Big News on the Horizon

Several projects are in the final stages of pre-development, moving quickly into the fast and furious world of feasibility, cost, and sustainability reports. Drawings are being developed and development permits sought at least in a few cases, and as more and more information comes to light more and more developments are being pieced together. Now more than ever I am interested in working partners versus simply trying to organize and develop systems myself.

A brief overview and update:

Fort Car Wash: The sale is now completed, save for one or two minor issues stemming from the local municipality and the inspection of a few valves. Sadly, the subsequent Fort Truck Bay Expansion has been shelved as a result - but this does free up some capital which can be moved into other projects.

Edson Car Wash: Going strong - weather permitting. Currently the main focus is obtaining more fleet accounts and developing the additional sources of income typically associated with this style of building. A "Mudbuster" is also being developed, and one excellent prototype was viewed in Rocky Mountain House. This prototype has been in service for the better part of a decade and it's structure and durability are a testament to the owners of the Car Wash that developed this. A patent has been filed on this product, and I wish the inventors the best of luck as it is an excellent, high quality, effective solution to the mud and debris-related problems faced in rural communities.

Truck Stop Development: A suitable parcel with a seller willing to sell has been located. Time is required to put this style of deal together, though several other methods have been put forward in terms of Corporate Structure and Financing to assist this deal move through it's paces. I would expect construction on this project potentially this year (2007) culminating in early 2008. This may be a portion of a much larger development, though I would still expect this to require $600-750,000 as an equity portion.

Rural Industrial: A reasonable parcel with a potentially willing seller may have been located. More information as it becomes available, though there may be some other options in this regard.

Rural Multi-Family: A parcel has been obtained and developmental drawings are in their early phases. This forms the first portion of a three phase development on this parcel, though a meeting with the local developmental authority may provide additional options. The commercial portion of this development is the one that is most appealing at this point, with a myriad of options available.

Destination Development: With the upswing on consumer spending capability in Alberta an interesting offshoot has been the destination development. This style of development serves a specific use and relates only to gatherings of a group of similarly minded persons for a specific purpose. A working partner is the main stumbling block in this case, but a three to four acre site would allow for the best solution. More info as it becomes available, and preferrably to fruition.

Well, here's to tommorrow and the brightness it brings.

Growth

Recently I have been trying to push the boundaries of what I know and move into an area of development much larger in scope and size compared to what I have traditionally been doing.

It's been hard slogging. On many occassions I did not believe I could do it. I must have "almost" given up a half dozen times. I'm still not out of the woods yet. But I do feel as though a major hurdle has been overcome. I feel as though I am achieving this next level and moving myself and my growth in the direction it needs to be.

Without getting into too much of the philosophy behind all of this - let's just say that unlike the majority of subjects out there, the nature and source of information on this particular area of development is extremely limited and typically comes only from actually living the experience. So what is it that I'm trying to do? Well.... I can't really reveal the details until we have shovels in the ground, so to speak - but I'll try and give an example of the growth I'm trying to undertake.

To date, I have mostly undertaken small to medium sized commercial projects - car washes, strip centers, plazas and the like. The majority of my focus has been on 1 to 2 year developmental projects. Typically in the sub $5,000,000 CDN range. A few projects have been loftier reaching in to the $20,000,000 range, but as yet this size of development has not come to fruition.

The growth I am trying to reach is into this $20-25,000,000 range. However, this range has been strangely elusive to me. What I have come to realize in the last several months is that I must reach still higher to achieve even this level of development. The developmental goals I am now focused on are of the $60-100,000,000 range and would take place over 5 to 7 years. Thus, I achieve my $20,000,000 developmental goals but on a recurring basis inplace of as a one time project.

And the thing that helps to cement that I am on the right track - since I have opened my mind to such a project and all that is required, I have come across 2 separate sites in the two communities I had in mind to pursue. In addition, information is coming as to better communities to focus on (out of the two we focused on, one is an ideal hot spot and the other we will have to develop into one), and potential clients are supplying the information to us as well as assisting with the design.

As soon as I opened myself to the ideas presenting themselves a myriad of options become available and the deals piece themselves together with the layout and schedules almost appearing on the pages. When the student is ready, the teacher shall appear - and sometimes the teacher is what is already within you.

Here's to tomorrow, and all the promise it holds.

Where to Begin?

It's been quite a journey til now.
These last few months have seemed like years in terms of growth and knowledge.

First the updates:

Fort Car Wash: Phase One Renovations complete. Phase Two Truck Bay Expansion drawings complete. Development permit has some hiccups, but after a meeting or two, we should have a path forward on this issue.

Edson Car Wash: Up and running. After several months worth of gremlins, the troubles seem to have stemmed from an incorrectly installed CPU and have since been corrected.

Urban Market: On hold until I clone myself.

West Edmonton Industrial Strip Center: On hold until Spring 2007.

There are a host of other developments in the final stages of analysis moving towards becoming full fledged projects.

Edmonton Area Staged Project: A multi-phased project in a nearby Edmonton locality. The first two stages center around 30 unit multi-family apartment style condominium complexes. The final stage creates a medical based strip center. This project is expected to last 3-4 years. More info as it comes together.

Edmonton Area Industrial Project: Another multi-phased project in a nearby Edmonton locality. Several sites are being chosen which would allow for some commercial applications - Gas Bar, Car/ Truck Wash, Truck Stop, Motel, Restaurant, and Miscellaneous CRU; in addition to the primary goal of establishing an industrial complex. This project is expected to last 5-6 years.

Edmonton Area Land Development: Again, a multi-phased project involving the development of raw land to a planned community consisting of rural acreages, commercial, residential, and multi-family style areas.

Industrial and Truck Wash Development: Several communities in Northern Alberta are being researched for a new Industrial and Truck Wash development. Two front runners are located significantly far from Edmonton (3-5 hours driving time). Careful consideration needs to be placed on this development, solely from the travel perspective.

Here's to tomorrow and the tremendous planning involved in just one of these projects.

Busier than Ever

I apologize for the delay in posting, but here's an overview of the current projects:

Fort Car Wash: Phase One renovations and refinancing complete. Construction portion of renovation (Doors, steel coating, and motor repositioning) was scheduled for 4 days and lasted 5. 1 additional day was required for curing of steel coating.
Equipment portion of renovation is actually still ongoing. Work was estimated at 2-3 days, actual was closer to 2 weeks. Equipment supplier is short on manpower, and the current installation is still incorrect. Timer display is not 100% functional and random fluctuations still occur. Disappointing.

Fort Car Wash Phase 2: Truck Expansion still planned. Searching out alternatives to alleviate some pressures.

Edson Car Wash: Up and Running. Construction has some deficiencies and electrical has left alot to the imagination. Equipment supplier still has deficiencies (same supplier as in Fort Saskatchewan) . Credit Card based payment system is still outstanding. Automatic has had a string of issues. Seems to be corrected at this point.
Name has been trademarked as : Splash & Go Car Wash

Urban Market: With renewed vigor we chase this project. Manpower, location, equity position, and suppliers in place. Focus and vendors required.

West Edmonton Industrial Strip Center: On hold till Spring 2007.

Commercial Strip Center: This project has been dropped. I do not believe in the long term stability of this development nor this location.

Rural Multi-Family: This project is still on the books and will be combined with a Commercial Plaza Development. I expect to sell of a portion of this project to fund the other portion.

A host of other projects are currently being progressed upon but the details at this point are difficult to pass along without specifics.

Here's to the future.

An Overdue Update

Fort Car Wash Refinancing: Financing Institution has agreed to the financing package put forward. Currently jumping through hoops and completing renovations as required.

Fort Car Wash Phase 2: Local competition has closed up shop and the building is now in recievership. Commercial bay requests continue to increase. A brochure is currently being assembled for this expansion - construction could potentially start as early as August/ September 2006, completing in early 2007.

Each bay would measure 25' wide and 110' long and would include it's own fixed catwalk. This new construction would cost an additional 65% as compared to the original constructed value and would allow for two additional industrial bays (as compared to 10 car bays).

The advantage being that a truck will take 45-60 minutes to clean, versus a car or pickup which takes on average 10 minutes. Add to this the extra large bay requirements and the subsequent additional charge for use ($1.25 per minute versus $0.60 per minute) and the benefits quickly add up.

Car/Pickup (denoted "Car") versus Long Haul Truck/ Industrial Vehicle (denoted "Truck") Direct Comparison:

• Typical Car Wash: $6
• Typical Established Car Wash Occupancy (Rural): 25-35%
• Typical Cost per Bay - Car (without Land): $125,000
• Typical Income Range per Bay - Car: $3,800-5,300 per month

• Typical Truck Wash: $65
• Typical Established Truck Wash Occupancy (Rural): 35-50%
• Typical Cost per Bay - Truck (without Land): $350,000
• Typical Income Range per Bay - Truck: $11,000-15,800 per month

Edson Car Wash: Construction continues. Labor shortage affects our major suppliers. Car Wash equipment may not be complete until end of June 2006.

Urban Market: Research continues. More focus required.

A few new projects on the horizon. More details as they become available.
The lack of detailed information will be mitigated soon.

Here's to the future.

Spring-ing into the New Year

An (overdue) Update:

Fort Car Wash Refinancing: Approved by both the financing institution and the board. Upgrades in progress. Equipment pricing still to be finalized as new technologies may be better utilised than traditional upgrades.

Fort Car Wash Phase 2: Local competition has closed up shop and the building is now in recievership. Commercial bay requests continue to increase.

One option to capitalize on this may be the incorporation of a second company - with the first owning the buildings in both Edson and the Fort and the second acting as an operating company for both of these locations. A third company would then act as the equipment owner in both cases and would then be paid a lease payment for the use of said equipment.

Another option would be for the merger of the Edson and Fort companies with the inclusion of an additional two commercial bays in the Fort location. Sound expert advice will be required for this development.

Edson Car Wash: Construction continues. Sumps and in slab piping is currently underway. Floor pour is expected in two stages during the week of April 18-25 2006. Operational date has moved to mid-June 2006.

Urban Market: Research continues. More focus required.

On the horizon:

West Edmonton Industrial Strip Center: Our development with the Truck Parts supplier has enlarged to some degree and now consists of a total building foot print of 18,500 square feet with most bays measuring 25' wide x 100' long. Leases for upto 10,000 square feet are being sought to add value and further develop the site. Preliminary drawings should be available by week's end.

Commercial Strip Center: A potential has arisen for a commercial strip center near a soon-to-be boom town. Several major projects are slated for the area and should they proceed the land values are expected to double virtually overnight. Cashflow analysis is still somewhat weak as their are virtually no comparables in the marketplace and the cost to construct at this point is somewhat higher than expected due to the increased labor costs.

Construction on such a development would not occur until a minimum number of the homes in the area are built and the other developments slated - Truck stop and Hotel are completed. However, a multi-unit apartment project has been approved in the area across the street from this development. In excess of 150 units are expected to be built over the next while.

Rural Multi-Family: A design has been chosen and approximate costs estimated for this development. Active pursuit of a site to facilitate the 36 unit complex in several boomtowns with underground parking and mid-level finishes throughout is underway. Each unit measures 1100 sft, has 2 bedrooms and 2 bathrooms and in 2004/05 retailed for $175-$200,000 in Camrose. Similar developments are occuring in a host of Alberta cities.

Active research in this area will be the primary hope of locating adequate land for construction. The primary focus at this time is adequate corporate structure to ensure maxmium return and financing in all projects.

Well, here's to the future and all it holds.

March brings a new direction

First an Update:

Fort Car Wash: Excessive snow in the Edmonton area has slowed business some. Warmer temperatures and sunshine are expected over the next few days helping to improve business to some extent.

Fort Car Wash Refinancing: Reviewed financials have been completed and submitted. Hopefully this is the last of the hurdles involved before finalization.

Fort Car Wash Phase 2: Growing interest in the area is leading the charge here. A template format for the letters of interest to be filled out by the local business will be ready within a few weeks.

Edson Car Wash: Sump placement is currently ongoing. Slab is expected to be poured by end of March 2006. Building should be complete save for seasonal deficiencies and paving by April 30 2006. Operational date is still May 2006.

Urban Market: Business plan to be complete by May 2006 with advertising beginning in June 2006. Operational date is October 2006.

Potential Projects:

West Edmonton Industrial Development: Our development with the Truck Parts supplier has enlarged to some degree and now consists of a total building foot print of 19,000 square feet with most bays measuring 25' wide x 100' long. A lube operation is currently being sought to fill a 5000 square foot double bay.

Rural Multi-Family: A design has been chosen and approximate costs estimated for this development. Active pursuit of a site to facilitate the 36 unit complex in several boomtowns with underground parking and mid-level finishes throughout is underway. Each unit measures 1100 sft, has 2 bedrooms and 2 bathrooms and in 2004/05 retailed for $175-$200,000 in Camrose. Similar developments are occuring in a host of Alberta cities. Building footprint is approximately 15,000 SFT.

Construction cost for these units run about $130,000 each which includes access, underground parking, permits, and engineering. New Home warranty costs are about $10,000 per unit, which is held in an account for a period of time and if unused, returned. Normally a 1.5 acre lot is required, and assuming it can be purchased for $360,000 - this would add an additional $10,000 to the cost of development. Total cost is typically $150,000 per unit with a portion of the $10,000.

The pre-construction pricing (selling a maximum of 20 units) would be of the range $170-$180K. These units would be sold in lots of five. A final selling price (post-construction) would then start at $200K. In most areas, costs greater than $200 per square foot for similar developments with street level parking are common. Pricing remains to be fine-tuned as several hurdles are still on the horizon.

Commercial Strip Center: A potential has arisen for a commercial strip center near a soon-to-be boom town. Several major projects are slated for the area and should they proceed the land values are expected to double virtually overnight.

The commercial strip center would encompass 20,000 square feet of space with 12-14,000 reserved for a pharmacy, doctors office, dentist's office, and potentially a medical lab of some kind to complete the theme. A franchise such as Tim Horton's or Wendy's is being sought to provide a drive-through on site as the immediate area will service more than 2000 homes. The remaining areas will be used for local amentities such as hair salons or fast food franchises.

Construction on such a development would not occur until a minimum number of the homes in the area are built and the other developments slated - Truck stop and Hotel are completed.

Accessory and Parts Wholesale Franchise: On the horizon is a unique opportunity to grow a northern franchise of an established American Parts and Accessory wholesale dealership. This would be developed with assistance from a few existing businesses which supply to the oil patch and wish to grow in the retail and industrial areas.

While it would appear that the focus has moved from the Truck/ Car Wash concept it should be noted that a much broader picture is now involved. Washes will be used to secure larger centers with multiple tenants. Additionally, effort and focus is being expended towards the development of a new bank type operation which would lend funds as well as provide banking related services.

So - here's to tomorrow and all it holds.