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Evaluation of the Demand for and Financial Feasibility of a Community Center in Downtown Romeoville
Client: The Village of Romeville, Illinois
dashed line separator Gruen Gruen + Associates (GG+A) was engaged to conduct a review of the potential market demand for and financial feasibility of the development of a proposed 57,238-square-foot indoor recreational facility in Romeoville.

To accomplish the review, GG+A reviewed the population make-up including age and income characteristics of the household base of Romeoville. GG+A spoke with representatives of existing public and private recreational facilities including the Parks Director for the Village of Romeoville as well as representatives of Darien Sportsplex, McCook Athletic & Exposition Center, Orland Park Sportsplex, and the Libertyville Sports Complex. We also reviewed available budget information about these facilities and other industry market data. The interviews were directed to obtaining information and insight on the: (a) geographic market areas served by the facilities; (b) the type of patrons and users attracted to the facilities; (c) the physical and programmatic make-up of the facilities; (d) competing locations and projects for visitors and users; (e) fee and rate or revenue information; (f) construction cost and operating costs and staffing information; and (g) insight on desired changes they would make to existing facilities and recommendations about new facilities.

The research was synthesized with cost estimates and debt financing parameters obtained from Village of Romeoville to create a financial model to use to preliminarily estimate the potential cash flow, debt service requirements, and revenue expenses, and net operating income potentially associated with the construction and operation of the proposed recreational facility. The cash flow forecast provided an estimate of the cash shortfall associated with the development and operation of the proposed recreational facility, or in other words, the amount of subsidy that would need to be provided to bridge the identified feasibility gap. A report was prepared on the results of the initial market and financial feasibility review.

The report included recommendations about the programming of the facility. GG+A also provided counsel about structuring public-private development and management agreements and risk mitigation procedures to protect the interests of the Village.




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