$ 199,138$ 199,138$ Membership 280,727$ 280,727$ 280,727$ Canteen

Sales 26,750$ CGS 9,363-$ Gross 17,388$ 17,388$ 17,388$ 17,388$

BarSales 29,038$ CGS 10,163-$ Gross 18,874$ 18,874$ 18,874$ 18,874$

Merchandise/Pro-ShopSales 60,000$ CGS 30,000-$ Gross 30,000$ 30,000$ 30,000$ 30,000$

Other Income OpportunitiesTennant Rental/Leases 30,000$ 30,000$ 30,000$ Event Profit

Conservative 12,000$ -$ -$ Realistic -$ 50,000$ -$ Optimistic -$ -$ 81,000$

Corporate Event Day ProfitConservative 6,450$ -$ -$ Realistic -$ 9,645$ -$ Optimistic -$ -$ 20,200$

Total Income 594,576$ 635,771$ 677,326$

Expenses

Accounting fees 5,000$ 5,000$ 5,000$ Advertising 25,000$ 25,000$ 25,000$ Bank Fees 12,000$ 12,000$ 12,000$ Depreciation 33,333$ 33,333$ 33,333$ $1m straight line depreciation of asset over 30 year periodElectricity 12,000$ 12,000$ 12,000$ Equipment 20,000$ 20,000$ 20,000$ First Aid 5,000$ 5,000$ 5,000$ Fuel / Oil 10,000$ 10,000$ 10,000$ Insurance 20,000$ 20,000$ 20,000$ License Submission 3,000$ 3,000$ 3,000$ Interest 1,000$ 1,000$ 1,000$ Management Fees 60,000$ 60,000$ 60,000$ Includes on-costs and small additional operating budgetStaff for Retail / canteen and bar 30,000$ 30,000$ 30,000$ Part-time Staff member for Canteen/BarPermits 30,000$ 30,000$ 30,000$ Postage 1,000$ 1,000$ 1,000$ Printing and Stationery 2,000$ 2,000$ 2,000$ Repairs & Maintenance -$

R&M Enduro Track 20,000$ 20,000$ 20,000$ R&M Junior Track 10,000$ 10,000$ 10,000$ R&M MX Track 25,000$ 25,000$ 25,000$ R&M Plant and Equipment 20,000$ 20,000$ 20,000$ R&M Pee Wee Track 7,000$ 7,000$ 7,000$

Telephone 6,000$ 6,000$ 6,000$ Trophies 3,000$ 3,000$ 3,000$ Waste Management 5,000$ 5,000$ 5,000$

Total Expenses 365,333$ 365,333$ 365,333$

Net Result 229,243$ 270,438$ 311,993$ Profit Profit Profit

Operating Budget Page 2 of 5

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8,93

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M

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25,0

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21

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22

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$

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33

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Tota

l Exp

endi

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For

ecas

ts36

5,33

3$

36

4,13

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37

5,83

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7,90

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40

0,67

2$

41

4,01

1$

42

7,94

8$

44

2,51

4$

45

7,73

6$

47

3,64

6$

49

0,27

8$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0N

et C

ash

Posi

tion

$53,

187

$68,

794

$56,

722

$71,

262

$85,

229

$98,

598

$111

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$123

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$134

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$145

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Net

Pre

sent

Val

ue (@

7%)

-$4,

088,

418

Inpr

epar

ing

this

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Year

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Year

3Ye

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5Ye

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Year

7Ye

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Year

9Ye

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10

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17,3

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12,1

71$

13,0

41$

13,9

10$

14,7

79$

15,6

49$

16,5

18$

17,3

88$

18,2

57$

19,1

26$

19,9

96$

Bar

and

Func

tion

18,8

74$

13,2

12$

14,1

56$

15,1

00$

16,0

43$

16,9

87$

17,9

31$

18,8

74$

19,8

18$

20,7

62$

21,7

06$

Mer

chan

dise

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les

30,0

00$

21,0

00$

22,5

00$

24,0

00$

25,5

00$

27,0

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28,5

00$

30,0

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31,5

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33,0

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34,5

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Oth

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com

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nnan

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se/R

enta

l30

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$

30

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$

30

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$

30

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$

30

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$

30

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$

30

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$

30

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30

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30

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Ev

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$

81

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81

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81

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81

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C

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Eve

nt D

ay20

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20

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20

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20

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$

20

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$

20

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20

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20

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$

20

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$

20

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$

20

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Tota

l Ope

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g In

com

e Fo

reca

st67

7,32

6$

51

3,48

8$

54

0,79

5$

56

8,10

1$

59

5,40

7$

62

2,71

4$

65

0,02

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67

7,32

6$

70

4,63

3$

73

1,93

9$

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9,24

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Year

1Ye

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Year

3Ye

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Year

5Ye

ar 6

Year

7Ye

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Year

9Ye

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0Ra

mp

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Rate

10

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60,0

00$

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61,5

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63,0

38$

64,6

13$

66,2

29$

67,8

84$

69,5

82$

71,3

21$

73,1

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32$

Staf

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ail/c

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en/b

ar30

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$

30

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$

30

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$

31

,519

$

32

,307

$

33

,114

$

33

,942

$

34

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$

35

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$

36

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$

37

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$

A

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11,5

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14,0

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In

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Repa

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M

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27,5

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20,0

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20,0

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Mar

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Dep

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Tota

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endi

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For

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5,33

3$

36

4,43

3$

37

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3$

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8,35

5$

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1,12

2$

41

4,46

1$

42

8,39

8$

44

2,96

4$

45

8,18

6$

47

4,09

6$

49

0,72

8$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0N

et C

ash

Posi

tion

$149

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$164

,661

$179

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$194

,286

$208

,253

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$234

,363

$246

,447

$257

,843

$268

,517

Net

Pre

sent

Val

ue (@

7%)

-$3,

326,

764

Inpr

epar

ing

this

repo

rt,St

ratc

orp

has

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dup

onin

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nsu

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dby

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es,t

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ope

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ithSt

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orp’

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ldno

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port

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ude

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icit

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ectio

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mer

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odel

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McA

dam

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serv

ativ

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Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

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Year

10

Leve

l of C

apac

ity45

%50

%55

%60

%65

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%75

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%To

tal O

pera

ting

Inco

me

$294

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ratin

g Ex

pens

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87,6

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27,6

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78Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

-$69

,477

-$53

,870

-$38

,785

-$24

,246

-$10

,279

$3,0

90$1

5,83

1$2

7,91

5$3

9,31

1$4

9,98

6

Scen

ario

1 -

Con

serv

ativ

eTo

tal O

pera

ting

Inco

me

(Yr 1

-10)

Tota

l Ope

ratin

g Ex

pens

es (Y

r 1-1

0)Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

(Yr 1

-10)

Scen

ario

2 -

Real

istic

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Le

vel o

f Cap

acity

60%

65%

65%

70%

75%

80%

85%

90%

95%

100%

Tota

l Ope

ratin

g In

com

e$4

17,3

21$4

44,6

2 7$4

44,6

27$4

71,9

33$4

99,2

40$5

26,5

46$5

53,8

52$5

81,1

59$6

08,4

65$6

35,7

71To

tal O

pera

ting

Expe

nses

$364

,133

$375

,833

$387

,905

$400

,672

$414

,011

$427

,948

$442

,514

$457

,736

$473

,646

$490

,278

Pred

icte

d O

pera

ting

Prof

it/Lo

ss$5

3,18

7$6

8,79

4$5

6,72

2$7

1,26

2$8

5,22

9$9

8,59

8$1

11,3

39$1

23,4

23$1

34,8

19$1

45,4

93

Scen

ario

2 -

Real

istic

Tota

l Ope

ratin

g In

com

e (Y

r 1-1

0)To

tal O

pera

ting

Expe

nses

(Yr 1

-10)

Pred

icte

d O

pera

ting

Prof

it/Lo

ss (Y

r 1-1

0)

Scen

ario

3 -

Opt

imis

ticYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Leve

l of C

apac

ity70

%75

%80

%85

%90

%95

%10

0%10

5%11

0%11

5%To

tal O

pera

ting

Inco

me

$513

,488

$540

,795

$568

,101

$595

,40 7

$622

,714

$650

,020

$677

,326

$704

,633

$731

,939

$759

,245

Tota

l Ope

ratin

g Ex

pens

es$3

64,4

33$3

76,1

33$3

88,3

55$4

01,1

22$4

14,4

61$4

28,3

98$4

42,9

64$4

58,1

86$4

74,0

96$4

90,7

28Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

$149

,055

$164

,661

$179

,746

$194

,286

$208

,253

$221

,621

$234

,363

$246

,44 7

$257

,843

$268

,517

Scen

ario

3 -

Opt

imis

ticTo

tal O

pera

ting

Inco

me

(Yr 1

-10)

Tota

l Ope

ratin

g Ex

pens

es (Y

r 1-1

0)Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

(Yr 1

-10)

Col

lect

ive

Sum

mar

y - 3

day

sYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Scen

ario

1 -

Con

serv

ativ

e U

sage

-$69

,477

-$53

,870

-$38

,785

-$24

,246

-$10

,279

$3,0

90$1

5,83

1$2

7,91

5$3

9,31

1$4

9,98

6Sc

enar

io 2

- Re

alis

tic U

sage

$53,

187

$68,

794

$56,

722

$71,

262

$85,

229

$98,

598

$111

,339

$123

,423

$134

,819

$145

,493

Scen

ario

3 -

Opt

imis

tic U

sage

$149

,055

$164

,661

$179

,746

$194

,286

$208

,253

$221

,621

$234

,363

$246

,44 7

$257

,843

$268

,517

Tota

l - Y

ear

1 to

10

$4,1

70,8

52$4

,231

,376

-$60

,524

Tota

l - Y

ear

1 to

10

$5,1

83,5

41$4

,234

,676

$948

,865

Tota

l - Y

ear

1 to

10

$6,3

63,6

68$4

,238

,876

$2,1

24,7

92

Sum

mar

y S

heet

Pag

e 6

of 6






RidersWeekends 1,050 600 600 2,500 2,750 500 8,000 Weekdays 400 450 450 1,500 2,000 200 5,000 Total Annual Riders 1,450 1,050 1,050 4,000 4,750 700 13,000



Riding Fee RevenueAdult 77% 24,650$ 10,500$ 18,900$ 72,000$ 47,500$ 12,600$ 186,150 Junior 23% 3,263$ 7,875$ 1,575$ 6,000$ 35,625$ 1,050$ 55,388



Number of Members 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0%Adult 308 131 236 900 594 158 2,327 Junior 54 131 26 100 594 18 923


Member RevenueNon-Membership Fees 4,187$ 8,269$ 2,284$ 8,700$ 37,406$ 1,523$ 62,368$ Adult 83% 30,813$ 13,125$ 23,625$ 90,000$ 59,375$ 15,750$ 232,688$ Junior 17% 2,719$ 6,563$ 1,313$ 5,000$ 29,688$ 875$ 46,156$


Canteen RevenueSalesPer rider per visit 2.00$ 2,900$ 2,100$ 2,100$ 8,000$ 9,500$ 1,400$ 26,000$ Per visitor 1.00$ 725$ 525$ 525$ 2,000$ 2,375$ 350$ 6,500$ Visitors Numbers (% of riders) 50% 725 525 525 2,000 2,375 350 6,500 CGS (35%) 35% (1,269)-$ (919)-$ (919)-$ (3,500)-$ (4,156)-$ (613)-$ (11,375)-$

Total Canteen Revenue 2,356$ 1,706$ 1,706$ 6,500$ 7,719$ 1,138$ 21,125$












Total Event Profit

8,000$ 1,000$

Number of Events

30,000$ 5,000$



5,000$ 5,000$

-$


20,200$

Revenue Page 1 of 5




Sales 32,500$ CGS 11,375-$ Gross 21,125$ 21,125$ 21,125$ 21,125$






Total Income 701,199$ 742,394$ 783,949$

Expenses




Total Expenses 365,333$ 365,333$ 365,333$



Situ

atio

n 2

(Fin

anci

al M

odel

- 50

we

2wd)

REG

ION

AL

MO

TORS

PORT

FA

CIL

ITY

McA

dam

Par

k =

con

stan

t=

incr

easi

ngC

onse

rvat

ive

Inco

me

and

expe

nditu

reYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Ram

p U

p Ra

te

100%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

Estim

ated

Ope

ratin

g In

com

eR

ider

s Fe

es24

1,53

8$

10

8,69

2$

12

0,76

9$

132,

846

$

14

4,92

3$

156,

999

$

16

9,07

6$

181,

153

$

19

3,23

0$

205,

307

$

21

7,38

4$

Mem

bers

hip

341,

212

$

153,

545

$

170,

606

$

18

7,66

7$

204,

727

$

22

1,78

8$

238,

848

$

25

5,90

9$

272,

970

$

29

0,03

0$

307,

091

$

C

ante

en21

,125

$

9,

506

$

10,5

63$

11

,619

$

12,6

75$

13

,731

$

14,7

88$

15

,844

$

16,9

00$

17

,956

$

19,0

13$

Ba

r an

d Fu

nctio

n18

,874

$

8,

493

$

9,43

7$

10

,381

$

11,3

25$

12

,268

$

13,2

12$

14

,156

$

15,1

00$

16

,043

$

16,9

87$

M

erch

andi

se/P

ro-S

hop

Sale

s30

,000

$

13

,500

$

15

,000

$

16,5

00$

18

,000

$

19,5

00$

21

,000

$

22,5

00$

24

,000

$

25,5

00$

27

,000

$

Oth

er In

com

eTe

nnan

t Lea

se/R

enta

l30

,000

$

30

,000

$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

Even

t Inc

ome

12,0

00$

12,0

00$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

C

orpo

rate

Eve

nts

Day

s6,

450

$

6,45

0$

6,

450

$

6,45

0$

6,

450

$

6,45

0$

6,

450

$

6,45

0$

6,

450

$

6,45

0$

6,

450

$

Tota

l Ope

ratin

g In

com

e Fo

reca

st70

1,19

9$

34

2,18

7$

37

4,82

4$

407,

462

$

44

0,09

9$

472,

737

$

50

5,37

4$

538,

012

$

57

0,64

9$

603,

286

$

63

5,92

4$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Ra

mp

Up

Rate

10

0%45

%50

%55

%60

%65

%70

%75

%80

%85

%90

%Es

timat

ed O

pera

ting

Expe

nditu

reSa

lari

es /

Wag

esFT

Sta

ff (in

cl o

n-co

st)

60,0

00$

60,0

00$

61,5

00$

63

,038

$

64,6

13$

66

,229

$

67,8

84$

69

,582

$

71,3

21$

73

,104

$

74,9

32$

St

aff f

or R

etai

l/can

teen

/bar

30,0

00$

30,0

00$

30,7

50$

31

,519

$

32,3

07$

33

,114

$

33,9

42$

34

,791

$

35,6

61$

36

,552

$

37,4

66$

A

ccou

ntin

g/Fi

nanc

e M

gmt

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

Ru

nnin

g C

osts

Elec

tric

ity12

,000

$

12

,000

$

12

,600

$

13,2

30$

13

,892

$

14,5

86$

15

,315

$

16,0

81$

16

,885

$

17,7

29$

18

,616

$

Firs

t Aid

5,00

0$

5,

000

$

5,25

0$

5,

513

$

5,78

8$

6,

078

$

6,38

1$

6,

700

$

7,03

6$

7,

387

$

7,75

7$

Te

leph

one

6,00

0$

6,

000

$

6,30

0$

6,

615

$

6,94

6$

7,

293

$

7,65

8$

8,

041

$

8,44

3$

8,

865

$

9,30

8$

Li

cens

e Su

bmis

sion

3,00

0$

3,

000

$

3,00

0$

3,

000

$

3,00

0$

3,

000

$

3,00

0$

3,

000

$

3,00

0$

3,

000

$

3,00

0$

Fu

el/O

il10

,000

$

10

,000

$

10

,500

$

11,0

25$

11

,576

$

12,1

55$

12

,763

$

13,4

01$

14

,071

$

14,7

75$

15

,513

$

Inte

rest

1,00

0$

1,

000

$

1,05

0$

1,

103

$

1,15

8$

1,

216

$

1,27

6$

1,

340

$

1,40

7$

1,

477

$

1,55

1$

Ba

nk F

ees

12,0

00$

12,0

00$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

Pe

rmits

30,0

00$

30,0

00$

31,5

00$

33

,075

$

34,7

29$

36

,465

$

38,2

88$

40

,203

$

42,2

13$

44

,324

$

46,5

40$

Tr

ophi

es3,

000

$

1,35

0$

1,

500

$

1,65

0$

1,

800

$

1,95

0$

2,

100

$

2,25

0$

2,

400

$

2,55

0$

2,

700

$

Was

te M

anag

emen

t5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

Post

age

1,00

0$

1,

000

$

1,00

0$

1,

000

$

1,00

0$

1,

000

$

1,00

0$

1,

000

$

1,00

0$

1,

000

$

1,00

0$

Pr

intin

g an

d St

atio

nary

2,00

0$

2,

000

$

2,00

0$

2,

000

$

2,00

0$

2,

000

$

2,00

0$

2,

000

$

2,00

0$

2,

000

$

2,00

0$

In

sura

nce

20,0

00$

20,0

00$

21,0

00$

22

,050

$

23,1

53$

24

,310

$

25,5

26$

26

,802

$

28,1

42$

29

,549

$

31,0

27$

Re

pair

s &

Mai

nten

ance

Endu

ro T

rack

20,0

00$

20,0

00$

21,0

00$

22

,050

$

23,1

53$

24

,310

$

25,5

26$

26

,802

$

28,1

42$

29

,549

$

31,0

27$

Ju

nior

Tra

ck10

,000

$

10

,000

$

10

,500

$

11,0

25$

11

,576

$

12,1

55$

12

,763

$

13,4

01$

14

,071

$

14,7

75$

15

,513

$

MX

Trac

k25

,000

$

25

,000

$

26

,250

$

27,5

63$

28

,941

$

30,3

88$

31

,907

$

33,5

02$

35

,178

$

36,9

36$

38

,783

$

Plan

t and

Equ

ipm

ent

20,0

00$

20,0

00$

21,0

00$

22

,050

$

23,1

53$

24

,310

$

25,5

26$

26

,802

$

28,1

42$

29

,549

$

31,0

27$

Pe

e W

ee T

rack

7,00

0$

7,

000

$

7,35

0$

7,

718

$

8,10

3$

8,

509

$

8,93

4$

9,

381

$

9,85

0$

10

,342

$

10,8

59$

M

arke

ting

Mar

ketin

g &

Pro

mot

ion

25,0

00$

25,0

00$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

M

isc Equi

pmen

t20

,000

$

20

,000

$

21

,000

$

22,0

50$

23

,153

$

24,3

10$

25

,526

$

26,8

02$

28

,142

$

29,5

49$

31

,027

$

Dep

reci

atio

n33

,333

$

33

,333

$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

Tota

l Exp

endi

ture

For

ecas

ts36

5,33

3$

36

3,68

3$

37

5,38

3$

387,

605

$

40

0,37

2$

413,

711

$

42

7,64

8$

442,

214

$

45

7,43

6$

473,

346

$

48

9,97

8$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0N

et C

ash

Posi

tion

21,4

96-$

559

-$

$1

9,85

7$3

9,72

8$5

9,02

6$7

7,72

6$9

5,79

8$1

13,2

13$1

29,9

40$1

45,9

46N

et P

rese

nt V

alue

(@7%

)4,

308,

191

-$

Inpr

epar

ing

this

repo

rt,St

ratc

orp

has

relie

dup

onin

form

atio

nsu

pplie

dby

third

parti

es,

the

Spor

ting

Mot

orcy

cle

Clu

ban

dth

eir

advi

sers

,al

ong

with

publ

icly

avai

labl

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form

atio

n.St

ratc

orp

has

not

atte

mpt

edto

verif

yth

eac

cura

cyor

com

plet

enes

sof

the

info

rmat

ion

prov

ided

.N

eith

erSt

ratc

orp

nor

itsof

ficer

san

dem

ploy

ees

unde

rtake

san

yre

spon

sibi

lity

aris

ing

inan

yw

ayw

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any

pers

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exce

ptth

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info

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set

out

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port,

incl

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yer

rors

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ons

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ein

thro

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negl

igen

ce o

r oth

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ise

how

ever

cau

sed.

This

repo

rtis

aco

nfid

entia

ldo

cum

ent

that

has

been

prep

ared

bySt

ratc

orp

Con

sulti

ngPt

yLt

d(“

Stra

tcor

p”).

Stra

tcor

pha

sun

derta

ken

this

anal

ysis

inits

capa

city

asad

viso

rin

acco

rdan

cew

ithth

esc

ope

and

subj

ect

toth

ete

rms

asso

ciat

edw

ithSt

ratc

orp’

sle

tter

ofof

fer.

Read

ers

shou

ldno

teth

atth

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port

may

incl

ude

impl

icit

proj

ectio

nsab

out

the

futu

re w

hich

by

thei

r nat

ure

are

unce

rtain

and

can

not b

e re

lied

upon

, as

they

are

depe

nden

ton

pote

ntia

lev

ents

whi

chha

veno

tye

toc

curr

ed.

For

thes

ere

ason

san

dot

hers

,pr

oper

tyde

velo

pmen

tis

inhe

rent

lyris

kyan

d fre

quen

tly th

ings

do

not t

urn

out a

s pl

anne

d.

Dis

clai

mer

of L

iabi

lity:

Con

serv

ativ

e S

cena

rioP

age

3 of

5

Situ

atio

n 2

(Fin

anci

al M

odel

- 50

we

2wd)

Regi

onal

Mot

orsp

ort F

acili

ty :

McA

dam

Par

k =

con

stan

t=

incr

easi

ngRe

alis

tic In

com

e an

d Ex

pend

iture

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Ra

mp

Up

Rate

10

0%60

%65

%65

%70

%75

%80

%85

%90

%95

%10

0%Es

timat

ed O

pera

ting

Inco

me

Rid

ers

Fees

241,

538

$

144,

923

$

156,

999

$

15

6,99

9$

169,

076

$

18

1,15

3$

193,

230

$

20

5,30

7$

217,

384

$

22

9,46

1$

241,

538

$

M

embe

rshi

p34

1,21

2$

20

4,72

7$

22

1,78

8$

221,

788

$

23

8,84

8$

255,

909

$

27

2,97

0$

290,

030

$

30

7,09

1$

324,

151

$

34

1,21

2$

Can

teen

21,1

25$

12,6

75$

13

,731

$

13,7

31$

14

,788

$

15,8

44$

16

,900

$

17,9

56$

19

,013

$

20,0

69$

21

,125

$

Bar

and

Func

tion

18,8

74$

11,3

25$

12

,268

$

12,2

68$

13

,212

$

14,1

56$

15

,100

$

16,0

43$

16

,987

$

17,9

31$

18

,874

$

Mer

chan

dise

/Pro

-Sho

p Sa

les

30,0

00$

18,0

00$

19

,500

$

19,5

00$

21

,000

$

22,5

00$

24

,000

$

25,5

00$

27

,000

$

28,5

00$

30

,000

$

Oth

er In

com

eTe

nnan

t Lea

se/R

enta

l30

,000

$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

Ev

ent I

ncom

e50

,000

$

50

,000

$

50,0

00$

50

,000

$

50,0

00$

50

,000

$

50,0

00$

50

,000

$

50,0

00$

50

,000

$

50,0

00$

C

orpo

rate

Eve

nts

Day

s9,

645

$

9,64

5$

9,64

5$

9,

645

$

9,64

5$

9,

645

$

9,64

5$

9,

645

$

9,64

5$

9,

645

$

9,64

5$

Tota

l Ope

ratin

g In

com

e Fo

reca

st74

2,39

4$

48

1,29

4$

513,

932

$

51

3,93

2$

546,

569

$

57

9,20

7$

611,

844

$

64

4,48

1$

677,

119

$

70

9,75

6$

742,

394

$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Ra

mp

Up

Rate

10

0%60

%65

%65

%70

%75

%80

%85

%90

%95

%10

0%Es

timat

ed O

pera

ting

Expe

nditu

reSa

lari

es /

Wag

esFT

Sta

ff (in

cl o

n-co

st)

60,0

00$

60,0

00$

61

,500

$

63,0

38$

64

,613

$

66,2

29$

67

,884

$

69,5

82$

71

,321

$

73,1

04$

74

,932

$

Staf

f for

Ret

ail/c

ante

en/b

ar30

,000

$

30

,000

$

30,7

50$

31

,519

$

32,3

07$

33

,114

$

33,9

42$

34

,791

$

35,6

61$

36

,552

$

37,4

66$

A

ccou

ntin

g/Fi

nanc

e M

gmt

5,00

0$

5,

000

$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

Runn

ing

Cos

tsEl

ectr

icity

12,0

00$

12,0

00$

12

,600

$

13,2

30$

13

,892

$

14,5

86$

15

,315

$

16,0

81$

16

,885

$

17,7

29$

18

,616

$

Firs

t Aid

5,00

0$

5,

000

$

5,

250

$

5,51

3$

5,

788

$

6,07

8$

6,

381

$

6,70

0$

7,

036

$

7,38

7$

7,

757

$

Tele

phon

e6,

000

$

6,00

0$

6,30

0$

6,

615

$

6,94

6$

7,

293

$

7,65

8$

8,

041

$

8,44

3$

8,

865

$

9,30

8$

Li

cens

e Su

bmis

sion

3,00

0$

3,

000

$

3,

000

$

3,00

0$

3,

000

$

3,00

0$

3,

000

$

3,00

0$

3,

000

$

3,00

0$

3,

000

$

Fuel

/Oil

10,0

00$

10,0

00$

10

,500

$

11,0

25$

11

,576

$

12,1

55$

12

,763

$

13,4

01$

14

,071

$

14,7

75$

15

,513

$

Inte

rest

1,

000

$

1,00

0$

1,05

0$

1,

103

$

1,15

8$

1,

216

$

1,27

6$

1,

340

$

1,40

7$

1,

477

$

1,55

1$

Ba

nk F

ees

12,0

00$

12,0

00$

12

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$

12,0

00$

12

,000

$

12,0

00$

12

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$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

Perm

its30

,000

$

30

,000

$

31,5

00$

33

,075

$

34,7

29$

36

,465

$

38,2

88$

40

,203

$

42,2

13$

44

,324

$

46,5

40$

Tr

ophi

es3,

000

$

1,80

0$

1,95

0$

1,

950

$

2,10

0$

2,

250

$

2,40

0$

2,

550

$

2,70

0$

2,

850

$

3,00

0$

W

aste

Man

agem

ent

5,00

0$

5,

000

$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

Post

age

1,00

0$

1,

000

$

1,

000

$

1,00

0$

1,

000

$

1,00

0$

1,

000

$

1,00

0$

1,

000

$

1,00

0$

1,

000

$

Prin

ting

and

Stat

iona

ry2,

000

$

2,00

0$

2,00

0$

2,

000

$

2,00

0$

2,

000

$

2,00

0$

2,

000

$

2,00

0$

2,

000

$

2,00

0$

In

sura

nce

20,0

00$

20,0

00$

21

,000

$

22,0

50$

23

,153

$

24,3

10$

25

,526

$

26,8

02$

28

,142

$

29,5

49$

31

,027

$

Repa

irs

& M

aint

enan

ceEn

duro

Tra

ck20

,000

$

20

,000

$

21,0

00$

22

,050

$

23,1

53$

24

,310

$

25,5

26$

26

,802

$

28,1

42$

29

,549

$

31,0

27$

Ju

nior

Tra

ck10

,000

$

10

,000

$

10,5

00$

11

,025

$

11,5

76$

12

,155

$

12,7

63$

13

,401

$

14,0

71$

14

,775

$

15,5

13$

M

X Tr

ack

25,0

00$

25,0

00$

26

,250

$

27,5

63$

28

,941

$

30,3

88$

31

,907

$

33,5

02$

35

,178

$

36,9

36$

38

,783

$

Plan

t and

Equ

ipm

ent

20,0

00$

20,0

00$

21

,000

$

22,0

50$

23

,153

$

24,3

10$

25

,526

$

26,8

02$

28

,142

$

29,5

49$

31

,027

$

Pee

Wee

Tra

ck7,

000

$

7,00

0$

7,35

0$

7,

718

$

8,10

3$

8,

509

$

8,93

4$

9,

381

$

9,85

0$

10

,342

$

10,8

59$

M

arke

ting

Mar

ketin

g &

Pro

mot

ion

25,0

00$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

Mis

c Equi

pmen

t20

,000

$

20

,000

$

21,0

00$

22

,050

$

23,1

53$

24

,310

$

25,5

26$

26

,802

$

28,1

42$

29

,549

$

31,0

27$

Dep

reci

atio

n33

,333

$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

Tota

l Exp

endi

ture

For

ecas

ts36

5,33

3$

36

4,13

3$

375,

833

$

38

7,90

5$

400,

672

$

41

4,01

1$

427,

948

$

44

2,51

4$

457,

736

$

47

3,64

6$

490,

278

$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0N

et C

ash

Posi

tion

$117

,161

$138

,098

$126

,027

$145

,897

$165

,196

$183

,896

$201

,968

$219

,383

$236

,110

$252

,116

Net

Pre

sent

Val

ue (@

7%)

-$3,

556,

387

Inpr

epar

ing

this

repo

rt,St

ratc

orp

has

relie

dup

onin

form

atio

nsu

pplie

dby

third

parti

es,

the

Spor

ting

Mot

orcy

cle

Clu

ban

dth

eir

advi

sers

,al

ong

with

publ

icly

avai

labl

ein

form

atio

n.St

ratc

orp

has

not

atte

mpt

edto

verif

yth

eac

cura

cyor

com

plet

enes

sof

the

info

rmat

ion

prov

ided

.N

eith

erSt

ratc

orp

nor

itsof

ficer

san

dem

ploy

ees

unde

rtake

san

yre

spon

sibi

lity

aris

ing

inan

yw

ayw

hats

oeve

rto

any

pers

onor

orga

nisa

tion,

exce

ptth

eSp

ortin

gM

otor

cycl

eC

lub,

inre

spec

tof

info

rmat

ion

set

out

inth

isre

port,

incl

udin

gan

yer

rors

orom

issi

ons

ther

ein

thro

ugh

negl

igen

ce o

r oth

erw

ise

how

ever

cau

sed.

This

repo

rtis

aco

nfid

entia

ldo

cum

ent

that

has

been

prep

ared

bySt

ratc

orp

Con

sulti

ngPt

yLt

d(“

Stra

tcor

p”).

Stra

tcor

pha

sun

derta

ken

this

anal

ysis

inits

capa

city

asad

viso

rin

acco

rdan

cew

ithth

esc

ope

and

subj

ect

toth

ete

rms

asso

ciat

edw

ithSt

ratc

orp’

sle

tter

ofof

fer.

Read

ers

shou

ldno

teth

atth

isre

port

may

incl

ude

impl

icit

proj

ectio

nsab

out

the

futu

re w

hich

by

thei

r nat

ure

are

unce

rtain

and

can

not b

e re

lied

upon

, as

they

are

depe

nden

ton

pote

ntia

lev

ents

whi

chha

veno

tye

toc

curr

ed.

For

thes

ere

ason

san

dot

hers

,pr

oper

tyde

velo

pmen

tis

inhe

rent

lyris

kyan

d fre

quen

tly th

ings

do

not t

urn

out a

s pl

anne

d.

Dis

clai

mer

of L

iabi

lity:

Rea

listic

Sce

nario

Pag

e 4

of 5

Situ

atio

n 2

(Fin

anci

al M

odel

- 50

we

2wd)

Regi

onal

Mot

orsp

ort F

acili

tyM

cAda

m P

ark

= c

onst

ant

= in

crea

sing

Opt

imis

tic In

com

e an

d Ex

pend

iture

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Ra

mp

Up

Rate

10

0%70

%75

%80

%85

%90

%95

%10

0%10

5%11

0%11

5%Es

timat

ed O

pera

ting

Inco

me

Rid

ers

Fees

241,

538

$

169,

076

$

181,

153

$

19

3,23

0$

205,

307

$

21

7,38

4$

229,

461

$

24

1,53

8$

253,

614

$

26

5,69

1$

277,

768

$

M

embe

rshi

p34

1,21

2$

23

8,84

8$

25

5,90

9$

272,

970

$

29

0,03

0$

307,

091

$

32

4,15

1$

341,

212

$

35

8,27

2$

375,

333

$

39

2,39

4$

Can

teen

21,1

25$

14,7

88$

15

,844

$

16,9

00$

17

,956

$

19,0

13$

20

,069

$

21,1

25$

22

,181

$

23,2

38$

24

,294

$

Bar

and

Func

tion

18,8

74$

13,2

12$

14

,156

$

15,1

00$

16

,043

$

16,9

87$

17

,931

$

18,8

74$

19

,818

$

20,7

62$

21

,706

$

Mer

chan

dise

/Pro

-Sho

p Sa

les

30,0

00$

21,0

00$

22

,500

$

24,0

00$

25

,500

$

27,0

00$

28

,500

$

30,0

00$

31

,500

$

33,0

00$

34

,500

$

Oth

er In

com

eTe

nnan

t Lea

se/R

enta

l30

,000

$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

Ev

ent I

ncom

e81

,000

$

81

,000

$

81,0

00$

81

,000

$

81,0

00$

81

,000

$

81,0

00$

81

,000

$

81,0

00$

81

,000

$

81,0

00$

C

orpo

rate

Eve

nts

Day

s20

,200

$

20

,200

$

20,2

00$

20

,200

$

20,2

00$

20

,200

$

20,2

00$

20

,200

$

20,2

00$

20

,200

$

20,2

00$

Tota

l Ope

ratin

g In

com

e Fo

reca

st78

3,94

9$

58

8,12

4$

620,

762

$

65

3,39

9$

686,

036

$

71

8,67

4$

751,

311

$

78

3,94

9$

816,

586

$

84

9,22

4$

881,

861

$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Ra

mp

Up

Rate

10

0%70

%75

%80

%85

%90

%95

%10

0%10

5%11

0%11

5%Es

timat

ed O

pera

ting

Expe

nditu

reSa

lari

es /

Wag

esFT

Sta

ff (in

cl o

n-co

st)

60,0

00$

60,0

00$

61

,500

$

63,0

38$

64

,613

$

66,2

29$

67

,884

$

69,5

82$

71

,321

$

73,1

04$

74

,932

$

Staf

f for

Ret

ail/c

ante

en/b

ar30

,000

$

30

,000

$

30,7

50$

31

,519

$

32,3

07$

33

,114

$

33,9

42$

34

,791

$

35,6

61$

36

,552

$

37,4

66$

A

ccou

ntin

g/Fi

nanc

e M

gmt

5,00

0$

5,

000

$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

Runn

ing

Cos

tsEl

ectr

icity

12,0

00$

12,0

00$

12

,600

$

13,2

30$

13

,892

$

14,5

86$

15

,315

$

16,0

81$

16

,885

$

17,7

29$

18

,616

$

Firs

t Aid

5,00

0$

5,

000

$

5,

250

$

5,51

3$

5,

788

$

6,07

8$

6,

381

$

6,70

0$

7,

036

$

7,38

7$

7,

757

$

Tele

phon

e6,

000

$

6,00

0$

6,30

0$

6,

615

$

6,94

6$

7,

293

$

7,65

8$

8,

041

$

8,44

3$

8,

865

$

9,30

8$

Li

cens

e Su

bmis

sion

3,00

0$

3,

000

$

3,

000

$

3,00

0$

3,

000

$

3,00

0$

3,

000

$

3,00

0$

3,

000

$

3,00

0$

3,

000

$

Fuel

/Oil

10,0

00$

10,0

00$

10

,500

$

11,0

25$

11

,576

$

12,1

55$

12

,763

$

13,4

01$

14

,071

$

14,7

75$

15

,513

$

Inte

rest

1,00

0$

1,

000

$

1,

050

$

1,10

3$

1,

158

$

1,21

6$

1,

276

$

1,34

0$

1,

407

$

1,47

7$

1,

551

$

Bank

Fee

s12

,000

$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

Pe

rmits

30,0

00$

30,0

00$

31

,500

$

33,0

75$

34

,729

$

36,4

65$

38

,288

$

40,2

03$

42

,213

$

44,3

24$

46

,540

$

Trop

hies

3,00

0$

2,

100

$

2,

250

$

2,40

0$

2,

550

$

2,70

0$

2,

850

$

3,00

0$

3,

150

$

3,30

0$

3,

450

$

Was

te M

anag

emen

t5,

000

$

5,00

0$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

Po

stag

e1,

000

$

1,00

0$

1,00

0$

1,

000

$

1,00

0$

1,

000

$

1,00

0$

1,

000

$

1,00

0$

1,

000

$

1,00

0$

Pr

intin

g an

d St

atio

nary

2,00

0$

2,

000

$

2,

000

$

2,00

0$

2,

000

$

2,00

0$

2,

000

$

2,00

0$

2,

000

$

2,00

0$

2,

000

$

Insu

ranc

e20

,000

$

20

,000

$

21,0

00$

22

,050

$

23,1

53$

24

,310

$

25,5

26$

26

,802

$

28,1

42$

29

,549

$

31,0

27$

Re

pair

s &

Mai

nten

ance

Endu

ro T

rack

20,0

00$

20,0

00$

21

,000

$

22,0

50$

23

,153

$

24,3

10$

25

,526

$

26,8

02$

28

,142

$

29,5

49$

31

,027

$

Juni

or T

rack

10,0

00$

10,0

00$

10

,500

$

11,0

25$

11

,576

$

12,1

55$

12

,763

$

13,4

01$

14

,071

$

14,7

75$

15

,513

$

MX

Trac

k25

,000

$

25

,000

$

26,2

50$

27

,563

$

28,9

41$

30

,388

$

31,9

07$

33

,502

$

35,1

78$

36

,936

$

38,7

83$

Pl

ant a

nd E

quip

men

t20

,000

$

20

,000

$

21,0

00$

22

,050

$

23,1

53$

24

,310

$

25,5

26$

26

,802

$

28,1

42$

29

,549

$

31,0

27$

Pe

e W

ee T

rack

7,00

0$

7,

000

$

7,

350

$

7,71

8$

8,

103

$

8,50

9$

8,

934

$

9,38

1$

9,

850

$

10,3

42$

10

,859

$

Mar

ketin

gM

arke

ting

& P

rom

otio

n25

,000

$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

M

isc Equi

pmen

t20

,000

$

20

,000

$

21,0

00$

22

,050

$

23,1

53$

24

,310

$

25,5

26$

26

,802

$

28,1

42$

29

,549

$

31,0

27$

Dep

reci

atio

n33

,333

$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

Tota

l Exp

endi

ture

For

ecas

ts36

5,33

3$

36

4,43

3$

376,

133

$

38

8,35

5$

401,

122

$

41

4,46

1$

428,

398

$

44

2,96

4$

458,

186

$

47

4,09

6$

490,

728

$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0N

et C

ash

Posi

tion

$223

,691

$244

,628

$265

,044

$284

,915

$304

,213

$322

,913

$340

,985

$358

,400

$375

,127

$391

,133

Net

Pre

sent

Val

ue (@

7%)

-$2,

698,

759

Inpr

epar

ing

this

repo

rt,St

ratc

orp

has

relie

dup

onin

form

atio

nsu

pplie

dby

third

parti

es,

the

Spor

ting

Mot

orcy

cle

Clu

ban

dth

eir

advi

sers

,al

ong

with

publ

icly

avai

labl

ein

form

atio

n.St

ratc

orp

has

not

atte

mpt

edto

verif

yth

eac

cura

cyor

com

plet

enes

sof

the

info

rmat

ion

prov

ided

.N

eith

erSt

ratc

orp

nor

itsof

ficer

san

dem

ploy

ees

unde

rtake

san

yre

spon

sibi

lity

aris

ing

inan

yw

ayw

hats

oeve

rto

any

pers

onor

orga

nisa

tion,

exce

ptth

eSp

ortin

gM

otor

cycl

eC

lub,

inre

spec

tof

info

rmat

ion

set

out

inth

isre

port,

incl

udin

gan

yer

rors

orom

issi

ons

ther

ein

thro

ugh

negl

igen

ce o

r oth

erw

ise

how

ever

cau

sed.

This

repo

rtis

aco

nfid

entia

ldo

cum

ent

that

has

been

prep

ared

bySt

ratc

orp

Con

sulti

ngPt

yLt

d(“

Stra

tcor

p”).

Stra

tcor

pha

sun

derta

ken

this

anal

ysis

inits

capa

city

asad

viso

rin

acco

rdan

cew

ithth

esc

ope

and

subj

ect

toth

ete

rms

asso

ciat

edw

ithSt

ratc

orp’

sle

tter

ofof

fer.

Read

ers

shou

ldno

teth

atth

isre

port

may

incl

ude

impl

icit

proj

ectio

nsab

out

the

futu

re w

hich

by

thei

r nat

ure

are

unce

rtain

and

can

not b

e re

lied

upon

, as

they

are

depe

nden

ton

pote

ntia

lev

ents

whi

chha

veno

tye

toc

curr

ed.

For

thes

ere

ason

san

dot

hers

,pr

oper

tyde

velo

pmen

tis

inhe

rent

lyris

kyan

d fre

quen

tly th

ings

do

not t

urn

out a

s pl

anne

d.

Dis

clai

mer

of L

iabi

lity:

Opt

imis

ticP

age

5 of

5

Situ

atio

n 2

(Fin

anci

al M

odel

- 50

we

2wd)

McA

dam

Par

k - S

ituat

ion

2 (4

Ope

ratin

g D

ays)

Scen

ario

1 -

Con

serv

ativ

eYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Leve

l of C

apac

ity45

%50

%55

%60

%65

%70

%75

%80

%85

%90

%To

tal O

pera

ting

Inco

me

$342

,18 7

$374

,824

$407

,462

$440

,099

$472

,737

$505

,374

$538

,012

$570

,649

$603

,286

$635

,924

Tota

l Ope

ratin

g Ex

pens

es$3

63,6

83$3

75,3

83$3

87,6

05$4

00,3

72$4

13,7

11$4

27,6

48$4

42,2

14$4

57,4

36$4

73,3

46$4

89,9

78Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

-$21

,496

-$55

9$1

9,85

7$3

9,72

8$5

9,02

6$7

7,72

6$9

5,79

8$1

13,2

13$1

29,9

40$1

45,9

46

Scen

ario

1 -

Con

serv

ativ

eTo

tal O

pera

ting

Inco

me

(Yr 1

-10)

Tota

l Ope

ratin

g Ex

pens

es (Y

r 1-1

0)Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

(Yr 1

-10)

Scen

ario

2 -

Real

istic

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Le

vel o

f Cap

acity

60%

65%

65%

70%

75%

80%

85%

90%

95%

100%

Tota

l Ope

ratin

g In

com

e$4

81,2

94$5

13,9

32$5

13,9

32$5

46,5

69$5

79,2

0 7$6

11,8

44$6

44,4

81$6

77,1

19$7

09,7

56$7

42,3

94To

tal O

pera

ting

Expe

nses

$364

,133

$375

,833

$387

,905

$400

,672

$414

,011

$427

,948

$442

,514

$457

,736

$473

,646

$490

,278

Pred

icte

d O

pera

ting

Prof

it/Lo

ss$1

17,1

61$1

38,0

98$1

26,0

2 7$1

45,8

97$1

65,1

96$1

83,8

96$2

01,9

68$2

19,3

83$2

36,1

10$2

52,1

16

Scen

ario

2 -

Real

istic

Tota

l Ope

ratin

g In

com

e (Y

r 1-1

0)To

tal O

pera

ting

Expe

nses

(Yr 1

-10)

Pred

icte

d O

pera

ting

Prof

it/Lo

ss (Y

r 1-1

0)

Scen

ario

3 -

Opt

imis

ticYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Leve

l of C

apac

ity70

%75

%80

%85

%90

%95

%10

0%10

5%11

0%11

5%To

tal O

pera

ting

Inco

me

$588

,124

$620

,762

$653

,399

$686

,036

$718

,674

$751

,311

$783

,949

$816

,586

$849

,224

$881

,861

Tota

l Ope

ratin

g Ex

pens

es$3

64,4

33$3

76,1

33$3

88,3

55$4

01,1

22$4

14,4

61$4

28,3

98$4

42,9

64$4

58,1

86$4

74,0

96$4

90,7

28Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

$223

,691

$244

,628

$265

,044

$284

,915

$304

,213

$322

,913

$340

,985

$358

,400

$375

,12 7

$391

,133

Scen

ario

3 -

Opt

imis

ticTo

tal O

pera

ting

Inco

me

(Yr 1

-10)

Tota

l Ope

ratin

g Ex

pens

es (Y

r 1-1

0)Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

(Yr 1

-10)

Col

lect

ive

Sum

mar

y - 3

day

sYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Scen

ario

1 -

Con

serv

ativ

e U

sage

-$21

,496

-$55

9$1

9,85

7$3

9,72

8$5

9,02

6$7

7,72

6$9

5,79

8$1

13,2

13$1

29,9

40$1

45,9

46Sc

enar

io 2

- Re

alis

tic U

sage

$117

,161

$138

,098

$126

,02 7

$145

,897

$165

,196

$183

,896

$201

,968

$219

,383

$236

,110

$252

,116

Scen

ario

3 -

Opt

imis

tic U

sage

$223

,691

$244

,628

$265

,044

$284

,915

$304

,213

$322

,913

$340

,985

$358

,400

$375

,12 7

$391

,133

Tota

l - Y

ear

1 to

10

$4,8

90,5

54$4

,231

,376

$659

,178

Tota

l - Y

ear

1 to

10

$6,0

20,5

28$4

,234

,676

$1,7

85,8

52

Tota

l - Y

ear

1 to

10

$7,3

49,9

26$4

,238

,876

$3,1

11,0

50

Sum

mar

y S

heet

Pag

e 6

of 6












Number of Members 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0%Adult 308 159 287 1,069 719 180 2,722 Junior 54 159 32 119 719 20 1,103


Member RevenueNon-Membership Fees 4,187$ 10,041$ 2,773$ 10,331$ 45,281$ 1,740$ 74,353$ Adult 83% 30,813$ 15,938$ 28,688$ 106,875$ 71,875$ 18,000$ 272,188$ Junior 17% 2,719$ 7,969$ 1,594$ 5,938$ 35,938$ 1,000$ 55,156$


Canteen RevenueSalesPer rider per visit 2.00$ 2,900$ 2,550$ 2,550$ 9,500$ 11,500$ 1,600$ 30,600$ Per visitor 1.00$ 725$ 638$ 638$ 2,375$ 2,875$ 400$ 7,650$ Visitors Numbers (% of riders) 50% 725 638 638 2,375 2,875 400 7,650 CGS (35%) 35% (1,269)-$ (1,116)-$ (1,116)-$ (4,156)-$ (5,031)-$ (700)-$ (13,388)-$













Total Event Profit

8,000$ 1,000$

Number of Events

30,000$ 5,000$



5,000$ 5,000$

-$


20,200$

Revenue Page 1 of 5




Sales 38,250$ CGS 13,388-$ Gross 24,863$ 24,863$ 24,863$ 24,863$






Total Income 807,821$ 849,016$ 890,571$

Expenses




Total Expenses 385,333$ 385,333$ 385,333$



Situ

atio

n 3

(Fin

anci

al M

odel

- 50

we

3wd)

REG

ION

AL

MO

TORS

PORT

FA

CIL

ITY

McA

dam

Par

k =

con

stan

t=

incr

easi

ngC

onse

rvat

ive

Inco

me

and

expe

nditu

reYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Ram

p U

p Ra

te

100%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

Estim

ated

Ope

ratin

g In

com

eR

ider

s Fe

es28

3,93

8$

12

7,77

2$

14

1,96

9$

156,

166

$

17

0,36

3$

184,

559

$

19

8,75

6$

212,

953

$

22

7,15

0$

241,

347

$

25

5,54

4$

Mem

bers

hip

401,

697

$

180,

764

$

200,

848

$

22

0,93

3$

241,

018

$

26

1,10

3$

281,

188

$

30

1,27

3$

321,

358

$

34

1,44

2$

361,

527

$

C

ante

en24

,863

$

11

,188

$

12

,431

$

13,6

74$

14

,918

$

16,1

61$

17

,404

$

18,6

47$

19

,890

$

21,1

33$

22

,376

$

Bar

and

Func

tion

18,8

74$

8,49

3$

9,43

7$

10

,381

$

11,3

25$

12

,268

$

13,2

12$

14

,156

$

15,1

00$

16

,043

$

16,9

87$

M

erch

andi

se/P

ro-S

hop

Sale

s30

,000

$

13

,500

$

15

,000

$

16,5

00$

18

,000

$

19,5

00$

21

,000

$

22,5

00$

24

,000

$

25,5

00$

27

,000

$

Oth

er In

com

eTe

nnan

t Lea

se/R

enta

l30

,000

$

30

,000

$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

Even

t Inc

ome

12,0

00$

12,0

00$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

C

orpo

rate

Eve

nt D

ays

6,45

0$

6,

450

$

6,

450

$

6,45

0$

6,

450

$

6,45

0$

6,

450

$

6,45

0$

6,

450

$

6,45

0$

6,

450

$

Tota

l Ope

ratin

g In

com

e Fo

reca

st80

7,82

1$

39

0,16

7$

42

8,13

6$

466,

104

$

50

4,07

3$

542,

041

$

58

0,01

0$

617,

978

$

65

5,94

7$

693,

916

$

73

1,88

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26,2

50$

27

,563

$

28,9

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30

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$

31,9

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33

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$

35,1

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36

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$

38,7

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Pl

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20

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21

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$

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ketin

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Dep

reci

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n33

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$

33

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$

33

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$

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$

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Tota

l Exp

endi

ture

For

ecas

ts38

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38

4,13

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39

6,33

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408,

917

$

42

2,21

0$

436,

087

$

45

0,57

7$

465,

707

$

48

1,50

9$

498,

014

$

51

5,25

5$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0N

et C

ash

Posi

tion

$161

,134

$186

,903

$174

,319

$198

,995

$223

,087

$246

,565

$269

,403

$291

,570

$313

,033

$333

,761

Net

Pre

sent

Val

ue (@

7%)

-$3,

169,

432

Inpr

epar

ing

this

repo

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orp

has

relie

dup

onin

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icly

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mpt

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ared

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Con

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ldno

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atth

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ude

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icit

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ectio

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nden

ton

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Dis

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mer

of L

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lity:

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listic

Sce

nario

Pag

e 4

of 5

Situ

atio

n 3

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odel

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we

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Regi

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Mot

orsp

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acili

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cAda

m P

ark

= c

onst

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crea

sing

Opt

imis

tic In

com

e an

d Ex

pend

iture

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Ra

mp

Up

Rate

10

0%70

%75

%80

%85

%90

%95

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timat

ed O

pera

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me

Rid

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Fees

283,

938

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198,

756

$

212,

953

$

22

7,15

0$

241,

347

$

25

5,54

4$

269,

741

$

28

3,93

8$

298,

134

$

31

2,33

1$

326,

528

$

M

embe

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1,69

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28

1,18

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30

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321,

358

$

34

1,44

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361,

527

$

38

1,61

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401,

697

$

42

1,78

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441,

867

$

46

1,95

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Can

teen

24,8

63$

17,4

04$

18,6

47$

19

,890

$

21,1

33$

22

,376

$

23,6

19$

24

,863

$

26,1

06$

27

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$

28,5

92$

Ba

r an

d Fu

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$

13

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$

14

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$

15,1

00$

16

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$

16,9

87$

17

,931

$

18,8

74$

19

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$

20,7

62$

21

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$

Mer

chan

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00$

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24

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$

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27

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$

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me

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Ev

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Cor

pora

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$

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Tota

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st89

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634

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92

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004,

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Year

1Ye

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Year

3Ye

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Year

5Ye

ar 6

Year

7Ye

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Year

9Ye

ar 1

0Ra

mp

Up

Rate

10

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$

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$

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$

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$

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$

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Firs

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In

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20,0

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Dep

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$

33

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Tota

l Exp

endi

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For

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537

$

45

1,02

7$

466,

157

$

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1,95

9$

498,

464

$

51

5,70

5$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0N

et C

ash

Posi

tion

$278

,327

$304

,095

$329

,330

$354

,006

$378

,097

$401

,576

$424

,414

$446

,580

$468

,044

$488

,772

Net

Pre

sent

Val

ue (@

7%)

-$2,

215,

830

Inpr

epar

ing

this

repo

rt,St

ratc

orp

has

relie

dup

onin

form

atio

nsu

pplie

dby

third

parti

es,t

heSp

ortin

gM

otor

cycl

eC

lub

and

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rad

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publ

icly

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labl

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form

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orp

has

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mpt

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plet

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ided

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lity

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ptth

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out

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port,

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rors

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ons

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ugh

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igen

ce o

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how

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sed.

This

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aco

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entia

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cum

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that

has

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ared

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ratc

orp

Con

sulti

ngPt

yLt

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Stra

tcor

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tcor

pha

sun

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anal

ysis

inits

capa

city

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viso

rin

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cew

ithth

esc

ope

and

subj

ect

toth

ete

rms

asso

ciat

edw

ithSt

ratc

orp’

sle

tter

ofof

fer.

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ers

shou

ldno

teth

atth

isre

port

may

incl

ude

impl

icit

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ectio

nsab

out

the

futu

rew

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byth

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rear

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lied

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they

are

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nden

ton

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ntia

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rred

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rth

ese

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ons

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othe

rs,p

rope

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pmen

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rent

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kyan

d fre

quen

tly th

ings

do

not t

urn

out a

s pl

anne

d.

Dis

clai

mer

of L

iabi

lity:

Opt

imis

ticP

age

5 of

5

Situ

atio

n 3

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anci

al M

odel

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we

3wd)

McA

dam

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k - S

ituat

ion

3 (5

Ope

ratin

g D

ays)

Scen

ario

1 -

Con

serv

ativ

eYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Leve

l of C

apac

ity45

%50

%55

%60

%65

%70

%75

%80

%85

%90

%To

tal O

pera

ting

Inco

me

$390

,16 7

$428

,136

$466

,104

$504

,073

$542

,041

$580

,010

$617

,978

$655

,947

$693

,916

$731

,884

Tota

l Ope

ratin

g Ex

pens

es$3

83,6

83$3

95,8

83$4

08,6

1 7$4

21,9

10$4

35,7

87$4

50,2

77$4

65,4

07$4

81,2

09$4

97,7

14$5

14,9

55Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

$6,4

84$3

2,25

2$5

7,48

7$8

2,16

3$1

06,2

54$1

29,7

33$1

52,5

71$1

74,7

38$1

96,2

01$2

16,9

29

Scen

ario

1 -

Con

serv

ativ

eTo

tal O

pera

ting

Inco

me

(Yr 1

-10)

Tota

l Ope

ratin

g Ex

pens

es (Y

r 1-1

0)Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

(Yr 1

-10)

Scen

ario

2 -

Real

istic

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Le

vel o

f Cap

acity

60%

65%

65%

70%

75%

80%

85%

90%

95%

100%

Tota

l Ope

ratin

g In

com

e$5

45,2

68$5

83,2

36$5

83,2

36$6

21,2

05$6

59,1

73$6

97,1

42$7

35,1

11$7

73,0

79$8

11,0

48$8

49,0

16To

tal O

pera

ting

Expe

nses

$384

,133

$396

,333

$408

,91 7

$422

,210

$436

,087

$450

,577

$465

,707

$481

,509

$498

,014

$515

,255

Pred

icte

d O

pera

ting

Prof

it/Lo

ss$1

61,1

34$1

86,9

03$1

74,3

19$1

98,9

95$2

23,0

8 7$2

46,5

65$2

69,4

03$2

91,5

70$3

13,0

33$3

33,7

61

Scen

ario

2 -

Real

istic

Tota

l Ope

ratin

g In

com

e (Y

r 1-1

0)To

tal O

pera

ting

Expe

nses

(Yr 1

-10)

Pred

icte

d O

pera

ting

Prof

it/Lo

ss (Y

r 1-1

0)

Scen

ario

3 -

Opt

imis

ticYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Leve

l of C

apac

ity70

%75

%80

%85

%90

%95

%10

0%10

5%11

0%11

5%To

tal O

pera

ting

Inco

me

$662

,760

$700

,728

$738

,69 7

$776

,666

$814

,634

$852

,603

$890

,571

$928

,540

$966

,508

$1,0

04,4

77To

tal O

pera

ting

Expe

nses

$384

,433

$396

,633

$409

,367

$422

,660

$436

,537

$451

,027

$466

,157

$481

,959

$498

,464

$515

,705

Pred

icte

d O

pera

ting

Prof

it/Lo

ss$2

78,3

2 7$3

04,0

95$3

29,3

30$3

54,0

06$3

78,0

97$4

01,5

76$4

24,4

14$4

46,5

80$4

68,0

44$4

88,7

72

Scen

ario

3 -

Opt

imis

ticTo

tal O

pera

ting

Inco

me

(Yr 1

-10)

Tota

l Ope

ratin

g Ex

pens

es (Y

r 1-1

0)Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

(Yr 1

-10)

Col

lect

ive

Sum

mar

y - 3

day

sYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Scen

ario

1 -

Con

serv

ativ

e U

sage

$6,4

84$3

2,25

2$5

7,48

7$8

2,16

3$1

06,2

54$1

29,7

33$1

52,5

71$1

74,7

38$1

96,2

01$2

16,9

29Sc

enar

io 2

- Re

alis

tic U

sage

$161

,134

$186

,903

$174

,319

$198

,995

$223

,08 7

$246

,565

$269

,403

$291

,570

$313

,033

$333

,761

Scen

ario

3 -

Opt

imis

tic U

sage

$278

,32 7

$304

,095

$329

,330

$354

,006

$378

,097

$401

,576

$424

,414

$446

,580

$468

,044

$488

,772

Tota

l - Y

ear

1 to

10

$5,6

10,2

56$4

,455

,443

$1,1

54,8

13

Tota

l - Y

ear

1 to

10

$6,8

57,5

14$4

,458

,743

$2,3

98,7

71

Tota

l - Y

ear

1 to

10

$8,3

36,1

84$4

,462

,943

$3,8

73,2

41

Sum

mar

y S

heet

Pag

e 6

of 6













Non-Membership Fee 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0%Adult 924 563 1,013 3,713 2,531 608 9,351 Junior 163 563 113 413 2,531 68 3,849



Canteen RevenueSalesPer rider per visit 2.00$ 2,900$ 3,000$ 3,000$ 11,000$ 13,500$ 1,800$ 35,200$ Per visitor 1.00$ 725$ 750$ 750$ 2,750$ 3,375$ 450$ 8,800$ Visitors Numbers (% of riders) 50% 725 750 750 2,750 3,375 450 8,800 CGS (35%) 35% (1,269)-$ (1,313)-$ (1,313)-$ (4,813)-$ (5,906)-$ (788)-$ (15,400)-$













Total Event Profit

8,000$ 1,000$

Number of Events

30,000$ 5,000$



5,000$ 5,000$

-$


20,200$

Revenue Page 1 of 5




Sales 44,000$ CGS 15,400-$ Gross 28,600$ 28,600$ 28,600$ 28,600$






Total Income 914,444$ 955,639$ 997,194$

Expenses




Total Expenses 385,333$ 385,333$ 385,333$



Situ

atio

n 4

(Fin

anci

al M

odel

- 50

we

4wd)

REG

ION

AL

MO

TORS

PORT

FA

CIL

ITY

McA

dam

Par

k =

con

stan

t=

incr

easi

ngC

onse

rvat

ive

Inco

me

and

expe

nditu

reYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Ram

p U

p Ra

te

100%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

Estim

ated

Ope

ratin

g In

com

eR

ider

s Fe

es32

6,33

8$

146,

852

$

163,

169

$

17

9,48

6$

195,

803

$

21

2,11

9$

228,

436

$

24

4,75

3$

261,

070

$

27

7,38

7$

293,

704

$

M

embe

rshi

p46

2,18

2$

207,

982

$

231,

091

$

25

4,20

0$

277,

309

$

30

0,41

8$

323,

527

$

34

6,63

6$

369,

746

$

39

2,85

5$

415,

964

$

C

ante

en28

,600

$

12,8

70$

14,3

00$

15

,730

$

17,1

60$

18

,590

$

20,0

20$

21

,450

$

22,8

80$

24

,310

$

25,7

40$

Ba

r an

d Fu

nctio

n18

,874

$

8,49

3$

9,43

7$

10

,381

$

11,3

25$

12

,268

$

13,2

12$

14

,156

$

15,1

00$

16

,043

$

16,9

87$

M

erch

andi

se/P

ro-S

hop

Sale

s30

,000

$

13,5

00$

15,0

00$

16

,500

$

18,0

00$

19

,500

$

21,0

00$

22

,500

$

24,0

00$

25

,500

$

27,0

00$

O

ther

Inco

me

Tenn

ant L

ease

/Ren

tal

30,0

00$

30

,000

$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

Even

t Inc

ome

12,0

00$

12

,000

$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

Cor

pora

te E

vent

Day

s6,

450

$

6,45

0$

6,45

0$

6,

450

$

6,45

0$

6,

450

$

6,45

0$

6,

450

$

6,45

0$

6,

450

$

6,45

0$

Tota

l Ope

ratin

g In

com

e Fo

reca

st91

4,44

4$

438,

147

$

481,

447

$

52

4,74

7$

568,

046

$

61

1,34

6$

654,

646

$

69

7,94

5$

741,

245

$

78

4,54

5$

827,

844

$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Ra

mp

Up

Rate

10

0%45

%50

%55

%60

%65

%70

%75

%80

%85

%90

%Es

timat

ed O

pera

ting

Expe

nditu

reSa

lari

es /

Wag

esFT

Sta

ff (in

cl o

n-co

st)

80,0

00$

80

,000

$

82

,000

$

84,0

50$

86

,151

$

88,3

05$

90

,513

$

92,7

75$

95

,095

$

97,4

72$

99

,909

$

Staf

f for

Ret

ail/c

ante

en/b

ar30

,000

$

30,0

00$

30,7

50$

31

,519

$

32,3

07$

33

,114

$

33,9

42$

34

,791

$

35,6

61$

36

,552

$

37,4

66$

A

ccou

ntin

g/Fi

nanc

e M

gmt

5,00

0$

5,

000

$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

Runn

ing

Cos

tsEl

ectr

icity

12,0

00$

12

,000

$

12

,600

$

13,2

30$

13

,892

$

14,5

86$

15

,315

$

16,0

81$

16

,885

$

17,7

29$

18

,616

$

Firs

t Aid

5,00

0$

5,

000

$

5,

250

$

5,51

3$

5,

788

$

6,07

8$

6,

381

$

6,70

0$

7,

036

$

7,38

7$

7,

757

$

Tele

phon

e6,

000

$

6,00

0$

6,30

0$

6,

615

$

6,94

6$

7,

293

$

7,65

8$

8,

041

$

8,44

3$

8,

865

$

9,30

8$

Li

cens

e Su

bmis

sion

3,00

0$

3,

000

$

3,

000

$

3,00

0$

3,

000

$

3,00

0$

3,

000

$

3,00

0$

3,

000

$

3,00

0$

3,

000

$

Fuel

/Oil

10,0

00$

10

,000

$

10

,500

$

11,0

25$

11

,576

$

12,1

55$

12

,763

$

13,4

01$

14

,071

$

14,7

75$

15

,513

$

Inte

rest

1,00

0$

1,

000

$

1,

050

$

1,10

3$

1,

158

$

1,21

6$

1,

276

$

1,34

0$

1,

407

$

1,47

7$

1,

551

$

Bank

Fee

s12

,000

$

12,0

00$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

Pe

rmits

30,0

00$

30

,000

$

31

,500

$

33,0

75$

34

,729

$

36,4

65$

38

,288

$

40,2

03$

42

,213

$

44,3

24$

46

,540

$

Trop

hies

3,00

0$

1,

350

$

1,

500

$

1,65

0$

1,

800

$

1,95

0$

2,

100

$

2,25

0$

2,

400

$

2,55

0$

2,

700

$

Was

te M

anag

emen

t5,

000

$

5,00

0$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

5,

000

$

5,00

0$

Po

stag

e1,

000

$

1,00

0$

1,00

0$

1,

000

$

1,00

0$

1,

000

$

1,00

0$

1,

000

$

1,00

0$

1,

000

$

1,00

0$

Pr

intin

g an

d St

atio

nary

2,00

0$

2,

000

$

2,

000

$

2,00

0$

2,

000

$

2,00

0$

2,

000

$

2,00

0$

2,

000

$

2,00

0$

2,

000

$

Insu

ranc

e20

,000

$

20,0

00$

21,0

00$

22

,050

$

23,1

53$

24

,310

$

25,5

26$

26

,802

$

28,1

42$

29

,549

$

31,0

27$

Re

pair

s &

Mai

nten

ance

Endu

ro T

rack

20,0

00$

20

,000

$

21

,000

$

22,0

50$

23

,153

$

24,3

10$

25

,526

$

26,8

02$

28

,142

$

29,5

49$

31

,027

$

Juni

or T

rack

10,0

00$

10

,000

$

10

,500

$

11,0

25$

11

,576

$

12,1

55$

12

,763

$

13,4

01$

14

,071

$

14,7

75$

15

,513

$

MX

Trac

k25

,000

$

25,0

00$

26,2

50$

27

,563

$

28,9

41$

30

,388

$

31,9

07$

33

,502

$

35,1

78$

36

,936

$

38,7

83$

Pl

ant a

nd E

quip

men

t20

,000

$

20,0

00$

21,0

00$

22

,050

$

23,1

53$

24

,310

$

25,5

26$

26

,802

$

28,1

42$

29

,549

$

31,0

27$

Pe

e W

ee T

rack

7,00

0$

7,

000

$

7,

350

$

7,71

8$

8,

103

$

8,50

9$

8,

934

$

9,38

1$

9,

850

$

10,3

42$

10

,859

$

Mar

ketin

gM

arke

ting

& P

rom

otio

n25

,000

$

25,0

00$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

M

isc Equi

pmen

t20

,000

$

20,0

00$

21,0

00$

22

,050

$

23,1

53$

24

,310

$

25,5

26$

26

,802

$

28,1

42$

29

,549

$

31,0

27$

Dep

reci

atio

n33

,333

$

33,3

33$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

Tota

l Exp

endi

ture

For

ecas

ts38

5,33

3$

383,

683

$

395,

883

$

40

8,61

7$

421,

910

$

43

5,78

7$

450,

277

$

46

5,40

7$

481,

209

$

49

7,71

4$

514,

955

$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0N

et C

ash

Posi

tion

54,4

64$

85

,564

$

$1

16,1

29$1

46,1

37$1

75,5

59$2

04,3

69$2

32,5

38$2

60,0

36$2

86,8

30$3

12,8

89N

et P

rese

nt V

alue

(@7%

)3,

547,

197

-$

Inpr

epar

ing

this

repo

rt,St

ratc

orp

has

relie

dup

onin

form

atio

nsu

pplie

dby

third

parti

es,

the

Spor

ting

Mot

orcy

cle

Clu

ban

dth

eir

advi

sers

,al

ong

with

publ

icly

avai

labl

ein

form

atio

n.St

ratc

orp

has

not

atte

mpt

edto

verif

yth

eac

cura

cyor

com

plet

enes

sof

the

info

rmat

ion

prov

ided

.N

eith

erSt

ratc

orp

nor

itsof

ficer

san

dem

ploy

ees

unde

rtake

san

yre

spon

sibi

lity

aris

ing

inan

yw

ayw

hats

oeve

rto

any

pers

onor

orga

nisa

tion,

exce

ptth

eSp

ortin

gM

otor

cycl

eC

lub,

inre

spec

tof

info

rmat

ion

set

out

inth

isre

port,

incl

udin

gan

yer

rors

orom

issi

ons

ther

ein

thro

ugh

negl

igen

ce o

r oth

erw

ise

how

ever

cau

sed.

This

repo

rtis

aco

nfid

entia

ldo

cum

ent

that

has

been

prep

ared

bySt

ratc

orp

Con

sulti

ngPt

yLt

d(“

Stra

tcor

p”).

Stra

tcor

pha

sun

derta

ken

this

anal

ysis

inits

capa

city

asad

viso

rin

acco

rdan

cew

ithth

esc

ope

and

subj

ect

toth

ete

rms

asso

ciat

edw

ithSt

ratc

orp’

sle

tter

ofof

fer.

Read

ers

shou

ldno

teth

atth

isre

port

may

incl

ude

impl

icit

proj

ectio

nsab

out

the

futu

re w

hich

by

thei

r nat

ure

are

unce

rtain

and

can

not b

e re

lied

upon

, as

they

are

depe

nden

ton

pote

ntia

lev

ents

whi

chha

veno

tye

toc

curr

ed.

For

thes

ere

ason

san

dot

hers

,pr

oper

tyde

velo

pmen

tis

inhe

rent

lyris

kyan

d fre

quen

tly th

ings

do

not t

urn

out a

s pl

anne

d.

Dis

clai

mer

of L

iabi

lity:

Con

serv

ativ

e S

cena

rioP

age

3 of

5

Situ

atio

n 4

(Fin

anci

al M

odel

- 50

we

4wd)

Regi

onal

Mot

orsp

ort F

acili

ty :

McA

dam

Par

k =

con

stan

t=

incr

easi

ngRe

alis

tic In

com

e an

d Ex

pend

iture

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Ra

mp

Up

Rate

10

0%60

%65

%65

%70

%75

%80

%85

%90

%95

%10

0%Es

timat

ed O

pera

ting

Inco

me

Rid

ers

Fees

326,

338

$

19

5,80

3$

212,

119

$

21

2,11

9$

228,

436

$

24

4,75

3$

261,

070

$

27

7,38

7$

293,

704

$

31

0,02

1$

326,

338

$

M

embe

rshi

p46

2,18

2$

277,

309

$

30

0,41

8$

300,

418

$

32

3,52

7$

346,

636

$

36

9,74

6$

392,

855

$

41

5,96

4$

439,

073

$

46

2,18

2$

Can

teen

28,6

00$

17

,160

$

18

,590

$

18,5

90$

20

,020

$

21,4

50$

22

,880

$

24,3

10$

25

,740

$

27,1

70$

28

,600

$

Bar

and

Func

tion

18,8

74$

11

,325

$

12

,268

$

12,2

68$

13

,212

$

14,1

56$

15

,100

$

16,0

43$

16

,987

$

17,9

31$

18

,874

$

Mer

chan

dise

/Pro

-Sho

p Sa

les

30,0

00$

18

,000

$

19

,500

$

19,5

00$

21

,000

$

22,5

00$

24

,000

$

25,5

00$

27

,000

$

28,5

00$

30

,000

$

Oth

er In

com

eTe

nnan

t Lea

se/R

enta

l30

,000

$

30,0

00$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

Ev

ent I

ncom

e50

,000

$

50,0

00$

50,0

00$

50

,000

$

50,0

00$

50

,000

$

50,0

00$

50

,000

$

50,0

00$

50

,000

$

50,0

00$

C

orpo

rate

Eve

nt D

ays

9,64

5$

9,64

5$

9,

645

$

9,

645

$

9,

645

$

9,

645

$

9,

645

$

9,

645

$

9,

645

$

9,

645

$

9,

645

$

Tota

l Ope

ratin

g In

com

e Fo

reca

st95

5,63

9$

609,

241

$

652,

541

$

65

2,54

1$

695,

841

$

73

9,14

0$

782,

440

$

82

5,74

0$

869,

039

$

91

2,33

9$

955,

639

$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Ra

mp

Up

Rate

10

0%60

%65

%65

%70

%75

%80

%85

%90

%95

%10

0%Es

timat

ed O

pera

ting

Expe

nditu

reSa

lari

es /

Wag

esFT

Sta

ff (in

cl o

n-co

st)

80,0

00$

80

,000

$

82

,000

$

84,0

50$

86

,151

$

88,3

05$

90

,513

$

92,7

75$

95

,095

$

97,4

72$

99

,909

$

Staf

f for

Ret

ail/c

ante

en/b

ar30

,000

$

30,0

00$

30,7

50$

31

,519

$

32,3

07$

33

,114

$

33,9

42$

34

,791

$

35,6

61$

36

,552

$

37,4

66$

A

ccou

ntin

g/Fi

nanc

e M

gmt

5,00

0$

5,00

0$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

Ru

nnin

g C

osts

Elec

tric

ity12

,000

$

12,0

00$

12,6

00$

13

,230

$

13,8

92$

14

,586

$

15,3

15$

16

,081

$

16,8

85$

17

,729

$

18,6

16$

Fi

rst A

id5,

000

$

5,

000

$

5,25

0$

5,51

3$

5,78

8$

6,07

8$

6,38

1$

6,70

0$

7,03

6$

7,38

7$

7,75

7$

Tele

phon

e6,

000

$

6,

000

$

6,30

0$

6,61

5$

6,94

6$

7,29

3$

7,65

8$

8,04

1$

8,44

3$

8,86

5$

9,30

8$

Lice

nse

Subm

issi

on3,

000

$

3,

000

$

3,00

0$

3,00

0$

3,00

0$

3,00

0$

3,00

0$

3,00

0$

3,00

0$

3,00

0$

3,00

0$

Fuel

/Oil

10,0

00$

10

,000

$

10

,500

$

11,0

25$

11

,576

$

12,1

55$

12

,763

$

13,4

01$

14

,071

$

14,7

75$

15

,513

$

Inte

rest

1,

000

$

1,

000

$

1,05

0$

1,10

3$

1,15

8$

1,21

6$

1,27

6$

1,34

0$

1,40

7$

1,47

7$

1,55

1$

Bank

Fee

s12

,000

$

12,0

00$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

Pe

rmits

30,0

00$

30

,000

$

31

,500

$

33,0

75$

34

,729

$

36,4

65$

38

,288

$

40,2

03$

42

,213

$

44,3

24$

46

,540

$

Trop

hies

3,00

0$

1,80

0$

1,

950

$

1,

950

$

2,

100

$

2,

250

$

2,

400

$

2,

550

$

2,

700

$

2,

850

$

3,

000

$

W

aste

Man

agem

ent

5,00

0$

5,00

0$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

Po

stag

e1,

000

$

1,

000

$

1,00

0$

1,00

0$

1,00

0$

1,00

0$

1,00

0$

1,00

0$

1,00

0$

1,00

0$

1,00

0$

Prin

ting

and

Stat

iona

ry2,

000

$

2,

000

$

2,00

0$

2,00

0$

2,00

0$

2,00

0$

2,00

0$

2,00

0$

2,00

0$

2,00

0$

2,00

0$

Insu

ranc

e20

,000

$

20,0

00$

21,0

00$

22

,050

$

23,1

53$

24

,310

$

25,5

26$

26

,802

$

28,1

42$

29

,549

$

31,0

27$

Re

pair

s &

Mai

nten

ance

Endu

ro T

rack

20,0

00$

20

,000

$

21

,000

$

22,0

50$

23

,153

$

24,3

10$

25

,526

$

26,8

02$

28

,142

$

29,5

49$

31

,027

$

Juni

or T

rack

10,0

00$

10

,000

$

10

,500

$

11,0

25$

11

,576

$

12,1

55$

12

,763

$

13,4

01$

14

,071

$

14,7

75$

15

,513

$

MX

Trac

k25

,000

$

25,0

00$

26,2

50$

27

,563

$

28,9

41$

30

,388

$

31,9

07$

33

,502

$

35,1

78$

36

,936

$

38,7

83$

Pl

ant a

nd E

quip

men

t20

,000

$

20,0

00$

21,0

00$

22

,050

$

23,1

53$

24

,310

$

25,5

26$

26

,802

$

28,1

42$

29

,549

$

31,0

27$

Pe

e W

ee T

rack

7,00

0$

7,00

0$

7,

350

$

7,

718

$

8,

103

$

8,

509

$

8,

934

$

9,

381

$

9,

850

$

10

,342

$

10,8

59$

M

arke

ting

Mar

ketin

g &

Pro

mot

ion

25,0

00$

25

,000

$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

Mis

c Equi

pmen

t20

,000

$

20,0

00$

21,0

00$

22

,050

$

23,1

53$

24

,310

$

25,5

26$

26

,802

$

28,1

42$

29

,549

$

31,0

27$

Dep

reci

atio

n33

,333

$

33,3

33$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

Tota

l Exp

endi

ture

For

ecas

t s38

5,33

3$

384,

133

$

396,

333

$

40

8,91

7$

422,

210

$

43

6,08

7$

450,

577

$

46

5,70

7$

481,

509

$

49

8,01

4$

515,

255

$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0N

et C

ash

Posi

tion

$225

,108

$256

,208

$243

,624

$273

,631

$303

,053

$331

,863

$360

,032

$387

,530

$414

,325

$440

,383

Net

Pre

sent

Val

ue (@

7%)

-$2,

637,

400

Inpr

epar

ing

this

repo

rt,St

ratc

orp

has

relie

dup

onin

form

atio

nsu

pplie

dby

third

parti

es,

the

Spor

ting

Mot

orcy

cle

Clu

ban

dth

eir

advi

sers

,al

ong

with

publ

icly

avai

labl

ein

form

atio

n.St

ratc

orp

has

nota

ttem

pted

tove

rify

the

accu

racy

orco

mpl

eten

ess

ofth

ein

form

atio

npr

ovid

ed.

Nei

ther

Stra

tcor

pno

rits

offic

ers

and

empl

oyee

sun

derta

kes

any

resp

onsi

bilit

yar

isin

gin

any

way

wha

tsoe

ver

toan

ype

rson

oror

gani

satio

n,ex

cept

the

Spor

ting

Mot

orcy

cle

Clu

b,in

resp

ecto

finf

orm

atio

nse

tout

inth

isre

port,

incl

udin

gan

yer

rors

orom

issi

ons

ther

ein

thro

ugh

negl

igen

ceor

othe

rwis

e ho

wev

er c

ause

d.

This

repo

rtis

aco

nfid

entia

ldo

cum

ent

that

has

been

prep

ared

bySt

ratc

orp

Con

sulti

ngPt

yLt

d(“

Stra

tcor

p”).

Stra

tcor

pha

sun

derta

ken

this

anal

ysis

inits

capa

city

asad

viso

rin

acco

rdan

cew

ithth

esc

ope

and

subj

ect

toth

ete

rms

asso

ciat

edw

ithSt

ratc

orp’

sle

tter

ofof

fer.

Read

ers

shou

ldno

teth

atth

isre

port

may

incl

ude

impl

icit

proj

ectio

nsab

out

the

futu

rew

hich

byth

eir

natu

rear

eun

certa

inan

dca

nnot

bere

lied

upon

,as

they

are

depe

nden

ton

pote

ntia

leve

nts

whi

chha

veno

tyet

occu

rred

.Fo

rth

ese

reas

ons

and

othe

rs,

prop

erty

deve

lopm

ent

isin

here

ntly

risky

and

frequ

ently

thin

gs d

o no

t tur

n ou

t as

plan

ned.

Dis

clai

mer

of L

iabi

lity:

Rea

listic

Sce

nario

Pag

e 4

of 5

Situ

atio

n 4

(Fin

anci

al M

odel

- 50

we

4wd)

Regi

onal

Mot

orsp

ort F

acili

tyM

cAda

m P

ark

= c

onst

ant

= in

crea

sing

Opt

imis

tic In

com

e an

d Ex

pend

iture

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Ra

mp

Up

Rate

10

0%70

%75

%80

%85

%90

%95

%10

0%10

5%11

0%11

5%Es

timat

ed O

pera

ting

Inco

me

Rid

ers

Fees

326,

338

$

22

8,43

6$

244,

753

$

26

1,07

0$

277,

387

$

29

3,70

4$

310,

021

$

32

6,33

8$

342,

654

$

35

8,97

1$

375,

288

$

M

embe

rshi

p46

2,18

2$

323,

527

$

34

6,63

6$

369,

746

$

39

2,85

5$

415,

964

$

43

9,07

3$

462,

182

$

48

5,29

1$

508,

400

$

53

1,50

9$

Can

teen

28,6

00$

20

,020

$

21

,450

$

22,8

80$

24

,310

$

25,7

40$

27

,170

$

28,6

00$

30

,030

$

31,4

60$

32

,890

$

Bar

and

Func

tion

18,8

74$

13

,212

$

14

,156

$

15,1

00$

16

,043

$

16,9

87$

17

,931

$

18,8

74$

19

,818

$

20,7

62$

21

,706

$

Mer

chan

dise

/Pro

-Sho

p Sa

les

30,0

00$

21

,000

$

22

,500

$

24,0

00$

25

,500

$

27,0

00$

28

,500

$

30,0

00$

31

,500

$

33,0

00$

34

,500

$

Oth

er In

com

eTe

nnan

t Lea

se/R

enta

l30

,000

$

30,0

00$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

Ev

ent I

ncom

e81

,000

$

81,0

00$

81,0

00$

81

,000

$

81,0

00$

81

,000

$

81,0

00$

81

,000

$

81,0

00$

81

,000

$

81,0

00$

C

orpo

rate

Eve

nt D

ays

20,2

00$

20

,200

$

20

,200

$

20,2

00$

20

,200

$

20,2

00$

20

,200

$

20,2

00$

20

,200

$

20,2

00$

20

,200

$

Tota

l Ope

ratin

g In

com

e Fo

reca

st99

7,19

4$

737,

396

$

780,

695

$

82

3,99

5$

867,

295

$

91

0,59

4$

953,

894

$

99

7,19

4$

1,04

0,49

3$

1,

083,

793

$

1,12

7,09

3$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Ra

mp

Up

Rate

10

0%70

%75

%80

%85

%90

%95

%10

0%10

5%11

0%11

5%Es

timat

ed O

pera

ting

Expe

nditu

reSa

lari

es /

Wag

esFT

Sta

ff (in

cl o

n-co

st)

80,0

00$

80

,000

$

82

,000

$

84,0

50$

86

,151

$

88,3

05$

90

,513

$

92,7

75$

95

,095

$

97,4

72$

99

,909

$

Staf

f for

Ret

ail/c

ante

en/b

ar30

,000

$

30,0

00$

30,7

50$

31

,519

$

32,3

07$

33

,114

$

33,9

42$

34

,791

$

35,6

61$

36

,552

$

37,4

66$

A

ccou

ntin

g/Fi

nanc

e M

gmt

5,00

0$

5,00

0$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

5,

000

$

Ru

nnin

g C

osts

Elec

tric

ity12

,000

$

12,0

00$

12,6

00$

13

,230

$

13,8

92$

14

,586

$

15,3

15$

16

,081

$

16,8

85$

17

,729

$

18,6

16$

Fi

rst A

id5,

000

$

5,

000

$

5,25

0$

5,51

3$

5,78

8$

6,07

8$

6,38

1$

6,70

0$

7,03

6$

7,38

7$

7,75

7$

Tele

phon

e6,

000

$

6,

000

$

6,30

0$

6,61

5$

6,94

6$

7,29

3$

7,65

8$

8,04

1$

8,44

3$

8,86

5$

9,30

8$

Lice

nse

Subm

issi

on3,

000

$

3,

000

$

3,00

0$

3,00

0$

3,00

0$

3,00

0$

3,00

0$

3,00

0$

3,00

0$

3,00

0$

3,00

0$

Fuel

/Oil

10,0

00$

10

,000

$

10

,500

$

11,0

25$

11

,576

$

12,1

55$

12

,763

$

13,4

01$

14

,071

$

14,7

75$

15

,513

$

Inte

rest

1,00

0$

1,00

0$

1,

050

$

1,

103

$

1,

158

$

1,

216

$

1,

276

$

1,

340

$

1,

407

$

1,

477

$

1,

551

$

Ba

nk F

ees

12,0

00$

12

,000

$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

Perm

its30

,000

$

30,0

00$

31,5

00$

33

,075

$

34,7

29$

36

,465

$

38,2

88$

40

,203

$

42,2

13$

44

,324

$

46,5

40$

Tr

ophi

es3,

000

$

2,

100

$

2,25

0$

2,40

0$

2,55

0$

2,70

0$

2,85

0$

3,00

0$

3,15

0$

3,30

0$

3,45

0$

Was

te M

anag

emen

t5,

000

$

5,

000

$

5,00

0$

5,00

0$

5,00

0$

5,00

0$

5,00

0$

5,00

0$

5,00

0$

5,00

0$

5,00

0$

Post

age

1,00

0$

1,00

0$

1,

000

$

1,

000

$

1,

000

$

1,

000

$

1,

000

$

1,

000

$

1,

000

$

1,

000

$

1,

000

$

Pr

intin

g an

d St

atio

nary

2,00

0$

2,00

0$

2,

000

$

2,

000

$

2,

000

$

2,

000

$

2,

000

$

2,

000

$

2,

000

$

2,

000

$

2,

000

$

In

sura

nce

20,0

00$

20

,000

$

21

,000

$

22,0

50$

23

,153

$

24,3

10$

25

,526

$

26,8

02$

28

,142

$

29,5

49$

31

,027

$

Repa

irs

& M

aint

enan

ceEn

duro

Tra

ck20

,000

$

20,0

00$

21,0

00$

22

,050

$

23,1

53$

24

,310

$

25,5

26$

26

,802

$

28,1

42$

29

,549

$

31,0

27$

Ju

nior

Tra

ck10

,000

$

10,0

00$

10,5

00$

11

,025

$

11,5

76$

12

,155

$

12,7

63$

13

,401

$

14,0

71$

14

,775

$

15,5

13$

M

X Tr

ack

25,0

00$

25

,000

$

26

,250

$

27,5

63$

28

,941

$

30,3

88$

31

,907

$

33,5

02$

35

,178

$

36,9

36$

38

,783

$

Plan

t and

Equ

ipm

ent

20,0

00$

20

,000

$

21

,000

$

22,0

50$

23

,153

$

24,3

10$

25

,526

$

26,8

02$

28

,142

$

29,5

49$

31

,027

$

Pee

Wee

Tra

ck7,

000

$

7,

000

$

7,35

0$

7,71

8$

8,10

3$

8,50

9$

8,93

4$

9,38

1$

9,85

0$

10,3

42$

10

,859

$

Mar

ketin

gM

arke

ting

& P

rom

otio

n25

,000

$

25,0

00$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

25

,000

$

25,0

00$

M

isc Equi

pmen

t20

,000

$

20,0

00$

21,0

00$

22

,050

$

23,1

53$

24

,310

$

25,5

26$

26

,802

$

28,1

42$

29

,549

$

31,0

27$

Dep

reci

atio

n33

,333

$

33,3

33$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

33

,333

$

33,3

33$

Tota

l Exp

endi

ture

For

ecas

t s38

5,33

3$

384,

433

$

396,

633

$

40

9,36

7$

422,

660

$

43

6,53

7$

451,

027

$

46

6,15

7$

481,

959

$

49

8,46

4$

515,

705

$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0N

et C

ash

Posi

tion

$352

,962

$384

,062

$414

,628

$444

,635

$474

,057

$502

,867

$531

,036

$558

,534

$585

,329

$611

,388

Net

Pre

sent

Val

ue (@

7%)

-$1,

587,

825

Inpr

epar

ing

this

repo

rt,St

ratc

orp

has

relie

dup

onin

form

atio

nsu

pplie

dby

third

parti

es,

the

Spor

ting

Mot

orcy

cle

Clu

ban

dth

eir

advi

sers

,al

ong

with

publ

icly

avai

labl

ein

form

atio

n.St

ratc

orp

has

nota

ttem

pted

tove

rify

the

accu

racy

orco

mpl

eten

ess

ofth

ein

form

atio

npr

ovid

ed.

Nei

ther

Stra

tcor

pno

rits

offic

ers

and

empl

oyee

sun

derta

kes

any

resp

onsi

bilit

yar

isin

gin

any

way

wha

tsoe

ver

toan

ype

rson

oror

gani

satio

n,ex

cept

the

Spor

ting

Mot

orcy

cle

Clu

b,in

resp

ecto

finf

orm

atio

nse

tout

inth

isre

port,

incl

udin

gan

yer

rors

orom

issi

ons

ther

ein

thro

ugh

negl

igen

ceor

othe

rwis

e ho

wev

er c

ause

d.

This

repo

rtis

aco

nfid

entia

ldo

cum

ent

that

has

been

prep

ared

bySt

ratc

orp

Con

sulti

ngPt

yLt

d(“

Stra

tcor

p”).

Stra

tcor

pha

sun

derta

ken

this

anal

ysis

inits

capa

city

asad

viso

rin

acco

rdan

cew

ithth

esc

ope

and

subj

ect

toth

ete

rms

asso

ciat

edw

ithSt

ratc

orp’

sle

tter

ofof

fer.

Read

ers

shou

ldno

teth

atth

isre

port

may

incl

ude

impl

icit

proj

ectio

nsab

out

the

futu

rew

hich

byth

eir

natu

rear

eun

certa

inan

dca

nnot

bere

lied

upon

,as

they

are

depe

nden

ton

pote

ntia

leve

nts

whi

chha

veno

tyet

occu

rred

.Fo

rth

ese

reas

ons

and

othe

rs,

prop

erty

deve

lopm

ent

isin

here

ntly

risky

and

frequ

ently

thin

gs d

o no

t tur

n ou

t as

plan

ned.

Dis

clai

mer

of L

iabi

lity:

Opt

imis

ticP

age

5 of

5

Situ

atio

n 4

(Fin

anci

al M

odel

- 50

we

4wd)

McA

dam

Par

k - S

ituat

ion

4 (6

Ope

ratin

g D

ays)

Scen

ario

1 -

Con

serv

ativ

eYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Leve

l of C

apac

ity45

%50

%55

%60

%65

%70

%75

%80

%85

%90

%To

tal O

pera

ting

Inco

me

$438

,14 7

$481

,447

$524

,747

$568

,046

$611

,346

$654

,646

$697

,945

$741

,245

$784

,545

$827

,844

Tota

l Ope

ratin

g Ex

pens

es$3

83,6

83$3

95,8

83$4

08,6

1 7$4

21,9

10$4

35,7

87$4

50,2

77$4

65,4

07$4

81,2

09$4

97,7

14$5

14,9

55Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

$54,

464

$85,

564

$116

,129

$146

,13 7

$175

,559

$204

,369

$232

,538

$260

,036

$286

,830

$312

,889

Scen

ario

1 -

Con

serv

ativ

eTo

tal O

pera

ting

Inco

me

(Yr 1

-10)

Tota

l Ope

ratin

g Ex

pens

es (Y

r 1-1

0)Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

(Yr 1

-10)

Scen

ario

2 -

Real

istic

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Le

vel o

f Cap

acity

60%

65%

65%

70%

75%

80%

85%

90%

95%

100%

Tota

l Ope

ratin

g In

com

e$6

09,2

41$6

52,5

41$6

52,5

41$6

95,8

41$7

39,1

40$7

82,4

40$8

25,7

40$8

69,0

39$9

12,3

39$9

55,6

39To

tal O

pera

ting

Expe

nses

$384

,133

$396

,333

$408

,91 7

$422

,210

$436

,087

$450

,577

$465

,707

$481

,509

$498

,014

$515

,255

Pred

icte

d O

pera

ting

Prof

it/Lo

ss$2

25,1

08$2

56,2

08$2

43,6

24$2

73,6

31$3

03,0

53$3

31,8

63$3

60,0

32$3

87,5

30$4

14,3

25$4

40,3

83

Scen

ario

2 -

Real

istic

Tota

l Ope

ratin

g In

com

e (Y

r 1-1

0)To

tal O

pera

ting

Expe

nses

(Yr 1

-10)

Pred

icte

d O

pera

ting

Prof

it/Lo

ss (Y

r 1-1

0)

Scen

ario

3 -

Opt

imis

ticYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Leve

l of C

apac

ity70

%75

%80

%85

%90

%95

%10

0%10

5%11

0%11

5%To

tal O

pera

ting

Inco

me

$737

,396

$780

,695

$823

,995

$867

,295

$910

,594

$953

,894

$997

,194

$1,0

40,4

93$1

,083

,793

$1,1

27,0

93To

tal O

pera

ting

Expe

nses

$384

,433

$396

,633

$409

,36 7

$422

,660

$436

,537

$451

,027

$466

,157

$481

,959

$498

,464

$515

,705

Pred

icte

d O

pera

ting

Prof

it/Lo

ss$3

52,9

62$3

84,0

62$4

14,6

28$4

44,6

35$4

74,0

5 7$5

02,8

67$5

31,0

36$5

58,5

34$5

85,3

29$6

11,3

88

Scen

ario

3 -

Opt

imis

ticTo

tal O

pera

ting

Inco

me

(Yr 1

-10)

Tota

l Ope

ratin

g Ex

pens

es (Y

r 1-1

0)Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

(Yr 1

-10)

Col

lect

ive

Sum

mar

y - 3

day

sYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Scen

ario

1 -

Con

serv

ativ

e U

sage

$54,

464

$85,

564

$116

,129

$146

,13 7

$175

,559

$204

,369

$232

,538

$260

,036

$286

,830

$312

,889

Scen

ario

2 -

Real

istic

Usa

ge$2

25,1

08$2

56,2

08$2

43,6

24$2

73,6

31$3

03,0

53$3

31,8

63$3

60,0

32$3

87,5

30$4

14,3

25$4

40,3

83Sc

enar

io 3

- O

ptim

istic

Usa

ge$3

52,9

62$3

84,0

62$4

14,6

28$4

44,6

35$4

74,0

5 7$5

02,8

67$5

31,0

36$5

58,5

34$5

85,3

29$6

11,3

88

Tota

l - Y

ear

1 to

10

$6,3

29,9

58$4

,455

,443

$1,8

74,5

14

Tota

l - Y

ear

1 to

10

$7,6

94,5

01$4

,458

,743

$3,2

35,7

58

Tota

l - Y

ear

1 to

10

$9,3

22,4

42$4

,462

,943

$4,8

59,4

99

Sum

mar

y S

heet

Pag

e 6

of 6






RidersWeekends 1,050 600 600 2,500 2,750 500 8,000 Weekdays 400 1,125 1,125 3,750 5,000 500 11,900 Total Annual Riders 1,450 1,725 1,725 6,250 7,750 1,000 19,900







Non-Membership Fee 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0%Adult 924 647 1,164 4,219 2,906 675 10,536 Junior 163 647 129 469 2,906 75 4,389



Canteen RevenueSalesPer rider per visit 2.00$ 2,900$ 3,450$ 3,450$ 12,500$ 15,500$ 2,000$ 39,800$ Per visitor 1.00$ 725$ 863$ 863$ 3,125$ 3,875$ 500$ 9,950$ Visitors Numbers (% of riders) 50% 725 863 863 3,125 3,875 500 9,950 CGS 35% (1,269)-$ (1,509)-$ (1,509)-$ (5,469)-$ (6,781)-$ (875)-$ (17,413)-$




Merchandise/Pro-Shop RevenueSales 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 60,000$ CGS 50% (5,000)-$ (5,000)-$ (5,000)-$ (5,000)-$ (5,000)-$ (5,000)-$ (30,000)-$









Total Event Profit

8,000$ 1,000$

Number of Events

30,000$ 5,000$



5,000$ 5,000$

-$


20,200$

Revenue Page 1 of 5




Sales 49,750$ CGS 17,413-$ Gross 32,338$ 32,338$ 32,338$ 32,338$






Total Income 1,021,066$ 1,062,261$ 1,103,816$

Expenses




Total Expenses 395,333$ 395,333$ 395,333$



Situ

atio

n 5

(Fin

anci

al M

odel

- 50

we

5wd)

REG

ION

AL

MO

TORS

PORT

FA

CIL

ITY

McA

dam

Par

k =

con

stan

t=

incr

easi

ngC

onse

rvat

ive

Inco

me

and

expe

nditu

reYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Ram

p U

p Ra

te

100%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

Estim

ated

Ope

ratin

g In

com

eR

ider

s Fe

es36

8,73

8$

16

5,93

2$

18

4,36

9$

202,

806

$

22

1,24

3$

239,

679

$

25

8,11

6$

276,

553

$

29

4,99

0$

313,

427

$

33

1,86

4$

Mem

bers

hip

522,

667

$

235,

200

$

261,

333

$

28

7,46

7$

313,

600

$

33

9,73

3$

365,

867

$

39

2,00

0$

418,

134

$

44

4,26

7$

470,

400

$

C

ante

en32

,338

$

14

,552

$

16

,169

$

17,7

86$

19

,403

$

21,0

19$

22

,636

$

24,2

53$

25

,870

$

27,4

87$

29

,104

$

Bar

and

Func

tion

18,8

74$

8,49

3$

9,43

7$

10

,381

$

11,3

25$

12

,268

$

13,2

12$

14

,156

$

15,1

00$

16

,043

$

16,9

87$

M

erch

andi

se/P

ro-S

hop

Sale

s30

,000

$

13

,500

$

15

,000

$

16,5

00$

18

,000

$

19,5

00$

21

,000

$

22,5

00$

24

,000

$

25,5

00$

27

,000

$

Oth

er In

com

eTe

nnan

t Lea

se/R

enta

l30

,000

$

30

,000

$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

30,0

00$

30

,000

$

Even

t Inc

ome

12,0

00$

12,0

00$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

12

,000

$

12,0

00$

C

orpo

rate

Eve

tn D

ay6,

450

$

6,45

0$

6,45

0$

6,

450

$

6,45

0$

6,

450

$

6,45

0$

6,

450

$

6,45

0$

6,

450

$

6,45

0$

Tota

l Ope

ratin

g In

com

e Fo

reca

st1,

021,

066

$

48

6,12

7$

53

4,75

8$

583,

389

$

63

2,02

0$

680,

651

$

72

9,28

1$

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$

82

6,54

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174

$

92

3,80

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Year

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Year

3Ye

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Year

5Ye

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Year

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Year

9Ye

ar 1

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mp

Up

Rate

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0%45

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%75

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Expe

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Pl

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M

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Pro

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Dep

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33

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33,3

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Tota

l Exp

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For

ecas

ts39

5,33

3$

39

3,68

3$

40

6,13

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419,

123

$

43

2,67

8$

446,

825

$

46

1,59

1$

477,

004

$

49

3,09

6$

509,

898

$

52

7,44

4$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0N

et C

ash

Posi

tion

92,4

44$

12

8,62

5$

$164

,266

$199

,341

$233

,826

$267

,691

$300

,908

$333

,447

$365

,275

$396

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Net

Pre

sent

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ue (@

7%)

3,16

6,70

0-$

Inpr

epar

ing

this

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dup

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icly

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sed.

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that

has

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prep

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ratc

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Con

sulti

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Stra

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tcor

pha

sun

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this

anal

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capa

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impl

icit

proj

ectio

nsab

out

the

futu

re w

hich

by

thei

r nat

ure

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unce

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and

can

not b

e re

lied

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, as

they

are

depe

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ton

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chha

veno

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ed.

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dot

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Dis

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serv

ativ

e S

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Situ

atio

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odel

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we

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onal

Mot

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dam

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con

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com

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d Ex

pend

iture

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Ra

mp

Up

Rate

10

0%60

%65

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Can

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19,4

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22,6

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24

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$

25,8

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$

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$

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Ba

r an

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$

11

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$

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$

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13

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$

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15

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$

16,0

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16

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$

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$

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$

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$

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O

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me

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Ev

ent I

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$

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Cor

pora

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Day

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9,

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645

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Tota

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721,

846

$

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$

86

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916,

369

$

96

5,00

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1,

062,

261

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Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Ra

mp

Up

Rate

10

0%60

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%65

%70

%75

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ting

Expe

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92,2

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94

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$

96,9

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99

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$

101,

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$

10

4,37

2$

106,

982

$

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112,

398

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St

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or R

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31

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$

32,3

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$

33,9

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$

35,6

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$

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$

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$

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$

14,5

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15

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$

16,0

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16

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$

17,7

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Firs

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Bank

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$

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$

31

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$

33,0

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$

36,4

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$

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$

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Insu

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Repa

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12,7

63$

13

,401

$

14,0

71$

14

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$

15,5

13$

M

X Tr

ack

25,0

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25,0

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26,2

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27

,563

$

28,9

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30

,388

$

31,9

07$

33

,502

$

35,1

78$

36

,936

$

38,7

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Pl

ant a

nd E

quip

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$

20

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$

21

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$

22,0

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23

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$

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25

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28

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$

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31

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$

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$

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350

$

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8$

8,

103

$

8,50

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8,

934

$

9,38

1$

9,

850

$

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$

Mar

ketin

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ting

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25

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Mis

c Equi

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$

20

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21

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22,0

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23

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$

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28

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$

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31

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$

Dep

reci

atio

n33

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$

33

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$

33

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33,3

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33

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33,3

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33,3

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Tota

l Exp

endi

ture

For

ecas

ts39

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3$

39

4,13

3$

40

6,58

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419,

423

$

43

2,97

8$

447,

125

$

46

1,89

1$

477,

304

$

49

3,39

6$

510,

198

$

52

7,74

4$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0N

et C

ash

Posi

tion

$279

,081

$315

,262

$302

,422

$337

,498

$371

,982

$405

,847

$439

,064

$471

,603

$503

,432

$534

,517

Net

Pre

sent

Val

ue (@

7%)

-$2,

177,

907

Inpr

epar

ing

this

repo

rt,St

ratc

orp

has

relie

dup

onin

form

atio

nsu

pplie

dby

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parti

es,

the

Spor

ting

Mot

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cle

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ban

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ong

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icly

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form

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mpt

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plet

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ared

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Con

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ngPt

yLt

d(“

Stra

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Stra

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pha

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this

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ysis

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city

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viso

rin

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ope

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ect

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ciat

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orp’

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tter

ofof

fer.

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ers

shou

ldno

teth

atth

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port

may

incl

ude

impl

icit

proj

ectio

nsab

out

the

futu

re w

hich

by

thei

r nat

ure

are

unce

rtain

and

can

not b

e re

lied

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, as

they

are

depe

nden

ton

pote

ntia

lev

ents

whi

chha

veno

tye

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curr

ed.

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ere

ason

san

dot

hers

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tyde

velo

pmen

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rent

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quen

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urn

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s pl

anne

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Dis

clai

mer

of L

iabi

lity:

Rea

listic

Sce

nario

Pag

e 4

of 5

Situ

atio

n 5

(Fin

anci

al M

odel

- 50

we

5wd)

Regi

onal

Mot

orsp

ort F

acili

tyM

cAda

m P

ark

= c

onst

ant

= in

crea

sing

Opt

imis

tic In

com

e an

d Ex

pend

iture

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Ra

mp

Up

Rate

10

0%70

%75

%80

%85

%90

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pera

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Inco

me

Rid

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Fees

368,

738

$

258,

116

$

276,

553

$

29

4,99

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313,

427

$

33

1,86

4$

350,

301

$

36

8,73

8$

387,

174

$

40

5,61

1$

424,

048

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M

embe

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5,86

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134

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44

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470,

400

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49

6,53

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522,

667

$

54

8,80

0$

574,

934

$

60

1,06

7$

Can

teen

32,3

38$

22,6

36$

24,2

53$

25

,870

$

27,4

87$

29

,104

$

30,7

21$

32

,338

$

33,9

54$

35

,571

$

37,1

88$

Ba

r an

d Fu

nctio

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$

13

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$

14

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$

15,1

00$

16

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$

16,9

87$

17

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$

18,8

74$

19

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$

20,7

62$

21

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$

Mer

chan

dise

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p Sa

les

30,0

00$

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00$

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00$

24

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$

25,5

00$

27

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$

28,5

00$

30

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$

31,5

00$

33

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$

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O

ther

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me

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Ev

ent I

ncom

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$

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$

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Cor

pora

te E

vetn

Day

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$

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Tota

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st1,

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81

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293

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95

7,92

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185

$

1,10

3,81

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152,

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$

1,20

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8$

1,

249,

709

$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Ra

mp

Up

Rate

10

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92,2

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94

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$

96,9

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$

101,

827

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10

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106,

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$

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St

aff f

or R

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$

32,3

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$

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$

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$

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$

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$

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15

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$

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16

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$

17,7

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Firs

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Fu

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Ba

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Pe

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34,7

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$

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$

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$

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Pr

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In

sura

nce

20,0

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20,0

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21,0

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22

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$

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$

25,5

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26

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$

28,1

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29

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$

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Re

pair

s &

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ro T

rack

20,0

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00$

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nior

Tra

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$

MX

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$

26

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$

27,5

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$

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31

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$

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$

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$

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t and

Equ

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20,0

00$

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Pe

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718

$

8,10

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509

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381

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arke

ting

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ketin

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25,0

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$

20

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$

21

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$

22,0

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23

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$

24,3

10$

25

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$

26,8

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28

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$

29,5

49$

31

,027

$

Dep

reci

atio

n33

,333

$

33

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$

33

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$

33,3

33$

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$

33,3

33$

33

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$

33,3

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33

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$

33,3

33$

33

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$

Tota

l Exp

endi

ture

For

ecas

ts39

5,33

3$

39

4,43

3$

40

6,88

3$

419,

873

$

43

3,42

8$

447,

575

$

46

2,34

1$

477,

754

$

49

3,84

6$

510,

648

$

52

8,19

4$

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0N

et C

ash

Posi

tion

$417

,598

$453

,779

$489

,420

$524

,495

$558

,980

$592

,845

$626

,062

$658

,601

$690

,429

$721

,515

Net

Pre

sent

Val

ue (@

7%)

-$1,

032,

358

Inpr

epar

ing

this

repo

rt,St

ratc

orp

has

relie

dup

onin

form

atio

nsu

pplie

dby

third

parti

es,

the

Spor

ting

Mot

orcy

cle

Clu

ban

dth

eir

advi

sers

,al

ong

with

publ

icly

avai

labl

ein

form

atio

n.St

ratc

orp

has

not

atte

mpt

edto

verif

yth

eac

cura

cyor

com

plet

enes

sof

the

info

rmat

ion

prov

ided

.N

eith

erSt

ratc

orp

nor

itsof

ficer

san

dem

ploy

ees

unde

rtake

san

yre

spon

sibi

lity

aris

ing

inan

yw

ayw

hats

oeve

rto

any

pers

onor

orga

nisa

tion,

exce

ptth

eSp

ortin

gM

otor

cycl

eC

lub,

inre

spec

tof

info

rmat

ion

set

out

inth

isre

port,

incl

udin

gan

yer

rors

orom

issi

ons

ther

ein

thro

ugh

negl

igen

ce o

r oth

erw

ise

how

ever

cau

sed.

This

repo

rtis

aco

nfid

entia

ldo

cum

ent

that

has

been

prep

ared

bySt

ratc

orp

Con

sulti

ngPt

yLt

d(“

Stra

tcor

p”).

Stra

tcor

pha

sun

derta

ken

this

anal

ysis

inits

capa

city

asad

viso

rin

acco

rdan

cew

ithth

esc

ope

and

subj

ect

toth

ete

rms

asso

ciat

edw

ithSt

ratc

orp’

sle

tter

ofof

fer.

Read

ers

shou

ldno

teth

atth

isre

port

may

incl

ude

impl

icit

proj

ectio

nsab

out

the

futu

re w

hich

by

thei

r nat

ure

are

unce

rtain

and

can

not b

e re

lied

upon

, as

they

are

depe

nden

ton

pote

ntia

lev

ents

whi

chha

veno

tye

toc

curr

ed.

For

thes

ere

ason

san

dot

hers

,pr

oper

tyde

velo

pmen

tis

inhe

rent

lyris

kyan

d fre

quen

tly th

ings

do

not t

urn

out a

s pl

anne

d.

Dis

clai

mer

of L

iabi

lity:

Opt

imis

ticP

age

5 of

5

Situ

atio

n 5

(Fin

anci

al M

odel

- 50

we

5wd)

McA

dam

Par

k - S

ituat

ion

5 (7

Ope

ratin

g D

ays)

Scen

ario

1 -

Con

serv

ativ

eYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Leve

l of C

apac

ity45

%50

%55

%60

%65

%70

%75

%80

%85

%90

%To

tal O

pera

ting

Inco

me

$486

,12 7

$534

,758

$583

,389

$632

,020

$680

,651

$729

,281

$777

,912

$826

,543

$875

,174

$923

,805

Tota

l Ope

ratin

g Ex

pens

es$3

93,6

83$4

06,1

33$4

19,1

23$4

32,6

78$4

46,8

25$4

61,5

91$4

77,0

04$4

93,0

96$5

09,8

98$5

27,4

44Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

$92,

444

$128

,625

$164

,266

$199

,341

$233

,826

$267

,691

$300

,908

$333

,44 7

$365

,275

$396

,361

Scen

ario

1 -

Con

serv

ativ

eTo

tal O

pera

ting

Inco

me

(Yr 1

-10)

Tota

l Ope

ratin

g Ex

pens

es (Y

r 1-1

0)Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

(Yr 1

-10)

Scen

ario

2 -

Real

istic

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0Le

vel o

f Cap

acity

60%

65%

65%

70%

75%

80%

85%

90%

95%

100%

Tota

l Ope

ratin

g In

com

e$6

73,2

15$7

21,8

46$7

21,8

46$7

70,4

76$8

19,1

0 7$8

67,7

38$9

16,3

69$9

65,0

00$1

,013

,630

$1,0

62,2

61To

tal O

pera

ting

Expe

nses

$394

,133

$406

,583

$419

,423

$432

,978

$447

,125

$461

,891

$477

,304

$493

,396

$510

,198

$527

,744

Pred

icte

d O

pera

ting

Prof

it/Lo

ss$2

79,0

81$3

15,2

62$3

02,4

22$3

37,4

98$3

71,9

82$4

05,8

4 7$4

39,0

64$4

71,6

03$5

03,4

32$5

34,5

17

Scen

ario

2 -

Real

istic

Tota

l Ope

ratin

g In

com

e (Y

r 1-1

0)To

tal O

pera

ting

Expe

nses

(Yr 1

-10)

Pred

icte

d O

pera

ting

Prof

it/Lo

ss (Y

r 1-1

0)

Scen

ario

3 -

Opt

imis

ticYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Leve

l of C

apac

ity70

%75

%80

%85

%90

%95

%10

0%10

5%11

0%11

5%To

tal O

pera

ting

Inco

me

$812

,031

$860

,662

$909

,293

$957

,924

$1,0

06,5

55$1

,055

,185

$1,1

03,8

16$1

,152

,44 7

$1,2

01,0

78$1

,249

,709

Tota

l Ope

ratin

g Ex

pens

es$3

94,4

33$4

06,8

83$4

19,8

73$4

33,4

28$4

47,5

75$4

62,3

41$4

77,7

54$4

93,8

46$5

10,6

48$5

28,1

94Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

$417

,598

$453

,779

$489

,420

$524

,495

$558

,980

$592

,845

$626

,062

$658

,601

$690

,429

$721

,515

Scen

ario

3 -

Opt

imis

ticTo

tal O

pera

ting

Inco

me

(Yr 1

-10)

Tota

l Ope

ratin

g Ex

pens

es (Y

r 1-1

0)Pr

edic

ted

Ope

ratin

g Pr

ofit/

Loss

(Yr 1

-10)

Col

lect

ive

Sum

mar

y - 3

day

sYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Scen

ario

1 -

Con

serv

ativ

e U

sage

$92,

444

$128

,625

$164

,266

$199

,341

$233

,826

$267

,691

$300

,908

$333

,44 7

$365

,275

$396

,361

Scen

ario

2 -

Real

istic

Usa

ge$2

79,0

81$3

15,2

62$3

02,4

22$3

37,4

98$3

71,9

82$4

05,8

4 7$4

39,0

64$4

71,6

03$5

03,4

32$5

34,5

17Sc

enar

io 3

- O

ptim

istic

Usa

ge$4

17,5

98$4

53,7

79$4

89,4

20$5

24,4

95$5

58,9

80$5

92,8

45$6

26,0

62$6

58,6

01$6

90,4

29$7

21,5

15

Tota

l - Y

ear

1 to

10

$7,0

49,6

60$4

,567

,477

$2,4

82,1

83

Tota

l - Y

ear

1 to

10

$8,5

31,4

88$4

,570

,777

$3,9

60,7

10

Tota

l - Y

ear

1 to

10

$10,

308,

700

$4,5

74,9

77$5

,733

,723

Sum

mar

y S

heet

Pag

e 6

of 6



APPENDIX 4

Mc ADAM PARK MOTOR SPORTS COMPLEX

DIRECTIONS PAPER (August 2007)

Prepared by Damian Gorman

Sport & Leisure Solutions

business case mcadam park regional motorsports

Documents