VIDEO: Demolition of former Macy's at Charleston Town Center completed ahead of schedule
CHARLESTON, WV (WOWK) — The Sports Facilities Advisory Committee concluded in its draft Capital Sports Center Feasibility Overview that the center could fund its operations and generate an economic impact of approximately $21 million after five years.
The brief outlines the most suitable features for the space: two basketball courts (four volleyball courts, six pickleball courts), two pickleball courts, family entertainment center, food and beverage services, support and administrative space, fitness center, group exercise rooms, walking track, six basketball courts (12 volleyball courts), and spectator areas.
According to the summary, the facility will generate revenue from 15 sources: basketball and volleyball rental tournaments, court rental events and rentals, FEC/adventure, fitness and training, membership fitness area, pickleball rental tournaments and pickleball, youth programs, facility fees, food and beverage, hotel discounts, retail, sponsorship and advertising revenue. The summary also states that the indoor aquatics facility will “exceed benchmarks” in financial performance and economic impact.
| First grade | Second Year | Third year | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Total Revenue | $2,447,983 | $3,361,698 | $3,955,369 | $4,300,287 | $4,662,135 |
| Total cost of sales | $1,081,938 | $1,318,909 | $1,488,306 | $1,602,571 | $1,712,815 |
| gross profit | 56% | 61% | 62% | 63% | 63% |
According to the summary, the economic impact is expected to grow from just under $7.5 million in the first year to nearly $21 million in the fifth year. See below for a breakdown of each year.
| First grade | Second Year | Third year | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Total economic benefit | $7,487,806 | $12,930,782 | $16,359,004 | $18,894,819 | $20,841,850 |
It is expected to have an operating subsidy of $736,283 in year one, and by year five it will generate gross profit, known as EBITDA (earnings before interest, taxes, depreciation and amortization), minus operating expenses, of about $511,000.
| First grade | Second Year | Third year | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Total Operating Costs | $2,102,328 | $2,119,878 | $2,278,431 | $2,357,587 | $2,438,502 |
| EBITDA | ($736,283) | ($77,089) | $188,632 | $340,129 | $510,818 |
| % of Revenue | -30% | -2% | Five% | 8% | 11% |
If you would like to comment on the Draft Summary, please email info@kanawha.us by June 30, 2024. To read the entire Draft Summary, click here.
The Capital Sports Center is set to be built in downtown Charleston, and to make room for it, crews were demolishing the old Macy's next door to Charleston Town Center.
As demolition began, city and state officials celebrated economic progress.
The project has been announced for 2022.
