Don Webber
Mission Viejo, CA (USA)
Role(s):
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American Sports Centers II
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Startup
Location:
Mission Viejo
Industry:
Recreation
Year Founded:
2007
Number Employees:
1-10 people
Description:
ASC II works through public-private partnerships to help cities develop indoor public recreation facilities. Our city partner funds the capital construction while ASC II operates the facility. ASC II is paid up front development fees and also secures a 30-year maintenance and operations agreement. ASC has; our model facility (open 6 years, owned by ASC not ASC II) in Anaheim, CA, a second facility under const. in AZ (Phx area) - incl. a signed, 30-year Ops Agreement (+$300k EBITDA annual at stabilization), a third project in negotiations with another AZ City, two more Excl. Negot. Agree. with cities in OH and TX, and are short-listed on a sixth potential project in FL.
ASC II markets directly to cities nationally. Those cities with a need for economic development and/or recreation facilities contact us. We prepare a market study to determine project viability, size, etc. then enter 1) development agreement (to design/build the facility) with up-front fees paid by the city. City finances the capital costs. Then we enter an operations agreement (30 years) to operate our business. Each facility generates $1.5 to $2.5 gross revenue and $300k to $500k EBITDA.
ASC II works directly with cities (primarily). There are 18,443 cities in the United States, most of which need or want 1) Economic Development projects (tourism), and, 2) Additional recreation facilities. The amateur sports market in the U.S. is more than 60M players (plus their families), 47M room nights annually, $66B total in 2008. Basketball is sport with largest participation, volleyball and indoor soccer fastest growing - ASC's "big three".