Figure Skating in Harlem (“FSH”) is a non-profit organization that was founded in 1997 and supports students from 6 to 18 years old, providing figure skating instruction and programs that encourage academic achievement and leadership, and provide life skills, wellness, and cultural enrichment. While off-ice programs are hosted at its 125th Street headquarters, the lack of a dedicated and proximate year-round ice rink has forced FSH to use facilities far outside the neighborhood and to compete aggressively for limited ice time with private school and university hockey teams, adult hockey leagues, and other ice-skating clubs.
FSH engaged RESGroup to evaluate the potential development of a single-sheet indoor ice rink at a site located in close proximity to their headquarters, and to prepare a business plan to summarize the proposed rink’s financial feasibility, evaluate strategies for site ownership, identify opportunities to improve project economics, and present issues and next steps for FSH leadership.
RESGroup conducted a market analysis for an NHL-sized ice rink located in Central Harlem. Interviews with local ice users, ice rinks, and ice rink operators and managers provided an understanding of the demand segments for ice time in the market area, and factors such as demand characteristics, pricing, time required by each segment, unmet demand trends, and facility requirements were noted. Comparable indoor ice rinks in New York City were profiled to understand potential revenues and expenses, as well as competitive advantages and disadvantages.
Although several seasonal outdoor ice rinks have recently opened in New York City, indoor ice rink development has been particularly challenging in the market. A few recently proposed ice rink projects have been cancelled, with factors such as project size and the inability to secure financing contributing to their failure.
