north sydney olympic pool · page 2 north sydney olympic pool – catchment analysis and financial...
TRANSCRIPT
Prepared by SGL Consulting Group
www.sglgroup.net
North Sydney Olympic Pool
Catchment Analysis and Financial Modelling
SGL CONSULTING GROUP
SGL also has offices in
• Auckland • Christchurch • Wellington •
North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
1 INTRODUCTION ............................................................................................................................ 1
1.1 Background ........................................................................................................................... 1
1.2 Aim .......................................................................................................................................... 3
1.3 Methodology ......................................................................................................................... 3
1.4 Community Consultation ...................................................................................................... 4
2 CURRENT MARKET ........................................................................................................................ 6
2.1 NSOP Management .............................................................................................................. 6 2.1.1 Staffing ...................................................................................................................................... 6 2.1.2 Contracted Services .............................................................................................................. 6 2.1.3 Financial Performance .......................................................................................................... 7 2.1.4 Attendances` .......................................................................................................................... 7 2.1.5 Pricing ........................................................................................................................................ 8 2.1.6 Car Parking .............................................................................................................................. 8
2.2 Profile of Customers .............................................................................................................. 9 2.2.1 Community Survey.................................................................................................................. 9 2.2.2 User Survey ............................................................................................................................. 10 2.2.3 Summary ................................................................................................................................. 11
2.3 Competitor Analysis ............................................................................................................ 11 2.3.1 North Shore Aquatic Facilities ............................................................................................ 11 2.3.2 South of Harbour Aquatic Facilities ................................................................................... 11 2.3.3 Health and Fitness ................................................................................................................. 12 2.3.4 Car Parking ............................................................................................................................ 17 2.3.5 Summary ................................................................................................................................. 17
2.4 Participation Data ............................................................................................................... 18 2.4.1 Swimming and Diving .......................................................................................................... 18 2.4.2 Health and Fitness ................................................................................................................. 19
2.5 Aquatic Markets .................................................................................................................. 19
2.6 Health And Fitness Market .................................................................................................. 20
2.7 Potential Demand ............................................................................................................... 20
3 IMPACT OF OPTIONS ................................................................................................................. 22
3.1 Summary of Development Options ................................................................................... 22
3.2 Potential Impact on Markets .............................................................................................. 23 3.2.1 Basic Upgrade Scheme ....................................................................................................... 23 3.2.2 Major Upgrade Scheme ...................................................................................................... 24 3.2.3 Generational Upgrade Scheme ........................................................................................ 25 3.2.4 Generational Upgrade Scheme with Diving and Hydrotherapy ................................ 27 3.2.5 Generational Upgrade Scheme with 60m Pool ............................................................. 27 3.2.6 Redevelopment of all elements ........................................................................................ 27
4 FINANCIAL MODEL .................................................................................................................... 31
4.1 Assumptions ......................................................................................................................... 31 4.1.1 Basic Upgrade Scheme ....................................................................................................... 31 4.1.2 Major Upgrade Scheme ...................................................................................................... 31 4.1.3 Generational Upgrade Scheme ........................................................................................ 32
TABLE OF CONTENTS
North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
4.1.4 Generational Upgrade Scheme with Diving and Hydrotherapy ................................ 33 4.1.5 Generational Upgrade Scheme with 60m Pool ............................................................. 33 4.1.6 Redevelopment of all elements ........................................................................................ 33
4.2 Financial Projections ........................................................................................................... 34 4.2.1 Scenario Analysis................................................................................................................... 36
4.3 Whole of Life Costs .............................................................................................................. 36
APPENDIX A: OPTIONS TABLE
Page 1 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
This chapter introduces the report by providing background information, the aims and
objectives and the methodology.
1.1 Background
The North Sydney 50m Olympic Pool (NSOP) was constructed in 1935 and since its
construction has undergone numerous minor upgrades and refurbishments. This iconic Pool
complex and its associated facilities is supported by aging infrastructure which is in need of a
significant upgrade to preserve the existing heritage fabric for the long term as well as to
meet modern user requirements.
The North Sydney Olympic Pool was built on the site that had been set aside for workshops
and steel work fabrication for the construction of the Sydney Harbour Bridge. Once the
bridge was completed in 1932, the site was vacated and returned to government ownership.
North Sydney Council acquired the site in 1934-35 and engaged the Architects Rudder and
Grout to undertake the design of the pool. The pool was opened on the 4April 1936 - one
year after the adjoining Luna Park site was opened.
Between 1998 and 2001 refurbishment and upgrading of the pool included:
An indoor 25m recreation pool, change rooms and outdoor area located to the north
of the 50m pool.
Gymnasium and restaurant along the western alignment of the existing enclosure
Main entrance shop, reception, foyer, and cafe along the eastern alignment of the
existing pool enclosure.
Council has engaged Brewster Hjorth Architects to prepare Master Plan options for the
upgrade of North Sydney Olympic Pool and its associated facilities.
The end goal of this project is to provide the people of North Sydney and the general public
with a visionary modern aquatic recreation facility that balances the contemporary needs of
current and future users while exploring all opportunities that the Pool complex‟s unique
harbourside setting has to offer.
To date, five concept options have been prepared by Brewster Hjorth Architects:
Option 1: Basic Upgrade Scheme
New 50m pool
New leisure pool
Upgrade existing change facilities
Part refurbish existing grandstand – current capacity 1700
Indicative Cost Estimate: $16.0 Million
Option 2: Major Upgrade Scheme
New 50m pool
New leisure pool
1 INTRODUCTION
Page 2 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Upgrade existing 25m pool to 8 wide lanes
New splash pad and water play area
Upgrade existing change facilities
New gym in the grandstand above change facilities
Full refurbish existing grandstand and shade structure maintain current capacity 1,700
Indicative Cost Estimate: $28million.
Option 3: Generational Upgrade Scheme
New 50m pool
New external leisure pool + Sunshade
New external waterslide
New external splash pad and water play area
Upgrade existing indoor 25m pool to full 8 wide lanes
New covered entry
New change rooms including family change facilities
New large gym and wellness centre under the 50m pool (1,650m²)
New events space in the grandstand above change facilities (610m²)
New grandstand and shade structure for 800 people
New concourse level Cafe / Kiosk
New “Ripples” Cafe in old gym area under Aqua dining
Indicative Cost Estimate: $52million.
Option 4: Generational upgrade scheme with diving tower
New 51.5m pool with two booms
New diving tower (Not to international Standard) – No 7.5m or 10m platforms
Reduced external leisure pool + Sunshade
Reduced external waterslide
No new splash pad and water play area
New covered entry
Upgrade existing indoor 25m pool to 8 wide lanes
Hydrotherapy pool
New change rooms including family change facilities
New large gym and wellness centre under the 51.5m pool (1650m²)
New events space in the grandstand above change facilities (610m²)
New grandstand and shade structure for 800 people
New concourse level Cafe / Kiosk
New “Ripples” Cafe in old gym area under Aqua dining
Indicative Cost Estimate: $49million.
Option 5: Generational upgrade scheme with diving and 66m pool
New 66m pool with two booms
New diving tower (Not to international Standard) – No 7.5m or 10m platforms
No new external leisure pool
No new external waterslide
No new external splash pad and water play area
New covered entry
Upgrade existing indoor 25m pool to 8 wide lanes
Hydrotherapy pool
New change rooms including family change facilities
New large gym and wellness centre under the 50m pool (1650m²)
New events space in the grandstand above change facilities (610m²)
New grandstand and shade structure for 800 people
Page 3 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
New concourse level Cafe / Kiosk
New “Ripples” Cafe in old gym area under Aqua dining
Indicative Cost Estimate: $49million.
Option 6: Generational upgrade scheme with aquatic facilities redeveloped
New 66m pool with 2 booms
Full international diving facility
New indoor leisure pool
New indoor splash pad and water play area
Reduced new indoor waterslide
New 6 lane indoor 25m pool with LTS platforms
New upper and lower change rooms including family change facilities
New large gym and wellness centre under the 50m pool (1650m²)
New hydrotherapy pool under the 50m pool
New events space in the grandstand above change facilities (745m²)
New grandstand + shade structure for 750 people
Landscaped roof – New harbour Foreshore Park
Underground parking for 125 cars
New concourse level Cafe / Kiosk
New “Ripples” Cafe in old gym area under Aqua dining
Indicative Cost Estimate: $72million.
1.2 Aim
The aim of the study is to prepare financial models for each of the Master Plan options
currently being prepared for North Sydney Council by Brewster Hjorth Architects. The
financial models are to be supported by an accompanying Catchment and Market Analysis
Report which is to inform each different scenario in the modelling.
The key objective and deliverables is to prepare a well informed Financial Model for each of
the options currently being prepared and modelling the income and expenditure of each
design to assist Council in its decision making process on what option to proceed with.
The financial models are to be supported and informed by a detailed Catchment and
Market Analysis Report on aquatic services and facilities that is based on current market
research, trends, user requirements and possible staging scenarios for the project.
The financial model for each option will forecast the projected operating revenue and
expenditure for a period of 2, 5 and 10, 20 years after opening to assist Council in
determining a payback period if the project is to be funded through commercial borrowings.
1.3 Methodology
The catchment analysis and financial modelling was undertaken in three phases involving
the following tasks:
Phase 1: Project Inception
Project Inception Meeting
Councillor Briefing
Document Review
Phase 2: Data Collection
Operational Audit
Page 4 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Competitor Analysis
Key Stakeholder Interviews
Population Analysis
Participation Analysis
Leisure Facility Trends
Benchmarking
Demand Assessment
Phase 3: Catchment Analysis and Financial Model
Additional Research
Draft Report
Presentation
Final Report
1.4 Community Consultation
To date, a first round of Community Consultation has been undertaken to inform the
preparation of Redevelopment Options for the pool. The consultation was undertaken by
Council‟s Community Engagement Consultants Smart Connections Consultancy from 16
September through to November 30, 2014.
To maximise feedback from users, residents, workers and the broader community, Council
and Smart Connections Consultancy identified a wide range of stakeholders and a variety of
communication channels to encourage feedback. These are outlined in the table below.
Consultation Methodologies
Methodology Description
Council‟s Website Anyone who was interested was able to complete an online survey.
The website provided a focal point for information sharing from
Council to the community.
User Survey All users of the Pool complex were invited to complete a user survey.
This was available in hard copy at the Pool and online at Council‟s
website.
Stakeholder
Meetings
Groups identified as having a high interest in the complex had the
chance to meet Smart Connection Consultancy provide feedback
and also encourage their constituents to complete the
questionnaire.
User Focus Group A selected number of Pool users were invited to join a focus group
facilitated by the consultant.
Letters A letter was sent to all stakeholder groups including past
users/members providing information and directing them to Council‟s
online survey
Community Group
Meetings(including
Precinct
Committees)
Interested Precinct Committees and Community Groups had were
informed and given the opportunity to meet the consultant.
General
Communications
Council used its regular communication channels including posters,
e-newsletters, social media, newspaper advertisement etc. to let the
community know about the survey.
School Survey Specific surveys for schools was put online
A specific survey for schools was put online at
https://www.surveymonkey.com/s/NSOP2014sch and was sent by mail to all private and
public schools in the LGA on 16 September (hard copy with reply paid envelope). On the 17
September 2014, Council also sent via email the school survey to all schools outside the LGA
who used the pool for school carnivals in 2014.
Page 5 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
All P&C's (and equivalent) in the LGA were emailed on 17 September 2014 requesting them
to complete the community survey and forward on to others who may be interested in
having a say too.
Summary of the number of survey results is in Table 1.1. The full survey and community
consultation report from Smart Connections is available from Council on request.
Table 1.1: Survey Results 16 September to November 30, 2014.
Survey Group Number of Responses
Community Survey 1,035
School Survey 5
Pool User survey 105
Total 1,145
Council has been briefed on the project on the following dates:
1 Thursday November 13, 2014. Council briefing on the consultation that was currently
underway and the presentation of the project plan, program and three preliminary
options that had been developed to date.
2 Monday December 15, 2014. Council Workshop and update on community consultation
that was completed on November 30 and the presentation of three costed options that
had been prepared and developed from the last Council briefing and also now informed
by the outcomes of the consultation and stakeholder engagement.
3 Monday March 2, 2015. Council briefing on the further development of the options
(Option 5) based on the outcomes of the December 2014 workshop and the draft
financial modelling prepared by SGL consultants on all of the options developed to date.
Note: Council‟s Sport and Recreation Reference Group was also informed on the Community
Engagement Strategy for the North Sydney Olympic Pool Master Plan on September 22, 2014
(Sport and Recreation Reference group Report SR05- 22 September 2014).
Page 6 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
This chapter reviews the current market and environment in which the NSOP operates.
2.1 NSOP Management
NSOIP is directly managed by Council, within the Open Space and Environmental Services
Directorate.
2.1.1 Staffing
NSOP Manager reports to the Director and is supported by:
An Assistant Manager
3 x Operations Coordinators
Reception and Aquatic Centre Attendants (permanent and casual)
Lifeguards (permanent and casual)
Health and Fitness Coordinator
Health and Fitness Supervisor
Casual Gym Fitness Instructors
During normal operating hours, the centre is staffed by a coordinator, two lifeguards
supervising the indoor and outdoor pools, a receptionist and a health and fitness instructor.
2.1.2 Contracted Services
Council staff are responsible for supervising general public use of the pools, and the health
and fitness centre. In addition to dry fitness activities, Council staff also offer aqua aerobics
classes.
Two businesses within the NSOP are contracted:
Swimming Coaching
Council has granted a licence to conduct swimming coaching (learn to swim classes) and
tuition (squad classes) at the Pool for 2015 with the option, at Council‟s discretion, for a
further two years.
The license provides use of three lanes of the 50 metre pool and two lanes in the 25 metre
pool. Additional pool space and time can be used on payment of the normal lane hire fees.
Under the terms of the license, Council receives a pool entry fee for each participant in the
swim school.
Restaurant and Café
Council has a contracted management of the restaurant at the western side and the
kiosk/café at the north western corner of the NSOP. These contracts are on a commercial
2 CURRENT MARKET
Page 7 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
basis, returning over $500,000 in rent per annum.
2.1.3 Financial Performance
Table 2.1 summarises the financial performance of the NSOP. It does not include
depreciation, nor overhead costs incurred by Council (eg payroll and, management
supervision), and includes the rental from the restaurant and café/kiosk. Key points to note
are that:
Revenue is almost $3m, and whilst declined slightly in 2014, compared with 2013, it was
substantially higher than 2012.
Expenditure has increased from $2.5m to $2.8m over the three financial years.
Operating profit has declined between 2012 and 2014, to $113,619.
Table 2.1: Financial Performance 2012 - 2014
Operating Budget 2012 2013 2014
Income
Swim Entry $1,453,262 $1,592,664 $1,589,350
H&F Income $581,690 $575,316 $597,425
Merchandise $125,711 $144,587 $135,322
Leases $464,203 $526,261 $500,868
Car Parking $140,338 $151,650 $108,379
Total Income $2,765,204 $2,990,478 $2,931,344
Expenditure
Total Staffing Costs $1,431,783 $1,520,744 $1,592,627
Total General Costs $1,094,647 $1,217,445 $1,225,098
Total Expenditure $2,526,430 $2,738,189 $2,817,725
Profit $238,774 $252,289 $113,619
2.1.4 Attendances`
Table 2.2 summarised attendances in 2013/14. Total attendances are 353,535, which includes
196,279 adult swims and 53,748 child swims. The balance of attendances are primarily to the
health and fitness centre and spectators.
Table 2.2: Total Attendances in 2013/14
General Admission
Adults (Park & Swim) 12,011
Adults 68,580
Child 19,415
Benefit 4,084
Pensioner (FOC) 9,539
Senior 3,781
Child D/5 (FOC) 16,548
Spectator 29,468
Student 3,442
Sauna/Spa 7,592
20 Visit (Multi-Passes) 90,684
Membership/Subscriptions 55,888
Aerobics (CAS) 644
Page 8 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
General Admission
Aqua (CAS) 7,832
Crèche 867
Sub Total 330,375
EVENTS:
New Year Eve AD 1,135
CH 1,606
Fleet Review AD 653
CH 355
Sub Total 3,749
On Account
Badger Programs (Schools) 9,500
Luna Park (Spin & Swim) 6,324
Vibe Hotel\ Harbour View Hotels 2,370
Miscellaneous 1,217
Sub Total 19,411
TOTAL 353,535
2.1.5 Pricing
Core prices charged by NSOP are:
Swimming Pools
Adult $7.30 Child (5yrs+ or attending primary/secondary school) $3.60 Full-time Tertiary student $6.00 North Sydney Pension card holder Free Senior card holder $6.00 Health Care and Non North Sydney Pension card holder $3.60 Sauna/Spa/Swim $11.70 Spectator/public $2.40 Shower $0.50
Lane 9 Gymnasium
(includes use of pools/spa/sauna)
Single visit $19
Bulk purchase (10 visits) $150.00
Personal training half-hour session $45.00
Aqua Aerobics and Aerobics program/class
(includes use of pools)
Single visit $17.50
Bulk Purchase (10 visit) $139.00
2.1.6 Car Parking
Customers using the NSOP can claim up to two hours free parking. Parking in Alfred St South is
free until 10am. After 10am, customers using the NSOP, including Lane 9 Gymnasium
can claim up to two hours free parking per day. Six Park & Swim meters, covering 62 parking
spaces are located in this area.
Additional car parking is available at the Luna Park car park which has 389 spaces. Entry to
Page 9 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
the car park is via Paul Street, just off Alfred St South, Milsons Point. Cost is $7 per hour, with a
reduced rate after 2 hours.
2.2 Profile of Customers
Council has conducted market research into its existing customer base. Two questionnaires
were targeted to North Sydney residents and users of the NSOP. Details of the sampling and
survey methodology are not available (to be included). Key findings from the two surveys are
summarised.
2.2.1 Community Survey
The sample included 1,035 respondents. Key findings relating to demand are:
Figure 2.1 shows the postcode of users of NSOP. It clearly indicates that 78% of users live
within a 6 – 7 km radius of the pool, and 26% live in the immediate area surrounding the
NSOP.
Figure 2.1: Postcode of NSOP Users (Community Survey)
97% of respondents had used/visited the North Sydney Olympic Pool, complex in the
past 12 months
Of the 3% (N= 34) who had not visited in the last 12 months, 79% had used the NSOP. In
other words less than 1% of respondents had never used the NSOP.
The main reason respondents stopped using NSOP was either cost of availability of
parking.
The most commonly used components at NSOP were the 50m pool (73%),
Page 10 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
café/restaurant (external) (72%) and 25m pool (66%). 29% and 31% of users of the 50m
pool and gym, respectively used the facilities at least 3 times per week.
The main purpose for using the NSOP was health and fitness (73% of users) with 75%
participating in lap swimming, recreation/leisure (58% of users )with 56% participating in
recreational swimming and sport (39% of users).
Almost half of user visit the NSOP by car (48%), other modes of travel were walking
(13%), bus (13%), train (10%), ferry (6%) and bike (6%).
57% of user were female and 43% males.
2.2.2 User Survey
The sample included 105 respondents. Key findings relating to demand are:
Facilities used and the proportion of users who participate at least 3 times per week
are:
Component Users More than 3x per week
50m pool 84% 67%
25m pool 49% 37%
Kiosk (internal 49% 25%
Gym 46% 52%
Almost half of user visit the NSOP by car (46%), other modes of travel were walking
(31%), bike (12%), bus (6%) and train (4%). No respondent user travelled by ferry.
Figure 2.2 shows the postcode of users of NSOP. It clearly indicates that 78% of users live
within a 6 – 7 km radius of the pool, and 44% live in the immediate area surrounding the
NSOP.
Figure 2.2: Postcode of NSOP Users (Users Survey)
Page 11 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
2.2.3 Summary
The two surveys indicate that:
4 The most popular component is the 50m pool.
5 NSOP has a high proportion of users who participate at least three times per week.
6 The primary market is a catchment of within 6km.
7 Availability of car parking close to the pool is important given that almost half of user
visit by car.
2.3 Competitor Analysis
Six aquatic centre are located within the primary catchment area. Three are located on the
north shore and three on the south side of the harbour.
2.3.1 North Shore Aquatic Facilities
Lane Cove Aquatic Centre includes:
Outdoor 50m pool
Indoor 25m pool
Indoor Leisure Pool
Indoor program LTS Pool
Sauna, Steam, Spa
Large Gym
Willoughby Leisure Centre includes:
Indoor 25m pool
Small indoor Leisure Pool
Sauna, Spa
Small Gym
Mosman Swim Centre includes:
Indoor 25m pool
Nearby Gym
2.3.2 South of Harbour Aquatic Facilities
Leichhardt Park Aquatic Centre includes:
Olympic pool
2 children‟s pools
Indoor Program pool
Hydrotherapy Pool
Dive pool
1100m² Health Club
Three group exercise rooms
Page 12 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Cook and Phillip Park Aquatic and Fitness Centre includes:
50m indoor pool
Indoor leisure pool with „beach style‟ entry
Hydrotherapy pool with full ramp access
Full-size gym with separate cardio and weights studios
Spin room and group fitness room
Swim fees are adult: $7, concession: $5.20 and family: $18.50
Ian Thorpe Aquatic Centre
50-metre indoor pool
Indoor leisure pool
Warm water program pool
Fitness centre
Sauna and steam room
Café with indoor and outdoor seating
Swim fees are adult: $7, concession: $5.20 and family: $18.50
2.3.3 Health and Fitness
Table 2.4 summarises significant information regarding health and fitness centres in the
primary catchment area for NSOP. The location of these facilities are shown on Figure 2.3.
Twenty three health and fitness centres have been identified, including eight 24/7 facilities.
Clearly there is strong competition in the North Sydney health and fitness market. Information
on the number of members is not available.
Figure 2.3: Location of Health and Fitness Centres
Page 13 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Table 2.4: Health and Fitness Centres in the NSOP Primary Catchment Area
Name 24/7 Franchise Facilities detail Target market Other details
Fitness First
1 Elizabeth
Plaza
North Sydney
No Y Cardio Theatre
Cycle Studio
Free Weights
Loaded Weights
Group classes and PT
Gym Floor
Pilates
Yoga
Monsoon Shower
Aromatherapy
Relaxation Zone
High income
earners
fitness
conscious
Option of
contract or
prepaid
memberships
Upgrades
planned for to
include new Hot
Yoga Studio
Fitness First
100 Walker St
North Sydney
No Yes Cycle Studio
Free Weights
Group classes and PT
Gym Floor
Loaded Weights
Freestyle Group
Training
Pilates
Massage
Nutrionist
Yoga
High income
earners/fitnes
s conscious
Fitness First
55 Christie St
St Leonards
No Yes Pool – swim school
and Aqua
Cycle Studio
Group classes and PT
sessions
Gym Floor
Loaded weights
Pilates
Physio
Massage
Yoga
Playzone
Crèche
High income
earners/fitnes
s conscious
Upgrades
planned for St
Leonards include
sprint track, sled
track for strength
training, Iron
Edge Matrix
Cage,
technology bar
for Members‟
Lounge
Bounce
2/37 Ridge St
North Sydney
No No Two separate rooms
for weights and
cardio
PT
Outdoor bootcamp
and boxing classes in
various locations
around North Sydney,
Waverton, Kirribilli
4 tennis courts - 2
available for
members to use at
North Sydney Boys
High School
Local
professionals
Limited
memberships
Short term
membership
plans
Free tennis court
hire
Iron Grip Gym
1/104 Mount
Street, North
Sydney
No No Classes – Zumba,
Circuit, Boxercise,
Yoga, Pilates, Latin
Dance
Weights – free, plate
N/A „No Frills‟ gym
Page 14 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Name 24/7 Franchise Facilities detail Target market Other details
loaded
Cardio equipment
Strength equipment
Unity Gym
20 Berry St
North Sydney
No No Gym – free weights,
machines and
equipment for
strength and
resistance training
Calisthenics
Indoor boot camp
PT
Busy
Professionals
Limited
memberships for
better service
F45 Training
Lvl 2/129-139
Military Rd
Neutral Bay
No Yes Specialist circuit and
cardio classes
Nutrition
High
income/athle
tes
F45 is a team-
based high
intensity interval
training style.
Fast growing
international
exercise trend
F45 Training
13-19
Willoughby Rd
Crows Nest
No Yes Specialist circuit and
cardio classes
Nutrition
High
income/athle
tes
F45 is a team-
based high
intensity interval
training style.
Fast growing
international
exercise trend
Aspire
Strength and
Conditioning
19 Chuter St
McMahons
Point
North Sydney
No No Small group and
personal training
Training programs for
athletes at all levels
Free weights, racks,
rowers, plyometric
boxes
Cardio equipment
Classes
Open Gym
N/A Emergency
response
personnel,
students and
seniors receive
10% discount on
coaching.
Private Health
Clubs
9-17 Young St
Neutral Bay
No Yes Yoga
Spin
Pump and Circuit
Running, Boxercise,
Power Core and
Zumba Classes
PT
Massage
Creche
Sauna and salt room
Red Light Therapy
Bed
Cybex Training
Equipment
Bootcamp
Pilates
N/A Membership
capped for
better service
EnVie Fitness
Lvl 1, 184-186
Military Rd
Neutral Bay
No Yes Nutrition
Creche
Group and PT
Classes
Women only
Page 15 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Name 24/7 Franchise Facilities detail Target market Other details
Indoor and Outdoor
sessions
Weight machines,
cardio equipment
North’s Fitness
North Sydney
Leagues Club
12 Abbott St
Cammeray
No No PT
Group fitness classes
Rooftop Warrior
Life Fitness training
equipment
Pool – Aqua classes
Cardiac Rehab
Must be a
member of
North Sydney
Leagues Club
Part of group –
Norths Club,
Seagulls Club,
Tweed Heads
Seagulls RLFC; all
clubs have
affiliated
gyms/fitness
centres.
Crossfit Active
Garage 5/94A
Bay Rd
Waverton
No Yes Studio classes
Competitive athlete
development
Olympic weightlifting
Kettlebell training
High level
fitness/athlet
es
Specialised
CrossFit program
CrossFit „Games‟
competition
days held in
various gyms
around Sydney
Ninth Wave
Fitness
349 Pacific
Hwy
North Sydney
No No Group and PT
sessions
Nutrition
Infra Red Sauna
Boxing, Strength and
Conditioning, Cardio
classes
Free weights,
machines, cardio
equipment
MyZone Biometric
fitness tracking and
monitoring
N/A Elite level fitness
professionals
North Sydney
Tennis and
Gym
37 Ridge St
North Sydney
No No On top of Council
car park
Separate weights
and cardio rooms
Outdoor group
training in various
locations around LGA
- Boxing, Boot Camp,
Circuit and
Conditioning, Pilates,
Yoga
Nutrition
PT
Tennis Coaching
Kids after school sport
programs
Locals and
corporates
Boutique training
atmosphere
Short Term gym
memberships
Discounted
tennis court hire
for members
Jetts
Shop 2,
Ground Floor,
76 Berry St
North Sydney
Yes Yes Group and personal
training
Cardio and strength
equipment
Busy people
needing 24
hour access
Access to all
Jetts locations
Page 16 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Name 24/7 Franchise Facilities detail Target market Other details
Jetts
Shop 3, 199
Military Road
Neutral Bay
Yes Yes Group and personal
training
Cardio and strength
equipment
Busy people
needing 24
hour access
Access to all
Jetts locations
Jetts
205 Pacific
Highway
St Leonards
Yes Yes Group and personal
training
Cardio and strength
equipment
Busy people
needing 24
hour access
Access to all
Jetts locations
Anytime
Fitness
182 Blues Point
Road
McMahons
Point
Yes Yes Cardio equipment –
treadmill, elliptical,
exercise cycles, stair,
spin, rowing
Strength equipment –
free, plate loaded
weights, racks, kettle
bells
PT
Physio
Massage
Busy people Access to all
Anytime Fitness
locations
Anytime
Fitness 124
Military Rd
Neutral Bay
Yes Yes Cardio equipment –
treadmill, elliptical,
exercise cycles, stair,
spin, rowing
Strength equipment –
free, plate loaded
weights, racks,
circuit/selectorized
Health Plan discounts
Wellness programs
Boot camps
PT
Busy people Access to all
Anytime Fitness
locations
Anytime
Fitness
118 Walker St
(new location)
North Sydney
Yes Yes Cardio equipment –
treadmill, elliptical,
exercise cycles, stair
Strength equipment –
free, plate loaded
weights, racks,
circuit/selectorized
Health Plan discounts
Wellness programs
Classes
Busy people Access to all
Anytime Fitness
locations
Plus Fitness
362/364
Military Rd
Cremorne
Yes Yes Classes on Demand
Cross Fit style
functional training
zone
Free weights, cardio
equipment, strength
and resistance
machines
Unknown Opening in
January 2015
Access to all Plus
Fitness facilities
Heart and Soul
Health Club
28 Willoughby
Rd
Crows Nest
Yes Yes Yoga
Pilates
Free weights and
strength equipment
Circuit classes
PT
Yoga
Page 17 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
2.3.4 Car Parking
A comparison of car parking at Sydney CDB pools is summarised in Table 2.3. On street car
parking is the norm for CBD aquatic centres. Only Ian Thorpe Aquatic Centre has on-site
parking, which costs $2.50 per hour.
Table 2.3: Car Parking at CBD Aquatic Centres
Pool
Site and Parking details Onsite parking costs
Cook and
Philip
Pool situated in CBD and close to tourist
areas – Hyde Park and St Mary‟s Cathedral
Metered street parking available.
Accessible by public transport
NIL
Boy Charlton Pool situated within a park/not on a main
road; metered parking available on Mrs
Macquarie‟s Road near Botanic
Gardens/National Gallery.
Some parking (free) available in surrounding
areas ie Woolloomooloo within walking
distance.
Accessible by public transport
Council metered
Ian Thorpe Pool situated close to CBD; metered street
parking available
Onsite parking (99 vehicles); entrance via
Pyrmont St.
Accessible by public transport
$2.50 per hour;
increases in 30 min
increments
Payment required
at pool reception.
Cheaper than
street parking
Prince Alfred Pool situated in a park; entrance accessible
by foot from main roads.
Metered parking available within walking
distance on Chalmers Street and local
streets; restricted hours due to busy area
Accessible by public transport
NIL
Victoria Park Pool situated in a park, behind University of
Sydney; entrance accessible by foot from
main roads.
Metered parking available on City Rd and
Parramatta Rd; restricted hours due to busy
area
2 hours free parking available in Broadway
shopping centre (within walking distance)
Accessible by public transport
Limited 2 hour free
parking onsite (20
bays
approximately).
2.3.5 Summary
NSOP has six pools within or close to its primary catchment area. It is likely that substantial
“leakage” of customers from its primary catchment area occurs. In simple terms, NSOP is
subject to intense competition for customers, and therefore must differentiate itself in the
market to attract and retain customers.
NSOP has 23 health and fitness centres located within its primary catchment area, including
eight 24/7 facilities. The range of facilities is substantial, with most fitness markets serviced by
at least one health and fitness centre. As with swimming pools, competition for the health
and fitness customer is intense in this geographic market.
Page 18 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Car parking is obviously a major consideration for all aquatic centres. If customers travel by
car the cost of car parking is an “extra” to the entry fee. A competitive advantage will
accrue to any pool which is able to offer free car parking. This is likely to be a significant
incentive in attracting families and caregivers taking children to swimming lessons.
2.4 Participation Data
The Australian Bureau of Statistics produce two statistical reports relating to participation in
sport. Participation in Sport and Physical Recreation, Australia, 2011-12 addresses
participation at least once in the previous 12 months by people living in NSW, aged over 15
years and Children's Participation in Sport and Leisure Time Activities, 2003 to 2012 addresses
national participation at least once outside of school hours, in the previous 12 months by
people aged 5 to 14 years.
2.4.1 Swimming and Diving
In relation to swimming the reports have found:
Age (Years) 15–17 18–24 25–34 35–44 45–54 55–64 65 + Total
Swimming/Diving 8.6% 5.3% 11.5% 10.8% 8.6% 9.0% 5.6% 8.6%
Annual
Participation
1–12
times
13–26
times
27–52
times
53–104
times
105+
times
Swimming/Diving 15.9% 22.7% 31.4% 14.8% 15.2%
Type of
Participation
Organised
only
Non-organised
only
Both organised and
non-organised
Swimming/Diving 5.7% 90.4% 3.9%
Children’s Participation 2012
5 – 8 Years 24.5%
9 – 11 Year 18.1%
11 – 14 Years 8.0%
This data the popularity of swimming for young children, and for non organised participation.
It is also likely that a high proportion of young children participate in swimming lessons.
Using the swimming participation rates and the age profile of North Sydney, an estimate of
the total number of swims per annum can be made:
Minimum: 212,013
Maximum: 346,067
This estimate includes swimming at all places outside including the home, beaches and all
categories of aquatic facilities (eg indoor and outdoor swimming pools). It is not known what
proportion of swimming is undertaken a venues other than traditional swimming pools.
The 2013 CERM PI Operational Management Benchmarks for Australian Public Sport, Leisure
& Aquatic Centres found that the average number of visits per annum by people living within
a 5km catchment was 5.5. This finding was based on a survey of 90 indoor and outdoor
pools throughout Australia. Based on the population of North Sydney of 62,300, the
projected annual attendance will be approximately 342,650.
Page 19 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
2.4.2 Health and Fitness
In relation to swimming the reports have found:
Age (Years) 15–17 18–24 25–34 35–44 45–54 55–64 65 + Total
Fitness/gym 10.4% 27.5% 22.9% 20.6% 16.6% 9.4% 6.1% 16.6%
Annual
Participation
1–12
times
13–26
times
27–52
times
53–104
times
105+
times
Fitness/gym 7.7% 10.9% 18.4% 22.8% 40.2%
Using the fitness/gym participation rates and the age profile of North Sydney, an estimate of
the total number of participants and number of times residents participate in fitness/gym
activities per annum can be made:
Participants: 10,333
Maximum visits: 627,806
Minimum visits: 881,198
This participation does not take account of people who work in North Sydney (or Sydney)
CBD and are members of local clubs. Similarly, no allowance is made for people who live in
North Sydney and use venues outside the municipality.
2.5 Aquatic Markets
The aquatics market comprises at least six distinct segments, each requiring a specific
marketing mix to maximise market share:
1 Lap swimming – tend to swim early in the morning or after work, supplemented by
some who swim during their lunch time. Require lane space (at least 25 metre pool
size), with speed indicators for each lane (ie slow, medium, fast). Tend to swim on a
regular basis, and often more than once per week. Water temperature is preferably
between 260C and 280C. Most lap swimmers prefer to swim year round.
2 Swim coaching/squads – usually children and young people up to about 16 years,
supplemented by adult squads mainly masters swim squads and triathlon swim squads.
Main squad training times are early morning (from 5.30am) and early evening (5.30pm
– 7.30pm). Require reserved lane space, for between three and 10 times per week.
Water temperature is preferably between 260C and 280C. As with lap swimmers,
squads swim year round.
3 Learn to swim lessons (private, group and school) – lessons are offered to all ages, from
“mothers and babies” to adult lessons. Most lessons are conducted after school (4pm
to 6pm) and on Saturday and Sunday mornings. Adult lessons tend to be offered later
in the evening and “mothers and babies” classes are usually on weekday morning
between 9am and noon. Most classes are offered once a week, often for a ten week
term or block. Water temperature is preferably between 290C and 310C. The number
of people in swim lessons declines in winter, although many children participate in
lessons year round.
4 Recreational aquatic play – all humans play and socially interact. In an aquatic
environment, play is often defined by the age of participants (ie pre-schoolers, junior
primary school age, senior primary school age, young teenagers, young people and
adults). Play equipment is larger and more adventurous the older the participant.
Play experiences are enhanced by either moving water (eg water cannons and rapid
rivers) or moving the participant (eg water slides and climbing structures). Most
recreational play is conducted after school/work time (eg weekday evenings and
Page 20 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
weekends). It can also involve relaxation (eg sunbathing, and “hanging about”) and
supervising young children. Water temperature is preferably between 280C and 310C.
5 Aquatic fitness programs – in addition to lap swimming, aquatic fitness programs
include aqua aerobics (group exercise to music in water), water walking (using a
floatation vest), and other similar gentle exercise activities. These activities tend to
attract older adults, particularly women. Classes are held at times to suit the
participants (eg older women on weekday mornings). Water temperature is preferably
between 280C and 310C.
6 Therapeutic and rehabilitation programs – tend to be supervised by a physiotherapist.
In some instances an individual will perform prescribed exercises for warm water
exercise without supervision. The main requirement is warm water (approximately
340C) of about 1.5m in depth.
2.6 Health And Fitness Market
The health and fitness market has changed substantially in the last few years. The
introduction of franchised 24/7 venues has resulted in a massive proliferation of centres and
heavy discounting. This puts considerable strain on sales to new members and member
retention. In addition, these gyms are low cost models, with many not offering group fitness
classes, crèche or fitness assessments. The outcome is membership fees for “no frills”
membership are now about the same as 10 years ago.
2.7 Potential Demand
Based on participation rates for swimming in NSW, the total number of swims per annum by
North Sydney residents aged over 15 years is between 212,00 and 346,000. Attendance
statistics for 2013/14 indicate that approximately 196,200 adult swims occurred. In addition,
and based on research data provided by Council:
Approximately 75% of customers are live within 6 – 7 km of the NSOP.
80% of customers visited the pool by car, walking, bike and bus, suggesting they live
locally.
It is not known what proportion of residents use aquatic centres in other municipalities.
However, based on the research it would appear that in the order of 147,000 swim
attendances were by North Sydney residents. Thus it is likely that in the order of at least
65,000 (211,000-147,000), and up to 199,000 (346,000-147,000) swims are undertaken by North
Sydney residents other venues. Consequently, substantial potential exists to increase swim
attendances at NSOP from North Sydney residents. It will depend of the facilities included
and elimination of barriers to participation, such as car parking. This analysis only relates to
residents of North Sydney, it does not include workers and visitors to Sydney and North
Sydney CBD, or residents in the suburbs abutting North Sydney.
Attendance data in 2013/14 indicated that approximately 56,500 visits were for health and
fitness activities (Membership/Subscriptions - 55,888, Aerobics – 644). Given that the
catchment for health and fitness centres is highly localised, that is close to home or work, it
suggests that NSOP is operating in a large market and has a small share of the market.
Potential therefore exists to increase market share, based on high quality management and
god quality facilities, equipment, programs and appropriate pricing.
To estimate the level of saturation in the North Sydney health and fitness market, a series of
assumptions have been used:
Each health and fitness centre has been classified as a full service gyms (N=8 - offers full
Page 21 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
range of health and fitness programs and services), specialist gyms (N=11 - targets a
specific market or offers a small range of programs and services) or a 24/7 gyms (N-8 -
open all hours).
The number of members in each category of gym is estimated based on “industry
knowledge”. Full service gyms = 2,000, Specialist gyms = 300, and 24/7 gyms = 1,000. No
formal benchmarks exist for health and fitness membership, although it is known that 2
to 3 members per m2 is a formula used by the full service gyms.
Based on these assumptions, the 23 (excluding NSOP) health and fitness facilities cater for
27,300 members. This is 265% more than the projected number of participants (refer to
section 2.4.2).
Page 22 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
This chapter reviews the potential impact of the three original development options, and
additional options prepared based on feedback from Council.
3.1 Summary of Development Options
Six development options have been proposed:
Basic upgrade scheme
New 50m pool
New leisure pool
Upgrade existing change facilities
Part refurbish existing grandstand – current capacity 1,700
Major upgrade scheme
New 50m pool
New leisure pool
Upgrade existing 25m pool to 8 wide lanes
New splash pad and water play area
Upgrade existing change facilities
New gym in the grandstand above change facilities
Full refurbish existing grandstand and shade structure maintain current capacity 1,700
Generational upgrade scheme
New 50m pool
New external leisure pool + Sunshade
New external waterslide
New external splash pad and water play area
Upgrade existing indoor 25m pool to full 8 wide lanes
New covered entry
New change rooms including family change facilities
New large gym and wellness centre under the 50m pool (1650m²)
New events space in the grandstand above change facilities (610m²)
New grandstand and shade structure for 800 people
New concourse level Cafe / Kiosk
New “Ripples” Cafe in old gym area under Aqua dining
Generational upgrade scheme with diving
New 51.5m pool with two booms
New diving tower (Not to international Standard) – No 7.5m or 10m platforms
Reduced external leisure pool + Sunshade
Reduced external waterslide
No new splash pad and water play area
New covered entry
Upgrade existing indoor 25m pool to 8 wide lanes
Hydrotherapy pool
New change rooms including family change facilities
New large gym and wellness centre under the 51.5m pool (1650m²)
New events space in the grandstand above change facilities (610m²)
3 IMPACT OF OPTIONS
Page 23 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
New grandstand and shade structure for 800 people
New concourse level Cafe / Kiosk
New “Ripples” Cafe in old gym area under Aqua dining
Generational upgrade scheme with diving and 66m pool
New 66m pool with two booms
New diving tower (Not to international Standard) – No 7.5m or 10m platforms
No new external leisure pool
No new external waterslide
No new external splash pad and water play area
New covered entry
Upgrade existing indoor 25m pool to 8 wide lanes
Hydrotherapy pool
New change rooms including family change facilities
New large gym and wellness centre under the 50m pool (1650m²)
New events space in the grandstand above change facilities (610m²)
New grandstand and shade structure for 800 people
New concourse level Cafe / Kiosk
New “Ripples” Cafe in old gym area under Aqua dining
Generational upgrade scheme with aquatic facilities redeveloped
New 66m pool with 2 booms
Full international diving facility
New indoor leisure pool
New indoor splash pad and water play area
Reduced new indoor waterslide
New 6 lane indoor 25m pool with LTS platforms
New upper and lower change rooms including family change facilities
New large gym and wellness centre under the 50m pool (1650m²)
New hydrotherapy pool under the 50m pool
New events space in the grandstand above change facilities (745m²)
New grandstand + shade structure for 750 people
Landscaped roof – New harbour Foreshore Park
Underground parking for 125 cars
New concourse level Cafe / Kiosk
New “Ripples” Cafe in old gym area under Aqua dining
3.2 Potential Impact on Markets
The potential impact on attendances for the proposed developments are described.
3.2.1 Basic Upgrade Scheme
Basic Upgrade Scheme
Potential Impact
New 50m pool While redevelopment occurs, customers will relocate to
alternative pools. It is likely that attracting existing customers
back to NSOP will occur over a 3 to 6 month period. If a
targeted marketing strategy is adopted it will initially
encourage customers who currently use other pools to try out
the new facilities. The nett effect should be neutral. It will be
heavily dependent upon the re-opening marketing program.
Given the new facility is a replacement of the existing pool, it is
unlikely that a significant increase in attendances will occur. At
Page 24 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Basic Upgrade Scheme
Potential Impact
a minimum an increase of about 5% in adult swimmers may be
expected.
It is expected that the new plant and equipment will be
environmentally sustainable, which could result in utility costs
being reduced by 10% or more or about 5% total utility costs.
New leisure pool This pool is primarily targeted at children and families. As it is
being developed as a replacement pool, and given the
current leisure pool has little use, it is not likely that significant
increase in child attendances will occur. The increase will
potentially be less than 5%.
Upgrade existing change
facilities
Unlikely to have any impact on attendances. This development
will remove a “dissatisfier” rather than add an attraction.
Part refurbish existing
grandstand
Unlikely to have any impact on attendances, as it is not a
revenue generating feature.
3.2.2 Major Upgrade Scheme
Major Upgrade Scheme
Potential Impact
New 50m pool While redevelopment occurs, customers will relocate to
alternative pools. It is likely that attracting existing customers
back to NSOP will occur over a 3 to 6 month period. If a
targeted marketing strategy is adopted it will initially
encourage customers who currently use other pools to try out
the new facilities. The nett effect should be neutral. It will be
heavily dependent upon the re-opening marketing program.
Given the new facility is a replacement of the existing pool, it is
unlikely that a significant increase in attendances will occur. At
a minimum an increase of about 5% in adult swimmers may be
expected.
It is expected that the new plant and equipment will be
environmentally sustainable, which could result in utility costs
being reduced by 10% or more or about 5% total utility costs.
New leisure pool This pool is primarily targeted at children and families. As it is
being developed as a replacement pool, and given the
current leisure pool has little use, it is not likely that significant
increase in child attendances will occur. The increase will
potentially be less than 5%.
New splash pad and
water play area
This feature is expected to attract families with young children.
An increase in child attendances of another 5% could be
expected – a total of 10% with the synergetic effect of the new
leisure pool.
Whilst this feature will not require an increase in lifeguard
supervision, it will result in an increase in utility costs.
Upgrade existing 25m pool
to 10 wide lanes
The main impact of this extension is to increase the capacity to
conduct aquatic education classes. NSOP receives pool entry
fees, which should increase by about 10% (ie about 1000
students or 2% increase in child visits). There may be marginal
increases in adult use of the indoor pool.
Page 25 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Major Upgrade Scheme
Potential Impact
The increase in pool size (25%) will result in an increase in utility
costs in the order of 25% or about 15%.
Upgrade existing change
facilities
Unlikely to have any impact on attendances. The improved
change facilities in the development will remove a
substandard “dissatisfier” facility rather than add a large
attractor
New gym in the
grandstand above
change facilities
An increase in membership could be substantial, depending
upon the quality of the redevelopment. The main factors which
influence the increase in attendances will be how existing
competitors react in terms of pricing and market positioning.
The number of members which can be accommodated will
depend upon the floor space. A basic rule of thumb is 2
members per m2. However, the intense competition in the
North Sydney market may impact on membership growth.
An expansion of the health and fitness suite will also result in
increased staffing, such as fitness instructors and group fitness
instructors.
Part refurbish existing
grandstand Full refurbish
existing grandstand and
shade structure
Unlikely to have any impact on attendances, as it is not a
revenue generating feature. The benefits are visitor amenity,
health and wellbeing (Protection from the sun / weather
elements).
3.2.3 Generational Upgrade Scheme
Generational Upgrade
Scheme
Potential Impact
New 50m pool While redevelopment occurs, customers will relocate to
alternative pools. It is likely that attracting existing customers
back to NSOP will occur over a 3 to 6 month period. If a
targeted marketing strategy is adopted it will initially
encourage customers who currently use other pools to try out
the new facilities. The nett effect should be neutral. It will be
heavily dependent upon the re-opening marketing program.
Given the new facility is a replacement of the existing pool, it is
unlikely that a significant increase in attendances will occur. At
a minimum an increase of about 5% in adult swimmers may be
expected.
It is expected that the new plant and equipment will be
environmentally sustainable, which could result in utility costs
being reduced by 10% or more or about 5% total utility costs.
New leisure pool This pool is primarily targeted at children and families. As it is
being developed as a replacement pool, and given the
current leisure pool has little use, it is not likely that significant
increase in child attendances will occur. The increase will
potentially be less than 5%.
New splash pad and
water play area
This feature is expected to attract families with young children.
An increase in child attendances of another 5% could be
expected – a total of 10% with the synergetic effect of the new
leisure pool.
Page 26 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Generational Upgrade
Scheme
Potential Impact
Whilst this feature will not require an increase in lifeguard
supervision, it will result in an increase in utility costs.
New waterslide The waterslide has the potential to increase the number of
young people aged 10 – 15 years, depending upon the “thrill”
factor. Additional revenue will be generated if it is an
attraction. Additional supervision costs will be incurred.
Upgrade existing 25m pool
to 10 wide lanes
The main impact of this extension is to increase the capacity to
conduct aquatic education classes. NSOP receives pool entry
fees, which should increase by about 10% (ie about 1000
students or 2% increase in child visits ). There may be marginal
increases in adult use of the indoor pool.
The increase in pool size (25%) will result in an increase in utility
costs in the order of 25%, an overall increase of NSOP utility
costs of 15%.
New change rooms
including family change
facilities
Unlikely to have any impact on attendances. The improved
change facilities in the development will remove a
substandard “dissatisfier” facility rather than add a large
attractor.
New large gym and
wellness centre under the
50m pool
An increase in membership could be substantial, depending
upon the quality of the redevelopment. The main factors which
influence the increase in attendances will be how existing
competitors react in terms of pricing and market positioning.
The number of members which can be accommodated will
depend upon the floor space. A basic rule of thumb is 2
members per m2. However, the intense competition in the
North Sydney market may impact on membership growth.
An expansion of the health and fitness suite will also result in
increased staffing, such as fitness instructors and group fitness
instructors. Staff costs expected to increase in line with
membership increase. Doubling staffing costs will result in a 5%
increase in total staffing costs.
The initial plans indicate a health and fitness suite of 1,732m2
excluding amenities, and including 200m2 for a wellness centre.
When the scope and extent of the wellness centre is clarified, a
better appreciation of its revenue potential can be assessed.
New events space in the
grandstand above
change facilities
It is assumed that the event space will be commercially hired to
external groups and potentially catered for by the adjoining
restaurant (Weddings – School Formals and the like. It seats 500
for a banquet style event and 700 standing for a cocktail
event. Initial financial modelling based on comparable large
public venue spaces for hire (Taronga Centre) has allowed for
full commercial hire at $1500 during the day up to 4pm and
$2000 from 4pm onwards. This compares with Taronga Zoo
Venue Hire. The modelling has allowed for 2 days hire a week.
New grandstand and
shade structure
Unlikely to have any impact on attendances, as it is not a
revenue generating feature. The benefits are visitor amenity,
health and wellbeing (Protection from the sun / weather
elements).
Carpark Clearly a major revenue generator. It revenue potential will be
determined by its size and location. It is assumed that its
primary market will be the commuter market.
Page 27 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
3.2.4 Generational Upgrade Scheme with Diving and Hydrotherapy
To date there has been no specific research undertaken on whether an international diving
tower and deep water will increase attendances from clubs or specific user groups. Further
public consultation and research on this option would need to be undertaken to gain a
better understanding of future demand for this facility. Specific programming and marketing
would also be required for a diving facility to ensure that it is adequately utilised. This
research could be undertaken during the exhibition of Councils preferred scheme and would
be used to inform Council in its decision making for a final scheme.
Given the importance of the lap swimming market to NSOP, there could be a potential
impact on attendances if lap swimming lanes are closed to allow diving or other deep water
activities. The extra volume of water will also increase water sanitation and heating costs.
The actual increase in these costs will be directly proportional to the increase in water
volume.
To date there has been no specific market research undertaken to ascertain demand for a
hydrotherapy pool. It is likely to be used primarily by either physiotherapists treating patients
or individuals who are undertaking rehabilitation exercises. Further market research with local
hospitals such as Royal North Shore, The Mater and local nursing homes would need to be
undertaken to ascertain institutional demand for a Hydrotherapy facility.
Specific programming and marketing would also be required for a Hydrotherapy Pool to
ensure that it is adequately utilised. This research could be undertaken during the exhibition
of Councils preferred scheme and would be used to inform Council in its decision making for
a final scheme.
It is worth noting that under Council‟s current pricing policy North Sydney residents with a
pension card have free entry to the NSOP and its associated facilities. It is likely that a high
percentage of users will be older North Sydney residents, hence additional revenues will be
minimal from a hydrotherapy pool.
The hydrotherapy pool will also increase utility costs, in total the increase potentially in the
order of 5%.
3.2.5 Generational Upgrade Scheme with 60m Pool
This Scheme includes extending the main pool to 66m. To date there has been no market
research or community consultation to ascertain whether the increase in pool size with have
a direct impact on attendances. Further public consultation and research on this option
would need to be undertaken to gain a better understanding of future demand for the
expanded facility. Specific programming and marketing would be required to ensure that an
expanded 66 metre pool and associated facilities is adequately used.
This research could be undertaken during the exhibition of Councils preferred scheme and
would be used to inform Council in its decision making for a final scheme.
The main impact will be on increasing the cost to sanitise and heat the extra water space,
which may be in the order of 5%.
3.2.6 Redevelopment of all elements
Generational Upgrade
Scheme
Potential Impact
New 66.0m pool with 2
booms
While redevelopment occurs, customers will relocate to
alternative pools. It is likely that attracting existing customers
Page 28 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Generational Upgrade
Scheme
Potential Impact
back to NSOP will occur over a 3 to 6 month period. If a
targeted marketing strategy is adopted it will initially
encourage customers who currently use other pools to try out
the new facilities. The nett effect should be neutral. It will be
heavily dependent upon the re-opening marketing program.
To date there has been no market research or community
consultation to ascertain whether the increase in pool size with
have a direct impact on attendances. Further public
consultation and research on this option would need to be
undertaken to gain a better understanding of future demand
for the expanded facility.
However, as it is proposed to be a new pool, an increase of at
least 5% in adult swimmers may be expected.
It is expected that the new plant and equipment will be
environmentally sustainable, which could result in utility costs
being reduced by 10% or more or about 5% total utility costs for
a 50m pool. If extended to 66m and deepened for a diving
pool, the cost to sanitise and heat the extra water space, may
be in the order of 15%. The net effect will be an increase of 10%
in utility costs.
Full international diving
facility
To date there has been no specific research undertaken on
whether an international diving tower and deep water will
increase attendances from clubs or specific user groups.
Further public consultation and research on this option would
need to be undertaken to gain a better understanding of
future demand for this facility.
Specific programming and marketing would also be required
for a diving facility to ensure that it is adequately utilised.
An increase in lifeguard costs may occur if the diving tower is
open for general recreational use. If use is restricted to training
and coaching by accredited coaches and divers, additional
supervision may not be required.
New leisure pool This pool is primarily targeted at children and families. As it is
being developed as a replacement pool, and given the
current leisure pool has little use, it is not likely that significant
increase in child attendances will occur. The increase will
potentially be less than 5%.
If it includes water play equipment, such as a tipping bucket,
jets and sprays an increase in child attendances of another 5%
could be expected – a total of 10% with the synergetic effect
of the new leisure pool.
New waterslide The waterslide has the potential to increase the number of
young people aged 10 – 15 years, depending upon the “thrill”
factor. Additional revenue will be generated if it is an
attraction. Additional supervision costs will be incurred. Until the
“thrill factor” is known it is prudent to assume an increase in
revenues will be offset by increased supervision costs.
Page 29 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Generational Upgrade
Scheme
Potential Impact
New 8 lane 25m pool with
LTS platforms
The main impact of this extension is to increase the capacity to
conduct aquatic education classes. NSOP receives pool entry
fees, which should increase by about 10% (ie about 1000
students or 2% increase in child visits ). There may be marginal
increases in adult use of the indoor pool.
The increase in pool size (25%) will result in an increase in utility
costs in the order of 25%, an overall increase of NSOP utility
costs of 15%.
New upper and lower
change rooms including
family change facilities
Unlikely to have any significant impact on attendances. The
improved change facilities in the development will remove a
substandard “dissatisfier” facility rather than add a large
attractor.
New large gym and
wellness centre under the
50m pool
An increase in membership could be substantial, depending
upon the quality of the redevelopment and marketing. The
main factors which influence the increase in attendances will
be how existing competitors react in terms of pricing and
market positioning. The number of members which can be
accommodated will depend upon the floor space. A basic
rule of thumb is 2 members per m2. However, the intense
competition in the North Sydney market may impact on
membership growth.
An expansion of the health and fitness suite will also result in
increased staffing, such as fitness instructors and group fitness
instructors. Staff costs expected to increase in line with
membership increase. Doubling staffing costs will result in a 5%
increase in total staffing costs.
The plans indicate a health and fitness suite of 1,650m2
excluding amenities, and including a wellness centre. When
the scope and extent of the wellness centre is clarified, a better
appreciation of its revenue potential can be assessed.
New hydrotherapy pool To date there has been no specific market research
undertaken to ascertain demand for a hydrotherapy pool. It is
likely to be used primarily by either physiotherapists treating
patients or individuals who are undertaking rehabilitation
exercises. Further market research with local hospitals such as
Royal North Shore, The Mater and local nursing homes would
need to be undertaken to ascertain institutional demand for a
Hydrotherapy facility.
Specific programming and marketing would also be required
for a Hydrotherapy Pool to ensure that it is adequately utilised.
This research could be undertaken during the exhibition of
Councils preferred scheme and would be used to inform
Council in its decision making for a final scheme.
It is worth noting that under Council‟s current pricing policy
North Sydney residents with a pension card have free entry to
the NSOP and its associated facilities. It is likely that a high
percentage of users will be older North Sydney residents, hence
additional revenues will be minimal from a hydrotherapy pool.
Page 30 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Generational Upgrade
Scheme
Potential Impact
New 750m2 events space
in the grandstand above
change facilities
It is assumed that the event space will be commercially hired to
external groups and potentially catered for by the adjoining
restaurant (Weddings – School Formals and the like. It seats 500
for a banquet style event and 700 standing for a cocktail
event. Initial financial modelling based on comparable large
public venue spaces for hire (Taronga Centre) has allowed for
full commercial hire at $1500 during the day up to 4pm and
$2000 from 4pm onwards. This compares with the Taronga
Centre Venue Hire. The modelling has allowed for 2 days hire a
week.
New grandstand and
shade structure
Unlikely to have any impact on attendances, as it is not a
revenue generating feature. The benefits are visitor amenity,
health and wellbeing (Protection from the sun / weather
elements).
Underground parking for
125 cars
Clearly a major revenue generator. Its revenue potential will be
determined by its size and location. It is assumed that its
primary market will be the casual parkers and major event
parkers market.
Landscaped urban roof
park
Based on Wendy Whitely Gardens, Council expect it to be
rented for between 1 and 2 times per week for between $1,500
and $4,000 per hour.
Page 31 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
4.1 Assumptions
The following financial projections are based on a series of assumptions:
1 The base which has been used is the 2013/2014 actual financial results.
2 The basic assumptions outlined in the previous chapter have been used to increase
income and decrease expenditure based on the three options.
3 The current management strategy will continue in which the NSOP is managed in-
house by Council staff. The food and beverage facilities will continue to be leased to a
commercial operator as will the swim coaching concession. No allowance for an
increase in lease fees has been included in the projections.
4 CPI increase of 3% per annum has been used for income and expenditure for Years 2
to 20,
5 Buildings are depreciated at 2% per annum (ie 50 year life) and plant and equipment
at 6.7% (ie 15 year life).
6 Projected attendances and memberships are achieved in Year 1. No allowance has
been made to build up patronage during the first and second year.
4.1.1 Basic Upgrade Scheme
1 Current patronage levels in the swimming pools will return to 2013/14 levels within 12
months of re-opening
2 Additional marketing costs ($20,000) will be required to advertise re-opening
3 At a minimum an increase of 5% in adult swimmers may be expected.
4 New plant and equipment will be environmentally sustainable, resulting in utility and
pool chemical costs being reduced by 10% or more, or 5% total utility costs.
5 The increase in child attendances will be negligible.
6 Increases in spectators will be directly proportional to the increase in swimming
attendances.
7 Income from street car parking meters are not included in NSOP revenues.
8 Foregone revenue of $350,000 from the Park and Swim scheme is included as an
expense to NSOP.
4.1.2 Major Upgrade Scheme
1 Current patronage levels in the swimming pools will return to 2013/14 levels within 12
months of re-opening
2 Additional marketing costs ($20,000) will be required to advertise re-opening
3 At a minimum an increase of 5% in adult swimmers may be expected.
4 FINANCIAL MODEL
Page 32 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
4 New plant and equipment will be environmentally sustainable, resulting in utility and
pool chemical costs being reduced by 5%. The new splash pad. water play area and
extended indoor pool will increase utility and pool chemical costs by 15%. The net
increase in utility and pool chemical costs will be 10%.
5 The increase in child attendances will be 10% due to the leisure pool combined with
the splash pad and 2% increase in aquatic education attendances.
6 Health and fitness instructor costs will increase total staffing costs by 10%.
7 Additional health and fitness equipment is purchased at a cost of $500,000.
8 Health and fitness equipment is leased over 60 months, at 6% interest with no residual.
9 In year 6 the equipment has no value and new equipment is leased for $500,000 on the
same lease terms and conditions.
10 Increases in spectators will be directly proportional to the increase in swimming
attendances.
11 Income from street car parking meters are not included in NSOP revenues.
12 Foregone revenue of $350,000 from the Park and Swim scheme is included as an
expense to NSOP.
4.1.3 Generational Upgrade Scheme
1 Current patronage levels in the swimming pools will return to 2013/14 levels within 12
months of re-opening
2 Additional marketing costs ($20,000) will be required to advertise re-opening
3 At a minimum an increase of 5% in adult swimmers may be expected.
4 New plant and equipment will be environmentally sustainable, resulting in utility and
pool chemical costs being reduced by 5%. The new splash pad. water play area and
extended indoor pool will increase utility costs by 15%. The net increase in utility costs
will be 10%.
5 The increase in child attendances will be 20% due to the leisure pool combined with
water slide and splash pad and 2% increase in aquatic education attendances.
6 Health and fitness revenue will increase by 100%.
7 Health and fitness instructor costs will increase total staffing costs by 10%.
8 $5 charge to use water slide for adults and children – in addition to pool entry.
9 20% and 5% of child and adult entries respectively will use water slide.
10 Water slide open and supervised by one lifeguard for 3 hours on weekdays and 6 hours
on weekends from 1 October to mid December and from beginning February to end
of March (20 weeks) and 6 hours every day from mid December to end of January (six
weeks).
11 The wellness Centre occupies 200m2.
12 Suites in the Wellness Centre will be permanently rented at a rate of $400/m2 – all
outgoings are the responsibility of the tenant (eg utilities and cleaning).
13 Wellness suites have 100% occupancy
14 The Event Centre occupies 600m2.
15 The Event Centre will be permanently rented at a rate of $400/m2 – all outgoings are
the responsibility of the tenant (eg utilities and cleaning).
16 The Event Centre is fully let from the first day of re-opening of NSOP.
Page 33 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
17 Additional health and fitness equipment is purchased at a cost of $500,000.
18 Health and fitness equipment is leased over 60 months, at 6% interest with no residual.
19 In Year 6 the equipment has no market value and new equipment is leased for
$500,000 on the same lease terms and conditions.
20 Increases in spectators will be directly proportional to the increase in swimming
attendances.
21 Income from street car parking meters are not included in NSOP revenues.
22 Foregone revenue of $350,000 from the Park and Swim scheme is included as an
expense to NSOP.
4.1.4 Generational Upgrade Scheme with Diving and Hydrotherapy
1 All the assumptions in the Generational Upgrade Scheme will apply
2 Hydrotherapy pool will attract 50 additional customers per week over 48 weeks, with
90% being North Sydney pensioners who are not charged entry. The balance will be
older adults paying pensioner entry fees. To significantly increase usage of the
Hydrotherapy pool institutional patronage from local hospitals and marketing would be
required. It is recognised that the commercial value of the Hydrotherapy pool is limited
and that it is more for general community health and wellbeing purposes.
3 Utility and pool chemical costs will increase by 5%.
4.1.5 Generational Upgrade Scheme with 60m Pool
1 All the assumptions in the Generational Upgrade Scheme with diving and
hydrotherapy will apply.
2 Utility and pool chemical costs will increase by 5%.
4.1.6 Redevelopment of all elements
1 Current patronage levels in the swimming pools will return to 2013/14 levels within 12
months of re-opening
2 Additional marketing costs ($20,000) will be required to advertise re-opening
3 At a minimum an increase of 5% in adult swimmers may be expected.
4 New plant and equipment will be environmentally sustainable, resulting in utility and
pool chemical costs being reduced by 5%. The new splash pad, water play area and
larger outdoor and indoor pool will increase utility costs by 30%. Hydrotherapy pool
utility and pool chemical costs will increase by 2%. The net increase in utility costs will be
27%.
5 The increase in child attendances will be 10% due to the leisure pool combined with
the water play equipment and 2% increase in aquatic education attendances.
6 Health and fitness revenue will increase by 100%.
7 Health and fitness instructor costs will increase total staffing costs by 10%.
8 $3.25 charge to use water slide for adults and children – in addition to pool entry.
9 20% and 5% of child and adult entries respectively will use water slide.
10 Water slide open and supervised by one lifeguard for 3 hours on weekdays and 6 hours
on weekends during school term time and 6 hours every day during school holidays.
Page 34 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
11 The wellness Centre occupies 200m2.
12 Suites in the Wellness Centre will be permanently rented at a rate of $400/m2 – all
outgoings are the responsibility of the tenant (eg utilities and cleaning).
13 Wellness suites have 100% occupancy
14 The new Events space is commercially hired out to private functions such as weddings
and school formals at least 2 x a week at $1,500 during the day up to 4pm and $2,000
from 4pm onwards. This compares with Taronga Centre - Venue Hire rates.
15 Additional health and fitness equipment is purchased at a cost of $500,000.
16 Health and fitness equipment is leased over 60 months, at 6% interest with no residual.
17 In Year 6 the equipment has no market value and new equipment is leased for
$500,000 on the same lease terms and conditions.
18 Hydrotherapy pool will attract 50 additional customers per week over 48 weeks, with
90% being North Sydney pensioners who are not charged entry. The balance will be
older adults paying pensioner entry fees.
19 Income from street car parking meters are not included in NSOP revenues.
20 Foregone revenue of $350,000 from the Park and Swim scheme is included as an
expense to NSOP.
21 124 car parking spaces will be rented at an average casual income per day per space
monthly rental of $18.58 (ex GST) for 355 days per annum
22 Current restaurant and café leases will be re-negotiated on current financial terms and
conditions. The additional café will be leased at a rate of $1,150/m2.
23 Merchandise sales and cost of goods sold will increase proportionally with increases in
attendances.
24 Increases in spectators will be directly proportional to the increase in swimming
attendances.
25 New foreshore park is hired for an average of 3 function every two weeks, over 52
weeks at an average rate of $2,000 + GST.
4.2 Financial Projections
Using the assumptions summarised above financial projections for the impact of upgrading
NSOP in line with Options 1, 2, 3, 4, 5 and 6 have been prepared in Table 4.1. The projections
indicate an operating loss of $290,174 in Option 1 ranging up to a profit of around $300,000
for Options 3, 4 and 5 and $1,176,886 for Option 6.
[Note: Option 1: Basic Upgrade Scheme
Option 2: Major Upgrade Scheme
Option 3: Generational Upgrade Scheme
Option 4: Generational Upgrade Scheme with Diving and Hydrotherapy
Option 5: Generational Upgrade Scheme with 60m Pool
Option 6: Redevelopment of all elements]
Page 35 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Table 4.1: Projected Operating Budget for three Options
Operating Budget
Option 1 Option 2 Option 3 Option 4 Option 5 Option
INCOME
Casual swimmers
Adult $465,587 $465,587 $465,587 $465,587 $465,587 $465,587
Adult concession $495,398 $495,398 $495,398 $507,180 $507,180 $507,180
Child $103,275 $115,668 $125,996 $125,996 $125,996 $115,668
Child concession $31,167 $34,907 $38,024 $38,024 $38,024 $34,907
Spectators $60,056 $61,547 $62,789 $62,789 $62,789 $62,102
Coaching $43,256 $43,256 $43,256 $43,256 $43,256 $43,256
Aquatic Programs $264,293 $264,293 $340,170 $340,170 $340,170 $264,293
Miscellaneous $174,347 $174,347 $174,347 $174,347 $174,347 $330,347
Sub Total $1,637,379 $1,655,003 $1,745,567 $1,757,349 $1,757,349 $1,823,340
Swim School $0 $0 $0 $0 $0 $0
School Swim $0 $0 $0 $0 $0 $0
Total Aquatics
Income $0 $0 $0 $0 $0 $0
H&F income $597,425 $1,194,850 $1,194,850 $1,194,850 $1,194,850 $1,194,850
H&F income $597,425 $1,194,850 $1,194,850 $1,194,850 $1,194,850 $1,194,850
Merchandise $135,322 $135,322 $135,322 $135,322 $135,322 $145,423
COGS $79,636 $79,636 $79,636 $79,636 $79,636 $85,581
Merchandise
gross profit $55,686 $55,686 $55,686 $55,686 $55,686 $59,843
Commercial
Venue Hire $500,868 $500,868 $820,868 $820,868 $820,868 $907,368
Car parking $0 $0 $0 $0 $0 $817,892
TOTAL INCOME $2,791,358 $3,406,407 $3,816,971 $3,828,753 $3,828,753 $4,803,292
EXPENDITURE
Total staffing costs $1,592,627 $1,751,890 $1,801,544 $1,801,544 $1,801,544 $1,801,544
General Expenses $0 $0 $0 $0 $0 $0
Maintenance $322,551 $322,551 $322,551 $322,551 $322,551 $322,551
Pool chemicals $82,858 $95,941 $95,941 $100,738 $105,775 $110,768
Security $0 $0 $0 $0 $0 $0
Utilities $421,709 $488,294 $488,294 $512,709 $538,345 $563,758
Tele
communications $4,687 $4,687 $4,687 $4,687 $4,687 $4,687
Insurance $53,643 $53,643 $53,643 $53,643 $53,643 $53,643
Advertising $20,416 $20,416 $20,416 $20,416 $20,416 $20,416
Legal and
accounting $0 $0 $0 $0 $0 $0
General
administration $15,748 $15,748 $15,748 $15,748 $15,748 $15,748
Bank charges $10,195 $10,195 $10,195 $10,195 $10,195 $10,195
Program Expenses $119,204 $119,204 $119,204 $119,204 $119,204 $119,204
Travel costs $13,478 $13,478 $13,478 $13,478 $13,478 $13,478
Training $0 $0 $0 $0 $0 $0
H & F Lease $0 $115,997 $115,997 $115,997 $115,997 $115,997
Staff Uniforms $6,308 $6,308 $6,308 $6,308 $6,308 $6,308
Miscellaneous $68,109 $68,109 $68,109 $68,109 $68,109 $68,109
Carpark expenses $350,000 $350,000 $350,000 $350,000 $350,000 $400,000
Total general
costs $1,488,906 $1,684,571 $1,684,571 $1,713,783 $1,744,455 $1,824,862
Page 36 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Operating Budget
Option 1 Option 2 Option 3 Option 4 Option 5 Option
TOTAL
EXPENDITURE $3,081,533 $3,436,461 $3,486,115 $3,515,327 $3,545,999 $3,626,406
PROFIT/LOSS -$290,174 -$30,054 $330,856 $313,426 $282,754 $1,1768886
4.2.1 Scenario Analysis
Two scenarios have been prepared based on variations to the assumptions detailed above:
A B
Increase in adult swimmers (main pool) 10.00% 20.00%
Increase in child swimmers (Leisure pool) 10.00% 15.00%
Increase in child swimmers (Splash pad) 10.00% 15.00%
Increase in child swimmers (Coaching) 0.00% 0.00%
Increase in child swimmers (water slide) 10.00% 15.00%
Increase in hydrotherapy customers per week 200 200
Percentage North Sydney pensioners -15.00% -15.00%
Profit/Loss $1,382,746 $1,566,744
Adults attendances 228,121 247,749
Child attendances 76,322 84,384
Total 304,443 332,133
4.3 Whole of Life Costs
Twenty year whole of life costings (Table 4.2) have been prepared for the five options using
the following assumptions:
CPI annual increases: 3.0%
Depreciation pool: 2.0% 50 year life
Depreciation buildings: 2.0% 50 year life
Depreciation P&E: 6.7% 15 year life
Option 1 Option 2 Option 3 Option 4 Option 5 Option 6
Total capital cost $16,000,000 $28,000,000 $49,000,000 $49,000,000 $49,000,000 $72,000,000
Cost of buildings $12,000,000 $22,000,000 $41,000,000 $41,000,000 $41,000,000 $66,000,000
Cost of P&E $4,000,000 $6,000,000 $8,000,000 $8,000,000 $8,000,000 $6,000,000
[Note: Detailed capital development costs have not been provided. The costs above are
based on the initial cost estimate provided by the architectural team. A breakdown of pool,
building and plant and equipment has been done on a simplistic basis and must be refined
by the quantity surveying team.]
Page 37 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Table 4.2: Whole of Life Cost
Option 1
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Income $2,791,358 $2,875,099 $2,961,352 $3,050,193 $3,141,699 $3,235,950 $3,333,028 $3,433,019 $3,536,009 $3,642,090
Expenditure $3,081,533 $3,173,979 $3,269,198 $3,367,274 $3,468,292 $3,572,341 $3,679,511 $3,789,897 $3,903,594 $4,020,701
Operating Profit/Loss -$290,174 -$298,880 -$307,846 -$317,081 -$326,594 -$336,392 -$346,483 -$356,878 -$367,584 -$378,612
Depreciation buildings $240,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000
Depreciation P&E $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667
Total depreciation $506,667 $506,667 $506,667 $506,667 $506,667 $506,667 $506,667 $506,667 $506,667 $506,667
Gross Profit/Loss -$796,841 -$805,546 -$814,513 -$823,748 -$833,260 -$843,058 -$853,150 -$863,545 -$874,251 -$885,278
Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Income $3,751,352 $3,863,893 $3,979,810 $4,099,204 $4,222,180 $4,348,846 $4,479,311 $4,613,690 $4,752,101 $4,894,664
Expenditure $4,141,322 $4,265,562 $4,393,529 $4,525,335 $4,661,095 $4,800,928 $4,944,956 $5,093,304 $5,246,103 $5,403,487
Operating Profit/Loss -$389,970 -$401,669 -$413,719 -$426,131 -$438,915 -$452,082 -$465,645 -$479,614 -$494,002 -$508,823
Depreciation buildings $240,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000
Depreciation P&E $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667 $266,667
Total depreciation $506,667 $506,667 $506,667 $506,667 $506,667 $506,667 $506,667 $506,667 $506,667 $506,667
Gross Profit/Loss -$896,637 -$908,336 -$920,386 -$932,798 -$945,581 -$958,749 -$972,311 -$986,281 -$1,000,669 -$1,015,489
Option 2
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Income $3,406,407 $3,508,599 $3,613,857 $3,722,273 $3,833,941 $3,948,960 $4,067,428 $4,189,451 $4,315,135 $4,444,589
Expenditure $3,436,461 $3,539,555 $3,645,741 $3,755,114 $3,867,767 $3,983,800 $4,103,314 $4,226,413 $4,353,206 $4,483,802
Operating Profit/Loss -$30,054 -$30,955 -$31,884 -$32,840 -$33,826 -$34,840 -$35,886 -$36,962 -$38,071 -$39,213
Depreciation buildings $440,000 $440,000 $440,000 $440,000 $440,000 $440,000 $440,000 $440,000 $440,000 $440,000
Depreciation P&E $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000
Total depreciation $840,000 $840,000 $840,000 $840,000 $840,000 $840,000 $840,000 $840,000 $840,000 $840,000
Gross Profit/Loss -$870,054 -$870,955 -$871,884 -$872,840 -$873,826 -$874,840 -$875,886 -$876,962 -$878,071 -$879,213
Page 38 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Income $4,577,926 $4,715,264 $4,856,722 $5,002,424 $5,152,497 $5,307,071 $5,466,284 $5,630,272 $5,799,180 $5,973,156
Expenditure $4,618,316 $4,756,865 $4,899,571 $5,046,559 $5,197,955 $5,353,894 $5,514,511 $5,679,946 $5,850,344 $6,025,855
Operating Profit/Loss -$40,390 -$41,601 -$42,849 -$44,135 -$45,459 -$46,823 -$48,227 -$49,674 -$51,164 -$52,699
Depreciation buildings $440,000 $440,000 $440,000 $440,000 $440,000 $440,000 $440,000 $440,000 $440,000 $440,000
Depreciation P&E $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000
Total depreciation $840,000 $840,000 $840,000 $840,000 $840,000 $840,000 $840,000 $840,000 $840,000 $840,000
Gross Profit/Loss -$880,390 -$881,601 -$882,849 -$884,135 -$885,459 -$886,823 -$888,227 -$889,674 -$891,164 -$892,699
Option 3
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Income $3,816,971 $3,931,480 $4,049,424 $4,170,907 $4,296,034 $4,424,915 $4,557,663 $4,694,393 $4,835,225 $4,980,281
Expenditure $3,486,115 $3,590,698 $3,698,419 $3,809,372 $3,923,653 $4,041,363 $4,162,604 $4,287,482 $4,416,106 $4,548,589
Operating Profit/Loss $330,856 $340,782 $351,005 $361,535 $372,381 $383,553 $395,059 $406,911 $419,118 $431,692
Depreciation buildings $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000
Depreciation P&E $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333
Total depreciation $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333
Gross Profit/Loss -$1,022,477 -$1,012,552 -$1,002,328 -$991,798 -$980,952 -$969,781 -$958,274 -$946,422 -$934,215 -$921,641
Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Income $5,129,690 $5,283,580 $5,442,088 $5,605,350 $5,773,511 $5,946,716 $6,125,118 $6,308,871 $6,498,137 $6,693,082
Expenditure $4,685,047 $4,825,598 $4,970,366 $5,119,477 $5,273,062 $5,431,253 $5,594,191 $5,762,017 $5,934,877 $6,112,924
Operating Profit/Loss $444,643 $457,982 $471,721 $485,873 $500,449 $515,463 $530,927 $546,854 $563,260 $580,158
Depreciation buildings $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000
Depreciation P&E $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333
Total depreciation $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333
Gross Profit/Loss -$908,691 -$895,351 -$881,612 -$867,460 -$852,884 -$837,871 -$822,407 -$806,479 -$790,073 -$773,175
Page 39 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Option 4
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Income $3,828,753 $3,943,615 $4,061,924 $4,183,781 $4,309,295 $4,438,574 $4,571,731 $4,708,883 $4,850,149 $4,995,654
Expenditure $3,515,327 $3,620,787 $3,729,410 $3,841,292 $3,956,531 $4,075,227 $4,197,484 $4,323,408 $4,453,111 $4,586,704
Operating Profit/Loss $313,426 $322,829 $332,514 $342,489 $352,764 $363,347 $374,247 $385,474 $397,039 $408,950
Depreciation buildings $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000
Depreciation P&E $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333
Total depreciation $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333
Gross Profit/Loss -$1,039,907 -$1,030,505 -$1,020,820 -$1,010,844 -$1,000,570 -$989,987 -$979,086 -$967,859 -$956,295 -$944,383
Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Income $5,145,523 $5,299,889 $5,458,886 $5,622,652 $5,791,332 $5,965,072 $6,144,024 $6,328,345 $6,518,195 $6,713,741
Expenditure $4,724,305 $4,866,034 $5,012,015 $5,162,376 $5,317,247 $5,476,764 $5,641,067 $5,810,299 $5,984,608 $6,164,147
Operating Profit/Loss $421,218 $433,855 $446,871 $460,277 $474,085 $488,308 $502,957 $518,045 $533,587 $549,594
Depreciation buildings $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000
Depreciation P&E $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333
Total depreciation $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333
Gross Profit/Loss -$932,115 -$919,478 -$906,463 -$893,057 -$879,248 -$865,026 -$850,377 -$835,288 -$819,747 -$803,739
Option 5
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Income $3,828,753 $3,943,615 $4,061,924 $4,183,781 $4,309,295 $4,438,574 $4,571,731 $4,708,883 $4,850,149 $4,995,654
Expenditure $3,545,999 $3,652,379 $3,761,950 $3,874,809 $3,991,053 $4,110,785 $4,234,108 $4,361,132 $4,491,966 $4,626,724
Operating Profit/Loss $282,754 $291,236 $299,973 $308,973 $318,242 $327,789 $337,623 $347,751 $358,184 $368,929
Depreciation buildings $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000
Depreciation P&E $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333
Total depreciation $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333
Gross Profit/Loss -$1,070,580 -$1,062,097 -$1,053,360 -$1,044,361 -$1,035,092 -$1,025,544 -$1,015,711 -$1,005,582 -$995,149 -$984,404
Page 40 North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Income $5,145,523 $5,299,889 $5,458,886 $5,622,652 $5,791,332 $5,965,072 $6,144,024 $6,328,345 $6,518,195 $6,713,741
Expenditure $4,765,526 $4,908,492 $5,055,747 $5,207,419 $5,363,642 $5,524,551 $5,690,288 $5,860,996 $6,036,826 $6,217,931
Operating Profit/Loss $379,997 $391,397 $403,139 $415,233 $427,690 $440,521 $453,737 $467,349 $481,369 $495,810
Depreciation buildings $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000 $820,000
Depreciation P&E $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333 $533,333
Total depreciation $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333 $1,353,333
Gross Profit/Loss -$973,336 -$961,936 -$950,194 -$938,100 -$925,643 -$912,812 -$899,597 -$885,985 -$871,964 -$857,523
Option 6
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Income $4,803,292 $4,947,391 $5,095,813 $5,248,687 $5,406,148 $5,568,332 $5,735,382 $5,907,443 $6,084,667 $6,267,207
Expenditure $3,626,406 $3,735,198 $3,847,254 $3,962,672 $4,081,552 $4,203,998 $4,330,118 $4,460,022 $4,593,822 $4,731,637
Operating Profit/Loss $1,176,886 $1,212,193 $1,248,559 $1,286,015 $1,324,596 $1,364,334 $1,405,264 $1,447,422 $1,490,844 $1,535,570
Depreciation buildings $1,320,000 $1,320,000 $1,320,000 $1,320,000 $1,320,000 $1,320,000 $1,320,000 $1,320,000 $1,320,000 $1,320,000
Depreciation P&E $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000
Total depreciation $1,720,000 $1,720,000 $1,720,000 $1,720,000 $1,720,000 $1,720,000 $1,720,000 $1,720,000 $1,720,000 $1,720,000
Gross Profit/Loss -$543,114 -$507,807 -$471,441 -$433,985 -$395,404 -$355,666 -$314,736 -$272,578 -$229,156 -$184,430
Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Income $6,455,223 $6,648,880 $6,848,346 $7,053,796 $7,265,410 $7,483,373 $7,707,874 $7,939,110 $8,177,283 $8,422,602
Expenditure $4,873,586 $5,019,794 $5,170,388 $5,325,499 $5,485,264 $5,649,822 $5,819,317 $5,993,896 $6,173,713 $6,358,925
Operating Profit/Loss $1,581,637 $1,629,086 $1,677,958 $1,728,297 $1,780,146 $1,833,550 $1,888,557 $1,945,214 $2,003,570 $2,063,677
Depreciation buildings $1,320,000 $1,320,000 $1,320,000 $1,320,000 $1,320,000 $1,320,000 $1,320,000 $1,320,000 $1,320,000 $1,320,000
Depreciation P&E $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000
Total depreciation $1,720,000 $1,720,000 $1,720,000 $1,720,000 $1,720,000 $1,720,000 $1,720,000 $1,720,000 $1,720,000 $1,720,000
Gross Profit/Loss -$138,363 -$90,914 -$42,042 $8,297 $60,146 $113,550 $168,557 $225,214 $283,570 $343,677
North Sydney Olympic Pool – Catchment Analysis and Financial Modelling
Option 3 3A 4 5
AQUATICS
New 50m Pool
66m
66m
New Leisure Pool
8 lane 25m Pool
new
New Splash Pad and Water Play Area
New Waterslide
International Standard Diving Facility
CHANGE ROOMS
Upgrade existing change facilities
New Change rooms including Family Change facilities
GYM / WELLNESS CENTRE
New large Gym and Wellness Centre under 50m Pool
New Hydrotherapy Pool
EVENTS SPACE
New 610m² Event Space
750
GRANDSTAND
Part refurbished existing Grandstand
Full refurbished existing Grandstand & Shade Structure
New 800 seat Grandstand & Shade Structure
750
New underground parking for 125 cars
Note: The above table excludes Option 1 - Basic Upgrade and Option 2 – Major Upgrade
Note: The hollow dots in the table above indicate the following:
1 The 25metre pool in Options 3, 4 and 5 is an extension to the existing indoor 25metre pool
– in option 5 it is a completely new 25metre indoor pool.
2 The international Diving Facility in Options 4 and 5 does meet international diving
standards as it does not have a 7.5m and 10m diving platform.
APPENDIX A: OPTIONS TABLE