Debunking Equestrian Facility & Amenity Myths
By Jennifer Donovan, Equestrian Services, LLC

Myth #1: The equestrian facility will be a profit center.

Fact: No, it won’t. An equestrian amenity is similar to most golf courses; they are a lost leader in that they lose money and typically need to be subsidized through an HOA assessment or club structure. The value-added aspect comes from marketing opportunities, project differentiation, increased lot and unit sales prices and increased absorption rates. Understanding this and creating a facility that truly adds value and is sustainable for the long haul is paramount to your development’s success.

Myth #2: Surely my friend who has ridden horses her whole life can be my consultant and help me with my equestrian amenity.

Fact: Only if she has experience in all of the following areas: feasibility studies, budget projections, market and real estate analysis, demographic analysis, land planning, site design, architecture, construction management, CC&R creation, club structures, liability mitigation, risk assessment, hospitality, customer service, accounting and management.

Delivering a well-executed equestrian amenity for your community, municipality or resort has very little to do with riding horses. Would you turn over the design and management of your golf community to your friend who plays golf?

Myth #3: Polo is an exciting equestrian sport watched by high-net-worth individuals – it should be included in my amenity plans.

Fact: There may be some markets where a polo-based amenity could work, but these are few and far between. In addition, polo has the smallest demographic of any equestrian sport.

Polo has many challenges:

1. You need approximately 10 acres (the size of three football fields) of flat, well-drained land for a polo field, and generally you need several so you can rotate and rest them.
2. Engineering and maintaining a polo field is expensive. In order for the horses to perform and not get injured, the field needs to be flawless, consistent and uniform. The costs and water associated with keeping the turf lush and green are significant.
3. There are four players on each team and each player has between four and six polo ponies – that represents a barn that needs to accommodate up to 48 animals – ouch! That’s a lot of capital and operational expense.
4. Polo is primarily a spectator sport, and it is only fun to watch when the players are professionals. Watching beginners play polo is not fun… trust us.
5. Polo does not afford the opportunity for members of your community or resort to learn to ride – because you spent all of your capital costs on entertainment. Plus, you cannot teach polo to novice riders; you have to learn to crawl and walk before you can run. Polo is for advanced riders who can walk trot, canter, and gallop and turn on a dime. Your amenity should be diverse and cater to all riding disciplines; remember it is about selling real estate, and you must cater to a wide demographic.
6. It costs a minimum of $500,000 to field one polo team for one year.
7. Examine the ROI here... It simply doesn’t make sense.

Helpful hint to accommodate polo: Create one multi-purpose field for sports, hot-air balloons, dog trials, Scottish highland games, etc., and bring in the polo professionals for an exhibition game. Create the event with tents, food, champagne, divet stomping – the whole nine yards – and have the players come in for the day. You could even donate some of your proceeds to a local charity; therefore, everyone is happy (including your project’s investors)!

Myth #4: I can lease out the facility to an operator or concessionaire and my facility will operate effectively.

Fact: This is possible, but there are a couple of reasons as to why it is unlikely. First, there is a revenue shortfall in virtually all equestrian business models; that is why no big businesses feature a “line” of equestrian riding and boarding facilities. Most people get into horses because they love horses – not because they expect to get rich. And many of those people work with horses because they relate more effectively to horses than to people. Passion often overrides business sense. Without some form of subsidy, sooner or later your operator will realize they are coming up short, and some part of your program or facility operations will start to suffer – which will put your investment at risk. Second, many concessionaires are effectively sole proprietors. What happens if your operator is unable to work for an extended period or has to leave the area? What is the contingency plan to care for that barn full of horses?

When you work with an outside operator, here are some things to consider:

1. Do they have all of the necessary insurance? Liability? Care, Custody & Control? Workers Comp? Can they even get liability insurance? Many insurance companies will no longer insure HOA-owned equestrian facilities.
2. What credentials do they have? Certifications? Education? CPR? First Aid? Do they bring systems and protocols?
3. What is the motivation for this operator to cater to the needs of your community? Chances are there are none. Their sole motivation will be to make enough money to survive. There is much less value to you and your residents in this model.
4. Will they fund a capital replacement fund? Do they care about the facility if they do not own it? Again, since there is no money, they can’t afford to.
5. Understanding there is no money in this business, what corners are they cutting? Generally the corners that are cut involve staffing. Overworking and underpaying –this leads to inconsistent care and, ultimately, a hostile working environment that affects your residents, members and guests.
6. How will your residents provide feedback? And who is ultimately accountable? Generally, in this business, the buck stops with the trainer or, perhaps, the barn manager. What protocols will be in place if the residents are unhappy?

Helpful Hint: We believe success is created through a holistic, sustainable approach – that the needs of the developer, stakeholders, horses, employees and, most importantly, our customers are met from day one, all the way out to 10 or 20 years down the road. The only equestrian model that works and is sustainable is one that operates within a community, resort or a municipality – where everyone shares the cost and the benefits.

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Promoting the Equestrian Community to the Developer and the Homebuyer
By Jennifer and Michael Donovan, Equestrian Services, LLC

Many people long to include horses into their residential living experience. At one time, this required building a barn and the other necessary structures on your own land. Now it’s possible to find communities that offer central equestrian facilities, where residents may board their own horses or simply be around other residents' horses. Designed similarly to successful golf-community living, the equestrian community concept offers an opportunity for people with like-minded interests to live and interact with horses.

The horse industry has a direct economic effect on the U.S. of $39 billion annually. More than 4.6 million Americans are involved in the equestrian industry, and tens of millions more participate as spectators.*

There are nearly 300 equestrian-themed communities in the United States. Without a doubt, the U.S. offers an excellent opportunity for the development of future equestrian communities.

With appropriate planning, design and support, builders will be able to develop a successful community built to serve the equestrian enthusiast and nature lover. However, several issues should first be addressed in order to create a successful equestrian community.

1. Perform a Feasibility Study before you commit to a project. Like golf courses, equestrian facilities are not operationally profitable. A Feasibility Study will help you determine that the development model makes overall economic sense. Unlike golf, there are a broad range of equestrian disciplines, interests and pursuits. A Feasibility Study will identify the specific equestrian niche that will bring the greatest value to your project.
   
   
2. Answer the question - are the amenity capital costs in line with the development’s pro forma? Does the equestrian amenity make financial sense? If designed, executed and managed properly, an equestrian community can help a project’s bottom line including higher per-acre lot prices and faster sales pace.
   
   
3. Carefully select who will manage and operate the equestrian facility. Solid programming and management is needed to ensure long-term success and secure appropriate liability insurance. A professional equestrian management company will bring the best expertise and minimize the risks associated with barn operations.
   
   
4. Work with experts in equestrian planning. Even a lifetime of riding horses does not make someone qualified to plan, design, construct, or operate an equestrian facility. Equestrian planning requires equestrian experience, but it also requires a broad range of expertise including land planning, architecture, finance, business management and hospitality training. Don’t risk your multi-million dollar investment by working with someone that does not possess the necessary skill-set.

Attracting the Buyers

For many, living in a well-executed and correctly-managed equestrian community fulfills a lifelong dream. The buyers need the developer’s assurance that these communities will be properly planned, designed, implemented and managed, creating an exceptional standard of living for active equestrians and passive enthusiasts alike. Several ways to market exist.

1. Boast the New Ruralism concept.  Combining the best of rural living within a managed environment with the latest residential technology has emerged as one of the hottest lifestyle trends.
   
   
2. Provide an equestrian brand. A strong equestrian “name” promises the homebuyer a level of quality and service. The Oaks of Lake City, located 35 minutes from Gainesville, Florida, features the world’s first exclusively-branded O’Connor Signature equestrian facility and is enjoying robust lot sales even in today’s market.
   
   
3. Include concierge services. Highly-trained equestrian staff “sells.” Horse owners feel confident with staff who possess credentials in equine care and are then able to leave their horses (without worry) when they travel, or they simply lack the time for daily horse care.
   
   
4. Promote the amount of land available. Large tracts of land left open for multi-use trails, riding arenas and parks are part of a successful equestrian community.

We expect to see many more equestrian communities built. After all, with nearly two million people who own the 9.2 million horses in the United States, another two million people involved as equestrian volunteers or engaged in the equestrian lifestyle through family affiliation*, and the horse being named the fourth most popular animal**, the demand for equestrian communities featuring new ruralist principles is expected to remain strong.

* According to a 2005 economic study conducted by Deloitte Consulting LLP for the American Horse Council Foundation (AHCF).

** As reported by Animal Planet.

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Operations & Management News

Equestrian Professionals, Inc. (an affiliate of Equestrian Services, LLC) was awarded the Management Contract for the Bergen Equestrian Center in Leonia, New Jersey. The General Manager has been selected and placed, and we are currently in the process of transitioning all staff to our Equestrian Professionals, Inc. personnel.

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In the News: The New York Times

Equestrian Services, LLC continues to make headlines and bylines. This past April, we were featured in the "Along For the Ride or Not" article from The New York Times'  Key Magazine, as well as "Home on the Range" from The Financial Times in June.

Equestrian Services, LLC Launches Equi-Spa

Equestrian Services LLC, in connection with WTS International, is pleased announce a new concept offering for developers: The Equi-Spa Lifestyle Solutions Program. The Equi-Spa Lifestyle Program is an equine (horse) – human program integrated within the spa environment for a unique and exciting experience.

With appeal across demographic lines, offering opportunities for women, men, corporations and families alike, the Equi-Spa Program is uniquely different from existing spas.

Please note that more information about this program will be forthcoming in the following weeks.

Click here to learn more.

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EQMT Appoints Shelley Van den Neste as General Manager/Riding Director for The Oaks

(Charlottesville, VA, May 12, 2008) – Equestrian Management, LLC, the management affiliate of Equestrian Services, LLC, the company setting the standards for planning, designing and managing equestrian amenities for resorts and communities worldwide, is pleased to announce that Shelley Van den Neste has joined the organization as General Manager and Riding Director for The Oaks Equestrian Center in Lake City, Florida.

The Oaks is a new-ruralism residential community and is home to The Oaks Equestrian Center, the world’s first exclusively-branded O’Connor Signature equestrian facility. Associated with renowned equestrian Olympians Karen and David O’Connor, the community, which combines the best of rural living with the best of suburban living, features a 33-stall custom barn, a David O’Connor-designed cross-country course and other equestrian amenities.

“I feel strongly that the Oaks Equestrian Center is one of the most complete training centers that I have seen, both for the rider and the horse,” said Van den Neste. “The covered round pen, arena sizes and footing, cross-country course and miles of trails offer an opportunity for the rider simply wanting a well-rounded education to the horse, as well as the rider team that aspires to Olympic medals. The rural community atmosphere provides for families to have fun with their equine companions, while the organization and education of the equestrian staff ensure that all activities are done in a safe environment.”

Equestrian Management, a division of Equestrian Services, develops the program elements and provides management and staffing of equestrian facilities. All Signature-branded equestrian amenities include Equestrian Management’s services.

With more than 17 years experience of managing public, commercial and residential community equestrian facilities, Shelley is also an accomplished rider with 35 years experience, instructor, coach and FEI competitor with achievements including graduating with “Distinction” from the United States Dressage Federation (USDF) L program for judges in training, receving the USDF Bronze and Silver Medals, and coaching riders to achieve Bronze and Silver medals in the dressage discipline.

Shelley also has riding, teaching and showing experience, as well as accomplishments in other disciplines, including Regional and National championships in saddleseat equitation and pleasure, Western pleasure, and hunt-seat equitation.

Prior to joining Equestrian Management, Shelley was director of the Equestrian Center at Promontory, a resort community in Park City, Utah. She managed the facility’s program, organized clinics with renowned clinicians such as Walter Zettl, trained and managed the staff and trained and showed clients’ horses.

Equestrian Services offers developers the opportunity to create an equestrian community under a Signature Equestrian Facility brand that is associated with world-renowned equestrian experts. Modeled on successful golf-industry branding and management concepts, such as Arnold Palmer or Jack Nicklaus golf-course communities, Equestrian Services and its partners, John Lyons (“America’s Most Trusted Horseman”™) and equestrian Olympians Karen and David O’Connor, offer exclusively the world’s first branded equestrian facilities and amenities to builders and developers seeking to tap into the growing equestrian market.

John Lyons Signature and O’Connor Signature equestrian facilities are currently being considered in Virginia, California and Florida.

The Oaks is a 1,220-acre site in Lake City, Florida, northwest of Gainesville and west of Jacksonville, which offers strategically located Equestrian Recreation Areas (ERAs), a covered arena, an outdoor arena and a covered round pen, in addition to a cross-country course. The Oaks’ Equestrian Center Ribbon Cutting event was held in March of 2008.

Nearly two million people own the 9.2 million horses in the United States, with another two million people involved as equestrian volunteers or engaged in the equestrian lifestyle through family affiliation, according to the American Horse Council Foundation (AHCF).

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Kristi Seymour Appointed General Manager of Bergen Equestrian Center

Kristi Seymour joins Equestrian Professionals (affiliate of Equestrian Services & Equestrian Management) as the General Manager for the Bergen County Equestrian Center. Kristi has been tapped as General Manager to ensure the county’s mission is being upheld, to bring the staff together as a unified team, to oversee substantial renovations, to improve the conditions for the horses, to create systems, protocols, responsibility and accountability, and to transition all staff to Equestrian Professional personnel.

Prior to joining EQMT, Kristi worked in the non-profit sector and has over 12 years experience as a licensed clinical therapist. She holds several specialized clinical certifications ranging from crisis intervention and disaster debriefing to equine therapy through the EAGALA model, as well as psychotherapies such as Eye Movement Desensitization Reprocessing (EMDR) and Dialectical Behavioral Training (DBT). She has worked with various law enforcement agencies such as the LAPD, and shespecializes in Traumatic Stress. She has been published on the topics of Effects of Trauma on Child Development and Effects of Community Violence. Kristi’s management experience includes over five years of program management, and she has also held a private practice. Kristi holds a M.A. in Psychology from Fairleigh Dickenson University and a M.B.A. from the University of Phoenix. Both degrees were awarded with distinction.

Developing and executing programs are Kristi’s strengths, and she is able to apply detailed quantitative analysis to equestrian projects and develop strategies that will help facilities capture and keep a competitive advantage while implementing best practice strategies. For example, she developed equestrian programs for exclusive residential mental health treatment facilities. At those facilities, she selected all the horses, trained them under saddle, planned and supervised facility construction, hired staff and developed protocols. She also oversaw the first Pony Club certification into that market. Kristi has also worked internationally as a consultant and was responsible for relaunching a drug and alcohol treatment facility.

Kristi has been an equestrian for 33 years with experience handling, riding and training. As a child, Kristi got her first blue ribbon at eight years of age doing Pony Club. During her youth in South Florida, she competed in the Quarter Horse and Appaloosa breed circuits, winning many local, state, regional and national high point and championship awards with her horses. She has ridden and showed in various disciplines, in both English and Western. Over the last 20 years, she has focused on riding jumpers and showed for many years on the “A” circuit riding with leading trainers in the Large Amateur Owner Jumpers and Small Grand Prix classes with her Hanoverian, Kallista. Kristi loves bringing along young horses under saddle and starting them over fences. Most recently, Kristi was honored to be asked to consult and develop protocols, as well as provide training and horse care for the Royal Stables of His Majesty King George Tupou V in the Kingdom of Tonga.

In her spare time, Kristi enjoys traveling internationally, having been to several island nations in the South Pacific, Israel and New Zealand recently. She is an avid reader and also loves to work out at the gym, snow ski and play tennis.

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Signature Equestrian Facilities – Come Experience the Difference!

Equestrian Services, LLC is currently considering communities and resorts to launch the inaugural John Lyons Signature Facility. We are considering several properties; please contact Jennifer Donovan at JenniferD@eqsv.com for more information.

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Submit a Question:
How Important is the Tacking Station?

Ask the Experts – Submit a Question! Michele Schwartz, Architect/Equine Planner, Equestrian Services, LLC

A Tacking Station is a designated area for grooming and saddling a horse. This area should be convenient to a Tack Room where grooming kits and saddles/bridles are stored. Ideally, it would be located across the aisle from the Tack Room. Many facilities use cross ties in the barn aisle for grooming and tacking-up. In a small private barn, this is an acceptable practice, but in a larger barn - particularly one with an active lesson program - this can cause problems.

In an active lesson facility, horses will need to be passing through the aisles while other horses are being groomed or tacked. Passing by a cross-tied horse can be dangerous when the two horses do not get along and the animals resort to their natural instincts to bite or kick at the passing horse. This obviously causes a dangerous situation for the horses and their handlers. Even when two friendly horses are involved, a horse must still be unclipped from one cross tie each time another horse passes or there is a risk of saddlery or equipment being caught on the cross tie as the other horse passes under it. Unclipping and reattaching a cross tie can be quite disruptive to the grooming or saddling process. Also, if a horse is cross-tied in the aisle or stall, the handler may be approaching from behind with equipment, depending on the barn configuration. Since horses do not have the ability to see directly behind themselves, they can be startled when the handler becomes visible or touches the horse unexpectedly from behind.

A safer, more efficient solution is to create a Tacking Station off of the aisle. The horse can now be cross-tied with his head facing the aisle. Other horses can move freely through the aisle, and the cross-tied horse does not need to be unclipped from the cross ties until he is ready to be moved. With the horse’s head facing the aisle, he can more easily see the handler approaching with a grooming kit or saddle and not be startled.

A series of Tacking Stations can be located adjacent to one another, with a grooming shelf located between. The ideal grooming shelf should provide a place to set a grooming kit, a saddle rack and a bridle rack. It should also allow the handler to escape the Station if the horse becomes anxious. The grooming shelves shown here have broad shelves that can hold a grooming kit and grooming accessories as needed. They also have integrated saddle racks which are big enough to hold two English saddles. (The cross ties and bridle racks were not installed at the time the photograph was taken.) The large gap under the first shelf allows space for a handler to escape if the horse becomes upset. Good overhead lighting is essential, and a ceiling fan is a very welcome feature in most climates. Outlets for plugging in clippers are another necessity. Locating the outlets up high minimizes the risk of the horse getting his leg tangled in the cord.

Another benefit of grouped Tacking Stations in an active lesson barn is that an instructor can keep an eye on all of her students while they are grooming and tacking their mounts. Beginning riding students may not yet know or remember important safety precautions, or they may be too timid to ask for help with adjusting a piece of equipment. With grouped Tacking Stations, the instructor can quickly spot problems and lend assistance to any student. This is not as easy to do when more than two horses are cross-tied in an aisle, and it is not possible when horses are groomed and saddled in their stalls. Even in a boarding barn, a communal tacking area can encourage camaraderie amongst the users, as they share the joys of the fun ride they just had.

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