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.