DOHWA DISTRICT RE-DEVELOPMENT PROJECT INCHEON, …

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DOHWA DISTRICT RE-DEVELOPMENT PROJECT

INCHEON, SOUTH KOREA

BUSINESS PLAN

Dr. Henrik Mann

2415 San Ramon Valley Blvd. Suite 4-102, San Ramon, CA www.gencomintl.com ● +1925 915 1536 ● [email protected]

mailto:[email protected]

21ST CENTURY ECO-CITY - MEDIA, BUSINESS, RESIDENTIAL & SPORTS COMPLEX 2 | P a g e

NON-DISCLOSURE AND NON-CIRCUMVENTION This document is presented to the reader with the understanding that the information contained here-in is highly confidential. Should information be improperly disseminated or discussed outside of the selected group of recipients, it could jeopardize the ability of the project principals to bring the project to completion. By being issued this document the reader confirms that he or she will hold this information in highest confidentiality. The information provided in this document is legally protected.

Attorney: Arthur O. Spaulding, Jr.

Cox, Castle & Nicholson LLP 555 California Street

10th Floor San Francisco, CA 94104

Phone 415.262.5141 Fax 415.262.5199

Email: [email protected]


PROJECT OVERVIEW The Dohwa District Project is part of a massive urban renewal project focused on improving the quality of life in Incheon by providing “An Enriched Lifestyle Centered Community through the integration of business, education, culture, arts and sports”**, to execute a well-balanced development in urban city planning and revive the local economy. ** Quote by the Incheon City Mayor at his annual address The project emphasis is “Media”, “Sports”, “Culture” and “Eco-Green”

Incheon is applying a development plan for 24 designated locations based on the Urban Renewal Project in accordance with the Urban Development Law for Public Development. Dohwa District Area will be included in the Transit Oriented New Area Development

The Dohwa Project is interesting and unique, being built on a two level plane; one vertical at ground level and upward; one level, 5 stories, fully underground. Much of the “City” will be built with buildings, streets and walkways totally underground. Residential will be above ground. This concept, though beautifully and aesthetically built, will create a high level of economy of construction, environmental control and efficiency of movement for its visitors and residents alike.

Previous discussion with local government officials have supported the redevelopment project related to relative entitlements. Further, a 162 page (Korean Language) feasibility study has been completed and this study came back with an “A” rating related to risk assessment. The document confirms what will work economically and eliminates any elements which will not bring in the anticipated value. The Dohwa Project features the creation of the first “Media Valley” – South Korea’s Silicon Valley, and the development of a value-added Advanced Information Technology and Logistics Center. The project will be oriented towards sports teams in four different sports categories – South Korea’s sports leagues of baseball, football, basketball and volleyball.


THE OPPORTUNITY Given the location and scope of this project, the funder and participants will have a dynamic opportunity to leave their recognition mark for the entire world to see.

The DOHWA principals are seeking funds to build a multi-use campus to educate, entertain, support and showcase the modern lifestyles of the Korean people and to provide an exceptional experience to those who visit this unique country. Those funds are now promised through EEFC..

This project is an ongoing venture that will take considerable funds for development and operation. The principals are ideally seeking a forward thinking funder who will join with the group as a JV/equity partner, providing 100% funding on a non-recourse basis.

The property is one of the most visible pieces of land along the transportation corridor between the Capital City of Seoul and the new, ultra-modern Incheon International Airport. The property is 194.8 acres and is properly zoned to compliment the location and the needs of the DOHWA Township. PROJECT NAME: Dohwa District Re-Development Project LOCATION: Incheon, South Korea CORPORATE STRUCTURES: Dohwa USA Corporation, Development Partner Dohwa Incheon Corporation, Operations Partner PROJECT FUNDING REQUIRED: US$5,000,000,000, provided over a four year period VALUE OF PROJECT ASSETS: US$9,000,000,000

LOCATION The Project is located n the heart of the “old district” of Incheon. The location features three major educational facilities including the old Incheon University, and in proximity to a major, semi-industrial district of Incheon, the Project is central to the City and all of its residential, business, shopping and recreational facilities. The property is along the main transportation hub of Incheon, with direct access to Seoul and to the remainder of South Korea. This will provide facilities to not only local residents, but to those in other areas of South Korea drawing visitors from far and wide. It is bounded on the south by the Subway line 1 (gyeonginseon) Jemulpo adjacent to the (Chemulpo station), and on the North by the Truck Freight Terminal and the Industrial Complex. The land is comprised of a total of 194.80 acres. The site legal address is: Dohwa-dong 43-7, Nam-gu, and Incheon City, South Korea


FINANCIAL Based upon the Feasibility Study and concepts of the project financial consultants in conjunction with the GenCom BOD, the financial proforma has been developed. The funding budget required in US currency, is Five Billion US Dollars (US$5,000,000,000). The proforma is developed indicating the major venues and responsibilities of developing the complete Dohwa project, as is conceived by the Developers. Dohwa is to be developed on a very “fast track” schedule which is realistic based upon the proven professional developer, construction process followed in South Korea. Further, though the budget proforma shows a US$5,000,000,000 development template provided to support the basis for funding required, the funder may not be required to actually provide the full total of those funds. Business norms in South Korea require that certain Real Estate ventures require owners to provide “up front” payments for their selected property and assets when they contract for space. Such requirements will reduce the actual yearly funding which will be required of the funder. Such pre-payment will be subtracted from the distant end of the funding requirement schedule. The full presentation of the proforma is attached separately because of its size. The following charts are also presented with the Proforma document.


ECO-GREEN AND HUMANITIES Construction of the Campus, will emphasize the use of “Green” and environmentally safe products. The campus will base its utility needs upon and with alternative energies and a local generator will provide electricity with a “waste-to-energy” system which provides not only economical and clean power but will also provide commercially useful bi-products. The machine uses and disposes of all kinds of waste and emits almost “0” negative elements into the environment. The Agricultural Pavilion will not only be used as a visitor attraction but will have hands on technology displays educating the viewer of the miracle of agriculture. An experimental laboratory will be in operation with a task to create more and efficient ways to produce food, especially in areas where farming is at a premium. A Hydroponics gallery will be growing clean plants, especially vegetables which will be used by the restaurants on the Campus and sold to individuals from its Farmers Market. The project will introduce green construction and green industries to foster an eco-friendly green city. The objective is to reduce greenhouse gas emissions and enhance the quality of life for its citizens. The project will be a unique, compact city, conserving energy and featuring smart technologies. A variety of alternative energies will be featured and used. State-of-the-Art IT Technology (DCC) and Smart Grid will be used as the operating system to manage the complex development.


DEVELOPMENT PLAN

PROJECT STRUCTURE & VENUES Major programs, but not limited to: Purchase of Land: The City Government of Incheon owns the land as it was the home of the now closed, old site of the Incheon University. The Dohwa project will purchase the land from the City over a period of time, but is being allowed to develop the land at the urging of the Incheon Government. Architectural Designs: Project Principals Group has been working for a number of years conceptualizing the project, working with the Government and gaining Government entitlements and approvals. The Architectural team is poised to proceed into the schematic design phase immediately upon funding. A top International Architect has been appointed to position of Architect of Record for this project. Infrastructures: To gain the greatest advantage of this piece of land, the plan is to build not only at ground level, but to create a unique, underground layer of buildings and facilities as well. Infrastructure of both levels will feature the necessary roads, walkways, landscaping, water features, commercial and residential venues, utilities, parking and all of the support facilities to make the project self sustaining.


Support Services: The services will include, research & development laboratories, Silver Healthcare Facilities, employee services facilities, a tree and plant nursery, a laundry, the facility communications center, access to the near-by train station (subway), a bus station, auto service station and the administration offices for the campus.

Shopping and Citizen Services: Underground will be found a full service shopping center. Included will be a high quality Boutique Street; Hyper Market - department/grocery store; fashion outlets; electronics outlets; book and gift shops; a bank, hair salons and even doctor’s offices and an emergency medical facility. There will also be sports shops; various other specialty shops and commercial venues; a Pet Mall; LAN Party Room; food court with a Gourmet Alley, buffet restaurant, coffee shop, and World Food Hall.

Above ground will be office and residential buildings interspersed.

Sports and Recreation Facilities: On the ground floor will be found the golf course, driving range and Sports Park; Pak Seri Golf Academy, Range and shop and the Fairway Village, luxury homes; Taekwondo Exhibition hall, and World Taekwondo Village; an X game park, and possibly a 20,000 seat football stadium On the lower level will be found an indoor gymnasium, multi-use gymnasium, Sports Park, and residential community centers (pool & activities centers) Digital Media Centers: Digital studios and their related facilities will serve to communicate and operate not only within the production facilities but for broadcast throughout Asia. The facilities will be used for education and the electronic “brain” for campus operations.

A film studio is in the planning as well as an animation film studio. Such studios, several in Korea, support the 10 $Billion, US animation studios. Education: Following the legacy of the project site, education will play an important role by providing facilities for an Elementary School, DCC Computer Academy and a Professional Academy complex. Many of the Dohwa facilities and activities provide educational emphasis with their presentations. Theatre and Entertainment: A major, interconnected Cultural Center will be created

providing education, entertainment and enjoyment with its “State of the Art” Musical Theatre, Concert Hall, Multiplex Theatre, Waterside Amphitheatre (by the underground lake), Nightclubs and serviced by sophisticated production shops and storage infrastructure.

Amusement Parks: Indoor Parks will be featured and enjoyed by children and adults alike. The successful Thomas Land - children's ride & theme Park, KidZania venue and the Pororo Children’s Theme Park offer Entertainment & Education alike. A thrilling simulator Ride and Theme Park will be provided.

Indoor Water Park: The sandy bottom swimming lake will become a part of an exciting water rides experience.

Cultural Pavilions: To add to the educational enjoyment will be viewing and hands-on experiences in the various Cultural Halls. They will include a Kunsthalle, Temporary Art Exhibitions Hall; a Traffic Safety Museum; aquarium; ECO Museum; Korean Cultural Pavilion; Agricultural Pavilion with hydroponics facility and agricultural experimental Laboratory.


Hotel(s): On the upper level will be located a 3 star hotel and a name brand 5 star luxury hotel, complete with Spa, restaurants; shops; business center; convention center and children's hall. Residential: Strategically placed will be a variety of residential communities which are comprised of mixed use residential housing, condominiums; apartments and an International Retirement Village Land Use Program


PROJECT PRINCIPALS

Dr. Henrik Mann, President, GenCom International, Principal, Dohwa District Project Dr. Mann is President of GenCom International, LLC, (www.gencomintl.com) a new 21st century global management consultancy and commercial brokerage with associate representatives presently residing in Copenhagen, Bangkok, Dubai, Inchon, Hong Kong, London, Israel, and the USA - San Francisco Bay Area's 'Silicon Valley.' GenCom International provides a multi-service leadership platform to help clients grow their capital formation projects and advances client leadership and vision in the following domains:

Commodities – GenCom works on bringing buyers and sellers together for trade and purchase of Gold, Diamonds, Petro Fuels, Bio-Fuels, Ethanol, Agricultural Products, Coal, and scrap metals. GenCom also is a principal on refinery contracts, invests in precious metals, and works directly with established diamond companies in Antwerp.

Software Solutions - GenCom is a distributor of RFID in partnership with an international firm based in Dubai, and offers SAAS solutions for both Inventory tracking and Asset management. GenCom International also is a partner with a SAAS solution provider in Germany for energy management of large commercial buildings. GenCom International also is involved with business analytics, and other SAAS solution providers.

Management Consulting - Having built a SF Bay Area consultant forum with over 350 consultants identifying their business specialties in a variety of fields, GenCom offers to marshal an impressive team of professional experience for assisting clients.

Offices, Factories and Homes - As global ambassador for manufacturers of eco-buildings with European Technical Approval that feature almost zero thermal loss, GenCom facilitates delivery of sustainable modular building product. We source our expertise and product lines through the UK and Copenhagen.

Energy Solutions – GenCom offers alliance partners with bio-waste to energy technology, and solar solutions, practically anywhere in the world. We're associates on a WTE project in Inchon.

New Media Assets - GenCom assists clients in market branding and penetration, including for instance the hosting of an Internet radio talk show (www.talkzone.com) that reaches listeners in the US and around the world.

Organization and Leadership Consultation - 21st century challenges for leaders in the New Economy mandate value creation at the level of knowledge production and management in order to develop fresh business approaches for generating successful and sustainable operations. We work with foreign investors in the US Marketplace to manage their operations.

Dr. Henrik Mann graduated summa cum laude in 2005 with his Doctorate of Education in Organization and Leadership (international focus) from the University of San Francisco.

Sung-Hee Park, Associate, GenCom International, Principal, Dohwa District Project Sung-Hee Park has more than twenty years experience in business management and has implemented comprehensive corporate accounting, budgeting, financial reporting and MIS systems and management programs. She has managed large companies, such as Samsung and start-ups to successfully link accounting and finance systems with general operations. She received her BA in Business Administration from Sung Kyun Kwan University in Seoul Korea.

http://www.talkzone.com/


Richard H. Stone, Associate, GenCom International, Financial Principal, Dohwa District Project Richard Stone is a Developer/Owner of Renewable Energy Projects. His company “Environmental Energy & Finance Corporation” (EEFC) was created over seven years ago with his partner Myung “Lloyd” Sun Lee. EEFC teams with leading Corporations that provide the required expertise in Technology, Engineering and Construction. Projects are designed and engineered for each plant site so as to customize for each particular location and type of energy. EEFC is a Leader in Renewable Energy with capable Teaming Partners and qualified Finance Companies to provide Debt Finance, Equity Finance, and Creative Finance. EEFC is now working with a Finance Firm that is establishing a $5B Hedge Fund to be able to Finance EEFC Projects in Renewable Energy, Power Plants and Others with the Equity being backed by EEFC’s Gold and Coal Assets in Colombia which are under formation and completion. Mr. Stone’s background includes (but is not limited to):

Managing Partner in Yotta Capital Ltd which is a team of Finance people that specializes in using Bank Instruments, PPA, Equity and Debt to develop Renewable Energy Projects. Project Funding is also developed by using commodities, leveraged into Trade Platforms.

Stone developed his Environmental skills starting with R. Buckminster “Bucky” Fuller.

General Manager of Advanced Environmental Services (AES), a leading technology to decentralize large wastewater treatment plants throughout the World. He developed their International Market and co-produced the Company Business Plan major financing procurement.

He worked with the International Finance Corporation of the World Bank to do a Feasibility Study for a major housing development in El Salvador, Central America known as Globalhome, a Township of 2500, mid-income level homes with its own wastewater treatment, waste to energy, solar and a mini shopping center. The mortgage program he devised was to use remittance money being sent to El Salvador from family members living and working in the United States to pay for the mortgage.

He worked in Disaster Relief as an expert in Refugee shelters and low-cost housing and was hired by many top relief agencies of the time such as World Vision, World Concern, World Relief, Food for the Hungry, United Nations, USAID and many more.

Stone was on the first 747 Plane to land at the International Airport of Mogadishu, Somalia as part of “We Are the World” campaign. The United States State Department confirmed Stone as a World Authority in Refugee and Low-Cost Housing in 1978.

Other experiences for Stone have been in Advertising and Promotion as a Commercial Photographer, Commercial Printing Consultant, and Media Director of one of the largest Freight Companies plus doing General Construction while earning his College Degree, in the late 60’s and early 70’s.

David Hale Hand, President, David Hand Productions, Associate GenCom International

Hand holds a degree in Theatre and Communications from the University of California at Santa Barbara; worked on the New York scene in theatre, film and television for five years; taught technical theatre at Colorado College; was President and CEO of Stage Engineering International, Ltd. (26 yrs.), providing services domestically and internationally; President and Principal Consultant for Theatre Development Associates, and was Principal Designer and a Department Supervisor for Walt Disney


Imagineering; providing services to Disney’s Parks in California, Florida and Paris. Active in development of several major International Destination Resort projects with his company Gateway Central. Mr. Hand is past International President of the US Institute for Theatre Technology (USITT) and is a Fellow of that Institute. He has been totally involved in the entertainment business all of his life, and has extensive knowledge in administrative and project management skills in designing, developing and operating film, entertainment and theme park industries. He is ideally suited to be associated in this venture. Yoon Seung-Man, Consultant To GenCom International

Yoon Seung-Man was educated at Hankuk University of Foreign Studies - Journalism where he earned a BA Degree, and at the University of Incheon where he earned his MBA. His career has provided him with an exceptional background in business, management and project development as he served the Oricom Co, Northwest Airlines, lnc. and Korealife Insurance Co., Ltd. He then established his own companies - CastleRock Co., Ltd, Crete Co., Ltd, Sang Woong Co., Ltd. and IDPMC Co., Ltd. He has published “Understanding of Urban Development Projects” (Kyunghyang Media, 2004), “Practical Travel of Urban Development Projects” (Hanulbooks, 2005), and “An end to the Urban Development Project” (Kyunghyang Media, 2006). He is well qualified to develop humanitarian and commercial projects in which he is involved.

PROFESSIONAL SUPPORT The Development/Management team has access to top project development professionals in the design, development and operations of this multi-faceted residential community, commercial, sports and entertainment destination. They will provide services based on what they do best - the necessary expertise for a successful venture. Each member of the team will provide input based on their particular professional specialty. We are pleased to present our agreed to Architect, one of the largest firms in the world, RMJM International Architects. With offices worldwide, they will have full service capability for the Dohwa project. Their Asian offices are located in Hong Kong, Shanghai and Singapore and include 13 other major offices in Europe, Middle East, Africa and the Americas. Please see their website link in the index of this presentation. The General Contractor for the project will be Daewoo Construction, the largest General Contractor in South Korea. Besides building many of the largest projects in Korea one of their major accomplishments has been the Incheon International Airport, located just a few miles from the Dohwa project site. Please see their website link in the index of this presentation.


EMPLOYMENT The Dohwa Project, will provide employment for as many as 500 Administration people during the fast track design and construction of the project. The Dohwa project will create tens of thousands of jobs, not only for the local community, but for the entire Country of South Korea and Internationally. It is important to note the significant number of jobs which the Dohwa project will provide. Employment of every profession and skill will be required to build and operate this dynamic community. Sales of products will impact established businesses, their services and manufacturers. Employment will be impacted exponentially.


CLIMATE Oceanic climate as Incheon borders Gyeonggi bay, Migratory anticyclone bring clear and dry skies in the spring and autumn, and the north pacific anticyclone brings heat wave in the summer. Incheon experiences a seasonal rain front from the end of June to mid July and typhoon from August to September. Rainfall is fewer than the interior and distributed more from the end June to the early September. Average temperature 11.7°C, the highest of 38.9°C, the lowest of -20°, and the year range is 27.3°. Yearly rainfall is 1,152.3mm and it is fewer than the other areas in the same latitude. This is due to low pressure passing through the south or the moderate impact of typhoons and moderate torrential rain compared to other coastal areas. Incheon is located in the middle-latitude westerly zone with strong Northwest winds throughout the year, average wind speed of 3.4m/s. During the spring, an occurrence of yellow-dust is much greater and more frequent than other locations. The average days with fog is 49.2days, usually occurring between April and July. During this period there’s a 57% chance of fog. During late spring to summer, advection fog dominates the skies of Incheon and Gyeonggi Coast Line. This occurs when moist air passes over a cool surface by advection wind and is cooled. The design of the Dohwa project is such all facilities can be reached under cover and events are protected from all weather conditions because of the unique design of the campus.

POPULATION & VISITOR NOTICE

As of January 2015 the population of South Korea was reported to be 50,424,000, a reported increase of 6% of 2014. 43 Cities with over 1,000,000 populations are located within 3.5 hours to Incheon International Airport. The total number of visitors is 44,000,000 people.

DOHWA DISTRICT RE-DEVELOPMENT PROJECT INCHEON, …

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