Feasibility: What to assess?

If you are considering the feasibility of hosting an event, you will need to
assess a number of factors including: (more details below)

 The risks to the event organisers, participants and spectators

 Ability to find an appropriate date(s) and make bookings
 Sufficient funding to conduct the event to meet people's expectations
 The extent of need/support for the event
 Ability to obtain enough paid or unpaid helpers to stage the event
 The proposed venue has sufficient capacity and facilities
 Whether there are any environmental concerns

Risks feasibility

The staging of events has risks for the organisers that should be analysed and
understood. The organisers need to have a relative degree of confidence that:

 The event will not result in a financial loss

 The event is organised sufficiently well that all parties are satisfied
 The organisation's mission will be enhanced as a result of staging the event
 The risk of injury is minimised as far as possible
 There are contingency plans to ensure the safety and well-being of all participants
 The venue and equipment will not suffer unexpected damage or loss
 The reputation of all parties (including the sponsor if one exists) as event organisers remains in
tact

(See more about risks associated with events)

Time feasibility

There are a number of crucial factors that determine whether there is sufficient time to make all the
necessary plans and arrangements to stage a special event. In particular, the two most important
factors are:

 the ability to book a venue; and

 the necessity to give participants an appropriate length of notice

Venues, whether they are ovals, sports centers, theatres, pools or other types of facility, must be booked
months in advance. The most popular venues may be booked more than one year in advance. This has a
direct bearing on the feasibility of staging an event. It is not possible to organise an event unless the
hosting organisation has a venue booked. The time needed to plan and organise the event must be
sufficient to ensure that a venue can be booked.
The second factor is having sufficient time to promote the event and ensure that competitors are able to
attend. Imagine staging an event and finding that a very few competitors were able to attend. If insufficient
notice is given to competitors (and officials) they may be unable to book air flights or arrange for leave.
Furthermore they may NOT attend because they have other engagements that they cannot change or
simply because they have had not time to prepare for the event. There needs to be sufficient planning
time to enable the event date to be inserted on to a great many event calendars. This is especially so
when there is a likelihood of competitors traveling large distances to attend (even from overseas).

The sheer number of tasks to be performed when organising an event also suggest that would-be
organisers should look very closely at the time allowed to complete such tasks.

Funding feasibility

The feasibility study needs to be able to predict the financial outcome of staging an event to a reasonable
degree of accuracy. This entails developing a budget where all expected revenues and all known costs
are listed. It is most important that would-be organisers exercise a high degree of realism when estimating
possible revenues. Furthermore, it is vital to ensure that all costs are included. Two typical situations can
spell disaster:

1. The event goes ahead despite the loss of a major source of income i.e. sponsorship is not as
much as planned, a funding submission to government fails or only half as many participants
enter
2. An unexpected cost arises but it is too late to cancel or change the event i.e. venue costs
escalate, errors are made in calculating the cost of officials, or extra equipment has to bought at
the last moment

History shows numerous organisations large and small that have run into financial difficulty and even
bankruptcy as a result of staging an event. A general rule for running events is that they must not run at a
loss except in special and planned circumstances. Therefore it would be prudent to ensure the initial
budgeting processes are accurate and to aim for substantial profit.

See also

Note: For both the links below you must click on BACK button on your browser toolbar to come
back to this page.

 Event revenues
 Event costs

Support feasibility

The feasibility study must gauge whether there is support for the event from within the organisation. This
is vital as an event is generally work and many helpers must be found. Organisational meetings and
numerous one-to-one consultations will usually provide evidence whether support exists.
Events often need support from outside the hosting organisation if they are to be successful. Some of the
reasons to contact and consult other organisations include:

 To estimate the amount of interest in participating

 To seek assistance with equipment lending
 To share facilities and venues
 To seek sponsorship or funding

If the support that an event needs for participants, officials, helpers, sponsors and other interested parties
is not forthcoming then there must be considerable doubt about the feasibility of this organisation to stage
this event at this time.

Staffing feasibility

The human resources required to plan, organise and stage an event includes everyone from the Event
Director down to volunteers who serve at the food stall. It is necessary to assess whether the organisation
has or is likely to have sufficient personnel for all event management tasks. If no-one is willing to offer
themselves as a event director or there is no-one with appropriate experience who is affordable, then it
must be assumed that the organisation is unlikely to be successful at staging the event. Furthermore, at
the feasibility assessment stage, it is important to count, analyse and understand the myriad of tasks
required and to determine whether there is sufficient number of available personnel. Provided there is
sufficient time, inexperienced personnel can be trained.

Venue and Equipment Feasibility

Those are responsible for assessing the feasibility of an event must consider whether there is access to a
suitable venue. The venue should be equal to or better than the standard expected by all participants and
other stakeholders. There are dangers for the organisation and sport/recreation activity if the venue is
substandard. Therefore a lack of a suitable venue has a major effect on event feasibility.

Some categories of equipment such as personal sports apparatus are the responsibility of the competitor.
Other types of equipment such as scoreboards, lighting and timing equipment are the responsibility of the
organiser. If the organisation does not own sufficient equipment to stage an event it can be bought,
borrowed or hired provided there is time and funds available. There may be a feasibility problem if
sufficient equipment does not exist locally and it is too difficult or expensive to transport equipment from
other places.

Environmental Management

The staging of events generally has some environmental impact. This may range from traffic congestion
and parking problems to damage sustained by the environment. The following are some examples of the
environmental impact of an event:

 Damage by cars in an off-road area

  Noise pollution
 Traffic congestion
 Sanitary problems
 Danger to fauna and flora
 Water pollution e.g. power boat racing

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Categories of Event Income

Government Government grants to assist with the running of events are not easy to
Grants obtain. To be successful, applicant organisations need to demonstrate that
the event has strategic regional importance. For example it may increase
overseas tourists to the region.

Sponsorship Despite the prevalence of event sponsorship in the sport and recreation
marketplace is increasing, many organisations have great difficulty in
achieving a significant amount of sponsorship. Competition between sport
and recreation organisations for sponsorship is intense. Organisations need to
be very professional in their approach to sponsorship and to be able to offer
sponsoring companies outstanding value in promotional services. Event
Directors need to exercise some realism and caution in relying to heavily on
sponsorship.

Merchandising The term merchandising applies to the sale of a range of products that may
Sales be strongly identified with the event or the organisation hosting the event. A
common example of merchandising is the production and sale of T-shirts,
polo shirts, caps and other forms of clothing that are screen printed or
embroidered with a design or trademark of the event. Participants tend to
purchase such articles for their commemorative value. Other typical forms of
merchandise include glassware, pens, dish cloths, drink bottles and badges.
Merchandising may be a form of income suitable for events that have larger
numbers of either players or participants.

Participant Fees The charging of fees to participate in the event is perhaps the most common
form of event revenue.

Sport and recreation events are a service provided and it is reasonable to

suggest therefore that all basic costs of the event should be covered by
participant fees. These "basics" include the hire of the venue, provision of
appropriate equipment and the administration of the event.

Sponsorship and government funding, if it can be achieved, allows the

 organisation of the event to go beyond the basics. The event budget should
be set so that if sponsorship and/or government funding is not forthcoming
the event does not have to be canceled.

Raffles It is common to find that recreation organisations employ "on-the-day"

fundraising strategies. The most common example is the raffle and a small
amount of income can be achieved this way. Whereas it is difficult to
achieve cash sponsorships, it is easier to obtain goods from sponsors which
can be raffled.

Event Directors should identify and research legislation in their own

state/nation that pertains to raffles and other similar forms of fundraising.
Raffles are often regulated by governments because of the potential for
fraud and misrepresentation.

Spectator Fees In some cases, events are sufficiently popular and entertaining to attract
paying spectators. However it can be difficult to obtain money from
spectators in circumstances where there no restriction of access(for example
an outdoor event with no perimeter fence). If this is the case it may be
better to make off-street parking for a fee.

Direct Costs

Direct costs are those costs that are easy to identify and measure as belonging to the event. The cost
of trophies and medals is a typical example.

Categories of Event Costs (Direct)

Travel and Costs associated with officials needed to run the event may have to be borne by
Accommodation the event organisers. Event participants are generally responsible for their own
travel and accommodation costs. In minor or local events travel and
accommodation costs are unlikely.

Trophies, Awards The cost of medals, trophies and other awards requires detailed knowledge
about the number of competitors, the categories of divisions of the competition
and the format of the competition.

Salaries Cost of salaries directly attributable to the event e.g. event manager, event
staff

Telephones The cost of telephones can only be directly attributed to the event, if the phone
is dedicated to a person who works on the event full-time. Otherwise the
 phone(s) would be treated as an indirect cost.

Stationery Special event stationery may be printed

Medical Fees Events require persons with at least First Aid training to be in attendance. Larger
events may also warrant the employment of a doctor and physiotherapists.

Venue Hire A critically important aspect of the budget. Information about the probable cost
of the venue needs to be obtained as early as possible. Beware that there some
hidden costs such as security and supervision costs, and heating and lighting
costs.

Insurance Additional insurance can be taken out to cover risks of injury and/or financial
losses associated with events.

Printing Event programmes, posters, fliers and other promotional documents may need to
be printed - especially where quality and colour is required.

Promotion Expenditure on promotion may be considerable where a significant proportion of

the event revenue is likely to be earned through spectators. Promotion covers
items such as advertising, giveaways, costs associated with promotional events
and sponsors' signage.

Equipment Hire Includes equipment directly used by participants in the event and also any
equipment used by the event management staff including sound systems,
computers, mobile phones, two way radios, etc.

Transport Includes costs of transporting equipment and hire of buses.

Volunteers Event volunteers will likely need training and some costs may be incurred in this
regard. Other volunteer costs might include food and clothing.

Indirect Costs

Indirect costs are costs that cannot be directly attributed to the event. The staging of the event
increases these types of costs but the increase cannot be measured accurately. Instead, the amount of
indirect cost attributable to the event is estimated.

Categories of Event Costs (Indirect)

Salaries Cost of salaries of organisation staff that assist with the event. This indirect cost
could be allocated on the basis of how much time organisation staff spend on the
event.

Office Expenses Office expenses include cost of phones, photocopiers, computers, printers,
postage, stationery and office rent that cannot be directly costed to the event.
An estimate has to be made of what proportion of these costs are charged to the
 event as indirect costs.

Facility Some proportion of the cost of facility maintenance should be allocated to the
Maintenance event

Electricity In most cases the amount of electricity used by an event can only be estimated
and therefore an indirect cost.

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Direct Costs

Direct costs are those costs that are easy to identify and measure as belonging to the event. The cost
of trophies and medals is a typical example.

Categories of Event Costs (Direct)

Travel and Costs associated with officials needed to run the event may have to be borne by
Accommodation the event organisers. Event participants are generally responsible for their own
travel and accommodation costs. In minor or local events travel and
accommodation costs are unlikely.

Trophies, Awards The cost of medals, trophies and other awards requires detailed knowledge
about the number of competitors, the categories of divisions of the competition
and the format of the competition.

Salaries Cost of salaries directly attributable to the event e.g. event manager, event
staff

Telephones The cost of telephones can only be directly attributed to the event, if the phone
is dedicated to a person who works on the event full-time. Otherwise the
phone(s) would be treated as an indirect cost.

Stationery Special event stationery may be printed

Medical Fees Events require persons with at least First Aid training to be in attendance. Larger
events may also warrant the employment of a doctor and physiotherapists.

Venue Hire A critically important aspect of the budget. Information about the probable cost
of the venue needs to be obtained as early as possible. Beware that there some
hidden costs such as security and supervision costs, and heating and lighting
costs.

Insurance Additional insurance can be taken out to cover risks of injury and/or financial
losses associated with events.

Printing Event programmes, posters, fliers and other promotional documents may need to
be printed - especially where quality and colour is required.
Promotion Expenditure on promotion may be considerable where a significant proportion of
the event revenue is likely to be earned through spectators. Promotion covers
items such as advertising, giveaways, costs associated with promotional events
and sponsors' signage.

Equipment Hire Includes equipment directly used by participants in the event and also any
equipment used by the event management staff including sound systems,
computers, mobile phones, two way radios, etc.

Transport Includes costs of transporting equipment and hire of buses.

Volunteers Event volunteers will likely need training and some costs may be incurred in this
regard. Other volunteer costs might include food and clothing.

Indirect Costs

Indirect costs are costs that cannot be directly attributed to the event. The staging of the event
increases these types of costs but the increase cannot be measured accurately. Instead, the amount of
indirect cost attributable to the event is estimated.

Categories of Event Costs (Indirect)

Salaries Cost of salaries of organisation staff that assist with the event. This indirect cost
could be allocated on the basis of how much time organisation staff spend on the
event.

Office Expenses Office expenses include cost of phones, photocopiers, computers, printers,
postage, stationery and office rent that cannot be directly costed to the event.
An estimate has to be made of what proportion of these costs are charged to the
event as indirect costs.

Facility Some proportion of the cost of facility maintenance should be allocated to the
Maintenance event

Electricity In most cases the amount of electricity used by an event can only be estimated
and therefore an indirect cost.

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Feasibility Study for a Proposed New Multipurpose Event Venue in Cambridge Executive
Summary Presented to the: City of Cambridge & Maryland Economic Development
Corporation December 18, 2013 Feasibility Study for a Proposed New Multipurpose Event
Venue in Cambridge Executive Summary Page 1 Executive Summary At the request of the
City of Cambridge, the Maryland Economic Development Corporation (MEDCO) retained
Conventions, Sports & Leisure International (CSL) to conduct a feasibility analysis of a
proposed new multipurpose venue to replace Governor's Hall. This summary highlights the
key findings of this research. The full report should be reviewed in its entirety to gain an
understanding of the study methods, limitations and implications. The research conducted
as part of this study included an overview of conditions in and around Cambridge,
stakeholder interviews and focus groups, a public forum, analysis of historical Governor’s
Hall operations, an assessment of existing and planned venues within the region that could
impact the operations of a new event facility, analysis of comparable facilities nationally,
interviews with existing and potential users of event facilities in Cambridge, assessment of
cost parameters associated with new facility development, analysis of potential event levels
and resulting economic and fiscal impacts, a review of management options, and an analysis
of potential sites to be considered for development. The contents of this study will allow the
City of Cambridge and other community leaders/stakeholders to make informed decisions
regarding the feasibility of the potential project. Introduction and Analysis of Local and
Regional Market Conditions As with the existing Governor’s Hall, the envisioned venue is
intended to act as a year-round, flexible facility capable of hosting a wide variety of
community and regional activities that will enhance the quality of life and viability of the
Cambridge area, as well as stimulating the regional economy. Based on feedback collected
throughout the study process, important goals for the facility include:  serving as a home for
community events;  promoting visitation/tourism;  creating opportunities to stimulate
business activity;  fostering an awareness of Cambridge and its offerings;  minimizing
development and operational costs; and  maximizing the variety and nature of events
capable of being hosted in order to optimize utilization. Cambridge is within relatively close
proximity of the greater metropolitan areas of both Baltimore and Washington, D.C. This
highly-populated area would, in most cases, be looked at as providing considerable
opportunity when it comes to evaluating the potential success of a multipurpose event venue
and the possibility of attracting both event producers and related attendees. However,
Cambridge’s location on the eastern shore of the Chesapeake Bay and approximately 40
miles south of the Chesapeake Bay Bridge’s connection to the western shore presents
accessibility problems, which could hinder its ability to attract outside interest. A wide
variety of event facilities currently exist both within Cambridge on the eastern shore of
Maryland. This inventory of event space can and will have an effect on a potential new venue
in Cambridge and has been carefully considered throughout this analysis. The demographics
in the immediate Cambridge area, which can also be an important consideration of event
planners/producers, are not particularly robust. Further, the population and average
household Feasibility Study for a Proposed New Multipurpose Event Venue in Cambridge
Executive Summary Page 2 income for both the City of Cambridge and Dorchester County do
not suggest a large and financiallyhealthy population. Analysis of Historical Governor’s Hall
Operations Event, event utilization day, occupancy, and attendance data have all remained
relatively consistent at Governor’s Hall over the past four years, with some metrics
experiencing modest increases over the period. In terms of the event-type categories that
represent the largest and second-largest proportions of total attendance and total utilization
days during the period (festivals and meetings/banquets/reunions), year-over-year growth
was seen in nearly every year. This underscores the value of this venue as a community
gathering place that will be important to preserve in some fashion going forward. Occupancy
levels, though strong on the weekends, are very low during the week (Monday through
Thursday). Such occupancy patterns are often the case with smaller market facilities that
serve primarily locally-based events. With that said, whereas Governor’s Hall (and likely its
potential replacement) seems to have a strong, consistent base of local weekend events, the
opportunity going forward lies in the ability of the facility to attract regional events and to
increase occupancy during the week. Comparable Facility Analysis We have assembled case
studies that highlight the operational and physical characteristics among a set of ten existing
facilities across the United States that could offer some element of comparable insight with
respect to population, facility size and amenities, geographic location and other such
characteristics. Through discussions with facility management, data were collected relative
to development cost & funding, ownership and operational structure, staffing levels,
historical event information, financial operations, square footage/seating capacity, rental
rates, recent business trends, market characteristics, expansion and/or improvement plans,
hotel inventory, and economic impact and/or area development resulting from the facility.
Such information has been critical in our evaluation of the appropriate facility to meet the
needs of the Cambridge community, as well as many important operational characteristics
that should be expected and planned for. The amount of total sellable space (exhibit,
ballroom and breakout meeting space) offered at the comparable facilities reviewed varies
widely, averaging approximately 19,000 square feet. The characteristics and mix of the
sellable space offerings within each of these comparable facilities underscores the
importance of offering a sufficient square footage and variety of functional facility spaces in
an effort to attract and accommodate a wide variety of events. Market Demand and Event
Characteristics Analysis Detailed in-person and telephone interviews were completed with
event promoters and planners representing key market segments that could use a potential
new venue in Cambridge, including the following:  Current/Past Users of Governor’s Hall 
Touring Event Promoters  Public/Consumer Shows  Cheer and Dance Events/Competitions
Feasibility Study for a Proposed New Multipurpose Event Venue in Cambridge Executive
Summary Page 3  Sporting and Recreational Events  Other Event Opportunities The survey
results produced a great deal of valuable information on the likelihood of event planners
rotating their event(s) to Cambridge, as well as specific event characteristics of those events
that represent the potential demand. The information collected as part of this analysis helps
to define the strengths, weaknesses and future event potential for a new event facility in
Cambridge. Physical and functional limitations of existing Cambridge area event facilities
suggests that some level of event activity produced by local and regional groups may be
leaving the community. Comments from event planners that have used and/or considered
Governor’s Hall in the past suggest a very defining set of attributes that have significantly
impacted event activity. The unique physical conditions of the space (including floor size,
acoustics, level of finish, ability to etc.), perceived distant location from the Western shore of
Maryland, the set of newer and more competitive facility alternatives within the region, and
lack of walkable amenities adjacent to the site make attracting some events challenging.
However, the multiuse nature of the facility, availability of free parking, the large, open
nature of the space and its competitive rental rates have provided opportunities to succeed
in a number of event markets. Aggressive sales efforts could serve to identify unique event
opportunities at a new venue. To enhance the event sales and service processes and in order
to compete more effectively for added event activity from the segments noted herein, we
believe that consideration should be given restructuring the existing Governor’s Hall staff to
allow for one full-time position dedicated to both generating and servicing new business for
the venue. It is estimated that event activity at a new Cambridge multipurpose event center
could reach nearly 80 events and nearly 47,000 attendee days per year during a stabilized
year of operation. This compares to an average of nearly 50 annual events and fewer than
36,000 total attendee days at the current Governor’s Hall. Building Program and
Construction Cost Analysis Based on the previous analyses undertaken, key aspects of a
market supportable facility program for a potential new Cambridge event facility are
presented below.  Primary Area Square Footage – A minimum flat floor area (when seating
is retracted) of 15,000 contiguous square feet. The ability to subdivide this space into a
minimum of three sections will be important in an effort to “right size” the venue. 
Secondary Area Square Footage – 2,500 to 3,500 square feet of divisible, breakout meeting
space. This space should be divisible into four to six individual rooms of varying sizes. 
Other Support Areas – Sufficient levels of other service and support areas typical in small,
multipurpose event facilities (i.e., pre-function, kitchen, lobby, restroom, concession stand,
storage, load-in/out and other such space).  Parking – With a potential capacity for groups
of up to 2,000, the recommended parking stall count would be 500 to 700 spaces. The order-
of-magnitude hard construction costs could range between $4.0 million and $5.6 million for
a new multipurpose events center in Cambridge. It is important to note that these estimates
take into account the expected modest level of finish associated with the supportable
building program, as well as the lower average construction costs on the eastern shore of
Maryland. Soft costs (i.e., financing costs, legal, architectural, consulting, permitting, FF&E,
etc.) would be in addition to these estimates, and could Feasibility Study for a Proposed New
Multipurpose Event Venue in Cambridge Executive Summary Page 4 add 20 to 25 percent to
total construction costs. As such, the total development costs could approximate between
$4.8 and $7.0 million. In addition to the estimated hard and soft construction costs, costs
associated with land acquisition and improvement, other potential infrastructure
improvement costs and potentially annual operating costs will also need to be considered in
the ultimate planning scheme, if subsequent planning steps are taken. A capital
improvements budget equal to 0.5 percent of the total construction cost is recommended
and could approximate $24,000 to $35,000 per year. Analysis of Financial Operations &
Economic/Fiscal Impacts Historically, Governor’s Hall has operated relatively close to break-
even over the past several years. In 2010, the venue realized an approximate $3,600 profit.
This grew to nearly $44,000 in 2011. In 2012, the Board of Directors for Sailwinds of
Cambridge LLC opted to financially compensate its primary operational staff (a total of
$39,500), which resulted in an operating loss of nearly $11,000. In the case that the current
venue was to continue to operate in the future, similar financial operating results could be
expected going forward. Upon a stabilized year of operation (assumed to occur the fifth full
year), a new multipurpose event facility in Cambridge is estimated to generate an operating
deficit of approximately $62,400 per annum (in 2013 dollars). This figure only represents
the annual operations of the center and does not include debt service payments, capital
repair/replacement reserve funding obligations or other non-operating expenses. This type
of operating loss is consistent with comparable multipurpose event facilities throughout the
country. The estimated total annual direct spending associated with the existing Governor’s
Hall has ranged from $506,000 to $771,000, averaging more than $711,000 over the past
four years. Of this total, it is estimated that approximately 75 percent of facility-related
spending is generated by non-local event attendees (both drive-in and overnight visitors).
Direct spending associated with a potential new Cambridge event facility could approximate
$899,000 in a stabilized year of operations in 2013 dollars. This growth represents an
increase of more than 26 percent over what Governor’s Hall is currently generating in terms
of direct spending associated with event activity. Operations of the existing Governor’s Hall
currently result in an estimated $950,000 in total output. If Governor’s Hall were to continue
to operate in the future, similar impacts could be expected. This estimated level of annual
direct spending associated with a stabilized year of operations for a new multipurpose event
facility in Cambridge could generate approximately $1.23 million in total output (total
direct, indirect and induced spending). The premium in economic impact associated with a
new venue can be largely attributed to its increased ability to attract and retain a greater
number and proportion of events, many of which could have some level of out-of-town
attendance. Total salaries and wages that could be supported by the amount of spending
generated by the operations of a new event venue in Cambridge are estimated at
approximately $390,000 annually, while full and part-time employment levels supported by
this level of spending are estimated at 16 total primary and secondary positions. Feasibility
Study for a Proposed New Multipurpose Event Venue in Cambridge Executive Summary Page
5 The estimated total annual tax impact (including state and local sales and hotel/motel
taxes) of Governor’s Hall has averaged approximately $53,000 over the past four years.
Given the event levels and associated impacts estimated to take place assuming new
multipurpose event center development, total tax collections could increase to more than
$68,000 during a stabilized year of operations (in 2013 dollars). It is estimated that a new
multipurpose event center could generate total State of Maryland tax collections (from both
direct and indirect spending) of nearly $50,000 annually, representing nearly 73 percent of
total taxes generated. It should be noted that some element of displacement of event activity
within the State could reduce these impacts. For example, if an event is attracted to
Cambridge that otherwise would have booked in state, there would be no net new impact to
the State. Management Structure Analysis Governor’s Hall is currently owned and operated
by an independent, non-profit organization (Sailwinds of Cambridge, LLC). Sailwinds of
Cambridge, LLC operates under the oversight of a seven-member volunteer Board of
Directors. Facility management has been effective in operating the facility with very little
financial or other support from the public or private sectors. Governor’s Hall has
experienced very modest levels of facility improvements/enhancements in recent years and
has operated with minimal staffing/support. Both revenues and expenses associated with
Governor’s Hall operations are low relative to industry standards. Similar to the majority of
comparable multipurpose event facilities located in small communities throughout the
country, it is recommended that oversight/control for a potential new Cambridge event
facility is handled by city/county or other municipal/regional governmental body. Given the
relatively low operating revenue profile of a potential Cambridge facility, the importance of
both local and non-local events and the likely interest and management fees that a potential
private operator might require, it is suggested that an new multipurpose event facility be
operated internally. We suggest that an individual with a minimum of several years of
civic/event center management be retained to serve as the facility’s general manager. Such a
position could include a shifting of current Governor’s Hall staff to the new facility. If
Sailwinds of Cambridge, LLC were to continue to operate a new event facility in Cambridge,
we suggest that the City of Cambridge play an increased role in facility oversight (perhaps
through a City-appointed Board of Directors that seeks involvement and support from a
wide variety of industry sectors and project stakeholders). A significant amount of time and
effort will be needed to make a new event facility in Cambridge successful. As discussed
earlier in this report, regarding sales staff, we recommend a change in current approach,
which may require hiring for a dedicated, full-time sales and service position. Specific tactics
that should be employed relative to selling a new venue include close contact with key
promoters, outreach to local institutions, targeting events from competitive facility
calendars, and evaluating a revision to the pricing structure. Feasibility Study for a Proposed
New Multipurpose Event Venue in Cambridge Executive Summary Page 6 Site/Location
Analysis The location and site of an event facility can have a significant impact on its
operational success and its ability to generate new visitation and associated economic
impact in a host community. In coordination with City representatives and project leaders, a
total of six potential site areas throughout the Cambridge market were identified for
evaluation. These include the following: A large number of characteristics and factors are
typically important when evaluating the attractiveness of sites/locations. To assist in the
evaluation of each of the potential sites, a set of ten specific site evaluation criteria were
employed:  Size, Configuration and Topography  Infrastructure/Site Condition  Future
Expansion Potential  Parking Availability  Traffic Access  Visibility from Major Roadways 
Hotel Rooms Within Walking Distance  Restaurants, Attractions, Entertainment & Leisure 
Synergy with Surroundings/Setting  Economic Development Potential 1 Hospital/Visitor
Center/Amphitheater 2 Washington Street at Pinks Lane 3 Old Phillips Packing House 4
Sensata Building 5 500 block of Race Street 6 Corner of Race and Cedar 1 5 6 3 2 4 Feasibility
Study for a Proposed New Multipurpose Event Venue in Cambridge Executive Summary Page
7 Based on these factors, each of the potential sites was analyzed using a site evaluation
matrix. This evaluation process incorporates the strengths and weaknesses of each site
under consideration for each criterion deemed important for the project. Relative to other
sites, Site 1 (Hospital/Visitor Center/Amphitheater) offers the most desired combination of
characteristics related to site suitability. For purposes of this analysis, we have assumed a
full build out of the proposed waterfront development initiative discussed earlier in this
report. This location outperformed other sites due to its proximity to the waterfront and
amphitheater, as well as the planned mix and concentration of traditional visitor amenities
that event planners and attendees often find attractive (such as restaurants, bars, retail,
entertainment and hotel rooms,—all within a “pedestrianfriendly” walking environment).
Other potential sites represent viable options as well. In particular, Site 2 and Site 6 should

also be considered as alternatives, as project planning moves forward. Event

Budget Workbook
 Expenses
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•••
BY GEOFF BEERS
 
Updated May 10, 2018

It is hard to plan an event budget unless you have a good idea of what expenses you
will incur. It seems obvious enough, but the costs associated with event planning can
come from a number of different places. Just when you think you have identified all of
your expense categories, another one pops up to send you back to the drawing board.
To prevent this from happening to you, I have put together this outline of event planning
expenses to keep in mind while creating your budget.

On-Site Expenses

Included here are the costs and fees typically charged by the event venue. It is often the
most expensive category, but it is also the easiest to predict since you will get a formal
cost estimate to review in advance. With that being said, don’t forget to factor in variable
costs that change with your attendance numbers. Catering is a good example of this as
your food costs will increase with each addition to your roster.

Venue Costs

 Room Rental
 Security Deposit
 Insurance Coverage
 Parking

Food and Catering

 Meals
  Beverages
 Bartender/Server Labor Fees
 Tax and Service/Gratuity Fees

Audio/Visual

 Microphones
 Screens and Projectors
 Internet Access
 Other Specialized Equipment

Third-Party Vendors

This category represents all of the items and services supplied by vendors outside of
the host venue. Each one will bill you independently, so it is important to keep close
tabs on everyone you are working with. Using a spreadsheet will help you organize your
vendor contacts along with the costs associated with their services.

Event Rentals

 Linens, Table Skirting, and Chair Covers

 Tents, Staging, and Amusement Attractions
 Physical Items Not Provided by Venue
 Labor and Delivery for Setup/Teardown

Décor Vendors

 Accent Lighting
 Flowers and Centerpieces
 Balloons

Entertainment

 Musicians or DJ
 Speaker Fees
 Contract Riders (food, lodging, transportation)
Production Expenses

Production includes all of the staff and resources required to plan and execute the
event. These expenses begin the moment the event is dreamed up and continue
through the post-event paperwork. In short, this category represents the cost of
organizing the event, attracting attendees, and managing the administrative elements.

Marketing and Registration

 Print and Design Work

 Advertisements
 Invitations
 Registration Management

Planning and Organization

 Event Planner Fees

 Part-time and Temporary Employees
 Office Supplies
 Communication Costs
 Travel Expenses

Administrative Expenses

 Salaried Employee Assignments

 Accounting Costs
 Legal Fees
 Consultant Fees

Cost Overages and Emergency Funds

There is no magic number for what you should set aside for unplanned expenses, but
you need to expect the unexpected. Some event planners suggest budgeting five to ten
percent over the anticipated expenses, while others choose a round number to work
with. Larger events should, of course, allocate more because an oversight that is billed
per person could run into the thousands of dollars.

The purpose of this outline is to make you aware of the different types of event planning
expenses that can occur. Every event is unique, so yours may include more or less of
the items that listed here. The important thing is to know where your costs will be
coming from. Overlooking expenses associated with a particular vendor or category can
wreak havoc on your budget, but the worst case scenario is completely forgetting about
an expense until the bill arrives.

Projected
Monthly expenses monthly % of total
expenses

Salary of owner/manager 0

All other salaries and wages

Rent/lease 0

Advertising 0

Delivery expenses 0

Supplies (stock-in-trade) 0
 Projected
Monthly expenses monthly % of total
expenses

Telephone 0

Other utilities (e.g. electricity, gas) 0

Insurance 0

Consumables 0

Interest 0

Maintenance 0

Legal and professional costs 0

Contingency costs 0

Other monthly costs:    

 Projected
Monthly expenses monthly % of total
expenses

Subtotal 0 0

Projected
One-off costs one-off % of total
costs

Fixtures and equipment 0

Fit out 0

Installation charges 0
 Projected
Monthly expenses monthly % of total
expenses

Starting inventory 0

Deposits for utilities (e.g. electricity, gas) 0

Legal and professional fees 0

Registrations, licences and permits 0

Advertising and promotion for opening 0

Cash 0

Goodwill, rent, insurance etc. 0

Contingency costs 0

Other one-off costs:    

 Projected
Monthly expenses monthly % of total
expenses

Total estimated start-up capital 0 0

Also consider...
 Learn about setting sales targets and break-even points.
 Consider ways to make your business more profitable.
 Read about managing your finances and expenses and cash flow.
 Find out how business mentoring can help your business.
 Find out about pricing products and services.
 Last reviewed: 18 Jul 2017
 Last updated: 19 Apr 2017

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