Goals for Atwood, Kent State University Tuscarawas

1
Goals for Atwood, Kent State University
Tuscarawas The Resort Experience
Company-Atwood, LLC

• Kent State University Tuscarawas to own Atwood
  Resort 500 acres and amenities with partners a
  long term strategic plan.
• The Resort Experience Company Atwood, LLC to
  implement their Intra-preneurial, License,
  Leasing, Operating and Marketing protocol plan in
  JV (public private partnership) with KSUT.
• Assign KSUT Board members or executive committee
  to sit with The Resort Experience Company key
  executives before making final decision and to be
  sure you clearly understand the balanced plan
  Purpose Driven opportunities as well as answer
  all questions for the public/private relationship
  with KSUT.
• Sign Non Circumvent agreements so we can share
  all of our materials with KSUT especially
  Licensing, Leasing, Operating, Marketing and
  Intra-prenurial business model as well as the
  long term development plans.
• Review funding options brought to table by The
  Resort Experience Company, LLC and KSUT to
  finalize funding and agreement for Atwood.

2
Business Model Impact on Atwood Region

• Gross Business from 3.4 million to 10 million
  by 3rd year
• Jobs growing from 136 high season to 500 over 10
  years
• Jobs growing from 60 to 250 off season over 10
  years
• Tax base increase by over 100 million within 10
  years
• Growth will bring businesses like Rural Logic
• Growth will bring services like health,
  restaurants, retail
• Healthy Atwood improves value of homes now
  declining
• Healthy Atwood improve present businesses
  marinas, restaurants, gas stations, yacht club
  memberships etc.
• Healthy Atwood increases quality of life with
  our plan
• All mineral rights wisely invested in resort and
  resort region could make this the 1 growth area
  due to the Resort and resort area improvements
  we recommend that up to 50 of mineral rights be
  shared with investors , KSUT and The Resort
  Experience Company as long as resort is secure
  (to be defined by KSUT and partners).

3
Key Tenants

• Mark Wibel Wibel Restaurant Group Restaurant,
  Sports Bar Catering
• John Meeske Resorts and Clubs, Inc - Resort
  Hotel
• Bob Klopfer Super Fit Fitness Centers Fitness
  Center, Wellness, Golf
• Douglas Ribley Akron General Wellness
  Lifestyle Institute Wellness
• Gregg Andrews KSUT Education Curriculums
  (Possibly Entrepreneurism)
• Tim Maurer Mukha Medi-Spa and Essentials Full
  service Medi-Spa,
• Carole Meeske / Chuck Cherney Resorts Clubs
  Real Estate Sales
• Duke Bixler Breitenbach Wine Cellars Vineyard
  Wine Room Retail
• Brian Valot Beach Club Rentals, and Marina
  Services
• Ron Lavoie World Class Short Game Golf
  Practice Facility Golf Course
• Possible Golf Villages, Cabin and Villa
  Developers
• John Meeske, Mark Wibel Bob Klopfer The
  Resort Experience Company Atwood, LLC - Atwood
  Licenses Atwood Protocols (similar to a
  Franchise)

4
Business Model to Position Atwood to Grow!

• Grant to upgrade technology -
• 20 Local equity partners at 50,000 each , to
  help build
• All Resort Mineral rights on 500 acres used to
  improve resort and resort area -
• 500 development sites on 500 acres major jobs
  and tax impact on area
• Vineyard Villas for condo rooms adds 100 rooms
  to rent (goal 300 rooms)
• Beach Club for ALL guests, members, owners, at
  Atwood permanent easement
• Public private partnership KSUT 50 / 20 equity
  investors The Resort Experience Company
  Atwood, LLC - 50 - SARs for employees
• Bank escrow account for all leases, land sales,
  minerals and if necessary air-rights over hotel
  - Escrow owned 50 public Company 50 Private
  enterprise
• Resort hotel and golf course including 160 acres
  owned by KSUT in JV with Private Operating
  group.
• All development property, leases, mineral rights
  in the escrow to pay off debt and interest on
  debt. Mineral Rights in escrow to build resort
  opportunity.

5
Business Model toGrow Atwood cont.

• Leases covering interest by 2nd year
• Real estate sales paying down debt service by 2nd
  year
• Real estate paying off all debt by 5th to 7th
  year
• Lease income 1.5 times debt service by year 3
  (successful)
• Lease income 2 times debt service by year 5
  (very successful)
• Occupancy growing from 30 to 55 by 3rd year
• Occupancy growing to 65 to 70 by 6th year
• Use capital of 6 million in grants, equity and
  loan to upgrade facility, add on facilities and
  change Business Model
• Be cash positive by 3rd year form leases and real
  estate sales

6
The Deal

• Kent State-Tuscarawas OWN in JV with operating
  company in a public private partnership
• Development Property are in escrow to sell 500
  sites on the 500 acres
• Mineral Rights all in escrow for improvements to
  resort and resort area great example how
  minerals creating year around sustainable jobs
  taxes
• TREC-Atwood master lease and TREC-Atwood
  sub-leases all go to escrow
• No dividends until all debt paid off then 50
  Public 50 private Public / Private
  Partnership.
• Be so successful we add property to existing 500
  acres and grow goal over 2,000 acres
• Success leads to other similarly situated Ohio
  resort club opportunities

7
The Business ModelDifferences

• Past Business Model
• Comparison Changes
• New Business Model

8
OWNERSHIP

• Current Business Model

• New Business Model

• One Owner - MWCD

• 45 growing to 545 Owners
• KSUT - 1
• Tenants - 20
• Investors - 20
• The Resort Experience Co - 3
• Property Owners Goal - 500

9
Purpose Driven Resort
vs. Leisure Resort
Add Programs Experiences Increase Occupancy
TREC ATWOOD LLC CONFIDENTIAL INFORMATION
10
Land Sales
Land Sales

• Current Business Model

• New Business Model

• Zero

• 350 Golf Villas 3 Golf Villages
• 50 Tennis Fishing Pond Villas
• 50 Vineyard Villas
• 50 to 100 Club Cabins
• Total 500 Property Owners
• Goal 600 to 800 Members

11
Operating Model
Operating Model

• Current Business Model

• New Business Model

• Changes with every Management Company and Manager

• Atwood License Franchise no Changes without
  Owner Approval
• Personalized ClubLevel Service all 500 owners
  are members
• Atwood where every guest wants to be a member
  /or owner

12
Marketing Model

• Current Business Model

• New Business Model

• Low priority

• High Priority with 4 of gross to common
  Marketing Escrow every tenant on board with key
  owner representatives
• 2 to 4 Electronic Highway signs tied to Front
  Desk
• Micros Clouds Reservation System
• Mega Web site links
• Social Media Presence
• All Past Guests Groups Reintroduce to New
  Atwood
• Marketing board also Atwood Guest/Mmeber
  Satisfaction Board -
• PR PR PR
• Birds to lead you to Atwood

13
Leases

• Current Business Model

• New Business Model

• No Leases

• Goal 20 Leases, Licenses Contracts
• Resort Hotel Lease
• Restaurant Sports Bar Catering Lease
• Medi Spa Spa Retail Lease
• Fitness Wellness Center Lease
• WCGC Golf Practice Facility Lease
• Golf Course Pro-shop Lease
• Real Estate Sales Lease
• Vineyard and Wine Room Lease
• Business Center Lease
• KSUT Curriculum Lease
• Property Management Lease
• 5 to 10 Development Contracts
• Wellness License
• WCSG Golf Practice License

14
Experiences

• Current Business Model

• New Business Model

• Basic Leisure Experience nothing bad, but
  nothing GREAT

• The Experience Economy Authors from Cleveland
  own Strategic Horizons Company, have visited
  Atwood
• 1 Resort meeting experience in Ohio
• Best resort restaurant in Midwest
• Ohio Sports Bar with most fun experience
• Finest resort medi-spa experience in Ohio
• 1 lake resort experience in Ohio
• 1 resort wellness program in Mid-West
• 155 Experiences in Area
• 52 events in area

15
Occupancy

• Current Business Model

• New Business Model

• 29 to 34 as Leisure Resort

• 55 to 70 as a Purpose Driven Experience Resort
  with Tenants tied to The Resort Experience
  License, Lease Franchise

16
Meetings

• Current Business Model

• New Business Model

• Few business meetings due to Low Tech 10 of
  business less than 1,000 room nights

• High Tech Corporate Conference Center 50 of
  business goal 8,000 to 12,000 room nights

17
Restaurant

• Current Business Model

• New Business Model

• One major restaurant and two golf restaurants
  gross 1,200,000 with 4 margin before overhead

• Two restaurants
• Kitchen in DR for restaurant
• Wine coffee bar room
• Ohio Sports Bar
• Catering kitchen
• Gross 3.5 million 22 margin after overhead
• Look of Carrabbas, Out Back Chichis plus
  local wellness

18
Catering Kitchen

• Current Business Model

• New Business Model

• One Kitchen

• Catering Kitchen focused on all catering for main
  dining room, weddings, groups and parties within
  50 miles of Atwood.
• Demonstration Kitchen in Dining Room to
  consistently meet and beat guest expectations
  with two menus.
• Wibel trained Carrabbas, Out Back,
  Cheeseburger Paradise and Chichis.

19
Menus

• Current Business Model

• New Business Model

• Three menus in three locations

• Two Menus in one location
• Separate Catering focus
• Upper middle dining menu
• Casual Ohio Sports Bar menu

20
Spa

• Current Business Model

• New Business Model

• No Spa

• Professional
• Medi-Spa,
• Spa Retail,
• Wedding services,
• Beauty Essentials
• In existing space

21
Beach Club
Beach Club

• Current Business Model

• New Business Model

• Nice but nothing Special

• Attraction for Atwood possibly 1
• JV with Atwood Marina -Brian
• Canoes
• Fishing Boats
• Kayaks
• Ice Fishing Tents
• Pontoon Rentals
• House Boat overnight rentals
• Tubes
• Beach of Sand
• Swimming Platform
• Docks
• Camp Fires
• Club House or Tent
• 10 to escrow

22
Club House

• Current Business Model

• New Business Model

• Two Golf, no tennis and no Beach Club House

• Resort Hotel Sports Bar becomes - Golf
  Fitness Club House plus
• Beach Club House
• Tennis Fishing Club
• Fitness Club with WCSG Wellness
• Golf Clubs
• Marina Club (not owned)
• Yacht Club (separate fee)

23
Fitness

• Current Business Model

• New Business Model

• Modest hotel type fitness Center

• Professional Fitness Club by Super Fit and Bob
  Klopfer family
• Seasoned veteran - owns 32 centers
• WCSG Golf practice License
• Akron General Wellness license
• Tied to Spa Wing with Spa operator
• Fitness Club with different levels of membership

24
Wellness

• Current Business Model

• New Business Model

• No wellness program

• Akron General Wellness LifeStyle Institute
  License
• Mid week program year around
• Tied to Company Meetings
• Tied to Fitness Club
• Tied to Spa Wing with Hot Tubs

25
Oil and Gas

• Current Business Model

• New Business Model

• No Oil

• Mineral Rights all used for Atwood and
  surrounding activities
• Separate escrow for Resort and resort area
• Upfront capital used for upgrades
• Royalty for upgrades to Resort and Area such as
  bike trail, Flowers, Trails, History

26
Examples below of a few past Resort Business
Model Changes

• Shanty Creek Purchased broke, added Hilton,
  sold to ClubCorp
• Schuss Mountain Purchased with stock, merged
  with SC and sold to CC
• Quail Hollow purchased on trigger deal by CC,
  added Country Club sold
• Pinehurst purchased for 15 mill out of C-7 ,
  value now 500 million
• The Villages from 500 acres to 25,000 acres,
  the most successful
• Barton Creek Bankrupt 1 course 150 rooms to 4
  courses 350 rooms
• Inverrary Resort Country Club added broke
  hotel to Country Club
• Homestead Added capital in first place,
  development, Club upgrades
• Owners Club Country Club plus Resort plus
  Experiences Resort C Club
• The above are simply examples of the hundreds of
  resorts we have studied and some of the resorts
  and resort country clubs we have owned and/or
  turned around with individual models all
  different. The key is the license, lease,
  operating marketing protocols tied to TREC
  franchise agreement.

27
Shanty Creek Business Model

• Two Real Estate Developers
• Retail at resort
• Town of 200 owners
• 3,100 Property Owners (room for 4,000)
• 6 golf courses,
• 3hotels/rental management, overall rooms with
  condos 500
• 3 ski areas
• Owner Apex Oil Company (3 billion company)
• Started at 1,300 acres now 4,000 acres

28
Quail Hollow Business Model

• Country Club Club Corp.
• 600 Property Owners
• Separate Golf Course for Club
• Hotel/Resort with Food Beverage,
• Meeting site,
• Two Golf courses
• 2 Pools
• 600 plus acres
• Ownership ClubCorp owns Club and Resort owned by
  private party

29
Pinehurst Business Model

• Pinehurst Town 100 retail owners
• 7,200 Property Owners 15,000 Club Members
• 800 Rental Units est.
• 3 Hotels, about 650 rooms total
• 9 Golf Courses,
• Mega Spa,
• 5 Restaurants and Clubs with 15,000 members,
• 18 clay tennis Cts, Lawn bowling, Professional
  Croquet Cts,
• Gross business has reached over 100 million
• Major site for Tournaments including US Open
• Retirement Second Home and Primary Residents
• Billionaire Owner, Bob Dedman, Jr.
• Grew from 3,700 to 7,000 acres

30
The VillagesBusiness Model

• 50,000 golf carts
• 138 buffalos
• 70,000 residents (all over 55)
• Four Charter Schools and no children live in
  the Villages school for employees
• 20 Golf courses over 400 holes of golf (several
  free name brand courses)
• Every possible experience event - 151 soft ball
  teams, pool club, wellness, Tennis, Polo, Chess,
  Bridge, largest nightly cocktail parties in
  Florida etc
• 10 home sales per day
• Three town centers gross over 10 million in
  cocktail sales per year
• Most transportation by golf cart golf cart
  paths to all destinations
• Several shopping centers, churches, restaurants,
  services, health centers
• No financial discrimination all residents
  members of all 20 clubs
• Grew from bankrupt 500 acre trailer park to
  25,000 acre mega retirement resort
• H. Gary Morse family owned billion dollar level
  from zero