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HomeMy WebLinkAbout05-22-2012 Council Economic Development CommitteeAGENDA City Council Economic Development Committee Tuesday, May 22, 2012 8:00 a.m. Helling Conference Room City Ball 1. Call to Order 2. Consider approval of minutes from the April 10, 2012 Economic Development Committee meetings. 3. Consider request for CDBG Economic Development Loan for IBLITZ Boxing & Fitness Club, LLC, a Title Boxing Club Franchisee 4. Review and Discussion of Iowa City's Urban Renewal Areas 5. Staff time 6. Committee time 7. Other business MINUTES PRELIMINARY CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE APRIL 10, 2012 HELLING CONFERENCE ROOM, 8:00 A.M. Members Present: Matt Hayek, Susan Mims, Michelle Payne Staff Present: Wendy Ford, Jeff Davidson, Geoff Fruin, Tracy Hightshoe Others Present: Gigi Wood, Jamie Smith RECOMMENDATIONS TO COUNCIL: Hayek moved to recommend to the City Council the request for a CDBG Economic Development loan for Molly's Cupcakes Iowa City LLC. Payne seconded the motion. Motion carried 3-0. CALL MEETING TO ORDER: The meeting was called to order by Chairperson Mims at 8:01 A.M. WELCOME AND INTRODUCTIONS: Chairperson Mims welcomed everyone and asked that those present introduce themselves. Payne moved to approve minutes from both the March 13 and March 20, 2012, meetings as submitted. Hayek seconded the motion. Motion carried 3-0. Hightshoe spoke to the Members concerning this request. She clarified that these funds, from Iowa City's Community Development Block Grant, are loans and not grants, as is often misunderstood. Hightshoe then described Molly's Cupcakes Iowa City LLC. Their specialty will be cupcakes, but they are a full service bakery and there will be a variety of sweets and beverages for sale. The applicant is estimating that startup costs will be approximately $250,000. According to Hightshoe, the applicant has secured a loan for $115,000; has $50,000 from investors; and has also applied for a targeted small business loan through the State. Hightshoe further clarified the collateral arrangement, and added that her bank believes this to be a good prospect. The staff recommendation is for a $35,000 loan, at 0% interest, and repayment within seven years. Members then asked questions of the applicant. The applicant stated that she hopes to be open for business by August. Members then discussed the request, with Mims stating that she believes this business will fill a niche market downtown. Hayek added that he believes this is a good business plan and he is also in favor of the request. Ford also noted that the applicant will need a letter showing the City's support, in order to complete her State loan application. Members agreed that this should be done. Hayek moved to recommend to the City Council the request for a CDBG Economic Development loan for Molly's Cupcakes Iowa City LLC. Payne seconded the motion. Motion carried 3-0. STAFF TIME: Davidson updated Members on a few items. First he noted that the parcel where the former St. Pat's School was located, at Court and Linn Streets, has received two proposals for redevelopment. A staff committee has been formed to review this. Davidson continued, noting the parcel at College and Gilbert, and New Pioneer Co-op's impending move. The City is in the process of preparing RFPs for this. The third parcel is the old Public Work's site. Davidson stated that they are in the process of doing environmental work at present. He added that this corner does get enough traffic that national retailers have shown interest in it. COMMITTEE TIME: Payne asked staff if they know the status of the Red Avocado's former owner and her new restaurant. Hightshoe stated that she believes the owner is looking at a May opening. ADJOURNMENT: Hayek moved to adjourn the meeting at 8:21 A.M. Payne seconded the motion. Motion carried 3-0. Council Economic Development Committee ATTENDANCE RECORD 2012 TERM NAME EXP. V N W 1 W N O y O Michelle 01/02/14 X7 X X X X Payne Matt 01/02/13 X X X OI X Hayek E Susan 01/02/13 X X X X X Mims Key: X = Present O = Absent O/E = Absent/Excused INITIAL REVIEW OF IBLITZ BOXING & FITNESS LLC WORKING CAPITAL Business Proposed: IBLITZ Boxing and Fitness Club is a franchise of TITLE Boxing Club. It is a fitness club that uses traditional boxing and kickboxing techniques to achieve fitness and health benefits. The applicants paid $35.000 into the franchise to protect the franchise ownership in Iowa City, Coralville and North Liberty. The first TITLE Boxing Club opened in 2008 in Kansas City. Budget & Private Financial Contribution The applicants invested $35,000 to secure the franchise. They applied and were approved for a $150,000 SBA loan through Cedar Rapids Bank and Trust. They estimate start-up costs of $185,000, not including the franchise fee previously paid. The owners, Chad and Mandi Wiltz and Ibrahim Funmilayo, will retain their full time jobs and hire a general manager and staff for day to day operations. The private lender will secure their loan with a SBA guaranty, mortgage on the Wiltz home and a lien on all business assets. Applicant requests $35,000 through the CDBG Economic Development Fund for working capital. Comprehensive Plan/CITY STEPS Plan The project does not require public infrastructure and is located in a CC-2 zone (community commercial). The proposed location is within Sycamore Mall. CITY STEPS notes a high priority for employment training and a low priority for direct financial assistance to a for -profit business. Quality of Jobs The applicant anticipates hiring approximately 3.0 FTEs. These positions include a full time general manager and 3-5 part time sales associates. The business will also contract for personal trainers to be paid by class. No fringe benefits are anticipated at this time. Economic Impact The proposed CDBG funds will provide a new business in the Sycamore Mall with access to low interest working capital. Due to the collateral shortfall and the bank's underwriting guidelines, CDBG assistance is requested. Environmental/Community Involvement Applicant states they will work with area youth providers and agencies to offer free self- defense classes, bully awareness and bring awareness to fitness and nutrition, focusing on childhood obesity. Staff Recommendation: The owner's lender and the franchise (Kansas City office) reviewed the business plan and financial projections. The lender stated the application is very thorough and the projections realistic. Lender was not concerned with the proximity of area gyms due to the nature of what IBLITZ provides. Applicant has a history of paying debt obligations. Staff recommends $35,000 for working capital with a maximum term of 7 years at 1 % interest contingent upon the applicant securing a SBA loan of $150,000. Staff recommends as a condition of the award the business is evaluated by the Small April 2012 Business Development Center. Any technical assistance necessary would be based on an evaluation by the Small Business Development Center. For partial security, staff recommends a mortgage on the Wiltz home, lien on the Wiltz and Funmilayo's personal vehicles in addition to a UCC statement for all business assets. The private lender will have the first lien on all business assets and the home. April 2012 Iowa City CDBG Economic Development Funds Application for Business Financi Assistance Business Requesting Financial Assistance: Individual: Chad & Mandi Wiltz; Ibrahim Funmilayo Home Address: 1721 12"' Ave; Coralville, Iowa 52241 Name of Applicant Business: ]BLITZ Boxing & Fitness Club, LLC a Title Bowng_Club Franchisee. Full Street Address of Business: 1600 Sycamore Street, Iowa City, Iowa, 52240 Phone Number & Email Address: Chad 319-631-2392, cwiltzratitleboxingclub.com Mandi 515-557-0433; m.vilfz fithboxingclub.corn Ibrahim 785-341-6185; ifunnnlayg7i,tideboxinachlb.con� DUNS Number (if awarded funds, applicant must obtain a DUNS number): Type of Business: Fitness Club Date Business Established: January 3, 2012 Bank of Business Account and Address (if applicable): Cedar Rapids Bank & Trust; 500 1 st Ave NE, Cedar Rapids, IA 52403 NOTE: The City will not provide assistance in situations where it is determined that any repre- sentation, warranty or statement made in connection with this application is incorrect, false, misleading or erroneous in any material respect. If assistance has already been provided by the City prior to discovery of the incorrect, false or misleading representation, the City may initiate legal action to recover City funds. Revised 11115/06 Section 1: Description of Business and Proposed Project 1.1. Describe the proposed "project" (for example, company relocation, building expansion, remodeling, new product line, number of new jobs, amount of investment in machinery and equipment) and the expected benefits it will receive from the financial assistance requested: IBLITZ Boxing & Fitness Club, LLC is a franchisee of TITLE Boxing Club and is anticipated to be the first TTILE Boxing Club located in Iowa (Iowa City), opening in the summer of 2012. We are currently undergoing lease negotiations to solidify a location in an existing commercial building on the east -side of Iowa City. We have invested $35,000 of our own funds into the franchise, which protects the franchise ownership (territory) in all of Iowa City, Coralville and North Liberty. We have secured a $150,000 loan from Cedar Rapids Bank & Trust (Approval letter attached). Please see Exhibit A in the business plan for a breakdown of how the bank funds will be used. The Iowa City CDBG Economic Development Funds will give us an opportunity purchase additional but needed fitness equipment, signage and inventory as well as funds for initial working capital. 1.2. Provide a brief history of your company: IBLITZ Boxing & Fitness Club, LLC is a franchisee of TITLE Boxing Club out of Kansas City, MO TITLE Boxing Club was started by retired professional boxer and promoter Danny Campbell, Kansas business man Tom Lyons and David Hanson and Tony Carbajo owners of TITLE Boxing, LLC, one of the world's largest distributors of boxing, kickboxing and MMA equipment, apparel and accessories.. The first TITLE Boxing Club opened January 2, 2008 in Kansas City, MO as a result of an innovative workout idea fostered and developed by Danny Campbell that used traditional boxing and kickboxing techniques in a way that Men and Women from all health and fitness backgrounds could adapt to. The unique total -body workout class coupled with an energized environment soon began to inspire a following that found the POWER HOUR workouts to be anything but routine. More importantly, members began to raise their confident levels and view fitness and health as an everyday part of their lives, allowing them to achieve the fitness and health results that had previously eluded them due to gym and fitness center memberships that offered routine (boring), individualistic, and traditional methods of exercise and weight loss. 1.3. Describe the organizational structure of the business: Chad & Mandi Wiltz & Ibrahim Funmilayo are owners of IBLITZ Boxing & Fitness Club, LLC dba TITLE Boxing Club. We will retain our full-time jobs and hire a (1) full-time General Manager to manage the club on a daily basis. Several Assistant Manager/Sales (3-5) positions will also be created along with 5-7 Professional Fitness Trainers. 1.4. Management (Proprietor, partners, officers, directors, all holders of outstanding stock, 100% of ownership must be shown) Name &Position/Title Complete Address Owned Chad & Mandi Wiltz/Owner 1712 12°i Ave; Coralville Iowa 52241 50 Revised 11/15/06 2 Ibrahim Funmilayo 785-341-6185 Attach a brief description similar to a resume of the education, technical and business background for all the people listed under Management. 1.5. Will the project involve a transfer of operations or jobs from any other Iowa City or Johnson County facility or replace operations or jobs currently being provided by another Iowa City or Johnson County company? If yes, please indicate the facility(s) and/or company(s) affected. NO Revised 11/15/06 Section 2: Financial Contributions to the Proposed Project ® Use of Proceeds: USE OF Proceeds Loan Requested (Enter gross dollar amount rounded to Activity the nearest hundreds) Land acquisition New Construction/Expansion Repair $ $ Acquisition and/or Repair of Machinery $ 20,000 and Equipment Inventory Purchase $ 5,000 Working Capital (including accounts $ 10,000 payable) Acquisition of Existing Business All Other (provide description) $ Total Loan Requested (All Sources): $35,000 Terms of Proposed Financing (Sources) Proposed Financing Amount Monthly Payment Type(i) Rate Term Financial Institution Cedar Rapids Bank and Trust $ $150,000 $2166 Direct Loan 6.25 7 years Financial Institution : $ Other: $ $ 35,000 $ 185,000 TBD i Iowa City CDBG Economic Dev. Fund (TBD) TOTAL: Direct Loan TBD (')For example: forgivable loan, direct loan, or grant. Revised 11/15/06 Explain why assistance is needed from the City, and why it cannot be obtained elsewhere. If the applicant did not apply for a loan through a private financial institution, please explain why. If denied assistance through a financial institution, please attach the letter of denial. We have secured a loan of $150,000 from Cedar Rapids Bank and Trust as well as invested $35,000 of our own personal funds into opening a new TITLE Boxing Club in Iowa City, IA. Any additional funds we can obtain from the Iowa City CDBG Economic Development Funds will be used for needed fitness equipment, signage and working capital in addition to what the SBA loan we have secured can provide funding for. Revised 11/15/06 Indicate the owner's contribution (cash, assets for the operation of the business, etc.) to this project. Chad, Mandi & IB Owners of Title Boxing Club, have contributed $35,000.00 of their own funds to the business. Identify all agencies or institutions involved in the project (financial, technical assistance, etc.) and what their involvement is: IBLITZ Boxing & Fitness Club has secured a $150,000 SBA loan @ 6.25% rate amortized over 84 months from Cedar Rapids Bank & Trust in Cedar Rapids, Iowa. • We consulted with SCORE and SBDC (Small Business Development Center Iowa City) for business start-up technical assistance. We have gone through franchise owner's training from our Corp. office in Kansa City as well. What type of security will the assisted business provide the City? If no security or less than the dollar amount requested is offered, an explanation must be provided. Corporate Guaranty UCC Financing Statement G Irrevocable Letter of Credit Personal Guarantee r l Surety Bonds Mortgage on Real Estate FEscrow Account n Other: Before execution of a CDBG agreement, if the collateral consists of machinery and equipment, inventory, or other, the applicant must provide an itemized list that contains serial and identification numbers for all articles that had an original value of greater than $5,000. Include a legal description of real estate offered as collateral. 2.7 If the City did not provide financial assistance, could the project proceed? YES; But the support the CDBG low -interest loan would provide would be significant in that it would provide us with funds over and above what the secured SBA loan would be able to provide based on our initial equity position. In addition it would allow us to purchase much needed equipment and inventory that may not be possible to purchase during the start-up phase of the business and help to preserve valuable reserve operational capital from our initial SBA loan, which otherwise may go to high than anticipated lease rent and unforeseen business cost. Revised 11/15/06 Section 3: Jobs to Be Created/Retained Special Note: The Community Development Block Grant (CDBG) program requires that at least 51 % of the jobs created or retained must be held by or made available to low - moderate income persons. The business acknowledges that if it fails to create and/or retain the jobs identified below by the end of the project period and maintain them for a period of time (usually 92 months from the date of the award); it may be required to reimburse City funds for the employment shortfall. If an existing business, how many employees are currently employed at your Iowa City location? Please attach a copy of the company's quarterly Iowa "Employer's Contribution and Payroll Report" for the most recent quarter. (NA) .2 Complete the following chart identifying the number of jobs to be created and/or retained based on this specific project. Type of Job and Hourly Rate for Created and/or Retained Positions in First 12 # of Jobs Created # of Jobs Retained Type of Job No. Hours Per Week Hourly Rate of Pay Fringe Benefits* 1 Officials & Managers 40 $26,000/yr. + Bonus Professional Technicians 3-5 Sales 20-30 EACH $10/HR. Office & Clerical Craft Wokers (Skilled) 5-7 Operatives (semi -skilled) Varies between each trainer $20.00/class Laborers (unskilled) Service Workers Months of Project Award (please see attached Job Category Definitions) *If fringe benefits are provided, please attach a description of all employee benefits provided by and paid for (in full or in part) by the business. Revised 11/15/06 What is the estimated annual payroll for the new employees resulting from this project? General Manager - $26,000 salary + Monthly BONUS Potential Assistant General Manager/Sales — Part-time Hourly + BONUS Potential Professional Trainers — Paid $20.00/class + One-on-one Personal Training Est. Total Annual Payroll $95,400-$110,400 .4 If an existing business, will any of the current employees lose their jobs if the project does not proceed? If yes, how many? Explain why: (NA) Section 4: Economic & Environmental Impact • What other Johnson County companies could be considered to be your competitors? CORE Fitness Anytime Fitness North Dodge Athletic Club New Life Fitness Farrell's Extreme Body Shaping Performance Edge • Please describe the energy and resource efficiency programs, waste reduction, waste exchange, and recycling programs at your Iowa City operation. TITLE Boxing Club will be located at the Sycamore Mall. We plan to incorporate any efficiency programs that have already been established by the management of the Sycamore Mall. In addition we plan to use T8/T5 fluorescent lighting, high -efficiency water heater and furnace (If installed during construction/demo phase) as well as establish recycling process as part of our daily procedure for employees. We plan to use air dryers in the dressing rooms and bathrooms to reduce paper waste and cost as well. Revised 11/15106 Section 5: Community Involvement, Compliance with Law In addition to your normal business activities, does your business contribute or have plans to contribute to the community through volunteer work, financial contributions, or through other means? Please describe. Yes, we plan to be heavily involved as well as develop programs that support many non- profit organizations in the Iowa City community. Below is just a short list of the ways in which IBLITZ Boxing and Fitness, LLC will contribute to the Iowa City community: Big Brothers, Big Sisters Domestic Violence Intervention Program by offering FREE self-defense classes Partner with the Iowa City school district to create programs to bring awareness to bullying v Participate in fundraisers to help raise money for non-profit organizations ➢ Create special programs for children — bring awareness to fitness, nutrition, focus on childhood obesity .2 Has the business been cited or found to violate any federal or state statute or regulation within the last five years (including, but not limited to environmental regulations, payroll taxes, Occupational Safety and Health Administration laws, Fair Labor Standards, the National Labor Relations Act, the Americans with Disabilities Act)? If yes, please explain the circumstances of the violation(s). NO .3 Has the company or any officer of your company been involved in bankruptcy or insolvency proceedings during the past 7 years from the date of this application? If so, provide the details. NO .4 Are you or your business involved in any pending lawsuits? If yes, provide the case name of the lawsuit, docket number, and city and state where it is pending. NO Revised 11/15/06 Section 6: Summary of Required Attachments Check off each attachment submitted. If not submitted, explain why. Ix ] Business plan (if start-up business) See attached [ x j Balance Sheet (3 year historical if an existing business. Start-ups must provide a pro - forma balance sheet) Balance sheet is attached x j Profit and loss statements (3 year historical if an existing business, 3 year projection for start-ups) Please see attached for our 3 year projection x l 12 month cash flow statement (if the business does not expect to turn profitable within the first 12 months, provide a cash flow statement extended to the year the business expects to turn profitable) [ j Description of fringe benefits provided to employees, if applicable NIA [x j Brief description of the education, technical and business background for all the persons listed under Management (Question #1.4) Please see attached resume. Revised 11/15/06 10 Exhibit B MEMBERSHIP COST STRUCTURE Paid in full members pay $49 per month x 1.2 months = $588.00 If members want to pay their membership by month, they can chose from the following: 1 year contract = $69 per month 2 year contract= $59 per month 3 year contract= $49 per month Fnrollment fee = $99 Revenue Stream Types: Club Memberships Personal Training Merchandise Sales 3 YEAR REVENUE PROJECTION Location of Club Ilowa City, Iowa Address: TBD Target Open Date 12012 Year Ended Year 1 Year 2 Year 3 Membership $ 279,181.00 $ 432,330.00 $ 515,502.00 Merchandise Sales $ 23,880.00 $ 25,385.00 $ 24,588.00 TOTAL SALES $ 303,061.00 $ 457,715.00 $ 540,090.00 TOTAL EXPENSES $ 342,272.00 $ 360,572.00 $ 350,072.00 GROSS PROFIT $ (39,211.00) $ 97,153.00 $ 190,018.00 Contracts Sold Month 1 100 16 8 Contracts Sold Month 2 85 16 8 Contracts Sold Month 3 55 16 8 Contracts Sold Month 4 40 16 8 Contracts Sold Month 5 30 16 8 Contracts Sold Month 6 30 16 8 Contracts Sold Month 7 30 16 8 Contracts Sold Month 8 30 16 8 Contracts Sold Month 9 30 16 8 Contracts Sold Month 10 30 16 8 Contracts Sold Month 11 30 16 8 Contracts Sold Month 12 30 16 8 Active Contract at Year End 520 712 808 rcentage of Active Contracts Paid in F latYearFnd 20% 20% :::20% wwZ m ZUQ 12. on On - � N 0 o v v C N r O •- N • i O O O O O 00 O O CD O O O O O O O O l0 C�Sajesfj O Lr n M N N O Opening ®ay Balance Sheet Enter your Company Name here Assets Current Assets Cash in Bank Inventory Prepaid Expenses Other Total Current Assets Fixed Assets Machinery & Equipment Furniture & Fixtures Leasehold Improvements Real Estate / Buildings Other Total Fixed Assets Other Assets Specify - Security Deposit Specify Total Other Assets Total Assets Liabilities & Net Worth Current Liabilities Accounts Payable Taxes Payable Notes Payable (due within 12 months) Current Portion Long-term Debt Other current liabilities (specify) Total Current Liabilities Long-term Liabilities Bank Loans Payable (greater than 12 months) Less: Short-term Portion Notes Payable to Stockholders Other long-term debt (specify) Total Long-term Liabilities Total Liabilities Owners' Equity (Net Worth) Total Liabilities & Net Worth $ 151,840 5,000 3,300 4,000 $ 164,140 43,000 1,500 $ 44,500 $ 5,000 $ 5,000 $ 213,640 $ 5,850 26,003 $ 31,853 $ 156,088 (26,003) $ 130,085 $ 161,938 $ 51,702 $ 213,640 Notes on Preparation You may want to print this information to use as reference later. To delete these instructions, click the border of this text box and then press the DELETE key. A balance sheet shows the financial position of your company at a single moment in time; in this case, it wil be as of opening day. Use your Startup Expenses spreadsheet to get the basic data for the balance sheet. Here are some accounting rules which will help you construct an accurate balance sheet: Assets are recorded at the lower of cost or current market value. Since your assets will be newly acquired, put them down at cost. If you have donated personal possessions to the business (e.g., a vehicle), enter them at market value. Prepaid Expenses are items like insurance premiums which you have already paid but have not yet "used". Other Assets are intangible items like patents and trademarks which are presumed to have economic value. It is very unlikely that you will have significant Other Assets as a new business. You should also include here items like lease and utility deposits. Current Liabilities are any debts due within twelve months. Trade payables and bank lines of credit are current liabilities. If you have a Long Term (multi year) Debt, then that portion of it which is payable over the next twelve months goes in "Current Portion of Long Term Debt". The remaining portion of that debt then goes in the "Bank Loans Payable (greater than 12 months)" section under Long Term Debt. ers' Equity is what is left when you subtract lities from Assets. It will be less than you have )Ily spent on starting your business. That is use many of your pre -opening expenses do not t in ownership of assets which show on a balance t. For example, advertising, travel, and legal fees be necessary, but they do not generate balance t assets. CHAD WILTZ 1721 121h Ave. Coralville, IA 52241 (319) 631-2392 cwiltz75@hotmail.com OBJECTIVE: To utilize my effective leadership abilities, strong business development/analytic skills and communication expertise in a Manager Procurement and Contracts Construction position at Alliant Energy. - Strong relationship management professional qualified by eight (8) years experience in business development and retention with contract negotiation and development experience - Exemplary people skills - consistently provide superior customer service, establishing trust with internal and external stakeholders - Professional work background in customer -focused environment with high demand for exceptional technical analysis, influence and persuasion skills - Capacity to relate to Director and Executive level leadership, colleagues and employees from diverse backgrounds - Ability to use information management and strategic thinking to grasp new ideas, concepts and methods, and put that knowledge into action - Demonstrated tolerance of stress and ambiguity and ability to use systemic problem solving skills EXPERIENCE: Alliant Energy May 2008 — Current Cedar Rapids, IA Key Account Manager - Manage and serve as main point of contact for large industrial, commercial and community regulated utility customers helping to drive non -utility project sales (formally). Customers include International Paper Co., Cargill, Inc., Quaker Oats- PEPSICO, Square D /Schneider Electric, PMX Industries, Inc. and Penford Products Co. - Responsible for creating and maintaining positive relationships with customer and external decision makers - Responsible for interpreting and communicating technical regulatory information to external customers - Responsible for contract negotiation and resolution of any contract issues related to multiple Utility/ Customer agreements (ESA, CSW and FSA) - Communicate internally with key stakeholders and Executive Stewards - Responsible for a thorough and comprehensive understanding of regulatory activity, tariff structure/rates and regulatory policy - Responsible for detailed knowledge, communication and marketing of Company's energy efficiency programs to large industrial, commercial and community customers - Responsible for achieving DSM energy efficiency impact goals with assigned customers - Work collaboratively with other areas of the Company, including Legal, DSM and Regulatory Depts. - Display effective leadership, problem solving, influence and persuasion skills in management of high profile customer affairs Ability to effectively manage both technical and ambiguous circumstances to achieve desired outcome Alliant Energy Jan. 2007 — May 2008 Cedar Rapids, IA Strategic Buyer Established strategic plan for 3r" party staffing management in HR for 2008 that has the ability to generate $8 million dollars in diverse spend and achieve up to 20% annual cost savings; adding $1.6 million back to bottom -line Responsible for securing over $145K in diverse spend for HR in P and 4" qtr. 2007 Created an automated procurement process which has fostered increased and sustained use of five (5) MOB IT Staffing vendors which facilitated $2.8 million dollars of annual diverse spend. Responsible for negotiation of JP Morgan 401 K Services agreement (worked in conjunction with AE Legal and Wells Fargo consulting) Accountable for the negotiation and communication of key supplier contracts to upper -level Management and Executive leadership Concord Mortgage Company Cedar Rapids, IA Business Development Manager Processing Dept. Manag_er Sept. 2006-Jan. 2007 April 2004 —Sept. 2006 - Directed business development strategy for branch and regional office - Monitor and forecast monthly Branch Sales Goals and YTD production levels to meet or exceed Company sales targets in addition to other responsibilities - Supervisory responsibility for 3 direct report employees Pfizer Aug 2003 — Feb 2004 Cedar Rapids, IA Pharmaceutical Sales - Analyzed 3`tl party data to develop strategic marketing plan for physicians in service territory - Tracked prescription data to measure efficacy of strategic territory sales/marketing plan Lakeshore Funding, Inc. Aug 2001 — Aug 2003 Chicago, IL Mortgage Broker J.M. Swank North Liberty, IA Account Manager Supply Chain Sales Aug. 1999 — Jul 2001 - Utilized extensive purchasing data to guide new and existing customers' purchasing decisions, resulting in a year to date increase of 6 million dollars in revenue Recognition 2009 IPL Exceptional Customer Focus and Dedication Award Awarded 2008 Shared Services Outstanding Employee at Alliant Energy "Impact" award for District in first six (6) months as rep. with Pfizer, Inc. in 2004, sales performance and growth in territory Awarded Mortgage Broker "Newcomer of the year' 2002 at Lakeshore Funding, Training - Special Project: Project Management - Line Construction Project 2011 - Green Belt Certification — In Process (Exam completed, working on 1" project) - New Manager's Academy 2010 - Situational Leadership II 2010 - LLS Basics 2009 - Electric Power System Operations 2008 - Energy Utility Basics 2008 EDUCATION: University of Iowa B.A., Arts / Design Iowa City, Iowa Minor in English May 1999 Given for exceptional Inc. AMANDA WILTZ Coralville, IA 52241 515-557-04.33 man rliharrns�hottieaiG corm SUMMARY Dedicated, well organized professional with five years experience in sales and wri-vory management. Skilled in training others of product, processes, pricing and wcb technology. Strong communication and time management skills with the ability to establish long-term, positive rclationships wnh clientele and co-workers. PROFESSIONAL EXPERIENCE SAYpON, INCORPORATED 2008 - CURRENT Account Executive • Consistently increase branch revenue through the generation of new business and further development of existing accounts ® Accurately Corecast annual, quarterly and monthly sales opportunities to management • Maintain active participation and membership in networking organizations • Continually meet with clients to gain a Cull understanding of their business needs and recommend the appropriate value-added products and services to ensure long -teen rclationships • Work/communicate both internally and within client's organization throughoul the project to assess client's satisfaction and identify additional projects • Prepare a detailed scope of work for each project and review project requirements with project management based on client's needs • Ensure accurate pricing based on guidelines established Cor department duough budgeting, estimating and profit margins HOMECOMINGS FINANCIAL, GMAC Company 2006 — 2007 Wholesale Account Executive • Increased territory sales from 3 accounts to 35 accounts in 9 month period • kinplemcnted a strategic survey to prospect clients and identify areas of sales growth • Maintained c-partner status with clientele through consistent coaching and evaluation of reports • Conducted sales training of products, pricing and web technology. • Successfully communicated and worked with a cross reference team of 25 while servicing 35 accounts daily • Excellent understanding ofrnortgage products of subprime, conventional and FII_A programs. • Monitored pipelines, managed underwriting concerns and pricing incentives. OWNIT MORTGAGE SOI.IITIONS 2005 — 2006 Wholesale Account Executive • Consistently provided superior service, established trust with clientele and prornolcd repeat business from over 40 offices. • Averaged 3.5 million in volume/month & 40/unitshnonth • Ranked 19th in company for units over a 6 month period. • Successfully managed undeveloped territory through development of new business and client retention. • Continuously built and developed relationships with over 300 clicntcic. • Educated clients on new and existing products. FIRST FRANICLIN FINANCIAL 2004 — 2005 Wholesale Account Executive • Identified and increased areas of sales growth through prospecting • Leveraged excellent organizational and communication skills. • With staffing levels low and inconsistent turn -tunes, I maintained to consistently increase business and satisfied customer base 0 Acted as a liaison between 30 branch employees and 150 clientele daily AM.+,,�uA IIARMS PACK, Two BIUDLEY PHAIUMACEUTICALS 2003 —2004 Pharmaceutical Sales Representative • Successfullyhandled approximately 150 clicnls wit rill Icrsitory. • Ranked l 2th in company for absolute grown li om Quaricr 3 vs. Quarter 2 in 2003, • Produced rapid sales increases. • Maintained and increased sales over generic product launch— 33% increase, • Educated doctors on new and existing product benefits. • Required effective skills in communication and selling. • Selling cycle included: appointment setting, needs analyses, presenting product information, closing, post - sale tracking. • Devised innovative sales strategies to promote company and Irroducts. • Persistent follow-up resulted in a strong relationship built with illy doctors. IOWA STATE UNIVERSITY VOLLEYBALL Student -Athlete • Demonstrated leadership skills daily. • Demonstrated dedication and commitment. • Established teamwork through support and encouragement. ACTIVITIES / HONORS MVP — Iowa State Volleyball, 2002 Honorable Mention Big 12—Iowa State Volleyball, 2002 Student -Athlete, Iowa State Volleyball, 1999 2002 Erudite Scholar, Fall 2002 Semester Volunteer, Boys & Girls Club FIIU CA' LION BS, Marketing, Iowa State University; Ames, IA, 2003 PROFESSIONAL DEVELOPMENT Microsoft, Excel, Power Point, Word, Exact "Target, 1999 —2002 503 Kimberlite Street.,'liMu. IA. 52340. (785) 341-6185 lbrahimfturrnilayo@silliantenergy.coiri Accomplished Flectrical Engineer with significant experience in the electrical power industry. Background includes physical design, layout and developing electrical power substations from transmission (high voltage) to distribution (low voltage) with full capability to protect electrical substation. Solid design decisions with a consistent track record of anticipating consequences of design, initiating solutions and completing projects to specification. Detail driven with outstanding communication skills and proven success interfacing with both clients and co-workers. Technically skilled in the following software: SIEMENS PSSE 30.3.2 power (low software for running power flow simulations Pall -Planner software for underground cable pull information AmpCalc software for calculating the current rating for a specific cable Win IGS software used in grounding design and lightning protection for substations SEL Products equipment used for multiple relay design and protection of the electrical substation. PROFESSIONAL EXPERIENCE Sega Inc. SEGA is an employee -owned, mullidiscipline engineering and technical services firm that provides a wide range of design, planning, procurement, construction, training, and field services to electric utilities, universities, industrial companies, healthcare facilities, municipalities, governmenial entities, and comrnercial facilities. Annual revenues exceed $27 million. Trrm.segaine.com Assistant Electrical Engineer - Power Delivery, Substation Design consulting 8/2007 — 8/2009 Electrical Engineer — Power Delivery, Substation Design consulting 8/2009 — 10/2009 Alliant_Encrgy� Alliant Energy Corporation is a regulated, investor -owned public utility holding company providing regulated electric and natural gas service to approximately 1 million electric and 412,000 natural gas customers in the upper Midwestern states of7oiva, Wisconsin and Minnesota. wwrv.alliaratenergy.com Electrical Engineer I — Substation Design 11/2009 — 12/2010 Electrical Engineer 1— System Protection/ SCADA 12/20 [0 — Present SPECIFIC PROJECT ACCOMPLISHMENTS Utilities: OD/10 503 Kimberlite Street, Tiffin, tA, 52340. (785) 341-6185 brahirnfunrnilayo 5adlisurlenergy.corn Progress Energy Florida, Lake Mary, Florida — Assistant Electrical Engineer for the capacity upgrade of several 69/13-kV substations, along with the design of several new substations. Focused on grounding design and lightening protection; utilized Win IGS. Prepared a number of grounding reports. Substations required new feeder breakers and larger or additional transformers. All work was done according to PEP standards. Missouri Public Service — Electrical Engineer for the expansion of the 16lkV substation into a ring bus plan; installation of additional 30MVA transformer and two 161/12.47 kV breakers in substation. Alliant Energy Substation Engineer for numerous projects including design of a 69/12.5 kV recloser substation, 161/12.5 kV standard open air substation and metering upgrade for existing and new substations. Design and troubleshooting of multiple SCADA system used for monitoring power flow mostly in large wind farms. Municipalities: City of hulependence, Missouri --Designed a power flow project for Independence Power and Light (1PL) master plan study. The substation design included installing power transformers, circuit breakers, and switches to an existing or new substation. Used PSSE 30.3.2 to create the master plan overview using power flow simulations for different Substations within the geographical area. City of St. Charles, Illinois —Created the design for an upgrade to an existing substation for the City. Design included installing a new 34.5 kV circuit breaker, potential transformer, and power fuses taking into consideration existing facilities to ensure compliance with standards and safety. City of San Diego, California. Designed an underground transmission line for the City. Project contributions included layout and design of the line, taking into consideration current rates, cable characteristics and cable pull routing. Managed environmental challenges and state -specific regulations. Used AmpCalc and Pull -Planner software for design consideration. Project is currently in construction. EDUCATION Bachelor of Science Electrical Engineering (B.S.E.E.), Kansas State University, Manhattan, Kansas, 2007 ✓ Counselor, Engineering and Science Summer Institute. Provide mentoring and transition support for incoming engineering students. ✓ Vice President, Kansas State Men's Soccer Club W/19 Unit Price quantity SUb-Total Range Range Start Up Gym Package $ 42,000,00 $ 55,000.00 TBC Class System: TBC Bag Rack $ 190,00 60 $ ll,noo.00 $ u,nao.DD $ 11,400Do TBC Bag $ 120.00 60 $ 7,200.00 $ 7,200.00 $ 7,200.00 TBC Cash Wrap/Counter 1 $ 385.00 $ 385.00 $ 385.00 Member cubicles 2 $ 110.00 $ 220.00 $ 220.00 TBC Ring: $ 4,287.00 $ 4,287,00 $ 4,287.00 Misc. TBC Equipment (optional) Speed Bag $ 92.62 2 $ 197.24 Speed Bag Platform $ 15.00 2 30.00 12 Pound Medicne Balls 33,00 5 $ 165.00 10 Found Medicine Balls $ 27.00 10 $ 270.00 8 Pound Medicine Balls $ 22.00 10 $ 220,00 Medicine Ball Rack $ 385.0o 1 $ 385.00 TBC Timer $ 110.00 1 $ 110.00 Handwrap Roller $ 7.50 2 $ 15.00 $ 1,490.32 $ 1,490.32 Gym Flooring: $ 11.80 400 $ 4,720.00 $ 2,950.00 $ 2,950.00 Audio/Visual $ 1,000.00 $ 5,00000 traditional Equipment(cardio/free weights) $ 3,000.00 $ 10,000,00 inventory Starter Gloves $ 14.38 20 $ 287.60 $ 287.60 5 287.60 Wraps $ 2.59 250 $ 647.50 $ 647.50 $ 647.50 5latwall (presentation) $ 50.00 1 $ 50.00 $ 50,00 $ 50.00 Retail Cage Panels $ 360.00 2 $ 720.00 $ 720.00 $ 720.00 Apparel/Starter Kits $ S,ODO.00 $ 10,000.00 nstallation $ 3,890.00 $ 3,290.00 $ 3,890.00 ldditional/Misc. $ (527.42) $ (3,527.42) dart Up Gym Package $ 42,000.00 $ 55,000 00 x 1 Please provide the social security numbers for all the persons listed under Management (Question #1.4) j If an existing company, copy of the company's quarterly Iowa "Employer's Contribution and Payroll Report" for the most recent quarter. NIA Construction loans only: Cost estimates for construction and a statement of the source of any additional funds NIA x l Include a list of any machinery or equipment or other non -real estate assets to be purchased with the financial assistance and the cost of each item as quoted by the seller. Include the seller's name and address. Upon review of a submitted application, the City reserves the right to request additional information in order to assist the City with its evaluation of an application. Release of Information and Certification NOTE: Please read carefully before signing I hereby give permission to the City of Iowa City (the City) to research the company's history, make credit checks, contact the company's financial institution, and perform other related activities necessary for reasonable evaluation of this proposal. I understand that all information submitted to the City relating to this application is subject to the Open Records Law (1994 Iowa Code, Chapter 22) and that confidentiality may not be guaranteed. I hereby certify that all repre- sentations, warranties or statements made or furnished to the City in connection with this application are true and correct in all material respects. I understand that it is a criminal violation under Iowa law to engage in deception and knowingly make, or cause to be made, directly or indirectly, a false statement in writing for the purpose of procuring economic development assistance from a state agency or political subdivision. If applicant is a prdp�ietor or general partner, sign below. �._ f By Date: Wit. fllf �i If applicant is a Corporation; sign below: Corporate Name and Seal Date 0 Attested by: Signature of President Signature of Corporate Secretary Revised 11/15/06 �� mu TITLE BOXING CLUB BUSINESS PLAN FRANCHISEES CHAD WILTZ MANDI WILTZ IBRAHLM FITNMTLAYO TABLE OF CONTENTS 1, TTTLE BOXING CLUB FRANCHISE SNAPSHOT 2. BUSINESS PLAN 3. FRANCHISEE CONTACT INFORMATION The Hottest Neighborhood. So you're ready to accept our challenge... to introduce your community to the hottest fitness concept to hit the nation. Our concept is TITLE Boxing Club® —the first boxing and kickboxing fitness club of its kind in the Midwest. Being the first, we are as passionate about our brand as we are of our POWER HOUR fitness workouts. People come to TITLE Boxing Club® to experience the POWER HOUR. These explosive total body boxing and kickboxing fitness workouts are as innovative as they are effective. And everything we do communicates our edgy sophistication to appeal to our predominantly educated, professional female demographic, as well as the men who find their way into our clubs. TITLE Boxing Club' was founded by retired professional boxer and promoter Danny Campbell, Kansas City businessman Tom Lyons, and David Hanson and Tony Carbajo, the owners/operators of TITLE Boxing, LLC, the world's largest distributor of boxi accessories. Together, they have created a formidable foe to unhealthy lifestyles. As the first three TITLE Boxing Clubs experienced phenomenal growth, the next natural step was to offer franchising opportunities. And maintaining the cohesiveness of TITLE Boxing Club's communications is a vital step in protecting the integrity of our public image as more clubs are introduced to neighborhoods in cities across the country. In fact, 15 franchises are targeted to open in the North Dallas market over the next two years. Understanding the Brand TITLE Boxing Club° is first and foremost a fitness club, offering innovative and effective total body workouts. The staff's number one goal is the health and wellbeing of each and every member who walks through any TITLE Boxing Club"' door. By following our Mission Statement, our staff will instill the seed to succeed in all TITLE Boxing Club Members. TITLE Boxing Club® will provide the premier weight loss and fitness club to people of all fitness levels. Results are guaranteed because all our staff pledge and commit to: • Promoting healthy lifestyles in a professional, friendly atmosphere within a clean, motivating environment. • Continuing education to keep abreast of the latest fitness, boxing and kickboxing techniques to incorporate into the innovative total body POWER HOUR workouts. • Cultivating relationships with TITLE Boxing Club® members by listening to their individual goals and observing their progress to make sure success is achieved Our formula for success is working. TITLE Boxing Club° opened its first club January 2, 2008. Our second location opened June 2, 2008, and our third opened January 2, 2009. Our first franchisee location opened on April 16, 2010, opening the door to more clubs hitting the nation. With each new member who experiences unbelievable weight loss success, more and more people want the chance to HIT IT HARD® at TITLE Boxing Club°, TITLE Boxing Club° members are: Professional women and stay-at-home moms 25-55 who live within a 5 to 10 mile radius of the club and: o Care about their appearance o Are looking to get fit and lose weight o Enjoy an active lifestyle o Have discretionary income Men 18 to 55 who live within a 5 to 10 mile radius of the club and: o Play organized sports o Care about their appearance o Want to be active and healthy o Have discretionary income Female and male members are NOT coming to TITLE Boxing Club` to fight or learn to fight. They come here to use the most innovative way to get fast weight loss results using tried and true boxing and kickboxing training routines with the POWER HOUR. Pal 'Ll JL- J N - . 1 0 TITLE Boxing Club Franchise Business Plan 1.1 Mission Statement 1.2 Keys to Success 2.1 Start-up Summary 3.1 Marketing Analysis 3.2 Marketing Strategy 3.3 Branding: 3.4 Market Trends 3.5 Target Markets 4.1 Expenses 5.1 Profitability 1 TITLE Boxing Club Franchise Business Plan 1.1 Mission Statement To enhance the quality of life in the communities and of the members we serve through our unique and innovative TEAM fitness philosophy. By offering a results driven, TEAM oriented, explosive total body workout through inspired boxing and kickboxing "POWER HOUR" fitness workouts, our members will foster the self- confidence needed to sustain fitness & health as an integral part of their everyday lives and achieve the results they are looking for_ 1.2 Keys to Success TITLE Boxing Club was started by retired professional boxer and promoter Danny Campbell, Kansas business man Tom Lyons and David Hanson and Tony Carbajo owners of TITLE Boxing, LLC, one of the world's largest distributors of boxing, kickboxing and MMA equipment, apparel and accessories.. The first TITLE Boxing Chub opened January 2, 2008 in Kansas City, MO as a result of an innovative workout idea fostered and developed by Danny Campbell that used traditional boxing and kickboxing techniques in a way that Men and Women from all health and fitness backgrounds could adapt to. The unique total -body workout class coupled with an energized environment soon began to inspire a following that found the POWER HOUR workouts to be anything but routine. More importantly, members began to raise their confident levels and view fitness and health as an everyday part of their lives, allowing them to achieve the fitness and health results that had previously eluded them due to gym and fitness center memberships that offered routine (boring), individualistic, and traditional methods of exercise and weight loss. The following keys to success are rooted in the business foundation and support of the TITLE Boxing franchisee and in those critical to customer satisfaction categories below which ultimately capture the voice of the customer in sped tic teens (meaningful and measurable) and helps to guide the business plan development and implementation. Critical to Satisfaction Categories I . Quality — It must be done right the first time 2. Delivery— It must be delivered when the customer rieeds it i. Cost— It must be something the customer will pay for 4. Safety — it must not cause injury or unsafe condition 1.2 Keys to Success 1. Obtaining initial capitalization. 2. Determine store location by: Target market demographics, population /traffic density, commercial landscape and accessibility 3. Development and strict execution of sales and marketing plan specific to local market. 4. Create and utilize sustainable training and support technology systems and processes to standardize and create efficiency in day to day business operations 5. Develop and implement `-capture" process/systen to receive regular customer feedback; Keep our finger on the pulse of the customer. 6. Ensure that Quality, Delivery, Cost and Safety are the basis for every business related decision 7. Provide the customer with a quality, unique and consistent experience every time. 8. Stay active in the community we serve and provide leadership and aid where and when value-added opportunities arise. 9. Create and embrace a learning culture so that we can educate and inform our customers and community of the evcr-changing health and fitness industry criterions and developments 10. Ensure that the working environment is based our respect for sel ['and others, a strong passion for what you do and compassion for people of all backgrounds (Inc. culture, race, gender, disability and sexual orientation). 11. Provide operational and sales training to all employees and measure their proficiency through evaluation and a constant improvement process/culture. Employees should be cross -trained to mitigate inefficiencies and gaps in service quality to the customer. 12. Participate in regular communication aid strategic planning with other franchisees in order to leverage "group knowledge" and successes. 13. Create an SOP for emergencies and train all employees and customers in the SOP so that emergency situations, if they occur, can be handled safely and responsibly. 14. Ensure that the decision -making process is clearly defined (in writing) and followed by all franchise ownership interests when business decisions arc made. 15. Maintain a clean and safe work environnrcnt/facility at all times. 2.1 Start -Up Capital Expenses (including 3 mos operational expenses) Franchise Fee Insurance Security Deposit Business Licenses Equipment/Furnishings/Fixtures Signage Meals and Entertairuncnt Miscellaneous Expense Office Supplies & Maintenance Prof Fees -Accounting Fees Inventory Starter Fits Apparel Utilities Telephone/Computers/Fax 3 Months Operational Cost Total Expenses $35,000.00 S 1;800.00 S5.000.00 S 1.500.00 $50,100.00 S5,000.00 S2.000.00 $2,000,00 $500.00 $600.00 $2,500.00 $2,500.00 $1,500.00 $75 000.00 $150,000.00 Example for New Franchise Locations Start -Ups fall are estimates) 4,000 to 5,000sf * New Franchise Location Start -Up Cost Details Leasehold Improvements: $0.00 - $24,000 — Assumed Property Owner Expense - Includes all construction, permit fees, IIVAC and Electrical Equipment/Furnishings/Fixtures: S50,100 - Includes all fixtures and Gym Equipment necessary for start-up. Delivery, contractor to install Rent: $0.00 - $5,000/rno tar first 3 months (Based on $12-$15/SF Gross (Tax, Utilities & Ins. included) - Includes potential For free rent and targets a lease -space that is 4,000 to 5,000 s'f (�4,! a cost of S12415 per sf gross 3.1 Marketing Analysis Iowa City, Iowa is strategically located in the center of the largest population region in the state of Iowa, attracting workers from a 60-mile radius. Iowa City/Coralville is one of the top 50 fastest growing areas in Iowa. Currently Iowa City's population is roughly 68,000 with neighboring populations of Coralville (19,597) and North Liberty (11,000). Since 2000, Iowa City has had a population growth of 7.04%, Coralville 29.49 %. and North Liberty 78.92%. In January of 2010 Iowa City, IA was named the "Healthiest City in America" in part based on the health conscious resident population that places a premium on a healthy life-style. Iowa City made the February 2010 issue Men's° Journal — by being named the `Wealthiest Town in the United States," based on a set of criteria established by Dr. Sanjay Gupta, the chief medical correspondent.for CNN. Dr. Gupta, it practicing neurosurgeon, traveled the world in search of dietary and eating habits, 1i festvles, exercise, and personal practices that contribute to a long life jor his Mind & Body article, "The CornpletelvDoable Guide to Living to I00."Tlis article of iraformrrtiora on the healthiest diets on earth, the importance oj'regular exercise and workouts, and how to "quietyour mind" to increase mental fiicus, reduce stress, and ultimately, live longer. Additionally, the median age of Iowa City 26.30 (college population), Coratville is 30.60 and North Liberty 31.30. 'the demographic profile of the larger Iowa City, Coralville and North Liberty area strongly represents the target market that Title Boxing Club is focused on. The target market customers of Title Boxing Club are men and women between the ages of 25-54, with an emphasis on the female market. This target market customer segment is looking for a different type of fitness club experience. Title Boxing Club wilt offer mton and women the cliance to burst up to 1,000 calories in an wn atchcd lass oriented, explosive total body boxing and kickboxing POWER 110(fR workout led by professional haincts. "I -he conihirimon of cltiss strut tare, team <Iwirovrllent and personal ttaniing", adleutivencss allow for a Liniqnc x pericncc that members can only get from Title Boxing Club. The approach is one tl ai yields inaasurablc icsults, which in scut develops a confidence in incnibers that did not exist in previous ci.civise:/hincss e;per<<rscs. Ilie Confidence that tc ,elk £om the title boxing Club experience cmpovveis the member to take control of their Fitness ant allows 4heril to begin to incorporate fitness into their cvcrsday live, in a wtiv that is fun sustainable, acid impaciful. The rrieniberprolile of Title, I3oxin- Club is, as diverse as the workout is and QaIwi.'s to people of all health backgrounds, sh apcs and ,ices, in part due trt the class en vironwient and pu rwiwl tr air inn feel (class instructor) which allows n.embers to feel as if ilicy arc a part o(' ,oiricfiiinu larocr thati themmetves and non -isolated as they often feel in traditional club environments that offer a member - driven workout environment Nvith little to no structure. Over time, members become the best source ot-marketing, and advertising as they pro actively begin to share their positive experience within the conumunitiea they live and work in. Often times their %veight-loss alone setnes as the instigatct' of cony ersalion regarding their success and how they achieved it, which in turn perpetuates " hie Boxing Clubs i[mige and serves as a strongest marketing tool ofall. 3.2 Marketing Strategy Radio - AccountAbility Nlarketing specializes in endorsing radio campaigns for Title Boxing Club franchise owners. Their specialized services are used to execute endorsement radio campaigns in each targeted demographic area. The following services are provided: • Thoroughly research the interested market demographics vs. our business target demographic • Travel to each potential market to establish media partners • Negotiate and place media buys using approved budgets per market • Negotiate acid increase the media vendors supply of added value; consisting of bonus commercials and digital station websitepresence to enhance the advertising campaign • Negotiate merchandise for TITLE Boxing Club owners to use as internal incentive where possible • Conceptualize and execute media vendor promotions to increase brand awareness in the community • Develop radio commercial copy points for the personalities to utilize when creating endorsement commercials • Conceptualize and execute media vendor promotions to increase brand awareness in the community • Develop radio commercial copy points for the personalities to utilize when creating endorsement commercials • Obtain, review and store all commercials • Provide the radio personalities feedback on their commercials with ways to improve the message and keep it fresh • Conduct personal "coaching calls" with the radio disc jockeys to give them one-on- one coaching for endorsement commercials • Monitor all station's airchecks daily to be sure that the correct delivery and content are being included • Invoice reconciliation to confirm the media buys that were placed were run and billed as ordered • One monthly advertising invoice Title Boxing Club Lavered Nlarketing Approach • Traditional Media (Radio/Television) • Business to Business • Public Relations • Title Boxing, LLC. Marketing Database • Promotions • Electronic Marketing • News Outlets • Guerilla Marketing • Events Traditional Media • National Advertising Fund • Local Radio • Local Cable • Local Magazines Business to Business • Corporation Promotion • Health & Wellness Programs • Local Business Flyers/Coupons Public Relation • Charity Events o Battered Women Shelters o Breast Cancer o Diabetes o Pet Adoption Title Boxing, LLC Marketing Database • Dist. List of over 250,000 subscribers • Email Potential Members by Lip Cod • Direct Mail (for additional fees) Promotions • "First Shot Free' • RCSuItS Guarantee • Referral Program o %2 Howr Free Personal Training o One Month Free • Pro -Opening o Zero Enrollment Fee n Electronic Marketine • Title Boxing Club Website o Centrally Maintained with Club (location specific) Information • Social Media o Facebook o Twitter o Linl edIn • E-Marketing Newsletter o Local Business o Active Members o Title Boxing, LLC. Mailing List • Search Engine Optimization News Outlets • "TV • Radio • Newspaper • Local online Websites Guerilla Marketint • Point of Sale • Community Fvents • Live Radio Remote Broadcasts • College Sporting Fvents/Social Events • Local Business/HR Calls Events • Customer Appreciation Days • Local Networking Events o Shopping Sprees o Sporting Events o Charity Events Balance Media Budget to 3 Categories 4Q 2012 — 50% Store Branding and Awareness 25% Weight Loss 25% Promotions S 1 Q 2013 — 60% Weight Loss 25% Promotions 15% Store Branding and Awareness 2Q 2013 — 60% Weight Loss 25% Promotions 15% Store Branding and Awareness 3Q 2013 —40% Weight Loss 35% Promotions 25% Store Branding and Awareness 4Q 2013 — 35% Weight Loss 3 5 % Promotions 30% Store Branding and Awareness 1 Q 2014 — 60% Weight Loss 25% Promotions 15% Store Branding and Awareness 2Q 2014 — 60% Weight Loss 25% Promotions 15% Store Branding and Awareness 3Q 2014 40% Weight Loss 35% Promotions 25% Store Branding and Awareness 3.3 Branding: The brand of TITLE, Boxing is the nation's leading boxing, kickboxing and MMA gear provider in the country and world. We will leverage this already established brand awareness into our TITLE Boxing Club through advertising, sourcing of trainers and though direct marketing to their catalog recipients. TITLE Boxing Club is a non-traditional fitness experience that will changes lives through an unmatched team environment resulting in fast, yet attainable results that create a feeling of confidence and empowerment in our members. 3.4 Market Trends The Gym, Health and Fitness Clubs industry is expected to remain in a growth phase, with revenue expected to rise at an average annual rate of 2.6% to $28.2 billion in the five years to 2016, 9 according to IBISWorld, the nation's largest publisher of industry research. During this period, demand is expected to improve as the US economy stabilizes and unemployment declines. Gym membership numbers have increased considerably over the past 10 years, rising from 36.3 million in 2002 to more than 42.8 million by 2011. This trend has resulted in soaring demand for fitness activities, and industry operators have capitalized on this growth by expanding establishments in both size and number. However, the industry has not been recession -proof. In 2008 and 2009, demand for gyms and health Clubs weakened as consumers cut back on discretionary spending. But compared with other industries, the Gym, Health and Fitness Clubs industry has remained remarkably resilient, as increased leisure time and boosts in health and morale from exercise have kept the industry highly competitive. The downturn has favored the growth of small -budget gyms with fewer amenities over more expensive, all-inclusive clubs. In fact, many smaller operators have expanded over the past two years despite the economic climate. Overall, industry revenue is expected to grow at an average annualized rate of 1.7% to 824.8 billion over the five years to 2011, including growth of 2.3% in 2011. According to IBiSWorld analyst, Mary Gotaas, over the next five years, the industry will benefit from increased youth and baby boomer memberships. "Revenue will expand at an average annualized rate of 2.6% to $28.2 billion over the five years to 2016," says Gotaas. "Firms will profit from growing interest in staying fit, and the industry will transition toward larger and all-inclusive clubs." With total health club memberships expected to reach 47.5 million in 2016, players will capitalize on this growth and provide members with additional services in a bid to increase registration and retention rates. 4.1 Expenses (by month/1st year) - See Attached Exhibit A 5.1 Profitability (3 year revenue projection) - See Attached Exhibit B S e 8 F ll� o Ix o - _ 8 Exhibit B MEMBERSHIP COST STRUCTURE Paid in full members pay $49 per month x 12 months = $588.00 If members want to pay their membership by month, they can chose from the following: 1 year contract = $69 per month 2 year contract = $59 per month 3 year contract = $49 per month Enrollment fee = $99 Revenue Stream Types: Club Memberships Personal Training Merchandise Sales 3 YEAR REVENUE PROJECTION Location of Club Ilowa City, Iowa Address: TBD Target Open Date 2012 Year Ended Year 1 Year 2 Year 3 Membership $ 279,181.00 $ 432,330.00 $ 515,502.00 Merchandise Sales $ 23,880.00 $ 25,385.00 $ 24,588.00 TOTAL SALES $ 303,061.00 $ 457,715.00 $ 540,090.00 TOTAL EXPENSES $ 342,272.00 $ 360,572.00 $ 350,072.00 GROSS PROFIT $ (39,211.00) $ 97,153.00 $ 190,018.00 Contracts Sold Month 1 100 16 8 Contracts Sold Month 2 85 16 8 Contracts Sold Month 3 55 16 8 Contracts Sold Month 4 40 16 8 Contracts Sold Month 5 30 16 8 Contracts Sold Month 6 30 16 8 Contracts Sold Month 7 30 16 8 Contracts Sold Month 8 30 16 8 Contracts Sold Month 9 30 16 8 Contracts Sold Month 10 30 _ 16 8 Contracts Sold Month 17. 301 16 8 _ Contracts Sold Month 12 301 16 8 Active Contract at Year End 520 712 808 Percentage of Active Contracts Paid in Full at Year Fnd 20% 20% 20% Ul salev E O O O O O O O O N v m w W O N O w ON m M� DDZ J A " Zmrn Opening Day Balance Sheet Enter your Company Name here Assets Current Assets Cash in Bank Inventory Prepaid Expenses Other Total Current Assets Fixed Assets Machinery & Equipment Furniture & Fixtures Leasehold Improvements Real Estate / Buildings Other Total Fixed Assets Other Assets Specify - Security Deposit Specify Total Other Assets Total Assets Liabilities & Net Worth Current Liabilities Accounts Payable Taxes Payable Notes Payable (due within 12 months) Current Portion Long-term Debt Other current liabilities (specify) Total Current Liabilities Lono-term Liabilities Bank Loans Payable (greater than 12 months) Less: Short-term Portion Notes Payable to Stockholders Other long-term debt (specify) Total Long-term Liabilities Total Liabilities Owners' Equity (Net Worth) Total Liabilities & Net Worth $ 151,840 5,000 3,300 4,000 $ 164,140 43,000 1,500 $ 44.500 $ 5,000 $ 5,000 $ 213,640 $ 5,850 26,003 $ 31,853 $ 156,088 (26,003) $ 130,085 $ 161,938 $ 51,702 $ 213,640 You may want to print this information to use as reference later. To delete these instructions, click the border of this text box and then press the DELETE key. A balance sheet shows the financial position of your company at a single moment in time; in this case, it wil be as of opening day. Use your Startup Expenses spreadsheet to get the basic data for the balance sheet. Here are some accounting rules which will help you construct an accurate balance sheet: Assets are recorded at the lower of cost or current market value. Since your assets will be newly acquired, put them down at cost. If you have donated personal possessions to the business (e.g., a vehicle), enter them at market value. Prepaid Expenses are items like insurance premiums which you have already paid but have not yet "used". Other Assets are intangible items like patents and trademarks which are presumed to have economic value. It is very unlikely that you will have significant Other Assets as a new business. You should also include here items like lease and utility deposits. Current Liabilities are any debts due within twelve months. Trade payables and bank lines of credit are current liabilities. If you have a Long Term (multi year) Debt, then that portion of it which is payable over the next twelve months goes in "Current Portion of Long Term Debt". The remaining portion of that debt then goes in the "Bank Loans Payable (greater than 12 months)" section under Long Term Debt. ers' Equity is what is left when you subtract lities from Assets. It will be less than you have ally spent on starting your business. That is fuse many of your pre -opening expenses do not It in ownership of assets which show on a balance t. For example, advertising, travel, and legal fees be necessary, but they do not generate balance t assets. r it.� CITY OF I O WA CITY ' MEMORANDUM To: City Council Economic Development Committee From: Wendy Ford, Economic Development Coordinator Date: 5/16/2012 Re: Agenda item #4 Review and Discussion of Urban Renewal Areas and TIF Districts The City Manager's Office has requested staff provide an overview for the Economic Development Committee of the life of Iowa City's TIF districts, all of which are shown on the map below. On the table following, you will find details about the establishment of each of the Urban Renewal Areas, TIF areas within, if applicable and the life of each project within those districts. You will note in the second row under each urban renewal area (or amended area) is the basis for why each area was established. If the area is based on Economic Development, the TIF district sunsets after 20 years of TIF revenue collection. The 20 year limit for Economic Development -based districts begins the first year of TIF revenue collection within that district. For districts based on slum and/or blight, there is no time limit to which cities are limited in using TIF revenues. Please feel free to call with any questions. We will review this information at your meeting on May 22. Cdydlmvn Illy CommetieVlnen9nel Tax Increment Financing Districts 6 _ -- - _ Property Tax Exemption Areas I � PaP.m raa ea•mPllon a.as � I I iI Ace�em wamma ddnc e NDm SomlumD [amnudm 1. I _ R.d. C Nem 6omhslOO el _ 0 g 999868HS89. �B99C902 BBfi966� —. o0 T. lncr. [FI pw54IDk I HERBCT Red eeeo f i CYI ..N Pnn. I. J(MIt �YPo� 51 10.8 MY1. 6. }110. _ •�.. iil O��n JI 6 IndstralP Rwd 00 p EL f .� O) H I fio D..ilOi i. rH Co Dial Vba R ie.vel Froµ 2.b \f �DM -. UlviiV l_ U1U V , l 7 11 Rvemde Dnve. 2011 Urban Renewal Areas in Iowa City, P. 7 of 3 Name of Urban Renewal Scott Six Industrial Northgate City -University Project l Area Park Corporate Park Date Urban Renewal Plan 10/2/1969 7/29/1997 4/6/1999 Adopted Basis for URA (slum, blight, Blight * No ordinance was passed for the Economic Economic eco dev) 1969 Original City -University Urban Renewal Area (URA) until the URA Development Development Resolution Number 2157 was amended in 2001 to add 97-255 99-111 additional land. Ord. 01-3991 was 7/29/1997 5/4/1999 Date of TIP Ordinance 12/11/2001 passed at this time. Debt was certified on 11/25/2003, which set the base for both the 1969 Original Ordinance Number 01-3991 Area and the 2001 Amended Area as 97-3796 99-3879 1/1/2002. The 1969 Original Area, designated as blight, has no sunset; the 2001 Amended Area, designated 1. 7/16/2002 (Plaza Towers) as economic development, has a 2024 sunset. The TIT agreement 7/31/2001 (Mercer - Date of TIF Agreement 2. 6/16/2009 (walkway pro.) signed 7/16/2002 (Plaza Towers) 7/31/2001 (Owens- formerly 3. 5/3/2011 (118 E. College) was for property located in the 1969 Brockway) Seabury & Smith) 4. 4/3/2012(114 S. Dub'q St.) Original City -University URA. Expiration of TIF Agreement 1.6/1/2010 6/1/2009 6/1/2011 1.02-253 Resolution Number 2. 09 2-04 07.-2-37 01-236 3. 11-163 4. 12- 154 Date tat certified debt 11/25/2003 12/1/2002 12/1/7002 Date Base Value Established 1/1/2002 1/1/2001 1/1/2001 Expiration of TIF for Original N.A (based on blight, no sunset) 2023 2023 Area AMENDMENTS projected for 2012 Date URP Amendment 11/13/2001 Riverfront Crossings 8/2/2011 1/4/2005 Adopted area Basis for Amendment Economic Blight Economic Economic Development Development Development Resolution Number 01-366 11-260 05-11 Date of TIF ordinance for 12/11/2001 1/18/2005 amended area Ordinance Number 01-3991 OS-415O Date of TIF Agreement Resolution Number Date tat Certified Debt for N.A. (debt already N.A. (debt already 11/25/2003 certified on orlgi nal cert lfled on original Amended Area area) area) Date Base Value for 1/1/2002 1/1/7004 Amended Area Established Expiration of TIF for Amended Area 2024 2026 updated May, 2012 Urban Renewal Areas in Iowa Cityr P. 2 of 3 Name of Urban Renewal L. Muscatine Rd. & Industrial Park Sycamore &First Avenue Help, Road Area Highway6 Rd. Date Urban Renewal Plan 8/15/2000 5/21/2002 5/21/2002 5/21/2002 Adopted Basis for URA (slum, blight, Economic Development Economic Economic Economic Development eco dev) Development Development Resolution Number 00-295 02-193 02-194 02-195 Date of TIF Ordinance 9/19/2000 //2/2002 7/2/2002 7/2/2002 Ordinance Number 00-3947 02-4024 02-4025 02-4026 1. 9/19/2000 (Sycamore 1. 3/19/2003 (Alpla 41) Date of TlF Agreement Mall) 2.7/01/2003(UNF) 2. 9/10/2002 (Plamor) 3. 8/21/2007 (Alpla 42) 1. 6/1/2010 1. 6/1/2010 Expiration of TIF Agreement 2. 6/1/2011 2 6/1/201 3. 6/1/2014 1. U3-89 00-32 Resolution Number 03-205 Z. 02-318 3 3. 07-25050 Date 1st certified debt 12/1/2001 11/30/2004 1/1/2003 (Alpla N1) Date Base Value Established 1/1/2000 1.1112007 (Alpla 42) Expiration of TIF for Original 2022 2025 Area AMENDMENTS Date URP Amendment 6/24/2003 Adopted Basis for Amendment Economic Development Resolution Number 03-157 Date of TIF ordinance for 6/24/2003 amended area Ordinance Number 03-4090 Date of TIF Agreement Resolution Number Date ist Certified Debt for N.A. (debt already certified on N. A, (debt already certified on Amended Area original area) original area) Date Base Value for 1/1/2002 Amended Area Established Expiration of THE for Amended Area 2024 updated May, 2012 Urban Renewal Areas in Iowa City, p. 3 of 3 Name of Urban Renewal Highway 6 Moss Green Towncrest Riverside Drive Area MAP NUMBER 8 9 F 11 Date Urban Renewal Plan 5/20/2003 4/27/2010 12/7/2010 101181201.1 Adopted Basis for URA (slum, blight, Economic Economic Economic Blight eco dev) Development Development Development Resolution Number 03-158 10-137 10-509 11-335 Date of Tl F Ordinance 6/24/2003 6/1/2010 10/18/2011 4/3/2012 Ordinance Number 03-4091 1D-4394 11-4454 12-4471 8/19/2003 Date of TIF Agreement (Pepperwood) Expiration of TIF Agreement 6/1/2013 Resolution Number 03-276 Date 1st certified debt 11/30/2004 Date Base Value Established 1/1/2003 Expiration of TIF for Original Area 07.5 AMENDMENTS Date URP Amendment Adopted Basis for Amendment Resolution Number Date of TIF ordinance for amended area Ordinance Number Date of TIF Agreement Resolution Number N, A. (debt already Date 1st Certified Debt for certified on original Amended Area area) Date Base Value for Amended Area Established Expiration of TIF for Amended Area updated May, 2012