Market and financial feasibility analysis for a proposed aquarium in Bangor, Maine

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

A&
QL
79
.M22
B36
1987

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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

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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

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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

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).

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

NEW PUMPHO SE
'KA
Cupper)
A5

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

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

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

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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