HomeMy WebLinkAbout20220381.tiffRESOLUTION
RE: APPROVE APPLICATION FOR SMALL BUSINESS INCENTIVE PROGRAM AND
AUTHORIZE RELEASE OF ECONOMIC DEVELOPMENT TRUST FUNDS (TIER I) -
REDEFINED PROPERTIES, LLC, DBA REDEFINED EQUESTRIAN, LLC
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, the Board has been presented with an Application for the Small Business
Incentive Program to authorize Release of Economic Development Trust Funds (Tier I) between
the County of Weld, State of Colorado, by and through the Board of County Commissioners of
Weld County, on behalf of the Department of Planning Services, and Redefined Properties, LLC,
dba Redefined Equestrian, LLC, with further terms and conditions being as stated in said
application, and
WHEREAS, after review, the Board deems it advisable to approve said application, a copy
of which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that the Application for the Small Business Incentive Program to
authorize Release of Economic Development Trust Funds (Tier I) between the County of Weld,
State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf
of the Department of Planning Services, and Redefined Properties, LLC, dba Redefined
Equestrian, LLC, be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that Tier I Economic Development Trust
Funds, in the amount of $4,291.51, be, and hereby are, released and payable to Redefined
Properties, LLC, dba Redefined Equestrian, LLC, to offset various impact fees incurred and
previously paid by Redefined Properties, LLC, dba Redefined Equestrian, LLC.
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 24th day of January, A.D., 2022.
ATTEST: ,�� W •X,,G[o%�
Weld County Clerk to the Board
BY:
W t
Deputy Clerk o the Board,
BOARD OF COUNTY COMMISSIONERS
WEL OUNT , COLORADO
S K. James, Chair
L
To: County Commissioners
Cc: Don Warden, Finance Director
Chris D'Ovidio, Controller
From: Tom Parko, Director of Planning Services /•2
Subject: Redefined Equestrian, LLC
Date: January 17, 2022
I am pleased to submit to the Board of County Commissioners an SBIP for Redefined
Equestrian. This small business operates a equine boarding, training, lesson and bodywork
facility. The business is a use by right because the operation doesn't exceed the maximum
number of animal units or daily trips.
Redefined Equestrian is a small business operating in unincorporated Weld County with
two (2) employees. The two (2) employees are also the business owners, Daina Kaugars
and James Kersey.
As part of the application requirements, the owner submitted their business plan and met
with representatives from the Small Business Development Center (SBDC). Jeff Engle
reviewed the business plan and found it satisfactory. Attached is the confirmation email
from the SBDC.
The Small Business Incentive Plan was created by the County Commissioners to help
offset land, building permit, septic and impact fees associated with development. Below is a
breakdown of the fees:
Total $6,791.51
According to the Small Business Application requirements, the business falls under Tier 1
and is eligible to receive up to $20,000. The business is obligated to cover the first
$2,500.00.
The Planning Services Director recommends approval of this application and respectfully
requests that the County Commissioners authorize and release $4,291.51 from the
Economic Development Fund.
SERVICE, TEAMWORK, INTEGRITY, QUALITY
2022-0381
01 /Z4
WELD COUNTY
SMALL BUSINESS INCENTIVE PROGRAM
APPLICATION
Notice: Prior to filling out the application, please review the Program Criteria and Process handout
regarding the program's eligibility requirements.
Program Purpose: Weld County has established a Small Business Incentive Program (BIP) which will provide
eligible businesses financial assistance to offset land use, building permit, and several impact fees. The program is
designed to reduce upfront capital outlay for small businesses located in unincorporated Weld County.
Application Instructions: This application must be filled out completely and signed. Attachments and exhibits
may be included. A cover letter that adequately explains the scope of the company's business model must
accompany the application.
Application Date: 1/12/2022
1. COMPANY INFORMATION
Applicant Name:
Redefined Properties, LLC
Mailing Address:
45998 County Road 15, Fort Collins, CO 80524
Telephone:
331 210 8345
Email:
james.e.kersey@gmail.com
Fax:
Web Site:
2. INCORPORATION INFORMATION (if applicable)
Federal ID#:
84-3143192
Type:
LLC
State:
CO
Date of Incorporation:
9/23/2019
CONTACT PERSON
Name & Title:
James Kersey, member
Mailing Address:
45998 County Road 15, Fort Collins, CO 80524
Telephone:
331 210 8345
Fax:
E-mail Address:
james.e.kersey@gmail.com
4. PROPERTY INFORMATION
Parcel ID #:
055517100001
Property Address:
45998 County Road 15, Fort Collins, CO 80524
Legal Description:
E2 NE4 17 8 67
Owner(s) / Tenet(s):
Redefined Properties, LLC / Redefined Equestrian, LLC
5. PRODUCT AND/OR SERVICE Business activities involving the project site in unincorp. Weld County:
-orse boarding, riding lessons and training
6. COUNTY ASSISTANCE - PAST & PRESENT
ientify below past incentive assistance provided to the applicant by Weld County:
Vone
ientify below current requests by the applicant for any other assistance from Weld County:
Jo requests for any other assistance outside of this program
7. BUSINESS PLAN Provide a brief overview of the proposed business in Weld County.
Full business plan attached. Redefined Equestrian is a full -service horse boarding, training, lesson, and bodywork business that
relocated from Livermore, CO to Weld County in the Spring of 2021. Construction of the facilities completed in late 2021. We
have been partially operational since late Spring 2021 and have nearly reached full capacity already, ahead of our original
projections.
8. WORKFORCE INFORMATION For the purpose of this application a full-time employee works a minimum
of 32 hours per week. The business may have a combination of part-time employees that is the equivalent
of at least one full-time employee.
Current Employees:
o I Existing payroll (total number of filled and unfilled positions).
9. JOB LOCATION VERIFICATION At least 50% of the employer's workforce must reside in Weld County
for a period of one-year.
Certified Copy of Payroll: A business presently located in Weld County must provide a certified copy of
its payroll as of the date of the application.
2
10. SBDC VERIFICATION The applicant shall consult with the Small Business Development Center prior to
receiving funds. The applicant shall attach a copy of an affidavit signed by the Director of the SBDC or
his/her designee. The SBDC contact information is:
Mail: 902 7th Avenue
Greeley, CO 80631
Website: http://www.neeccosbdc.org
Phone: (970)352-3661
11. QUESTIONS & ASSISTANCE
Weld County Department of Planning Services: The application will be processed by the Director of
Planning Services. The Director may contact the applicant for clarification regarding the application or to
request additional information during the review process. If the application is approved, the Director
will contact the business when preparing the agreement and when scheduling the agreement for action
by the Weld County Board of Commissioners. The applicant is encouraged to contact the Director of
Planning Services to request assistance with the program requirements and with filling out the
application. The Director can be reached by the following methods:
Applications can be mailed, faxed or e -mailed to the Department of Planning Services:
Mail: Weld County Department of Planning Services
Attn: Planning Director
1555 North 17TH Avenue
Greeley, CO 80631
Phone: (970) 400-6100 Fax: (970) 304-6498 Email: tparko weldgov.com
REMINDER: The application may be delayed if it is incomplete,
unsigned or lacks required documentation.
All documents provided to Weld County are subject to the Public Records Act, State of Colorado.
11. AUTHORIZED SIGNATURE The signature appearing below must belong to an employee of the
company who is authorized to sign the application on behalf of the company.
I attest to the accuracy of the information which is provided hereinabove.
(L Member
(signatu e) (title)
(print name)
(date)
Business Plan
November 30th, 2021
For
Redefined Equestrian, LLC
(607) 431-3105
daina@redefinedequestrian.com
www.redefinedeguestrian.com
Executive summary
Redefined Equestrian, LLC is a full -service equine boarding, training, lesson and
bodywork business. The business also offers show and clinic organization, bringing
affordable learning opportunities to the northern Colorado region. The business' goal is
to be the premier eventing barn in the region. Located 15 minutes northeast of Old
Town Fort Collins, Redefined Equestrian is perfectly located to be accessible from town
and from 1-25, Colorado's primary interstate. Led by Daina Kaugars, an upper -level
eventer and trainer, Redefined Equestrian has the capability to provide quality
instruction and high -end care at prices that are very competitive.
Construction started in March 2021 and the facility opened for partial operations in May
2021. As of November 30th, the facility is fully operational and essentially complete with
only minor amenities for clients left to be completed. We are near 100% capacity
already, ahead of early projections, with only 1-2 boarding slots currently available.
Conservative net operating income estimates range from approximately $22,000 in year
one to approximately $85,000 in years six through ten. These estimates account for
daily operating costs, rent, maintenance expenses, taxes and other miscellaneous costs
associated with the growth of the business.
Company description
Redefined Equestrian, LLC offers equine boarding, training, riding lessons, equine event
organization and equine sales in Colorado and surrounding areas. The business offers
competitive rates and an inviting atmosphere to clients across many demographics.
These demographics range from children just beginning to ride through seasoned horse
owners. The greater Fort Collins area is home to thousands of horses, many of which are
owned by amateurs (those not involved in the horse industry professionally). A majority
of these owners seek to board their horses in well -run, professional equine facilities.
Located on 80 acres 20 minutes from Old Town Fort Collins, Redefined Equestrian, LLC
offers premier boarding for English disciplines. The focus of this operation is dressage
and eventing, but the facility does not exclude hunter/jumper riders or those interested
in western disciplines. In the Fort Collins area, there are a handful of English- focused
boarding facilities, but Redefined Equestrian, LLC offers several amenities that other
existing facilities do not. These include:
1. Turnout space on ample acreage: only two other facilities in northern Colorado
offer turnout on large acreage. One facility is located in Wellington, roughly 20
minutes further from Old Town Fort Collins than Redefined Equestrian, and the
OA
other only offers outdoor spaces for equine use. All other reputable boarding
facilities in Fort Collins are under 30 acres and do not offer ample turnout space,
an amenity many horse owners prioritize.
2. Access to a large indoor arena: many facilities in the area do not offer indoor
riding space at all, and those that do are significantly smaller than the indoor at
Redefined Equestrian. Any indoor arenas found in the greater Fort Collins area
are 60 to 80 feet wide, and range in length from 150 to 180 feet. No other facility
offers a 100x200 indoor arena. The benefit of a 100x200 arena is that in
inclement weather, an indoor arena of this size allows for the continuation of all
training, including practicing full jump courses. In addition, an indoor of this size
ensures that boarders have space to ride without feeling overcrowded.
3. A full cross-country course through the preliminary level: only two other facilities
in the area offer cross-country schooling on their property, neither of which are
professionally designed nor run recognized horse trials.
4. Full -care boarding options that range from stall board to pasture board: Many
facilities in the area offer "full care" board, but add charges for blanket changes,
grain, hay, or other care options. Redefined Equestrian offers truly all-inclusive
boarding.
In addition to offering premier care, Redefined Equestrian, LLC is managed by Daina
Kaugars, who has extensive experience caring for, training, and competing sport horses.
With over 12 years of industry experience, a B.S. in Equine Science from the University
of Kentucky, and training in equine bodywork and alternative therapies, Daina has the
comprehensive knowledge required to effectively and efficiently run a major equine
boarding and training operation.
Premier facilities and care are not the only areas of competitive advantage over most
boarding operations in the area. Redefined Equestrian also aggressively manages cost of
feed (hay and grain) compared to many facilities, which is a major cost area in a
boarding facility. We have consistently been able to keep hay costs to —$175/ton or less
compared to $300+/ton that many facilities pay. We have done this by developing
relationships directly with hay farmers rather than hay brokers that many facilities use,
continually searching for new hay suppliers in the area, and acquiring our own transport
and offloading capabilities.
In addition, Redefined Equestrian feeds grain from individual components (e.g. beet
pulp, alfalfa pellets, and barley) instead of a processed feed (from companies like Purina
or Triple Crown). We have proven that this approach is half the cost of using
3
processed feed while allowing us to feed higher quality ingredients and customize the
feeding to each individual horse's needs.
Market analysis
In the greater Fort Collins area, there are eight major boarding facilities. These are Bella
View, located in Wellington, CO, Savanna Ridge, located in Laporte, CO, and six farms in
Fort Collins, CO: Paradise Found, Sunrise Equine, Oasis Equestrian Center, Four Winds,
Taft Hill Acres, and Poudre River Stables Most of these facilities are consistently full and
maintain a wait list for prospective clients.
Bella View located in Wellington, CO is the only true eventing facility in northern
Colorado. They offer board that ranges from pasture for retired horses ($400/month) to
stall board ($700/month), and require that any boarder is also in a training program.
These programs start at $400 per month and increase in price as the number of sessions
per week increases. This facility has a cross-country course available for boarders to use,
and an indoor arena that is 90x175.
Savanna Ridge, located in Laporte, CO is an all -English boarding facility of 12 acres. This
facility offers two boarding options- $450/month for paddock board, or $750/month for
stall board with a run. The facility is on small acreage and offers no turnout. It is
primarily a hunter/jumper facility and has a resident trainer on -site.
Paradise Found Farm in Fort Collins offers many boarding options. Stall board is either
$615/month with no turnout, or $695/month with turnout. Paddock board is
$525/month, and pasture board is $400/month. This facility has an indoor that is 70x180
and is primarily hunter/jumper.
Sunrise Equine offers shared paddock board with turnout on 30 acres. This facility has a
small cross-country course and nice outdoor arena without lights. They charge $450 per
month, and boarders enjoy the turnout space and low-key feeling of the farm. There is
no indoor grooming or riding space, nor is blanketing or graining included in the base
board price.
Oasis Equestrian Center in Fort Collins is located on 10 acres, and offers various
boarding options from $335 to $550 per month. The most frequent turnout that Oasis
offers is 3x per week. Their website discusses good -quality hay and an inclusive barn
family, both of which are necessary to run a successful boarding facility. Oasis has an
indoor arena that measures 60x180.
4
Four Winds in Fort Collins is a hunter/jumper boarding facility and offers on -site training
and lessons. Stall board starts at $575/month, and does not include blanketing, grain or
turnout (all options that are offered for an additional price per month).
Taft Hill Acres in Fort Collins is a laid-back, quiet boarding farm that offers shared
paddock board that ranges from $310 to $350 per month. The price depends on if you
assist with cleaning pens or choose to have the facility clean for you. They only have an
outdoor arena and provide horses grain for an additional fee.
Poudre River Stables in Fort Collins is operated as a co-op facility. Stalls are $305 per
month, shed/pens are $250 per month, and owners must supply all hay, grain, shavings
and labor caring for their horses every month. This facility also only has an outdoor
arena.
Each of these facilities offers a slightly different set of amenities, services and level of
care. Self -care options, while hands-off and "pure profit", allow for a wide variety of
care standards and small problems can easily go unnoticed. Redefined Equestrian does
not offer any pure self -care boarding options to ensure that our standard of care is
maintained.
Based on this market analysis, Redefined Equestrian offers three tiers of boarding. All
three options include turnout, which is a rarity in Fort Collins. Pasture board is offered at
$400/month and includes hay but blanketing of horses is not included. Clients on
pasture board are invited to grain their own horses or participate in a co-op schedule
with other pasture board clients. Stall board is offered at two price points. Stalls without
runs are $550/month, and stalls with runs are $600/month. Stall board includes
blanketing, grain and hay, shavings, stall cleaning, and turnout.
Organization and management
Redefined Equestrian, LLC, is run by both Daina Kaugars and James Kersey. Daina has
extensive experience both as a working student on farms in Kentucky and managing her
own smaller farm in northern Colorado prior to moving to the current location. Daina
has also trained horses, taught clients, and organized clinics and shows as a professional
for several years.
Daina manages day to day operations which include the care and keeping of the horses
on the property and ordering and delivery of hay/grain/shavings/supplies. She also
organizes clinics, shows and events on the farm, and runs the training, lesson and sales
program. Daina oversees hiring staff on an as -needed basis as the operation grows.
Employees are responsible for day-to-day chores such as stall cleaning, turnout of
horses, assisting with facility maintenance, and occasionally tacking and un-tacking
horses. Daina performs billing and manages payment collection from clients.
5
James manages the business finances, paying bills, planning for future facility
maintenance and expansion, and ensuring smooth operations. James has over 10 years
of experience in project management, leading many multi -million dollar efforts that
have included significant work budgeting, tracking costs, and planning future spending.
James has helped grow one Fort Collins engineering firm from 7 to 30 employees. James
also has 5 years of successful experience in rental property ownership and management.
The business is organized as two separate LLCs for tax and liability purposes. Redefined
Equestrian, LLC, provides the boarding, training, and other services described. The
facility and other capital assets are held in Redefined Properties, LLC. Redefined
Equestrian pays rent to Redefined Properties for the use of the facility and other assets.
Service or product line
Redefined Equestrian, LLC, offers a number of equine -related services. The primary
service is equine boarding. Additional revenue streams include training, lessons, sales,
organization and hosting of shows, and equine bodywork/therapy.
Training services include lessons, partial training (horse is trained 1-3 times per week,
and the owner rides the remainder of days), full training (horse is trained 5-6 times per
week), and intensive camps. These camps offer 1-2 lessons per day as well as full board
for the week and are geared toward adult amateurs looking to boost their skills in a
short, intense program. One to two day clinics with top professional riders in the
country are also be hosted regularly.
The Redefined Equestrian, LLC, sales program includes project horses owned by the farm
as well as an in-house concierge service to find suitable horses for clients. Daina has
successfully sold horses and matched clients with horses previously, and this aspect of
the program is being expanded at the new facility.
Redefined Equestrian, LLC, hosts three to six horse shows each year at the facility. These
include schooling shows offering hunter/jumper classes, smaller -scale and unrecognized
horse trials, with a goal to eventually host larger recognized horse trials in 3- 5 years.
These shows provide additional income and are good marketing for the other service
lines.
6
Additionally, Daina is a pulsed electromagnetic field (PEMF) therapy practitioner. This
form of equine bodywork is non-invasive and is growing in popularity. Daina previously
operated a mobile PEMF therapy practice throughout Colorado. PEMF sessions are now
offered as a complement to training and lesson services, and as a standalone service.
Marketing and sales
Marketing of equine boarding, training and sales generally follows three major pathways
— word of mouth, online advertising, and local advertising. Daina has been involved in
the northern Colorado equine industry for over five years and has built an extensive
social network of both equine professionals and amateurs living in and outside of the
greater Fort Collins area. The equine industry in northern Colorado is a "mile wide and
an inch deep," meaning that while there are a multitude of trainers, riders and horse -
folk in the area, a majority of those horse people know one another. Word about good
facilities, bad facilities, events and shows travels quickly among this network.
Online advertising has three key pieces — first, the business needs to come up in the
most basic of Google searches. This means having key words on the website to allow it
to be found easily. Second, the business needs to have an active online presence
through social media. Redefined Equestrian, LLC, has an online presence via both an
active Facebook page and on Instagram. Followers get news of events, boarding
openings, shows and clinics first through our social media. To date, the Facebook page
has over 620 followers. Third, the business needs to be posted on websites such as
equinenow.com, craigslist.org, and yelp.com. We intend to make sure that Redefined
Equestrian, LLC, appears on these and other free advertising platforms.
Local advertising so far has not been required but would focus on flyers posted in major
equine retail stores. These include the local tack stores, which are Happy Horse in Old
Town Fort Collins and 287 Feed and Tack on the north end of Fort Collins, and feed
stores such as Northern Colorado Feeder's Supply, Tractor Supply, Ranchway, Bomgaar's
and Jax. All of these stores have community boards for flyers and are often a valuable
resource for the community to learn about new facilities or equine and livestock -related
events.
Advertising is all about getting the word out to the general population, but the
marketing strategy doesn't stop there. Once people are interested, the key is to have
them stop in for a farm tour, and then commit to boarding with Redefined Equestrian.
The facility caters to client needs through the three tiers of boarding options, custom-
tailored lesson and training packages, and by hosting welcoming low-key
7
shows and clinics. The barn atmosphere fosters inclusivity and positivity, which appeals
to many amateur equine owners. In addition, Redefined Equestrian offers tailor-made
feed and board programs for each client and their horse. No horse has exactly the same
needs as the next, and Redefined Equestrian ensures that each horse's needs are met in
order to ensure a happy and loyal boarding client base.
Word of mouth and Daina's presence in the community was hugely successful in
establishing an initial client base earlier this year, even as construction took longer than
expected. We were able to reach 50% capacity in May even though the facility was only
partially complete/operational and that has steadily increased. We are now nearly full
with only 1-2 boarding spots available.
Financial projections
Financial projections have been developed for each service line described previously.
These are outlined in the sections below with total projections provided in the last
section.
Horse Boarding
Facility capacity and monthly board rates are provided in the table below.
Boarding Option Monthly Board Capacity
Rate (2021)
Full care stall w/ run board ;.
$b
14
Full care stall w/out run board
$550/month
10
Partial care pasture board
€2Q/mon
The original goal was for construction to be complete in late Spring/early Summer of
2021. This was significantly delayed with the bulk of construction not completing until
August and additional elements, such as the 14 horse runs, not complete until later in
the Fall. Still, while original projections assumed only 20% occupancy at the completion
of construction, we were able to achieve 50% occupancy by May 2020 and are currently
at almost 100% occupancy. Projections for revenue and gross profit for boarding are
shown in the figure below. COGS projections are conservative estimates based on nearly
3 years of data from our smaller boarding operation located in Livermore, CO.
8
Boarding Projections
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Year 1
Training Services
Year 2
Years 3-5
10 Boarding Revenue — Boarding COGS
Boarding Gross Profit
Figure 1: Projected boarding revenue
Years 6-
Lessons are priced at $50/session for 2021 while training rides are priced at
$45/session in 2021. This pricing is competitive in the local market. In Year 1, the
combined number of lessons and training rides is expected to ramp to 27/month
("6/week) by summer and then hold constant through year end. This figure is
expected to be rather conservative based on typical lesson/training volume at other
facilities in the area — often 20+/week. Revenue projections for training services are
shown below.
Training Services Revenue
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Year 1 Year 2 Years 3-5 Years 6-10
Figure 2: Training services revenue projections
Revenue from any intensive
training
camps
has not been included in these
projections as they will be scheduled
less
frequently.
Horse Shows and Clinics
Horse shows fall generally into two categories: less formal, unrecognized (by national
organizations) shows and horse trials/shows that are recognized by the governing
national organizations.
The
former category
offers a fun, friendly
atmosphere for horse and rider at a lower
cost
than recognized
shows. These shows
can also be hosted more often.
In 2019 and 2020, Redefined Equestrian co -hosted shows with Sunrise Equine. These
shows have been very well -received by riders in the area. Starting in December 2021
these shows will be hosted at Redefined Equestrian. These shows are expected to
increase in frequency and popularity after Year 1 with recognized shows starting in
Year 3.
Clinics are typically 1-2 day events where top professional riders are hosted and
provide training and instruction to riders in individual or group sessions. Redefined
Equestrian has hosted clinics at a number
of facilities
in Colorado
since 2016 and
Daina hosted clinics in Kentucky from 2014-2016.
Clinics
continue to
be a key part of
Redefined Equestrian's business with clinics
in 2021
and beyond
hosted at our
facilities. Revenue projections for shows and clinics are shown below.
10
Show and Clinic Revenue
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Year 1 Year 2 Years 3-5 Years 6-10
Figure 3: Show and clinic revenue
PEMF Therapy
Therapy pricing is $75/session. PEMF therapy tends to be more popular during the
regular competition season as part of a holistic training regimen to ensure horses are
in peak condition for events. This is generally March to October for most riders in the
area. However, PEMF is still used during the off-season for horses with injuries or
chronic conditions.
PEMF Therapy revenue is not expected to grow significantly. The primary benefit
moving forward will be that the majority of PEMF sessions will occur at Redefined
Equestrian, significantly reducing travel time and expenses compared to prior years.
PEMF Therapy revenue is shown below.
11
PEMF Therapy Revenue
5,450
5,400
5,350
5,300
5,250
5,200
5.150
5100 /
5,050
5,000
4,950
Year 1
Horse Sales
Year 2
Years 3-5
Figure 4: PEMF therapy revenue
Years 6-10
Horse sales have not been formally included in the financial projections in order to
be conservative due to the potentially intermittent/infrequent nature. There are two
separate components to Redefined Equestrian's horse sale program: development
and sale of "project" horses (owned by the business) and concierge service to match
riders with horses available for sale by third parties.
Project horse development involves acquiring a horse that has innate talent but lack
of training and experience for a low dollar amount (sometimes even free) and then
training the horse to be a suitable dressage or eventing horse for a beginning or mid-
level rider. This process typically ranges from 6 months to a year, though can extend
beyond a year in specific situations.
While purchase price for a project horse can vary, a typical amount is on the order of
$1,000. In early years, typical sales price is expected to be on the order of $5,000.
However, this amount can rise considerably to $10,000 and even $20,000+ in later
years as the reputation for developing quality horses is established. Redefined
Equestrian has already sold one project horse in 2020 for $5,000 and is currently
developing a horse for sale in 2021.
Concierge services operate on a completely different model. Riders often enlist the
aid of a professional when searching for a new horse to help ensure that the horse is
healthy, has a good temperament, and is an appropriate fit for the rider's goals. This
12
service typically
comes with a 5%
fee on the
sale price of the horse. This service is
expected to be a
small component
of revenue
overall.
Summary of Annual Revenue
Annual revenue from each service line is shown below. Boarding is expected to
remain the primary revenue stream with minor growth after Year 2. Training services
and horse shows/clinics offer the most opportunities for growth and diversification.
Revenue by Service Line
300,000
250,000
200,000
150,000
100,000
50,000
0
Year 1
Year 2
-10 Boarding— Training Services
Years 3-5
Years 6-
Shows and Clinics — PEMF Therapy
Figure 5: Revenue by service line
Total revenue, gross profit, and net profit before taxes are shown in the figure below.
13
Revenue, Gross Profit, and Net Profit (before tax)
300,000
250,000
200,000
150,000
100,000
50,000
0
Year 1
Year 2
10 Revenue
(before tax)
Years 3-5
Gross Profit
Figure 6: Revenue, gross profit, and net profit before taxes
14
Years 6 -
Net Profit
Owner: REDEFINED PROPERTIES LLC
Account: R6780516 Parcel: 055517100001
Address: 45998 COUNTY ROAD WELD
Section: 17 Township: 8N Range: 67W
Zoning: Agriculture
ELD CTY PLANNING NORT
1555 N IAN AVE
GREELEY 80631
0712B!2021 13:542t
CREDIT CARD
VISA SALE
Card ; XXXXXXXXXXXX1600
Cho Cad: VISA CREDIT
AID A000000O031010
SEQ #: 4
Batch x 455
INVOICE 4
Approval Code 26760D
Entry Method Cho Read
Mode Issuer
SALE AMOUNT $6791.51
CUSTOMER COPY
INVOICES:
DEPARTMENT OF PLANNING SERVICES
Building Inspection Division
1555 North 17th Avenue
Greeley, CO 80631
Website: www.weldgov.com
Phone: (970) 400-6100
Fax: (970) 304-6498
DICE and RECEIPT SUMMARY
RSN21-0098
REDEFINED PROPERTIES LLC
45998 CR 15
Building\Residential\Construction
New\NA
JAMES KERSEY
KERSEY JAMES
45998 CR 1 5
FT COLLINS, CO CO
Invoice# 130782 Amount
Building Permit Fee (Enter 1) $1,462.25
Electrical Fee by Square Feet (Enter SQ $78.00
FT)
Facility Impact Fee Single -Family $730.00
Detached (Enter 1)
Stormwater Drainage Fee Single- $972.80
Family Dwelling Structure (Enter $)
RIF Areal Single -Family Detached $2,598.00
(Enter 1)
Major Building Plan Review Fee (Enter $950.46
1)
Total Fee:
$6,791,51
Invoice and Reciept Summary Page 1 of 2
fL.w..
BLDG017
Hello