JV partnership option as follows $13,000,000.00

An Ambitious Initiative

There is an opportunity in Mercersburg, Pennsylvania to build and further operate an innovative real estate project providing an array of vacation activities, spa services, lodging and housing that could include a retirement home concept for clergy and their families. Bob Hodges and his wife Anne, both of whose parents had dedicated their lives to pastoral service, recognize this need.

Furthermore, it is an opportunity/option which, if incorporated, could jump-start the residential sales component of the project.

When Bob and Nick decided to move forward with the Deerwood Resort and Communities Venture, they proceeded with a plan to develop a destination resort community, specifically designed to be profitable, as well as providing an option to incorporate the retirement concept.

This concept would accommodate the needs of retired clergy by providing a place of refuge, vacationing, and retirement for the many years they served dedicating their lives to their congregations.

The program, as Bob envisions it, would provide an annual vacations for the 50 donors for every retirement plan/home sold until that particular clergyman retires.

All this could be accomplished within a golf cart ride away of the many amenities to be built that will, along with the vacationing families, create a full of life upbeat environment.

Bob and Nick Hodges also recognize the opportunity to provide to the surrounding communities residents various types of employment and job training.

This ambitious initiative will involve a 200 room hotel, and is currently budgeted for an additional 200 + luxury condominium units that would be generating considerable monthly revenue.

This will be in addition to the numerous amenities that will be generating a substantial amount of revenue.

Current calculations show monthly revenue for the hotel and condominium units, along with the revenue from various resort amenities including an indoor water park, restaurant, and the spa, total up to $2,000,000.00 monthly.

The money required to get the project organized has been provided by Bob and Nick Hodges, who have also invested in excess of 15 years of sweat equity into the development of the project.

Initially Bob is offering 50% ownership to a JV partner for $13,000,000.00, but once the total investment of $89,900,000.00 has been made, the investors share will increase to a minimum of 80%.

To make the expansion of this company a reality, there will be a total amount of $89,900,000.00 needed, or an additional $76,900,000.00, which will come as a loan or additional equity participation.

The $89,900,000.00 is the complete amount needed to finalize land acquisition, land planning, build the hotel and the various other amenities to be built on the properties, as well as initiate the startup of the business operations (that amount of $89,900.00 can be reduced should the JV investor determine to not immediately build the 200+ high end rental units). The water and sewer allocations for approximately 1,500 sewer taps and the water needed to service the residential units and the hotel and the various other amenities to be built on the properties, are the key to making this project possible.

Subsequent to the receipt of the sewer permit for Deerwood Resort and Communities, the Chesapeake Bay Initiative was implemented resulting in a moratorium being placed on direct stream sewer discharge permitting. Therefore, the availability of these utilities, along with a natural gas tap on one of the subject properties, combined with many waivers and approvals that have taken years to obtain, make this project a rare opportunity.

Within a year from the time of closing, and the initial funding for land acquisition occurs, the entitlements process should be complete, marking the time to break ground on the water park and hotel.

Construction of those facilities should be finalized and ready for the grand opening within two years from the commencement of the construction phase.

Real Jobs

This venture will create “real jobs” totaling approximately five hundred in all. Three hundred construction jobs for approximately 5 years and two hundred permanent jobs will be the result of this “green” resort and community initiative that will put the area on the map.

The following four points should be noted should you proceed to review the calculations and projections contained in the feasibility study:

1 The calculations and or projections do not include any profits for the residential units and building lots/sites sales.
The profits from these sales alone will conservatively repay the $89,900,000.00 investment.
2 Since the time that the profit calculations and projections in the available feasibility study were compiled, the recent downturn in the real estate market presents an opportunity to acquire the properties outlined herein at a substantially reduced price of approximately $13,000,000.00 less than represented in the initial payback schedule.
These savings along with the elimination of $8,800,000.00 of interest reserves included in the calculations shown on the amortization schedule of the feasibility study, from which the calculations therein were obtained, represents a total savings of $23,800,000.00 that will accelerate the payback of the investment.
The water and sewer allocations are now included in the jv partnership purchase.
3 The allocations that will translate into taps have a net value of approximately $8,000,000.00.
This number was derived by multiplying 1500 sewer taps at $5,000.00 or $7,500,000.00, and 1500 water taps at $3,000.00 or $4,500,000.00.
For the water and sewer taps, the total would be $12,000,000.00 then the cost to enlarge the sewer plant, construct another well head, and build the potable water system of $3,000,000.00 to $4,000,000.00 was deducted to arrive at the $8,000,000.00.
4 The final number of condo units to be constructed for the rental portion of the project which are part of the funding as outlined herein, are subject to the market conditions and demands at and or during the time of construction.
Therefore, the quantity of the proposed 240 units may increase or decrease depending on any adjustments that may be made to the units, with respect to total living space, the addition of a garage, upgrading of interior finishing’s, modification for higher and volume ceilings, etc.

Read on to learn more about the investor proposal and investment options.