2. Why does this project make sense? The City of Temecula is committed to building… A freeway offramp leading right to Splash Canyon’s “Front Door” The average Wild Rivers Waterpark investor realized… A 25% annualized return over a 24 yr. period See PPM for more information. **(investments are not guaranteed, involve possible risk of loss, including possible loss of principal). The Wild Rivers Waterpark management team will bring… 24 years of expertise & profitable management to Splash Canyon. Wild Rivers Waterpark (Irvine, CA) has been… profitable every year since its opening in 1986. 2009 saw 400,000 visitors enjoy Wild Rivers Waterpark… Temecula Valley’s Splash Canyon demographics are very similar.
8. 2007 Taxable Retail Sales - $2.60 billion **City of Temecula Demographics Report (Claritas, April 2008)
9. This project makes sense! Wild Rivers had over 400,000 guests last season, (2009). Wild Rivers generated revenue of over $10mm Between the end of May 2009 & the beginning of September 2009 (approx. 4 months). Splash Canyon is expected togenerate comparable revenue & profit to that of Wild Rivers from day one! The Wild Rivers business modelisthe Splash Canyon business model.
10. Assumptions: Splash CanyonAdmission Fee: $31.98 General Admission $19.98 Junior Admission $10.00 Parking 60% of Splash Canyon attendees will qualify for Jr. Admission price. 40% of Splash Canyon attendees will qualify for General Admission price. Parking requirement (per car) is estimated at approximately 25% of total season guest attendance (400,000 guests x 25% = 100,000 cars).
11. Do The Math! Splash CanyonAdmission Fee: $31.98 General Admission $19.98 Junior Admission $10.00 Parking 60% of 400,000 guests = 240,000 paid Jr. Admissions x 19.98= $4,795,200 40% of 400,000 guests = 160,000 paid General Admissionsx $31.98 = $5,116,800 Parking Fee: 100,000 cars @ $10.00 each = $1,000,000 Total Estimated Revenue (per season)= $10,912,000
12. Group Expertise The same Splash Canyon Temecula team successfully built & profitably ran Wild Rivers Irvine, since 1986. ******************************************************************************************* The Wild Rivers management team is the Splash Canyon management team ******************************************************************************************* Combined, this management team’s expertise spans… more than 24 years of success in the waterpark business. Wild Rivers has been profitable each year since it’s opening in 1986.
13. “In Place” Project Components Permits Approved plans Land (sale approved & in escrow w/ City of Temecula) Seasoned & successful management team
14. Must Haves… Land purchase funding: (sale pending, in escrow) Construction project funding Equity investors Conventional financing * prior secured funding was committed to by Vineyard National Bank now in receivership by FDIC
15. Planned Utilization of Resources Total Project Cost: $23.8 Million Current Project Equity $10 Million Project Financing Requirement: $14 Million Land Cost: $5.7 Million Total Hard Cost: $17 Million Total Soft Cost:(working capital, misc. costs/fees, etc.):$1.1Million
16. Win / Win Documentable History of 25% avg. annualized return to investors(investments are not guaranteed, involve possible risk of loss, including possible loss of principal). Tax revenue Increase to city through utilization of Temecula amenities 400,000 estimated guests per season will bring benefit to local business by utilization of local amenities: Dining Shopping Old Town Casino Wineries Hotels etc. Outgrowth Development: Park Job creation (seasonal & full time) Construction (jobs) Revenue growth to surrounding businesses (restaurants, shopping mall, hotels, casino, golf) Wine Country, (wine tasting, dining) etc. Exceptional safety & incident record(only 4 reportable incidents in entire 2009 season of over 400,000 guests) Youth Development & Training Programs: Red Cross approved Life Saving Life Guard First Aide / CPR Job experience in a responsible environment.
17. How can we expedite project completion? Help Make it happen. We need… Equity partnerships… Equity partners help supplement project funding. Equity investor dollars fund all or a portion of project cost in exchange for estimated high rates of return, (see PPM for specific details). **(investments are not guaranteed, involve possible risk of loss, including possible loss of principal). Capital investment in land purchase may aid construction funding… Equity Value of acquired land may collateralize funding of project cost. Utilization of equity collateral may help obtain multi-bank participation & help fund a portion of construction cost.
18. The Bottom Line… With your help, the Splash Canyon project will happen; Without your help the project may also happen, but over a prolonged period. What does helping us provide to you? The revenue from 400,000 guests spending money in Temecula will strengthen & support… a successful business community and a stronger Temecula economy. The potential & opportunity to generate historically significant investment returns… from a documented & historically proven, success story, **(investments are not guaranteed, involve possible risk of loss, including possible loss of principal). High profile cross promotional opportunities for involved businesses and equity participants… will generate new business opportunities & increase revenue for same. Splash Canyon’s family theme park attraction in Temecula Valley… will further develop Temecula as a destination location. Your help is our preferred approach to success. Thank you, Waterpark Ventures, LLC Evan Gentry * (949) 545 - 6998 * (949) 412 - 8468
