10/19/2008

"The Dream"
Financial Information

ACQUISITION AND CONSTRUCTION COSTS

The estimated project cost is $18 to $25 million, broken down as follows:

Description	Approximate Cost
Land Acquisition	$8,000,000
Construction *	$6,500,000 - $13,500,000
Furnishings	$1,500,000
Operating Expenses - First Two Years	$2,000,000

*Construction Variables: Existing building vs. ground-up construction; over-lapping costs during construction; solar energy panels; parking lot and labor costs; and inflation.

There are at least two potential financing options:

• Option 1: Raise all funds though gifts and donations.
  
  
• Option 2: Assemble a group of investors to purchase the land and ground lease it to Victory for a reasonable rate of return (e.g., 5% triple net) over a sufficiently long timeframe (e.g., 50 year ground lease). The build out of the facility could be raised through gifts and donations.
  

OPERATING BUDGET

A pro-forma operating budget is set forth below. The budget includes combined operating costs for the Sanctuary and Recreation Center:

	INCOME	EXPENSE
Tithes, Offerings, Donations	$30,000
Rental Income - Sanctuary	$7,000
Rental Income - Leagues, Practices, Clinics, Tournaments	$35,000
Rental Income - Other	$3,000
Ground Lease Expense		$0
Property Taxes ($14m x 70% x 1.1%)/12		$9,000
Insurance - Liability/Permits		$1,000
Payroll - Full and Part Time		$34,600
Utilities- water, gas, elec., etc.		$7,500
Repair and Maintenance		$2,000
Security System/Security Guard		$4,000
Cleaning Service		$500
Communication- Tel./Cable		$500
Supplies		$750
Landscape/Gardening		$500
Sanitation		$300
Fire Extinguishers		$100
LONG-TERM MAINTENANCE 10-YEAR CYCLE
Parking Lot		$100
Court Resurfacing		$200
Paint		$500
Re-lamping		$200
Roof		$100
Carpet		$500
TOTAL	$77,000	$62,350

PROPOSED GENERAL TIME-LINE
(Approximately 3-4 years after final Board approval

Fundraising	6-9 months
Locate Property	6-9 months
Draft Plans	2 months
City Permits, etc.	6-9 months
Building	18 months
Total	38-47 months