1. PROPOSAL TO ACQUIRE THE TANNER PROPERTY

2. Current Overview of LYC

3. Current Overview of LYC
Membership

4. Current Overview of LYC
Financial Position

5. Current Overview of LYC
LTS Program (Numbers, Growth, Contribution, Space Required, Importance to LYC)
Largest LTS program in NS (240+ two week sessions, 119 different sailors, 10 single handed race sailors)
85 sailors in 2nd session
Usually represent 1/5 - 1/3 of boats entered in regattas
This summer we had to turn away kids from 2nd & 3rd sessions
Parents/sailors from other clubs want to attend sessions/train with our program
Largest consumers of Criss-Cross fries
Proudly represent Club at regattas in Atlantic & Central Canada, as well as the U.S.
Require space for 11 Club Echoes, 6 Club 420’s, 5 Club Optis, 3 Club Bytes, 10 Race Team Lasers, privately owned Optis and 7 Coach Boats
This summer we borrowed additional Echoes & 420’s, and still did not have enough
We require 1 larger coach boat and 3-4 additional 420’s
We may not get all these kids to stay in sailing & join LYC, but our percentages improve when we offer them an opportunity to sail and race!

6. Parking Current Overview of LYC
Parking lot expanded in ’08. Provided some relief.
Parking lot shared with LTS boats, dollies and LTS trailers.
Regular dinner nights, special occasion nights and rentals require challenging middle lines of cars.
Medium events, small regattas, some special occasions require parking on road and or private property.
Must call upon neighbours to let us use their property(s) if any events larger than Medium size.
Cannot expand LTS or provide space for private small boats and dinghies for current members.
Have started using a significant part of the lawns to accommodate existing LTS boats.

7. Facilities Current Overview of LYC
Great club house and kitchen. Banquet limit approx
Great wharf and marina. Need more dinghy docks and possible marina berths.
Paved parking lot but maxed out.
Great LTS center for current enrolment. Showers for visiting boaters.
Fair amount of fresh water except when hosting major events or during very dry summers.
Fantastic location on Prince’s Inlet but no room for expansion.
“Bursting at the seams”

8. Land Development On And Around Herman’s Island

9. History & Current Future
Land Development On And Around Herman’s Island
History & Current Future
Current: Very little shorefront property available. Obvious property is to the right of LYC (Tanner and Daniel).
Market has slowed due to broad economic downturn. How long will that last?
Developments on Herman’s Island have continued due to its desirable features.
In the near future most shorefront properties in and around Prince’s Inlet and Mahone Bay will no longer be available.

10. History & Current Future
Land Development On And Around Herman’s Island
History & Current Future

11. History & Current Future
Land Development On And Around Herman’s Island
History & Current Future

12. Land Development On And Around Herman’s Island
Areas Maps, Pictures

13. Real Estate Activity Summary
Land Development On And Around Herman’s Island
Real Estate Activity Summary

14. Real Estate Activity Summary
Land Development On And Around Herman’s Island
Real Estate Activity Summary

15. Real Estate Activity Summary
Land Development On And Around Herman’s Island
Real Estate Activity Summary

16. The Tanner Property

17. Appraisal Value & Details On Upgrades
The Tanner Property
Appraisal Value & Details On Upgrades

18. Current Asking Price The Tanner Property
Last year was for sale, asking $550,000
This year dropped to $449,000
Note that the ask price also covers such things as a small building, large/long wharf, large well, excellent driveway to the shore and wharf, property drainage system, 220 and 110 wiring to wharf, new light standard at wharf, sandy beach and a sea wall.

19. Why LYC Should Acquire The Property ?

20. Rationale Why LYC Should Acquire The Property
The Tanner property is a perfect fit for LYC
It has an very good wharf with deeper water than at the LYC wharf
The two wharves complement each other making a sheltered bay
It would allow LYC to obtain a much larger water lot to aid in managing the mooring field
It would provide a base for an additional marina should we need it
It would give us 100% ownership of the sandy beach. We now own 1/3rd
LYC has a shortage of fresh water. It would increase our water supply substantially
It would provide space to locate all of our LTS program to that side thus freeing up all of the existing space for Sr. boating programs and more parking
We could get all of our lawns back
We would have more space for car parking when hosting larger events
We would have a small building in which to store equipment, furniture and supplies that we desperately need right now
We could add a crib and crane to the Tanner wharf to launch and retrieve small to medium size boats and yachts on trailers
There would be space to store boats and trailers on our own property, winter and summer
It would make membership at LYC more desirable and would increase membership
It would increase overall LYC income
2002 World Youth Sailing Championship

21. Why LYC Should Acquire The Property
Rationale

22. What If LYC Does Not Acquire (The Risk)
Why LYC Should Acquire The Property
What If LYC Does Not Acquire (The Risk)
We could lose use of 2/3rds of the beach which would be a serious blow to LTS program.
A new owner could apply for their own water lot which would be a problem for our mooring field.
Could spell the end to growth at LYC as we know it today.
We could lose membership to other yacht clubs and or marinas who have more boating facilities especially lift in and out cranes.

23. Property Use Plan

24. Property Use Plan
Diagrams

25. Property Use Plan
Diagrams

26. Property Use Plan
Diagrams

27. Income Plan Property Use Plan Development of Business Plan
Necessity to carefully plan the acquisition financially and understand the requirements and expectations.
To fully understand the financial contributions, we developed a Capital Expenditure (CapEx) plan, and a 5 year Operations plan.
Financial evaluations and analysis are very detailed. With respect to the CapEx requirements I will outline what the revenue requirements and cash outflows are, and, for the 5 year Operational I will provide what the top line revenue and expense streams are projected to be.
Lets get started………..

28. Income Plan Property Use Plan Capital Expenditure
Our plan identifies the property purchase costs.
As well, the one time upgrade expenses.
We have considered all revenue opportunities, Government sponsorship programs, and debt financing opportunities.
We have developed what we believe is the best business / financial opportunity for the club.
We have considered what immediate upgrades are required to create a usable, contributing facility.
From this we have identified the up front financial requirement.

29. Property Use Plan
Income Plan
Capital Expenditure

30. Income Plan Property Use Plan Operational Plan - 5 Year Outlook
It is our intention to develop this property to extract financial value.
Necessary to cover the annual fixed costs and to provide the maximum contribution.
We intend to develop businesses that compliment the clubs operations, including the LTS programs, as well as developing a boat yard and off season boat storage facility.
We have considered annual fixed costs including taxes and insurance, as other operating expenses associated with the intended businesses.

31. Property Use Plan
Income Plan
5 Year Operational Plan

32. Management Property Use Plan
Even if we don’t acquire the property, LYC has now grown to the point where a General Manager is required.
With the growth over the last 2 years and all the complications that come with that and the programs and facilities, it is not possible to manage this with the current staff organization.
Your BOD will be presenting a new plan on this at the next Annual Meeting Nov 15/08.
Adding the Tanner property and the various income elements and programs that come with it will require a different management requirement.

33. Acquisition Plan

34. Capital Fund Raising Initiative
Acquisition Plan
Capital Fund Raising Initiative
There do not appear to be any public funding options for acquiring land.
There are however several funding avenues for facility additions and upgrades.
Examples are a new crib for the crane, a crane, land preparation for LTS and boat storage.
The funding to acquire the property will have to come from the membership in the form of A Capital Fund Raising Initiative.

35. Donation Expectations
Acquisition Plan
Donation Expectations
As an example of how this might generate the funding, this is a starting point:
We will be asking all members to consider making a non-binding pledge of donation
We must determine what level the membership is prepared to donate
a) 4 Individuals or a $25,000 each…………………….$100,000
b) 10 Individuals or $10,000 each …………………….$100,000
c) 20 Individuals or $5,000 each……………………..$100, OR
d) 40 Individuals or $2,500 each
e) From LYC Reserves and Members Surplus…………………….$50,000
f) LYC General Membership and Fund Raisers ………………….$75,000
TOTAL OBJECTIVE……………..$425,000

36. Income Tax Benefits For Donators
Acquisition Plan
Income Tax Benefits For Donators
We are examining several avenues to try and secure a taxable benefit for member donations.
We have made application to the Municipality of the District of Lunenburg. Under the Income Tax Act, this is legal and in the act. The Council does not wish to proceed without direct approval from CRA and then also want to establish a policy for these kinds of requests. We hope to have a positive answer in 2-3 months.
There are several other ideas that we are also exploring at the same time.
Our Capital Funding Plan will be set up to ask for PLEDGES only at this point and you will be asked what you are prepared to donate if there is a taxable benefit and if there is not a taxable benefit.

37. Negotiations Acquisition Plan
After determining the level of donation that can be raised and after getting a clear answer on the tax issue, the plan would be then to start formal negotiations.

38. Questions and Discussion

39. “To Proceed With Launch Of Capital Fund Raising Initiative”
Motion
“To Proceed With Launch Of Capital Fund Raising Initiative”