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December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments Van Horn Texas Mountain Base Camp Van Horn Texas Mountain Lodge
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December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

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Page 1: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

December 14, 2006

Van Horn Texas Mountain LLC.

Van Horn Texas Mountain Apartments …

Van Horn Texas Mountain Base Camp…

Van Horn Texas Mountain Lodge

Page 2: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

December 14, 2006

• Introduction

:. Solution to the low housing supply and the challenges that this represents to new individuals moving to Van Horn in the very near future.

:. AdventGX was asked to develop a proposal with participation from the private sector to develop a long term housing solution.

:. AdventGX proposed the development of three properties, one being an apartment complex and two being experiential & nature tourism lodges, financed under a convertible debenture model.

Page 3: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

December 14, 2006

Investment & Development - Approach

:. AGX to Issue $1.8 Million Dollars in a “SEVEN (7) PERCENT CONVERTIBLE NON-NEGOTIABLE SUBORDINATED DEBENTURE - DUE December 1, 2009” series. This instrument will pay a 7% APR plus 1% of the total revenue of this venture over the 3 year life of the debenture. This convertible debenture series will represent a total of 70% equity in the Van Horn Texas Mountain LLC (sole owner of the three projects referenced in this document)

:. AGX will incorporate a 20% management fee (from lodge sales) to operate and promote the two lodges and 15% management fee (from rent revenue) to manage the apartment complex as well as retain a 30% equity component as compensation for its integration services.

:. At the end of the debenture term, the debenture holder will have the option to convert any or all debentures into equity.

Page 4: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

December 14, 2006

Texas Mountain Apartments - Approach

:. Phase one, 12 2 bedroom /2 bath units, cost: $ 700,000

:. AGX respectfully requested the north most block (closest to Hwy 54) for this project pending the acquisition of the proper level of financing as outlined in this document. In October of 2006 The City of Van Horn passed a resolution to contribute the requested lot to AdventGX.

Page 5: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

December 14, 2006

Site Location

Page 6: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

December 14, 2006

Project [Phase One :: 12 Units]

Page 7: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

December 14, 2006

Project [Phase Two :: 20 Units]

Page 8: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

December 14, 2006

Project [Phase Three :: 40 Units]

Page 9: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

December 14, 2006

Financial Details

:. Phase One cost = $700,000 for 12 units

:. Rent $ 800 to $ 900 per month (individual leases available with surcharge) plus utilities ($ 20 water surcharge + electricity)

:. Projected revenue $ 8,400 per month at 80% occupancy rate

:. Phase two & three will be financed with $ 400K and $ 1 million conventional notes respectively.

:. Final Configuration = $ 2 million for 40 units ($ 28,000/ month at 80% occupancy rate)

Page 10: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

December 14, 2006

• Layout and Elevation

Page 11: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

December 14, 2006

Page 12: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

December 14, 2006

Page 13: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

December 14, 2006

Page 14: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

December 14, 2006

Texas Mountain Lodge - Approach

:. An authentic and experiential overnight top quality accommodation targeting the demand for local bed & breakfast and non-franchise hotels. Each cabin being rustic on the outside and pristine inside, offering fine and comfortable linens, oversized towels, a king size bed, two bunk beds, and a sleeping loft over the restroom and kitchenette areas. These cabins comfortably sleep two adults and four children.

:. Lodge to be located at an undisclosed location easily accessible from Interstate 10 and will be carefully landscaped with ethnic plants and walking trails. The site will be viewable from the highway (I-10, with a 25,000 daily car traffic count)

:. Number of Cabins: 12 Daily Rates: $ 145 to $ 175

:. Project Cost (Turn Key: Land, Cabins, Infrastructure, Marketing, Operations, Startup Resources, Sales & Promo, Reservations System, 24/7 Check-in Kiosk, Brochures and Signage): $ 550,000

:. Projected Monthly Revenue at 65% occupancy rate: $ 34,000

Page 15: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

December 14, 2006

Texas Mountain Base Camp - Approach

:. An authentic and experiential overnight top quality accommodation targeting the demand for scenic and local nature tourism attractions. Each cabin being rustic on the outside and pristine inside, offering fine and comfortable linens, oversized towels, a king size bed, two bunk beds, and a sleeping loft over the restroom and kitchenette areas. These cabins comfortably sleep two adults and four children.

:. Lodge to be located in a secluded area overseeing the West Texas mountains surrounding Van Horn - easily accessible from Highway 54 and carefully landscaped with ethnic plants and walking trails.

:. Number of Cabins: 10 Daily Rates: $ 145 to $ 175

:. Project Cost (Turn Key: Land, Cabins, Infrastructure, Marketing, Operations, Startup Resources, Sales & Promo, Reservations System, 24/7 Check-in Kiosk, Brochures and Signage): $ 474,000

:. Projected Monthly Revenue at 65% occupancy rate: $ 27,000

Page 16: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

December 14, 2006

• Layout and Elevation

Page 17: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

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Page 23: December 14, 2006 Van Horn Texas Mountain LLC. Van Horn Texas Mountain Apartments … Van Horn Texas Mountain Base Camp … Van Horn Texas Mountain Lodge.

December 14, 2006

• Thank You!