    [From the U.S. Government Printing Office, www.gpo.gov]

          A&
               QL
               79
               .M22
               B36
               1987

                                                                                                                                                   Los Angeles, California

                                                                                                                                                 San Francisco, California

                                                                                                                                                      Seattie, Washington
                                                                                                                                                           Chicago, Illinois

                                                                                                                                                   Boston, Massachusetts

                                                                                                                                                         Washington, D.C.

                                                                                                                                                    Ft. Lauderdale, Florida

                       C,4

                                                                                                            MARKET AND FINANCIAL
                                                                                                            FEASIBILITY ANALYSIS
                                                                                                           FOR A PROPOSED AQUARIUM
                                                                                                                IN BANGOR, MAINE

                                                                                                                      August 1987

                                                                                                                             COASTAL ZOI\',,E
                                                                                                                     INFORMATION CENTER

                            Financial assistance for this report was provided by                                                                    a grant from
                            Maine's Coastal Program, through funding provided by                                                                    the U.S.
                            Department of Commerce, office of Ocean & Coastal Resource
                            Management, under the Coastal Zone Management Act of 1972, as
                            amended.

                                                 TABLE OF CONTENTS

                  Section                                                                   Page

                        I     INTRODUCTION AND EXECUTIVE SUMMARY     ...................     I- I

                       II     RESIDENT AND VISITOR MARKETS    .........................     II_ 1
                                  Resident Market   ..................................      II_ I
                                  Visitor Market   ...................................      11- 4
                                  Summary ..........................................        11-13

                      III     COMPARABLE ATTRACTIONS   ...............................     111- 1
                                  Huntsman Aquarium-Museum;
                                  St. Andrews, New Brunswick    .......................    111-  1
                                  Shippagan Marine Centre;
                                  Shippagan, New Brunswick    .........................    111-  2
                                  Maine Aquarium; Saco, Maine    ......................    111-  3
                                  Marine Extension Service;
                                  Skidaway Island, Georgia    .........................    111-  4
                                  Fisheries Aquarium; Woods Hole, Massachusetts       .... 111-  5
                                  Gulf of Maine Aquarium; Portland, Maine      ..........  111-  6
                                  Summary ..........................................       111-  6

                       IV     PROPOSED PROGRAM FOR THE BANGOR AQUARIUM     .............    IV-  1
                                  Project Capital Costs    ............................     IV-  3
                                  Development Considerations    .......................     IV-  3

                        V     ATTENDANCE PROJECTIONS AND PROFORMA DEVELOPMENT
                              FOR THE BANGOR AQUARIUM    ..............................      V_  1
                                  Attendance Projections    ...........................      V_  1
                                  Facility Sizing   ..................................       v-  3
                                  Operating Characteristics    ........................      V-  5
                                  Summary ..........................................         V-  7

                                                    LIST OF TABLES

                    Number                                                                     Page

                     II_ 1     POPULATION ...........................................          11- 2

                     Il- 2     HOUSEHOLDS ...........................................          11- 3

                     11-  3    AVERAGE HOUSEHOLD SIZE    ...............................       11-  5

                     Il-  4    AGE GROUP DISTRIBUTION; TOTAL MARKET AREA      ............     11-  6

                     Il-  5    MEDIAN AGE ...........................................          11-  7

                     Il-  6    MEDIAN HOUSEHOLD INCOME    ..............................       11-  8

                     11-  7    PER CAPITA INCOME   ....................................        II_  9

                     11-  8    VISITATION AT ACADIA NATIONAL PARK     ...................      11-14

                   111-   1    GENERAL CHARACTERISTICS OF COMPARABLE AQUARIUMS       ......  111- 7

                     IV-  1    SPACE PROGRAM   ........................................        IV- 4

                     IV-  2    ESTIMATE OF CAPITAL COST    .............................       IV-  8

                      V_  1    STABLE YEAR ATTENDANCE PROJECTIONS     ...................       V-  2

                      v-  2    STABLE YEAR AVERAGE VISITATION     .......................        V- 4

                      V-  3    SUMMARY OF ANNUAL OPERATING SURPLUS BASED ON
                               STABLE YEAR AVERAGE ATTENDANCE PROJECTIONS       ...........      V- 6

                                                    LIST OF FIGURES

                   Figure                                                                      Page

                     IV- 1     SPACE PROGRAM   ........................................        IV- 5

                     IV- 2     WATERWORKS CONCEPT PLAN    ..............................       IV- 6

                     IV- 3     WATERWORKS CROSS-SECTION THROUGH THE EMBAYMENT       .......    IV- 7

                   8494R.5
                   08/07/87

                                                 Section I

                                    INTRODUCTION AND EXECUTIVE SUMMARY

                       Economics Research Associates and Cambridge Seven Associates were
                 retained by the City of Bangor to evaluate the market and financial
                 feasibility of the proposed development of an aquarium in the Bangor
                 Waterworks Building. Financial assistance for preparation of this
                 document was provided by a grant from Maine's Coastal Program, through
                 funding provided by the U.S. Department of Commerce, Office of Ocean and
                 Coastal Resource Management, under the Coastal Zone Management Act of
                 1972, as amended.

                 Resident and Visitor Markets

                       Resident and visitor markets were evaluated to determine the

                 potential market support for an aquarium in Bangor. The Bangor market
                 area was evaluated and divided into primary, secondary, and tertiary
                 markets for the purpose of analysis, The residents of these three market
                 areas represent potential visitors to an aquarium in Bangor. The visitor
                 market was profiled based on statistics available from the Maine State
                 Development Office. In 1985,       1.1 million    travelers visited the
                 Downeast/Acadia Region. Tourism to this region is highly seasonal.
                 Sightseeing and cultural events are the most popular activities of
                 visitors to this region.

                 Comparable Attractions

                       Economics Research Associates interviewed personnel at five existing
                 aquariums and one proposed aquarium comparable to that being considered in
                 Bangor to determine their program content, operational information, and
                 market characteristics. This information provides a basis from which
                 attendance and financial projections for the Bangor Aquarium may be made.

                       With the exception of the Skidaway Island, Georgia facility, all the
                 aquariums are located in New England or the Atlantic Maritime Provinces of
                 Canada. Visitation levels range from lows of 23,000 at the Huntsman

                  Aquarium-Museum and 58,000 at the Shippagan Marine Centre (both facilities
                  are located in remote areas and are oriented primarily toward research),
                  to highs of 100,000 at the Maine Aquarium in Saco and the Skidaway Island
                  facility, and 200,000 at the Fisheries Aquarium at Woods Hole,
                  Massachusetts (these facilities are located in areas of heavy tourist
                  traffic).

                        The Huntsman Aquarium-Museum  and the Shippagan Marine Centre are
                  open to visitors only during the summer months, while research is
                  conducted year-round. The Skidaway Island facility and the Woods Hole
                  Aquarium do not charge admission. The Maine Aquarium in Saco, Maine
                  charges an adult admission price of $5.00 and offers memberships for
                  $40.00 (family) or $25.00 (individual).

                        The smallest facility surveyed is the Huntsman Aquarium-Museum
                  (10,000 square feet), and the largest is the Shippagan Marine Centre
                  (38,000 square feet). The Skidaway Island facility has the most extensive
                  grounds (680 acres), and the Woods Hole Aquarium has the least (2 acres).
                  The Skidaway Island facility and the Woods Hole Aquarium have the shortest
                  estimated average length of stay of visitors (.5 to .75 hours). Both of
                  these facilities have small display areas and collections.

                  Proposed Program for the Bangor Aquarium

                        The  Bangor   Waterworks   building   complex  provides   a special
                  opportunity for a mixed-use development focused on the Penobscot River and
                  the creation of a unique River Center. The man-made embayment, designed
                  to contain the Penobscot's diverted waters and operate the turbines in the
                  Waterworks, is conceived as the central element of the complex and the
                  location of the primary aquatic exhibits. Major naturalistic exhibits
                  concentrating on the river system from its source at Moosehead Lake to
                  the sea would display river otters, beavers, harbor seals, cormorants, a
                  Penobscot Bay tank, and a rocky shore tide pool exhibit.

                        The environment of the Penobscot River and these active outdoor

                  exhibits serve as the focus for the aquarium and for the retail and food
                  services. The exhibits will provide a delightful setting featuring diving
                  birds and harbor seals, rushing river water, and salmon fishermen.

                                                      1-2

                       The roof of the viewing galleries and Penobscot Bay tank would be
                 covered by a deck for public access, thereby providing overlooks to the
                 river and places for above-water close-up viewing of mammals and birds.

                 Attendance Projections and Pro Forma Development for the Bangor Aquarium

                       Based on a review of successful smaller and/or seasonal aquariums in
                 North America, existing tourism in the region and other related factors,
                 and the proposed program, Economics Research Associates            outlined
                 attendance projections, facility sizing, and preliminary operating budget
                 for the Bangor Aquarium.

                       We estimate an average visitation of 112,000 persons. This estimate
                 is within the range of comparable aquariums' market penetration ranges.
                 A stable year pro forma for the facility indicates a slight surplus in
                 operating revenue.

                 8494R.4
                 08/07/87

                                                      1-3

                                                Section II

                                       RESIDENT AND VISITOR MARKETS

                       Resident and visitor markets were evaluated to determine the

                 potential market support for an aquarium in Bangor.

                 RESIDENT MARKET

                       The Bangor market area was evaluated and divided into primary,
                 secondary, and tertiary market segments for analysis. The primary market
                 area encompasses persons residing within 25 miles of the proposed site.
                 The secondary market area encompasses persons residing between 25 and 50
                 miles of the proposed site. The secondary market area includes Waterville
                 and Bar Harbor on the coast. The tertiary market area encompasses persons
                 residing between 50 and 100 miles of the proposed site. The tertiary
                 market area includes Lewiston-Auburn, Augusta, and Brunswick.

                 Population

                       According to the 1980 U.S. Census, 119,416 persons resided in the
                 primary market area, 161,460 in the secondary market area, and 426,840 in
                 the tertiary market area. Population growth between 1980 and 1991 is
                 projected to be limited. The greatest growth is projected in the
                 secondary market (3.4 percent between 1980 and 1986 and 2.3 percent
                 between 1986 and 1991). Population figures are shown in Table II-1.

                 Households

                       In 1980 there were 40,214 households in the primary market area,
                 56,990 in the secondary market area, and 150,174 in the tertiary market
                 area. Between 1980 and 1991, growth in the number of households is
                 projected to be moderate, with the greatest growth occurring in the
                 secondary market (7.1 percent growth between 1980 and 1986 and 4.5 percent
                 between 1986 and 1991). Data on households is shown in Table 11-2.

                                                          Table II-1

                                                          POPULATION

                                                                                        Percent       Percent
                                               1980       1986           1991           Change        Change
                                              Census     Estimate      Projection      1980-1986     1986-1991

               Primary Market Area            119,416    121,024        121,887           1.3 %        0.7 %
                  ( 0- 25 miles)

               Secondary Market Area          161,460    166,930        170.%790          3.4          2.3
                  (25- 50 miles)

               Tertiary Market Area           426,840    441,439        451@9298          3.4          2.2
                  (50-100 miles)

               Total Market Area              707,716    729,393        743,975           3.1          2.0
                  ( 0-100 miles)

               Source: U.S. Census, Urban Decision Systems, and Economics Research Associates.

               0267A
               07/16/87

                                                              JI-2

                                                  Table 11-2

                                                  HOUSEHOLDS

                                                                             Percent      Percent
                                       1980       1986          1991         Change       Change
                                      Census     Estimate    Projection     1980-1986    -1-986-1991

           Primary Market Area          40,214    42,123        43,291        4.7 %        2.8 %
               0- 25 miles)

            econdary Market Area        56,990    61,054         63,805       7.1          4.5
             (25- 50 miles)

           Tertiary Market Area        150,174    160,703       167,767       7.0          4.4
             (50-100 miles)

           Total Market Area           247,378    263,880       274,863       6.7          4.2
               0-100 miles)

           Source: U.S. Census, Urban Decision Systems, and Economics Research Associates.

           0267A
           05/26/87

                                                       11-3

                         Average household size is decreasing in the market area; from 2.76
                  persons in 1980 to an estimated 2.67 persons in 1986, to a projected 2.61
                  persons in 1991. The greatest decrease is in the tertiary market;
                  decreasing 3.3 percent between 1980 and 1986 and 2.2 percent between 1986

                  and 1991. Household size is shown in Table 11-3.

                  Age

                         The distribution of the population by age in the Bangor market area
                  is projected to shift toward the older between 1980 and 1991. School age
                  children (6 to 17 years of age) and young adults (18 to 24 years of age)
                  are projected to decline as a percentage of the total population. The
                  greatest increase is in the 35 to 44 years of age cohort. Age group

                  distribution is shown in Table 11-4.

                         The median age of the population is projected to increase in the
                  primary, secondary and tertiary markets between 1980 and 1991. The
                  greatest increase is in the primary market area where the median age is
                  projected to increase from 28.1 years of age in 1980 to 31.5 years of age
                  in 1991. Data on median age is shown in Table 11-5.

                  Income

                         In 1980, median household income was higher in the primary market
                  area than in the secondary or tertiary market areas, and is projected to
                  remain higher through 1991. Median household income is shown in Table

                  11-6.

                         In 1980 per capita income was higher in the primary market area than
                  in the secondary market area, but lower than in the tertiary market area.
                  This relative position is projected to continue through 1991. Per capita

                  income is shown in Table 11-7.

                  VISITOR MARKET

                         The following data on state and regional tourist activity is derived
                  from the Maine Tourism Study; 1984-1985, prepared for the Maine State
                  Development Office and published in October of 1985.

                                                       11-4

                                                   Table 11-3

                                            AVERAGE HOUSEHOLD SIZE

                                                                               Percent       Percent
                                        1980       1986          1991          Change       Change
                                       Census     Estimate     Projection     1980-1986    1986-1991

           Primary Market Area          2.77       2.69          2.64          ( 2.9%)        1.9%)
               0- 25 miles)

           Secondary Market Area        2.74       2.65          2.60          ( 3.3          1.9 )
             (25- 50 miles)

           Tertiary Market Area         2.76       2.67          2.61            3.3          2.2 )
             (50-100 miles)

           Total Market Area            2.76       2.67          2.61            3.3          2.2
               0-100 miles)

           Source: U.S. Census, Urban Decision Systems, and Economics Research Associates.

           0267A
           05/26/87

                                                        11-5

                                                   Table 11-4

                                             AGE GROUP DISTRIBUTION
                                               TOTAL MARKET AREA
                                                  (0-100 miles)

                                              1980            1986               1991
                                             Census         Estimate         Projection

                  0- 5 years                  8.4 %           8.9 %              8.6 %

                  6-17 years                 20.2            18.1              18.0

                 18-24 years                 12.8            11.1                9.7

                 25-34 years                 15.5            17.0              16.7

                 35-44 years                 10.9            13.3              15.0

                 45-54 years                 10.0             9.5              10.5

                 55-64 years                   9.6            8.9                7.9

                 65+ years                   12.6            13.2              13.6

                 Source:  U.S. Census, Urban Decision Systems, and Economics Research
                          Associates.

                 0267A
                 05/26/87

                                                        11-6

                                                 Table 11-5

                                                 MEDIAN AGE

                                                               1986             1991
                                           1980 Census       Estimate        Projection

                Primary Market Area         28.1 years      30.1 years       31.5 years
                   0- 21 miles

                Secondary Market Area       31.3 years      32.7 years       33.9 years
                  25- 50 miles

                Tertiary Market Area        30.8 years      32.4 years       33.6 years
                  50-100 miles

                Source: U.S. Census, Urban Decision Systems, and Economics Research
                         Associates.

                0267A
                05/28/87

                                                      JI-7

                                                   Table 11-6

                                            MEDIAN HOUSEHOLD INCOME

                                                 1980                1986             .1991
                                                Census              Estimate         Projection

                Primary Market Area             $13,702             $19,089           $24,937
                    0- 25 miles)

                Secondary Market Area           $12,338             $17,087           $22,894
                  (25- 50 miles)

                Tertiary Market Area            $13,524             $18,710           $24,816
                  (50-100 miles)

                Source:   U.S. Census, Urban Decision Systems, and Economics Research
                0267A     Associates.
                06/03/87

                                                        11-8

                                                  Table 11-7

                                               PER CAPITA INCOME

                                                 1980              1986              1991
                                                Census            Estimate         Projection

                Primary Market Area             $ 5,567           $ 8,644           $11,507
                    0- 25 miles)

                Secondary Market Area           $ 5,210           $ 7,962           $10,508
                   (25- 50 miles)

                Tertiary Market Area            $ 5,633           $ 8,834           $11,779
                   (50-100 miles)

                Source: U.S. Census, Urban Decision Systems, and Economics Research
                          Associates.

                0267A
                06/03/87

                                                       11-9

                  State of Maine Tourism Characteristics

                        Tourism activity is very important to the State of Maine and is the
                  State's largest employer. During a one-year period ending i     'n July of
                  1985 (the most recent period for which comprehensive data is available),
                  Maine received 6.3 million visitors (quantified as person-trips) from the
                  U.S. , Canada, and abroad. Massachusetts, New York, and New Hampshire
                  residents account for one-half of the total non-resident person-trips to
                  Maine. Residents of Maine took an additional 5.1 million person-trips
                  during the same period.

                        Tourism increases in the summer months, with one half of non-
                  resident tourism occurring in June, July and August. The fall foliage
                  season (September through November) accounts for one-quarter of yearly
                  non-resident tourism. One-third of resident person-trips occur in the
                  summer, with the remainder being spread evenly over the year.

                        Shopping is the major tourism activity for non-residents, followed
                  by sightseeing. For residents, shopping and sightseeing are equally
                  important activities.

                  Downeast/Acadia Region Tourism Characteristics

                        The Downeast/Acadia Tourist Region is the second largest region,
                  economically, of    the state's eight tourism        regions. The     region
                  capitalizes on its coastal location and population center in Bangor.
                  During a one-year period ending July 1985, the Downeast/Acadia Region
                  received 1.1 million visitors. Massachusetts, New York and Atlantic
                  Maritimes' residents accounted for 40 percent of total non-resident
                  person-trips to the region. Nearly 60 percent of non-resident person-
                  trips to the Downeast/Acadia Region occurred during the peak summer
                  season. An additional 24 percent of non-resident person-trips occurred
                  during the fall foliage season. For Maine residents, 35 percent of person-
                  trips to the Downeast/Acadia Region occurred during the summer season,
                  with the balance of person-trips distributed equally through the remainder
                  of the year.

                                                     II-10

                       Forty-one percent of resident and non-resident visitors to the
                 Downeast/Acadia Region stayed in rental lodging (hotel, motel, or resort),
                 and 14 percent stayed in campgrounds.

                       Rental Lodging: Hotels/Motels/Resorts

                       There are approximately 193 hotel, motel or resort facilities in the
                 Downeast/Acadia Region, with 5,216 rooms. Within the region, 46 percent
                 of the facilities are located in or near Bar Harbor (89 facilities), while
                 23 percent are located in or near Bangor (45 facilities). However, the
                 Bar Harbor and Bangor areas each have about one-third of the available
                 rooms in the region (1,951 rooms and 2,207 rooms, respectively). Fifty-
                 five percent of the rental lodging facilities in the region are motel-type
                 facilities and 20 percent are resort cottages.

                       The average length of stay in rental lodging in the Downeast/Acadia
                 Region was 3.1 nights, as compared with 4.3 nights statewide. The average
                 number of persons per party staying in rental lodging in the region was
                 2.2 persons, compared with 2.5 persons statewide.

                       Rental lodging occupancy rates for the region are higher than for
                 the state as a whole (59 percent versus 56 percent in 1985). Occupancy
                 statistics display strong seasonality:

                                             OCCUPANCY BY MONTH
                                                    1985

                                January                           25%
                                February                          27%
                                March                             29%
                                April                             32%
                                May                               3296
                                June                              41%
                                July                              70%
                                August                            78%
                                September                         63%
                                October                           53%
                                November                          36%
                                December                          25%

                                Annual Average                    56%

                        The monthly regional data shown in the previous table indicate the
                  average occupancy rates for those facilities being open for each month.
                  In the Downeast/Acadia Region, where 33 percent of the facilities are open
                  year-round, the highest occupancy rate for 1985, 78 percent, is seen in
                  August; and the low of 25 percent is in December and January.

                        Campgrounds

                        There are approximately 39 campgrounds with 3,621 campsites located
                  in the Downeast/Acadia Region. Within the region, 72 percent of the
                  campgrounds are located in or near Ellsworth or Bangor (14 campgrounds
                  each). Bar Harbor has over half of the available campsites in the region,
                  followed by Ellsworth and Bangor, with slightly less than one-quarter

                  each.

                        The average length of stay in a campground in the Downeast/Acadia
                  Region was 3.1 nights, compared with 3.7 nights statewide. The average
                  number of persons per camping party in the region was 3.1 persons,
                  compared with 3.4 persons statewide.

                        Average occupancy rates for campgrounds in the Downeast/Acadia
                  Region are lower than for the state (40 percent versus 43 percent in
                  1985). Occupancy is highest during the months of July and August (up to
                  70 percent), but falls to less than 10 percent in the off season. Nearly
                  all the camprounds are closed from November through April.

                        Traveler Characteristics

                        There is a difference between the resident traveler and non-resident

                  traveler in the Downeast/Acadia Region. The typical resident traveler is
                  married, middle-aged, educated and in the low- to medium-income category.
                  On the other hand, the typical non-resident traveler may be either married
                  or unmarried, less educated, and in the middle-income range.

                        Resident   and   non-resident   travelers   participate    in   similar
                  activities when vacationing in the Downeast/Acadia Region. Sightseeing/
                  cultural events are most popular with resident travelers, with 28 percent

                                                      11-12

                 participating; shopping and camp ing/p icnicking are tied for second.
                 Sightseeing/cultural events are also popular with non-resident travelers,
                 with 44 percent participating. However, shopping is a close second (42
                 percent).

                       Acadia National Park

                       Acadia National Park on Mount Desert Island is one of the most

                 popular attractions in Maine. Acadia was the first National Park
                 established east of the Mississippi. Although one of the smaller National
                 Parks, Acadia is reportedly among the ten most frequently visited areas in
                 the National Park Service. Ninety percent of the Park's visitors come
                 from the New England, mid-Atlantic, South Atlantic, and North Central

                 states.

                       The park estimates that in 1986 4.1 million people visited the park.
                 To obtain this estimate the park relies on a count of traffic passing over
                 the Trenton Bridge from the mainland to Mount Desert Island. An
                 estimation of the ratio of visitors to tourists is applied to   this traffic
                 count. This ratio was developed following a visual survey       of vehicles
                 crossing the bridge in 1977. This methodology does not take    into account
                 the increased development of Mount Desert Island since 1977    or the other
                 possible destinations for tourists to the Island and may result in double
                 counting of individual visitors. Table 11-8 presents the park's estimate

                 of visitation to Acadia National Park.

                 SUMMARY

                       The Bangor market area was evaluated and divided into primary,
                 secondary, and tertiary markets for the purpose of analysis. The
                 residents of these three market areas represent potential visitors to an
                 aquarium in Bangor. The visitor market was profiled based on statistics
                 available from the Maine State Development Office. In 1985, 1.1 million
                 travelers visited the Downeast/Acadia Region. Tourism to this region is
                 highly seasonal. Sightseeing and cultural events are the most popular
                 activities of visitors to this region.

                 8494R.1                              11-13
                 08/07/87

                                                     Table 11-8

                                        VISITATION AT ACADIA NATIONAL PARK

                                                 Total                             Percent
                 Year                          Visitation                         Change

                 1",                           3,181,269

                 1978                          3,130,126                            1.61%)

                 1979                          2,883,279                            7.89%)

                 1980                          3,273,095                           13.52%

                 1981                          3,402,973                            3.97%

                 1982                          3)754,230                           10.32%

                 1983                          4,270,663                           13.76%

                 1984                          3$918,387                            8.25%)

                 1985                          3$928)594                            0.26%

                 1986                          45112@078                            4.67%

                 Average, 1977-1981            3,174,148

                 Average, 1982-1986            3,996,790                           25.92%

                 Source: Acadia Naional Park and Economics Research Associates.

                 0267A
                 07/14/87

                                                        11-14

                                                Section III

                                          COMPARABLE ATTRACTIONS

                       Economics Research Associates interviewed personnel at five existing
                  aquariums and one proposed aquarium comparable to that being considered in
                  Bangor to determine their program content, operational information, and
                  market characteristics. This information provides a basis from which
                  attendance and financial projections for the Bangor Aquarium may be made.

                  Huntsman Aquarium-Museum; St. Andrews, New Brunswick

                       The Huntsman Aquarium-Museum is part of the Huntsman Marine
                  Laboratory, a non-profit, education and research organization. The
                  laboratory's goal is to develop an integrated and successful center for
                  the pursuit of research and teaching in the marine sciences. The Huntsman
                  Marine Laboratory was founded in 1969 on a 20-acre site provided by the
                  Canadian Federal government through the Department of Fisheries and
                  Oceans. An additional 50 acres were provided by the New Brunswick
                  provincial government. The Huntsman Marine Laboratory is located on the
                  shore of the St. Croix estuary and its confluence with Passamaquoddy Bay
                  in the Quoddy region of the Bay of Fundy. The Huntsman Marine Laboratory
                  is located in a 10,000 square foot facility in addition to several

                  residential structures.

                       All of the animals exhibited at the aquarium were collected from the
                  beaches and waters of the Quoddy region. The collection includes Atlantic
                  salmon, lobster, crabs, clams, mussels, limpets, sea urchins, sea
                  cucumbers, and sand dollars. Approximately half of the exhibits are dry
                  displays. A touch pool was completed in 1986. A slide show titled

                  '
                   Quoddy Seas and Shores" was developed in 1986 also, as part of the
                  i'nterpretive program aimed at students in grades 7 through 12.

                        The Huntsman Marine Laboratory is host to students and researchers
                  year-round, while the aquarium-museum is open from Victoria Day (mid-May)
                  to the end of October. The aquarium-museum is open from 10 a.m. to 6 p.m.

                 Admission price for adults is C$3.00, for students age 6 to 18 is C$2.00,
                 and for seniors is C$2.00. Children age 5 years and under are admitted
                 free. The group admission price is C$2.00 for adults and C$1.50 for
                 students. The aquarium-museum currently does not offer memberships.

                       In fiscal year 1986-1987, 23,000 persons visited the aquarium-museum
                 in addition to 1,525 students in groups. Most visitation occurs in July
                 and August, with most student groups visiting in late May and early June.
                 Aquarium management estimates that 20 percent of total visitation is from

                 the local area and the remainder are tourists from Canada and the

                 northeast United States. The majority of student groups are from Maine.
                 The average length of stay for visitors is one to one and one-half hours.

                 Shippagan Marine Centre; Shippagan, New Brunswick

                       The Shippagan Marine Centre opened in 1982 and is owned and operated
                 by the New Brunswick Department of Fisheries. The Provincial Treasury
                 supplied C$550,000 of the C$700,000 operating cost of the Centre in 1986.
                 (The balance of the revenue was from admissions.) The Marine Centre is
                 housed in a 38,800 square foot facility on an eight acre site in
                 Shippa8an. Shippa8an is located on the northwest peninsula of New

                 Brunswick on the Gulf of St. Lawrence.

                       The Marine Centre collection includes over 3,000 specimens
                 representing 90 different species of fresh and salt water fish,
                 crustaceans and marine mammals. The Centre houses 21 large tanks and nine
                 small, holding 91,000 litres (24,000 gallons) of salt water; 50,000 litres
                 (13,000 gallons) of fresh water; and 114,000 litres (30,000 gallons) in
                 the harbor seal basin. Special exhibit themes include the Fishing
                 Industry in New Brunswick and the History of Boat Building in New

                 Brunswick.

                       The Marine Research Centre operates year-round, but the aquarium is
                 seasonal. In 1987, the Centre is open to visitors from May 3 to September
                 6. During the off-season, the Centre is open for groups with
                 reservations, Daily hours are 10 a.m. to 6 p.m. Admission to the Centre
                 is C$3.00 for adults, and C$1.50 for students 6-16 years old. Children

                 under 6 and senior citizens who are residents of New Brunswick are

                                                    111-2

                  admitted free. Because the Centre is owned by the Province, there are no
                  memberships sold.

                       In 1986, approximately 58,000 visitors toured the aquarium, of which
                  47,000 were paid admissions. Aquarium staff estimate that 60 percent of
                  visitors are from Quebec, 30 percent are from New Brunswick and the
                  Atlantic Provinces, 2 percent from Ontario, 1.5 percent from the U.S., and
                  1 percent from Europe. The estimated length of stay for visitors is one
                  to one and one-half hours. This includes an audio-visual presentation at
                  the beginning of the visit which lasts 25 minutes. Aquarium staff
                  estimate that 40 percent of total visitation occurs during July, 30
                  percent during August, and 15 percent each in May and June.

                  Maine Aquarium; Saco, Maine

                       The Maine Aquarium, located on Route I in Saco, Maine, opened in
                  September 1984. The privately owned facility is housed in a 14,000 square
                  foot building on 70 acres of land. The Maine Aquarium's orientation is

                  educational as well as entertainment.

                       The aquarium's collection includes moray eels, penguins, an octupus,
                  tropical fish, sharks, trout and spiney lobsters. Three hundred specimen
                  are housed in 25 separate tanks including a 28,000 gallon shark tank and a
                  16,000 gallon seal tank. Habitats created at the aquarium include: salt
                  marsh; Maine lake; Biddeford pool community; Atlantic nearshore; Pacific,
                  Hawaiian and Caribbean coral reef communities; and an Amazon River
                  community. There are also videotape presentations.

                       The adult admission price at the aquarium is $5.00; students ages 5
                  to 12 pay $3.50; children ages 2 to 4 pay $1.00 and children under 2 are
                  admitted free. Adult chaperones with student groups are admitted free.
                  Memberships are available for families for $40.00 and for individuals for
                  $25.00. Most of the aquarium's 3,000 memberships are family memberships.
                  Hours of operation from June through Labor Day are 9:00 a.m. to 9:00 p.m.,
                  and from September to May 31st are 9:00 a.m. to 5:00 p.m. The aquarium is
                  closed on Christmas Day. The aquarium employs 13 year-round employees and

                                                      111-3

                 an additional two to five as summer employees. In addition, the aquarium

                 has ten volunteer workers.

                       Last year, approximately 100,000 visitors toured the Maine Aquarium,
                 with 60 percent of total yearly visitation occurring in July and August.
                 The majority of aquarium visitors are from Maine and Massachusetts, with
                 additional visitors from New Hampshire. On average, visitors spend one to
                 one and one-half hours at the aquarium. School groups spend, on average,
                 two to three hours at the aquarium.

                 Marine Extension Service; Skidaway Island, Georgia

                       The Marine Extension Service, founded in 1970, is an integral part
                 of the University of Georgia, a Sea Grant University. The function of the
                 Marine Extension Service is to provide education, research, and advisory
                 services on marine-related topics to the people of Georgia. The Marine
                 Extension Center on Skidaway Island, Georgia (near Savannah) is the
                 primary marine education facility for the Maine Extension Service.

                       The Center consists of an aquarium/museum facility, lecture halls,
                 laboratories, a 54-bed dormitory, a cafeteria, a dock on the Skidaway
                 River, and five boats for marine education fieldwork and research.

                       The aquarium facility located in the Marine Extension Center is a
                 functional part of the educational program provided by the Center. Over
                 200 live animals are on exhibit representing approximately 50 species of
                 fish and invertebrates commonly found on the Georgia coast. Additional
                 exhibits in the aquarium show the historic and economic utilization of the
                 marine environment from prehistoric times to the present.

                       Admission to the aquarium is free. The aquarium is open 9:00 a.m.
                 to 4:00 p.m. on weekdays and 12:00 noon to 5:00 p.m. on weekends. The
                 aquarium is closed on major holidays. Nearly 100,000 visitors toured the
                 aquarium last year and nearly 15,000 students participated in organized
                 marine education programs conducted by University of Georgia faculty and
                 staff. Visitors not participating in a marine education program spend an
                 average of one-half hour or less in the aquarium.

                                                    111-4

                 Fisheries Aquarium; Woods Hole, Massachusetts

                       The Fisheries Aquarium at Woods Hole, Massachusetts is the only
                 aquarium in the U.S. run by the Federal Government (through the Department
                 of Commerce; National Oceanic and Atmospheric Administration; National
                 Marine Fisheries Service) . It is also the oldest aquarium in the U.S. ,
                 having been founded in 1885. The aquarium has two primary goals; to
                 educate the public, and to support research related to the commercial
                 fishing industry.

                       The Woods Hole Complex includes the Marine Biological Laboratory and
                 the Woods Hole Oceanographic Institution (both private laboratories); and
                 the Northest Fisheries Service and the Branch of Atlantic Geology of the
                 U.S, Geological Survey (both government facilities) in addition to the
                 Fisheries Aquarium. Taken together, the institutions occupy more than 50
                 buildings, use 13 research vessels and collecting boats, employ more than
                 1,000 persons, and offer instruction to approximately 500 students.

                       The aquarium's facilities are quite small; approximately 20,000
                 square feet on a two-acre site. The aquarium houses 16 salt water display
                 tanks ranging in size from 75 to 2,800 gallons, displaying 30 or more
                 species of fish. All fish in the aquarium are from the northeast coast of
                 the U. S. ,with an emphasis on commercial species. In the summer, the
                 Fisheries  Aquarium has two harbor seals borrowed from the Mystic
                 Marinelife Aquarium on display.

                       The  Fisheries Aquarium charges no admission and does not offer
                 memberships. The aquarium is open seven days a week from 10:00 a.m. to
                 4:30 p.m. during the summer and is open Monday through Friday from 9:00
                 a.m. to 4:00 p.m. during the winter months. The aquarium is closed on
                 major holidays. Educational tours of the facility are offered to school
                 groups ranging from children aged three to graduate students. The tours
                 last approximately one and one-half hours. The aquarium has four full-
                 time employees, in addition to six volunteers during the summer months.

                       Attendance at the Fisheries Aquarium is approximately 200,000
                 visitors annually, with visitation peaking in August. Tourists to

                                                     111-5

                  Nantucket and Martha's Vineyard account for 10 percent of total       aquarium
                  visitation. Visitors stay an average of one-half to three-quarters of an
                  hour in the facility. This abbreviated length of stay is due to three
                  primary factors: the aquarium is located proximate to the ferry terminal
                  linking Nantucket and Martha's Vineyard with the mainland; the aquarium
                  charges no admission; and the aquarium's collection is limited,

                  Gulf of Maine Aquarium; Portland, Maine

                        The Gulf of Maine Aquarium is proposed for development on a 2.   2 acre
                  waterfront site in Portland, Maine. From 1978 to 1982, a seasonal
                  aquarium constructed on a floating barge was operated in Portland. The
                  mini-aquarium was closed in 1982 in order for the sponsoring group to
                  devote all its resources to planning for a permanent facility.

                        Preliminary design plans call for a 27,000 square foot facility.
                  The planned exhibit sequence will take visitors through Maine's fresh and
                  salt water environments; from Mount Katahdin to the Sea.

                        Current plans call for an admission price of $5.00 for adults, $4.00
                  for students, and $3.00 for children. A 1983 study conducted by a
                  consultant to the sponsoring group projected annual attendance in the
                  range of 275,000 to 325,000 for the proposed facility. Total development
                  costs for the proposed aquarium range from $10.5 to $13.5 million.

                        Fund-raising efforts to date have secured $600,000 for the
                  development effort. Current family memberships number 750 and business
                  memberships exceed 200.

                  SUMMARY

                        Economics Research Associates interviewed personnel at five existing
                  aquariums and one proposed aquarium comparable to that being considered in
                  Bangor. General characteristics of these facilities are provided in Table
                  III-1. With the exception of the Skidaway Island, Georgia facility, all
                  the aquariums are located in New England or the Atlantic Maritime
                  Provinces of Canada. Visitation levels range from lows of 23,000 at the
                  Huntsman Aquarium-Museum and 58,000 at the Shippagan Marine Centre (both

                                                       111-6

                                                                                                            Table III-1

                                                                                      GENERAL CHARACTERISTICS OF COMPARABLE AQUARIUMS

                                                                   Huntsman Aquarium        Shippagan Marine                                      Marine Extension
                                                                          Museum;                  Centre;              Maine Aquarium;                Service                Fisheries Aquarium
                                                                    St. Andrews, NB-          Shippagan, NB                 Saco, ME             Skidaway Island, CA             Woods Dole, MA

                                  Attendance
                                    Total.                                23,000                   58,000                   100,000 1/                 100,000                        200,000
                                    Paid                                    NA                     47,000-                   8(),000                     -0-                            -0-

                                  Hours
                                    Summer                                  10-6                     10-6                      9-9                    9-4 M-F                         10-4:30
                                                                                                                                                     12-5 S, S
                                    Winter                                  NA                       NA -1/                    9-5                     9-4                             9-4 M-F
                                                                                                                                                      12-5 S, S

                                  Ticket Prices
                                    Adult                                 C$3.00                   C0.00                      $5.00                      -0-                            -0-
                                    Student                                 2.00'                    1.50                      3.50                      -0-                            -0-
                                    Child                                   Free                     Free                      1.00                      -0-                            -0-
                                    Seniors                                 2.00                     3.00   2/                 5.00                      -0-                            -0-

                                  Number of  Memberships                      NA                       NA                     3tOOO                      NA                               NA

                                  Membership Prices
                                    Family                                    NA                       NA                      $40                       NA                               NA
                                    Individual                                NA                       NA                      $25                       NA                               NA

                                  Building Area                           10,000 S.f.              38,000 s.f.              14,000 s.f.                  NA                            20,000 S.f.

                                  Site Area                               70 acres                 8 acres                  70 acres               680 acres                           2 acres

                                  Estimated Average
                                  Length of Stay                        1-1.5 hrs                1-1.5 hrs                  1-1.5 hrs                  .5 hrs                         -5--75 hrs

                                  I/ Open to groups with reservations.
                                      Admission free for seniors who are residents of New Brunswick.
                                      Estimate provided by owner of aquarium.

                                  Source: Aquariums surveyed and Economics Research Associates

                                  0267A
                                  08/05/87

                  facilities are located in remote areas and are oriented primarily     toward
                  research), to highs of 100,000 at the Maine Aquarium in Saco and the
                  Skidaway Island facility, and 200,000 at the Fisheries Aquarium at Woods
                  Hole, Massachusetts (these facilities are located in areas of heavy

                  tourist traffic).

                       The Huntsman Aquarium-Museum and the Shippagan Marine Centre are
                  open to visitors only during the summer months, while research is
                  conducted year-round. The Skidaway Island facility and the Woods Hole
                  Aquarium do not charge admission. The Maine Aquarium in Saco, Maine
                  charges an adult admission price of $5.00 and offers memberships for
                  $40.00 (family) or $25.00 (individual).

                        The smallest facility surveyed is the Huntsman Aquarium-Museum
                  (10,000 square feet), and the largest is the Shippagan Marine Centre
                  (38,000 square feet). The Skidaway Island facility has the most extensive
                  grounds (680 acres), and the Woods Hole Aquarium has the least (2 acres).
                  The Skidaway Island facility and the Woods Hole Aquarium have the shortest
                  estimated average length of stay of visitors (.5 to .75 hours). Both of
                  these facilities have small display areas and collections.

                  8494R.1
                  07/07/87

                                                  Section IV

                                  PROPOSED PROGRAM FOR THE BANGOR AQUARIUM

                        The Bangor Waterworks       building complex     provides    a   special
                  opportunity for a mixed-use development focused on the Penobscot River and
                  the creation of a unique River Center.

                        The buildings which comprise the Waterworks are for the most part
                  single story brick structures, most of which enclose high spaces with open
                  wood framed roof trusses. These structures surround the forebay, an
                  embayment designed to contain the Penobscot's diverted waters and operate
                  the turbines in the Waterworks. This man-made embayment is conceived as
                  the central element of the complex and the location of the primary aquatic
                  exhibits.   The embayment or forebay, would be reinforced and,               if
                  necessary, reconstructed. The public galleries would be built within the
                  structure of the forebay with viewing windows located continually along
                  the forebay edge. Within the forebay, major outdoor naturalistic exhibits
                  concentrating on the river system from its source at Moosehead Lake to the
                  sea would display river otters, beavers, harbor seals, cormorants, a
                  Penobscot Bay tank (interior space), and a rocky shore tide pool exhibit.
                  The forebay would become a miniaturized piece of the river and bay. With
                  minimum cost, the forebay could provide a setting for the major large

                  scale exhibits.

                        The roof of the viewing galleries and Penobscot Bay tank would be
                  covered by a deck for public access thereby providing overlooks to the
                  river and places for above-water close-up viewing of the mammals and

                  birds.

                        New construction within the forebay would provide 10,000 square feet
                  of interior public gallery space with viewing into approximately 14,000
                  square feet of natural habitats. Within the gallery, the following

                  exhibits are envisioned:

                        0    Introduction to the Penobscot River system;

                        0    The River's Source;

                        0   White water tank;

                                                         IV-1

                       0   Penobscot River Room - River view and jewel tanks;

                       0   River Otters (exterior habitat exhibit);

                       0   Beavers (exterior habitat exhibit);

                       0   Atlantic Salmon;

                       0   The Art of Fishing;

                       0   Harbor Seals (exterior habitat exhibit);

                       0   Diving Birds (exterior habitat exhibit);

                       0   Penobscot Bay Tank.

                       Exhibits on the upper level deck areas would deal directly with
                 the river and bay habitats presented. A boardwalk could extend this deck
                 area out into the tidepool exhibits and allow both children and adults an
                 opportunity to inspect the rock crevices for crabs, mussels, starfish and
                 sea urchins. Exhibits on boat-building, the Penobscot Indians, lumbering
                 and other river topics could create interest and activity in the deck

                 area.

                       The entrance to the Waterworks would serve as the entrance for the

                 aquarium experience with views out to the embayment, to the otters and
                 seals and the Penobscot River beyond. Adjacent to the entrance, a 150-
                 seat auditorium and a changing exhibit gallery would be immediately
                 accessible from the lobby at the upper level. Another portion of the
                 Waterworks containing the majority of the original turbine equipment could
                 present an exhibit on the building's original use and man's efforts to

                 control the river.

                       A gift shop, bookstore, snack bar, and tackle shop are also
                 proposed. The snack bar would open directly onto the deck area, allowing
                 outside dining during warm weather. In addition, space would be available
                 in the    remaining structures    for possible restaurant and retail
                 development. The addition of a structure at the north end of the forebay
                 would enclose the outdoor exhibit space and provide a structure for
                 15,000-20,000 square feet of retail space.

                                                      IV-2

                       The space program outlined on Table IV-1 is organized by major use.
                 These uses are indicated on the Waterworks plan shown in Figure IV-1 and
                 the concept plan shown in Figure IV-2. A cross-section of the Waterworks
                 through the embayment is shown in Figure IV-3.

                 Project Capital Costs

                       The existence of the forebay provides a unique opportunity. The new
                 exhibit gallery within the space of the forebay is conceived as a single
                 concrete construction with large viewing windows into the underwater
                 exhibits, the roof covered with a wood deck platform. The forebay walls
                 provide a form for new walls and habitat construction. The result is a
                 series of large-scale habitat exhibits seen both above and below the water

                 surface at a minimum cost.

                       The existing brick structures house dry exhibits and non-aquarium
                 uses appropriate for these spaces.

                       The estimate of capital costs provided in Table IV-2, is based on
                 the experience at other similar facilities and is for budget purposes
                 only. Preliminary review of the existing structures has been completed by
                 Webster, Baldwin, Rohman, Day, Czarniecki, P.A., Architects and Engineers
                 of Bangor, Maine. The cost of restoration is presented in their report of
                 July 27, 1987. A developed preliminary design will generate a more
                 definitive estimate of probable cost.

                 Development Considerations

                       The estimated capital costs discussed in the preceeding section
                 indicate that the Waterworks project could be developed as a mixed-use
                 project, which could include both the aquarium use as well as restaurant,
                 retail and/or office uses. The development could be phased to include the
                 aquarium facilities and associated commercial uses with new construction
                 (retail/office) coming later in the process. A non profit entity could
                 develop the project and then master lease the retail space to a retail
                 developer, or, some of the office space might be leased to associated
                 users such as the University Sea Grant program or others. A major

                                                       IV-3

                                                   Table IV-1

                                                   SPACE PROGRAM

                                                                 Building              New
                                                                 Reuse             Construction

                          Aquarium (Interior Areas)

                          *1. Lobby                              2,400 s.f.
                          *2. Auditorium (150 seats)             1,300
                          *3. Changing Exhibit Area              1,000
                          A4. Administration/Education           2,400
                          *5. Exhibit Galleries/Exhibits                             14,000 l/
                          *6. Service/Mechanical                 6,000
                          Total                                  13,100 s.f.         14,000 s.f.

                          Aquarium (Exterior Exhibits)

                          B 1. River Otter Exhibit                                  ( 3,500)
                          B 2. Beaver Exhibit                                       ( 1,500)
                          B 3. Harbor Seal Exhibit                                  ( 6,500)
                          B 4. Cormorant Exhibit                                    ( 1,000)
                          B 5. Tide Pools                                           ( 2,500)
                          Total                                                     (15,000)

                          Gift Shops

                          C 1. Souvenir Shop/Storage             1,500
                          C 2. Book Shop/Storage                 1,500
                          C 3. Tackle Shop/Storage               1,000
                          Total                                  4,000

                          D.  Snack Bar/Kitchen                  2,000

                          E.  Restaurant/Kitchen                 5,400

                          F.  Retail                             5,000

                          G.  Retail (potential)                              10,000-15,000

                          TOTAL (Interior Areas)                 29,500 s.f. 24,000-29,000 s.f.

                          TOTAL (Exterior Exhibits)                              (15,000) s.f.

                          l/ Includes Penobscot Bay tank (1,500 s.f.)

                          Source: Cambridge Seven Associates.

                    8494R.3
                    08/05/87

                                                         IV-4

                                                                              STATE       STREET

                                                                       MAINE    CENTRAL    RAILROAD

                                                                                                                                                     1-4-1 _14 i
                       ....... ......
                            ..........     iT  F1   I_M                        U11 lij

                                                                                                                     Cl C2 C3

                                                                                                                                                            FiLTER HOUS

                                                                    OLD PUMPHOUSE
                                                                                                                   D A6         (lower)

                                                                                     Al
                                                                      A2                             A3
                                                                                                                               A5

                                                                                                                            REBAY

                                                                                                                                         4F

                                           NEW PUMPHO SE
                                                                                              'KA
                                                                                                         Cupper)
                                                                    A5

                                                                                                                         B

                                                                                                    B 2,1
                                                                                   A5                                      B5%
                                                                                                           FOREBAY
                                                                         WHEELHOUSE  r                     B3
                                                                E
                                                                                         Bl                     go*
                                                                                                      lop
                                                                        2
                                                              77 7A,7

                                                                                                                            Ficjure IV-2

                                                                                                                WATERWORKS CONCEPT PLAN

                                                                                                                                              Tackle Shop               Gift Shop

                                                                                                                                                                               (z

                                       Canoe Club                                                                        Changing
                                                                                                           I Lobby, Exhl
                                                                                                               7-@ioo
                                                                                                                                                                                  Snack Bar                    Bo
                                                                 Auditorium
                                                                                                                                          L

                                                     Waterworks xhlbit

                                                                                                                             Diving Birds
                                                                                                                                                    ..........
                                                                                                                                                                                                 S         tall

                                                                                                                                                                 noo

                                                                                                                                                  .... ......

                                                                                                   Pezr-
                                                                                                                                                      River   View
                                                                                         lei

                                                                         -Ap
                                                        Resta an
                                                                                         L
                                                                                                       Fly
                                                                                                       A                   Ll-k---)P-y LEVEL

                                                                                                                                                                                   PATA

                                                                                                        Figure IV-3

                                                                             WATERWORKS CROSS-SECTION THROUGH EMBAYMENT

                                                                                                   Waterworks

                                                                                                           non

                                                                                      Viewing Dock

                                                                                                                                  01

          Penobscot River

        0%                                  Outdoor Habitat Exhibits            Indoor Gallery Exhibits

                                                                 Table IV-2

                                                         ESTIMATE OF CAPITAL COST

                 Interior Aquarium Construction
                  and Exhibits                                       Range of Cost

                 Building Re-Use (Al-4, A6, C, D)                1,146,000 - $1,432,500
                   (19,100 SF x $60-75 per SF)

                 Exterior Exhibits (B)                         $ 2,250,000 - $3,000,000
                   (15,000 SF X $150-$200 per SF)

                 New Gallery Construction (A5)                 $ 2,800,000 - $3,500,000
                   (14,000 SF x t200-$250 per SF)

                 Exterior Deck and Landscape Work                       $500,000

                 TOTAL AQUARIUM BUDGET                                                         $ 6,696,000     8,432,500

        co

                 Mixed-Uses

                 Building Re-Use (E, F)                        $   416,000 -     624,000
                   (10,400 SF x $40-t6O)

                 New Construction (G)                          $ 1,200,000 -   1,800,000
                   (10,000-15,000 SF x t120)

                 TOTAL MIXED-USES                                                              t 1,616,000   $ 2,424,000
                 TOTAL RESTORATION -1/                                                                 $ 1,000,000

                 TOTAL PROJECT BUDGET ESTIMATE                                                $ 9$312,000 - $11,856,500

                 J/ From Webster, Baldwin, Rohman, Day, and Czarniecki report, July 27, 1987.

                 Source: Economics Research Associates; Cambridge Seven Associates; and Webster, Baldwin, Rohman,
                         Day, and Czarniecki as noted for restoration estimate.

                 0267A
                 08/10/87

                  retailer with an outdoor line of goods would also be a natural joint user
                  for the property. The specifics of the mixed-use approach would need to
                  be worked out in detail but should prove workable.

                  8494R.3
                  08/07/87

                                                     IV-9

                                                  Section V

                                   ATTENDANCE PROJECTIONS AND PRO FORMA
                                    DEVELOPMENT FOR THE BANGOR AQUARIUM

                        Based on a review of successful smaller and/or seasonal aquariums in
                  North America, existing tourism in the region and other related factors    ,
                  and the proposed program as described in Section IV, Economics Research
                  Associates outlines the following attendance projections, facility sizing,
                  and preliminary operating budget for the Bangor Aquarium.

                  Attendance Projections

                        As in any work of this kind, a number of assumptions have been made
                  about the operation of the proposed Bangor Aquarium. It is important to
                  recognize that projections of potential attendance are predicated on the
                  following assumptions:

                        0   The design of the new facility and its exhibits will serve to
                            create a high quality, stimulating attraction with broad-based
                            audience appeal and a distinctive image.

                        0   The aquarium will be a significant attraction; that is, it will
                            be large and contain many exhibits.

                        0   The facility will be competently and effectively managed.

                        0   An aggressive promotional campaign will be developed and
                            implemented.

                        0   The aquarium will be open to the public on a year-round basis.

                        0   There will be no physical constraints to impede visitors to the
                            facility.

                        Attendance projections    for the proposed Bangor Aquarium are
                  summarized by the data in Table V-1. A stable year is defined as a year
                  in which the Bangor Aquarium is fully operating with no major events or
                  obstructions affecting attendance. The first and second years of
                  operation are not considered stable years and may have higher attendance
                  due to the aquarium's status as a new facility.

                                                      V-1

                                                      Table V-1

                                         STABLE YEAR  ATTENDANCE PROJECTIONS

                                             1991
                                         Population                           Projected Stable
                                         Projection       Capture Ratel/      Year Attendance

                 Primary Market          121,887            .20 - .30          24,377- 36,566

                 Secondary Market        170,790            .10 - .15          17,079- 25,619

                 Tertiary Market         451,298            .03 - .05          13,539- 22,565

                 Total Resident Market                                         54,995- 84,750

                 Tourist Market        1,100,000 2/         .03 - .05          33,000- 55,000

                 Total Projected
                   Attendance Range                                            87,995-139,750

                 Attendance Range
                   Average                                                          113,873

                 Planning Estimate                                                  114,000

                 I/   Market area   capture rates based on experience of other aquarium
                      attractions and competitive position of the aquarium in relation to
                      other visitor attractions in the Bangor area.

                 2/   Range   dependent   upon   program    content,   hours   of   operation,
                      membership program, marketing, and other related factors.         Assumes
                      adequate parking     and  transportation access,     and   $4.00    adult
                      admission.

                 3/   Estimate based on 1985 estimate of non-resident tourism levels in
                      the Downeast/Acadia Region, as described in Section II of this
                      report. Resident tourism would add another 1.2 million visitors.

                 Source: Economics Research Associates

                 0267A
                 08/05/87

                                                          V-2

                       Economics Research Associates projects annual attendance of 87,995
                  to 139,750 visitors for the proposed facility. Using 1991 population
                  projections, Economics Research Associates estimated that the facility
                  will achieve a penetration rate of 20 to 30 percent of the primary market,
                  10 to 15 percent of the secondary market, and 3 to 5 percent of the
                  tertiary market. Adding these markets together results in an estimated
                  attendance range of 54,995 to 84,750 from the total resident market. An
                  additional 33,000 to 55,000 may be expected from the tourist market. For
                  the purposes of this analysis, Economics Research Associates used a
                  planning estimate of 114,000 total visitors, the rounded average of the
                  projected attendance range.

                  Facility Sizing

                       The information presented in Table V-2 utilizes the attendance
                  projections to estimate the size of the facility. In a stable year, 50 to
                  55 percent of the total visitation should occur during the peak months of
                  July and August, Using the planning estimate of 114,000 visitors, this
                  results in an attendance range of 57,000 to 62,700 people in these two
                  months. Weekly attendance during the two-month peak period would average
                  6,436 to 7,079 visitors. Average high day counts (most likely weekend
                  days) during this period are projected at 1,287 to 1,416 people.

                       Assuming an average length of stay of two hours, peak accumulations
                  of visitors within the Bangor Aquarium are estimated at 386 to 425 people.
                  Sizing estimates for the facility are shown based on the peak visitation
                  within the facility. If 30 square feet of exhibit space were required for
                  each visitor in the facility, the exhibit area would measure 11,580 to
                  12,750 square feet. If 40 square feet of exhibit space were required, the
                  exhibit area would measure 15,440 to 17,000 square feet, At a 1   *5 rati 0
                  of exhibit space to support space (administration and education) the total
                  facility would measure 17,370 to 25,500 square feet. At a 2.0 ratio, the
                  total facility would measure 23,160 to 34,000 square feet.

                        Parking requirements    also are    a function of peak visitor
                  accumulations in the facility on a high day of visitation. Assuming 95
                  percent of the visitors arrive by automobile at an average of 2.5 visitors

                                                      V-3

                                                   Table V-2

                                        STABLE YEAR AVERAGE VISITATION

                Annual Visitation Estimate                       114,000 visitors

                Peak Two Months (50-55%)                          57,000-62,700 visitors

                Average Weekly Attendance
                   During Peak Two Months
                   (8-857 weeks)                                   6,436- 7,079 visitors

                Average High Day Attendance
                   During Peak Two Months
                   (20% of weekly average)                         1,287- 1,416 visitors

                Peak In-facility Attendance
                   (30% of average high day) 2/                      386-    425 visitors
                Parking Requirements.2/                              147-    162 cars

                Sizing of Exhibit Area
                Minimum (30 sq.ft. per peak visitation)           11,580-12,750  sq.ft.
                Maximum (40 sq.ft. per peak visitation)           15,440-17,000  sq.ft.

                Total Size (1-5 to 2.0 of Exhibit Area)
                Minimum Size: 1.5 ratio                           17,370-19,125  sq.ft.
                               2.0 ratio                          23,160-25,500  sq.ft.
                Maximum Size:  1.5 ratio                          23,160-25,550  sq.ft.
                               2.0 ratio                          30,880-34,000  sq.ft.

                l/   Typically a weekend  day or holiday.

                2/   Assumes two-hour length of stay.

                3/   Assumes 95% of visitors arrive at destination by auto on average
                     high day in summer months.         During school visitation periods,
                     mode-split will increase to account for arrival by school buses.
                     2.5 persons per vehicle are assumed for recreation trips.        A longer
                     average length of stay at the facility could increase parking
                     demand. A higher mode-split could decrease parking demand.

                Source: Economics Research Associates

                0267A
                07/16/87

                                                         V-4

                  per car, the average high day during peak season would produce a peak
                  parking accumulation of 147 to 162 cars. These calculations are also

                  shown in Table V-2.

                  Operating Characteristics

                       Some assumptions regarding the Bangor Aquarium were made after
                  reviewing the very preliminary program described above. This information
                  was used to estimate expenses and revenues for the facility. First,
                  Economics Research Associates assumed winter operating hours of 9:00 a.m.
                  to 5:00 p.m. and summer hours of 9:00 a.m. to 7:00 p.m. The later summer
                  hours allow the facility to capitalize on the warmer weather, beautiful
                  view, and increases in summer visitation. Summer hours run from Memorial
                  Day through Labor Day.

                       Also, an adult ticket price of $4.00 was assumed. At the comparable
                  aquariums, children's prices generally are approximately 60 percent of
                  adult costs. Economics Research Associates, therefore, used 60 percent of
                  adult ticket price to determine children's entrance fees. It is estimated
                  that the average visitor would spend two hours in the proposed aquarium.

                       Achievable Operating Revenues

                       The range of operating revenues is dependent on the number of
                  visitors. The planning estimate of 114,000 visitors per year was used,
                  with results shown in Table V-3. Using a $4.00 adult admission and $2.50
                  admission for children (and taking into account free and other admissions
                  factors), Economics Research Associates r :timates that admissions revenue
                  will approximate $348,840. It is projected that ten percent of the
                  facility's attendance will be free or group attendance. Fifty-four
                  percent of the facility's attendance will be adults, and the remaining 36
                  percent will be children, yielding a per capita admission of $3.06. This
                  was used to derive the $348,840 figure for annual revenue from admissions.
                  With a membership level of approximately 3,000 people at $30 a year, ERA
                  estimates membership revenue at $90,000. Retail revenues are estimated at
                  $2.00 per visitor. The Other Revenue category is estimated at $50,000,
                  and would include investment earnings, private grants and donations,
                  potential event rental income, and other revenues. Total revenues equal
                  approximately $716,840.
                                                      V-5

                                                       Table V-3

                                      SUMMARY OF ANNUAL OPERATING SURPLUS BASED
                                    ON STABLE YEAR AVERAGE ATTENDANCE PROJECTIONS

                                                                           Average
                                                                         Stable Year

                    PROJECTED ATTENDANCE                                    114,000

                    REVENUES
                      Admissions                                         $  348$840
                      Membership                                             90$000
                      Retail Sales 3/                                       228,000
                      Other A/                                               50$000

                         TOTAL REVENUES                                  $  716,840

                    EXPENSES
                      Exhibit Development & Display                         199$500
                      Education & Research                                    -0-
                      Facilitiesl/                                          228$000
                      Administration Accounting/Marketing                   1719000
                      Retail Sales 9@                                        91,200

                         TOTAL EXPENSES                                     689,700

                    OPERATING SURPLUS                                    $   27,140

                     l/ Admission is $4.00 for adults, and $2.50 for     children; assuming that
                          of the total visitation:  10% pay $0.00 Admission
                                                    54% pay $4.00 Admission
                                                    36% pay $2.50 Admission

                                                    - --------------------
                                                    Per Capita = $3.06 Admission

                          3,000 members at $30 per  membership.
                     3/   0-00 sales per visitor,   at the aquarium shop only.
                          Includes investment earnings, private grants & donations, potential
                          event rental income, and other miscellaneous revenues. Does not
                          include rental income from mixed-use development, which could be
                          significant.
                     5/   $1.75 per visitor.
                          Assumed to be self-supporting, with income from and relationships
                          to other educational and research institutions. Typically $1.00
                          to t2-00 per visitor.
                     7/   t2.00 per visitor.
                          $1.50 per visitor.
                          40 percent of $2.00 sales per visitor = $.80 per visitor.

                    Source:   Economics Research Associates.

                    0267A
                    07/16/87                           V-6

                       Achievable Operating Costs

                       Operating Costs also were estimated on a per capita basis, ranging
                 between $1.50 per visitor for administration/accounting/marketing, to
                 $2.00 per visitor for facilities costs. Retail sales expenses are
                 estimated at 40 percent of sales revenue, or $.80 per visitor. Using this
                 methodology, total expenses are estimated at $689,700. It should be noted
                 that marketing costs for the opening year will be higher than in a stable
                 year of operation, as the Bangor Aquarium will be preparing initial
                 announcements and positioning itself within the market. These costs,
                 however, are likely to be offset by higher attendance revenues.

                       With these revenues and expense projections, the Bangor Aquarium
                 would achieve an annual operating surplus of $27,140. At this point in
                 the feasibility analysis, it appears that the proposed aquarium could draw
                 sufficient visitation to achieve adequate operating revenues in a stable

                 year.

                 Summary

                       We estimate an average visitation of 114,000. This estimate is
                 within the range of comparable aquariums' market penetration ranges.
                 A stable year pro forma for the facility indicates a slight surplus in
                 operating revenue.

                 8494R.2
                 07/16/87

                                                     V-7

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