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Silver Lake Recreation Complex - August 1997

Executive Summary
The Silver Lake Recreation Complex, in the Apalachicola National Forest, located in the panhandle of Florida, was chosen to be a part of the U.S.D.A. Forest Service's Private/Public Venture Program (PPV). The basis of the PPV program is the integration of private sector capital and business management expertise with Forest Service Resources to provide outdoor recreation to the general public. Under the PPV concept, private capital is used to construct new, privately owned facilities or rehabilitate existing facilities on public lands. The Silver Lake Recreation Complex is an ideal site for the application of this program since it contains facilities that need modernization and encompasses undeveloped land that could support the construction of new facilities.

The purpose of this study is to assess the economic viability of the application of the PPV concept at the Silver Lake Recreation Complex. The economic viability study for the Silver Lake Recreation Complex includes a market analysis and feasibility analysis. The purpose of the market analysis is to analyze the existing site, define the market area, quantify existing demand, project future demand and determine the optimal mix of activities for the recreation site. The purpose of the feasibility analysis is to provide a cash flow analysis which determines market value, quantifies risks and opportunities and projects financial performance.

From the market area analysis, four improvement scenarios were developed. The scenarios were then tested in the cash flow analysis to determine their economic feasibility. The analysis suggests that it would be economically viable for the Forest Service to move forward with the PPV program at the Silver Lake Recreation Complex. The analysis further suggests that a scenario based on intensive day-use recreation would be the most promising alternative for increasing use and revenue at the facility. However, the other scenarios could be feasible alternatives if unique recreation opportunities were provided to visitors. This study should serve as a useful guide for future improvements at the Silver Lake Recreation Complex.