Business Plan. The California Space Center

Transcription

1 Business Plan for The California Space Center Santa Barbara County, CA REV 8.0 Prepared for: California Space Authority, Inc Airpark Drive, Suite 204 Santa Maria, CA Prepared by: Productive Impact, LLC 1712 Chorro Street San Luis Obispo, CA March 2010 Kenneth Riener, Principal Patrick Mayeda, Principal

2 Acknowledgements Special thanks go to all who supported and contributed information for the development of this plan. Andrea Seastrand, Executive Director, California Space Authority Janice Bellucci Dunn, Deputy Director and General Counsel, California Space Authority Nick Pelster, Chief Technical Officer, California Space Authority James A. Diani, President, A. J. Diani Construction Co., Inc. Steve Gillean, Construction Management Supervisor, A. J. Diani Construction Co., Inc. Brad Lenz, Senior Business Manager, United Launch Alliance, VAFB Margaret Lau, Executive Projects Administrator, California Space Authority CSC_BusinessPlan-REV8.0 2 of 59

3 Table of Contents EXECUTIVE SUMMARY... 4 CALIFORNIA SPACE CENTER... 7 LEGAL STRUCTURE... 7 MISSION... 7 MANAGEMENT... 8 SITE... 8 DESCRIPTION OF FACILITIES... 9 Visitors Center Heritage Exhibition Center Rocket Park Native Plant Garden Native American Cultural Center Large Format (IMAX or IMAX-like) Theater Launch Viewing Facilities Restaurant and Food Court Outdoor Amphitheater Space Education Facility Conference Center Mission Support Complex Parking and Drives THE MARKETING PLAN THE MARKET STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS ATTENDANCE PRICE COMPETITION THE PROJECT SCHEDULE FINANCIAL PLAN CONSTRUCTION COSTS PER PHASE SOURCES OF CAPITAL MAJOR SOURCES OF CAPITAL FUNDRAISING TARGETS FINANCIAL PLAN ASSUMPTIONS BIBLIOGRAPHY: ADDENDUM: CSC_BusinessPlan-REV8.0 3 of 59

4 Executive Summary The California Space Authority is a nonprofit corporation representing the interests of California s national security, civil and commercial space enterprise. The company is seeking capital in the amount of $219.9 million to construct the California Space Center. The two major goals of the California Space Center are to (1) inspire students to study science, technology, engineering and mathematics and (2) educate the public regarding space enterprise, in general, and will include history and cultural resources of the Vandenberg Air Force Base (VAFB) area. The Center will accomplish the first goal by providing students with interactive, hands-on space exhibits and activities that engage their interests. Exhibits may include a space shuttle simulator, a lunar mission planner, and the ability to drive a Mars rover. The Center will develop a space enterprise curriculum for the classroom, which can be utilized both prior to and following students visits to the Center. The Center will accomplish the second goal by telling the story of the overall development of space enterprise in California, from the early entrepreneurs and innovators of the early 1900s through the present time where California represents more than 40 percent of the nation s and 20 percent of the world s space enterprise market. The space enterprise story will also spotlight the local area that includes what is now VAFB. This story will begin with the Santa Ynez Band of Chumash Indians, who lived in the local area for more than 10,000 years. The story will include the influence of Spanish explorers and settlers. And the story will include federal government actions past, present and future starting with the U.S. Army s creation of Camp Cook for ordnance testing as well as the Air Force s creation of the nation s first polar launch facility from which Air Force, National Reconnaissance Organization (NRO), and NASA satellites are sent to space. Family oriented attractions such as a large format cinema, rocket park, play area, visitor kiosks, restaurant and food court and a space gift shop are also planned. A Launch Viewing Site will include an outdoor amphitheater, a viewing lawn and a launch related media facility. The Space Education Facility will feature both K-12 and higher education facilities, and also a space experimental laboratory. A Conference Center will cater to companies and organizations requiring an auditorium, banquet, and meeting facilities and exhibit space. The Mission Support Complex will house organizations from both the private and public sectors as well as provide a VIP/welcome and launch monitoring center that can accommodate foreign customers. The proposed center will be located on a site locally known as Hawk s Nest. The seventy-one acre site is an abandoned trailer park that fronts Highway 1, about one mile south of the Vandenberg AFB Main Gate, near Lompoc, California. The planned facility will include approximately 470,000 square feet of buildings and is to be built over the course of ten years. The first day of operation will be thirty months after the signing of the lease. CSC_BusinessPlan-REV8.0 4 of 59

5 The California Space Center will be built in accordance with Anti-Terrorism Force Protection guidelines and in 4 phases: Phase 0 will consist of the initial site development and build-out of the site infrastructure. This will include the initial site grading and installation of the ingress and egress roadways onto the site. Along with the installation of all basic utilities, a traffic control intersection and acceleration/deceleration lanes will be constructed. Phase 0 will cost approximately $8.3 million. Phase 1 will begin with the installation of the sewage treatment facility, 1MW photovoltaic field, and the Mission Support Complex that will house organizations from both the private and public sectors. It will also provide a VIP/welcome and launch monitoring center that can accommodate foreign visitors. The Interpretive Center will be set up inside this complex. The Interpretive Center will include a welcome and interpretive center, classrooms, gift shop, and limited food and beverage service. Phase 1, including the Interpretive Center will cost approximately $50.6 million. California Space Center attendance the first year is estimated at 200,000. Phase 2 will feature an expanded Visitor Center, including a welcome center, attraction buildings, rocket park, gift shop, restaurant and food court, native plant and community gardens, as well as playground and picnic area. In addition to a launch viewing media center, a large format theater, youth education facility, cultural centers, and amphitheater for launch viewing will be constructed. The amphitheater will also be available for outdoor functions such as cultural events and outdoor seminars. Furthermore, the Youth Education Facilities will be constructed during this phase, including fully equipped classrooms and technical laboratories. Phase 2 will cost an estimated $93.4 million. Phase 3 will include the construction of the Adult Educational Facilities, meeting rooms, and an integrated Conference Center with banquet room and restaurant. In addition, Mission Support Facilities will be expanded to meet increased demand. Phase 3 will be an additional cost of $67.7 million. At full build out, annual attendance is projected at 500,000 visitors. The total estimated cost of the California Space Center is $219.9 million. Phase 0: $8.3 million Phase 1: $50.6 million Phase 2: $93.4 million Phase 3: $67.7 million Operations for the entire project will yield a positive cash flow every year (not including depreciation), starting in 2013 at $2,522,160 and rising to over $12,700,000 per year by CSC_BusinessPlan-REV8.0 5 of 59

6 If the California Space Authority decides to borrow as much capital as possible, then the opportunity for outside investment will be: Phase 0: $8.3 million Phase 1: $16.6 million to $22.6 million Phase 2: $45.4 million to $74.1 million Phase3: $29.5 million to $36.0 million. Grants, charitable donations, and Congressional funding will reduce investment opportunity by an equal amount, or can be used to reduce the amount of debt required. To this end, California Space Authority has initiated a capital campaign that includes $95 million in targeted private funding. The California Space Center will create a significant positive economic impact on the local and regional economy. Job creation and economic vitality will result from tourist and employee dollars spent locally. An economic impact report will be issued separately from this business plan. The California Space Authority is seeking capital in the forms of federal and state grants as well as contributions from all facets of the private sector. Funding is needed at various times throughout the project. Although this project has been phased to reduce risk and spread out costs over time, any component will be built when funding becomes available. CSC_BusinessPlan-REV8.0 6 of 59