What this is:

Hotel & Leisure Advisors (H&LA) produced a feasibility study for a proposed “Rocky Mountain Grand Resort” (an indoor waterpark resort) and “Cascadia Arena” in West Greeley.

What the study’s own numbers say:

Even under the study’s assumptions, the project’s debt service is enormous (roughly $41.5M annually) and the project’s early-year cash flow does not cover that debt in key scenarios.

• In “Scenario 1,” the combined project shows a debt service coverage ratio (DSCR) of 0.62 in 2029 (well below the typical 1.20+ lenders want), with negative net income to equity of -$15.8M in 2029.

• In “Scenario 2,” the study still shows negative net income to equity in early years––e.g., -$9.5M in 2029) with DSCR 0.77 in 2029, not turning positive until later years.

Why that matters for the “larger picture:

1. This study is not just “will this be cool?”—it’s being used to justify major city actions and financing structures. The PDSA/financing agreement framework for “Cascadia” and the “Catalyst Project” contemplates coordination on bond issues and related financing details.

2025.04.15 fully executed PDSA

2. The study builds feasibility around major structural assumptions—especially taxes. It assumes the project will operate under a ground lease with ownership by a 501(c)(3) nonprofit (“Provident”) and therefore assumes no real estate or personal property taxes, explicitly stating that this tax-exempt status “enhances the overall financial feasibility.”

3. The city zoning/entitlement timeline is directly in the study. H&LA states the site is zoned PUD and ties that to Ordinance 30 (2025) passed Sept. 16, 2025 and effective Sept. 24, 2025.

FILE_0276_ HLA Study 291 pages

Bottom Line:

The feasibility study’s financial tables raise a basic public-interest question: If the project doesn’t cover its own long-term debt in early years—and depends on a tax structure that removes property taxes—what is the city being asked to do to bridge the gap, and who carries the risk if projections fall short?