agp powerpoint linked in july 2012 (1)

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“THE PREMIERE ROAD RACING ENTERTAINMENT CENTER IN SOUTHERN CALIFORNIA”

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Page 1: Agp Powerpoint Linked In July 2012 (1)

“THE PREMIERE ROAD RACING ENTERTAINMENT CENTER IN SOUTHERN CALIFORNIA”

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Anaheim Grand Prix LLC seeks private investors to fund $3MM to $5MM of a

combination of debt and equity to construct and develop a premier Southern

California tourist destination.

Turn key facility with ability to generate cash and have a full operational

platform within nine months.

Platinum Triangle location in Anaheim within 2 miles of Disneyland Resort.

Grand opening currently scheduled to participate in upcoming Formula 1 return to

the U.S. and debut of Ron Howard’s “Rush” movie.

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Anaheim Grand Prix is a motorsports enthusiasts’ tourist destination featuring a world class indoor kart racing facility, a themed restaurant, panoramic racing lounge and bar, multimedia attractions and a one-of-a-kind Company store.

Indoor karting on two challenging track layouts inspired by famous race tracks from around the world that can be run simultaneously or joined to form one super track. Track One is paved with asphalt for a higher grip racing experience. Track Two is built on a smoothed concrete surface with challenging elevation changes.The AGP Grill is a moderately priced, 116 seat restaurant catering to walk-in or corporate parties designed to surround its patrons with a walk through the world of racing. Banquet rooms are available for party events with a potential to handle large corporate gala events at capacity.The AGP Sports lounge is an elevated meeting place with floor-to-ceiling panoramic views of both tracks. AGP’s iconic racing monument will be the centerpiece of the bar, surrounded by live and historical motorsport racing videos streaming on flat screens. The lounge will host popular live Formula 1, European Touring Car and sports car race viewing events promoted to become annual traditions.State-of-the-art European style virtual racing simulators to provide pre-and post-race virtual entertainment. A very innovative zip line ride will propel visitors thru the air and sail them across the entire complex.The AGP Company Store is an open air retail attraction carrying a variety of items related to the world of racing including artwork, books, toys and clothing.Themed multimedia attractions throughout the facility will take visitors on an educational and nostalgic tour of the rich history of road racing from around the world.

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World class Sodi RT8 karts will run on two challenging tracks simultaneously.

Required helmets, gloves, shoes and AGP race suits will be available in all sizes.

Large pit area to accommodate several reversible lanes, driver switching zones, pit stop areas with proper driver loading and unloading stations.

On-track features include grid markings and starting blocks, track light signals, several course marshal designated areas and fully modular safety barriers.

Modern and immaculate mechanical serving areas with refueling and oil servicing stations located outside the building facility per code.

Arrive and drive sprint races scheduled every 15 minutes on both tracks.

Safety and driver briefings to educate customers on their first outing.

League sprint and team endurance races scheduled each month.

Race clinics to teach customers how to improve their performance.

Corporate events, Birthday’s and private rental of the facility available.

Courteous staff to provide a high level of customer service to immediately offer help, guidance and address the needs of each racer at all times.

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• Extraordinary reliability.• Outstanding shock stability (THR

integral polyethylene protection, impact and abrasion resistant).

• Unique driving comfort.• PSS double side rail in chrome-

molybdenum steel framework from the latest Sodikart research.

• Steering shaft that perfectly combines driving comfort with unprecedented agility.

• Integral floor covering the fuel tank while providing perfect protection for the drive's legs.

• Settings Modularity (height+ length for pedals, adjustable bucket seat, optional, allowing drivers from 1m40 to over 1m90).

• Patented integral protection to considerably reduce impact damage (previously designed protection made to absorb shocks working interactively with the side guards).

• Fully customizable body (upon request).

• Sodi New Ultra Concept Design.

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Courtesy of Schumacher Kartbahn

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AGP race lounge is the destination meeting place for enthusiasts and tourists. The lounge will have a wide staircase entrance to a large semi-circle panoramic area with tiered seating for maximum viewing opportunities of the track.

One large screen will be prominently suspended to present current race results of the ongoing racing activities. Finishing order of the top three racers will appear in larger than life video displays.

AGP bar area provides customers with a relaxing sports bar feel with live television feeds from SpeedTV, Eurosport, ESPN and BBC plus streaming from web enabled racing content like laptime.tv or cikfia.tv

Beer and wine bar plus appetizer foods will be served with emphasis on selection and taste. During morning races and throughout the day European style espresso drinks will be available with breakfast snack foods. Protein and health smoothies will be on the menu for competition replenishment especially during endurance races.

Celebrations and private rentals of lounge can be done in conjunction with banquets or stand alone parties.

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KW Automotive GmbH for years has been known for its premium suspension systems. To test their suspensions, KW created its own virtual racing simulator software and suspension test station. Their simulators have become a popular high-end gaming program with over 1,400 users worldwide with 9 facilities in Germany, 11 in Sweden, stand alone facilities in Denmark, Czech Republic and with their first facility in the U.S. located in Northern California.

RaceRoom offers extraordinary entertainment for all ages – whether you are gaming with colleagues, friends, family, classmates or club members. Daring overtaking maneuvers and hard fought virtual battles for position in the game guarantee the ultimate adrenaline rush.

Using high class simulators, multiple players can compete against each other in virtual live races on some of the most thrilling race circuits from around the world. Race bucket seats and high end steering wheels, integrated with a widescreen display systems and immersive sound hardware catapults the players straight into the world of simulated racing. The RaceRoom software boasts more than 600 cars and 49 challenging racing circuits.

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Anaheim Grand Prix

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AGP

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“FOR IMMEDIATE RELEASE

Anaheim, Calif. (Jan. 25, 2012) – The Anaheim/Orange County Visitor & Convention Bureau, along with CIC Research, reported preliminary year-end visitor figures indicating that Orange County attracted 42.9 million visitors in 2011. This reflected a modest increase from 2010’s visitor final figures of 42.7 million.

Visitor spending in 2011 was up 4.7% for a total of $7.75 billion, compared to about $7.4 billion in 2010. The increase in Orange County visitor spending was driven primarily by the recovery of visitors staying in hotels, while the volume of day visitors to the OC was flat.

Skip Hull, Vice President of CIC Research indicated, “2011 benefited from growth in business travel and an increase in overnight visitors in Orange County hotels. There were nearly 450,000 additional visitors in Orange County hotels in 2011. The volume of leisure day visitors to Orange County will improve with the Southern California economy and growth in jobs. The Orange County tourism outlook for 2012 indicates moderate growth in hotel visitors and a beginning recovery in leisure day visitors and overnight visitors staying with friends and relatives.”International visitors make up approximately nine percent of all visitors to OC and almost 14 percent of overnight visitors to the county. Traditionally, international travelers stay in the region much longer and spend more money during their visit.

Anaheim, as the hub of OC’s tourism industry, continues to attract a major portion of Orange County’s visitors, as it is the home of the Disneyland Resort, the Anaheim Convention Center and Orange County’s professional sports teams. Preliminary estimates for 2011 indicate there were 16.3 million visitors to Anaheim and they spent just under $4.45 billion dollars representing about 2.5 percent more visitors and 6 percent more spending than last year.

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Anaheim Grand Prix will be owned and operated by Anaheim Grand Prix, LLC. The creators and managing members of the company, Todd Lewis and Diego Morales are raising funds to capitalize the acquisition, construction and development of the AGP concept.

Mr. Lewis has over 20 years in the industry of motorsports with successful sponsor, event activation and management skills.

Mr. Morales has over 25 years experience in the commercial real estate development industry having successfully raised and participated in the financial underwriting of over 1 million square feet of class A mixed use, retail destination and office space development.

Lewis and Morales have a proven track record of successful business ventures and are both avid racers in the road racing, formula and indoor/outdoor karting arenas.

Their combined efforts and experience have served them well to create the Anaheim Grand Prix concept and yield a detailed plan that encompass the necessary elements required to succeed in today’s tourist attraction retail destination environment.

Comprehensive market research and target market evaluation suggest that Anaheim Grand Prix is ideally situated to cater to an unfulfilled market segment in Southern California. Moreover, years of user, operational and marketing experience have been organized and documented to create a comprehensive blueprint for success. Proven marketing techniques and operational systems will allow management to be proactive rather than reactive to the conditions and obstacles associated with opening a new concept. Having a sound operational plan allows management to focus on building sales rather than profit. The managing partners have an extremely high degree of confidence that the systems and controls incorporated in the business plan will yield an institutional grade return from a conservative sales projection.

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Build Out 120K SF Area: SF $/SF Total

Store* 1,220 10.00$ 12,200$

Reception* 480 20.00$ 9,600$

Restrooms* 935 25.00$ 23,375$

Lounge 5,040 80.00$ 403,200$

Banquet 430 45.00$ 19,350$

Conference* 420 45.00$ 18,900$

Suit Up Lockers 500 50.00$ 25,000$

Theater 280 65.00$ 18,200$

Sim Area 2,500 25.00$ 62,500$

Arcarde Area 270 45.00$ 12,150$

Grand Alley 4,500 25.00$ 112,500$

Zip Line (Launch and Base) N/A 50,000$

2 Story Bar and Viewing Area 2,500 125.00$ 312,500$

Track 1 - Asphalt Surface 38,000 0.98$ 37,050$

Track 2 - Concrete Surface 38,000 0.75$ 28,500$

Maintenance / Back Room 5,000 20.00$ 100,000$

Subtotal Karting Build Out: 100,075 1,245,025$

* Buildout assumes tenant improvement from existing space.

Front Entrance / Roof Top Entrance 250,000$

Build Out 68K SF Area: SF $/SF Total

Reception and Car Display 7,000 20.00$ 140,000$

Garage 40,000 20.00$ 800,000$

Lounge 3,500 65.00$ 227,500$

Restrooms 600 40.00$ 24,000$

Man Cave 4,000 45.00$ 180,000$

Storage and Mechanics Area 10,000 10.00$ 100,000$

Subtotal Storage Build Out: 65,100 1,471,500$

Total Buildout 2,966,525$

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Existing Structures: SF Condition JV Close Construction Constr. GrandOffice 2 Story 5,000 Finished Sunk CUP Start Complete Opening

Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Hard Costs:

Subtotal Karting Build Out: 100,075 1,245,025$ $0 $0 $0 $0 $0 $65,550 $169,421 $508,264 $338,843 $162,948 $0 $0 $0

Front Entrance / Roof Top Entrance 250,000$ $150,000 $100,000

Subtotal Storage Build Out: 65,100 1,471,500$ $0 $0 $0 $0 $0 $0 $220,725 $662,175 $441,450 $147,150 $0 $0 $0

Total Buildout 2,966,525$ $0 $0 $0 $0 $0 $65,550 $390,146 $1,170,439 $930,293 $410,098 $0 $0 $0

Soft Costs:Total Pre-Development 254,600$ 5,000 600 0 0 251,000 1,000 1,000 1,000 0 0 0 0 0

Total Legal/A&E/Soft Costs 581,216$ 0 28,100 16,100 3,100 43,725 321,516 27,979 42,486 56,482 38,477 2,625 625 0

Total FF&E Costs 67,000$ 0 0 0 0 0 0 2,500 10,000 28,500 26,000 0 0 0

Facility Costs:Total Kart Fleet Costs 287,700$ 0 0 0 0 25,750 0 0 3,500 250,950 7,500 0 0 0

Total Office Costs 121,250$ 0 0 0 0 0 11,000 1,250 18,000 51,500 39,500 0 0 0Operational Supplies and Materials Costs 37,500$ 0 0 0 0 0 2,200 0 0 15,900 19,400 0 0 0

Total Track Costs 189,500$ 0 0 0 0 10,000 0 20,000 25,000 112,500 17,000 5,000 0 0

Total Hard and Softs Development Costs 4,505,291$ 5,000 28,700 16,100 3,100 330,475 401,266 442,875 1,270,425 1,446,125 557,975 7,625 625 0

Development Fees 135,159$ 0 0 0 0 22,526 22,526 22,526 22,526 22,526 22,526 0 0 0Contingency 232,022$ 0 1,435 805 155 17,650 21,190 23,270 64,648 73,433 29,025 381 31 0

Working Capital 650,000$ 0 0 0 0 0 0 0 0 0 250,000 200,000 150,000 50,000

Total Build Out and Pre Opening Costs 5,522,472$ $5,000 $30,135 $16,905 $3,255 $370,652 $444,982 $488,671 $1,357,599 $1,542,084 $859,526 $208,006 $150,656 $50,000

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January Opening

2013 2014 2015 2016 2017 201875% of Potential Stabilized

RevenuesKarting $3,367,707 $4,490,276 $4,624,985 $4,763,734 $4,906,646 $5,053,846

Auto Storage $490,500 $654,000 $673,620 $693,829 $714,643 $736,083

Attractions / Multimedia $259,200 $345,600 $355,968 $366,647 $377,646 $388,976

Retail Sales $174,394 $232,525 $239,501 $246,686 $254,086 $261,709

Food Non Restaurant $37,500 $50,000 $51,500 $53,045 $54,636 $56,275

Gross Revenues $4,329,301 $5,772,401 $5,945,573 $6,123,941 $6,307,659 $6,496,889Growth => 3.0% 3.0% 3.0% 3.0%

ExpensesMargin for Karting 70% ($2,357,395) ($3,143,193) ($3,237,489) ($3,334,614) ($3,434,652) ($3,537,692)Margin for Storage 64% ($316,230) ($421,640) ($434,289) ($447,318) ($460,737) ($474,560)Margin for Attractions 10% ($25,920) ($34,560) ($35,597) ($36,665) ($37,765) ($38,898)Margin for Retail Sales 30% ($52,318) ($69,758) ($71,850) ($74,006) ($76,226) ($78,513)Margin for Food Non Restaurant 30% ($11,250) ($15,000) ($15,450) ($15,914) ($16,391) ($16,883)

Operating Expense ($2,763,113) ($3,684,151) ($3,794,676) ($3,908,516) ($4,025,771) ($4,146,544)Operating Margin => 64% 64% 64% 64% 64%

Growth => 3.0% 3.0% 3.0% 3.0%

Restaurant/BarGross Estimated Third Party Revenues $1,685,925 $2,247,900 $2,315,337 $2,384,797 $2,456,341 $2,530,031

Rent to AGP as a % of Sales 5.5% $92,726 $124,000 $127,344 $131,164 $135,099 $139,152

NET OPERATING INCOME $1,658,914 $2,212,250 $2,278,241 $2,346,589 $2,416,986 $2,489,496

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Anaheim Grand Prix is searching for initial seed capital, providing a very attractive equity and interest based return for an initial capital injection of $150K to $250K to secure key pre-development entitlements and permit ready plans.

The full development cost of the venture requires $3MM to $5MM to capitalize the entire project. Investment subscriptions in the project are currently available in $500K units with an attractive equity conversion component.

Corporate sponsors are being identified to partner with Anaheim Grand Prix as event sponsors, product placement, display space, marketing and activation programs. Extensive work is being done to activate potential candidates for this level of marketing and implement them during our development process. The idea is to have several well known brands ready to begin various levels of product and service placement, creative advertising and promotions in place from the grand opening.

o We are currently in active discussions with Mazda, GoPro, HJC Helmets, Hot Wheels, Mother’s Polish, Piloti, Tamiya, Troy Lee Designs and Falken Tires.

The managing partners are actively seeking investors in the start up of Anaheim Grand Prix. Interested parties are encouraged to contact us immediately.

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Investor Contact: Brian Turner (562) 400-1300

Diego Morales (323) 712-0218

Development, Media & PR Contact: Todd Lewis (949) 439-3242

Counsel: Nick Schneider

[email protected]

Website: Anaheimgrandprix.com

Facebook: Anaheim-Grand-Prix Twitter: AnaheimGP

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