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HomeMy WebLinkAbout20151174.tiff RESOLUTION RE: APPROVE APPLICATION FOR SMALL BUSINESS INCENTIVE PROGRAM AND AUTHORIZE RELEASE OF ECONOMIC DEVELOPMENT TRUST FUNDS (TIER I)- CKG,INC.,DBA MOUNTAIN VIEW RV AND BOAT STORAGE 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 and a Request for the Release of Economic Development Trust Funds(Tier I), from CKG, Inc., dba Mountain View RV and Boat Storage to 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,with 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, and release Economic Development Trust Funds (Tier I), in the amount of$2,608.85, payable to the Department of Planning Services to offset various impact fees incurred by CKG,Inc.,dba Mountain View RV and Boat Storage. NOW,THEREFORE,BE IT RESOLVED by the Board of County Commissioners of Weld County,Colorado,that the Application for the Small Business Incentive Program and a Request for the Release of Economic Development Trust Funds (Tier I), from CKG, Inc.. dba Mountain View RV and Boat Storage to 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, be, and hereby is,approved. BE IT FURTHER RESOLVED by the Board that Tier I Economic Development Trust Funds,in the amount of$2,608.85,be,and hereby are,released and payable to the Department of Planning Services to offset various impact fees incurred by CKG, Inc.,dba Mountain View RV and Boat Storage. CC77u 1 P)"'1ai 2015-1174 PL2290 APPLICATION FOR SMALL BUSINESS INCENTIVE PROGRAM AND AUTHORIZE RELEASE OF ECONOMIC DEVELOPMENT TRUST FUNDS(TIER I)-CKG,INC.,DBA MOUNTAIN VIEW RV AND BOAT STORAGE PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded,adopted by the following vote on the 27th day of April,A.D.,2015. BOARD OF COUNTY COMMISSIONERS WELD COUNTY,CO ORADO ATTEST: A ara�/Lm,y r ar ra Kirke e Chair Weld County Clerk to the Board • Mike Freeman,Pro-Tem uty Clerk to the Boa -�',` ��►�� can ' Conwayy,ry APPROVE WS TO FOR iUl t 11/419 lie A.Cozad /tom r _• ''' �,-'� County Attorney /'� Steve Moreno Date of signature: 2015-1174 PL2290 MEMORANDUM • _4ti'_--`r To: County Commissioners Cc: Don Warden, Finance Director Al JJ Barb Connolly, Controller I From: Tom Parko. Planning Services Director Subject: CKG Small Business Incentive Plan Date: April 23. 2015 I am pleased to submit to the Board of County Commissioners CKG's Incentive Plan Application. CKG (AKA Mountain View RV and Boat Storage) is a small business operating in unincorporated Weld County with two (2) employees. The owner of CKG is Chad Goens. Mr. Goens and his company operate a RV and Boat storage facility. As part of the application requirements. Mr. Goens submitted his business plan and met with representatives from the Small Business Development Center (SBDC). Jen Negley with SBDC stated in an email (attached) that CKG's business plan is adequate. The Small Business Incentive Plan was created by the County Commissioners to help offset any fees associated with development. The fees incurred by CKG are as follows: Land Use Permit Fee: $2.500.00 Building Permit Fee(s): $1.043.65 Impact Fees: $2991.20 Septic Permit Fee: $850.00 Grading Permit Fee: $203.00 Recording Fees: $21.00 Total $7,608.85 According to the requirements. CKG falls under Tier 1 and is obligated to cover the first $5,000.00. The difference in the amount the County will cover is $2.608.85 The Planning Services Director recommends approval of this application and respectfully requests that the County Commissioners authorize and release $2,608.85 from the Economic Development Fund. 2015-1174 SERVICE.TEAMWORK.INTEGRITY. Esther Gesick From: Jenn Negley [Jenn.negley@eastcoloradosbdc.com] Sent: Wednesday, April 22, 2015 5:00 PM To: Tom Parko Jr. Subject: Re: FW: Mountain View RV and Boat Storage Business Plan Hello Torn, I have met with Chad Goens, and everything is approved on our end. Please let me know if everything goes through for your office. Best Regards, Jenn Negley Business Consultant I East Colorado Small Business Development Center 807 17th St, Suite D I Greeley, CO 80631 I PH 970.351.4274 Jenn.Negley@EastColoradoSBDC.com Iwww.EastColoradoSBDC.com Follow us on Facebook or Twitter for updates, events, & tips UNC Biz Hub Collaborative UNIQUE AND INNOVATIVE On Tue, Apr 21, 2015 at 10:43 AM, Kyla Benson <kyla.benson@eastcoloradosbdc.com> wrote: Hi Torn, I am forwarding your request to Jenn Negley. She is the consultant that has been meeting with Chad. Jenn, Will you please view Chad business plan and verify whether or not is is acceptable for the Small Business Incentive Program. Best regards, Kyla Kyla Benson Director of Events & Business Consultant I East Colorado Small Business Development Center 1 807 17th Street, Suite D I Greeley, CO 80631 I PH 970.351.4274 Kyla.Benson@EastColoradoSBDC.com I http://www.eastcoloradosbdc,com/ Follow us on Facebook or Twitter for updates, events, & tips On Tue, Apr 21, 2015 at 10:18 AM, Tom Parko Jr. <tparkoa,co.weld.co.us>wrote: Kyla- Good morning. Chad with Mountain View RV(AKA CKG)has applied for the Small Business Incentive Plan and was wondering if he met with you all to go over his business plan? His contact info is below and the business plan attached. If you have met with Chad please send an email verifying that his plan is acceptable. Thanks! Tom Parko, M.A. Director of Planning Services Weld County Dept. of Planning Services 1555 N. 17th Avenue Greeley, CO. 80631 Office: 970-353-6100, ext 3572 Mobile: 970-302-5333 2 `._. __ Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error,please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Chad Goens [mailto:ckgoens@q.com] Sent: Monday, April 20, 2015 8:52 AM To: Tom Parko Jr. Cc: ckgoens@q.com Subject: Mountain View RV and Boat Storage Business Plan Tom, Here is an electronic copy of the business plan that I gave you on Friday. Thanks for taking this to the Commissioners. If you need anything else from me, please let me know. Thanks again. Chad 303-525-1320 3 ~�-' ` fer WELD COUNTY i e" r IP 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 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/.23 .-40/5- 1. COMPANY INFORMATION Applicant Name: CKG Incorporated dba Mountain View RV and Boat Storage 15281 WAGON WHEEL DR Mailing Address: BRIGHTON,CO.80603 Telephone: 303-525-1320 Email: CKGOENS@Q.COM Fax: N/A Web Site: N/A 2, INCORPORATION INFORMATION (if applicable) Federal ID#: 46-3627535 _ Type: S-Corp State: Colorado Date of Incorporation: 9/11/2013 3. CONTACT PERSON Name&Title: CHAD GOENS 15653 CR 4 Mailing Address: BRIGHTON, CO 80603 Telephone: 303-525-1320 Fax: N/A E-mail Address: ckgoens®q.com 4. PROPERTY INFORMATION Parcel ID#: 147127000033 15653 CR 4 Property Address: BRIGHTON, CO 80603 Legal Description: S2/SE4/NW4/SE4/E2SW4SE4; S27,TIN, R66W; 6th P.M. Owner(s)/Tenet(s): CKG Incorporated 5. PRODUCT AND/OR SERVICE Business activities involving the project site in Weld County: Mini storage with an office building,dump station as well as indoor RV and boat storage. 6. COUNTY ASSISTANCE - PAST& PRESENT Identify below"past"incentive assistance provided to the applicant by Weld County: N/A Identify below"current" requests by the applicant for any other assistance from Weld County: N/A 7. BUSINESS PLAN Provide a brief overview of the proposed business in Weld County. ATTACHED 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. Current Employees: 2 I Existing payroll(total number of filled and unfilled positions). 2 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. 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.orq Phone: (970) 352-3661 11. QUESTIONS & ASSISTANCE 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: Mail: WELD COUNTY DEPARTMENT OF PLANNING SERVICES ATTN: PLANNING DIRECTOR 1555 NORTH 171"AVENUE GREELEY COLORADO 80631 Phone: (970) 353-6100 Fax(970) 304-6498 Weld County Department of Planning Services: The application will be processed by the Director of Planning Services for review. The Director may contact the applicant for clarification regarding the application or to request additional information during the review process. The Director will contact the business when preparing the agreement and later when scheduling the agreement for action by the Weld County Board of Commissioners. Applications can be mailed, faxed or e-mailed to the Department of Planning Services: WELD COUNTY DEPARTMENT OF PLANNING SERVICES 1555 N. 171h Avenue, Greeley Colorado 80631 Fax: (970) 304-6498 toarko O weldQov,com REMINDER: The application may be delayed it it is incomplete, unsigned or lacks required documentation. Ali 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. §41)1044/14PRE51 Dew r (signature) (title) (print name) (date) 3 i3TD 2013 Mountain View Rv&Boat Storage Mountain View RV and Boat Storage Business Plan OWNERS Page 2 of 42 Mountain View RV and Boat Storage 15653 CR 4 Brighton,CO 80603 303-525-1320 mountainviewrvandboatstorage@gmail.com 1.16 Page 3 of 42 I. Table of Contents I. Table of Contents 3 II. Executive Summary 4 III. General Company Description 5 IV. Products and Services 10 V. Marketing Plan 11 VI. Operational Plan 22 VII. Management and Organization 29 VIII. Startup Expenses and Capitalization 31 IX. Financial Plan 32 X. Appendices 36 Page 4 of 42 II. Executive Summary Mountain View will be an elite upscale RV and Boat Storage facility for the greater Brighton area.Mountain View will provide its clients with the option of outdoor storage,covered canopy storage,enclosed storage, and mini-storage. Mountain View will primarily market its storage facility to the owners of recreational vehicles that live in covenant controlled housing developments with HOAs that do not allow the outside storage of recreational vehicles at their homes. Mountain View will also market to the oil and gas industry, over the road truckers,and homeowners that simply do not have the space to store their cars,trucks, equipment,or personal possessions at their place of business or home. Mountain View RV and Boat storage is owned by CKG Incorporated. CKG Incorporated is a joint venture started by Chad and Kelley Goens,each has a 50%shareholder interest in the S-corporation. Shareholder capital investments in the corporation was used to purchase the land(15653 CR 4,Brighton,Colorado),fund the rezoning of the property to meet Weld County codes,purchase equipment,and will be used to fund the completion of Phase 1 of the business. Phase 1 of the business will provide 189 outdoor storage lots that will have projected sales of$11,340.00 a month in gross income at full capacity. Mountain View will seek to lend$400,000.00 to begin construction of Phase 2 when 50 percent of the Phase 1 lots are leased.This will provide Mountain View with projected income of$5670.00 a month.The $400,000.00 in capital will be used to fund the construction of an additional 122 outdoor storage lots,two buildings that will provide 109 mini-storage units, two buildings that will provide 39 enclosed RV storage units,drill a fresh water well,and install an individual sewage septic system.With the completion of Phase 2, Mountain Views projected sales forecast at full capacity will increase by$28,945.00 a month for a total projected sales forecast of$40,285 a month. Mountain View will seek to lend an additional$400,000.00 to begin construction of Phase 3 when 50 percent or 156 of the Phase 1 and Phase 2 outside storage lots are leased.This will provide Mountain View with projected income of$9360.00 a month.The$400,000.00 in additional capital will be used to fund the construction of an additional 94 outdoor storage lots,two buildings that will provide 30 additional enclosed storage units,and two covered canopies that will provide 42 covered RV storage lots.With the completion of Phase 3,Mountain Views projected sales forecast at full capacity will increase by$19,770.00 a month for a total projected sales forecast of$60,055 a month. Page 5 of 42 III. General Company Description What business will you be in?What will you do? Mountain View RV and Boat Storage will be an upscale(outdoor/covered/indoor) storage facility for RV and boat owners. Mountain View will also provide indoor mini-storage for the non-RV and boat owners and will contain an isolated section of the yard that will allow for the storage of commercial and industrial equipment and vehicles. Mountain View will be an owner/operator business.The owners will be responsible for securing a premier parcel of ground,rezoning if applicable,and for the direct construction and build out of the property and business. Mission Statement: Mountain View's focus will be on providing a upscale RV and Boat storage facility for its clients that is convenient,clean,secure,safe,and provides easy access for today's larger RVs at an affordable cost. Goals: 1. Build and grow the business in a phased approach using the owners expertise,skills,and assets to ensure success • Mountain View's goal will be to design and plan the facility to what it will look like at full build out.The design will then be broken down into a three phase construction approach.This will allow the owner/operator to design,develop,and construct the entire facility by using the owner/operators expertise,skills,and assets without the high costs of hiring outside consultants and contractors. • Phase 1 —Land will be purchased,engineering design will be completed,proper permitting from the county will be obtained,grading completed,office/shop will be constructed,secure fencing installed,access gates installed,and an all-weather asphalt surface will be applied.This will allow the business to open with 189 outdoor storage lots in a timely manner.The revenue will be utilized to seek financing to complete the remaining two phases. Phase I expected completion will be June 2015. • Phase 2—Phase two will begin when Mountain View has leased 50 percent or 95 of its outdoor storage lots. Institutional financing will be sought to complete the construction of phase 2. During this phase a well will be drilled,septic system installed,two RV dump stations,an additional 122 outdoor storage lots will be added, 109 indoor mini storage units will be added, and 39 enclosed RV storage garages.Phase 2 construction is expected to start in March of 2017 and complete in December of 2017. girmommw Page 6 of 42 • Phase 3—Phase three will be the completion phase with the addition of 94 outdoor storage lots, 42 covered canopy storage lots,and 30 additional enclosed RV storage garages. Phase 3 construction expected to start in March of 2019 and complete in December of 2019.Phase 3 construction start date will not start until 50 percent or 156 of the phase 1 and phase 2 outdoor storage lots are leased. 2. Provide a business that has curb appeal • Mountain View has purchased a premier parcel of land that is located off of paved roads,has easy access to main traffic arteries,and is in close proximity to the city.The facility will be constructed in such a manner that when you first enter the property it will have and appearance that clients will feel good about storing their property there.This will be accomplished by architectural aesthetics of the building,landscaping,stone columns,and cedar fencing at the entrance to the facility. • Mountain View will provide a secure location with by utilizing chain link fence,coded keypad ingress/egress,outdoor security cameras,and outdoor lighting. 3. Provide an affordable storage solution to clients • Mountain View will provide its clients with the lowest storage costs in the area by keeping its overhead low. 4. Provide convenience to clients • Mountain View will provide convenience to its customers by installing coded access keypads, credit card payment kiosks,compressed air station,RV Dump station that will be installed in Phase 2,large thru ways for easy access and maneuverability,and pull thru lots to limit backing. 5. Grow customer base • Mountain View will begin placing signage at the facility in March 2015 to alert local traffic that the facility will be opening soon and provide phone numbers to seek further information. • Mountain View will begin grand opening advertising in May 2015 in local publications to promote the business and early contracts. • Mountain View will start creating an internet website in March 2015 and will go live in May 2015 to help grow customer awareness a month ahead of the grand opening,generate pre sales,and advertise pre sale discounts. 6. Improve profitability • Mountain View will begin building Mini-Storage structures during the second phase of construction.This construction is expected to begin in March of 2017 and complete in December of 2017. Mini-Storage will return higher rents for the same amount of real estate,will add a different line of clients to Mountain Views customer base,and will increase sales and profit for the company. • Mountain View will begin building Enclosed Storage structures during the second phase of construction.This construction is expected to begin in March of 2017 and complete in Page 7 of 42 December of 2017. Enclosed Storage will return rents that are 4.5 times more that the open storage and will occupy the same amount of real estate,will cater to high end RV and Boat owners,and will increase sales and profit for the company. • Mountain View will begin building Covered Storage structures during the third phase of construction.This construction is expected to begin in March of 2019 and complete in December of 2019. Covered Storage will return higher rents for the same amount of real estate, will allow customers the option to upgrade,and will increase sales and profit for the company. Business Philosophy:What is important to you in business? Mountain View will strive to"Pay as you Go"and only grow at what the market can sustain. It is very important to keep debt at a manageable level and overhead low so that an affordable service can be provided to its clients.As the business matures and revenues increase it is Mountain View's vision to continue to invest in upgrades to the facility that will benefit its clients,increase its amenities,and ultimately retain and grow its client base. To whom will you market your products? Mountain View has selected a location that is close to high density housing developments that have home owners associations (HOAs) that don't allow the storage of recreational vehicles at a client's home. Describe your industry. Is it a growth industry?What changes do you foresee in the industry,short term and long term? How will your company be poised to take advantage of them? RV wholesale shipments to retailers tracked by Recreational Vehicle Industry Association(RVIA)continued to steadily climb with shipments rising to 246,483 units through August,a gain of 9%over the 226,125 units shipped through the first eight months of 2013.The RV industry's shipments will total 349,400 units in 2014, an 8.8%increase above the 2013 total of 321,127. According to a new forecast by RV industry analyst Dr. Richard Curtin,RV shipments are also expected to rise for a sixth consecutive year in 2015 with wholesale production forecasted to reach 360,100 units,a gain of 3.1%over the projected 2014 total and the industry's highest total since 2006. "The RV industry's promising future is based on gains in jobs,incomes and household wealth,"said Curtin, director of consumer surveys at the University of Michigan,during his presentation to RVIA members at the association's annual Committee Week in early June. "Rising home values will continue to strengthen home equity,and along with higher stock prices,will bolster the willingness and ability of new RV buyers." Page 8 of 42 RV makers continue to benefit from people's strong attachment to the RV lifestyle,Curtin said. Consumers have adjusted their RV preferences to meet their new economic realities,and RV manufacturers have adjusted their product lines to reflect those changes.Both RVers and RV manufacturers must be recognized as early adapters to changing economic conditions,Curtin told the gathering. "The RV marketplace has confirmed the perfect match between the continuous innovative process used by RV manufacturers and suppliers and the enduring appeal of the RV lifestyle among consumers,"Curtin said. Since 1987,the City of Brighton has experienced rapid growth in population and is currently evaluating a number of large development proposals.Some of the larger development plans that have been incorporated into the 2020 land use plan are: • Mountain View Estates I&II •The Preserve •Chapel Hill •Carma •Brighton East Farms •Todd Creek Pheasant Ridge •Platte River Ranch •Sugar Creek •Parkside •The Village •Bromley Park •Hishinuma •Palizzi •Case Farm •Indigo Trails •Diedrichs Farm •Davis •Prairie Center •Silver Peaks-Lochbuie As of 2014,Brighton's population is 33,219 people.Since 2000,it has had a population growth of 53.64 percent and is projected to grow even more.The City of Brighton recently approved the MountainView Estates subdivision that is expect to bring several thousand new homes to Brighton.The Silver Peaks subdivision,part of the City of Lochbuie,adjoins the City of Brighton,and will bring another 2,000 residential homes to the area. Current storage facilities exist and are small,crowded,located on dirt roads,and the newer ones are far away from the city with little to no security.Modem RVs have become larger in size with the development of larger trucks and towing capacities.The older storage facilities have not kept up with the latest size trends in the area or they simply do not have the space to accommodate larger vehicles. With the continued growth of the recreational vehicle industry and the increasing population of the greater Brighton Colorado area,a recreational vehicle storage facility in this area is already in demand and the need for future storage is clear with all the new developments in the area. Page 9 of 42 Describe your most important company strengths and core competencies.What factors will make the company succeed?What do you think your major competitive strengths will be?What background experience,skills,and strengths do you personally bring to this new venture? As a husband/wife owner/operator,we plan to run the day to day operation to keep the overhead low in the first few months.We plan on hiring a full time office manager to run the office and keep books within six months of opening.This will be dependent on actual company revenue.My wife and I have engineering degrees and I have over twenty years of construction experience.I also own most of the heavy equipment that is required to prepare and build out the site.This will provide the company with a very distinct advantage of being able to do most of the planning and construction in house and keeping the cost of startup and construction to an absolute minimum. I am planning the construction of the site in a three phased approach that will allow the company to start bringing in revenue early in the development of the site.The three phase approach will allow the owners to pay for the first phase without borrowing money.Once the client base has grown enough to sustain responsible lending,the company will seek institutional lending to help complete the second and third phase.This will reduce the amount of debt the company will be required to carry and will allow the company to expand as market demand increases. Mountain View will construct a facility that has curb appeal,amenities that clients are looking for,and the look and feeling of a secure facility from the time they enter the property until they leave.This will attract clients from the competition in the area.When you compile the curb appeal,amenities,and security with the most affordable storage in the region,Mountain View will succeed at getting clients to move from the competition. Legal form of ownership: S-Corporation (Why have you selected this form?) The company will be setup as an S-Corporation that will have two equal shareholders. Chad Goens will be the President and Kelley Goens will be the Vice President and Treasurer of the corporation. An S- corporation will protect the shareholders from"double taxation,"once at the corporate level and again on the individual shareholder leveL Allowance of business income and losses to be passed through to the shareholders on their personal tax returns is extremely helpful in the startup phase of a new business.These tax incentives will allow more of the shareholders money to flow back into the business for expansion and upgrades while limiting the shareholders personal liability exposure. Page 10 of 42 IV. Products and Services Describe in depth your products or services. Mountain View will provide a secure and upscale self-storage solution for clients that own recreational vehicles and live in neighborhoods that do not allow the outdoor storage of recreational vehicles. Amenities will include large pull thru sites,RV dump stations,compressed air station,mini-storage,covered storage,and enclosed storage.Mountain View will provide easy access off of paved roads to accommodate today's larger recreation vehicles.Site thru ways will have an open design for clients to navigate easily.The site will have client coded access with security cameras to monitor who is coming and going from the site at all times.This will provide clients with a piece of mind that their precious item are secure. What factors will give you competitive advantages or disadvantages?Examples include level of quality or unique or proprietary features. The premier location of Mountain View will give this business a very distinct advantage.All of the other competition in the area is a fair distance from town.The ones that are close to town are dirty,extremely small and crowded,in industrial areas with high dust/dirt problems,provide no security monitoring,and no RV dump station.None of the direct competition has sewer dump stations or security cameras.Another key advantage to this business will be the owner/operators are funding the majority of this project on the front end that will keep overhead at a minimum and allow this business to offer the absolute cleanest facility at the lowest lease rate.At full build out this will be the largest and most spacious facility in the area.The business model will be to profit from quantity,quality,security,and location for a lower price than the competition. What are the pricing,fee,or leasing structures of your products or services? At full build-out,Mountain View will provide 404 outdoor storage spots, 110 mini storage units,69 large enclosed storage garages and 42 large covered canopy spots.The following fee schedule will apply: Outdoor Storage $60(55'spots) $24,240 /month Mini Storage $100(Avg.rent based on size) $11,000/month Large Enclosed Storage $275(Per unit) $18,975/month Large Canopy Storage $140(55'@$2.50 per foot) $5880 /month Page 11 of 42 V. Marketing Plan Economics • What is the total size of your market? o Brighton's population as of 2014 was 33,219 people and if one in 12 vehicle owners nationwide there would be 2768 RVs in Brighton. However,the average persons per household is 4 which equates to 8304 households in Brighton. If one in 12 households owns an RV,there would be 692 RV owners in Brighton • What percent share of the market will you have? o Phase 1 of Mountain View will provide 189 outdoor storage lots with a potential for 25%of the market share in Brighton. Mountain View will also try to pull clients from the surrounding communities of Lochbuie and Ft. Lupton and has the real estate for growth as the community grows. • Trends in target market—growth trends,trends in consumer preferences,and trends in product development. o The RV industry has transitioned to much larger RVs over the last decade with the increased tow vehicle capacities.Mountain View will be the only facility in Brighton catering to the larger RVs.Larger RVs has put the squeeze on the smaller self-storage lots and ultimately they are forced to turn people away when their facility can't accommodate the larger rigs. Owners prefer the larger facilities and sites as it reduces the chance of damage to their property while trying to navigate congested facilities. • Growth potential and opportunity for a business of your size. o Mountain View will be developing the front 8 acres of a 24 acre site.This will allow for future growth. Mountain Views plan is to add mini-storage,covered canopy storage,and enclosed storage as the business grows.Mountain View will also be installing a RV sewage dump. If clients utilize this service 5 times a year on average,Mountain View could gross another$4725 a year in sewage dump fees for the first Phase alone. (189 spots * 5 dumps per year*$5 per dump) • What barriers to entry do you face in entering this market with your new company? o Lack of available capital lending.Small business loans have been difficult for Mountain View to secure since it is a start-up and not an established business that can produce a history of income. Mountain View has overcome this challenge by"paying as you go"and structuring the business build out in three phases.This will allow Mountain View to complete Phase 1, open for business,and produce income.As income steams increase,Mountain View will be able to obtain capital based on income.This will allow Mountain View to expand and increase profits. o Consumer acceptance and brand recognition will be a challenge for any new start-up business.Mountain View expects to quickly overcome this challenge with the selection of a Page 12 of 42 premier location,facility aesthetics,great security features, RV sewage dump station,and large pull-thru sites. • Things that could affect your company? o Changes in the economy can affect this type of business.Since RVs are not essential,are mostly purchased with disposable income,they are the first to go when household spending become tight. However,when the economy is doing well and households have more disposable income,there is a much higher demand for RV storage solutions. o High gas and fuel prices can affect people purchasing new recreational vehicles.With fuel prices nearing 10 year lows it is not expected to affect Mountain View in the near term.Even as fuel prices increase,RV owners will still need a place to store their vehicles. Mountain View is also trying to diversify in Phase 2 to include mini-storage which will gain clients outside of the RV industry.Mini-Storage tends to do better in down economies when people are downsizing and seeking storage solutions for their excess possessions. Customers Mountain View will be targeting a number of different customers.Primary customer base is anticipated to be RV,boat,and household good owners.Nationally,nearly one in twelve vehicle owning households in the United States owns a RV,with ownership rates steadily increasing.Among households that have never owned an RV,more than one in six expressed interest in buying one in the future. However,Mountain View will also be soliciting leases to construction company's looking to store large heavy equipment,oil company's looking to store equipment,and local businesses looking to store their products. RV and Boat owner demographic Profile: • Age—Nationally the median age for RV owners is 49.The highest ownership rates are for those aged 55 and over. However,because the 35 to 54 age group is much larger,more RVs are owned by this younger group than any other;and it is also the fastest growing group,under-scoring the success of industry marketing efforts aimed at the baby boomer. AGE Ownership(%) 18-34 3.1 • 35-44 9.6 45-54 8% 55-64 13.7 65-74 7.5 75+ 6.8 • Gender—Nationally, 84 percent of RV owners are married. Page 13 of 42 • Location—RV and boat storage trade area is the geographic area adjacent to the subject property from which it draws its customers.The primary trade area includes four key elements: time-distance travel requirements;land use patterns;natural barriers;and psychological factors.RV and boat storage facilities tend to have larger trade area of 5 to 10 miles in radius.The demand is driven by cities and neighborhoods with restrictive or prohibitive RV parking ordnances,homeowner association restrictions,and CC&Rs that prohibit RV parking. • Income level—Nationally the median house-hold income for RV owners is$56,000. Ownership data indicates an upward trend to a peak ownership rate for households with incomes just under $100,000.00 per year. Conversely,the relatively high ownership rate for those with incomes under $25,000.00 reflects the income of households in their retirement years. RV owners are likely to own their own homes and spend disposable income on traveling an average of three weeks a year.That leaves 49 weeks annually in which they need a safe and secure place to store a prized possession. Income Ownership(%) Under$25k 4.9 $25k-$34k 7.1 $35k-$49k 8.5 $50k-$74k 9.6 $75k-$99k 10.1 $100k+ 6.9 Competition Competitor A: Pony Express Mini Storage—180 Bromley Business Parkway,Brighton,CO OUTDOOR 20' $35 30' $40 40' $45 50' $55 ENCLOSED 5x10 $59 8x20 $140 10x10 $112 10x15 $140 10x20 $170 10x25 $185 10x30 $190 10x40 $250 12x40 $300 15x20 $210 Page 14 of 42 Pony Express Mini Storage will compete with Mountain View in all of the products offered.They are the closest in proximity and competitively priced.However,this facility lacks security,has poor access,does not offer a RV sewage dump,and is extremely tight and crowded. It has had a number of issues with people complaining about their property being vandalized and stolen.Pony Express Mini Storage is small and is very cramped and difficult to navigate. Mountain View will address all of these issues with a robust security system,large ingress and egress,large pull thru sites,and 35 foot plus drives inside the fence. This will be coupled with competitive pricing to attract new customers and lure existing Pony Express Mini Storage customers away. Competitor B:_Highway 85 Self Storage—1577 County Road 27,Brighton,CO OUTDOOR 20' $40 30' $60 40' $80 50' $90 ENCLOSED 5x5 $40 5x10 $55 8x20 $140 8x40 $170 10x10 $100 10x15 $125 10x20 $150 10x30 $170 Highway 85 Self Storage will compete with Mountain View in all of the products offered.They are 3 miles to the southwest of Mountain View and are almost double the price.This facility is dated,lacks location being located off of a dirt road,does not offer a RV sewage dump station,and is extremely difficult to access with narrow drives.The majority of complaints with this facility is the dirt road that it is located off of and this creates a dust problem with property being stored at the facility.When Highway 85 Self Storage was built it was built around much smaller vehicles and the RV industry has grown into much larger RVs and they don't fit well at this facility. Mountain View will address all of these issues with large ingress and egress,large pull thru sites,35 foot plus drives inside the fence to accommodate modem RVs,and a RV sewage dump station. This will be coupled with competitive pricing to attract new customers and lure existing Highway 85 Self Storage customers away. Competitor C: Brighton Outdoor Storage at Todd Creek—312 County Road 19,Brighton,CO Page 15 of 42 OUTDOOR 15' $25 20' $30 25' $38 30' $45 35' $53 40' $60 45' $70 50' $75 60' $90 Brighton Outdoor Storage at Todd Creek will compete with Mountain View in only the outdoor storage product.They are 7 miles to the west of Mountain View and are almost double the price.This facility is newer but lacks security,location being located off of a dirt road,does not offer a RV sewage dump station, and does not offer any covered or enclosed storage.The majority of complaints with Brighton Outdoor Storage at Todd Creek is the dirt road that it is located off of and this creates a dust problem with property being stored at the facility. Brighton Outdoor Storage at Todd Creek does not have cameras or a security system and its remote location makes it a target for thieves. Mountain View will address all of these issues with a robust security system,a RV sewage dump station,and a premier location directly off of paved roads. This will be coupled with competitive pricing to attract new customers and lure existing Brighton Outdoor Storage at Todd Creek customers away. Competitor D: Recreational Storage Solutions—5360 CR6,Erie,CO OUTDOOR 15' $40 20' $44 25' $55 30' $66 35' $77 40' $88 +5' $99 COVERED CANOPY t.5' $56.25 2(1' $75 3' $93.75 30' $112.50 35' $131.25 40' $150 45' $168.75 Page 16 of 42 ENCLOSED 25 $187.50 30 $225 35 $262.50 40 $300 45 $337.50 Recreational Storage Solutions offers all of the same products that Mountain View will.However,they will not be in direct competition with Mountain View due to their location.This is being included as this was the facility that Mountain View was modeled after.Recreational Storage Solutions is located 15 miles to the west of Mountain View,has a robust security system,RV sewage dump,has curb appeal,is at full capacity,and has direct access off of paved roads.This model seems to work since the facility is at full capacity with a waiting list and can still command rates nearly double what Mountain View is seeking. Competitor E:RMS Storage—12840 County Road 2 '/z,Brighton,CO Competitor F: Outpost Storage—2886 CR 41,Hudson,CO In the final column I have estimated the importance of each competitive factor to the customer. 1 =critical; 5 = not very important. Table 1: Competitive Analysis • Competitor ' Ranking Competitor A B FACTOR Me Strength Weakness Pony Express Hwy 85 Self Storage The outdoor 2 Lowest storage is The outdoor Price price and slightly higher storage is best value priced and the high,enclosed indoor storage storage is high is high Great location off Poor.Off of of paved paved roads Poor.Off of roads.Nice but very dirt roads and Location rural setting difficult to get bordered by to and the site m an industrial city limits is very area on two congested sides State of the Poor security. Secure 1 art security Internet location but is Security system with reviews extremely cameras indicate many dated __ I Page 17 of 42 Competitor Ranking Competitor A B FACTOR Me Strength Weakness Pony Express Hwy 85 Self- — f Storage and 24 hour problems with professional theft and monitoring vandalism Dump 1 Yes No No Station Poor.Site is 1 small and accessibility Poor.Site is for large This will be newer but very vehicles is the newest small. very facility Navigation congested. Accessibility designed to 4 with large Dated site handle the vehicles is very designed for industry's poor due to smaller largest RVs lack of real vehicles. Access to estate_ storage units is crammed due to lack of real estate. Great. 2 Latest and greatest keypad Fair. Mode access Fair.Modern m keypad controls, keypad Convenience 4 entrance gates, entrance access access with payment and gates. dated gates. kiosk,and sewage dump station Large 3 spacious outdoor storage, Poor. Poor.Few covered Enclosed large spots and canopy storage is only Selection storage, '� does not offer partially mini covered enclosed. storage and storage. 'Three sides completely enclosed storage. N/A—Self J N/A—Self N/A—Self 3 Service storage storage storage New to the Oldest 5 Expertise business Newer Facility business.Most experience Page 18 of 42 Competitor Ranking Competitor A B FACTOR Me Strength Weakness Pony Express Hwy 85 Self- Storage Company New Many negative Neutral Reputation Business reviews online Great curb 2 appeal,new facility, landscaping, stone column Clean and Appearance fences and ModernDated stone accents on the office. Great first impression Dated 5 Brighton Good website, website,only Buzz, no adds in list pricing,no website, local local Advertising I acebook, publication, publication and Craigslist or advertising,no Craigslist Facebook Craigslist or Facebook Mountain View should have a great competitive advantage over the two main competitor based on the competitive analysis done.Location,price,security,and accessibility seem to be the biggest advantages that Mountain View will have over the competition.Mountain View has an excellent location off of paved roads, priced lower than the competition while offering more amenities,24 hour professional security monitoring, and the most accessible and spacious storage facility in the competitive analysis.Another big advantage that Mountain View will have over the competition is the availability of the sewage dump station to its clients. Mountain View is a new business and will take time to get its name out.The other two businesses are well established but the advertising plans,cost competiveness,location,and security features should help lure customers away from existing businesses and make Mountain View a first choice for clients looking for first time storage options. Niche Mountain View is going to operate with very little overhead and will provide a great service to its clients. Mountain View is directly off of CR 4 and all roads coming into and out of the facility are paved. Mountain View will be constructed in such a manner that the curb appeal will be excellent,the site will be well lighted, secure,and clean.This will give clients a great feeling that the place they are storing their prized possessions will be secure and clean when they want to use them. Mountain View is the only storage facility in Brighton Page 19 of 42 that will offer a waste water dump facility.There is only one other waste water dump facility in the city and it is very tight maneuvering into and out of and does not provide storage. Strategy Mountain View will market the facility as an upscale facility with very affordable storage rates for the area. Promotion Mountain View will use local publishing's in the greater Brighton area to advertise its services.The use of social media and attending local RV and Boat shows will also be utilized. Mountain View will be in contact with local dealers and try and strike up partnerships with them that will allow the dealer to add short term storage incentives to customers purchasing recreational vehicles.This will provide a temporary storage solution for their customers and give Mountain View the opportunity to earn their business. Advertising will be solicited thru a local publication called the Brighton Buzz.This is an upscale advertising firm in the Brighton Area that circulates its publishing to all the areas in the greater Brighton Area.This publication allows color photos in their advertisements that will truly show off the curb appeal of Mountain View. Low cost advertising options such as craigslist will also be utilized to help advertise Mountain Views competitive rates. Mountain View will be promoting an upscale,clean,spacious,and secure facility,at the most affordable price around,in all of its advertising methods. Mountain View plans to advertise a special promotional one time offer to the first 150 customers to the facility that will allow customers to pay an entire year of storage upfront and receive 3 months free rent.This will help generate some extra startup capital in the onset of opening the business.Mountain View will offer similar promotional offers to repeat customers and clients choosing to pay a year in advance. Mountain View has a very sleek logo that will be used in all of its advertising and clients won't be disappointed with the views of the Rocky Mountains from the facility.The logo will be proudly displayed on a large well lighted sign at the entrance of the facility. Page 20 of 42 rJTn 2013 Mountain View RV&Boat Storage Promotional Budget Mountain View will spend$150 quarterly to get into the Brighton Buzz with a quarter page add and will provide coupons with storage savings that will allow us to track how our customers are finding us. If this is an effective way of advertising Mountain View will increase the running of the add to monthly. Craigslist,trade shows,and visiting dealerships will require little to NO budget to circulate adds. Craigslist is a free publication. Pricing Competitor D has been the facility that I modeled this business after.They started out with a 13 acre site and reached full capacity after a few years.They are also the highest priced facility.Mountain View will almost double the size of this facility at full capacity and intends to underprice Competitor D while offering better amenities. Mountain View plans on using its size,amenities,and low construction costs to keep its lease rates as low as possible while maintaining a very good profit margin. This pricing strategy is in line with the competitive analysis that Mountain View has completed This gives Mountain View and advantage over the competition in the infant stages of the business and will position Mountain View with the option to raise lease rates as the business grows instead of having to charge higher rates because you have a required profit margin. Price does not seem to be the driving factor in this business. Clients seem to be attracted to the"classiness and security"of the facility.The"classiness and security",customer service,and the lowest pricing in the industry will help Mountain View lure clients away from other facilities while maintaining very good profit margins. Page 21 of 42 Sales Forecast Table 2: Two-Year Sales Projections Month Outside Storage Sales/month Outside Storage Sales/month "Best Guess" "Worst Case" Jun 20 $1200 5 $300 Jul 30 $1800 10 $600 Aug 40 $2400 15 $900 Sep 50 $3000 20 $1200 Oct 55 $3300 25 $1500 Nov 60 $3600 30 $1800 Dec 65 $3900 35 $2100 Jan 70 $4200 40 $2400 Feb 75 $4500 45 $2700 Mar 80 $4800 50 $3000 Apr 85 $5100 55 $3300 May 95 $5700 60 $3600 Jun 105 $6300 65 $3900 Jul 115 $6900 70 $4200 Aug 125 $7500 75 $4500 Sep 135 $8100 80 $4800 Oct 140 $8400 85 $5100 Nov 145 $8700 90 $5400 Dec 150 $9000 95 $5700 Jan 155 $9300 100 $6000 Feb 160 $9600 105 $6300 Mar 165 $9900 110 $6600 Apr 170 $10200 115 $6900 May 180 $10800 120 $7200 Jun 189 $11340 125 $7500 Page 22 of 42 VI. Operational Plan Mountain View will try and make the client experience as easy as possible. It is anticipated that a client's initial contact with Mountain View will be via the advertised phone number to inquire about leasing and pricing. The site will be set up in such a way that a client can be emailed a lease agreement that can be electronically signed and sent back.The client will also have the ability to pay their lease fees at a payment kiosk that will be part of the ingress keypad.At time of payment the client will be issued an access code they can use to enter the facility.These technological features will provide the option to manage Mountain View from a remote location and not require staff to be on-site 24x7 but allow new clients to enter into lease agreements at times convenient to their schedules.The shareholders/owners live 1/2 mile from the facility and will be available to report to the facility within minutes of being notified of a problem. Mountain View will have 1 month minimum lease agreements and a 7 day notice will be required to vacate. Month to month lease payments will be due on the first of the month and prorated for leases signed mid- month.A five day grace period will be allowed to pay. On the sixth day the client will be considered delinquent and their access code to the facility will be suspended until a$25 late fee and payment is made current.At this time access will be granted back to the client. In the event that property is abandoned at the facility,state laws will be followed for the recovery of lost lease payments,late fees,and for the disposal of the property. Location Mountain View selected and purchased a premier piece of property in October 2013.The property is in unincorporated Weld County and is surrounded on two sides by the City of Brighton.The property is twenty five acres that will allow for future expansion.All access roads leading to the property are paved and provide easy access to the I-76 and highway 85 corridors.Weld County has informed Mountain View that on/off ramps from I-76 onto Weld County Road 4 are in the five year comprehensive plan,this will make access from the east even more attractive.The City of Lochbuie is located 1 mile to the East and the planned and plotted Silver Peaks subdivision will bring another 2000 potential clients to within 1 mile of Mountain Views facility. Brighton East Farms is 1 mile to the south of Mountain View RV and Boat Storage and is an established neighborhood that has the potential to bring hundreds of clients to Mountain View. Mountain View will provide a secure location with the installation of chain link fence and barb wire around the entire perimeter of the property.The entrance to the facility will be offset 100 plus feet from the road to allow easy access of large vehicles entering and exiting the property.This offset access will also provide ample customer and employee parking. Coded keypad ingress and egress access will allow Mountain View to know who and when clients are entering and exiting the facility.Twenty outdoor cameras with remote access will be Page 23 of 42 utilized to monitor the facility on a 24x7 basis.Twenty outdoor lights will be utilized to keep the property well lit and deter crime. Mountain View's property is currently zoned Ag 1.Mountain View applied to Weld County for a Use By Special Review(USR)in November 2013.All applicable engineering was completed in May 2014. A public planning commission meeting was held at the Weld County Administration building in July 2014 and the board approved the application to go to the county commissioners.Mountain View took the application for use by special review to the County Commissioners in August of 2015 and received final approval.The USR was recorded with county in November 2014. The property comes with 9.5 acre feet of water rights that will allow Mountain View to drill a well into the Laramie Foxhill aquifer.The well will be drilled in the second phase of construction.This will provide ample water supply to support restroom facilities,dump station facilities,and landscaping needs. Utility power is at the entrance of the property and an application to United Power has been submitted to install a transformer and utility power pedestal in March 2015. The property has gently sloping hills that can easily be leveled from the east to west to provide for level parking and building sites. Seventy Five percent of the grading in the first phase has been completed. Construction of a 2500 ft2 office and shop started in November 2014 and is expected to be completed in March 2015. The utility power pedestal will be located within 100 feet of the office/shop.The office will be open to the public,provide restroom facilities,a record room,and a room to house the electronics to control the site.The shop area of the building will be utilized to store the equipment required for the building and maintenance of the property. Page 24 of 42 SITE PLAN .T___......._________.___-4---•-.--7 till I - I � GLKRAL MOTO I I I- I a P001 D.RM SI*PRUDES FOR C 1 .DWpFJ5 , t. 1 w Q STORAGE MID n 1URe ownce AR A IOR..oi f H NM RV•.DOAT STORAGC LOCATED AT I SCSI wan I I 1 A. I I' c COLADW ROAD 4,MIGMTOM CO y 1 wea.4(OW et61201orsito..«and aAlwwno ' Yigs 1 ��fg3gg�yggqqa DIT ;liii11sR• Iii „ gi4 Mountain View F-W- Rv:Soot store 1 FLOOR PLAN 0aclild 1====1 NN.. elf • 3.7 F b \ RI:, / Z t l a O . J O -= w 'i'itgi Ig illl ... 2 lir Page 25 of 42 ELEVATIONS -tali( 6:Plq/en G, n A�E A.17 PITCH _ .- I co g WEST ELEVATION AORTAELEvATION 6,,2 PITCH Z 6a:Anon Q R h4:,ZP!T,H J I` ,, `� ., I %:.;''S1 W _ _ , , ill! } � . `.• c_. r--- _ EAST ELEVATION NORTH ELEVATION 1 III I 10.5 iNnImks Mountain View will have very low occupational expenses after opening its door for business.Most of the expenses will be incurred in the infant stage of the business while constructing the facility. CKG Incorporated owns the property and will be doing business as Mountain View RV and Boat Storage.This will eliminate any type of mortgage or facility rental payment.The office is strategically being kept small,640 ft-,to keep the utility costs down. Utilities are expected to be around$100 a month.Liability insurance is expected to be around$5000 a year for Phase 1 and creep toward$7500 until the completion of Phase 3.The initial development costs are going to be the largest occupational expense Mountain View will have.Development costs for the completion of Phase 1 are expected to approach$300,000.00. The Table below will show the main development costs. Item Cost Land Purchase $137,500 Access $1000 Drainage Report $6000 Re-Zoning $2500 Grading $5000 Office/Shop $20,000 Fencing $25,000 All Weather Surface $20,000 Gates/Controllers $20,000 Page 26 of 42 Landscaping $5000 Misc(25%) $60,000 Total $302,000 Mountain View will provide clients with 24x7 access to the facility. Mountain View staff will be available during normal business hours of Monday thru Friday from 9am to 5pm or by appointment. Legal Environment • Permits o State of Colorado issued a well drilling permit in March 2014. o Grading and Storm Water discharge permits were received from Weld County and the State of Colorado respectfully in October 2014. o Mountain View's office and Equipment Storage building permit was received in December 2014 • Health,workplace,or environmental regulations o Mountain View will not allow the storage of hazardous materials on the property per the Weld County Board of County Commissioners and Planning Services. o Per the Weld County Board of County Commissioners,Mountain View has to provide Weld County Inspectors with timely access to the property for periodic inspections that are required to maintain USR14-0018. o Mountain View will be required to obtain an engineered septic system design from a Colorado registered engineer for the site dump station and restroom facilities.This design will be completed prior to Phase 2 construction that is scheduled to begin in March 2017. The design will be completed by Dunker Engineering. • Zoning or building code requirements? o Mountain View had Dunker Engineering and Consulting complete a topographical survey and a engineered Site Drainage Plan in May 2014. o Mountain View received the proper zoning from Weld County Board of Commissioners thru the approval of USR14-0018 in August 2014 and recorded the approved drawings in November 2014. • Insurance coverage o Every client leasing lots/units from Mountain View will be required to carry personal liability insurance coverage for the vehicle entering the facility.This insurance will be required to cover any damage that the client does to Mountain View's property or other clients property. Page 27 of 42 o Mountain View will carry liability and hazard insurance on the structures and property owned by Mountain View.This will run between$5000 and$7000 per calendar year depending on the number of structures.At no time will Mountain View or its employees take possession of or operate a client's vehicle.This is a SELF storage facility and the clients are responsible for safely delivering and removing their personal property from the facility. • Trademarks,copyrights,or patents (pending,existing,or purchased) o Mountain View has designed its own logo and will not be trademarking or copyrighting the name. Mountain View will attempt to secure and purchase the internet domain name of "mountainviewrvandboatstorage.com" Personnel • Number of employees? o Mountain View's day to day operations will be performed and managed jointly by Chad and Kelley Goens (Only two shareholders of the corporation) for the first six to twelve months of operation. Estimated to be from June 2015 until June of 2016.At this time the shareholders will seek to hire an administrative assistant professional to staff the office during normal business hours and help with bookkeeping. • Type of labor? o Mountain View will seek personnel with experience in customer service and administrative assistance to staff the office,answer phones,execute lease agreements,and process payments. This person will be trained by management on how • Pay structure? o Mountain View has completed research on similar positions in the industry and has determined that typical Office Assistants are compensated on an hourly basis at an average rate of$12.89 an hour and Property Managers can earn a salary as high as$35,000 per year. Mountain View will seek to hire an Office Assistant for$12.00 an hour.All Property Management tasks will be performed by the Owner/Operators of the company and will draw a split salary of 20%of gross rental income with a max of$17,500 each per calendar year. This will control the labor costs with the growth of the company. Credit Policies • Do you plan to sell on credit? o No lots, Mini Storage Units,Enclosed Storage Units,or Covered Storage lots will be leased on credit.All leased spaces will be paid in advance with a one month minimum.Lease payments will be required on the first of the month and late on the seventh. Incentives and discounts will be offered to entice clients to pay bi-annually or annually.These policies coincide with industry standards. Page 28 of 42 • How will you check the creditworthiness of new applicants? o Since payments are received in advance,no credit checks will be performed. In the event that a customer becomes delinquent,access to the facility will be revoked,property will be held as collateral until lease obligations are resolved,and at this point access will be granted again. • Will you offer prompt payment discounts? o Clients will be offered one month's free rent with the paid purchase of six months.(Seventh month free) Clients that choose to pay twelve months in advance will receive two month's rent free of charge.(Thirteenth and Fourteen month will be no charge) Managing Your Accounts Receivable • When do you make a phone call or send notification? o Payments will be due on the first of the month. If payment is not received by the fifth day of the month a phone call will be made to the client and letter stating that their facility access will be suspended on the seventh day of the month,a late fee will be accessed,and that the account will need to be made current before access will be reinstated. • When do you get your attorney to threaten? o Once the account is more than thirty days delinquent Mountain View will begin following state defined processes for dealing with abandoned property. Page 29 of 42 VII. Management and Organization Chad and Kelley Goens,also known as the owners,will act as owner/operators of Mountain View. Both will be instrumental in the construction and development of the facility with over forty combined years of construction experience.The owners have been responsible for the drafting of drawings, successfully working with the county on rezoning the property,grading the site,and construction of the office/shop. Kelley has over 15 years of corporate management skills and will be managing the books and the internal workings of the corporation.This will include managing financials,payroll,bookkeeping,marketing,preparing tax documents,and general administrative tasks.Chad will be responsible for the execution of the day to day activities,talking with clients,signing and executing leases,issuing/rescinding access,working security issues, and maintaining the facility. Professional and Advisory Support • S-Corporation Shareholders o Chad Goens (50%) 15281 Wagon Wheel Dr Brighton,CO 80603 o Kelley Goens (50%) 15281 Wagon Wheel Dr Brighton,CO 80603 • Attorney—N/A at this time • Accountant o Crystal Clark I Clark&Associates Tax and Accounting Services,Inc. 191 Telluride St Brighton,CO 80601 • Insurance agent o MiniCo Insurance Agency,LLC 2531 W. Dunlap Avenue Phoenix,AZ 85021 • Banker—N/A at this time • Consultant or consultants o Jenn Negley I Business Consultant I East Colorado Small Business Development Center 807 17th St,Suite D Page 30 of 42 Greeley,CO 80631 o Diana Aungst I Planner III Weld County Department of Planning Services 1555 N. 17th Ave Greeley,Colorado 80631 o Tom Parko I Director I Weld County Department of Planning Services 1555 N. 17Th Ave Greeley,Colorado 80631 • Mentors and key advisors o Eric Dunker I Colorado Professional Engineer I Dunker Engineering&Consulting,Inc. 7132 Mountain Brush Circle Littleton,CO 80130 o Cecil Crow I Colorado Professional Engineer I Alpha Engineering 721 4th St Ft.Lupton,CO 80621 Page 31 of 42 VIII.Startup Expenses and Capitalization Phase 1 of Mountain View will be funded solely by the two shareholders of CKG Incorporated,Chad and Kelley Goens,and all of the Phase 1 construction will be completed by the two shareholders.The land was purchased for$137,500.00 by capital from the two shareholders.All engineering,rezoning,grading,office construction and site preparation to date have been funded by an additional$150,000.00 of capital equally invested by the shareholders.There is roughly another$50,000.00 in capital investments that the shareholders expect to invest to complete Phase 1 of Mountain View RV and Boat Storage. At this point,Mountain View will be able to open its doors for business with little overhead.The shareholders will manage and run the day to day operations of the business to keep overhead expenses down. Overhead expenses will be limited daring Phase 1 to a small payroll,utilities,insurance premiums,monthly security subscription,a heavily scrutinized advertising budget,and real estate taxes.All of these expenses can be carried by injections of capital into the business by the shareholders as needed. The startup expenses for Phase 1 have been based primarily on actual expenses incurred to date for the build out of Phase 1. Upon completion of Phase 1,only 35 leases will be required to cover all overhead costs and this includes a 1/2 FTE employee. With the shareholders managing the day to day operations,that Yz FIE money will be going right back into the business and only require the lease of 15 leases to cover all the overhead of Mountain View.This equates to 8%of the total available leases in Phase 1. With this model and income stream Mountain View will be able to grow by seeking outside capital to support and construct the final two Phases. Both shareholders have contributed equal amounts and each will have equal ownership.Both partners will be responsible for equal roles in the management of Mountain View and will have equal responsibility for any debts incurred by Mountain View in the future. Page 32 of 42 IX. Financial Plan Sales Forecast Year 1 521•9 ro..ca9Yaar l 7.055.67 aa,um Mumrn,a�k.6. Moans.k..5. �LEI BI immomainerrerwrrit --- IMA ' -- n l.s..,u,.. Jw.. )u1. Auras. 5.59c4.495.59c4.49,-. nme. . .. w<�ro i),[41*mb... e, .. anu4.r 7.6..mn y59.554 Mot Annual Tomb. 0..akm.y ra5..T1 T.w On*Spume 109 sew 40 30 40 50. 60 76 40 90 I05 II0 I15 500 10000 Tm1461.. 00 1400 I 1 400 _)Om 3 600 4 300 4 403 0 400 6000 6 100 6 6q0- 0 900 5 12100 100 0% 1074; Tam 1COGS • 1 - 5 0'X 0Th Taal rone, 1000 1400 1 L400 3 000 3 000 4100 4 a00 5 400 6000 6 300 6 600 6900 1 32100 100 0% 10000 Tml Salo, - • . - I 00% _ea Tao CMS - - • 3 0034 00a I Cm.tl - iir:mTm 5701 - I . I - S •• iliMill10.9% % Tm110%6 - rom % lea rncloawsinet.rr -I .1 .1 .I .I .I Tam 15 =irll �� Tam16Taal d - 5 053 5Th ro', - s o0% 40a 5 • 9s a0a !nuke, 1 T=1 5614‘ - . Tool MIS - - • 00% a0% . . - 5 6. •pa . - 5 In 700 Product ron�. 5 O.Oa 4.% T IIIke 5.i3 10 ID 40 00 A _ 50 ib 00 100 05 110 1 5 6 Taal5ala 1 1 100 5 16000410 1 2400 5 1000 5 34m 0 40 5 I00 5 5400 5 6000 1 61300 5 6500 5 5m 5 51100 Taal f4.5d Goods 5.14 f -,1 - 5 - f - f 1 5 s 5 5 5 5 5 - Tml f 1 70 5 1500 5 2400 5 Sam 5 600 I 000 5 4100 5 5400 5 6000 1 6300 5 6400 5 65m 5 5 Sales Forecast Years 1-3 low . 7,...T. IIIIMIIIIMEMIMMII=MIIIIMMINIMINIMMINIIME=1IIMIMMII=MIII 11•11 ,•= M1. . 55555555!,• '�IM..� l'!I =�.:I.,� ;�1„�., ,�„ 1 1 emr. = 5555555555....„...I�,�1T"4T"lI",m,„.1IR•1I5R-1R.^T 313'r11...m1aPAl . .,==,w,fIR1RR^Ia1.�SITR^151T1I,f.!1RIF1 �"I;!`�?�Trai"16T1r1T^1RT5R'14T�15fT^1 1 ..�Ia��...ST�l1!'1 �555555�nm'13�IR'1rR1!'11111!IRIRIr5T'1TrIIRT51Ff,�1T•'1rmn1ri1,•1rtnr5•'3r1m == Page 33 of 42 Opening Day Balance Sheet Mountain View RV and Boat Storage Assets Current Assets Cash in Bank $25,000 Inventory N/A Prepaid Expenses N/A Other N/A Total Current Assets $10,000 Fixed Assets 1998 Komatsu $25,000 1997 Freightliner $6,000 1987 Caterpillar $60,000 1957 Caterpillar $4,500 1999 Lufkin $15,000 1985 Daco $6,000 1985 Great Dane $1,000 Machinery& Equipment Sheep Foot $6,500 Furniture& Fixtures - Leasehold Improvements - Land $137,500 Office/Shop $100,000 Real Estate/Buildings Improvements $200,000 Other - Total Fixed Assets $ - $561,500 Other Assets Specify $ - Specify - Total Other Assets $ - Total Assets $ - Liabilities & Net Worth Current Liabilities Accounts Payable N/A _ Taxes Payable(due within 12 months) $4,000 Insurance Payable(due within 12 months) $5,000 Notes Payable (due within 12 months) N/A Page 34 of 42 Current Portion Long-term Debt N/A Other current liabilities(specify) N/A Total Current Liabilities $9,000 Long-term Liabilities Bank Loans Payable(greater than 12 months) $ - Less: Short-term Portion - Notes Payable to Stockholders - Other long-term debt(specify) - _ _ Total Long-term Liabilities $ Total Liabilities $ - Owners'Equity (Net Worth) $ - Total Liabilities&Net Worth $ - Break-Even Analysis A break-even analysis predicts the sales volume,at$60 per leased space,required to recover total costs.The labor for one full time equivalent(FTE)is 73.5%of the fixed costs of operating Mountain View.This break- even analysis shows two scenarios. One is for 1/2 1-1.1.and the other is for 1 FTE.A '/2 Fib is projected for the first few months of operation until the client base increases. Once 35 lots have been leased, Mountain View will be operating at a profit at the 1/2 F1'h staffing level.This is equivalent to 18.5%of the Phase 1 lots. When the client base has reached 56 leased lots,or 29.5%of the Phase 1 lots,the fixed labor costs are expected to rise to the 1 FTE level.This would allow Mountain View to operate at a profit of$7980 a month or$95,760 per year at Phase 1 capacity. Expressed as a formula,break-even is: Scenario 1:Fixed Costs(Assuming 1/2 FTE) • Real Estate Taxes ($4000/year or$334/month) • General Liability Insurance($5000/year or$417/month) • Utilities($1200/year or$100/month) • Advertising($400/year or$34/month) • Labor($14,750/year or$1229/month) Page 35 of 42 Breakeven Sales(Ycarly) = 25368 (S60 x leased spaces) Breakeven Sales(Yearly) = 423 leased spaces Breakeven Sales(Monthly) = 2114 (S60 x leased spaces) Breakeven Sales(Monthly) = 35 leased spaces Scenario 2: Fixed Costs (Assuming 1 FTE) • Real Estate Taxes ($4000/year or$334/month) • General Liability Insurance($5000/year or$417/month) • Utilities ($1200/year or$100/month) • Advertising($400/year or$34/month) • Labor($29,500/year or$2459/month) Breakeven Sales(Yearly) = 40100 (S60 x leased spaces) Breakeven Sales(Yearly) = 669 leased spaces Breakeven Sales(Monthly) = 3344 (S60 x leased spaces) Breakeven Sales(Monthly) = 56 leased spaces ponamome Page 36 of 42 X. Appendices • Logo 'STD(7.... 7013 Mountain View RV&Boat Storage • Blueprints and plans Facility Site Plan A-1 _- -- USRIa09u 3 ==..- 4,7.x M mOUNTA VIEW RV a BOAT STORAGE FACRflY I may '..—.......x:x .�� I hiarrz w =ris:.s� :i.'_ w:rte ,onr _ �� 0 Zrer... ' ^gym. r1� Ct Oh WX-":F.' ohm '_'. .: ` e' t T J et air Page 37 of 42 Facility Site Plan A-2 ....,... - -- *_ .... Y-- ___.__. 1H' t msµ _._._ f .-,- :_- o-_,_- — I Nr gyp. .._._ 6 1 05':...-: v o ' CO ., is i RL A '- _ fl �- r _ ' 7°�e0Y91__ _, /�i ii/ilia r,/i//iii/�ii� +, W li ill ' - i e /// (ffi'fPOP''"['�'"P��^^' l'IiPE • .1//II..I//l Yigll/I �' �� .-- �{ ' Iy/I //I/ I////ci y �I. .F Page 38 of 42 Site Plan T 61 .iii _. ±. t l' .1.: ill ,`Lr IiCnt" I Z i ... ..... If a IiirMeLg12 J FOtl SAM 5 SFOR SICRAGT ARO,VTAIIM Ge nct AMA FOR WRAF.* ; ; W Veit RV 1 Dom'SIORAG[LOCATED AT I SGSS SKID Gown ROAD 1,PRIGATOR Co / `\\ Il yr si. I ii hIt Mountain View RV&Boat Stamp 1 Office/Shop Floor Plan ill - - '\.___ Alli ,_. .. ,. .: : . o • C12EEEE] tz. R A t rz cr O R OJ f ri a }_ K. ! _, _ _ ,.. - + ill 2 Page 39 of 42 Office/Shop Elevations 3 11 alt RICH �• �' 12 HITCH -■ o £ + • - -- 4 WE•:ELEVATION Lo ANON 112 PITCH Z O L:12 PITCH W 2 , J § J W Mg SIM ";/://I l;; 4 EAST ELEVATION NORTH ELEVATION 14 3 • Detailed lists of equipment owned o 1997 Freightliner($10,000) o 1999 Lufkin End Dump Semi Trailer ($15,000) o 1985 Maco Step Deck Semi Equipment Trailer($10,000) o Caterpillar 12 Road Grader($7,500) o Caterpillar D6H Bullldozer($60,000) o Komatsu WA250 Wheel Loader($35,000) o Bobcat 753 Skid Loader($10,000) o Dynapack 60" Diesel Sheep Foot($8,500) • List of assets available as collateral for a loan o Property located at: 15653 CR 4 Brighton,CO 80603 Page 40 of 42 • Lease Mountain View RV and Boat Storage Lease Agreement This agreement made and entered into on this day of 20_,by and between Mountain View RV and Boat Storage,hereinafter referred to as LESSOR,and hereinafter referred to as LESSEE.The parties hereto agree as follows: 'IT IE LESSOR does herby lease to LESSEE upon the terms and conditions hereinafter stated,that certain space described as# a sire,in facilities located 15653 CR 4,Brighton,Colorado,80603,for the sole purpose of RVs,Boats,goods,wares,and merchandise of the LESSEE. L TERM AND RENT: The term of this tenancy shall commence on the date first written above and shall continue on a month-to-month basis. After the first month,this tenancy shall be adjusted to the first day of the month.Minimum one(1)month tenancy required. 2. Rent is the sum of S per month payable in advance. Agreements commencing on a day other than the first day of a calendar month shall be prorated on a daily basis,based on a thirty day month.Thereafter,the rent is due and payable in advance on or before the first of each month. Rent is to be paid to owner or to owner's designated agent. In the event that rent is not paid within 5 days after the due date,or in the event of a dishonored bank check from the LESSEE to LESSOR,because actual damages for said late payments,dishonored bank checks,and lien notification fees,are extremely difficult to ascertain,LESSEE agrees to pay S as liquidated damages for said late payment,$ as liquidated damages for said dishonored bank check and S for lien notification fees,as additional rent. 3. SECURITY DEPOSIT: A security deposit of S shall be paid by LESSEE at the time of the execution of this lease agreement, which deposit will be refunded by LESSOR after the expiration of this lease if all other terms and conditions of this lease agreement have been fulfilled by LESEE,less the following amounts:(a)cost of cleaning the leased premised and hauling trash therefrom;(b)repairing any damage to the leased premises caused by LESSEE,or the agents,servants,employees, invitees or representatives of LESSEE;(c)locking,removing,storing,disposing of any property left on the leased premises by LESSEE;(el)any unpaid rent and charges. 4. TERMINATION This lease may be terminated by either party upon written notice to the other party if intent to terminate this lease at least 30 days prior to the next date rent is due. Should the LESSEE fail to give the I.l?SSOR 30 days written notice of intention to terminate the lease,LESSEE shall be responsible for an additional fee in the amount of one month's rent.If the required 30 day notice is given by either party,and LESSEE does not remove his lock or vacate the premises on or before the termination date stated on the notice,then LESSEE shall be liable to LESSOR for double the daily rental for every day thereafter that LESSEE remains in possession of the premises or keeps his lock on. LISSOR's right to such double daily rental shall be in addition to all other rights LESSOR may have under the law or other terms of this agreement for failure of LESSEE to remove his lock or relinquish possession of the premises to LESSOR upon the termination or expiration of this lease agreement. 5. DEFAULT: LESSOR has a lien on all personal property stored within the leased space for rent,labor or other charges,and for expenses reasonably incurred in its sale. The property stored in the leased space may be sold to satisfy the lien if LESSEE is in default. Any proceeds from the sale of the property which remain after satisfaction of the lien will be distributed appropriately per Colorado law if unclaimed by LESSEE within one(1)year after sale of the property. Further in the event of any default by I.IiSSEE,LESSOR may resume possession of the premises and may re-let the same. If LESSEE.is in default for a period of more than forty-five(45)days,the LESSOR may enforce the lien by selling the property stored in the leased space for cash. Sales of the property stored on the premises may be by public or private proceedings and may also be as a unit or in parcels,or by way of one or more contracts and at any time or place,and on any terms as long as the sale is commercially reasonable.The I.ESSOR may otherwise dispose of any property which has no commercial value. The proceeds of such sale shall then be applied to satisfy the lien,with any surplus disbursed on Page 41 of 42 demand to the LESSEE or any other recorded lien holders for a period of one year after receipt of the proceeds of the sale and satisfaction of the lien. Thereafter,the proceeds remaining after satisfaction of the lien shall be considered abandoned property to be reported and paid out according to Colorado State Law. 6. RELEASE OF OWNER'S LIABILITY: As a further consideration of the use and occupancy of the space and premises,LESSEE agrees that LESSOR,his agents, employees,and assigns shall not be liable to LESSEE,his agents,guests,licenses or invitees for any loss or damage,injury or death caused to them or to their property,as the result of the use and occupancy of the space and premises. It is further agreed that any stored property is placed in this space at LESSEE's sole risk,and LESSOR and LESSOR's agents, employees and assigns shall have no responsibility or liability for any loss or damage to said property from any cause whatsoever,including the active or passive acts,omissions,or negligence of LESSOR or LESSOR's agents,employees or assigns. LESSEE;acknowledges that LESSOR does not warrant or represent that stored property will be safely kept,nor that it will be secure against theft,nor that the premises and space are secure against hazards caused by rodents,insects, water,fire or the elements of weather. It is agreed by LESSEE that this release of LESSOR's liability is a bargained for condition of the rent set forth here,and that were Owner not released from liability as set forth here,a much higher rent would have to be agreed upon. By placing his initials here ,LESSEE acknowledges he has read and understands paragraph 6. 7. INSURANCE: LESSOR does not provide insurance covering LESSEE's stored property. LESSEE should maintain at his expense a policy of fire and extended coverage insurance with theft,vandalism and malicious mischief endorsement for the full replacement value of this stored property. This insurance is for the benefit of both LESSEE and LESSOR. LESSEE expressly agrees that the carrier of such insurance shall not be subrogated to any claim of LESSEE against LESSOR,or L.ESSOR's agent or employees. LESSEE agrees to indemnify and hold harmless LESSOR from any expense,costs,or damage,incurred by reason of any claim or action based on whole or in part upon such subrogation,including all attorney's fees incurred by LESSOR in connection with such claim or action. By placing his initials here LESSEE acknowledges he has read and understands paragraph 7. 8. USE OF PREMISES: LESSEE.shall not use the prmises for any purposes except the storage of merchandise or other personal property belonging to LESSl l:. LESSEE shall not assign this lease or under-let the premises or any part. The LESSEE shall use the premises for storage only. LESSEE shall not occupy or permit or suffer the premises to be occupied for the storage of any merchandise or other property deemed extra hazardous. The term extra hazardous shall be deemed to include but not limited to merchandise or personal property which is flammable,combustible,explosive or that which would be dangerous to the premises or any surrounding property. LESSEE further agrees to haul off LESSEE's trash. LESSEE shall not engage in selling any items,retail or wholesale,on the aforementioned premises. 9. ASSIGNMENT: LESSEE shall not sublet or assign the storage space nor store properly owned by others without the written consent of LESSOR. 10. NOTICES:CHANGE IN TERMS;CHANGE OF ADDRESS: All notices required or permitted by law,or by this agreement,may be sent to LESSEE at the address given by LESSEE below. In the event that any of this addresses given below change,such change shall not be binding upon LESSOR unless LESSEE has given LESSOR written notification of the change,and LESSOR has acknowledged its receipt in writing. Any of the terms of this agreement may be changed by LESSOR by the giving of written notice to LESSEE seven days prior to the expiration of any month of this tenancy. 11. CARE OF PREMISES: LESSEE shall take good care of the demised premises and its fixtures and shall suffer no waste and shall not permit nor suffer the demised premises to be used,nor shall LESSEE use the same,in any manner which would constitute either a public or private nuisance. LESSEE shall,at LESSEE's own expense and cost,keep the demised premises in good repair during the term of this lease,and at the expiration or termination of the term of this lease,shall deliver up the demised Page 42 of 42 premises to the LESSOR in good order and condition,ordinary wear and tear expected. LESSEE agrees to make no alterations or improvements to the leased premises,without written consent of LESSOR. 12. VACATING THE PREMISES: I.ESSI;E agrees that upon vacating the above mentioned unit,it will be left clean and in good repair,reasonable wear and tear expected.If I.ESSEE leaves the unit in such condition that LESSOR must clean or repair damage done by LESSEE, LESSEE shall be charged a fee for this service. If there are repairs needed at the time the unit is first occupied by LESSEE,LESSEE should call this to the attention of LESSOR at that time so that this condition can be noted or repaired. 13. ATTORNEYS FEES: LESSEE shall pay and indemnify LESSOR against all legal costs and charges,including attorney's fees incurred,in obtaining possession of the leased premises after a default of the LESSEE or after LESSEE's default in surrendering possession upon the expiration or earlier term of the term of this lease or enforcing any covenant of the LESSEE in this lease. 14. SUCCESSION: All provisions of this lease shall apply to,bind and be obligatory upon the heirs,executors,administrators,representatives, successors,and assigns or the parties hereto. LESSEE.acknowledges receipt of a copy of this agreement by signature below. Date I.EESSEE: (Name/Address) Mountain View RV and Boat Storage,15653 CR 4,Brighton,CO Rent Payable to:Mountain View RV and Boat Storage,15653 CR 4,Brighton,CO 80603 BY: 1. P month's rent S Manager/Agent 2.Pre-paid rent S 3.Refundable Deposit $ Authorized Tenant(s)/Secondary Contact 4.The next month's rent S is due on RESOLUTION RE: APPROVE SITE SPECIFIC DEVELOPMENT PLAN AND USE BY SPECIAL REVIEW PERMIT, USR14-0018, FOR ANY USE PERMITTED AS A USE BY RIGHT, ACCESSORY USE, OR USE BY SPECIAL REVIEW IN THE COMMERCIAL OR INDUSTRIAL ZONE DISTRICTS (AN OFFICE BUILDING, A DUMP STATION, SEVEN BUILDINGS FOR MINI STORAGE, AS WELL AS INDOOR RV AND BOAT STORAGE, APPROXIMATELY 42 COVERED AND 404 OUTDOOR SPACES FOR THE STORAGE OF RVS, BOATS, WITH AND WITHOUT TRAILERS, ATVS, VANS, STAND-ALONE CAMPERS, MOTOR HOMES, 5TH WHEEL TRAILERS, SMALL, MEDIUM, AND LARGE PICKUP TRUCKS, WITH OR WITHOUT ATTACHED CAMPERS, AND OTHER SIMILAR ITEMS INCLUDING INDUSTRIAL AND/OR COMMERCIAL VEHICLES, HEAVY EQUIPMENT, AND MATERIALS) PROVIDED THAT THE PROPERTY IS NOT A LOT IN AN APPROVED OR RECORDED SUBDIVISION PLAT OR PART OF A MAP OR PLAN FILED PRIOR TO ADOPTION OF ANY REGULATIONS CONTROLLING SUBDIVISIONS IN THE A (AGRICULTURAL) ZONE DISTRICT-CKG, INC., CIO CHAD GOENS 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 of County Commissioners held a public hearing on the 13th day of August, 2014, at the hour of 10:00 a.m., in the Chambers of the Board, for the purpose of hearing the application of CKG, inc., 15653 CR 4, Brighton, CO 80603, do Chad Goens, 15281 Wagon Wheel Drive, Brighton, CO 80603, for a Site Specific Development Plan and Use by Special Review Permit, USR14-0018, for any use permitted as a Use by Right, Accessory Use, or Use by Special Review in the Commercial or Industrial Zone Districts (an office building, a dump station, seven buildings for mini storage, as well as indoor RV and boat storage, approximately 42 covered and 404 outdoor spaces for the storage of RVs, boats, with and without trailers, ATVs, vans, stand-alone campers, motor homes, 5th wheel trailers, small, medium, and large pickup trucks, with or without attached campers, and other similar items including industrial and/or commercial vehicles, heavy equipment, and materials) provided that the property is not a lot in an approved or recorded subdivision plat or part of a map or plan filed prior to adoption of any regulations controlling subdivisions in the A (Agricultural) Zone District, on the following described real estate, being more particularly described as follows: Being part of the S1/2 SE1/4, NW1/4 SE1/4 and the E1/2 SW1/4, SE1/4 of Section 27, Township 1 North, Range 66 West of the 6th P.M., Weld County, Colorado WHEREAS, at said hearing, the applicant was present, and WHEREAS, Section 23-2-230 of the Weld County Code provides standards for review of said Use by Special Review Permit, and CC twe,y) i_ bA`Ru.) 9- 2-Z01A4 2014-2300 PL2280 SPECIAL REVIEW PERMIT (USR14-0018) - CKG, INC. 0/O CHAD GOENS PAGE 2 WHEREAS, the Board of County Commissioners heard all of the testimony and statements of those present, studied the request of the applicant and the recommendation of the Weld County Planning Commission and all of the exhibits and evidence presented in this matter and, having been fully informed, finds that this request shall be approved for the following reasons: 1 The submitted materials are in compliance with the application requirements of Section 23-2-260 of the Weld County Code. 2. It is the opinion of the Board of County Commissioners that the applicant has shown compliance with Section 23-2-230.6 of the Weld County Code as follows: A. Section 23-2-230.B.1 -- The proposed use is consistent with Chapter 22 and any other applicable code provisions or ordinance in effect. 1) Section 22-2-20.G (A.Goal 7) states: "County land use regulations should protect the individual property owner's right to request a land use change." 2) Section 22-2-20.G.2 (A.Policy 7.2) states: "Conversion of agricultural land to nonurban residential, commercial, and industrial uses should be accommodated when the subject site is in an area that can support such development, and should attempt to be compatible with the region." The applicant is requesting a Use by Special Review (USR) permit to construct approximately 42 covered storage spaces and 400 outdoor storage spaces for RVs, boats, etc. The application materials state that seven (7) buildings will be constructed for indoor mini-storage and indoor RV and boat storage. An office building and an RV dump station are also proposed to be constructed on the site. The applicant has proposed screening, lighting, landscaping, and parking for the site. The submitted site plan depicts the landscaping plan along County Road (CR) 4, the Lighting Plan and some parking spaces adjacent to the office. The screening consists of a masonry fence abutting CR 4 and a chain link fence with slats surrounding the north, east and west sections of the site. The application indicates one (1) part-time employee will be located on-site when Phase 2 is initiated and the maximum number of people on-site would be ten (10). The hours of operation are proposed to be twenty-four (24) hours per day, seven (7) days per week. The proposed Landscaping/Screening Plan and Lighting Plan, along with the Conditions of Approval and Development Standards, will assist in mitigating the impacts of the facility on the adjacent properties. B. Section 23-2-230.B.2 -- The proposed use is consistent with the intent of the A (Agricultural) Zone District Section 23-3-40.S which allows a Site Specific Development Plan and Use by Special Review Permit for any Use Permitted as a Use By Right, Accessory Use, or Use By Special 2014-2300 PL2280 SPECIAL REVIEW PERMIT (USR14-0018) - CKG, INC. CIO CHAD GOENS PAGE 3 Review in the Commercial or Industrial Zone Districts (an office building, a dump station, seven buildings for mini-storage, as well as indoor RV and boat storage. approximately 42 covered and 404 outdoor spaces for the storage of RVs, boats with and without trailers, ATVs, vans, stand- alone campers, motor homes, 5th wheel trailers, small, medium, and large pick-up trucks with or without attached campers, and other similar items including industrial and/or commercial vehicles, heavy equipment and materials) provided that the property is not a lot in an approved or recorded subdivision plat or part of a map or plan filed prior to adoption of any regulations controlling subdivisions in the A (Agricultural) Zone District. C. Section 23-2-230.B.3 -- The uses which will be permitted will be compatible with the existing surrounding land uses. CR 4 borders the site on the south and the adjacent lands to the north, east and west are pastures, rural residences and a substation. The closest residence is approximately 175 feet west of the west property line. There are four (4) USRs located within one mile of this parcel. USR-349 is for a non-operating hog farm and USR-12 is for a single family dwelling, and both are located north of the site. USR-1711 is for a major facility of a public utility and USR-862 is for an accessory building, and both are located east of the site. The Weld County Department of Planning Services has not received any correspondence from the surrounding property owners. The proposed Landscaping/Screening Plan and Lighting Plan, along with the Conditions of Approval and Development Standards will assist in mitigating the impacts of the facility on the adjacent properties. D. Section 23-2-230.B.4 -- The uses which will be permitted will be compatible with future development of the surrounding area, as permitted by the existing zoning, and with the future development as projected by Chapter 22 of the Weld County Code and any other applicable code provisions or ordinances in effect, or the adopted Master Plans of affected municipalities. The site is located within the three (3) mile referral area of the Cities of Brighton and Fort Lupton, and the Town of Lochbuie. The City of Fort Lupton's referral, dated May 28, 2014, indicated no concerns. The City of Brighton and the Town of Lochbuie did not respond with any referral comments. E. Section 23-2-230.6.5 -- The application complies with Chapter 23, Article V, of the Weld County Code. Building Permits issued on the lot will be required to adhere to the fee structure of the County-Wide Road Impact Fee, County Facility Fee and Drainage Impact Fee Programs. F. Section 23-2-230.B.6 -- The applicant has demonstrated a diligent effort to conserve prime agricultural land in the locational decision for the proposed use. The existing and proposed facility is located on soils designated primarily as "Other," per the 1979 Soil Conservation Service 2014-2300 PL2280 SPECIAL REVIEW PERMIT (USR14-0018) - CKG, INC. O/O CHAD GOENS PAGE 4 Important Farmlands of Weld County Map. The proposed USR will not take any Prime (Irrigated) Farmland out of production. G. Section 23-2-230.B.7 -- The Design Standards (Section 23-2-240, Weld County Code), Operation Standards (Section 23-2-250, Weld County Code), Conditions of Approval and Development Standards can ensure that there are adequate provisions for the protection of the health, safety, and welfare of the inhabitants of the neighborhood and County. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the application of CKG, Inc., c/o Chad Goens, for a Site Specific Development Plan and Use by Special Review Permit, USR14-0018, for any use permitted as a Use by Right, Accessory Use, or Use by Special Review in the Commercial or Industrial Zone Districts (an office building, a dump station, seven buildings for mini storage, as well as indoor RV and boat storage, approximately 42 covered and 404 outdoor spaces for the storage of RVs, boats, with and without trailers, ATVs, vans, stand-alone campers, motor homes, 5th wheel trailers, small, medium, and large pickup trucks, with or without attached campers, and other similar items including industrial and/or commercial vehicles, heavy equipment, and materials) provided that the property is not a lot in an approved or recorded subdivision plat or part of a map or plan filed prior to adoption of any regulations controlling subdivisions in the A (Agricultural) Zone District, on the parcel of land described above be, and hereby is, granted subject to the following conditions: 1. Prior to recording the plat: A The applicant shall attempt to address the requirements of Anadarko Petroleum Corporation, as stated in the letter dated July 10, 2014. Evidence of such shall be submitted, in writing, to the Weld County Department of Planning Services. B An accepted Final Drainage Report, stamped and signed by a professional engineer registered in the State of Colorado, is required. C CR 4 has been annexed by the City of Brighton. Access and right-of-way requirements will be determined by the City. D The plat shall be amended to delineate the following: 1) All sheets of the plat shall be labeled USR14-0018. 2) The attached Development Standards. 3) The plat shall be prepared per Section 23-2-260.D of the Weld County Code. 4) The applicant shall delineate the trash collection areas. Section 23-3-350.H of the Weld County Code addresses the issue of trash collection areas. Areas used for storage or trash collection 2014-2300 PL2280 SPECIAL REVIEW PERMIT (USR14-0018) -CKG, INC., C/O CHAD GOENS PAGE 5 shall be screened from adjacent properties and public rights-of-way. These areas shall be designed and used in a manner that will prevent trash from being scattered by wind or animals, 5) The approved Signage Plan. 6) The approved Landscaping/Screening Plan. 7) The approved Parking Plan. 8) The approved Lighting Plan. 9) CR 4 is owned and maintained by the City of Brighton and is designated on the Weld County Road Classification Plan as a collector roadway, which requires additional right-of-way at full build-out. The applicant must delineate on the plat the future right-of-way, as required by the City of Brighton. The applicant shall verify the existing 60 feet of right-of-way, and the documents creating the right-of-way, and this information shall be noted on the plat. All setbacks shall be measured from the edge of future right-of-way. If the existing right-of-way cannot be verified, it shall be dedicated. 10) The applicant shall label the approved City of Brighton accesses on the plat with Access Permit number, if applicable. 11) The applicant shall indicate specifically on the plat the type of right-of-way/easement and indicate whether it is dedicated, private, or deeded. 2. Upon completion of Condition of Approval #1 above, the applicant shall submit an electronic version (.pctf), or three (3) paper copies, of the plat to the Weld County Department of Planning Services for preliminary approval. The plat shall be prepared in accordance with the requirements of Section 23-2-260.D of the Weld County Code. Upon approval of the plat, the applicant shall submit a Mylar plat, along with all other documentation required as Conditions of Approval. The Mylar plat and additional requirements shall be submitted within one hundred twenty (120) days from the date of the Board of County Commissioners Resolution. The Mylar plat shall be recorded in the office of the Weld County Clerk and Recorder by the Department of Planning Services. The applicant shall be responsible for paying the recording fee. 3 In accordance with Weld County Code Ordinance #2012-3, approved April 30, 2012, should the plat not be recorded within the required one hundred twenty (120) days from the date of the Board of County Commissioners Resolution, a $50.00 recording continuance charge shall be added for each additional three (3) month period. 2014-2300 PL2280 SPECIAL REVIEW PERMIT (USR14-0018) - CKG, INC., C/O CHAD GOENS PAGE 6 4. The Department of Planning Services respectfully requests a digital copy of this Use by Special Review, as appropriate. Acceptable CAD formats are .dwg, .dxf, and .dgn (Microstation); acceptable GIS formats are ArcView shapefiles or ArcGIS Personal GeoDataBase (MDB). The preferred format for Images is .tif (Group 4). (Group 6 is not acceptable). This digital file may be sent to maps@co.weld.co.us. 5. Prior to Construction: A. If more than one (1) acre is to be disturbed, a Weld County Grading Permit will be required prior to the start of construction. 6 The Use by Special Review activity shall not occur, nor shall any building or electrical permits be issued on the property, until the Use by Special Review plat is ready to be recorded in the office of the Weld County Clerk and Recorder or the applicant has been approved for an early release agreement. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 13th day of August, A.D., 2014. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: dadf.,,, r , Douglas Rademacher, Chair Weld County Clerk to the Board ll Barbara Kirkmeyer, PJo-Tem I De y Clerk t• the Bo. t Ito 1; an P. 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