RANCH HOUSE COALITION SEMI-ANNUAL MEETING

1. RANCH HOUSE COALITIONSEMI-ANNUAL MEETING JANUARY 17, 2013 RANCH HOUSE RESTAURANT LAKE MONTEZUMA

2. RANCH HOUSE COALITIONA PROJECT OF THE BEAVER CREEK COMMUNITY DEVELOPMENT CORPORATON Preserving a Beaver Creek Landmark through Community Ownership & Professional Management THE MISSION:A COMMUNITY OWNED ECONOMIC ENGINE for BEAVER CREEK COMMUNITY DEVELOPMENT PROVIDING: JOBS - SMALL BUSINESS DEVELOPMENT - ECONOMIC SUSTAINABILITY - PROTECTED COMMUNITY OPEN SPACE

3. Why we VENTURED on this JOURNEY Rid the safety issues affecting our community: • Fire dangers with tall grasses & dilapidated buildings; • Mosquito & disease control of an empty lake;

4. Why we VENTURED on this JOURNEY Economics: • Put the brakes on the spiraling property values of the area; • Bring revenue and jobs to our community; Build a sense of community

5. THE ENTITIES • BEAVER CREEK COMMUNITY DEVELOPMENT CORPORATION: An Arizona NOT FOR PROFIT corporation charged with the organizing and management of community facilities inclusive of the Ranch House Restaurant and the Beaver Creek Golf course • RHC COMMUNITY DEVELOPMENT LLC: The financing guarantor and investment arm for BCCDC projects • RANCH HOUSE COALITION: A membership based support group for the building and promotion of the Ranch House Restaurant • BEAVER CREEK GOLF COALITION: A membership based support group for the building and promotion of the Beaver Creek Golf

6. The Proposed Working Organization

7. FIRST HALF OF 2012 – BARN BUILDING

8. Architectural Firm for Site Plan / Design / Mechanical Engineering / Drawings Reece Angell Rowe Architects Electrical Engineer - Robert Wong Structural Engineer - Brent Maupin General Contractor - Chris Shafer Construction Electrical Contractor - John Cunningham Jan to May : Engineering & Design for Permitting Architectural Plans for Parcel – Buildings - Kitchen – ADA Bathrooms = Dance Hall Electrical Plans for Building / Kitchen and Bathrooms Structural Plans for Kitchen and Dance Hall Mechanical Plans for Kitchen Permit Issued May 24, 3012

9. JANUARY THROUGH JUNE 2012 • THE BARN BUILDING • Volunteer crews worked on remodel and repairs not requiring permit: • Repair & Re-shingle Roof • Paint Exterior of All Buildings • Paint Interior of Restaurant Building • Refinish Wood Flooring in 2 Small Dining Rooms – Hallway – Dance Hall • Refinish Quarry Tile Flooring in Entryway and Access Hall • Install New Flooring in Main Dining Room and Lounge • Rebuild Lounge Bar • Clean & Paint Rock Fireplaces, Chimneys, & Planters • Various Wall Treatment & Trim Work Throughout • Repair HVAC Units & Ventilation Systems • Repair Windows and Doors • Repair Porches • Repair Gazebo • Carpet Patio • Repair Patio Awning • LOTS OF DEEP CLEANING

10. AND WHAT DID THIS COST?

11. APPROXIMATELY $124,550 SPENT IN 2012 FOR THE RANCH HOUSE RESTAURANT ONLY

12. AND THE FRUITS OF OUR LABOR & DOLLARS

13. The Ranch House RestaurantSoft Opening July 23, 2012

14. RESTAURANT OPENS WITH CHALLENGES The Ranch House Restaurant opens 6 months past projected date: • Delays due to extensive renovation needs • Delays in permit acquisition • BC area grows from 2 small restaurants (Crickets & El Patio) to 5 restaurants (Crickets – El Patio – Creek Side Café, Vintages & The Ranch House) during construction period • $0.00 BUDGET FOR START UP & OPERATING CAPITAL • BCCDC UNABLE TO MEET FINANCIAL REQUIREMENTS TO ATTRACT QUALIFIED FOOD & BEVERAGE MANAGMENT • RHC LLC FALLS SHORT OF REACHING ITS $300K GOAL

15. Purpose of Soft Opening July 2012 • Test Kitchen Equipment • Staffing Mix & Probations • Establish Supplier Accounts • Test Menu & Pricing • Receive Membership Critique & Comments • Program & Refine Point of Sale System

16. Grand Opening – September 1, 2012 With honed in menus, trained staff and food & beverage suppliers in place The Ranch House Restaurant was off to a good start… but not for long

17. COMMUNITY SUPPORT ESSENTIAL

18. BUT NOT ENOUGH TO SUSTAIN THE RESTAURANT THROUGH SALES

19. AND NOT ENOUGH TO COVER COSTS FIGURES FOR RESTAURANT ONLY: 6 MONTH SALES: $136,890 YEAR END INVENTORY $ 12,600 6 MONTH START-UP & EXPENSES $256,480 6 MONTH OPERATING LOSS ($106,980)

20. CHANGES & REMEDIES • CHANGE OF CHEF TO ADDRESS QUALITY AND SAFETY ISSUES – CHEF CHRISSIE ON BOARD AS OF END SEPTEMBER

21. MORE CHANGES & REMEDIES • INTRODUCED NEW MENU WITH POPULAR ITEMS AND NEW PRICING • INTRODUCE LUNCH & DINNER SPECIALS • CORRECT BAR INVENTORY & OVERSTOCKING • REDUCE STAFF & HIRING FREEZE • ELIMINATE WASTE OF EXPIRED FOOD ITEMS • ELIMINATE WASTE OF UNSOLD PREPARED ITEMS • INCREASE SPECIAL EVENTS AND MEAL NIGHTS • ADJUST WINTER HOURS OF OPERATION • ISSUE SHORT TERM LOANS FROM DIRECTORS

22. PROPOSED CHANGES & REMEDIES • DEVELOP MANAGEMENT SYSTEMS • AGGRESSIVE MARKETING & SALES • CALL FOR MEMBERSHIP SUPPORT • ESTABLISH VOLUNTEER COMMITTEES • DEVELOP DESTINATION DRIVER – THE GOLF COURSE & ALTERNATE USES

23. MANAGEMENT SYSTEMS • ESTABLISH ACCOUNTING MANAGEMENT SYSTEMS: HIRE BOOKKEEPER & ACCOUNTANT • ESTABLISH PURCHASING & OPERATIONS PROCEDURES: Weekly Budgets & Purchase Order Systems; Hire Professional Restaurant Manager • BCCDC BOARD DEVELOPMENT & OVERSIGHT: Recruit board members with business skill sets; Take active rolls in business oversight

24. MARKETING & SALES • INCREASED SALES THROUGH AGGRESSIVE MARKETING: Newspaper & Radio Advertising; Public Relations Campaigns; Flyer Distribution • GROUP SALES: Book Weddings; Retreats; Business & Organization Meetings • MORE SPECIAL EVENTS: Special Dinner Nights; Wine tastings; Holiday events; Parties

25. MEMBERSHIP SUPPORT • SHORT TERM MEMBERSHIP SUPPORT PROGRAM: 80 – 100 Current RHC members donation of $125.00 each per month for 3 months to cover operating costs • INCREASE MEMBERSHIP: Membership Drive • MEMBER PATRONAGE: Commitment from Members to dine at the restaurant at least twice per month

26. VOLUNTEER COMMITTEES VOLUNTEERS NEEDED FOR: • AD COPY & PLACEMENT • FLYER DESIGN & DISTRIBUTION • WEBSITE MAINTENANCE • CLEANING CREWS • FUNDRAISING & SPECIAL EVENT COORDINATORS & WORKERS • BARTENDING & HOSTESS • MEMBERSHIP RECRUITMENT CAMPAIGN

27. DEVELOP DESTINATION DRIVER IMPLEMENT GOLF COURSE PROGRAMS: • ESTABLISH A DISC GOLF AREA ON BACK 9 • PROPERTY & WATERWAY MAINTENANCE • ESTABLISH THE GOLF COURSE

28. DISC GOLF PROPOSAL TO THE BEAVER CREEK GOLF COURSE COALITION FOR AN 18-HOLE DISC GOLF COURSE AT BEAVER CREEK GOLF COURSE The Verde Valley Disc Golf Club is proposing the installation of an 18-hole disc golf course at the Beaver Creek Golf Course in the area formerly used as holes 1-9 of the original golf course.

29. WHAT IS DISC GOLF? Disc golf is a fun, inexpensive, healthy and environmentally friendly game that can be enjoyed by people of all ages and abilities. It is played much like traditional golf, only instead of hitting a ball into a hole, you throw a Frisbee into an elevated metal basket. As players progress from the “tee” to the “hole,” the trees, shrubs and terrain changes in and around the “fairways” provide challenging obstacles. Ultimately, the “putt” is tossed into the basket and the hole is completed. The goal of disc golf is the same as traditional golf: to complete the course in the fewest number of shots

30. DISC GOLF RESPONSIBILITIES OF THE COALITION • Provide the necessary funding for the course materials and installation. • Designate Department personnel to work with the club in coordinating the approval process for course layout and development, and coordinating any and all permits necessary for installation of the disc golf course; • Provide two to three waste receptacles for the course and agree to empty them on a regular basis; • Notify the club, in writing, of any grievances communicated to the Department about the appearance or operation of the course; • Provide advance notice of park closures for maintenance or special events that would limit the use of the disc golf course; • Notify the club, in writing, of any plans for changes in park use, facility development, or additions to the park (or adjacent park land) that may impact the disc golf course so that the club may have some input into the process.

31. RESPONSIBILITIES OF THE VERDE VALLEY DISC GOLF CLUB • Course Design: • The principal course designers have between them over 20 years of experience designing permanent and temporary courses. • The 18-hole course will be designed with the utmost safety of both players and non-players in mind. Although not heavily traveled, the proposed area does have other recreational users, such as dog-walkers, joggers, and bikers and golfers. Care has been taken in the design of the course to eliminate user conflicts, minimize potential damage to foliage and reduce the chances for erosion. • The course will also be designed with the potential for multiple configurations to serve not only beginners but players with more advanced skills.

32. Construction: • The installation of an 18-hole disc golf course at Beaver Creek will simply involve the installation of tees; the installation of inexpensive, durable signs and baskets, and the clearing of dead branches and debris around the proposed course area. • Under the proper supervision of a necessary authority, club volunteers will install the equipment in accordance with manufacturer instructions

33. Recreational Programming: • The club is willing to hold an occasional free clinic for players of all ages to teach them the rules, etiquette and techniques of the game. • The club will also be available to hold free clinics and events for individual schools and community organizations on a • request basis.

34. GROUNDS MAINTENANCE

35. GOLF COURSE MAINTENANCE

36. 2012 SALES – PRO-SHOP

37. GOLF COURSE MAINTENANCE VOLUNTEER NEEDS • Volunteer operators with their own mowing equipment • Transport & pick up of supplies • Golf ball pick up • Pro shop cleaning • Goffer control • Ditch cleaning • Equipmentmechanics

38. DEVELOPING A GOLF COURSE

39. GOLF COURSE DEVELOPMENT The development of the golf course remains the biggest challenge. Several options have been presented: • ESTABLISH A GOLF COURSE DEVELOMPENT FUND similar to the RHC LLC & Implement Adopt-A-Hole / Develop as a BCGC Coalition Effort & Establish a Facilities District • Enter into a Partnerships • Sell the golf course property

40. Adopt-A-Hole Program

41. Adopt-A-Hole Cost • For seventeen holes, sponsorship cost is $12,000 each. • The # 3 Signature Hole (old # 12) sponsorship cost is $16,000. • The funds raised are to be used for equipment, supplies and labor required in restoring each hole to a suitable level of play by rebuilding the greens, traps, and water features. • In addition, each sponsor’s name and logo will be erected on a‎ new golf-hole marker for their designated hole.

42. Adopt-A-Hole In exchange for your sponsorship of a specific hole, the company would receive the following: • Company's name and logo on a given hole advertising your business • Company's name and business information displayed on an electronic marque located in the Pro Shop • Name and business information included in the course’s general advertising campaigns including print ads, the course website and the internet • Three-year course membership for two for each participating company

43. EQUIPMENT NEEDS FOR GOLF COURSE

44. PUMP OPTIONS • REPAIR THE PUMPS – Estimates received range from $10,000 to $25,000 without improvement of efficiency ratings or guarantee of part availability. • BUY NEW PUMPS – Bids received at $100K to $125K • UTILIZE RETROFITTED MUNICIPAL WASTEWATER PUMPS – Cost / Availability / Mechanics are being explored

45. GROW-IN / MAINTENANCE BUDGET Jan. Feb. Mar April May June July Aug. Sept. Oct. Nov. Dec. Yearly Total Salary $3,077 $3,077 $3,846 $3,077 $3,077 $3,846 $3,077 $3,077 $3,846 $3,077 $3,077 $3,846 $40,000 Wages $1,600 $1,600 $2,000 $1,600 $3,200 $4,000 $3,200 $3,200 $4,000 $1,600 $1,600 $2,000 $29,600 Benefits $468 $468 $585 $468 $628 $785 $628 $628 $785 $468 $468 $585 $6,964 Electric $500 $500 $750 $1,000 $1,000 $1,000 $1,000 $1,000 $750 $750 $500 $500 $9,250 Water $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $2,400 Fuel $300 $300 $300 $500 $1,000 $1,500 $1,500 $1,500 $1,000 $500 $300 $300 $9,000 R&Mequip. $500 $500 $500 $750 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $500 $500 $15,250 R&M Irrig. $100 $100 $100 $500 $500 $500 $750 $750 $500 $100 $100 $100 $4,100 Sand/Grav. $0 $0 $0 $0 $750 $0 $0 $0 $750 $0 $0 $0 $1,500 Supplies $50 $50 $50 $500 $100 $100 $100 $100 $100 $50 $50 $50 $1,300 Fert./Chem. $100 $100 $100 $5,000 $2,500 $5,000 $2,500 $5,000 $2,500 $100 $100 $100 $23,100 Consulting $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $18,000 Trash $100 $100 $100 $200 $300 $300 $300 $300 $200 $100 $100 $100 $2,200 Monthly Totals $8,995 $8,995 $17,990 $15,795 $17,255 $33,050 $16,255 $18,755 $17,631 $9,945 $7,995 $9,281 $162,664 * the cost per round to operate this maintenance budget would need to be $11 a round at 15,000 rounds a year. * employees are 1 full time salaried and 1 hourly a $10hr. 1 part time from May through September.

46. WHERE DO WE GO FROM HERE AND HOW DO WE GET THERE?

47. A LOOK AT OVERALL 2012 PROJECT NUMBERS The following summary is a general statement of sources and uses of funds in the calendar year 2012 and does not claim to be nor replace official BCCDC corporate financial statements of Profit & Loss or Balance Sheet

48. BCCDC 2012 SOURCE OF FUNDS