BOISE, IDAHO USA                                                                                                                  

                     1.1 Population                                                                                                                                

                     1.2 Boise, A Regional Hub for Job Growth and High Tech Industry                                           

                     1.3 Development in And Around Boise                                                                                        

                     1.4 ADA COUNTY PLANNING & ZONING

                      1.4.1 Ada County Plan. & Zoning Regulation Cloverdale Residential Subdivisions                

                      1.4.2 Ada County Zoning Ordinance provision for PC’S in Ada County

                      1.4.3 Ada County Board of Commissioners addresses & phone #

                      1.4.4 Ada County Development Services Office & Personnel

                      1.4.5 District Map Images


                     2.1 Demand Indicators                                                                                                                   

                     2.2 Our Proposed Development                                                                                                     

                           2.2.1. Phase One                                                                                                                      

                           2.2.2. Phase Two & all Phases following                                                                                

                           2.2.3 Beautiful Montebello (Description)                                                                              

                     2.3 Location of SRI's Proposed Planned Community District                                                      

                     2.4 Location of SRI's Proposed PCD Civic Center and Business Areas                                       

                     2.5 Public Services: Fire Department, Sheriff and School District                                               

                     2.6 Utilities                                                                                                                                    

                     2.7 Wastewater Disposal Treatment Facilities                                                                              

                     2.8 Property Water Resources                                                                                                       

                     2.9 Property Roads                                                                                                                        

                     EXECUTIVE OFFICFERS & MANAGEMENT                                                                    


Kathleen Blaser - President & Secretary                                                                                                   

Albert Blaser, Montebello Founder


Sam Sarich - Chairman Vice President, CEO & Operations Manager 


                3.4 Ted Johnson, President, Skyline Corporation/Skyline Development Company    

                      (Project Manager)


                      Development History                     


Design and Infrastructure Developers                       

                     3.7 Other Key Management Personnel

                           3.7.1 David Henion

                           3.7.2 Bruce Henion                                                                                                               

                     FINANCIAL OBJECTIVES                                                                                                          

                     4.1 Source and Use of Funds                                                                                                      

                     4.2 Appraisal                                                                                                                              

                     4.3 Financial Projections of Appraised Properties                                                                     

4.4 Proposed Acreage Designated and set aside for All Developments



                     4.5 Utilization of Capital Phase One (630 Lots – 400-Acres)                                                           

                     4.6 Gross Retail Revenue of Lots/Acres                                                                                    

                     4.7 Shareholders Projected Net Return on First Phase Investment for PC’S                                                 

                     4.8 Projected Expenses and Net Return Phase One through Ten (01/03 to 12/12)

                     4.9 Airport and Airpark projected expenses and revenue

                     5.1 Proposed Allocation of Fifty Million Investor Return and Participation                                    

                     5.2 Investor Return and Participation                                                                                         

                     6.1 Infrastructure – Local Municipal District Bond Revenue Financing



7.1 Utilization of Capital Phase One (630 Lots = 400-Acres)

                     7.2 Gross Retail Revenue of Lots/Acres

                     7.3 Shareholders Projected Net Return on First Phase Investment PC

7.4 Projected Expenses and Net Return Phase One through Ten (01/03 to 12/12)

7.5 Airport and Airpark projected expenses and revenue                                                                 

                     Airport Conception Information                                                                                            Appendix A

                     Airport/Airpark Existing FAA Location                                                                                Appendix B

                     Airport Letter from DOT - FAA                                                                                            Appendix C

                     Airport Airpark Map                                                                                                              Appendix D

                     Property Wells Description & Photo's                                                                                   Appendix E

                     Letter from Seidler-Fitzgerald re Local Municipal

                     District Improvement Bonds Revenue Financing                                                                  Appendix F

                     Edwin E. Muehlbach, MAI Property Appraisal                                                                     Appendix G

                     SRI Corporation Documents                                                                                                  Appendix H

                     Skyline Development Company Officers Resumes                                                               Appendix I

                     Letter from Mr. Buttars re Municipal Incorporation                                                              Appendix J

                     Letter from Salisbury Homes                                                                                                 Appendix K

                     Ada County Development Services Director Jeffrey L. Patlovich

                     October 31, 2000 letter on the subject of Planned Communities                                           Appendix L

                     Property Description & Roads                                                                                               Appendix M         

                     David & Bruce Henion Resumes                                                                                           Appendix N

                     Morse Bros. Inc., member of Knife River Corporation

                     Letter of interest as the contractor of project infrastructure                                                  Appendix O





7.1 Utilization of Capital Phase One (630 Lots – 400-Acres)





Engineering                   $700.00                                       630                                    $441,000.00

Sewer System            $1,400.00                                        same                                  $882,000.00

Domestic Water         $1,750.00                                        same                              $1,102,500.00

Power (electric)          $1,200.00                                       same                                   $756,000.00

Paving                        $2,400.00                                        same                              $1,512,000.00

Concrete                    $1,100.00                                         same                                  $693,000.00

Pressure Irrigation        $900.00                                        same                                  $567,000.00

Storm Drain               $1,300.00                                        same                                  $819,000.00

Telephone                    $300.00                                         same                                  $189,000.00

Landscaping              $1,100.00                                         same                                  $693,000.00

fees, street

lights, etc.                     $1,100.00                                      same                               $693,000.00


(Fire Hydrants)             $800.00                                       same                                    $504,000.00


TOTALS                   $14,050.00                                                    630                            $8,851,500.00   

(Based on a 70-75ft. frontage lot)


Administrative & office costs:  includes Attorney,

Accounting, Planning consultants, salaries, rent,

Phone & supplies =                                                                                             $500,000.00              


*Sewer Treatment facility $2500 per lot x 1,260 residential lots

and an estimated 50 business establishments associated with

drip drainage fields located in open space, parks, etc. and

added expenses are included in commercial infrastructure cost)                     $3,275,000.00

*Electric Power capacity increase                                                                            $1,000,000.00                    

*Domestic & commercial water system                                                                    $500,000.00

*Commercial acreage infrastructure is estimated at $30,000.00

Per acre x 120 acres (includes off site sewer treatment facility)                      $3,600,000.00

*Waste Water Treatment Facility annual operation and

maintenance expenses                                                                                                   $100,000.00

TOTAL PHASE ONE & CORPORATE EXPENSES                                 $17,756,500.00

400-ACRE LAND PURCHASE                                                                            $2,100,000.00

TOTAL EXPENSES                                                                                              $19,956,500.00

Does not include:

Interest on Loan, Sales & Promotion

Commercial Infrastructure


7.2 Gross Retail Revenue of Lots/Acres:


    Phase One Development Gross Retail Revenue from all developments and leasing farm ground.


DESCRIPTION                  LOTS/                    TOTAL                      SALES TOTAL



Residential Subdivision

Small Lots (3.5 lots

Density per acre)                   570-L                      $30,000.00                                 $17,100,000.00


Residential Subdivision

Medium Lots (3 lot

Density per acre)                   30-L                        $35,000.00                                   $1,050,000.00


Lakeside Lots (Half-

Acre Lots)                             30-L                        $70,000.00                                $2,100,000.00


Farm Ground Leased           1,000-A   $100.00 per acre                                           $100,000.00



Commercial acreage            60-A                            $2.50s.f.                                     $6,534,000.00


Residential Sewer

Hook-up fees                         630-L                      $2,800.00                                        $1,764,000.00


Residential Monthly

Sewer service fees                               630-L x $15.00 x 12                                         $113,400.00


Commercial Sewer

Hook-up fees                         10 Sites x              $2,800.00                                              $28,000.00


Commercial Monthly

Sewer service fees               10 sites x $25.00 x 12                                                          $3,000.00


                                *TOTAL ANNUAL GROSS RETAIL

  REVENUE                                                                                      $28,792,400.00


 DEVELOPMENT & PROJECT EXPENSES                                                     $19,956,500.00

*FIRST PHASE PROJECT RETURN                                       $8,835,900.00


7.3 Shareholders Projected Net Return on First Phase

Investment for planned developments


Net Profit by close of Phase One                                            $8,835,900.00             

Percentage of return on investment                                          44.513% 


Higher start up cost in the beginning.  Increased commercial property sales will increase net return, with 120 commercial acres infrastructure developed in Phase One.  The ratios will not vary much for larger residential lots.  Costs increase, prices increase, density decreases, and result is close to the same per return.  20 Commercial sites are planned in a two-year period, with business establishments ranging from retail merchants to manufacturing/industrial entities.  Manufacturing/industrial establishments monthly sewer fees will increase based on services necessary and larger complexes will require more acres sold at $2.50 sf.  Second, Fourth, Sixth, Eight and Tenth Phase will not require a $3,600,000.00 commercial infrastructure cost as First, Third, Fifth, Seventh and Ninth Phase shall development 120 commercial acres. However, dependant upon the location of the Waste Water Disposal Facility/drip field technologies in relationship to residential subdivisions and commercial sites within the project will determine actual commercial acres with infrastructure brought to the curb.  300 commercial acres more then likely may have infrastructure brought to the properties edge in accordance with an efficient wastewater disposal design.     


Waste Water Treatment Facility off site expenses will be a one time expense as facility will generate revenue at $2,800.00 per lot sewer hookup fees, totaling $3,528,000.00 for residential lots (1,260-lots) and an estimated 20 commercial sites sewer hook-up fees totaling $56,000.00.  Third and Fourth Phase waste water treatment facility and associated drip fields in open space, parks, ball fields, etc., will be funded from revenue received from First and Second Phase facility/technologies for waste water disposal.  Likewise Sewer facility/drip field technologies cost of $3,275,000.00 for Fifth Phase shall be funded from revenue generated from hook-up fees from Third and Fourth Phases and all future Phases shall be similar as the waste disposal technologies will create revenue from hook-up and monthly service fees for operation, maintenance and repair.


Waste water treatment facility/drip field technologies $3,275,000.00 cost is forecasted in Phases One, Third, Fifth, Seventh and Ninth.


Electrical and domestic water project expenses will be the same as in First Phase for Third Phase developments with no expense for Second Phase as $1,500,000.00 off set cost for electrical/water resources is sufficient for 1,260-lots and 100 commercial sites.  Water monthly service and hook-up fees are not forecasted, as establishment of a project water district is limited to approximately 9 percent return on investment under Idaho State law and may be dedicated to the community and or eventual municipality.


All Phases take into consideration 400-acres property cost ($2,100,000.00) in order to evaluate all development cost as only 400-acres is developed annually.


7.4 Projected Expenses and Net Return Phase One through Ten (January 2001 thru December 2011)


The following annual development cost and net return projections reflect off site electrical/water resources developments and Waste water Disposal treatment facility/drip field technologies First, Third, Fifth, Seventh and Ninth Phases cost and generated revenue; corporation expenses; 630 residential lots infrastructure developed annually; 120 commercial acres developed First, Third, Fifth, Seventh and Ninth Phase; retail residential lot (630-L)/commercial acreage sales (60-A):



                                JANUARY 2003- DECEMBER 2012

PHASE  EXPENSES                          RETAIL REVENUE                         NET RETURN


(JAN 2003 –

DEC 2003)            $19,956,500.00                     $28,792,400.00                     $8,835,900.00      




(JAN 2004 –

DEC 2004)            $13,081,500.00     same                                                        $15,710,900.00


(JAN 2005 –          $19,956,500.00     same                                                        $8,835,900.00

DEC 2005            



(JAN 2006 –          $13,081,500.00     same                                                        $15,710,900.00

DEC 2006)           



(JAN 2007 –          $19,956,500.00     same                                                        $8,835,900.00

DEC 2007)



(JAN 2008 –          $13,081,500.00     same                                                        $15,710,900.00

DEC 2008)           



(JAN 2009 –          $19,956,500.00     same                                                        $8,835,900.00

DEC 2009)           



(JAN 2010 –          $13,081,500.00     same                                                        $15,710,900.00

DEC 2010)           



(JAN 2011 –          $19,956,500.00     same                                                        $8,835,900.00

DEC 2011)           



(JAN 2012 –          $13,081,500.00     same                                                        $15,710,900.00


DEC 2012)           

TOTALS:             $165,190,000.00                   $376,439,000.00                   $122,734,000.00


7.5 Airport and Airpark projected expenses and revenue


Consumers purchasing products over the internet has increased Air transportation of products and former President Clinton expressed although we have done a horrendous job in eliminating air traffic delays because of airplane congestions in America’s cities, much more effort is needed.  The eventual third 4,600 to 5,400 foot run way and air package delivery transportation network in association with airparks in the southwestern region of Boise Idaho is inevitable and upon purchase of an additional 1,435-acres, developing an airport site already FAA approved, will generate even further revenue:



DEVELOPMENT                             RETAIL REVENUE                         NET RETURN



AIRPORT (500-ACRES) Waste Water Treatment

Facility Off Site Cost of $3,000,000.00 (AIRPORT/


$1,500,000.00 electrical/water resources +

$2,000,000.00 property

Infrastructure                                        $150,000,000.00                   $143,500,000.00

                                                                ($300,000.00 per acre)


Infrastructure cost of $14,050.00 x 400-acres =

$6,020,000.00 + Taxiway

developments at a cost

of $7,500,000.00                                   $60,000,000.00                     $46,480,000.00

($150,000.00 per acre)




$185,710,000.00                   $686,439,000.00                   $312,714,400.00


Airport/Airpark expenses will be funded from set aside net return revenue annually and when airport/airpark properties are sold.




The following business plan summary was prepared by Sun River Investment, Inc. (“SRI” or the “Company”) to outline objectives and strategies for the Company’s planned community at Boise Idaho. The proposed community, Montebello, is a 5,218-acre development positioned on the leading edge of Idaho’s dramatic growth — growth projected to continue for some time to come. This business model was developed after analysis of market, development potential, a study of governmental regulations and political factors.  With an executive management team comprised of experienced businessmen, developers and legal specialists, it is the critically optimum time to begin the Montebello project. The proposals discussed assume funding of $50 million.


Our objectives are to identify and exploit (through development) areas in the United States where rapid growth is occurring. Although most geographic regions of the United States economy appear to be growing well, there are some areas that offer unusual opportunities for sustained growth, with factors that indicate a thriving local economy for years to come. The Boise, Idaho region of the northwest is such an area.

Boise, Idaho USA

1.1 Population

Market conditions in the proposed SRI acquisition area are solid and continue a 13-year cycle of sustained growth in the greater Boise area. This area of Southwestern Idaho has a population base of about 300,000, growing at a rate substantially higher than the national average. Growing at an annual rate of 1.7%, the Census Bureau (in its 2000 census) ranked Idaho the third-fastest growing state this decade for the percentage of population and housing growth, and the Boise-Nampa urban area was ranked the fourth-fastest growing this decade. Since the last official head count on April 1, 1990, Idaho’s population has grown by nearly a quarter of a million people, more than 24 percent. Only Arizona, at just more than 30 percent, and Nevada, at more than 50 percent, has seen greater growth.


1.2 Boise, A Regional Hub for Job Growth and High Tech Industry


Boise is the regional hub for government, business, cultural and transportation, making it a viable place to invest and develop. This geographic reality is evidence by the large number of fortune 500 companies having headquarters or major prescience in Boise. The area is perfectly suited for new business growth and is attracting new businesses at a rapid rate.


•    According to David Birch, president of Cambridge, Mass., based Cognetics Inc., in a recent interview in The Wall Street Journal, Boise is in the top 20 of 24 mid-sized cities as a hotbed for entrepreneurs.


The city is putting itself on the map as a center for business development, driven by a thriving high-tech industry, Twenty years ago, Boise had eight high-tech businesses; it now has more than 400. Spurring the growth is the success of Hewlett-Packard Co. and Micron Technology Inc. and the many local high-tech businesses that have spun off from those two giants. The city of Boise ranks seventh in the United States for growth in high-tech industry as of July 2000. The Boise area is among the top 25 cities for its share of the nation’s technology economy. The technology sector – which includes Internet, semiconductor and computer companies – employees about 20,000 people in Ada and Canyon Counties (SRI target region).

Other factors in Boise’s high ranking include Idaho’s high level of entrepreneurial spirit; good access to capital, a strong work ethic and pro-business cooperative relationship between government and Idaho’s universities. Quality-of-life factors also played into the ranking.


“You can’t transport this quality of life easily,” said Ed Zimmer, chief executive officer at Electronic Controls Co., a Boise firm employing 150. “The major factor behind our growth is the quality of the talent we’ve been able to attract and retain.”


Growth in every facet of the economy is strong and getting stronger. Cheap hydroelectric power rates are among the lowest in the nation. The relaxed quality of life has attracted national recognition.


1.3 Development in And Around Boise 


While Boise has limited room to expand, the area proposed by SRI, Southwest of the Boise, is wide open and presents a great investment potential as a result of low land costs. Areas such as Nampa and Caldwell to the west require only a 30-minute commute to the Micron Technology Plant. SRI’s proposed project is less than one-half that distance.


New home construction within the present Boise city limits is proceeding rapidly but is limited by cost for new development, and scarce available ground for residential subdivisions.  There are strong demand indications of future growth of Boise and the Southwestern region of Boise is an area capable of handling population growth with an anticipated residential lot absorption rate of 4,600 to 5,400 2001.  Given the proper initial offering of attractive products at the right price, SRI expects to be a player in the Boise and Southwestern Idaho market of residential subdivision developments, introducing 630 lots annually.


PC ‘S can be seen as a positive approach for large-scale residential subdivisions, rather then multiple subdivisions without the means for self-reliance.  Planned Community in its simplest form takes into consideration a mixture of community needs.  Since jobs are created from commercial, manufacturing and industrial entities, Ada County would be required to consider all reasonable property re-zoning request by land developer.




Ada County Planning and zoning ordinances underwent extensive revision in 2000.  Planned Community Districts in Ada County is addressed in Chapter 8 of the Ada County Zoning Ordinance (Chapter 9 was replaced by Chapter 8) and is available at or purchased from Biz Print, 600 Front Street, Boise Idaho (Bus. No.208-338-9746).  Zoning Designations, Development Services, Building fees, District Maps and other information’s is also available on Ada County Web Site.  Hidden Springs, Chapter 8, (PCD) can be purchased for $200.00 from Sterling Codifier 7600 Mineral Road Coeur-d’alene, Id. 83815.


                “Planned Community fees are negotiated by the director and approved by 

the Board of Ada County Commissioners pursuant to the provisions of Ada County Code, Title 8, Section 8-21-5F.  If submitting concurrent applications for a rezone to an urban base district and to the Planned Unit Development Overlay District, the applicant shall pay a single fee based on the largest area being rezoned.  Total of all proposed structures is submitted.”


1.4.1 Ada County Plan. & Zoning Regulations Cloverdale Residential Sub.


Albert Blaser envisioned Cloverdale Residential Subdivision many years ago and in 1997 Mr. Blaser contacted Ada County concerning his ideas and Robert C. Unger of Ada County Development Services, Building Division and Planning & Zoning, 650 Main, Boise, Idaho 83702, July 30, 1997 and August 21, 1997, addressed Mr. Blaser on the subject of “Property Status of your parcel located at Cloverdale and Kuna Roads.”  Robert C. Unger stated the following:


July 30, 1997:


“Under the provision of Section 8-4B-7 of the Ada County Code (Nonfarm Development), this property could be developed as a residential development of one (1) acre lots with the provision that 75% of the total property being considered must be deed restricted as open space for 15 years.  The gross density for a nonfarm development is one dwelling unit per five (5) acres.  Nonfarm developments may be permitted through the Planned Development procedures within Chapter 9 (changed to Chapter 8 -2E) of the Ada County Zoning Ordinance.”


August 21, 1997:


Under the provisions of Sections 8-5-2 and 8 9A-1 of the Ada County Code, (Rural Residential), this property could be developed as a planned residential development of one (1) acre lots.  The gross density for this development would be one (1) lot per acre.  Planned residential developments may be permitted through the procedures under Chapter 9 (changed to Chapter 8 -2E) of the Ada County Zoning Ordinance:


Under the Planned Unit Developments under Chapter 9 of the Ada County Zoning Ordinance, if the development has central sewer and central water, and all of the utilities, the density required can be reduced from 1 acre in size, to 3 or 4 lots per acre, as desired.


This letter is being provided for informational purposes with no implications that any development is or will be approved.  Planed Developments may be approved within the County by the Board of County Commissioners, after required public hearings before the Planning & Zoning Commission and the Board of County Commissioners have been conducted.”


Ada County Zoning Ordinance provision for PC’S in Ada County:


                October 31, 2000 Jeffrey L. Patlovich, Director Ada County Development Services, at the request of Skyline Development Co., addressed Sun River  Investment regarding the Ada County Zoning Ordinance provision for Planned Communities in Ada County:


                “Title 8, Article 2E of the Ada County Code contains the Planned  Communities provisions.  These provisions were added to the Ada County Code in 1990 and amended in 1995.  The entire Title 8 was recodified in June 2000, however the Planned Communities article was not changed except for renumbering to coincide with the new numbering system incorporated in the new Ordinance.).  There is one approved Community in Ada County called Hidden Springs.  It is currently being developed and built out.  The Planned Community regulations remain the same as when Hidden Springs was approved.


A Planned Community is permissible in Ada County provided that it meets the requirements of the Ada County Comprehensive Plan and the provisions of Article 8-2E of the Ada County Code.”


Ada County Board of Commissioners addresses and phone numbers are as follows:


 Ada County Administration Building, third floor, 650 Main Street, Boise, Idaho, 83702.


           B.  Office Phone:  (208) 364-2333 - Fax No.:  (208) 364-2331


 District 1 - Commissioner Sharon Ullman – Office:  (208) 364-2335 or Home:  (208) 362-6632, or by e-mail at work, or at home for greater confidentiality,


 District 2 - Commissioner Roger Simmons (208) 364-2333 or by    e-mail at


 District 3 - Commissioner Grant Kingsford


1.4.4 Ada County Development Services Office, Courthouse at 200 W.     
Front, 2nd Floor, Boise, Idaho 83702 

Asst. County Engineer


1.4.5 District Map Images


These are general information maps regarding taxing districts and planning areas, which may be considered during the review of development applications submitted to Ada County Development Services. Some boundaries are subject to change and you may wish to contact Development Services for current information.


· AIRPORT DISTRICTS - Boise Air Terminal - (Airport Influence Areas)
















As the name indicates, planned community districts or Planned Communities (PC) are designed literally from the ground up. All factors, including population growth, demographics; regional impact and sales potential are carefully reviewed before construction begins.


2.1 Demand Indicators


Determining the right location for Montebello, SRI’s proposed PC, was based on multiple factors, including:

Accessibility of property to the I-84 interstate access and the new I-84 interstate access currently being planned.

Distance from Boise and Leading Treasure Valley Employers providing 45,114 jobs and increasing as of September 2000:


          1.  Mountain Hone Air Force Base - 10,076

          2.  Micron Technology Inc. - 9,500

          3.  Albertson's Inc. - 4,500

          4.  Hewlett-Packard Co. - 4,000

          5.  St. Luke's Regional Medical Center - 3,030

          6.  Boise School District -3,000

          7. - 3,000

          8.  Saint Alphonsus Regional Med­ical Center -2,838

          9.  Meridian School District -2,600

          10.  J.R. Simplot Co. - 2,570


Source:  Each employer provided the figures,” as reported by John Tucker of the Idaho Statesman September 24, 2000.


The abundance of water resources.


Low infrastructure costs.


Prime property acquisitions through family connections.


County recognition of Planned Community Districts.


Green spaces and open land areas.


Existing ponds and areas available for lake developments.


Distance from other cities and potential “areas of impact.”


Fire, hospital and transportation facilities.


Nearby upscale developments, including golf courses.


Other nearby recreation: Boating, fishing, hunting, and skiing.


Hydro Electrical Power is among the cheapest rates in the U.S.


Healthy local, regional, and Idaho economic indicators:


Ada and Blain County residents have the highest per capita personal income in comparison to other counties in Idaho (1999 Census bureau).

Growing at an annual rate of 1.7%, the Census Bureau (in its 2000 census) ranked Idaho the third-fastest growing state this decade for the percentage of population and housing growth, and the Boise-Nampa urban area was ranked the fourth-fastest growing this decade.

In the year 2000, Idaho was ranked sixth fastest growing state in the U.S. (John Church, Principal, Idaho Economics, at the Boise Metro Chamber’s Economic Outlook Forum 2000).

Idaho ranked 9th fastest real estate appreciation in the U.S. (Idaho Statesman 6/00).

Employment growth is surging in the Boise Metropolitian Statistical Area (MSA) due to renewed growth in many of the state’s high-tech markets.  Overall non-ag employment growth in the state will slow to 2.2 to 2.6 percent pace in 2001 and 2002.  By years end 2000 however, non-agricultural employment is expected to have increased by 3 to 3.2 percent over 1999 levels.  For the twelve months period ending August 2000, non-ag employment in the Boise MSA increased by close to 4.6 percent, creating 9,600 new jobs compared to the prior twelve-month period.  While this is not the 6.7 percent pace of non-ag employment growth that the Boise MSA experienced in 1993 and 1994, it remains over twice the national rate and one of the fastest growing MSA’s in the U.S.  (John Church, Principal, Idaho Economics, at the Boise Metro Chamber’s Economic Outlook Forum 2000).

The May 29, 2000 issue of Forbes magazine announced that Idaho ranks fifth on Forbes list of best places in the United States to do business and advance a career. The magazine ranked 200 metropolitan regions by eight business categories, including wage and salary growth, job growth and high-tech clustering. Boise climbed from 49th last year to fifth this year.

Gross Domestic Product (GDP) estimation for next 5 years of 3.2% annually (Idaho Statesman 6/00).

With all these factors considered, the Ada County Boise rural/MSA was found to have the ingredients necessary to development an attractive and profitable development. 


2.2 SRI Proposed Development


Montebello, SRI’s proposed planned community will be a mix of residential, commercial, manufacturing, industrial and business park areas.  Prior to incorporating the city of Montebello, Ada County ordinances for land use must be adhered to.  Infrastructure for sewer and water is the key to lot density of 3 to 4 lots per acre for residential subdivisions and half-acre lakeside lots for spacious homes. 


2.2.1. Phase One. 


First Phase planned developments are as follows:


Residential uses would come first with entry level housing predominating.  These homes on lots of 7,700 square feet would produce 4 dwelling units per gross acre (70’ by 110’ lot size) for residential subdivisions.  The value of homes in this class would be from $110,000.00 to $125,000.00 and would make up to 65 to 70% of Residential community homes.  MAI Appraisal established small lots averaging 7000 square feet (80’ by 88’) from $25,000.00 to $28,000.00.  Increase of lot size is consistent with Idaho market for $30,000.00 per lot sale. 


Actual Lot sizes are dependent upon topography, planners, engineering specifications and developers desired lot density in accordance with municipal and county ordinances relating to lot density per acre. 


A second level of homes on lots of 10,010 square feet would produce about 3 dwelling units per gross acre (91’ by 110’ lot size) for residential subdivisions.  The value of homes in this class would be $130,000.00 and up and would make up 10 to 20% of the community.  30 lots are planned.  These lots will sell for $35,000.00. 


Larger homes on half-acre lots of 21,780 square feet (147’6” by 147’6”) abutting lakes or golf courses are planned for sale to custom builders who charge according to market conditions.  30 lots are planned.  These lots will sale for $70,000.00.


Generally 20 to 25% of available ground, dependant upon lot density per acre is designated for sidewalks, driveways and approximately 12’ feet of the street.


There is a large unfilled demand for finished lots in the Boise Metro area.  A number of local developers have been unable to meet their available sales and production schedules due to scarcity.  One developer located in Utah has a shortfall of 200 homes, this year.  Others even higher.


Zoning on all properties is a prerequisite for development.


Commercial areas will be provided and will likely produce revenue at $2.50 square foot.  Approximately 110 acres is planned in Phase One and will be subdivided into lots as determined by future users.  40-acres at present next to railroad tracks within the project is zoned commercial.  Properties within the civic center district will be on the top of SRI’s priority, establishing commercial areas for retail merchants. 


15-acres in the civic center district of the Planned Community is seen as gifted land for the community in order to establish city hall and municipal governmental buildings and community recreational facilities and in the process, establishing business districts. 


15-acres will be reserved as the school site.


Additional amenities including decorative ponds and lake as designed to the topography and location in the project. An appropriate size park will be in the master plan to accommodate ball field and other central activities.  40-acres is envisioned but planners will determine actual size, as several 10 to 15-acre parks may be more feasible for the community and funds allocated for these developments is included in landscaping cost for each lot infrastructure.


Total acres proposed to develop in First Phase consist of 400-acres.  Total purchase price of $5,250.00 per acre as an average property acquisition cost, establishes $2,100,000.00 needed for First Phase development out of the total land purchase.  The remaining 3,315-acres can and will be developed as needed.


2.2.2. Phase Two & all Phases following


The second phase of development will be similar to first Phase with added priorities establishing more commercial ground for future sales concurrent with anticipated goals.


Municipal Incorporation of the project with a minimize size of 640-acres is likely and is allowable under Ada County Ordinances and Idaho State Law.  Once 630 homes are established within the Planned Community, and prior to second phase commencing, issues of city incorporation can be addressed.  Long-established family and business connections and ongoing negotiations with jurisdictions anticipate favorable zoning decisions paving the way for the proposed commercial acreage designated for commercial, manufacturing and industrial areas.


2.2.3. Beautiful Montebello


This Urban Design/Master Planned new city is offering the lifestyle and ambiance for which you have been searching, with CCR’s designed to preserve this quality of life.


*RESIDENTIAL:  Golf course and lakeside homes, sky-park homes (taxi your plane to your own hangar).  Residential areas offer parks and green belts for each community throughout the city.


*VILLAGE SQUARE:  Complete with carillon tower, water fountains and gardens.


*TOWN CENTER:  Civic/municipal facilities, retail outlets, malls, restaurants and sidewalk cafes – all amidst gardens.  Coupons for purchasing all items necessary to sustain life within the city of Montebello shall be available to all residents, merchants guarantying savings in relationship to leaving the city to purchase items elsewhere.


*TOWN GOVERNMENT:  Elected officials assume control of Montebello cities government at a time when construction is winding down, consisting of several phases, and when the city is 80% occupied.  Public company Board of Directors will be in complete and full charge of the development of Montebello, encouraged to adhere to the design of SRI infrastructure incorporating a successful PUD rather then something thrown together to sell stocks.


*FINANCIAL:  Banking/financial institutions, business parks.


*INDUSTRIAL/MANUFACTURING: Industrial parks, satellite industry, rail, truck, inter-modal terminal.  Planned Free Trade Zone.


*EDUCATION FACILITIES:  K through 12, Community College and vocational training, encouraging skills and trades.  School sponsored field trips, sports and activities, drug prevention classes at all ages in school – business centers, parks, lakes, and golf courses will be encouraged to maintain drug free zones, enforced by city police.  Schools play areas fenced and security protection for children while outside. 


*HEALTH & FITNESS FACILITIES:  Gym/spas and health care centers for all ages.


*ADULT FOSTER CARE HOMES:  Elderly shall be provided for and accommodated and no one because of their disability will be refused.


*ENVIRONMENTAL:  Tertiary water treatment, lakes, wetlands for wildlife refuge, natural preserves, etc., and most advanced renewable sewage treatment plant and possibly solar salt ponds producing electricity.


*WATER:  Pure artesian aquifer feeds the city with water storage designed into the city infrastructure.


*HOMES/BUILDINGS:  Designed with the most solar efficient devices on the market and structures will have materials built into their infrastructure diminishing fire and insect damage, i.e., metal studs/trusses, metal or tiled roofs, vinyl, metal, brick, stucco and flat rocks for siding materials.  Fences made from bricks, concrete retaining walls or flat rocks for residential separation from business community.


*UTILITIES:  Natural gas and electrical services underground.  Electrical services tied into to possible solar salt ponds and wind generating facilities in out lining SRI properties.  Backup electrical power source ran from generators either built into each home, building, etc., and or several main facilities capable of supplying the PUD needs in case of electrical power outages and or natural gas shortages.  Generators will run on diesel, methane fuel and or steam, requiring boilers in the city power station.  Storages facilities designated for emergency electrical/heating fuel supplies will be maintained at all times at their full capacity.


*CLINICS:  Dentist and Doctor Offices.


*HOSPITALITY:  High quality hotel/resort with dining, meeting/conference centers, etc.


*SPORTS & LEISURE:  Cinema, boating on lake(s), tennis courts, soccer, baseball, football fields and swimming pools.


*EQUESTRIAN FACLITIES:  Riding trails, boarding/training facilities, arena, etc.


*AIRPORT & AIRPARK: Airfield connected to taxi ways allowing residence access to the runway for those whom have their own smaller plains and manufacturing and industrial complexes with access to airport taxiways.


*HIGH TECHNOLOGY/TELECOMMUNICATIONS: Wide bandwidth fiber optic cable installed with infrastructure, providing ISP and state-of-the-art telecommunications.  Every home supplied with satellite dish/received and computer, printer, monitor, scanner, fax, etc.


*METROPOLITAN BOISE:  Seven miles from Montebello additional enhancements include:  Boise Hospitals and Medical Centers, Boise State University, Boise City Theater and the Performing Arts, Idaho Shakespeare Festival, Art Galleries, Museums and theaters, major shopping malls, auto & truck sales, and many other services associated with a large metropolitan center.


*REGIONAL:  World Class Skiing facilities – beautiful Sun Valley Lodge.  River rafting trips, lakes, fishing, boating, hiking, horseback riding, parks and camping.




The proposed Planned Community lies south of the Desert View Subdivision, which is single-family homes on one acre parcels, with its own central water facility and 8 to 10 miles Southwest of Boise and 5 miles east of the ‘area of impact” of the town of Kuna, Idaho with an estimated population of 5,438.  Other cities distance from the proposed Planned Community and population are as follows:


Nampa is 20 miles to the West, with a population of 50,000;Caldwell is 30 miles to the West, with a population of 30,000; Meridian is 14 miles East & South, with a population of 40,000 and Silver City, at one time the largest silver mine in the West in Silver Valley is 45 to 50 miles with a population of 500.  Silver City is 35 miles from Idaho City, a small resort community known for it’s past in silver mining and the first penitentiary of Idaho, now a museum.  McCall is 90 miles North of the proposed Planned Community and is famous for ice sculpturing and skiing and Sun Valley is 140 miles Southeast and is famous for skiing.  It’s been said Bruce Willis and Demi Moore own the town of Hailey near Sun Valley resort and the town is a major tourist attraction.




Civic center, business district, parking lots and recreational and entertainment facilities would be the northeast quarter of the intersection of Kuna Mora Road and Cloverdale Road.  Commercial and industrial areas would be along the existing Union Pacific Railroad line just to the south and zoning ordinances for Ada County land usage of areas within the proposed Planned Community would require the developer to request changes in accordance with Planned Community Master Plan. 


An active railroad crosses the project just south of Kuna Road.




The Whitney fire district provides fire protection.   Police protection is provided by the Ada County Sheriffs Department and the schools are in the Kuna School District.


Ada County electors voted on local bonds in order to construct new Schools within Kuna School District September 19, 2000, as growth is increasing in the area.  The bonds were passed.  The new Schools will be located approximately 7 miles from the proposed Planned Community.  Schools can be built within the proposed Planned Community and within easy walking distance of subdivision homes.




All utilities necessary for the development are available except sanitary sewer and culinary water.


Natural gas is abundant and readily available.  Electricity is readily available and abundant hydroelectric resource in Idaho result in some of the lowest rates to consumers in America.  Telephone hook-ups are likewise no problem for proposed Planned Community. 




Sanitary sewer treatment facilities will be developed on site using the latest technological methods meeting local and state government standards.


Wastewater will exceed 1993 Clean Water Act standards.  Traditional methods in association with “new technologies” would be used.  This water could be used for irrigation of open ground, parks, public areas, etc., during the growing season and stored in decorative ponds during the off-season.  Various methods for wastewater and sludge treatment “new technologies” have been explored.


Privately owned wastewater treatment facilities:


$3,275,000.00 is projected as off site cost for over 1260 residential lots and 50 commercial business sites.  Sewage lines interconnecting all lots, with enough capacity for two phases of developments is allocated separately. 


The average wastewater disposal treatment hookup fee in Boise is $2,800.00.  1,260 residential lots/20 commercial sites will generate $3,584,000.00 in revenue.  Revenue would be set aside for wastewater disposal treatment facility construction and monthly service fees will allocate funding for operation, repair and maintenance.

Additional revenue from $15.00 monthly service fees for homeowner’s wastewater disposal will generate approximately $230,400.00.00 annually, providing services for 1,260-lots/20 business sites.  Facility/drip field technologies allows for 30 additional business sites, yet financial projections only establish 10 business sites annually.

Wastewater disposal treatment facilities will be designed eliminating the need for many employees.  One engineer or qualified professional in this industry could handle operations and maintenance.  Major repair work would be contracted out.


Boise and Idaho Public Utility Commission Engineers will support all technologies that meet Idaho Department of Environmental Quality and Central Health regulations.


New technology wastewater disposal treatment facilities recommended for further review:


Waste disposal technologies improvement in recent years have greatly reduced the adverse environmental impacts associated with past waste disposal practice.  Improperly operated landfills have been linked to soil, surface, and ground water contamination.  Insufficient pollutions control on incinerators has led to air quality problems.  Incineration is considered as a practical step for achieving safe disposal of non-recyclable municipal and industrial wastes.  Modern incinerators are more secure than ever and adverse environmental impacts can be detected and properly addressed:


EnerWaste International Corporation, P. O. Box 1194, Bellingham, WA 98227 - Facsimile: (360) 738-1376 or e-mail:


Drip irrigation, wastewater treatment and disposal for land developments:


Waste Water Technologies, 9217 W. Hwy 290, Suite 100, Austin, TX 78736 – Tel #. 512-288-7577 – Fax #. 512-288-4730 or email:




Drinking, household, and irrigation water will be provided by wells pumping from the pure water aquifer that underlines major parts of the property.  There are 12 water wells located within properties.


The Idaho public utility commission for water hookup fees and monthly water services would allow additional revenue.  9 percent profit on investment and operation, repair, maintenance and expansion cost is allowed.  Developer must establish a water district.  The Idaho Public Utility Commission does not regulate Water/meter hookup fees.




Existing county and state roads serve the area of the proposed Planned Community adequately.  Ada County maintains and improves these roads.  Roads within the development boundaries will be financed by the bond issues and dedicated to the county.


In 1972, Idaho Congress passed legislation that allowed county’s to originate Highway District that has authority over every street and road in the county, to include every road or street in every city within the county.  Ada County is one of the only county’s in Idaho that adopted a County Highway District and established policies relating to the collection of impact fees, new road construction and design.  The Ada County Highway District spends about $7,900 a year to maintain a mile of residential roadway.


                         EXECUTIVE OFFICFERS & MANAGEMENT


SRI has assembled a management team comprised of leaders in the development and construction industry.  Sam Sarich has more than 40 years of experience designing custom homes and modular structures. Kathleen Blaser brings extensive management skills to the Company to ensure that corporate matters will be handled expeditiously and professionallyTed Johnson, President of Skyline Corporation, is general partner of Skyline Development Company and one of three of the largest developers in Boise, Idaho.  Ted and Albert Blaser were personal friends and Ted was chosen by Mr. Blaser prior to his passing to serve as project manager for SRI’S proposed Planned Community.


3.1 Kathleen Blaser – President & Secretary


                Mrs. Blaser worked side by side with her late husband, Albert Blaser, whom envisioned Montebello in 1970 and prior to his                 passing, was actively involved in planning and development issues relating to Ada County, Idaho in regards to Montebello.                  Kathleen is knowledgeable in real estate values.  She has participated actively business. She has played an active role in the                 creation of the proposed Planned Community District (PC).


3.2 Albert Blaser, Montebello Founder


                Albert E. Blaser retired at the grade of Captain from the United States Air Force in 1945, after serving 48 months as an                 Intelligence Officer, most of this time serving in Germany, France and Switzerland. Mr. Blaser then stayed in Europe for                 another year attending the University of Berlin and subsequently graduating from the University of Utah in 1947 with a                 Bachelor’s degree in languages.


                Mr. Blaser went into the development and the construction business shortly after graduating from the University of Utah and                 has been in business for over 40 years. During this period of time Mr. Blaser developed 143 subdivisions in Ada County,                 Idaho, several subdivisions in Canyon County to the West of Boise; a total of 3,400 homes and 750 duplexes, receiving                 honors from the Federal Housing Administration.


                Mr. Blaser, his wife Kathleen, and Sam Sarich founded Sun River Investments Inc., and for a crowning achievement, Mr.                 Blaser is credited with forming the corporation and planning the development of an entire city.


                Mr. Blaser had a keen intellect for real estate and development, and was noted as a visionary with a wealth of energy and                 was extremely talented in the “Art of the Deal”.


                Mr. Blaser was well known by the housing industry in the Boise area and was known as someone who served his community                 well and had a great humanitarian heart to needy children. Having raised a family of fourteen, many now with doctorates,                 then adopting his last son one hour old after birth, now twenty years of age, Mr. Blaser was the consummate communicator.


3.3 Sam Sarich – Chairman Vice President, CEO


                Mr. Sarich came to the United States in 1954 from an Iron Curtain country to pursue freedom and opportunity to use his                 education and training in engineering and construction.


                Education: Primary and Engineering in Zadar, Croatia, Ohio State University, and Poly-Tech in Pomona, California.

                1954-1960: Dressler Engineering Columbus Ohio. Structural engineering. Great Western Development Co., Los Angeles,                 Ca. Engineering, development, and construction of projects specifying and using marble. Required mastery of old world                 marble and stonemasonry techniques and skills.


                1960-1969: Founded Sarich Construction Company. Specialized in developments featuring advanced construction                 techniques and commercial and residential development.  Construction of custom designed celebrity homes including Za Za                 Gabor, Groucho Marx, Dennis Weaver and others, and the addition of a manufacturing division attracted the interest of the                 developers of Levittown in New York, ultimately leading to the sale of the business to the Levitt interests.


                1969-1970: Designed production facility for Fleetwood industries under John Craen, President. Devised and implemented                 production techniques leading Fleetwood to become undisputed industry leader in manufactured structures, now with nearly                 3 billion in annual sales with outstanding profitability.


                1970-1980: Founded American Modular Systems Inc. (AMSI) near Salem, Oregon. Pioneered advanced design of                 component-built multistory buildings. Designed, built, and sold multistory buildings for business, education, medical,                 military, hotel, and residential. Recession with 23% interest drove primary customers and buyers out of business. Factory re-                tooled to manufacture and ship structures to Alaska military government buyers of major installations. Structures were                 provided for high-priority government Pentagon-sponsored projects. Factory although presently for sale, could be re-tooled.                 SRI opportunities are presently consuming Sam’s entire schedule, yet Sam is engaging other opportunities which may result                 in production line manufactured structures exported overseas as the need for inexpensive housing is of great need throughout                 the world.


                1989-Present: Founded Manteca, California factory to specialize in the mass manufacture of classrooms now needed in the                 state. From a beginning of 75 employees, the factory now has a workforce of 375 employees, proving to be a major                 employer in Manteca and producing 25 new classrooms every working day. Mr. Sarich’s three sons, Daniel, Anthony, and                 Sam, after completing university education, each followed their father into construction. Daniel operates the Manteca factory                 with Anthony. Sam operates Sarich Construction in Lake Oswego, Oregon, developing home sites and building quality                 custom homes.


                1990-Present: Developed product lines of American Manufacture designed for export. Arranged export financing through                 EXIM Bank, qualifies as international exporter. Shipped products internationally. Traveled in Europe and Asia visiting                 family and business connections.


                1999 to Present: With Albert and Kathleen Blaser, Mr. Sarich founded Sun River Investments, Inc. (SRI) to develop an                 entire city near Boise, Idaho. Mr. Sarich continues to pursue projects of great interest to him and his corporate business                 associates and investors. In particular, Mr. Sarich takes a great personal interest in business and projects with the prospect                 and capacity to train and employ a large workforce of skilled workers. Sam envisions the expansion of export of useful and                 beneficial American products and technologies as a work force for meeting the growing demand for homes and communities                 in the world.


3.4 Ted Johnson, President, Skyline Corporation/Skyline Development  Company (Project Manager)


                Skyline Corporation is the general partner of Skyline Development Company.  The company's vice president is Tucker M.                 Johnson. Paul Johnson currently operates the company's Utah office.  Skyline Development Company's latest project pro­                poses to build 500 homes on Eagle Road at Chinden Boulevard, Boise, Idaho. Skyline Development Company (SDC) is a                 highly respected Residential and commercial developer of Boise Idaho.  Ted Johnson, president, and his sons have the                 respect of SRI and the community at large for their significant accomplishments and community involvement. SDC's has                 extensive experience with development infrastructure cost, County and State regulations and Laws relating to developments                 in Idaho.


                The ability to locate property in the right areas and develop proper­ties at the right time has made Mr. Johnson one of three                 developers in Idaho referred to by The Idaho Statesman as “The men who changed the city of Boise.”  After putting in roads,                 jogging paths, parks and utilities, SDC sells lots to contractors or individuals who then erect houses or in the case of                 commercial property, an entire complex such as the 160-acre Boise Research Center.  Since 1967, Skyline Development has                 grown to be the largest Land Develop­ment Company in Idaho and at present is a family owned and run business with                 offices located in Boise, Idaho and Lindon, Utah.




                 DEVELOPMENT                                                                                          NO. OF LOTS


                 Big Sky Subdivisions No. 1, 2, 3 & 4                                                              68-acre lots

                 Breckenridge Subdivision No. 1, 2, 3, 4, 5, 6, 7, 8 & 9                                265 lots

                 Candlestick Park No. 1, 2 & 3                                                                           103 lots

                 Clover Creek No. 1, 2, 3, 4 & 5                                                                         168 lots

                 Cloverdale Park No. 3 & 4                                                                                  61 lots

                 Cobblestone Subdivision                                                                                    13 lots

                 Dartmoor Subdivision                                                                                         15 lots

                 DeMeyer/Hickories Complex                                                                            784 lots

                 Foxmoor                                                                                                                56 lots*

                 Frontier Subdivisions No. 1, 2, 3, 4, 5, 6 & 7                                                  386 lots

                 Huntington Park Subdivision No. 1, 2, 3 & 4                                                  156 lots 

                 Mallard Landing Subdivision No. 1, 2, 3, 4, 5, 6, 7 & 8                              362 lots

                 Michael                                                                                                                   120 lots*

                 Rockhampton                                                                                                        450 lots *

                 Skyline Subdivision No. 1, 2, 3, 4, 5 & 6                                                        290 lots

                 Southwestern Subdivision No. 1, 2, 3, 4, 5, 6, 7, 8 & 9                               180 lots

                 Vienna Woods                                                                                                      280 lots*

                 Whispering Cliffs No. 2                                                                                      15 acre lots

                 Winterhawk Complex                                                                                         141 lots

                 TOTAL NO. OF LOTS DEVELOPED                                                       3,913 lots

Boise Research Center (Hi-tech Complex)                                                 160-acre

*Projects/lots for sale August 2000




SRI business activities:


Infrastructure and project development cost analysis.


Feasibility Studies of Environmental Issues and Market Absorption and impact studies. 


Advertisement of Project and Marketing of Lot/Acre sales.


Obtain the necessary approvals from Idaho Department of Environmental Quality and Central Health for Wastewater Disposal Treatment Facilities/Drip drain fields and ensure domestic water resources meet regulatory standards.


Establish Local Improvement Districts and coordinate Municipal District Bond revenue financing with Seilder Fitzgerald.


Insure all regulatory laws are adhered to and obtain necessary property zoning for proposed PCD from Ada County and development/construction permits required for all projects.


SRI will work alongside Skyline Development Company whom shall provide technical infrastructure design/development management for residential subdivisions, commercial, manufacturing, industrial sites, civic areas, parks and lakes.


Ensure that contractors build to the highest industry standards.


SRI will work alongside contracted engineering and land planning/designing firms.


Submit to Ada County a Ten Year Master Plan of residential subdivision and business/commercial developments and renew Ada County approval for the present designated areas FAA approved airport site located within properties of the proposed project.


3.6 Design and Infrastructure Developers


                SRI is negotiating with a number of firms qualified to provide these services, which will be let by negotiated bid.  SRI will                 outsource certain tasks to experienced professionals who will be responsible for design of the proposed Planned Community,                 submitting Platt Maps and for developing the ten-year master plan. Companies include:


·              CSHQA Architects-Planners, a 111-year-old Boise based firm with 170 employees offering civil, structural, electrical and

                mechanical engineering.


                McCarter - Tuller - Chronic, Inc. (MTC) of Boise has worked with Albert Blaser for number of years on SRI's proposed                 project. In this regard, the company offered Engineering And surveyors reports of the Desert View and Cloverdale                 Residential Subdivisions to Ada County, which met with tentative approval subject to in-house central wastewater disposal                 treatment facilities.


                Morse Bros. Highway Construction Inc. (CB#2101) is a member of the Knife River Corporation family of Companies, a                 wholly subsidiary of MDU Resources Group, Inc., which is a publicly traded company on the New York Stock Exchange                 (MDU).  Morse Bros., Inc. has been in business for over 60 years as a highway contractor and sand and gravel, ready-mix                 and A/C material supplier.  Morse Bros., Inc. is interested in becoming the contractor for the construction/infrastructure of                 the Montebello project.


                Starship Financial Corporation/First Regency Development Corporation, 264 South LA Cienega Boulevard, Suite 1069,                 Beverly Hills, CA 90211-3302.  Levius S. Bogdan, firm is unquestionably among the finest development company’s in the                 world and his reputation in land development, architect design and international finance is a great asset to SRI.  Mr Bogdan’s                 firm’s designs of an Airport prepared for China is first class and Mr. Bogdan’s firms projects are among the finest in the                 world.  The firms Florida projects include the Excelsior Beach in Sarasota and the Savoy Condominiums in Naples.  World-                renowned Montevideo, Uruguay Hotel illustrates the firm’s creative and multi-level design.  Starship Financial is moving                 forward on other projects in Europe and New York.  Mr. Bogdan is willing to work with SRI’s partnering developer and                 infrastructure contractor selected by SRI.




3.7.1. David C. Henion


·              David C. Henion has been chosen by SRI to design and construct commercial buildings associated with wastewater disposal                 treatment facility.  David is prepared to work alongside his son Bruce and those professionals contracted by SRI to design                 the Planned Community, develop the ground, and coordinate evaluation and review of SRI Planned Community proposals                 with Ada County, providing answers to questions resulting from public review and debate.


·              Mr. Henion has built over 700 commercial concrete tilt up, steal and pole buildings and hundreds of houses during his 45                 years in the construction industry. In the 1 970’s he worked as a subcontractor on the construction of the Sacramento                 California State Capitol. Since then he has constructed large buildings (100 ft. by 300 ft.) through­out Oregon. His                 construction business, Busy Bee Construction, built a strong reputation as a master builder, superintendent of projects and                 supervisor of personnel. On September 25, 2000, Mr. Henion finished his 701st commercial building, a 60ft. by 100ft.                 Concrete Stem Wall Pole Building and was completed in less than a month.  Mr. Henion changed the name of his business to                 Do All Service. Buildings constructed by Mr. Henion range from heavy, medium (Safeway Grocery Store) and light                 commercial to farm dairies, mint storage warehouses, hay storage, shops, garages and portable buildings.


3.7.2. Bruce W. Henion


·              Bruce W. Henion is SRI's Executive Assistant.  Mr. Henion is an author and the owner of Bruce Wayne Henion Trucking.                  Bruce is well versed with the proposed Planned Community, Ada County Planning and Zoning Ordinances, Department of                 Environmental Quality and Ada County Central Health regulations.  Bruce is an excellent spokesman and represents SRI in                 a manner acceptable to all parties involved.  Bruce has knowledge in the construction field and has the ability to work with                 professionals to get the job done.  Bruce’s research abilities and pricing of proposed project developments, with input from                 professionals in land development, has given SRI complete confidence in cost and net return projections.


Financial Objectives


4.1 Source and Use of Funds


                At this time, SRI seeks an investment of $50 million to develop Montebello, a planned community southwest of Boise,                 Idaho.  Funds will be used to purchase 5,218-acres at a cost of $5,250.00 per acre, totaling  $27,394,500.00; on/off site                 infrastructure development, land development; engineering, utilities, waste water treatment facility, legal, accounting and                 salaries totaling $17,856,500.00; and additional property purchase of approximately 1,435-acres at an estimated cost of                 $3,309.41 per acre, totaling $4,749,000.00.  To maximize shareholder value, SRI intends to implement the business plan                 (development).


4.2 Appraisal


                Edwin E. Muehlbach, MAI: Real Estate Appraiser of 401 Front Avenue, Suite 201, Coeur d’ Alene, ID 83814, set forth a                 preliminary estimated range in lot values of 1,662 acres, consisting of 5,000 lots, and dependant upon the approval of SRI                 PC by State, County & City of Boise, Idaho.


                On July 12, 1999 Edwin E. Muehlbach inspected 3,025 acres both from the air and along the perimeter roads. Based upon                 that inspection, the preliminary plan from the architect, discussions with numerous persons knowledgeable in the local real                 estate market, review of residential lot sales, absorption studies, growth analysis and competition a preliminary range in lot                 values was developed for the proposed development:


                As of July 22, 1999 the indicated range in lot values of 1,662 acres are as follows:


 Small lots (about 7,000 sq. ft. each) = $25,000 to $28,000

 Medium lots (10,000 sq. ft. each) = $31,000 to $35,000

c. Large lots (over 15,000 sq. ft. each) = $45,000 to $55,000



                According to Muehlbach, “The range in lot prices reflects that currently experienced in the Boise, Idaho market. The subject                 subdivision development is consistent with that being sold and developed in the greater Boise area. Therefore, the range in                 lot values noted above should be competitive and well received by the local real estate market.”


4.3 Financial Projections of Appraised Properties


Mr. Muehlbach’s appraisal:

Small lots (Located anywhere in the development):

a. 845 lots @ $27,000.00/lot:                                $22,815,000

b. 1,065 lots @ $28,000.00/lot:                            $29,820,000

c. 1,420 lots @ $29,000.00/lot:                             $41,180,000

SUB TOTAL SMALL LOTS:                          $93,815,000

Medium sized lots (Located South of the sagebrush property extending to Kuna Mora Road):

         a. 1,070 lots @ $33,000.00/lot:                               $35,310,000

Large lots (Located on sagebrush ground east of Cole Road):

         a. 600 lots @ $55,000.00/lot:                                   $33,000.000

TOTAL AGGREGATE VALUE OF LOTS:            $162,125,000


4.4 Proposed Acreages designated and set aside for developments     

                        (Ten-Year Master Plan)                                                   

                DEVELOPMENT                             ACRES


                School Property                                    40

                Parks & Ponds                                      145

                Lakes                                                      76

                Lakeside Homes                                   90

                Roads      /Streets, Side-        (20 to 25% of available ground

Walks & Driveways             based on lot density per acre)

                Commercial                                          610

                Residential Subdivisions                     4,257

TOTAL ACRES                              5,218 (15 to 20% of residential ground could be designated commercial property.  610-acres commercial ground is conservative)




4.5 Utilization of Capital Phase One (630 Lots – 400-Acres)




Engineering                              $700.00                              630                          $441,000.00

Sewer System                       $1,400.00                              same                       $882,000.00

Domestic Water                    $1,750.00                              same                    $1,102,500.00

Power (electric)                     $1,200.00                              same                     $756,000.00

Paving                                     $2,400.00                              same                    $1,512,000.00

Concrete                                $1,100.00                              same                        $693,000.00

Pressure Irrigation                  $900.00                              same                        $567,000.00

Storm Drain                          $1,300.00                              same                        $819,000.00

Telephone                                $300.00                              same                        $189,000.00

Landscaping                          $1,100.00                              same                        $693,000.00

fees, street

lights, etc.                              $1,100.00                              same                          $693,000.00


(Fire Hydrants)                        $800.00                              same                        $504,000.00


TOTALS                              $14,050.00                            630                        $8,851,500.00       

*Administrative & office costs:  includes attorney,

accounting, planning consultants, salaries, rent,

phone & supplies =                                                                                      $500,000.00       




*Sewer Treatment facility $2500 per lot x 1,260 residential lots

(An estimated 50 business establishments associated with

drip drainage fields located in open space, parks, etc. and

added expenses are included in commercial infrastructure cost)                     $3,275,000.00

*Electric Power capacity increase                                                                            $1,000,000.00                    

*Domestic & commercial water system                                                                    $500,000.00

*Commercial acreage infrastructure is estimated at $30,000.00

Per acre x 120 acres (includes off site sewer treatment facility)                      $3,600,000.00

*Waste Water Treatment Facility annual operation and

maintenance expenses                                                                                                   $100,000.00


TOTAL PHASE ONE & CORPORATE EXPENSES                                 $17,756,500.00

400-ACRE LAND PURCHASE                                                                            $2,100,000.00

TOTAL EXPENSES                                                                                              $19,956,500.00

Does not include: Interest on Loan, Sales & Promotion


4.6 Gross Retail Revenue of Lots/Acres:


Phase One Development Gross Retail Revenue from all developments and leasing farm ground.


DESCRIPTION                  LOTS/                    TOTAL                      SALES TOTAL



Residential Subdivision

Small Lots (3.5 lots

Density per acre)                   570-L                      $30,000.00                                 $17,100,000.00

Residential Subdivision

Medium Lots (3 lot

Density per acre)                   30-L                        $35,000.00                                   $1,050,000.00

Lakeside Lots (Half-

Acre Lots)                             30-L                        $70,000.00                                   $2,100,000.00

Farm Ground Leased                           1,000-A   $100.00 per acre                           $100,000.00


Commercial acreage            60-A                        $2.50s.f.                                        $6,534,000.00

Residential Sewer

Hook-up fees                         630-L                      $2,800.00                                      $1,764,000.00

Residential Monthly

Sewer service fees                                   630-L x $15.00 x 12                                  $113,400.00

Commercial Sewer

Hook-up fees                         10 Sites x              $2,800.00                                           $28,000.00

Commercial Monthly

Sewer service fees                                     10 sites x $25.00 x 12                                 $3,000.00


*TOTAL ANNUAL GROSS RETAIL REVENUE                                        $28,792,400.00



DEVELOPMENT & PROJECT EXPENSES                                                   $19,956,500.00


*FIRST PHASE PROJECT RETURN                                                             $8,835,900.00






IMPROVEMENTS SOLD)                                                                                  $8,851,500.00


NET PROFIT RETURN                                                                                          $17,687,400.00



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Energy Quest National Energy Efficient Development (EQNEED) Inc. and or Sun Rivers Investment Inc. Montebello Letters –2




                ENERGY QUEST National Energy Efficient Development Inc.

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