Amusement Park Business Plan

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Company Summary

The company anticipates that its first FEC will be located in Weber County, Utah facing the Majestic Wasatch Front Mountains. The company's FEC will be the most modern in the Northern Wasatch area.

Initially named the Wasatch Family Fun Center, the company anticipates that its facility will have a positive impact on the local environment and economy.

Mr. Bill Rameson, CEO of Palace Entertainment, the largest FEC chain in the world, has observed, "With most family entertainment centers having a 15 to 20 mile reach and in today's climate, you've got to understand what you're trying to accomplish. You've got to understand your market. You've got to understand construction. The attractions have to be both interactive and competitive." 

I&B Investments proposes to choose its locations after thoughtful and detailed research and demographic profiling.

2.1 Company Ownership

  • Managing Partner - Mark D. Bergman 

Limited Partners:

  • Acting C.F.O.- Val R. Iverson
  • Operations Manager & Public Relations - Senator Joseph L. Hull
  • Retail Space Leasing Agent Gift Shop Manager.- Laura Strebel
  • Director of Sales and Marketing - Roger Smout
  • Manager of Treasury and General Accounting - Rod Schaffer
  • Manager of Promotions & Customer Service - Darren Strebel

Consultants / Non-Partners (retained):

  • General Entertainment Manager / Consultant - Harold Skripsky
  • Redevelopment (RDA) Specialist - Randy Sant

2.2 Start-up Summary

For Phase 1 the Start-up table reflects the cost of the center, activities and 8.5 +/- acres.

All Construction cost are included in the gross loan, but not detailed in the "Start-up Cost table" because these costs happen before the projected pro forma begins.

In the Start-Up Funding table there are two forms/types of investors listed:

The Seed Investors/Partners that come under #1-11, are considered the seed funding group and company management team.  Their investment is not secure and carries a greater risk of loss.  Therefore, the percentage of the company that this group receives for their investment equals a much greater company ownership than the secure partners do for their investment (these partners are also earning sweat equity shares for their involvement/efforts rather than wages during development). 

The Start-up Investors/Secure Partners that come under #1 -4, are considered the start-up funding partners.  They may or may not be part of the company's management team but are the voting and percentage controlling partners.  Their investment will be escrowed and secure until the company has secured funding for the entire project.  There is no risk of loss that is associated with these investors.

The Use of Funds table details many of the Start-up Expenses.

Start-up Funding
Start-up Expenses to Fund $229,575
Start-up Assets to Fund $5,277,925
Total Funding Required $5,507,500
Assets
Non-cash Assets from Start-up $5,077,925
Cash Requirements from Start-up $200,000
Additional Cash Raised $0
Cash Balance on Starting Date $200,000
Total Assets $5,277,925
Liabilities and Capital
Liabilities
Current Borrowing $890,000
Long-term Liabilities $3,652,500
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $4,542,500
Capital
Planned Investment
Seed Investor/Partner #1 $5,000
Seed Investor/Partner #2 $5,000
Seed Investor/Partner #3 $2,500
Seed Investor/Partner #4 $2,500
Seed Investor/Partner #5 $2,500
Seed Investor/Partner #6 $2,500
Seed Investor/Partner #7 $5,000
Seed Investor/Partner #8 $12,500
Seed Investor/Partner #9 $12,500
Seed Investor/Partner #10 $12,500
Seed Investor/Partner #11 $12,500
Start-up Investor/Secure Partner #1 $222,500
Start-up Investor/Secure Partner #2 $222,500
Start-up Investor/Secure Partner #3 $222,500
Start-up Investor/Secure Partner #4 $222,500
Additional Investment Requirement $0
Total Planned Investment $965,000
Loss at Start-up (Start-up Expenses) ($229,575)
Total Capital $735,425
Total Capital and Liabilities $5,277,925
Total Funding $5,507,500
Start-up
Requirements
Start-up Expenses
Seed/Development Stage Cost $35,000
Professional Fees $60,000
Commercial Loan/Mortgage Points Cost $109,575
Sweat Equity Cost $25,000
Total Start-up Expenses $229,575
Start-up Assets
Cash Required $200,000
Other Current Assets $0
Long-term Assets $5,077,925
Total Assets $5,277,925
Total Requirements $5,507,500
Use of Funds
Use Amount
Phase 1 Construction Cost Breakdown $0
Total Sq.Ft. Building (±) $15,000
Direct Construction Cost $150,000
Table Top Games/FoosBall $50,000
Redemption Games/Inventory $50,000
Bumper Boats $175,000
Batting Cage and Pitching Device $140,000
Miniature Golf Course $225,000
Street Construction $800,000
Storm Water and Infiltration Program $217,000
Building Permit/Subdivide/Connection $35,000
Parking Lot $167,000
Construction Insurance Cost $4,000
Property Cost 8.6 ± Acres $688,000
Drafting/Renderings $90,000
Site and Building Engineering $45,000
Computers/Desks Office Supplies $14,000
Signs $20,000
Go-carts and Tracks $500,000
First Year Operations Captial $200,000
Gross Cost of Equipment & Improvements $3,570,000
Construction Cost of Building $1,000,000
Construction Loan Cost $300,000
Cost + Building $4,870,000
25% Loan (LT) Buy Down Cost $1,217,500
RDA Write Down $0
Retail Pads Sales $0
Net (LT) Loan $3,652,500
Loan Points Cost $109,575
Gross Cost $1,327,075
Loan + Points Cost/Gross Investment $4,979,575
Total $24,611,225

2.3 Company Locations and Facilities

The first proposed site / property has two different aspects to it:

  1. We purchase a 10 acre parcel on the site and construct our center.
  2. We incorporate a Government Redevelopment Agency (RDA).  Which can provide our company with a government grant (funds) that can help us purchase the entire 44.6 acres.  This involves more risk but offers higher profits because we will need to resell 20 acres +/- once they are developed.

Therefore, within this business plan we will present a primary look at both possibilities, including the basic business structure, the start-up cost, the company's projected growth, the market, the local demographics, the economic impact, the industry trends, the construction costs, the development of the land, the oversight of operations during the development of the infrastructure and the companies future management and marketing team.

Our proposed site is the 44.6 +/- acres running along the west side of the Interstate, with three planned future (roads) accesses/easements.

The entire property is zoned commercial and the owner has stated that he supports our project and will carry a contract. Phase 1 would place our FEC just north of the other existing commercial establishments. 

The latest traffic figures report an average daily traffic count of 30,685 cars exiting and entering the interstate at this junction and the interstate (north and south bound) carries an average daily traffic count of 56,490 cars. Source: Utah Department of Transportation.