SUN RIVER INVESTMENT INC. BUSINESS PLAN  -2

FINANCIAL INSERT FROM BUSINESS PLAN

 

 

4.7 Shareholders Projected Net Return on First Phase Investment for planned developments

 

*    Net Profit by close of Phase One                                                               $17,687,400.00

*    Percentage of return on investment                                                                  88.63%

*    Gross Phase Two Project Revenue                                                             $37,643,900.00               

*    Total Phase Two Project Cost                                                                     $12,772,500.00

*    Net Profit by close of Phase Two                                                                $24,871,400.00

                                       

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 Phases 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, dependent 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 the 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 for First and Second Phases, totaling $3,584,400.00.  Additional monthly wastewater service fees for 630 Residential lots total $113,400.00 annually, with 10 commercial sites estimated at $3,000.00. 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 and Sixth 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 and wastewater facility revenue is reflected in each Phase of the Montebello project or revenue received from 630 residential lots and 10 commercial sites sewer hook-up fees and monthly service fees.

 

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.

 

4.8 Projected Expenses and Net Return Phase One through Ten (January 2003 through December 2012)

 

The following annual development cost and net return projections reflect each Phase project expenses and revenue (does not include Interest on Loan, Sales & Promotion). Second, Fourth, Sixth, Eight and Tenth Phases reflect no commercial infrastructure development cost of $3,600,000.00, Waste water treatment facility development cost of $3,584,400.00, as these expenses occur in First, Third, Fifth, Seventh and Ninth Phases.   Each Phase reflects Local Municipal District Bond Revenue Financing in the amount of $8,851,500.00.

 

                                                    PHASES

                   JANUARY 2003- DECEMBER 2012

PHASE  EXPENSES                          RETAIL REVENUE                         NET RETURN

 

FIRST

(JAN 2003 –

DEC 2003)            $19,956,500.00     $37,643,900.00                     $17,687,400.00

 

SECOND

(JAN 2004 –

DEC 2004)            $12,772,500.00     $37,643,900.00                     $24,871,400.00

 

THIRD

(JAN 2005 –          $19,956,500.00     $37,643,900.00                     $17,687,400.00

DEC 2005                                                                             

 

FOURTH

(JAN 2006 –          $12,772,500.00     $37,643,900.00                     $24,871,400.00

DEC 2006)                                                                                           

 

FIFTH

(JAN 2007 –          $19,956,500.00     $37,643,900.00                     $17,687,400.00

DEC 2007)           

 

SIXTH

(JAN 2008 –          $12,772,500.00     $37,643,900.00                     $24,871,400.00

DEC 2008)           

 

SEVENTH

(JAN 2009 –          $19,956,500.00     $37,643,900.00                     $17,687,400.00

DEC 2009)           

 

EIGHT

(JAN 2010 –          $12,772,500.00     $37,643,900.00                     $24,871,400.00

DEC 2010)           

 

NINTH

(JAN 2011 –          $19,956,500.00     $37,643,900.00                     $17,687,400.00

DEC 2011)           

 

TENTH

(JAN 2012 –          $12,772,500.00     $37,643,900.00                     $24,871,400.00 DEC 2012)              

 

TOTALS:             $163,645,000.00   $376,439,000.00                   $212,794,000.00

 

4.9 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/airpark in an area approved by the FAA and Ada County in 1972, will generate even further revenue developing 900-acres of the 1,435-acres for airport/airpark use:

 

AIRPORT & AIRPARK

DEVELOPMENT                              RETAIL REVENUE                         NET RETURN

EXPENSES

 

AIRPORT (500-ACRES) Waste Water Treatment

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

Airpark residences & commercial areas) +

$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)

 

AIRPARK (400-ACRES) 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)

 

TOTAL PROJECT COST/NET RETURN ALL PROPOSED DEVELOPMENTS

 

$183,665,000.00                   $586,439,000.00                   $402,774,000.00

 

Airport/Airpark development/infrastructure will be funded from set aside net return revenue annually or when airport/airpark properties are sold once FAA and Ada County approvals are gained.

 

5.1 Proposed Allocation of Fifty Million

 

PROJECT/DEVELOPMENT                        TOTAL

 

400-acres (Phase One)                                         $2,100,000.00

4,818-acres (Future Developments)               $25,294,500.00

Total Phase One Development &

Corporation Expenses                                         $17,856,500.00

1,435-acres east of proposed PCD in

order to secure potential Airport/

Airpark ground (estimated)                                $4,749,000.00

                                                                TOTAL                  $50,000,000.00

 

5.2 Investor Return & Participation

 

Shareholders dividends would be allocated from revenue generated from lots and commercial property sales.  Once all project expenses are deducted from gross retail revenue, SRI stockholders would share net revenue in accordance with the amount of shares owned by all parties involved.  

Phase One lots and commercial property sales will take approximately one year to liquidate.  Contractor’s purchase more then one lot and with Salisbury Homes willing to purchase 200 lots from a Boise Idaho Developer, at the beginning of Phase One, 32% of planned residential lots would be sold.  Salisbury Homes would build as many Homes the following year as were sold the first year.  Two hundred (200) lots represent $6,000,000.00 gross retail revenue or 22.35% of Phase One planned residential and commercial projected retail sales and annual income from leased farm ground. 

Repayment to investor of principal and interest would be allocated from the sale of lots and commercial grounds.  A set aside percentage from the gross retail sale of lots and commercial property would be allocated off the top from generated revenue and a second percentage would go to interest.  Interest payments for amount of the loan would be allocated at the end of each physical year with principal repayment occurring at the end of the 3rd year and thereafter for 10 to 15 years dependant upon terms and conditions.  First six months to one year of the project will be spent designing, developing, public hearings and advertising.

 

6.1 INFRASTRUCTURE - LOCAL MUNICIPAL DISTRICT BOND REVENUE FINANCING

 

Local Municipal District Bond revenue financing was presented by Seidler-Fitzgerald, a division of the Seidler Companies Incorporated, member of the New York Stock Exchange, as an alternative in order to fund the infrastructure of the proposed Planned Community.

 

Infrastructure and land development improvements will be sold to Seidler Fitzgerald when completed.  Infrastructure costs passed on to the homebuyer in the same manner that other cities finance their infrastructure results in separate community and or municipal property assessment tax.

Improvement district assessment tax will be established for the Planned Community District and collected by Ada County from homebuyers over a period of many years, in order to pay local municipal district improvement bond revenue financing.  This tax would be up and above property taxes, wastewater disposal and water hookup fees and monthly service fees for these utilities.  Assessment district improvement taxes have proven their reliability and are used in many cities throughout America.

Homebuyers repay bonds over a 20 to 25 year period and developer’s infrastructure cost for all residential Phase developments would be returned.  Municipal district bonds upon maturity are tax-exempt with an approximate rate of return of 5.5 to 6.5% dependant upon bond market conditions.  Appendix F clarifies Seidler Fitzgerald’s role and basic understandings of local Improvement District and Municipal Bond revenue financing.

PROJECTED PROJECT AND DEVELOPMENTS FINANCIALS WITHOUT        

            MUNICIPAL DISTRICT BOND REVENUE FINANCING

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

 

DESCRIPTION        ONSITE IMPROVE-                TOTAL LOTS     TOTAL

 MENT COST PER LOT

 

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

Contingencies

(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             

 

INFRASTRUCTURE OFF SITE COST

 

*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

 

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

ACRES/

                                                                HOMES

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

(Annual)

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

 

*LESS TOTAL PHASE ONE

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% 

*    Gross Phase Two Project Revenue                                                                    $12,772,500.00

*    Total Phase Two Project Cost                                                                        $16,019,900.00

*    Net Profit by close of Phase Two                                                                   $16,019,900.00

 

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 Phases 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, dependent 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 the 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 for First and Second Phases, totaling $3,584,400.00.  Additional monthly wastewater service fees for 630 Residential lots total $113,400.00 annually, with 10 commercial sites estimated at $3,000.00. 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 and Sixth 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 and wastewater facility revenue is reflected in each Phase of the Montebello project or revenue received from 630 residential lots and 10 commercial sites sewer hook-up fees and monthly service fees.

 

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 2003 through December 2012)

 

The following annual development cost and net return projections reflect each Phase project expenses and revenue (does not include Interest on Loan, Sales & Promotion). Second, Fourth, Sixth, Eight and Tenth Phases reflect no commercial infrastructure development cost of $3,600,000.00, Waste water treatment facility development cost of $3,584,400.00, as these expenses occur in First, Third, Fifth, Seventh and Ninth Phases.  

 

                                                   PHASES

                                JANUARY 2003- DECEMBER 2012

PHASE  EXPENSES                          RETAIL REVENUE                         NET RETURN

 

FIRST

(JAN 2003 –

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

 

SECOND

(JAN 2004 –

DEC 2004)            $12,772,500.00     $28,792,400.00                     $16,019,900.00

 

THIRD

(JAN 2005 –          $19,956,500.00     $28,792,400.00                     $8,835,900.00

DEC 2005             

                                                                               

FOURTH

(JAN 2006 –          $12,772,500.00     $28,792,400.00                     $16,019,900.00

DEC 2006)           

                                                                               

FIFTH

(JAN 2007 –          $19,956,500.00     $28,792,400.00                     $8,835,900.00

DEC 2007)

 

SIXTH

(JAN 2008 –          $12,772,500.00     $28,792,400.00                     $16,019,900.00

DEC 2008)           

 

SEVENTH

(JAN 2009 –          $19,956,500.00     $28,792,400.00                     $8,835,900.00

DEC 2009)           

 

EIGHT

(JAN 2010 –          $12,772,500.00     $28,792,400.00                     $16,019,900.00

DEC 2010)           

 

NINTH

(JAN 2011 –          $19,956,500.00     $28,792,400.00                     $8,835,900.00

DEC 2011)           

                                                                               

TENTH

(JAN 2012 –          $12,772,500.00     $28,792,400.00                     $16,019,900.00

DEC 2012)           

 

TOTALS:             $163,645,000.00   $287,924,000.00                   $124,279,000.00

 

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:

 

AIRPORT & AIRPARK

DEVELOPMENT                              RETAIL REVENUE                         NET RETURN

EXPENSES

 

AIRPORT (500-ACRES) Waste Water Treatment

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

AIRPARK RESIDENCES & COMMERCIAL AREAS) +

$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)

 

AIRPORT & AIRPARK

DEVELOPMENT                              RETAIL REVENUE                         NET RETURN

EXPENSES

 

AIRPARK (400-ACRES)

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)

 

TOTAL PROJECT COST/NET RETURN ALL PROPOSED DEVELOPMENTS

 

$185,210,000.00                   $497,924,000.00                   $312,714,400.00

 

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

 

EQNEEDF views on Politics, Environment, Energy, Health, National, and Foreign Affairs

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

 

 

 

                                ENERGY QUEST, former National Energy Efficient Development Inc.

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