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<br /> <br />MARKET ANALYSIS <br />City of Elk River, MN <br />Feasibility Study * <br />Page 1 <br />Section II – Demographic Summary & Market Review <br /> <br />Ballard*King & Associates (B*K) as part of a larger project team led by JLG, has been <br />contracted by the City of Elk River to complete a Feasibility Study for Community Recreation <br />Center. <br /> <br />The following is a summary of the demographic characteristics of the service areas along with <br />recreation and leisure participation standards as produced by the National Sporting Goods <br />Association (NSGA), also included in participation information provided by the National <br />Endowment of the Arts (NEA). <br /> <br />B*K accesses demographic information from Environmental Systems Research Institute (ESRI) <br />who utilizes 2010 Census data and their demographers for 2015-2020 projections. In addition to <br />demographics, ESRI also provides data on housings, recreation and entertainment spending and <br />adult participation in activities. All of this data helps describe the community of the City of Elk <br />River. B*K utilizes information from the NSGA and NEA as they are some of the thorough <br />reports available on activities that could take place in a community recreation center. B*K <br />receives no financial gain by citing these sources or using their services. <br /> <br />Service Areas: A community recreation center that located in and funded by the City of Elk <br />River should serve the residents. As such a primary service area has been identified as the <br />boundaries of City of Elk River proper. In addition, to the primary service area a secondary <br />service area has been identified by the steering committee <br /> <br />Primary Service Areas are defined as the distance people will travel on a regular basis (a <br />minimum of once a week) to utilize a facility or its programs. Use by individuals outside of this <br />area will be much more limited and will focus more on special activities or events (tournaments, <br />etc.). <br /> <br />Service areas can vary in size with the types of components in the facility. A center with active <br />elements (pool, weight cardiovascular equipment area, gym, track, etc.) will have a larger service <br />area than a more passively oriented facility. Specialized facilities such as a sports field house, <br />ice arena or competitive aquatic venue will have a bigger service area, making them more of a <br />regional destination. <br /> <br />Service areas can flex or contract based on a facility’s proximity to major thoroughfares. Other <br />factors impacting the use as it relates to driving distance are the presence of alternative service <br />providers in the service area. Alternative service providers can have an effect on membership, <br />daily admissions and the associated penetration rates for programs and services. <br /> <br /> <br />APPENDIX B <br />APPENDIX B