FORT SMITH --The hiring of an aquatic center operator and approving its budget and fee structure will top the agendas of the Sebastian County Quorum Court and the Fort Smith Board of Directors Tuesday.
American Resort Management is recommending that the aquatic center, which is expected to be named Parrot Island Waterpark, charge $15 admission for visitors over 4 feet tall but that there would be several opportunities to reduce the fee through sponsorships, nonpeak day rates, coupons and season passes.
City Director Kevin Settle said people have told him they liked the $199 season pass that would be offered for a family of four.
"For a family of four to have an entire summer opportunity for that kind of number, it's a great deal," American Resort Management senior vice president Richard Coleman told city directors and quorum court members during a joint meeting Thursday evening.
The Erie, Pa., company is being considered to become the operator of the aquatic center, the budget of which is designed to support itself without subsidies from the city or county.
County Judge David Hudson pointed out that the county and the city had tight budgets and neither could afford to fund the aquatic center operations.
"The fact that this enterprise can be set up to be self-sustaining, I say hallelujah," Hudson said.
Coleman said according to the budget the company is proposing, if the center brings in 120,000 visitors next year from Memorial Day weekend to Labor Day, or an average of about 1,300 per day, the rate structure based on the $15 admission fee would gross $1,653,061 in revenue.
Expenses, all of which would be the responsibility of American Resort Management to bear, are expected to total $1,343,648, leaving a net income of $309,413.
Of that net income, according to the budget, $174,047 would be kept in reserve for amenity upgrades and start-up cash for the next year, leaving a final income of $135,366.
In addition to the $15 fee, the rate structure proposes charging $10 for visitors under 4 feet tall. Coleman said the company is using height rather than age for basing the rates because industry standards say the height governs the slides and other attractions a person could use. A person 4 feet tall would have no restrictions, he said.
The rate structure includes $12 for group consignment over 4 feet tall and $7 for group consignment under 4 feet. The group consignment is for businesses such as hotels that would include tickets to the aquatic center in group tour packages, Coleman said.
Online ticket purchases would be $13.
A season pass cost of $59 would be an introductory rate next year to build support for the center, Coleman said. That rate could increase after the first year.
The company built in several fee breaks for visitors, Coleman said, in response to concerns the fee was too pricey for some income levels.
There is a $5 admission for nonpeak days at the beginning and end of the season, coupons for county residents that could cut the admission fee up to 25 percent, discounts as low as $7 per person for social organizations and corporate groups, and corporate sponsorships to provide free-admission events for underprivileged children and families and youth organizations such as boys and girls clubs.
"We feel good about this rate structure," Coleman said.
If American Resort Management is hired as the center operator, its compensation would be 5 percent of the gross revenue. It also would be eligible for a bonus for surpassing a season's revenue projection.
The county and city awarded aquatic center construction contracts in April totaling $9.8 million, less than the $11.3 million they raised to pay for the facility.
Parrot Island Waterpark will include a wave pool, a 500-foot-long lazy river, two 40-foot-tall water slides, two 32-foot-tall water slides, a 3,600-square-foot toddler pool and a 4,200-square-foot activity pool, along with a bathhouse, concession stand, activity pavilion and landscaping.
NW News on 12/13/2014