HomeMy WebLinkAbout07-30-2013 Council Economic Development CommitteeAGENDA
City Council Economic Development Committee
Tuesday, July 30, 2013
8:00 a.m.
City Manager's Conference Room
City Hall
1. Call to Order
2. Consider approval of minutes from June 11, 2013 Economic
Development Committee meeting
3. Consider a recommendation to provide a CDBG Economic
Development loan to Came Van Orden for Max Effect... a Spinning
and Fitness Studio
4. Consider a recommendation for funding the Creative Corridor Project
5. Staff time
6. Committee time
7. Other business
8. Adjournment
EDC June 11, 2013 1
PRELIMINARY
MINUTES
CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
JUNE 11, 2013
CITY MANAGER'S CONFERENCE ROOM, CITY HALL, 8:00 A.M.
Members Present: Susan Mims, Michelle Payne, Matt Hayek
Staff Present: Wendy Ford, Tracy Hightshoe, Jeff Davidson, Tom Markus
Others Present: Andre Perry (Englert); Bill Thomason (Englert); Polly Morris
(Englert)
RECOMMENDATIONS TO COUNCIL:
Payne moved to defer the Englert funding request addition until budget
considerations. Hayek seconded the motion. Motion carried 3-0.
Hayek moved to recommend to the full City Council the recommendation of
Amendment #1 to Moss Green Urban Village Urban Renewal Area. Payne
seconded the motion. Motion carried 3-0.
CALL MEETING TO ORDER:
The meeting was called to order by Chairperson Mims at 8:05 A.M.
WELCOME AND INTRODUCTIONS:
Chairperson Mims welcomed everyone and asked those present to introduce
themselves for the minutes.
CONSIDER APPROVAL OF MINUTES:
Mims asked if there were any comments, changes, etc., to the April 17, 2013, minutes.
Payne moved to approve minutes from the April 17, 2013, meeting as submitted.
Hayek seconded the motion.
Motion carried 3-0.
Wendy Ford introduced the topic noting that Members have a memo from her and an
annual report from Englert staff in their meeting packets. She noted Andre Perry,
Executive Director of the Englert Theater, is present to review his report with the
committee. Ford began by giving some history of the relationship between the City and
Englert, noting that in 2008 the Englert came to the City and requested operational
funding. At that time, the Economic Development Committee approved a three-year
EDC June 11, 2013 2
PRELIMINARY
funding of $50,000 per year. With that, the Englert would be required to present an
annual report on agreed upon metrics prior to each funding disbursement.
Ford continued, noting that with this year's report and request for Fiscal Year 2015
budget considerations, the Englert is requesting an increase in funding from $50,000 to
$70,000. In a brief overview, she noted that the Englert has done well over the past five
years. One of the biggest successes is a 25% increase in the size of their operation.
They are now operating with more than a $1 million budget and have not had a deficit in
two years. Fundraising, friend raising, and donations have all grown under Perry's
leadership, according to Ford. The increased amount that the Englert is requesting will
go towards several things, but chiefly, on -going capital improvements. The age of the
Englert presents challenges as there are on -going capital expenses in any building,
especially, a building this old. The Englert has also added summer programming.
Although this has added additional expenses, these summer programs have proven to
be financially successful for the Englert. Ford noted that this is a primary driver in the
Englert's operational growth.
Perry addressed the Members and reviewed the Englert's annual report. He stated that
the Englert continues along the path to financial stability. This past year was the
Englert's 100'" year of operation, and he believes the Englert will continue to grow as an
institution in downtown Iowa City. Perry then asked Bill Thomason to review the
Englert's financial standing. Thomason stated that they expect this to be the third year
in a row of profitability, as they look at a 31% increase in top -line growth. Along with this
growth, however, comes an increase in costs.
Perry pointed out recent attendance numbers, and noted that in 2009 there were about
30,000 attending Englert programs. This number reached 53,000 in 2012. Attendance
is projected to reach the 60,000 mark in the near future. Most of these attendees live in
Johnson County. There are several venues that will be competing for business,
including the University's new performing arts buildings coming back online and Cedar
Rapids' U. S. Cellular Center and the Paramount Theater.
Speaking more directly about reasons behind the need for a funding increase,
Thomason noted that capital expenditures can be very expensive, especially items such
as an HVAC system, now nearing the end of its customary lifespan. The Englert's
marquee is another capital expenditure needing special attention and will also be an
expensive project. To find ways to increase revenue in order to cover such expenses,
the Englert added a summer season last year and continues it this year. In 2010 and
2011, the summer events brought in approximately 1,000 people. In 2012 this number
jumped to 5,638 people coming for summer programs.
The discussion continued, with Perry noting that they continue to provide deep discounts
to non -profits using the theater to host their own fundraisers. He shared several of the
events held at the Englert, noting the partnerships they have been forging within the
community. Another strength for the Englert is their staff. It was noted that currently
they have a very strong team in place, one that works well together. Keeping this type of
smart, innovative talent will be key to the Englert's success.
Mims thanked Perry and Thomason for their presentation, adding that the improvements
in attendance are tremendous. Mims asked about the length of the Englert's mortgage.
EDC June 11, 2013 3
PRELIMINARY
Perry noted it is a 25-year mortgage with a current balance of $359,000. A second piece
of their debt is a five-year note with the credit union with an existing balance of $98,000.
Mims stated that this is a challenging time for the Council as it looks at its upcoming
budget and the looming changes from State property tax reform. She added that if these
things were not hanging out there, she would be behind this request all the way.
However, with the timing of the request and the uncertainty of the future budget, she
does not believe that they can recommend this request to the Council at this time. Mims
stated that she certainly does support the Englert, but until the Council has time to
prioritize its goals in light of the budget cuts, she does not see a way to recommend an
increase.
Hayek said he echoes Mims' sentiments. He did note that the request is for a
placeholder for the amount, which would be reviewed, and could be altered in the budget
preparation process. Markus added that the money they work with for such requests
does come from property tax revenues. Payne stated that she agrees with the other
Members, that this is a great investment for the City to make, but that until they have
time to review the new budget projections, approving an increase should wait. All of the
Members noted that they are very supportive of the Englert Theater, but they cannot
recommend an increase funding yet.
Ford clarified the timing, noting that $50,000 was approved in the FY14 budget, and, at
this time last year, Council approved their intent to fund $50,000 for both FY15 and
FY16. Mims asked other Members if they were comfortable deferring this
recommendation to the full Council at this time. Markus stated that his advice is to wait
until they have time to review the budget documents. Members continued to discuss
how to handle this request in light of budgetary restrictions. Markus pointed out how the
theater attendance does affect other businesses downtown. He added the suggestion
that if they do grant the additional $20,000 to the Englert that they require that it be used
for something specific — such as for capital expenditures. Mims noted that the Englert
now has a full-time development person. She asked what the Englert's plans are in this
area and how they plan to build their donor base.
Hayek noted that he would definitely support funding at the $60,000 to $70,000 level for
the Englert. He believes the case has been made that there are direct benefits to the
City of Iowa City in providing this support. However, due to the difficult situation they
find themselves in currently, as well as some of the "hot button" topics they face right
now, he believes they need to revisit this once they have a clearer picture of the budget.
Payne agreed, adding that they also need to look at the fact that having a vibrant Englert
means having a vibrant downtown. She too, believes they need to revisit this request
once they have a better idea of the upcoming budget. Mims agreed, as well, noting that
with Bockenstedt's recent report, it is obvious that the City will see plummeting revenues
from property taxes, which is where they draw funding for such requests. She would be
supportive of the $70,000 request; however, until they know what these changes with
State legislature mean, they just cannot approve such an increase.
Payne moved to defer the Englert funding request addition until budget
considerations.
Hayek seconded the motion.
EDC June 11, 2013 4
PRELIMINARY
Motion carried 3-0.
Ford noted that the State now requires that any project taking place within an urban
renewal area that may request or require public financing must be amended into the
urban renewal plan. This Resolution of Necessity will start the legislative process to
allow new projects to happen within the Moss Green Urban Village urban renewal area.
She added that this area is now also referred to as the Moss Ridge urban renewal area.
The amendment to the plan allows for a development agreement for the construction of
Moss Ridge Road from Highway 1 into the development. The road requires that the City
purchase a small piece of Pearson's property over which a portion of the road will be
constructed. The road will then allow future office park development to occur for which
there may also be development agreements for Council's future consideration.
Hayek moved to recommend to the full City Council the recommendation of
Amendment #1 to Moss Green Urban Village Urban Renewal Area.
Payne seconded the motion.
Motion carried 3-0.
��1/_1y�IarlJ�l�
Davidson shared with Members some update information. He stated that he has
recently heard from developers of some of the larger projects in the area that their pre -
sale leases and sales are going very well. Park at 201 is currently about three quarters
leased or sold out in residential units, as is the SoDo project. Both of these projects are
considered to be non -student housing, according to Davidson. The project south of
Burlington Street, by the railroad tracks, has been delayed until possibly July. Davidson
also noted an increased interest in the old St. Pat's school site. He stated that they are
looking at putting something together to present to the Council. Another item that
Davidson shared is the University's hope to put out an RFP after the July Regent's
meeting for a new art museum. This facility would be off campus, and is hoped to be a
public/private partnership.
Ford then spoke to Members, stating that they have had two recent requests from a local
companies seeking public assistance. One company currently has five employees and
plans to grow to 80, but is short on working capital to fund the growth. They currently
lease property and choose not to put their business resources funds into a building, but
rather into funding their growth. She noted that typically the City considers requests for
funding based on a company's ability to add to the property tax base. However, staff
would like a policy to aid in the consideration of funding for businesses that do not own
their property. Staff believes that having a policy in place could benefit smaller start-up
companies that chose not to own property, but may still worthy of City assistance.
Funding of this sort would help them to continue to grow within the community and could
help ensure that they remain in Iowa City. Davidson added that this is a very
competitive area in the community, that neighboring municipalities do offer such
programs to businesses. Markus noted how tricky this type of funding can be, adding
that the difference between leasing and owning for a business is the difference in
EDC June 11, 2013 5
PRELIMINARY
commitment to a community. He further clarified his view on this issue, giving Members
some incentivizing examples.
COMMITTEE TIME:
Payne asked about the local option sales tax, and whether, if renewed, funds could be
used for economic development. Markus stated that he would have to verify, but
believes they can dedicate it to whatever use they want. This led to a brief discussion
that property tax relief, as opposed to economic development, would be the most
palatable use of a local option sales tax.
OTHER BUSINESS:
None.
ADJOURNMENT:
Payne moved to adjourn the meeting at 9:05 A.M.
Hayek seconded the motion.
Motion carried 3-0.
EDC June 11, 2013 6
PRELIMINARY
Council Economic Development Committee
ATTENDANCE RECORD
2012 - 2013
TERM
o
o
o
NAME
EXP.
' N
a
'
N
V
Michelle
' 01/02/14
X
X
X
Payne
i
Matt
01/02/14
X
O
X
Hayek
/E
Susan
01/02/14
X1
X
X
Mims
i
Key:
X = Present
O = Absent
O/E = Absent/Excused
INITIAL REVIEW OF MAX EFFECT
WORKING CAPITAL
Business Proposed:
Max Effect is a new spinning and fitness studio. The business will be located at 1012
Gilbert Court and plans to open this September. The studio will include spinning space
(capacity up to 80 bikes), fitness studio and limited child care. Services include
spinning, personal training, weight loss activities, aerobic workouts, stability training,
pilates, weight lifting, small group exercise and Advocare (nutritional) products for sale.
The studio will be open Monday through Saturday 5:45 AM to 7:45 PM. The studio will
be owned and managed by owner Carrie Van Orden. The owner will create a LLC this
January, until then the business will be operated as a sole proprietorship. The owner is
currently a personal trainer and group exercise instructor for the University of Iowa
Recreational Services. Financial assistance is requested for working capital.
Budget & Private Financial Contribution
The applicant estimates start-up costs of up to $213,000. Applicant secured a SBA loan
commitment of $135,000 through Hills Bank that requires a $50,000 cash injection of
funds through private investors and/or CDBG funding. Owner will provide owner equity
of $20,000. The private lender will secure their loan through a UCC statement on all
business assets, SBA guaranty and unlimited guarantee of the owner. Applicant has
negotiated a ten-year lease with an option to buy at the 5t" year. After 10 years, it would
be on a month to month basis. Applicant requests $30,000 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) and within the Riverfront Crossings neighborhood. No rezoning
is necessary. CITY STEPS notes a high priority for micro -enterprise assistance. Owner
anticipates the business will open with five or fewer employees, but hopes to grow in the
near future.
Quality of Jobs
The applicant anticipates hiring approximately 2.8 FTEs initially. In addition to her full
time position as manager/instructor, she hopes to initially hire a full-time receptionist, a
part time day care supervisor and part-time personal trainer. Consultants will be utilized
for accounting, payroll, legal, and class instruction.
Economic Impact
The proposed CDBG funds will provide a small, woman owned business 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
The business plans to support local charities through two rides per year. The business
uses LED lighting and will have a bottle filling station to reduce plastic bottle waste.
Staff Recommendation:
The owner's lender and the University of Iowa Small Business Development Center
(SBDC) reviewed the business plan and financial projections. The lender and SBDC
both felt the business plan was very thorough and projections realistic. Paul Heath,
SBDC, stated if lower sales than projected, the business should be able to break even.
July 2013
Both entities were impressed by the owner's following and ability to attract clients.
Discussed the owner's credit history with her lender. In lender's opinion, the owner has
made significant progress in repairing her credit and recommends approval of the loan.
The efforts she has made to clean up her credit recently are not immediately shown in
her credit score.
Staff recommends a $30,000 loan (with monthly payments) for working capital with a
maximum term of 7 years at 0% interest contingent upon the applicant securing a private
loan of $135,000 and investor investment of $20,000. Staff recommends as a condition
of the award the business is evaluated by the SBDC. Any technical assistance
necessary would be based on an evaluation by the SBDC. For partial security, staff
recommends a lien on the applicant's personal vehicle and a personal guarantee by the
owner. Hills Bank will have the first lien on all business assets.
July 2013
Iowa City CDBG Economic Development Funds
I r
CITY OF IOWA CITY
Application for Business Financial Assistance
Business Requesting Financial Assistance:
Individual CARRIE VAN ORDEN
Home Address 801 19 AVENUE, CORALVILLE, IA 52241
Name of Applicant Business MAX EFFECT ... A SPINNING & FITNESS STUDIO
Full Street Address of Business 1012 GILBERT COURT, IOWA CITY, IA 52240
Phone Number & Email Address 319-631-1586 /cvanorden@gmail.com
DUNS Number (If awarded funds, applicant must obtain a DUNS number):
Type of Business SPORTS AND RECREATION INSTRUCTION
Date Business Established 06/06/2013 (REGISTER TRADE NAME WITH JOHNSO -COUNTY
RECORDER, IOWA CITY, IOWA
Commercial Lender's Name, Address and Contact Person's Phone and Email Address:
HILLS BANK & TRUST COMPANY, 1009 2"d STREET, PO BOX 5820, CORALVILLE, IA 52241
BRAD LANGGUTH, SENIOR VICE PRESIDENT, COMMERCIAL BANKING
PHONE) 319-358-6155 CELL) 319-330-3107 FAX) 319-351-2529
www.hillsbank.com
brad lanaauth@hillsbank com
Current residency status (please check one):
X U.S. Citizen or Permanent Resident Alien
❑ Other
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 7/6/2012
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:
MAX EFFECT IS AN UP AND COMING STUDIO IN AN ENERGIZED ATMOSPHERE WITH
VARIOUS LIGHT AND MUSIC SETTINGS. THE STUDIO IS A GREAT WAY TO GET A
WORKOUT, ALLOWING FOR TRAINING DURING THE ON AND OFF SEASON. VARIED
ROUTINES ARE OFFERED TO KEEP THINGS NEW AND DIFFERENT. THE BUSINESS
PROVIDES A COMPLETE LIFESTYLE EXPERIENCE INCLUDING INDOOR CYCLING, TOTAL
BODY TRAINING, CORE STRENGTHENING, AND COMMUNITY SUPPORT ALONG WITH
EDUCATIONAL AND NUTRITIONAL MATERIALS. INTENSE CLASSES COORDINATED TO
MUSIC OFFER EXCELLENT MENTAL AND PHYSICAL CHALENGENS ALONG WITH HEART
PUMPING WORKOUTS. THERE WILL BE SWEAT DRIPPING OFF BODIES WITH
INCREDIBLE REWARDS.
1.2. Provide a brief history of your company:
THE BUSINESS IS THE FIRST "INDOOR CYCLING STUDIO" LIKE THIS IN IOWA CITY. IT
HAS BEEN CREATED IN RESPONSETO THE TREMENDOUS SURGE OF POPULARITY
RELATED TO THE FASTEST GROWING GROUP EXERCISE CLASS IN NORTH AMERICA,
SPECIFICALLY PLANNED TO MEET THE INCREASING DEMAND IN THE LOCAL MARKET.
INDOOR CYCLING IS NOT NEW TO THE IOWA CITY AREA — IT HAS BEEN AROUND IN
SOME FORM OR ANTHOTHER SINCE THE 1980s. A SPIN / FITNESS STUDIO IS A GREAT
BUSINESS WHEN DONE RIGHT. INTRODUCTION OF A SPINNING STUDIO IN A COLLEGE
TOWN SUCH AS IOWA CITY OFFERS EVEN MORE PERKS.
MAX EFFECT IS ONE OF MANY NEW BUSINESSES THAT WILL BE OPENING THEIR DOOR
TO THE HOUSEHOLDS OF IOWA CITY AND SURROUNDING COMMUNITIES; TO A WIDE
RANGE OF INDIVIDUALS AND THEIR FAMILIES. THE BUSINESS WILL BE OPEN YEAR
ROUND TO AVID ENTHUSIASTS SUCH AS THOSE WHO PARTICIPATE ANNUALLY IN
RAGBRAL THE BUSINESS WILL BE LOCATED IN THE HEART OF THE IOWA CITY RIVER
FRONT CROSSING DISTRICT MASTER PLAN, PART OF THE TEN YEAR BEAUTIFICTION
PROGRAM.
1.3. Describe the organizational structure of the business:
MAX EFFECT IS NOT A FRANCHISE. INSTEAD INCEPTION HAS INCURRED OUT OF
SWEAT EQUITY AND THE NATURAL DESIRE TO EMPOWER AND TO CHANGE. THE
INITIAL PLAN WAS TO BE A SOLE PROPRIETOR UNTIL JAN 1, 2014 THEN TO
RESTRUCTURE INTO A LIMITED LIABILITY COMPANY. AFTER WORKING CLOSELY WITH
THE ACCOUNTING FIRM IT HAS BEEN DECIDED TO INCORPORATE, TO SET UP AS A
SUB-S CORPORATION FROM THE BEGINNING.
1.4. Management
(Proprietor, partners, officers, directors, all holders of outstanding stock, 100% of
ownership must be shown) THE BUSINESS IS SOLELY OWNED AND OPERATED BY
CARRIE VAN ORDEN WHO WILL BE THE MANAGER OF THE FACILITY
Name & Positionmtle
Complete Address
%
Owned
Revised 716(2012
CARRIE VAN ORDEN 801 191HAVENUE 100%
CORALVILLE, IA 52241
Attach a brief description similar to a resume of the education, technical and business
background for all the people listed under Management.
THE OWNER'S RESUME IS INCLUDED IN THE BUSINESS PLAN. THE BIOS INCLUDES
ALL CERTIFICATIONS THAT HAVE BEEN OBTAINED BY THE OWNER
1.5. Will the project involve a transfer of operations or jobs from any otner 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.
THE OWNER HAS BEEN EMPLOYED BY THE UNIVERSITY OF IOWA
RECREATIONAL SERVICES. ONCE THE BUSINESS IS OPEN IT IS HOPED THAT
MANY MEMBERS WOULD TRANSFER THEIR SERVICE FROM THE U OF IA TO MAX
EFFECT.
THE OWNER ALREADY HAS CUSTOMERS. SHE HAS AN ESTABLISHED CLIENT
BASE. THERE ARE MANY ANTICIPATED CLIENTS THAT HAVE ALREADY
INDICATED THEY ARE READY TO SIGN UP FOR MAX EFFECT SERVICES OFFERED
BY SUPERSTAR FITNESS INSTRUCTOR CARRIE VAN ORDEN.
IT IS REALIZED THAT MAX EFFECT WILL NOT HURT THE UNIVERSITY OF IOWA
RECREATIONAL SERVICES IN ANY WAY. INSTEAD IT WILL CO -EXIST NICELY WITH
THE LARGER MULTIMILLION DOLLAR WELLNESS CENTER. IT WILL ALSO FIT IN
NICELY WITH THE SMALLER WORKOUT CENTERS.
MAX EFFECT OFFERS SOMETHING NEW AND DIFFERENT. SERVICES WILL BE
CUSTOMIZED TO MEET THE DEMANDS OF CLIENTS OFFERING A RANGE OF
ACTIVITIES.
THE OWNER WENT INTO BUSINESS FOR HERSELF BECAUSE CLIENTS ASKED
HER TO FIND A CREATIVE ALTERNATIVE TO THE PROBLEMS CONFRONTING
CLIENTS SCHEDULING CLASSES THEY WANT.
THERE IS NOTHING LIKE THIS BUSINESS IN IOWA. BUT INDUSTRY TRENDS SHOW
STUDIOS LIKE MAX EFFECT ARE ON THE RISE PARTICULARLY IN THE LAST 12
MONTHS
Revised 7/6/2012
Section 2: Financial Contributions to the Proposed Project
2.1. Use of Proceeds
USE OF Proceeds
Activity
Loan Requested
(Enter gross dollar
amount rounded to
the nearest hundreds)
Land acquisition
$
0.00
New Construction/Expansion Repair
$
30,000
Acquisition and/or Repair of Machinery
and Equipment
$
150,000
Inventory Purchase (retail + Advocare)
$
5000
Working Capital (including accounts
payable)
$
23,000
Acquisition of Existing Business
$
0.00
All Other. Certification Costs+Travel
$
5,000
Total Loan Requested (All Uses):
$
213,000
2.2. Terms of Proposed Financing (Sources)
Proposed Financing
Amount
Monthly
Payment
Type(')
Rate
Tenn
Financial: Hills Bank: SBA loan
$158,000
2,308.15
SBA
6.00%
7 YRS
Capital: Owner equity
$ 20,000
Other. Personal loan(s)
$ 5,000
0.00
CASH
8.00%
3 YRS
Iowa City CDBG Economic Dev. Fund
$ 30,000
Grant
0.00%
7 YRS
TOTAL SOURCES:
$ 213,000
2,308.15
rliFor example: forgivable loan, direct loan, or grant.
NOTE: Total Loan Requested - Uses (2.1) and Total Sources (2.2) should be equal.
2.3. 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.
THE OWNER IS IN NEED OF START UP FUNDS TO HELP DEFRAY THE COST OF
VARIOUS CERTIFICATIONS NEEDED IN ORDER TO PROVIDE A HIGH QUALITY, SAFE
SERVICE. HILLS BANK WANTS HER TO COME UP WITH 25% CAPITAL WHICH MAY
INCLUDE30,000 DOLLARS IN GRANT(S)
Revised 7/6/2012
2.4. Indicate the owner's contribution (cash, assets for the operation of the business, etc.) to
this project. (This amount should not be included in questions 2.1 and 2.2)
THE OWNER WILL CONTRIBUTE SWEAT EQUITY, DESIRE AND COMMITMENT TO
SUCCEED IN ADDITION TO AN INJECTION OF CASH FROM SHORT TERM LOANS
FROM FRIENDS AND BUSINESS ASSICIATES.
2.5. Identify all agencies or institutions involved in the project (financial, technical assistance,
etc.) and what their involvement is:
2ND WIND — KYLE MITCHELL, SALES — FITNESS EQUIPMENT EXPERT
DON GOEDKEN — PROPERTY OWNER, LANDLORD
WOMBAT ACCOUNTING SERVICES — TOM RHINER AND NICHOLAS RHINER
BENSON & HEPKAR — ROBIN — PROFESSIONAL MARKETING SERVICE
HILLS BANK & TRUST COMPANY — BRAD LANGGUTH AND MOLLY BROWN
REFERENCE AUDIO, VIDEO AND SECURITY
JOHN GAY, ELECTRICIAN OR GORSH ELECTRIC (JODY)
RAGE GRAFIX OR HOLLYWOOD GRAPHICS (T-SHIRT DESIGN)
THE SIGN SHOP OR ABSOLUTE GRAPHICS & SIGNS (SIGNAGE)
ALL DAY OUTDOOR SERVICES (GROUNDSKEEPING)
CnN SNOW REMOVAL
COSTCO / TALL GRASS / RICOH / BEST BUY
IOWA GLASS
KAY PARK RECREATION CORP (BIKE RACKS)
INSURANCE ASSOCIATES (COMMERCIAL LIABILITY PACKAGE)
ADVOCARE INDEPENDENT REPRESENTATIVES
IOWA CITY COMMERCE
A CLEANING SERVICE WILL NEED TO BE HIRED
COMPUTER CONSULTANT / NETWORK WILL NEED TO BE AVAILABLE
2.6. 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
❑ Irrevocable Letter of Credit
❑ Personal Guarantee
❑ Surety Bonds
❑ Mortgage on Real Estate
❑ Escrow Account
Other: Promissory Note(s) or security on equipment / life insurance policy to cover debt
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 IT WILL BE MORE DIFFICULT. EVERY DOLLAR HELPS WHEN STARTING
Revised 716/2012
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 12 months from the date of the award); it may be required to
reimburse City funds for the employment shortfall.
3.1 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.
BUSINESS PLANS TO OPEN THEIR DOOR ON SEPT 3RD, 2013 — THE OWNER WILL
BE THE ONLY FT EMPLOYEE OF THE CORPORATION UNTIL ANOTHER PT
PERSONAL TRAINER AND PT SPINNING INSTRUCTOR CAN BE INTERVIEWED AND
HIRED. A FT SCHEDULING / RECEPTIONIST WILL NEED TO BE HIRED. PLANS FOR
GROWTH INCLUDE HIRING MORE INSTRUCTORS FOR SPIN AND PERSONAL
TRAINERS. THE BUSINESS WILL BE MANAGED BY THE ACCOUNTING FIRM
UNDER THE DIRECTION OF THE OWNER. A CHILD CARE SUPERVISOR WILL BE
NEEDED.
3.2 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
Months of Project Award (phrase see attached Job Category Defln/tions)
# of Jobs
Created
# of Jobs
Retained
Type of Job
No. Hours
Per Week
Hourly
Rate of Pa
Annual
Salary
1
1
Owner & Manager
40 + HRS
$48,850
1
1
Professional
20 HRS
20.00
IL6
0
0
Technicians
0
0
0
0
Sales
1
1
Scheduler / Receptionist
40 HRS
12.00
NO
0
0
Craft Workers (Skilled)
20 HRS
8.75
NO
0
0
Laborers (unskilled)
0
NO
1
1
Spin Instructor(s) PT
10 HRS
20.00
NO
*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. No fringe benefits YR 1. YR 2
projections will double in terms of employees, instructors, personal trainers, etc.
3.3 What is the estimated annual payroll for the new employees resulting from this project?
UNKNOWN AT THIS TIME / ACCOUNTING FIRM WILL HANDLE PAYROLL AND PAYROLL
TAXES
Revised 7/6/2012
3.4 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:
THE JOB(S) OF THE OWNER WILL BE AT RISK
Section 4: Economic & Environmental Impact
4.1. What other Johnson County companies could be considered to be your competitors?
CORE FITNESS
UNIVERSITY OF IOWA RECREATIONAL SERVICES
NORTH DODGE ATHLETIC CLUB
4.2. Please describe the energy and resource efficiency programs, waste reduction, waste
exchange, and recycling programs at your Iowa City operation.
LED LIGHTING THROUGHOUT THE FACILITY
HE WASHER AND DRYER
WELL INSULATED BY CONTRACTOR TO REDUCE UTILITY USAGE
ELKAY DRINKING FOUNTAIN AND BOTTLE FILLING STATION — EZ H2O BOTTLE FILING TO
REDUCE DEPENDENCY ON PLASTIC BOTTLE WASTE, RAPID FILL. IT HAS A GREEN
TICKER TO COUNT THE QUANTITY OF BOTTLES SAVED FROM THE LANDFILL
Section 5: Community Involvement, Compliance with Law
5.1 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 — A COUPLE OF RIDES PER YEAR WILL BE ORGANIZED WITH PROCEEDS
DONATED TO A LOCAL CHARITY SUCH AS CHILDRENS HOSPITAL, UNITED WAY, &
THE WOMEN'S SHELTER. PARTICIPATION IN YOUTH FOR OFF ROAD RIDERS
5.2 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
Revised 7/6/2012
5.3 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
5.4 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
Section 6: Summary of Required Attachments
Check off each attachment submitted. If hot submitted, explain why.
X Business plan (if start-up business)
Balance Sheet (3 year historical if an existing business. Start-ups must provide a pro-
X forma balance sheet) — 2 YRS FINANCIAL DATA PROVIDED
Profit and loss statements (3 year historical if an existing business, 3 year projection for
X start-ups) — 2 YRS FINANCIAL DATA PROVIDED
12 month cash flow statement (if the business does not expect to turn profitable within the
X first 12 months, provide a cash flow statement extended to the year the business expects
to turn profitable)
Description of fringe benefits provided to employees, if applicable
Brief description of the education, technical and business background for all the persons
X listed under Management (Question #1.4)
JOB DESCRIPTIONS INCLUDED: FACILITY MANAGER & FITNESS INSTRUCTOR
Revised 716/2012
Please provide the social security numbers for all the persons listed under Management
X (Question #1.4)
If an existing company, copy of the company's quarterly Iowa "Employer's Contribution and
�) Payroll Report" for the most recent quarter.
Construction loans only: Cost estimates for construction and a statement of the source of
�) any additional funds
Include a list of any machinery or equipment or other non -real estate assets to be
X 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
infonnation 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. 1 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 proprietor or general partner, sign below.
0
If applicant is a Corporation, sign below:
l G/aII'3
Corporate Name and SeaT Date
0
Signature of President
Date:
Attested by:
Signature of Corporate Secretary
Revised 7/6/2012 10
Max Effect ... A Spinning & Fitness Studio
A Confidential Business and Financial Plan
Projected
Start Date of
September 3,
2013
Projected Grand
Opening Date
of September
27' — 29th
Prepared by Owner & Manager
Carrie Van Orden
801 19" Avenue
Coralville, IA 52241
M) 319.631.1586
cvanorden@gmail.com
Max Effect ... A Spinning & Fitness Studio
Receipt of Confidential Information
To
Signatw Date
By accepting this information you agree to protect, save and hold all business information
confidential. It is provided to you for the sole purpose of communicating business strategies
and plans to grow the business.
Any documents and contents distributed are the property of Max Effect and are protected
under copyright laws of the United States and recognized international law pertaining to
copyright and intellectual property rights.
DISCLAIMER
The matters described herein contain 'Ybrward looking" statements that involve risk and uncertainties that may
individually or collectively impact the matters herein described, including but not limited to the possibility thatf tnding
may not be secured that will be necessary for profitability and growth. The possibility that we may not realize the
benefits of product acceptance, economic, competitive, governmental, seasonal, management, technological and / or
other factors outside the control of the Company. Max Effect disclaims any intent or obligation to update these
"forward-looking"statements.
Max Effect ... A Spinning & Fitness Studio
TABLE OF CONTENTS
Introduction — Overview of Business
Page 1
1.0
Executive Summary
Page 2
1.1
Objectives
Page 2
1.2
Company Summary
Page 2
1.3
Company Ownership
Page 2
1.4
Vision
Page 3
1.5
Mission
Page 3
2.0
Company History
Page 3-4
3.0
Location
Page 3-4
4.0
Services
Page 5
4.1
Equipment
Page 6
4.2
The Fitness Bike
Page 6
4.3
Fitness Bike Specifications
Page 6-7
4.4
Revenue
Page 7
5.0
Market Analysis Summary (Industry Trends)
Page 8
5.1
Market Segmentation
Page 8-9
5.2
Strategy and Implementation Summary
Page 9
5.3
Competitive Edge
Page 9-10
5.3
Sales Strategy
Page 10-11
6.0
Management Summary
Page 11-12
6.1
Personnel Plan
Page 12
6.2
Job Descriptions of Key Personnel
Page 12
7.0
Financial Plan
Page 13
7.1
Break-even Analysis
Page 14
7.2
Summary Income Statement
Page 15
7.3
Summary Cash Flow
Page 16
7.4
Summary Balance Sheet
Page 17
7.5
Business Ratios
Page 18
8.0
Industry Recommendations
Page 18
Cash Management Strategies
Page 18-19
Development of Favorable Profitability Trends
Page 19
Suggested Sales Strategies
Page 19
9.0
Conclusion
Page 20
10.0
Addendum
Attachments
Max Effect ... A Spinning & Fitness Studio
Company Name: Max Effect ... A Spinning & Fitness Studio
Industry: 611620 — Sports and Recreation Instruction
Company Structure: Sole Proprietor until January 1, 2014 then restructuring to a
Limited Liability Corporation (LLC)
Company Address: 1012 Gilbert Court
Iowa City, Iowa 52240
Company Owner: Carrie Van Orden
319-631-1586
cvanordeng,gmail.com
Statement of Purpose: Approximately $213,000 is needed to start the business
with startup funding obtained from various sources such as
a commercial loan (SBA), grants, line of credit and other
nonforgivable loans depending upon availability.
Equipment will be used to secure funding with plans to pay
off commercial debt over a 7-year time period
Owner's Equity: Owner's contribution is sweat equity, desire, and
commitment to succeed in addition to an injection of cash
from private investments
Services / Products Offered: An independently owned and operated indoor cycling and
fitness studio, located in close proximity to downtown Iowa
City. World -class nutritional products made by Advocare
will be endorsed and sold
Target Customers: Individuals / households — those living in Iowa City and
surrounding communities who are seeking a personal path
to better health and wellness will be targeted. A" niche"
demand has been identified with an established Client base.
Hours of Business: Monday — Saturday: 5:45 AM — 7:45 PM
Business Success: The Studio WILL succeed because the Owner has what it
takes — whole hearted dedication and a lifelong
commitment to wellness — offering competitive prices at a
better value
Qualifications: As part of startup, certification in SPINNING and STOTT
PILATES will be completed. AFAA certified personal
training is ongoing with attendance at the 2013 IDEA
World Fitness Conference in Los Angeles
Page 1
Max Effect ... A Spinning & Fitness Studio
1.0 Executive Summary
Envision an up and coming indoor spin and fitness studio located in the heart of Iowa City's
Riverfront Crossing District Master Plan, as close as you can be to the newly renovated
downtown area. The business will be amidst boutiques, recreational parks, nestled conveniently
near one of the many new bicycle paths, virtually bringing downtown to the front door of Max
Effect, independently owned and operated by Carrie Van Orden.
Superstar instructor and avid cyclist herself has the passion and desire for success. She is all
about changing lives by improving general health, by promoting better lifestyle choices, and by
motivating others to accomplish their individual health and fitness goals. Her plan coupled with
an inherent entrepreneurial drive will motivate even the unwilling to become "happy", "fit" and
"well".
1.1 Objectives'
From the moment the lease is signed, there will be two simultaneous objectives:
Objective 1: Implementation of the build out plan for the studio space
Objective 2: Implementation of a marketing plan
The purpose of the facility is to tailor the Client's fitness goals according to the individual
needs. Options include participation in either the indoor cycling or fitness program or both.
Objective 1 focuses on the design of the actual space while Objective 2 focuses on how to bring
clients into the Studio. These two objectives will lead to the success and growth of Max Effect.
Each will be first and foremost in the minds of those involved with business planning of the
privately owned facility.
1.2 Company Summary
The Studio is designed to be in an energized atmosphere, various light and music settings at the
fingertip control of the instructor(s). Varied fitness routines are offered to keep things "new" and
"different", allowing for training all through the year. Max Effect provides a complete lifestyle
experience including indoor cycling, total body training, and core strengthening offered in a
"community" setting. Intense classes coordinated to music offer excellent mental and physical
challenges along with heart pumping workouts. There will be sweat dripping off of bodies
offering "incredible" rewards!
1.3 Company Ownership
Max Effect is solely owned and operated by Carrie Van Orden. Private investments will be
taken in either as a loan to the Owner or as a stockholder in the Company.
1 Spynergy Consulting, Bill Pryor
Page 2
Max Effect ... A Spinning & Fitness Studio
1.4 Vision
This business is created from the passion of the Owner's heart and soul. Carrie is a "people
person" who genuinely cares for the wellbeing of her dedicated client base. She is determined to
succeed, as she helps others to achieve a healthy lifestyle. Wellness is a lifelong commitment of
her own and one she instills in those around her. The goal of the Studio's fully certified fitness
staff will be to meet each Client where they are today, empowering them to become stronger,
healthier and happier individuals.
1.5 Mission
The Owner's mission is to start up Max Effect NOW! The timing is right. There is nothing like
this type of business in this geographical area. The Studio will fill a "niche" market need to
those who have already committed to the Owner along with the many others who will participate
from all walks of life. Max Effect will "gear up" creating new opportunities for all ages.
2.0 Company History
The business is the first "indoor cycling studio" like this in Iowa City. It has been created in
response to the tremendous surge of popularity related to the fastest growing group exercise class
in North America, specifically planned to meet the increasing demand in the local market.
Indoor cycling is not new to the Iowa City area — it has been around in some form or another
since the 1980s. The "studio concept" related to indoor cycling is "new" and "different" in this
geographical area. 70% of health clubs offer indoor cycling programs making it the most popular
group exercise class. A spin / fitness studio is a great business when done right. Introduction of a
spinning studio in a college town such as Iowa City offers even more perks.
A vacant and readily available facility has been identified, one that is in the heart of Iowa City's
Riverfront Crossing District Master Plan. The following statement is taken directly from Iowa
City's website: "this renovation is so well situated for redevelopment due to its accessible and
budding potential for private investments2 ".
Max Effect is one of many new businesses that will be opening their door to residents and to
households of Iowa City and surrounding communities; to a wide range of individuals and their
families, and do not forget, doors will be open year round to avid enthusiasts such as those who
participate annually in RAGBRAI3.
z www.icgov.org
3 Register's Annual Great Ride Across Iowa
Page 3
Max Effect ... A Spinning & Fitness Studio
Because this is a new business there is no past performance data. However, listed below is the
past performance data4 within the industry since January 2011. The chart shows that sales and
profit growth has increased consistently since 2011.
Growth Metric
Last 12 Months
2012
2011
Last 4 Last Yrs
All Years
Sales Growth
16.07%
16.07%
13.11%
11.22%
12.36%
Profit Growth
28.29%
28.29%
19.08%
30.05%
25.29%
3.0 Location
A review of literature reveals that the biggest startup cost is the renovation of the building used
to accommodate the indoor cycling and fitness studio. Ironically, a space that could spare this
initial costly expense for the energetic entrepreneur has already been located. The vacant
property is a very well insulated, "turnkey lock" space almost perfectly designed to house the
Studio. Signing the lease will give birth to the inception of Max Effect.
The concept of this business and the identified location of the Studio creates win / win situation
for Lessee Carrie Van Orden and Leaser Don Goedken, who also is an exercise enthusiast and
adventurist. To date Mr. Goedken has been very selective and cautious about renting his
beautifully remodeled, commercially zoned office space to just the right person at just the right
time. He has finally found the ideal business to occupy this readily available facility.
Property highlights are bulleted below with photos attached in the addendum. A sample lease
has also been included in the addendum.
• 4,300 square foot, commercially zoned, newly renovated, well insulated facility to
accommodate setup of the fitness and spinning rooms within the Studio
■ Spin room will be in the 2,900 square foot space with a finished cement floor — inside
measurements are 36'3" x 55'3"
• No disruption due to motivational and loud music in offices located above or below like
in a traditional office space
• Property includes enough space to accommodate up to 80 stationary bikes, it is virtually
"spin ready"
• Accommodations for limited (reserved) child care and in-house office work area are
provided in this large room. These petitioned spaces are l l'xl5' and 10' x 11'
• Another built in petitioned space is I I' x 14' which could be used as a changing room
a Sets of small storage cubicles and lockers will be provided
• No showers or locker rooms needed yet — Max Effect Clients realize that this will be
acceptable until other arrangements are offered
• Free parking includes 23 spaces for vehicles with a designated area for "bike" parking
• Corner lot, high traffic, well lit area with easy access from early morning to mid -evening
° Sageworks Industry Data & Analysis, prepared 05/31/2013
Page 4
Max Effect ... A Spinning & Fitness Studio
This "turnkey lock" operation is a very well suited building to accommodate Max Effect. The
Owner will be responsible for water, electric, gas, lawn care, shrub, tree care and snow removal.
The Landlord will pay property taxes and insurance on the building.
The second area within the building is a large carpeted room, which is well designed to
accommodate the fitness / workout part of the Studio.
• 1,400 square feet room is designated as the fitness area
• Specialty fitness equipment selected for personal training and STOTT PILATES
• Fitness equipment includes free weights, treadmills, ellipticals, hydro -rower, and STOTT
reformers
The two large rooms are adjoined by an entry way with two newly remodeled restrooms. Digital
class schedules will be displayed in the entry way along with educational information on fitness,
diet, and exercise. Instructor bios will be displayed on the wall with photos of their families.
A keyless entry will be installed for employee access. There are two other entrances located in
the commercial property that are well lit and accessible. All entrances are handicap accessible.
The facility will be OSHAS compliant.
The commercial location is large enough to host certification week -ends and to sponsor fitness
related events.
4.0 Services
Max Effect will offer these services:
• Indoor spinning with two brands of fitness bikes
• Specialty fitness equipment
• Private and semi -private personal training
• Motivational weight loss activities
• Cardiovascular, aerobic workouts
• Stability training
• STOTT PILATES matwork
• STOTT PILATES reformers
• Weight lifting
• Specially designed small group exercise sessions
• Advocare sales
• Limited space designated for child care
The Studio will be open six days per week, Monday — Saturday from 5:45 AM until 7:45 PM.
s Occupational Safety & Health Administration
Page 5
Max Effect ... A Spinning & Fitness Studio
4.1 Equipment
Instructor Carrie Van Orden is known to "max out" the classes she currently teaches. Literature
reveals that it is not the type of bikes in a studio, it is the instructor!
The spin room's maximum capacity is 80 indoor stationary bikes. There is room to grow in this
location. 34 Le..Mond Revmaster Pro Spin Bikes + 8 EVO Relay Fitness Evo CX bikes (42 total
bikes) will be purchased initially. These chainless and maintenance free fitness bikes meet the
criteria listed: 1) durability; 2) reliability; 3) appeal; and 4) excellent warranty.
4.2 The Fitness Bikes
LeMond Fitness Revmaster Pro offers advantages over other fitness bikes as listed below.
1. Maximum riding comfort
2. Replicates the "feel" of the outdoor bike (narrow crank)
3. Appropriate fit for a broad range of riders
4. Increased range of micro-adjustability in the handlebars and seat
5. Customized fit for even the most discriminating riders
6. Two piece bottom bracket cartridge
7. Individual flywheel bearing assembly
8. Guaranteed long life and ease of service
9. REVMASTER Pilot II used to measure performance (cadence, time & distance); it
will measure heart rate & calories burned when a heart strap transmitter is worn
RF-Evo CX Relay bike has an ORBTM gear drive system without a belt, chain or external
flywheel. It is an enclosed three wheel crank. The Core Active Sway Frame sways with body
movement in order to get more out of the cardio workout. Handlebars allow for the four most
common hand positions. Computer readouts include RPM, Time, Distance, and Heart Rate via
strap, as well as an adjustable lighting setting. The bike features holders for two large water
bottles and a center platform for smart phones.
4.3 Fitness Bike Specifications
MAX
PRODUCT NAME H L W WT USER AVE USER COST
WEIGHT HEIGHT
LeMond Revmaster Pro Spin Bike 42" 46" 23" 143# 350 Ibs 4'10" - 6'6" $1,165
Evo CX Sway Bike 56" 48" 26" 137# 300+ Ibs 4'10"-6'6" $995
Sought after indoor bikes by studio owners are the following: Schwinn, StarTrac, Keiser,
Freemotion, and RealRyder — again, it is more about the instructor than the type of bike
e Bill Pryor, Spynergy Consulting
Page 6
Max Effect ... A Spinning & Fitness Studio
Floor plans in the spin room must be designed for class growth. Items that must be included in
the startup are the following list of amenities.
Bikes, flooring, sound system, microphone, ambient (LED) lighting, scheduling software,
professional playlists, certified coach, large HDTVs, LCD projector to display ride data
4.4 Revenue
Aggregate gross revenue from indoor cycling, fitness and group exercise is charted below. This
information is based on the Owner's best good faith estimate of the participants expected. It is
anticipated that the gross revenue will start slow then build as more and more participate in the
classes offered multiple times daily.
The Owner will offer special introductory pricing. Clients have encouraged her to find a creative
alternative to their present situation. Package deals will also be offered, truly giving Max Effect
participants a better value.
YRl REVENUE
DAILY
WEEKLY
MONTHLY
ANNUALLY
SPIN REVENUE
$400
$2,400.00
$9,600.00
$115,200.00
SEMI PRIV GRP EX
$160.00
$960.00
$3,800.00
$46,080.00
WEEKLY GRP EX
$1,500.00
$6,000.00
$72,000.00
PRIVATE PILATES
$112.50
$675.00
$2,700.00
$32,400.00
SEMI PRIVATE PILATES
$160.00
$960.00
$3,840.00
$46,080.00
PERSONAL TRAINING
$128.00
$768.00
$3,072.00
$36,864.00
TOTAL REVENUE
$960.50
$7,263.00
$29,012.00
$348,624.00
The pie graph below indicates revenue from each source as charted above.
SPIN REVENUE
%I SEMI PRIV GRP EX
WEEKLY GRP EX
PRIVATE PILATES
SEMI PRIVATE PILATES
PERSONAL TRAINING
TOTALREVENUE
Can this superstar instructor do it? See the addendum for comments from the Owner's well
established client base.
Page 7
Max Effect ... A Spinning & Fitness Studio
5.0 Market Analysis Summary (Industry Trends)
o Indoor cycling is one of the fastest growing group exercise classes in North America.
• Classes are tremendously effective workouts that can trill and inspire, not to mention that
they are 100% fun!
• There is only a relatively small number of indoor cycling studios but that number is
growing (best estimate <350 of which 70 have launched in the last year).
• There is huge potential for growth for the entrepreneur.
• California has the most studios, followed by New York, New Jersey, and Florida
• States with five or more studios identified are Massachusetts, Minnesota, Ontario,
Pennsylvania, and Texas.
• There are 21 states that do not have any studios. According to Consultant Bill Pryor
there is nothing like Max Effect in this geographical area.
5.1 Market Segmentation
Max Effect will target all age groups of residents and their families, those who live in households
of Iowa City and the surrounding area.
US Census reveals that the median age in Iowa City was 25.6 years. 14.9% of residents were
under the age of 18; 33.4% were between the ages of 18 and 24; 25.7% were from 25 to 44;
17.8% were from 45 to 64; and 8.2% were 65 years of age or older. The gender makeup of the
city was 49.7% male and 50.3% female.
According to the last Census the Iowa City Metropolitan Statistical Area (MSA) consists of
Johnson and Washington counties in Iowa; Washington County was added to the MSA after the
2000 census. It had a 2000 census population of 131,676, and a 2010 population of 152,5868
.
Iowa City is flanked by Coralville, North Liberty, and University Heights and is completely
contained within the boundaries of Iowa City, near Kinnick Stadium, Tiffin, Solon and Hills are
other small towns within a few miles9.
Iowa City is one of the two namesakes of the "Cedar Rapids/Iowa City Technology Corridor",
which includes the above communities plus Linn, Benton, and Jones counties. This area had a
2008 estimated population of 404,88910. There are two colleges in the geographical area:
University of Iowa and Kirkwood Community College. Max Effect is open and willing to
support indoor cycling events sponsored by the colleges. Indoor spinning is becoming more and
more popular among student populations according to a recent article in Time magazine.
Spynergy Consulting, Bill Pryor
e 2010 US Census
s 2010 US Census
10 2010 US Census
Page 8
Max Effect ...A Spinning & Fitness Studio
�n _
5.2 Strategy and Implementation Summary
Max Effect is NOT a franchise. Instead inception has incurred out of sweat equity and the
natural desire to empower and to change. Only this time the fees will be paid directly to the
small business owner who has courageously ventured out "on her own" to satisfy a growing
demand in the local market.
Indoor spin will be promoted every day, to everyone who walks through the door. Press releases
will be strategically planned to announce cycling events sponsored by Max Effect. With
branding Max Effect will become a household word among friends and family members of
participants. The Studio will establish a known presence in the community in a short time
because of promotions using social media, local newspapers, online ads, and weekly flyers. The
Owner will participate in fund raising community events for good causes along with hosting
special events for certification training, bringing in celebrity names to train with locals.
Plans to host a couple of benefit rides per year with proceeds donated to local charities such as
United Way and The Children's Hospital are included in business plans once the Company is
established.
Advocate mixers will be held after hours which will promote product sales endorsed by Max
Effect. Local cycling clubs will be supported by offering use of the indoor cycling room at a
discounted price during off hours.
Cross promotion with other related companies will increase business presence in the community.
Doors will be wide open to help cyclists train year-round for the famous trek across the State of
Iowa in July"
5.3 Competitive Edge
Why Max Effect? The Studio's long list of amenities is identified below.
a. A beautiful facility located in close proximity to downtown Iowa City
b. The studio concept fits in well with Iowa City's Master Plan to renovate the commercial
district east of the river
c. Extraordinary instructors and certified trainers
d. Heartfelt dedication
e. Lifelong commitment to provide fitness and wellness instruction
f. Motivational interactive sessions
g. Intensive classes coordinated to music offering the best workout around
h. State -of -the art sound system that will be loud
i. Energized atmosphere with lights that can be dimmed
j. Durable bikes with customer appeal
k. Online reservations to ensure that a bike or class space will be waiting
" Register's Great Ride Across Iowa known as RAGBRAI
Page 9
Max Effect ... A Spinning & Fitness Studio
1. No long lines or turning Clients away
in. No expensive membership fees
n. Package "deals" offering a better value
o. Limited child care provided
p. Free parking
q. Endorser of Advocare nutritional products
Five competing businesses and their locations are listed below.
1. University of Iowa Campus Recreation & Wellness Center (CRWC)
2. Core Fitness is located in Iowa City and North Liberty
3. Ferrell's Extreme Body Shaping is located in North Liberty and Coralville
4. 360-Personal Training is located in Coralville
5. North Dodge Fitness Center is located close to I-80 in Iowa City
Max Effect will co -exist nicely in the community even with the 75M dollar UI facility located
just blocks away. Max Effect, a dedicated studio, will be a unique and exceptional business
when well executed. The studio approach builds a true fitness community and will be able to
compete with a bigger gym as well as with the smaller more specialized workout centers.
A flexible pay -per -class system is utilized instead of traditional memberships that are often
burdensome and expensive. As mentioned above studios pay attention to details such as lighting,
music, equipment, mirrors, towels and the best possible instructors.
Keys for success12 are the following: 1) be a better value or "beat them on price'; 2) learn to
generate high profits without exorbitant rates; 3) participate in community events or "get your
name out there"; 4) be true to the studio's vision; 5) do not panic, Max Effect will compete and
become a thriving and profitable business.
5.4 Sales Strategy
There are ten critical strategies to this type of business according to EVO Indoor Cyclist Jack
Nunn. These factors are itemized below.
1. Develop efficient ways to track the Client's sessions
2. Schedule and offer classes, ideally before 6:00 AM and after 6:00 PM.
3. Keep your bikes clean and in working order
4. Market your classes on Facebook as soon as you are ready to start — take advantage of
social media and use it wisely to promote business growth
5. Allow for growth - size of your studio is critical
6. High energy instructors are needed to keep the classes fun, never boring
z Spynergy Consulting, Bill Pryor
Page 10
Max Effect ... A Spinning & Fitness Studio
7. Use of great music with energetic beats13, which is critical to the Studio's success
8. Promote the studio by circulating flyers, offering "hot deals" — be creative to get bodies
into the studio (first and foremost objective once the Studio opens their door for business
9. Advertise using your dollars wisely
10. Partner Market — cross promote with others in the community
6.0 Management Summary
Max Effect will be managed by Owner Carrie Van Orden. Carrie's background is in fitness and
cycling. She has instructed in the following areas: group exercise, STOTT PILATES matwork,
STOTT PILATES reformer, indoor spinning, and as an AAFA certified personal trainer for the
University of Iowa. The Owner's resume is attached in the addendum.
Cindy Van Orden, longtime Iowa City small business owner, will oversee business activities.
Friends and family will be offered the opportunity to invest in the privately owned company.
Payroll will be outsourced to the accounting service hired to oversee all financial activities on a
weekly, monthly and annual basis. An in-house bookkeeper / scheduler will be employed to
manage daily activities and class scheduling. A maintenance man, groundskeeper will be
employed part time. A computer consultant will be needed to set up and to maintain a secure
online reservation system14, utilizing online and mobile payments. A cleaning service will need
to be hired. The Owner's brother15 will provide snow removal. A professional marketing
service will be contacted.
The Company's lending institution / commercial banker is listed below.
Brad Langguth, Hills Bank & Trust Company, Senior Vice President, Commercial Banking
1009 2"d Street, PO Box 5820, Coralville, IA 52241; W) 319-358-6155; C) 319-330-3107;
F) 319-351-2529; www.hillsbank.com; brad laneeuth@hillsbank.com
The Company's SBDC business advisor is listed below.
Paul Heath, Iowa Small Business Development Center, 2660 University Capitol Center,
Suite 2673, Iowa City, IA 52242-5500; Regional Director & Certified Business Advisor;
W) 319-335-3742; F) 319-335-4486; Paul-heath@uiowa.edu
The Company's accountant and attorney will be decided once startup funding has been secured.
The Company's insurance broker is to be decided. A Release, Indemnification, and Hold
Harmless Agreement has been attached in the addendum.
13 BPM & Electric Area stations on Sirius XM Radio
14 www.mindbodvonline.com
Is CnN Snow Removal
Page 11
Max Effect ... A Spinning & Fitness Studio
The trade mark name, Max Effect...A Spinning & Fitness Studio, has been recently filed at the
Johnson County Recorder's Office. This documentation has also been included in the
addendum.
The Owner is in the process of applying for a tax identification number.
6.1 Personnel Plan
Staffing will include the positions listed below.
o Manager & Owner
o Business Manager
• Spin Instructors
a Personal Trainers
• Child Care Supervisor
e Maintenance & Electrical Management
o Bookkeeper & Scheduler
• Computer Consultant
6.2 Job Descriptions of Key Personnel
Facility Owner Director
The manager develops health and fitness programs for the Company, while overseeing and training staff
members, Day-to-day operations of the business will be planned while others maintain the facility and
equipment. This position requires at least 5 years of experience in the field. The Manager must be familiar with a
variety of the field's concepts, practices, and procedures, relying on extensive experience and judgment to plan
and accomplish goals. She will perform a variety of tasks, while leading and directing the work of others. A wide
degree of creativity and latitude is expected from the Owner. According to www.salary.com the average monthly
salary for this position is $64,603 in this geographical area.
Fitness Instructor
Instructors work together to coordinates all fitness programs for a facility. He or sne will organizes and instruct
exercise classes for all fitness levels, ensuring that all participants are properly trained on the use of the facility s
exercise equipment. Each is responsible for making sure that the exercise area and equipment are safe and
clean. Two to four years of experience in the field or in a related area is required. The Instructor must be familiar
with standard concepts, practices, and procedures within a particular field, relying on experience and judgment to
plan and accomplish goals. They will perform a variety of tasks while working under general supervision. A
certain degree of creativity and latitude is required. Max Effect Instructors report directly to the Owner/Manager.
A prerequisite of employment at the studio is that the instructor must share the Owner's vision. According to
www.salary.com the average monthly salary for this position is $42,540 in this geographical area.
Page 12
Max Effect ... A Spinning & Fitness Studio
7.0 Financial Plan16
The chart below itemizes use of funds, fixed assets, with startup funding from a 7-year SBA
commercial loan. An amortization table may be found in the addendum. Also included is an
itemized list of quotes for fitness equipment and other startup expenditures.
LOAN 1
FIXED ASSETS
SOURCE OF LOAN
Hills
EQUIPMENT & MACHINERY
$150,000
NEW OR EXISTING LOAN
new
FURNITURE & FIXTURES
$5,000
SBA 7.(a) Guaranty (Yes/No)
yes
ORGANIZATIONAL EXPENSE
$2,500
BEGINNING MONTH
1
LOAN FEES
$3,568
MONTHS INTEREST ONLY
0
AMT OF FINANCING NEEDED
$155,000
TOTAL LONG TERM ASSETS
$161,068
SBA LOAN GUARANTY FEE
$3,568
INVENTORY
$5,000
TOTAL FINANCING
$158,568
WORKING CAPITAL (CASH)
$17,500
ANNUAL INTEREST RATE
6.00%
TERM (IN YEARS)
7
MONTHLY PAYMENTS
$2,316.45
TOTAL USE OF FUNDS
$183568
Debt Coverage Ratio Analysis for the first two years of business is documented below.
Debt Coverage Ratio Analysis
Net Profit Before Taxes
Projected YR 1
$90,313
Projected YR 2
$172,610
+ Depreciation
$22,905
$23,571
+Amortization
$676
$676
+ Interest
$9,003
$7,844
- Increase in Permanent Working Capital
$0
$0
- New Capital Expenditures (Net of New Loans Injected)
(8,000)
$0
=Total Cash Fiow Available for D/S
$114,897
$204,702
(Total Debt Service
$27,797
$27,797
= Debt Coverage Ratio
4.13
7.36 �.
16 Financials have been prepared by UI SBDC Paul Heath and are included in the attached addendum
Page 13
Max Effect ... A Spinning & Fitness Studio
7.1 Break-even Analysis
The information below documents the break-even point for Year 1. Break Even Point in Year 1
Cash Flow = $249,782 / Break Even Point in Year 2 Cash Flow = $297,395
MONTHLY BREAK-EVEN ANALYSIS YR 1
GROSS SALES
$348,000
COST OF GOODS
$18,000
GROSS MARGIN
$330,000
ITEMS
FIXED EXPENSES VARIABLE EXPENSES
Owner's Salary
$48,000
Owner's Payroll Taxes
$7,344
Fixed Employee Wages
$36,664
Fixed Payroll Taxes
$3,795
Supplies
$2,400
Ad/Promotion
$3,000
Office Expense
$600
Car / Travel
$6,000
Acct & Legal
$3,600
Rent
$48,000
Telephone
$1,200
Utilities
$7,200
Insurance
$12,000
Miscellaneous
$3,600
Cleaning Service
$3,600
Computer Consultant
$1,200
Credit Card Fees
$8,700
Depreciation
$22,905
Amortization
$676
Principal Payment
$18,795
Interest
$9003
Int-Line cf Credit
So
BREAK-EVEN POINT % OF PROJECTED SALES
BASED ON EXPENSES 1 $250,182 1 71.89%
BASED ON CASH FLOW $244,998 i 70.40%
Page 14
Max Effect ... A Spinning & Fitness Studio
7.2 Summary Income Statement
QUARTER ENDING
Year
Year
$348,000
$486,000
REVENUE
COST OF GOODS SOLD
$18,000
$18,000
GROSS PROFIT
$330,000
$468,000
EXPENSES:
Owner's Salary
$48,000
$49,440
Owner Payroll Taxe
$7,344
$7,564
Fixed Employee Wages
$36,664
$80,000
Fixed Employee Taxes
$3,795
$8,280
Supplies
$2,400
$2,472
Ad/Promotion
$3,000
$3,090
Office Expense
$600
$618
Car/Travel
$6,000
$6,180
Acct & Legal
$3,600
$3,708
Rent
$48,000
$49,440
Telephone
$1,200
$1,236
Utilities
$7,200
$7,416
Insurance
$12,000
$12,360
Miscellaneous
$3,600
$3,708
Cleaning Service
$13,800
$1.4,400
Computer Consultant
$1,200
$1,236
Credit Card Fees
$8,700
$12,150
Int - Loam
$9,003
$7,844
Depreciation
$22,905
$23,571
Amortization
$676
$676
TOTAL EXPENSES
$239,687
$295,390
NET PROFIT BEFORE TAX
$90,313
$172,610
INCOMETAX
$31,610
$60,414
NETiNCOME
$58,703
$112,197
PROFIT CENTERS
Sesslors
j Retail
$318,000
$30,000
$411,111
$30,000
TOTAL
$348,000
$486,000
COGS
Sessions
Retail
$0
$18,000
$0
$18,000
TOTAL
$18,000
$18,000 j
The following Summary Income Statement is for
Year 1 and Year 2. The quarterly financial totals
are detailed in the addendum.
Page 15
Max Effect ... A Spinning & Fitness Studio
7.3 Projected Cash Flow
ENDING
Year
Year
CASH INFLOW
Cash Sales
-QUARTER
I $348,000
$486,000
Collection from Credit
$0
$0
TOTAL CASH RECEIVED
$348,000
$486,000
CASH PAID OUT
Cost of Goods Sold
$18,000
$18,000
Owner's Salary
$48,000
$49,440
Owner Payroll Taxe
$7,344
$7,564
Fixed Employee Wages
$36,664
$80,000
Fixed Employee Taxes
$3,795
$8,280
Supplies
$2,400
$2,472
Ad/Promotion
$3,000
$30090
Office Expense
$600
$618
Car/Travel
$6,000
$6,180
Acct & Legal
$3,600
$3,708
Rent
$48,000
$49,440
Telephone
$1,200
$1,236
Utilities
$7,200
$7,416
Insurance
$12,000
$12,360
Miscellaneous
$3,600
$3,708
Cleaning Service
$13,800
$14,400
Computer Consultant
$1,200
$1,236
Credit Card Fees
$8,700
$12,150
Int-Loan 1
$9,003
$7,844
Depreciation
$0
$0
Amortization
$0
$0
SUBTOTAL
$234,106
$289,142
Princ.Pmt-Loan 1
$18,795
$19,954
Capital Purchases
$8,000
$0
Income Taxes
$31,610
$60,414
TOTAL CASH PAID OUT
$292,510
$369,509
CHANGE IN CASH
$55,490
$116,491
Beginning Balance
$17,500
$72,990
Ending Balance
$72,990
$189,481
The following Summary Cash Flow
Statement is for Year 1 and Year 2.
The quarterly financial totals are
detailed in the addendum.
Page 16
Max Effect ... A Spinning & Fitness Studio
7.4 Summary Balance Sheet
The following is the Summary Balance Sheet for Year 1 and Year 2. The quarterly financial
totals are detailed in the attached addendum.
Quarter Ending:
Aug 2014
Aug 2015
Cash
$72,990
$189,481
Inventory
$5,000
$5,000
Current Assets
$77,990
$194,481
Net Fixed Assets
$140,095
$116,524
Net Intangibles
$5,391
$4,715
TOTAL ASSETS
$223,477
$315,720
Taxes Payable
$0
$0
CPLTD-Loan 1
$19,954
$21,184
Current Liabilities
$19,954
$21,184
Long -Term Loan 1
$119,819
$98,635
Total Liabilities
$139,773
$119,819
Common Stock
$25,000
$25,000
Retained Earnings
$58,703
$170,900
Total Owner's Equity
$83,703
$195,900
TOTAL LIABILITY & NET WORTH
$223,477
$315,720
CHECK
$0
$0
Page
Max Effect ... A Spinning & Fitness Studio
7.5 Business Ratios
Ratios: Current Ratio
Quick Ratio
Sales/Receivables
COGS/Inventory
COGS/Payables
Sales/Working Capital
EBIT/Interest
Industry Average
Netw Profit+Depr..Dep..Amort/CPLTD
Fixed/Worth
Debt/Worth
% Profit Before Taxes / Tangible Net Worth
% Profit Before Taxes/Total Assets
Sales / Net Fixed Assets
Sa les / Tote I Assets
% Depr..Dep..Amort/Sales
% Compensation / Sales
8.0 Industry Recommendations17
Suggested Cash Management Strategies
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0%
0.0%
0.0
0.0
0.0%
0.0%
Year 1
4.1
3.8
0.0
3.6
0.0
5.4
12.6
6.3
1.8
2.0
149%
49.1%
2.6
1.5
6.6%
14.5%
Business ratios
for Year 1 of
this plan are
shown in the
table using
industry
profile ratios
based on
Standard
Industrial
Classification
(SIC) code:
611620 -
Sports and
Recreation
Instruction.
Cash will be managed carefully by monitoring cash forecasts on s bi- monthly or monthly
schedule
.A* Bills will not be prepaid unless discounts for early paying are offered
Services will be compefively priced, offering a better value to the customers. Services
will not be undervalued, but fairly priced
-iL Be sure all fees are paid prior to participating - a good tracking system and scheduling
system must be used
Startup cash will be held in reserve to cover any deficits during the first three months of
operation
4 Payroll will be outsourced to a reputable, reliable firm; done on a bi-monthly basis,
payroll taxes will be paid by the professional service rather than paid by the business
owner
-4 Multiple forms of payments such as debit and credit cards will be acceptable
4 New and innovative devices will be used to "swipe" cards when payments are received in
house rather than online, with receipts emailed to the Client
41ts Work closely with the accountant in order to reserve enough cash for tax payments
11 Sageworks Industry Data and Analysis, May 2013
Page 18
Max Effect ... A Spinning & Fitness Studio
Obtain external money for emergency use until cash accumulates in the business - have a
list of investors who would be willing to assist if needed
l Utilize a daily / weekly bookkeeper to keep the bills paid on time; the accountant will
oversee the weekly work on a monthly basis
If cash is a constraint have a sufficient line of credit in place from the bank — then
structure this debt as long term liability in order to reduce cash expenditures especially
until the business is up and running
Suggested Ways to Develop Favorable Profitability Trends
+t Hire qualified staff, increasing the value of the service provided at the Studio
Establish good monthly budgets with cost reduction goals by account, which will be the
Chart of Accounts for the business
Keep a close eye on budgeted income and expenses versus actual income and expenses
Focus on hiring highly qualified instructors to work closely with the Owner and her
dedicated client base
Recognize employees for hard work, giving credit where credit is due
Invest time and money into activities that will yield positive results. For example,
promotion of the business through participation in community events
Work closely with your accountant — become his "best friend" rather than becoming your
"banker's" best friend
Monitor your costs closely; keep them in line with services offered
Once up and running, under the direction of the accountant, offer benefits to key
employees
.L Keep insurance costs to a minimum but have what is necessary
Suggested Sales Strategies
Most importantly, hire adequately trained staff that will add value to the business,
meeting the expectations and interests that Max Effect Clients are seeking
After successful growth is demonstrated in Year 1 management will consider offering
financial assistance to those who cannot afford to pay the standard rate
--i Work to consistently meet the Clients' expectation
dE Find a "niche" in the market and differentiate from others in the local market. People are
willing to pay higher rates if they understand what makes your service "new" and
"different" from others and the continuing value they get after participation
-,,6 Establish uniqueness in the Studio and make it clearly visible
�;6 Clearly define the mission after startup, use it in advertisements
4 Follow branding techniques as suggested by a professional marketing consulting service
Keep open communication with the Studio participants, ensuring a high quality service
-46 Display the staff bios and credentials so Clients get to know everyone
Page 19
Max Effect ... A Spinning & Fitness Studio
9.0 Conclusion
The Owner and her Clients are counting the days until the Studio is open. The biggest obstacle
will be accessing startup funds. The Owner prays this can be done swiftly as she builds the
confidence of all those she is working with to start this incredible business.
Max Effect will be run efficiently without taking exorbitant draws. All expenses will be
budgeted, calculated and planned. As stated early in the plan the biggest cost has already been
incurred — the renovation of the physical space.
A conclusive list has been summarized below as a review of the critical requirements needed.
As stated in this plan literature reveals that proper setup of a studio is critical. These items
should NOT be excluded from startup.
✓ Owner dedication
✓ Certified, skilled, highly motivated instructors
✓ Bikes with performance tracking
✓ Surround sound with microphone
✓ Professional playlist of inspirational music
✓ Controlled ambient lightening
✓ Mirrors
✓ Core strengthening, aerobic conditioning fitness equipment
✓ Online reservation system with efficient scheduling software
✓ Room to grow —layouts for 40 — 80 bikes are included in the addendum
✓ Proper flooring
✓ Adequate parking
✓ Provision of child care
Max Effect business plans do include all of the listed requirements and amenities of a well -
designed studio. In other words, this "new" and "different" innovative concept will meet the
needs of the Owner's established client base and will be set up properly to ensure successful
launch of the business on SEPTEMBER 3ra of this year. Short and long term growth of the
business will be continually managed.
Other instructors with the same vision will be recruited and retained. Max Effect will be a
"community" within itself, while establishing the Studio as a profitable business in this
geographical area. Proceeds will be donated a couple of times a year to local charities to further
promote the business, increasing presence within the business community.
In Good Health,
Carrie Van Orden
Page 20
Max Effect ... A Spinning & Fitness Studio
10.0 Addendum
Photos
Sample Lease
Owner's Resume
Company Financials
Startup Loan Information
Summary Page of Quotes
Itemized Quotes
Layout of Studio
Registered Trade Name
Indemnification Release Hold Harmless Agreement
Client Comments
,l
MAX EFFECT .... A Spinning & Fitness Studio
✓ located near the downtown Iowa City area, in the heart of Iowa City's Riverfront Crossings
District Master Plan, a 10-year beautification project
✓ a "turnkey" facility that appears to be made for the Studio
✓ large parking lot to accommodate 23-vehicles + space for bikes
✓ nicely landscaped and a well lit area
✓ signage would be at the expense of the business owner
✓ Don Goedken is the property owner
✓ Locker rooms —to be offered at a later date
Max Effect: Fitness Room
1,400 sq ft space
Adequate flooring (carpet) — will use mats under
equipment
Wall-to-wall mirrors to be installed
Separate accessible entrance
Adequate lighting
Electrical work includes 3 large wall mounted TVs
Used for STOTT PILATES & Personal Training Activities
Specialty fitness equipment
Max Effect: Spin Room
2,900 sq ft space
Finished cement floor
No offices above or below
Well insulated
Small storage, lockers, and coat hangers
to be installed
Virtually "spin ready" once surround
sound is strategically installed by
Electrician with ambient lighting
N
Office space within the spin side of the facility
One way glass to be installed in each of the
office and child care areas
Utility room —a shower for personal use to be
installed; a washer and dryer, refrigerator
Storage space
Limited child care space
Newly remodeled restrooms are in the
adjoining entry way
Wall space (not pictured) will accommodate
space for digital display of Max Effect events
and class schedules as well as Instructor bios
A drinking fountain would be installed with
easy to fill water bottles
D & S ENTERPRISES to
P.O. BOX 310
IOWA CITY, IA 52244-0310
LEASE - BUSINESS PROPERTY
THIS LEASE AGREEMENT, executed in dupliente, made and entered into this _ day of
By and between: (known as the " Landlord")
Whose address for the purpose of this lease is P.O Box 310IOwa City. IA 52244-0310
And
Whose address for the purpose of this lease is:
(known as the "Tenant')
f. PREMISES AND TERM., The Lmtdlurd, in consideration of the rents herein reserved and of the
agreements and conditions herein contained, on part of the Tenant to be kept and performed,
lesson unto the Tenant hereby rents and leases from Landlord, according to the terms and
provisions herein, the following described real estate, situated in Johnson County, Iowa to Wit:
With the improvements thereon and all rights; easements and apporhommeft thereto belonging, which, more
particularly, includes the space and promises as may be shown on "Exhibit A", if and as may be attached hereto,
for a term of commencing at midnight of the day previous to the first day of the lease
term, which shall be on the _day of and ending at midnight on the last day of the
lease term, which shall be on the _____Any of . upon the condition that the Tenant pays
rent therefor, and otherwise performs as in this lease provided.
2 AENTAL Tenant agrees to pay to Landlord as rental for said term, as follows: $ ner month In
advance, the first rent payment becoming due upon
Strike (a) the execution of Ibis lease; or
One (b) the day of
And all some amount per month in advance outhe FIRST days of each month thereafter, during the term of this
lease.
In addition to the above monthly rent Tenant shall also pay:
All sums shall be paid at the address of Landlord, as above designated, or at such other place In Iowa, or
elsewhere, as the Landlord may from time to time, previously designate In writing.
Delinquent payments shall draw interest at a % per mumin from the due date, until paid.
3. POSSESSION. Tenant shall he entitled to possession on the find day of the term of this lease, and shall yield
possession to the Landlord at the time and date of the close of this lease term, except as herein otherwise
expressly provided. Should landlord be unable to give possession on said date, Tenants only damages shall he a
rebating of the pro ram rental.
4. USE OF PREMISES. Tenant covenants and agrees during the term of this lease to use and to occupy the
leased premises only for.
. For restrictions on such use, see paragraphs 6(c), 6 (d )
and it (b) below.
5. QUIET ENJOYMENT. Landlord covenants that its estate In said premises
And that the Tenant on paying the rent herein reserved and performing all the agreements by the Tenant to be
performed as provided in this lease, shall and may be peaceably have, bold and enjoy the demised premises for
the term of this lease free from molestation, eviction or disturbance by the Landlord or any other persons or
legal entity whatsoever. (But see paragraph 14, below)
Landlord shall have the right to mortgage all of its right, title, and interest in said premises at any time
without notice, subject to the lease.
6. CARE AND MAINTENANCE OF PREMISES. (a) Tenant takes said premises in their present condition
except for such repairs and alterations as are expressly herein provided.
(b) LANDLORD'S DUTY OF CARE AND MAINTENANCE. Landlord will keep the root structural part of
the Door, and other structural parts ofthe building in good repair.
(a) TENANT'S DUTY OF CARE AND MAINTENANCE. Tenant shall, after taking possession of said
premises and until the termination of this lease and the actual removal from the premises, at its own expense,
care for and maintain said premises In a reasonably safe and serviceable condition, except far structural parts of
the building, Tenant will furnish its own interior and exterior decorating. Tenant will not permit or allow said
premises to be damaged or depreciated in value by any act or negligence of the Tenant its agents or employees.
D & S ENTERPRISES
P.O. BOX 310
IOWA CITY, 1A 52244-0310
Without limiting the generality of the foregoing Tenant will make necessary repairs to the sewer, the plumbing,
the water pipes and electrical wiring, except as follows.
And Tenant agrees to keep faucets closed so as to prevent waste of water and flooding of premises: to promptly
take care of any leakage or stoppage 1n any of the water, gas or waste pipes. The Tenant agrees to maintain
adequate heat to prevent freezing of pipes, if and only if the other terms of this lease fix responsibility for
heating upon the Tenant. Tenant at its own expense may install floor covering and will maintain such floor
covering In good condition. Tenant will be responsible for the plate glass in the windows of the leased premises
and for maintaining the parking area, driveways, and sidewalks on and abutting the leased premises on the
ground floor, and if the other terms of this lease include premises so described. Tenant shall make no structural
alterations or improvements without the written approval of the landlord firs had and obtained, of the plans and
specifications therefor.
(d) Tenant will make no unlawful use of said premises and agrees to comply with all valid regulations of the
Board or Health, City Ordinances or applicable municipality, the laws of the State of Iowa and the Federal
government, but this provision shall not be constructed as creating any duty by Tenant to members of the
general public. If Tenant by the terms of this lease is leasing premises on the ground floor it will not allow trash
of any kind to accumulate on said premises In the halls, H any, or the alley or yard in front side or rear thereof,
and it will remove some from the premises at its own expense. Tenant also agrees to remove snow and ice and
other obstacles from the sidewalk on or abutting the premises, if include the ground floor, and if this lease may
be fairly constructed to impose such liability on the Tenant.
7. (a) UTILITIES AND SERVICE. Tenant during the term of this lease, shall pay, before delinquency, all
charges for use of telephone, water, sew", gas, heat, (if heating is Tenants responsibility), electricity, power,
air conditioning (if air conditioning is the Tenants responsibility), garbage disposal, trash disposal and not
limited by the foregoing all other utilities and service of whatever kind and nature which may be used in or
upon the demised premises.
(b) AIR CONDITIONING equipment shall be furnished at the expense of
(Landlord or tenant)
And maintenance thereof at the expense of
(Landlord or tenant)
(c) JANITOR SERVICE shall be furnished at the expense of
(Landlord or tenant)
(it) HEATING shall be furnished at the expense of
(Landlord or tenant)
8. (A) SURRENDER OF PREMISES AT END OF TERM —REMOVAL OF FIXTURES. Tenant agree that
upon the termination of the lease, it will surrender, yield up and deliver the leased promises in good and clean
condition, except the effects of ordinary wear and tear and depreciation arising from lapse of time, or damage
without fault or liability of tenant (see 11(a) and 11 (a) below)
(b) Tenant may, at the expiration of the term of this lease, or renewal or renewals thereof or at a reasonable
time thereafter, If Tenant is not in default hereunder any fixturce or equipment which said Tenant has installed
In the leased premises providing said Tenant repairs any and all damages caused by removal.
(c) HOLDING OVER. Continued possession, beyond the expiatory date of the term of this lease, by the
Tenant, coupled with the receipt of the specified rental by the Landlord (and absent a written agreement by
both parties for a new lease) shall constitute a month to month extension of this lease.
9. ASSIGNMENT AND SUBLETTING, Any assignment of this lease or subletting of the premises or any part
thereof, without the landlord's written permission shall, at the option of the Landlord, make the metal for the
balance ofthe lease term due and payable at once. Such wrote permission should not be unreasonably withheld.
10. (A) ALL REAL ESTATE TAXES, except as may be otherwise expressly provided in this paragraph 10,
levied or assessed by lawful authority (but reasonably preserving Landlord's rights of appeal) against said real
property shall be timely paid by the parties in the following proportions: by Landlord %; by Tenant
(b) Increase is such taxes, except as in the next paragraph provided, above the amount paid during the base
year of (base year if and as may be defined in this paragraph shall be paid by Landlord,
By Tenant_%.
(c) Increase in such taxes caused by Improvements of Tenant shall be paid by Imndiord %; by
Tenant %.
(d) PERSONAL PROPERTY TAXES, Tenant agrees to timely pay all taxes, assessments or other public
charges levied or assessed by lawful authority (but reasonably preserving Tenants rights of appeal) against its
personal property on the premises, during the term of this lease.
• D & S ENTERPRISES 90
P.O. BOX 310
IOWA CITY, IA 52244-0310
(a) SPECIAL ASSESSMENTS, Special assessments shall be timely paid by the parties in the following
proportions: by the Landlord eA; by the Tenant %.
IL INSURANCE, (A) Landlord and Tenant will each keep its respective property interests in the premises and
its liability in regard thereto, and the personal property on the premises, reasonably insured against hazards
and casualties; that is fit, and those Items usually covered by extended coverage; and Tenant will procure and
deliver to the Landlord a certification from the respective insurance companies to that effect. Such insurance
shall be made payable to the parties hereto as their interests may appear, except that the Tenants share of such
insurance proceeds are hereby assigned and made payable to the landlord to secure rent or other obligations
then due and owing Landlord by Tenant. (See also I (a) below)
(b) Tenant will not do or omit the doing of any net which would violate any Insurance or increase the
insurance rates in force upon the real estate improvements on the promises or upon any personal property of the
Tenant upon which the Landlord by law or by the terms of this lease, has or shall have a lien.
(c) Subrogation rights are not to be waived unless a special provision Is attached to this lease.
(it) Tenant further agrees to comply with recommendations of Iowa Insurance Service Bureau and to
be liable for and to promptly pay, as if current rental, any increase In insurance rates on said premises and on
the building of which said premises are a part, due to increased rights of hazards resulting from Tenants use of
the premises otherwise than as herein contemplated and agreed.
(a) INSURANCE PROCEEDS, Landlord shall settle and adjust any claim against any insurance
company under its said policies of insurance for the premises, Had said insurance Moines shall be paid to and
held by the Landlord to be used in payment for cast of repairs or restoration of damaged building, If the
destruction is only partial (see also 11 (a) above)
12. INDEMNITY AND LIABILITY INSURANCE, Except as to any negligence of the Landlord, arising out of
roof and structural parts of the building, Tenant will protect, indemnify and save harmless the Landlord from
and against any and AT loss, cost, damage and expenses occasioned by or arising out of any accident or other
occurrence causing or Inflicting injury and/or damage to any person or an apart thereof by the Tenant or any
person claiming through or under the Tenant. The Tenant further covenants and agrees that It will at its own
expense procure and maintain calamity and liability Insurance in a responsible company or companies
Authorized to do business in the State of Iowa, in amounts not less then $ 100,000 for any
one person Injutcd, and S 500,000 for any one accident, and with the limits of 25,000
for property damage, protection the Landlord against such claim, damages, costs or expenses on account of
Injury to any person or persons or to any property belonging to any person or persons, by reason of such
casualty, accident or other happening on or about the demised premises during the term thereof. Certiflutes or
copies of said policies, naming the Landlord and providing for fifteen (15) days notice to the
Landlord before cancellation shall be delivered to the Landlord within twenty (20) days from the
date of the beginning of the term of this lease. As to insurance of the Landlord for roof and structural faults, see
paragraph 11(a) above.
13. FIRE AND CASUALITY, PARTIAL DESTRUCTION OF PREMISES, (a) In the event of a partial
destruction or damage of the leased premises, which is a business interference, that is, which prevents the
conducting of normal business operation and which damage Is reasonably repairable with in sixty (60) days
i after its uccurrence, this lease shall not torntinate but the rent for the leased premises shall abate during tine time
of such business Interference. In the event of partial destruction, Landlord shall repair such damages within 60
days of its occurrence unless prevented from so cluing by acts of God, the elements, the public
enemy, riots, Insurrection, government regulations, city ordinances, labor, material or transportation sbortages
or other causes beyond Landlord's reasonable control.
(b) ZONING Should the rasing ordinance of the city or municipality in which this property is located
make It Impossible for landlord, using diligent and timely effort to obtain necessary permits and to repair and/or
rebuild so that Tenant is not able to conduct its business on these premises, then such partial destruction shall be
treated as a total destruction as In the next paragraph provided.
(c) TOTAL DESTRUCTION OF BUSINESS USE, In the event of a destruction or damage of the
leased premises Including the parking area (if a parking area is part of the.subject matter ofthe lease) so that
Tenant is notable to conduct its business on the premises or the then currant legal use for which the premises
are being used and which damages cannot be repaired within sixty (60) days this lease may be
terminated at the option of either the Landlord or Tenant Such termination is such event shall be effected by
written notice ofone party to the other, within twenty (20) days after such destruction, Tenant shall
surrender possession within ten (10) days after such notice issues and each party shall be released
from all future obligations hereunder, Tenant paying rental pro rate only to the date of such destruction. In the
event of such termination of this lease, Landlord at its option may rebuild or not according to its own wishes and
needs.
14. CONDEMNATION, (a) DISPOSITION OF AWARDS, Should the whole or any part of the demised
premises be condemned or taken by a competent authority for guy public or quasi.publice use or purpose, each
party shall be entitled to retain as its own property any award, payable to it. Or in the event that a single entire
award Is made on account of the condemnation, each party will then be entitled to take such proportion of said
award as may be fair and reasonable.
D & S ENTERPRISES to
P.O. BOX 310
IOWA CITY, IA 52244-0310
(b) DATE OF LEASE TERMINATION, If the whole of the demised premises shall be soon condemned
or taken, the Landlord shall not be liable to the Tenant except and as Its rights are preserved as In paragraph 14
(a) above.
15. TERMINATION OF LEASE AND DEFAULTS OF TENANT, (a) TERMINATION UPON
EXPIRATION OR UPON NOTICE OF DEFAULTS. This lease shall terminated upon expiration of the
demised terms or if this lease expressly and in writing provides for any option or options, and If any such option
is exercised by the tenant then this lease will terminate at the expiration of the option term or terms. Upon
default lit payment of rental herein or upon any other default by Tenant in accordance with the terms and
provisions of this lease, this lease may at the option of the Landlord be canceled and forfeited, PROVIDED
HOWEVER, before any such cancellation and forfeiture except as provided in 15 (b) below, Landlord shall give
Tenant written notice specifying the default, or defaults and stating that the lease will be canceled and
forfeited ten (10) days. After the giving of such notice, unless such default, or defaults are remedied
within such grace period. (See paragraph 22 below), As an additional optional procedure or as an alternative to
the foregoing (and neither exclusive of the other) Landlord may proceed as in paragraph 21 below, provided.
(b) BANKRUPTCY OR INSOLVENCY OF TENANT, lit the event Tenant is adjudicated a bankrupt
or in the event ofa judicial sale or other transfer of Tenants leasehold interest by rensou by any bankruptcy or
insolvency proceedings or by other operation of luw, but not by death, and such bankruptcy, judicial solo or
transfer has not been vacated or set aside within too (10) days from the giving of notice thereof by landlord to
Tenant, then and in any such events. Landlord may at its option Immediately terminate this lease. Re-enter said
premises, upon giving of ten (10) days written notice by Landlord to Tenant, all to the extent permitted by
applicable law.
(c) In (a) and (h) above waiver as to any default shall not constitute a waiver of any subsequent default
or defaults.
(d)Acceptance of keys, advertising and re -renting by the Landlord upon the Tenant's default shall be
constructed only as an effort to mitigate damngw by the lit dlord, and not as and agreement to terminate this
Jesse.
16. RIGHT OF EITHER PARTY TO MAKE GOOD ANY DAFAULT OF THE OTHER, If default shall be
made by eilher party in the perform once of, or compliance wi0y any of the terms, covenants or conditions
of this lease and such default shall have continued for thirty (30) days after written notice thereof front one
party to the other, the person aggrieved, in addition to all other remedies now or hereafter provided by law,
may, but need not, perform such term, covenant or condition, or stake good such default to any amount
advanced shall be repaid forthwith on demand, together with interest at the rah of %per
annum, from date of advance.
19. SIGNS, (a) Tenant shag have the right and privilege of attaching, affixing, painting or exhibiting signs on
the leased premises provided only (1) that any and all signs shall comply with the ordinances of the city or
municipality in which the property is located and the laws of the State of Iowa; (2) such signs shall not
change the structure of the building; (3) such signs if and when taken down shall not damage the building;
and (4) such signs shall It subject to the Written approval of the Landlord, which approval shall not he
unreasonably withheld.
(b) landlord during the last ninety (90) days of this lease, or extension, shall have the right to maintain in
the windows or on the building or on the premises either or both a -For Rene' or "For Sale" sign and
Tenant will permit, at such time, prospective tenants or buyers to enter and examine the premises.
18. MECHANIC'S LIENS, Neither the tenant nor anyone claiming by through, or under the Tenant, shall have
the right to file or place any mechanic's lien or other lien of any kind or character whatsoever, upon said
premises or upon any building or improvement there on, or upon the leasehold interest of the Tenant
therein, and notice Is hereby given that no contractor, sub -contractor, or anyone else who may furnish any
material, service, or labor for any building improvements, alterations, repairs or any part thereof, shall at
any time be or become entitled to any lien thereon, and for the further security of the Landlord, the Tenant
covenants and agrees to give actual notice thereof In advance, to any and all contractors and sub-
contractors who may furnish or agree to furnish any such materials, service or labor.
19. LANDLORD'S LIEN AND SECURITY INTEREST, (a) Said Landlord shall have, in addition to the lieu
given by law, a security Interest as provided by the Uniform Commercial Code of Iowa, upon all personal
property and all substitutions therefor, kept and used on said premises by Tenant, Landlord may proceed
at law or In equity with any remedy provided by law or by this tease for the recovery of rent or for
termination of this lease because of Tenant's default in its performance.
(b) SPOUSE: If spouse is not a Tenant then the execution of this instrument by the spouse shall be for the
sole purpose of creating a security interest on personal property and waiving rights of homestead, rights of
distributive share, and exemptions
20. SUBSTITUTION OF EQUIPMENT, MERCHANDISE, ETC. (a) The tenant shall have the right from time
to time during the term of this lease, or renewal thereof, to sell or otherwise dispose of any personal
property of th Tenant situated an the said demised premises, when In operation of the business on said
premises; provided, however, that the Tenant shall, in such instance (unless no substituted article or item is
necessary) at Its own or greater value and adapted to the affixed operation of the business upon the demised
premises.
D & S ENTERPRISES to
P.O. BOX 310
IOWA CITY, IA 52244-0310
(b) Nothing herein contained shall be construed as denying to the tenant the right to dispose of inventoried
merchandise on the ordinary course of Th Tenant trade or business.
21. RIGHTS CUMULATIVE, The various rights, powers, options, elections and remedies of either party,
provided in this taase, shall be constructed as cumulative and no one of them as exclusive of th others, or
exclusive of any rights, remedies or priorities allowed either party by law, and shall In o way affect Impair
the right of either party to pursue any other equitable or legal remedy to which either party may be entitled
as long as any default remains In any way unremodied, unsatisfied or undischarged.
22. NOTICES AND DEMANDS, Notices as provided for In this lease shall be given to the respective parties
hereto at the respective addresses designated on page one of this lease unless either party notifies the other
in writing, of a different address. Without prejudice to any other method of notifying a party in writing or
making a demand or other communication, such message shall be considered given under the terms of this
lease when sent, addressed as above designed, postage prepaid, by registered or certified mail, return
receipt requested, by the United Status mail and so deposited in a United Stated mail box.
23. PROVISIONS TO BIND AND BENEFIT SUCCESSORS, ASSIGNS, ETC, Each and every covenant and
agreement herein contained shall extend to be binding upon the respective succeasmx, heirs, administrators,
executors and assigns of the parties hereto; except that of any part of this (ease is held in joint tenancy, the
successor interest shall be the surviving joint tenant.
24. CHANGES TO BE IN WRITING, None of the covenants, provisions, terms or conditions of this lease to be
kept or performed by Landlord or Tenant shall be in any manner modified, waived or abandoned, except
by a written instrument duly signed by the parties and delivered to the Landlord and Tenant. This lease
contains the whole agreement of the parties.
25. RELEASE ON DOWER, Spouse of landlord appears as a party signs tuey to this lease solely for the purpose
of releasing dower, or distributive shared, unless said spouse is a CO -owner of an interest in the leased
premises.
26. CONSTRUCTION, Words and phrases herein, including acknowledgment hereof shall he constructed as In
the singular or plural number and as museeline, feminine or neuter gender according to the context.
LANDLORD
TENANT
DATE
DATE
TENANT DATE
Carrie Van Orden
807191 Avenue
Coralville, lA 52247
319.631.1586
OWNER & FACILITY MANAGER BIOS
CERTIFICATIONS
September 2013
Spinning Certification
Niles, Illinois
August 2013
IDEA World Fitness Convention
Los Angeles, California
August 2013
STOTT PILATES Matwork Certification
Los Angeles, California
August 2013
EVO Certification
Concept 2 Rowing Certification
Los Angeles, California
October 2012
AFAA Recertification Personal Trainer
October 2012
EMPOWER
AFAA Weekend Fitness Celebration
Chicago, Illinois
August 31, 2012
CPR Training - American Heart Association (AED); University of Iowa
April 2010
AFAA Certified Personal Trainer
Aerobic and Fitness Association of America
January 17, 2010
CPR Training - American Heart Association (AED); University of Iowa
June 28, 2009
Training Seminar with world renowned Max Strom
Director & Creator of Sacred Movement, center for yoga and healing
Los Angeles, California
Week -end seminar offered by Freestyle Yoga Academy, Iowa City, Iowa
Strength, Grace, and Healing
Learn to Breathe, to Heal Yourself and Your Relationships
June 2009
Certified Yoga Teacher, RYT
Yoga Alliance
Completion of 200 hours nationally recognized training requirement. JR Miller Freestyle Yoga
Academy, Iowa City, Iowa. Training includes the following techniques: Asanas, Vinyasas,
Pranayama, Meditation, and Kriyas. Freestyle Hatha Yoga - study of fundamental technology that
exists beneath all approaches. Yoga Alliance Registration - application pending. Certification
states that Yoga Alliance / Yoga Teacher Standards have been met. Educational and experience to
date qualifies for Registered Yoga Teacher (RYT)
January 2009 - June 2010
STOTT PILATES Instructor Training
Matwork & Reformer
Completion of Level 1 (Essential and Intermediate) course work and workout composition, with
written and practical examination test date pending for completion of Cadillac Chair & Barrels
(CCB) instruction.
The following instruction has been obtained from GIGI's Pilates Studio, Des Moines, Iowa. This
STOTT PILATES training center is fully equipped and licensed.
Intensive Reformer (IR). Completion of 50 hours Instruction & supervised training; 10
hours observation, 40 hours physical review, 25 hours practice teaching
• Intensive Mat Plus (IMP). Completion of 40 hours instruction & supervised training, 10
hours observation, 30 hours physical review, 15 hours practice teaching
This reformer and matwork resistance training enhances torso stability, peripheral extremity
conditions for effective reformer and combined
Matwork and reformer training includes visual skills, verbal cueing and imagery for performance
and client motivation
EMPLOYMENT
January 2010 to present
October 2008 to October 2010
July 2009 - April 2002
March 2002 -January 2001
October 2000 - October 1998
Personal Trainer & Group Exercise Instructor
University of Iowa Recreational Services
Iowa City, IA 52240
Pilates Instructor / Yoga Therapist
Time of your Life
Fitness & Physical Therapy, LLC
526 Southgate Avenue
Iowa City, Iowa 52240
Medical Billing Collection Manager
Provider Resource, Inc.
321 E. Market St., Ste. 101
Iowa City, Iowa 52245
REALTOR
Coldwell Banker
Rochester, Minnesota
Leasing Agent
Lincoln Real Estate
Iowa City, Iowa
a m
o
o a v m
W
o 0
0
0
0
W O W N
aoa mrn
N
N W W M
.:� mm
O O
oww!
Q
N
r
t9
wW w W w a
m
N A
W
m
a
IE
y5
C
�
n o r ram
o 0 0
R
0
o m
m
m
o
p c
M o M v ma
m
m m
W
o n
r
W
C
01
a
fwp � fmO M
A
O N O�
N NV
m
N
rNN
E
m
S cp
C 0
W
m O m O M
m O m m
O
m
O w w W
W W W m
f0
O 10
0 0
�[I
C
O
m
O
f9
=
() ,O O N
N O N O
m
W W
W
O r
n
W
LL
w
N�
M
N N O
N
N-
S ®�
M fA M
fw0
M
fw0
E
ac j!
aEaLo
E
O N N N
W
O W W N
W
O O
O
W
O
N
N N
N N
O
01 C 3 W
O
O
N M n N
Yr1
w
fa).
N N v
W
V
{w0
N
{wO
I[
Wa
CZ
« « «
NH
«
«
Om0
«
NfJ3
o0o m
n
aaa wM
oMM
r
o
M.- o
m
E O
,
w o w w a
n
w m W
n
o 0
o
n
w
E
N N O ufl
M
M M
OI
b 06
PY
nJ
^N^
M
O
® L
ape u
v
w W W m
m
o n r o
m
W W
o
m
Q
m
vi
m c o c
r-c3w
a
n O n W O
N
O W W W
O
N
O
n
w o W m M
m Q m r :It
v
us W W a
M M W
Cl
Q o
o
o
v
eJ
N
N
N T Pl Yl
W
W O] OI
W
W N
O
W
W
t
N
di
i9
fA
f9
W
c
W
W
M
W O W M W
O m m W
a
O n
r
O
m
W O W W W
N O N M m
W
W
f9 r r w
0 W
r
W
O
O (z
m
W
m
M
O
W W Ol
fp
C
W W V
M
17 r
N
m
W
mo
Z92
L
U)
c
v
c
LOU
W
W
x
c
W
F
LL
=
u
w
F
O
r'wg S%
N
la- v
¢ N
Q
a c -� J
N
c E
3
12L
id W
¢
J
m c c
J
N W
O
Y
E a a
9c�
o f v c
8
F
CL J m
p
O 0
Q
W
Zia
ti
p
U c
F
E c
F
F
ca
va m
%
m
U- Z Z
F IL
ULL'
U ILL O
M
0
N
N
3
i
mmaryoa0000
m rmmdnN�6
Q}
N
T
I
i
iN
r
0006ddd
C
m
S
m
m
W
N
8
m
a
-mfa.rymoaoao
O
a
a�
z
S
a
N
�
9
ma
o a m
p ON
�
o
N
o v v m
M m m M
m
o M
0 0
0
0
0
N
n
f9
v o v m n
r
m
m
o w
m
Q
0
NWcs
W
m
fq f9 N
f9
a
m
o m
m
aa
f9 f9 f9
M
f9
f9 f9 Vi
f9
N
V! 'N
W
M
tlf
W O w N m
a
m v m
r
�
� O a m
Yl 16 O O V
6
O w N
N 0-W N
N
m
O
m N
A
Q
b
f9 f9 f9
M
Yi
f9 f9
!9
f9
M
f9
f9
M
f9
m
A o r ram
o o 0
0
omm
m
o
w O W m
w
q
tl! r I
N
O r
r
W
f9
M O M v m
m
w
m O
w
O r
r
m
W
O H Yl N V
N
O O V
V
m N
A
N
g
m !9 m N tl!
w
N N O
N
N Q
m
w
I§
`� c
%ow CIo
R
onm mm
ova
c
•�
c m v v
o 0 o m
ru
h M
m
vi
.�
Q
m f9 m N W
W
N M O
M
N M
m
m
W
LUyy
r m Q &
���'�• � 'P
�
0 0 0 m r
N
m M m m
m
O l�
r
N
O
m y.a
.0
M O M a w
0 0 0 M w
A
M
.M m W
O m tD 0
M
O
R 0 0
m
O
r
M
f9
W
N
OE¢$
n
o O W
m O m m
W
m
!A m m m
V
O O
r
O
r
m
m
(9
N O N O
m
°n m m
m
O
Wp C N
d
Iq f0 f0 m
Oi
O O Oi
O1
W
d
LL
M tl! M N fA
N
�� O
N
�
M
N
O
W
O
6
d
M O m r
mom m N L
O
m m `
O O
m
O m
m
M
O
wE
p
m m O N
N
O O O .
. m
O
N
�3C
-�
Ol
V
O
m
E a O d
q
b
mow mmm
m O m N
N
Nmm w
M
O M q
N
o
O q
q
m
N
eal
• m G
Q
f9 N m (9
m
(9 N N
M
N m'
m
7 emu
m spa
�w3 0
I
o m o
r
u�mm v
w
o m
m
r
ea
O N N N
m
N N m
m
O m
OR
m
v o v rmm
o v v m
o
m w
w
w
o
ror m r
W
v c w r
MLq
r
o
O
v
M
C
en
�
V O v N
O
O G
r
N
m
m
N Yi r m m
m
O fD
m
m
�
N
� f9 f9
f9 f9
N
W
m
v
O N m
m
m C N N
V
O Q
O N
Y
N
m
m
O
f9
pM
Cl O M � m
r O r M
W
r O
O O O
c
O O
O
LL
r Y] N EC m
m
�J O Yl of
M
m m
m
m
OCIO
N WM M f9
N
f9
V
N
ri 6 v3
r
m
}
2
F
Z
•�
f
W
V1 m
W
O
W
Q
W w m
m d ' f0 O
Q H e
a
p
O
9 W
Ill
Z
N.12
E
n
OE
c
W
2
U
E SZU
r
F
O Q d
dZm
N UE ZZ
I HU
CJ
U CL
C�
Crltical Assumptions
Max Effect
5/31/2013
This template was created by the SBDC SD and Is licensed for use by the organization listed above. (c) SBDC SD. Available at SBDCTooI&6M2/2013 11:07 AM
92
O
N
m m m n w N n O m m Q O O W m m m
N
W O
W
W
O O
O O
00
N
W ` N O O C O ` O iV Vl 1: a} O fV lV fG
G
m 0 OI
m
m
O
O O
A`y„d
Ww,
m N
W
•r(
VI
O O
O
O Q Q N O O O O O O O O O O O O O m w
o e m
m
n m O
O
O
O O
O O
M
N
O O
0
O
m
O W m n e O m O m O N N O m m N n O W
H
m
H
m m m
O O
O
O O
Q
O
6] n m m N w b t0 m n Ng (O W 0 N
Ol
O
(O
O
0 !O
pl
e �
co
a
O
Wm0mQNOw
O
SOO
NH
C..
mN
HO Wcl!On
m
m
H
6
�
y
»
H
H
Q
O
Op
O
O
'N-yq
HwCIL
M H g q
O m
m
HO OO
m
OO
m
w
H H w H H H
y
O
O o
O
O o
o
O m Q o m m O O O o O o O O O m N m m
w
o
O o
O
H o
O
N
ry
H H H tll H w H ma in mH O' W H
W
m O
O m
m
m
N
l
O
ww H
0
NH
Q Cj
H H N
O
rtl Cl
m N
O
m
O O
O
O N W w O{� N{y N O O O O O O O O O mm H1 b N
a
W O
Sffi
O O
O
OH O
O
t
N om! U H tl! H 02 wH NC'L nw W H
O
Q
m O
:1ii
O m
m
m
m
"omH
H w
Vi H N
ww mH
NH
p
H
H
H
H
H
6 C
me=�
;
wmN On
L dIE
N
O
O C. tQN N W VO{OOOO -Cnw H
Q
N OI(.y.
O
o
H
m ni
ac ri
.614
o
d T L
H
H
H
H
H
a
N
H
N
N
O
Oi
e H H H H H H H H H H H N
O
m O1
co
m fV
Yml
O
to
E n�
g
0• w
Nw
H w w H in H
NH
HH
,'�:
nH
wH
wH
v
O!e
OO O
O O O O Q W m
mw
C
>'
O O
O
YmC
C
y
L'i N
mO
HNOm HO HO HO HO HO
HNOO Hw
NWlm
CW' Yi tlf
mN
ww
mm
O
mO
m
E m O
LL
m H
N
a 'I
H w H H H N
N
wH
{w� NH
om
y
H
IIW n
m
E E
§v
w@ Qc
mo 0
0
O
0 twv v o n m o 0 0 0 0 0m 0 o m m
m
v
m m
o 0
0
mw 0
0
m mw
H m O O m m m N N m N n nn m H
O 0 la
m
m O
O m
m
m
m
bi tl!
OH-
s g
wryH H�
H
H
H
�
yW
O
OO
O
OOm
OOWOyOOOm
mH
Om
wO
L'i
O
H m m
I9
wC
Om
m
mOO
e H H H H fff999
w
w W
:ih
NO
O
m
VVii
o a
o
a N o m w m
wO W m o m o m o 0 o m w m m
m N
O
1 ^
O m N N N N H b W O m m O N O m m N
M
{w�
O
H N
N
fm9 A
H H w H H H w H H H
m ONl
�'PT.�'
Yml
Yml
gH
H
mH NH
Wf NH
H
H
H
Oy{yy�� O O m o o O O O O O W W
y
N N
W
{y w m wH M" nnm m ww
V N NH N H
WN
ONl
n
O
NV
b
H 2
N
Wy
H
NH
H p H L H H
H H H H H
ci
17
H
t
H
W
H
H
M
H
H
O
O
C
O O
O
O N O W OO
Oy-
:tlF
O
O O
W
m m
O
m OwO
Cl
OOO mOO
OO
m
s'yWFj
md
NO
Nm H H wO wO HO HO
HO HO
HO
H
LLmE
NO HO
H
H
19 w H
y
H
.
H
m Q m
am
Y
m wn m
o
N O N
twq
O O
m
m
Z
OJae
m m
m
O
w
mO
p
F
W 2 =pp o c e Z V c c
in �' m
m
M
w
w
.: w
r
H a
0
E m m$- a'
$ c �q
F x
z
E N
LL
a
$ c a a n a $ a @$ m n @ a
u�
O W
O
v
m
m=
O
z O
m
m
rwii
Z 3 x 0 E: m m m= a m m o m' E
E¢
¢ 2
a'
~
o
m a
Z
LL
w F
W O u u m¢ 0 0 ¢ K i- E a O O O
O
LL
m-
'm �q
¢
¢
w o
a
�c('
O
W O
w
N vN a�i
o
C) v Si
o
v Z
w O
[7
W
F-
Z z
` a
m O: 1-
U m K I-
Uu O
k
#
[!|
a
m§
�)NO
!m■
-_
!■
l 1
�§,,
.
�£leo
I.lC
.
§moww
§§W-
,!|■
,-|-
!§ �-
ac0
|- k
--
�!!!
`
)
�
®L
AN
`
�� j
!
�
g■|a
,
£
§»�J
!kk
J9
{�!
F]2
!
;#
-
■ -
k
�IL
§
°
/
§
Ek/
.2,
a�0
E
LOAN INFORMATIOR
LOAN 1 n LOAN 2
SOURCE OF LOAN:
TBD
SOURCE OF LOAN:
name
NEW OR EXISTING LOAN:
new
NEW OR EXISTING LOAN:
new
SBA 7(a) GUARANTY? (Yes/No)
yes
SBA 7(a) GUARANTY? (Yes/No)
no
BEGINNING MONTH:
1
BEGINNING MONTH:
7
MONTHS INTEREST ONLY:
0
MONTHS INTEREST ONLY:
0
AMOUNT OF FINANCING NEEDEC
$155,000
AMOUNT OF FINANCING NEEDED:
$0
SBA LOAN GUARANTY FEE:
$3,568
SBA LOAN GUARANTY FEE:
$0
TOTAL FINANCING:
$158,568
TOTAL FINANCING:
$0
ANNUAL INTEREST RATE:
6.00%
ANNUAL INTEREST RATE:
0.00%
TERM (IN YEARS):
7.0
TERM (IN YEARS):
0.0
MONTHLY PAYMENT:
$2,316A5
MONTHLY PAYMENT:
$0.00
N
N
m
.O
1
a)
O
CL
a
O_
a7
ci
P
fy
LO
N
6%
I
O
r
6%
O
O
N
O
O
Ne»
F-
n
04
CD
M
r
`a
}
Cl)
tO
M
p
0r1
P,
r�
rn
m
C
0°
n
v
o
O
N
O
N
O
a0
W
m
N
EA
m
H
O
�
IL
IL
a
N
a,
N
_
C
C
�
�
Q
a
3
U
z
p
w
rn
'S
O
,
c
0
z
z
a
N
m.+
LLa
w
m
o
a)
ui
Q
F
a1
N
a01
a
O
Z
a)W
LL
°'
rn
U
c
c
m
m
m
c
ur
n
a)N
a7
a)
O
N
s
N.
N
m
U
❑
U
r
f6
U
a
a
ai
m
f6
o
a
U
3
O
m
0
Q
�
C
Z
H
❑
N
I-O
Z
+
+
+
11
11
FINANCIAL STATEMENT:
Date Prepared
Ratios
SIC/NAICS Code:
0
Industry
Average
Year
Year
Net Sales:
$348,000
$486,000
Total Assets:
$223,477
$315,720
Cash & Equivalents
0.0%
32.7%
60.0%
Accounts Receivable
0.0%
0.0%
0.0%
Inventory
0.0%
2.2%
1.6%
Other Current
0.d%
0.0%
0.0%
Total Current Assets
0.0%
34.9%
61.6%
Net Fixed Assets
0.0%
62.7%
36.9%
Intangibles
0.0%
2.4%
1.5%
Other Non -Current
0.0%
0.0%
0.0%
Total
100.0%
100.0%
100.0%
-iabilities: Notes Payable -Short Tenn
0.0%
0.0%
0.0%
CPLTD
0.0%
8.9%
6.7%
Accounts Payable
0.0%
0.0%
0.0%
Income Taxes Payable
0.0%
0.0%
0.0%
Other Current Liabilities
0.0%
0.0%
0.0%
Total Current Liabilities
0.0%
8.9%
6.7%
Long Tenn Debt
0.0%
53.6%
31.2%
Deffered Taxes
0.0%
0.0%
0.0%
Other Non -Current Liabilities
0.0%
0.0%
0.0%
Net Worth
0.0%
37.5%
62.0%
Total Liabilities & Net Worth
100.0%
100.0%
100.0%
ncome Data: Net Sales
100.0%
100.0%
100.0%
Gross Profit
0.0%
94.8%
96.3%
Operating Expenses
0.0%
66.3%
59.2%
Operating Profit
0.0%
28.5%
37.1%
All Other Expenses
0.0%
2.6%
1.6%
Profit Before Taxes
0.0%
26.0%
35.5%
Year 1
Year 2
tatios: Current Ratio
0.0
3.9
9.2
Quick Ratio
0.0
3.7
8.9
Sales/Receivables
0.0 0
0.0 0
0.0 0
COGS/Inventory
0.0 0
3.6 101
3.6 101
COGS/Payables
0.0 0
0.0 0
0.0 0
SalesNVorking Capital
0.0
6.0
2.8
EBIT/Interest
0.0
11.0
23.0
Net Protit+Depr., Dep., Arnow CPLTD
0.0
5.7
9.3
FixedNVorth
0.0
1.8
0.6
Debt/Worth
0.0
1.8
0.6
% Profit Before Taxes / Tangible Net Worth
0.0%
115.3%
90.3%
% Profit Before Taxes / Total Assets
0.0%
40.4%
54.7%
Sales/Net Fixed Assets
0.0
2.5
4.2
Sales/Total Assets
0.0
1.6
1.5
% Depr., Dep., Amort/Sales
0.0%
6.8%
5.0%
% Compensation/Sales
0.0°%
13.8%
10.2%
1
Sources & lases of Funds Statement
Sources of Funds: (where you will get the money to fund your project)
Equity (money or assets owners/investors will provide)
Cash Injection $25,000
Total Equity Contribution $25,000 14%
Debt (borrowed money)
New Loans $158,568
Total Debt Contribution $158,568 86%
Total Sources of Funds $183,568
I! Uses of Funds: (what you'll use the above funds fort
Fixed Assets:
Equipment & Machinery
Furniture & Fixtures
Organizational Expense
Loan Fees
$150,000
$5,000
$2,500
$3,568
Total Long Term Assets $161,068
Inventory $5,000
Working Capital (Cash) $17.500
Total Uses of Funds $183,568
This template was created by the SBDC SD and Is Iloensed for use by the organization listed above. (c) SBDC So. Available at SBDCTcols.$Bt212013 11:07 AM
Max Effect ... A Spinning & Fitness Studio
SUMMARY OF LOAN SOURCES
CASH INJECTION BY OWNER
Private Investments or loan to owner
SBA LOAN GUARANTEED BY HILLS BANK & TRUST
Loan Fee
Economic & Development Grant Program
depending upon availability of funding
SUBTOTAL OF FUNDING SOURCES
+ Line of credit if needed
TOTAL STARTUP FUNDING
$25,000
$155,000
$3,568
$5,000
$188,568
$25,000
$213,568
Max Effect ... A Spinning & Fitness Studio
SUMMARY OF ITEMIZED QUOTESi
42 Fitness Bikes, delivered
$58,260.43
Fitness Equipment, delivered
$41,893.87
Floor Mat, 8 mm gray
$814.16
Electrical
$14,056.23
including sound system @ 2500.00
Including 5 tv's
Mindbodyonline scheduling software
$1,000.00
including hardware to process pmts
Drinking Fountain
$2,000.00
Advocare products
$2,500.00
Storage containers, coat hangers, lockers
Office and child care furniture
$5,000.00
Computers & software
$2,000.00
including I -pad & OR Droid
Glass, window, mirror installation
Benson & Hepkar (logo, signage, biz card,
$1,500.00
brochure, newsletter design)
web consulting & Initial printing
Signage, fabricated & installed
$3,000.00
Appliance Expense
Including side by side refridge & w&d)
$1,500.00
Spinning certification
$2,500.00
including travel to IDEA Fitness Conf
STOTT PILATES
$5,000.00
Miscellaneous items such as first aid kit
$2,000.00
Including towels, water bottles,
cleaning sanitizer, T-shirts
Grand opening expense
$1,000.00
Display monitor & display case
$750.00
Keyless entry
$3,000.00
Operating capital
$40,748.31
TOTAL STARTUP COSTS TO DATE $188,SZS.00
1 Itemized quotes are available upon request, to be finalized
k§
/§
m
k
/
/
§
.
a.
/»1
g-
�
�-
�=
\§
G
1
Q
CT K
— W
(�
o 19z
Z
2Q
W N
�y�7g�
�tlm"' ll
3=1
mg
�a
�p�py
+.1
W
LL
O
Vl N
N Y
�p7p
W-�N
aNYaB ll
�II�-9
C� t
N O
Lr
1
�
O
aNm": -d
dN°m ll
ma
W
of
W-1
Q
0
-
--
I
I
IIE 19E
E
a
` U
Jk� 7
I I V V I
L
3
0
N
4
a
OWN
0111.1sell ,un in.......
"' •^� „.,1 mn'Jill snn unc IRII11111 Hilil lHil fll!I IIII IIII
Doc ID: 022957240001 Type: COR
Kind: TRADE ME
Recorded: 06/OB 2013 at 12:04:13 PM
Fee Amt: $7.00 Page 1 of 1
Johnson County Iowa
Kim Painter County Recorder
BK5'�02 PD964
Prepared by. �ofrw va�� -" 01 i IOfA1JII
In vdu s Name —Street) dress Ave,ryl'Slatel 1—
Return Documents to: S O_4,v,_p_ 6�C n
TRADE NAMES
Verified statements of person or co -partnership conducing a business under a trade name or assumed name. (Chap-
ter 547, Code of Iowa)
STATE OF IOWA, J c IN n S a va._ County, its.
i (we! L c
lo3 t - I S ? (o
In compliance with the provisions of Chapter 547, ,A Code of Iowa, being dul sworn depose and say that the business
conductedortobeconducted underthetrade nameof M x.E P_c--: A SDinri,na °r Ft�'y�2SS
Si uc�? i o the business dddreq,,
of h Is
is t 3 41:1 b-e-C+ CA %) r } Street, i o tiJ a C'1-t-v IowaIn
the above named county, is owned by the following person(s):
Name of Persons coming P.O. Address Residence Address
or Having Any Interest in the Business
Cw +N A viii
and we hereby establish or amend as follows:
j Establish Trade Name mil'
file or document #
❑ Dissolve
Original file or document ¥
❑ Withdrawal of name(s) of PE
Original file #
❑ Add name(s) of Partner(s)
°4'
Date
J
Date
Date
Original .file # Date
❑ Change of Address _Business Home
And that there is no one except those mentioned In the foregoing list who owns or has any interest In the above
named business.
J further certify that a corrected statement will be filed in the future each time there may be any
change in ownership, as provided by secticn 547.2, Code of Iowa.
Signed this �h day of J J II-) E Q t
S+X) A a
Subscribed in my presence and sworn to before me by the said CuY1 -Po=mcurh Van fd(x)
this day
. zmd
o4
'� CARRIE DIET p r��III and for Q County, Iowa.
(. ' ' OFFICE OF THE ✓
-1-- jOHNSON CO. RECORDER
547,1 USE OF TRADE NAME -VERIFIED STATEMENT REQUIRED.
A person or copartnership shall not engage in or conduct a business under a trade name, or an assumed name of a character
otherthan the true surname of each person owning or having an Interest in the business, unless the person first records with the
county recorder of the county in which the business is to be conducted a verified statement showing the name, post office
address, and residence address of each person owning or having an interest in the business, and the address where the business
Is to be conducted. However, this provision does not apply to any corporation or limited liability company incorporated or
organized In this state or any foreign corporation or foreign limited liability company authorized to do business in this state or
doing business!pdrsuantto an exemption in chapter 490 or490A.
[C27, 31, 35, § 9866-al; C39, § 9866.1; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 547.1]
89 Acts, ch 102, § 3; 96 Acts, ch 1170, §23 Referred to In § 488.108 Foreign limited partnerships, see § 488,905
547.2 CHANGE IN STATEMENT.
A like verified statement shall be recorded of any change in ownership of the business, or persons Interested in the business and
the original owners are liable for all obligations until the certificate of change is recorded.
[C27, 31, 35, § 9866-a2; C39, § 9866.2; C46, 50, 54, 58, 62, 06, 71, 73, 75, 77, 79, 81, § 547.2] 89 Acts, ch 102, § 4
547.3 FEE FOR RECORDING.
The county recorder shall charge and receive a fee in the amount specified in section 331.604 for each verified statement
recorded under this chapter -The recorder may return the original Instrument to the sender or dispose of the Instrument if the
sender does not wish to have the instrument returned. An Instrument filed In the recorder's'office before July 1,1990, may be
returned to the sender or disposed of if the sender does not wish to have the instrument returned and if there is an official copy
of the Instrument in the recorder's office.
[C46, 50, 54, 50, 62, 66, 71, 73, 75, 77, 79, 81, § 547.3] 85 Acts, ch 159, § 4; 89 Acts, ch 102, § 5; 90 Acts, ch 1021, § 4
547.4 PENALTY.
Any person violating the provisions of this chapter shall be guilty of a simple misdemeanor.
[C27, 31, 35, § 9866-a3; C39, § 9866.3; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 547.4]
547.5 "OFFENSE" DEFINED.
Each day that any person or persons violate the provisions of this chaptershail be deemed to be a separate and distinct offense.
[C27, 31, 35, § 9866-a4; C39, § 9866.4; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 547.5]
As a service to the public, this office has added the above copy of the
Trade Name and Copartnership Law from the Iowa Code, 2005.
RELEASE, INDEMNIFICATION AND HOLD HARMLESS AGREEMENT
In consideration of participating in health or fitness club activities, and for other good and valuable consideration, I hereby
agree to release and discharge from liability arising from negligence and its owners, directors,
officers employees, agents, volunteers, participants, and all other persons or entities acting for them (hereinafter
collectively referred to as "ReleaseeeD, on behalf of myself and my children, parents, heirs, assigns, personal
representative and estate, and also agree as follows:
I. I acknowledge that health or fitness club activities involve known and unanticipated risks which could result in
physical or emotional injury, paralysis or permanent disability, death, and property damage. Risks include, but are
not limited to, musculoskeletai injuries, broken bones, and/or overuse injuries, injuries caused by equipment that
breaks or otherwise fails; death as a result of drowning or brain damage caused by near drowning; medical conditions
resulting from physical activity, and damaged clothing or other property. I understand such risks simply cannot be
eliminated, despite the use of safety equipment, without jeopardizing the essential qualities of the activity.
2. 1 expressly accept and assume all of the risks inherent in this activity or that might have been caused by the
negligence of the Releasees. My participation in this activity is purely voluntary and I elect to participate despite the
risks. In addition, if at any time I believe that event conditions are unsafe or that I am unable to participate due to
physical or medical conditions, then I will immediately discontinue participation
3. 1 hereby voluntarily release, forever discharge, and agree to indemnify and hold harmless Releasees from any and all
claims, demands, or causes of action which are in any way connected with my participation in this activity, or my use
of their equipment or facilities, arising from negligence. This release does not apply to claims arising from
intentional conduct Should Releasees or anyone acting on their behalf be required to incur attorney's fees and costs
to enforce this agreement, I agree to indemnify and hold them harmless for all such fees and costs.
4. I represent that I have adequate insurance to cover any injury or damage I may suffer or cause while participating in
this activity, or else I agree to bear the costs of such injury or damage myself. I further represent that I have no
medical or physical condition which could interfere with my safety in this activity, or else I am willing to assume —
and bear the costs of — all risks that may be created, directly or indirectly, by any such condition
5. In the event that I file a lawsuit, I agree to do so solely in the state where Releasees' facility is located, and I further
agree that the substantive law of that state shall apply.
6. I agree that if any portion of this agreement is found to be void or unenforceable, the remaining portions shall remain
m full force and effect
By signing this document, I agree that If I am hurt or my property is damaged during my participation in this
activity, then I may be found by a court of law to have waived my right to maintain a lawsuit against the parties
being released on the basis of any claim for negligence.
I have had sufficient time to read this entire document and, should I choose to do so, consult with legal counsel prior to
signing. Also, I understand that this activity might not be made available to me or that the cost to engage in this activity
would be significantly greater if I were to choose not to sign this release, and agree that the opportunity to participate at the
stated cost in return for the execution of this release is a reasonable bargain I have read and understood this document
and I agree to be bound by its terms.
Signature Print Name
Address City State Zip
Telephone ( ) Date
PARENT OR GUARDIAN ADDITIONAL AGRFh'nEENT
(Must be completed for participants under the age of 18)
In consideration of (PRINT minor's names) being permitted to participate in this
activity, I further agree to indemnify and hold harmless Releasees from any claims alleging negligence which are brought
by or on behalf of minor or are in any way connected with such participation by minor.
Parent or Guardian Print Name Date
(If notarization is necessary, please sign & stamp this side of form.)
CAN SHE DO IT? Here is what Clients personally say about Instructor Carrie Van Orden:
"Carrie is most definitely the best instructor I have experienced"
'She has developed a great sense of camaraderie with a very diverse group of people from all walks
Of life"
"Carrie is the leader of the group"
"She brings an unbelievable amount of enthusiasm and passion to each and every one of her classes"
'She seems to have a vested interest of her students' fitness successes"
"Very challenging classes but also veryfun to attend no matter where you are at in your fitness level"
"So many great people are attending her spin classes on a regular basis"
"I honestly look forward to the 4 days a week"
Faculty, staff and students all rely on Carrie's classes, appreciating her rhythm, consistency and
commitment to all"
"Carrie's group ex and spin classes continually grow"
"Carrie's leadership means so much to each of us and to our health"
"Carrie's enthusiasm, passion and motivation has personally changed my life by allowing me to
continue to strive towards the healthier lifestyle that I would like to live"
"I am happier, healthier and stronger than i have been for a long, long time"
"I truly believe it is because of my improved fitness level and i have Carrie to thank for much of my
success"
"Carrie brings an unspeakable amount of energy to each class that moves everyone in the class"
01 am hooked on Carrie's classes"
"She brings such powerful energy to every class she teaches, both fun, challenging and extremely
effective"
Carrie reaches all of us on a personal level when she instructs"
"She has created o fitness family that meets weekly as we work together as a team to reach our own
fitness goals"
'The passion that Carrie has for bringing safe and effective fitness to every person at every level
really comes through in these classes"
"Classes consist of all age ranges and all fitness levels; she handles this beautifully, giving
modifications and encouraging all of us to try our very best"
"Every person in her classes gives it their all because Carrie inspires it in us"
"This is her passion, profession, and her life"
"I was not an athlete when I started taking Carrie's spin classes, but after three years of her
instruction i hope to become at least a half 1ronman triathlete"
'She has significantly impacted my physical and mental health"
"Carrie's noon time classes are a critical component of my training"
"She goes out of her way to introduce herself to new attendees, encouraging them to return"
"There are no other group ex instructors that offer the same intensity of class instruction that Carrie
provides"
"Ihope Carrie comes up with some creative alternative in order to take more of her classes"
"Carrie is ingenious when it comes to fitness"
"Perhaps she could offer group spin classes on the road with road bikes this summer"
"A whole bunch of us would pay you to teach our classes"
"Best spin class 1 have ever attended"
Is she a superstar instructor — YES! Does she have what it takes — YES! Can she do this — YES!
r
�`i.poer CITY OF IOWA CITY
MEMORANDUM
Date: July 24, 2013
To: Economic Development Committee
From: Wendy Ford
Re: Agenda item #4: Creative Corridor Project Funding Request
Introduction
The Creative Corridor Project began in 2009 after a presentation galvanized a group of
like-minded people and organizations into action. Their inspiration revolved around the
concept of regional economic development and the knowledge that the Corridor as a
whole is greater than the sum of its parts. The challenge was to define the Corridor and
then to develop and promote the creative culture in the Corridor to attract more people
and business, thus, enhancing the economic welfare of the communities.
With their early work well underway, they continue to seek funding from Corridor entities
and have requested $10,000 from the City of Iowa City. This is the first request for
funding from the Creative Corridor, and we expect requests for future funding to follow.
History
With guidance from Chuck Peters and the Corridor Business Alliance, John Lohman,
publisher of the Corridor Business Journal, spearheaded a committee that would result
in a new Corridor brand identity to draw people and business to the Corridor by giving
those already entrenched here a unified "flag to wave" about the
Corridor. , t
°c1creative� owa s
The first move was to hire a market research firm to analyze the
Corridor and recommend a brand strategy. With financial S �a corridor
contributions from many of the partners, NorthStar Strategies was
hired to do the work, which resulted in a new moniker: Iowa's Creative Corridor. The
next step was to design a logo and accompanying branding materials.
With a new brand name and logo, the ensuing phase was to get people involved in
living, working and playing as a member of Iowa's Creative Corridor, with the idea that
the internal buzz created by those involved would spread outward, thus drawing more
"creatives" into the Corridor.
Seed Here, a Corridor start-up company itself, was hired to take on
four initiatives necessary to keep Iowa's Creative Corridor in the
forefront and build on the brand identity. Tangible results of their
work include the WE CREATE HERE campaign -- a pride campaign
of adaptable stickers, window clings, web buttons, t-shirts and more
collateral materials to empower everyone to show their pride in our
region and support more innovation and creativity here. While the
branding efforts focus on local adoption, the strategy is that when the
locals Iroe and breathe the We Create Here campaign, the buzz spreads organically
from the inside out.
July 26, 2013
Page 2
The campaign also produced a video for the Corridor to FO` -
use at will — to attract people, business, and engage in
the creative movement. See it here:
hftp://vimeo.com/64386807
Another initiative is called CREATIVE CORRIDOR
STORIES, an ever-growing pool of media profiles of our
region's game -changing creative people and innovators.
These portraits, written articles and videos are on
the organization's website.
CREATIVE CORRIDOR DIGEST, a third initiative,
is a lively email newsletter of the most exciting
innovation news and events in the region,
designed to help all stay connected to the
growing creative community.
And finally, the fourth initiative: CREATIVE
WEEK 2013 — is a weeklong region -wide
celebration October 19-26, 2013 which will
highlight innovation and great works from
around the area: from art, technology, and
industry to performance, storytelling, and thought
leadership.
. wny" we CMM Here - lewa's Creative Canidor
CREATIVE CORES R
OUTS!
NSHOUT
ow Public Art Unveiled
In loWe Cly,
Ceder MzMa
1A^�_
& canter paw
ENTREPRENEURS INNOVATORS
ART a INSPIRATION
a
ffi� CRGTIVES
MmM,ULL'Fbm'.
'.ietlYL1..
!sPAYtb6ba.
""T
Leffi:4e'-M
mmmFam
...N.Yb..M.b M~
M m m a" FM ®
.wtllmN�L
LW Fbm �
•. A&ID}' SY3N: CYbMMIem
tm .IIY
Discussion of Solution
"MM
On Oct. 2 2012 the leaders of the Creative
Corridor gave Project an update to the Economic
1 9 P
mNFmMmMMm,.m�
Development Committee
and explained how the
NorthStar report provides the outline for implementing regional branding activities. Many
of the initial projects are underway, but for the work to continue, ongoing funding is
necessary. Many governmental and non -governmental organizations in the Corridor are
contributing and continuing support of the Creative Corridor Project efforts.
Recommendation
The City Council Strategic Planning goal associated with economic development is to
"strive to expand and diversify the economic base of the community, particularly in
existing planned commercial and industrial areas that have established supporting
infrastructure."
Building a community brand, infusing it in the existing culture and communicating it is
one tactic to achieve that goal. Staff recommends support of this request for $10,000
and upon future annual reports on the success of the Project, consider future requests
for funding the Creative Corridor Project.
Funding source: 1000-457100-448020 Economic Development Assistance.
Current Balance: $100,000.
( is VV o5S
creative
corridor
July 5, 2013
Iowa City Economic Development Committee
C/O Wendy Ford
410 East Washington Street
Iowa City, Iowa 52240
Dear Economic Development Committee:
The Iowa's Creative Corridor initiative, started in late 2009 with the encouragement
of and funding by Mick Starcevich, President of Kirkwood Community College, and
Sally Mason, President of the University of Iowa, is a consortium of individuals and
institutions with Kirkwood Community College as its fiscal agent. We are funding a
scope of work as outlined in the attachment to achieve one of the critical aspects of a
successful region - a sense of place and reason to be in the world.
I am one of the three tri-chairs of this effort. The other two, John Lohman of the
Corridor Business Journal and David Hensley of the University of Iowa, join with me
in requesting that the City of Iowa City join with us and many others in ongoing
annual funding of this effort.
As you can see from the attached, our budget for this year's implementation is
$148,000. We ask the City of Iowa City to contribute $10,000. Kirkwood,
University of Iowa, The Gazette Company and the Corridor Business Journal have
already contributed, along with the Iowa City Area Chamber, Iowa City Area
Development Group, and the Cedar Rapids Metro Economic Alliance. In total, we
have raised over $80,000 for this budget so far. We are in the process of asking the
city of Cedar Rapids for $20,000, and will be approaching the counties and other
municipalities soon. Kirkwood invoices those who wish to participate. We will be
determining our budget for 2014 in November, and will then ask for more funding.
We look forward to our discussion on the 30th. If you are interested in exploring
before then, much of our information is at www.creativecorridor.co and real time
metrics are at http://tinyurl.com/iccmetrics
Sincerely,
Chuck Peters - Tri-chair of Corridor Branding Committee
YEAR 1 SEED FUNDING BUDGET
Creative Corridor Digest
$3,000.00
Creative Corridor Stories
$30,000.00
Creative Week
$15,000.00
The We Create Here Campaign
$15,000.00
Website Development
$5,000.00
Meetings & Events
$5,000.00
Project Development & Management
$75,000.00
Total Seed Budget
$148,000.00
CONTRIBUTORS SO FAR
Alliant Energy
Bocceball Multimedia
Cedar Rapids Metro Economic Alliance
City of Cedar Rapids
City of Coralville
City of Marion
Corridor Business Journal
Eastern Iowa Airport
WHO'S BEHIND THIS
Led by the Regional Branding Task Force
and Seed Here Studio, The Creative
Corridor Project is produced by a great
collaboration of over 1500 individuals, 50
organizations, and counting.
FreskLabs
Gazette Communications
Iowa City Area Development Group
Iowa City Area Chamber of Commerce
Joe Pyle Photography
Kirkwood Community College
Linn County
Marion Chamber of Commerce
Marion Economic Development Company
Seed Here Studio
The Solesbee Group
TruArt
Vault Coworking & Collaboration Space
University of Iowa
If we do this work well and meaningfully connect the half -million creative people who
live, love and build here, collaboratively leveraging our resources and celebrating the
great works created here, we will all benefit - along with our individual communities
and companies - from the increased vibrancy and stronger global reputation that
comes with continuously expanding our creative capacity and genuinely sharing our
pride forth is place.
THE CREATIVE CORRIDOR PROJECT
A regional pride and community building initiative to connect,
support and celebrate all those who create here.
One region creating, living, and building together in a globally -known place for
creative people, families and commerce.
THE REGION
Iowa's Creative Corridor, the greater Iowa City/Cedar Rapids metro area, is made up of
Benton, Cedar, Iowa, Johnson, Jones, Linn and Washington counties. The region
covers 4400 square miles and is home to a half million creative people.
VISION
An ever -thriving region full of creative residents building innovative organizations,
participating in vibrant communities and exuding so much pride that we're known
around the world.
STRATEGY
Unleash the talent of our people, connect them across generations, sectors,
geographies and silos, and inspire us all along the way with the great stories of game -
changing ideas, art and inventions created here.
FOUR PROGRAMS TO GET STARTED:
Creative Corridor Diges : A weekly curated email of the most exciting innovation
news and events in the region. It's the best way to get and stay connected to our
growing creative community.
:An ever-growing pool of media profiles of our region's
game -changing creatives and innovators. These portraits, written articles and videos
are available to explore and inspire. Organizations are invited to use them under a
creative commons license in their own communication pieces.
CreativQ "" nAl : Creative Week is a weeklong region -wide celebration October
19-26, 2013 highlighting innovation and great works from around the area: from art,
technology, and industry to performance, storytelling, and thought leadership.
The WE CREATE HERE Ca_..�_.�, : A pride campaign of adaptable stickers,
window clings, web buttons, t-shirts and more collateral materials to empower
everyone to show their pride in our region and support more innovation and creativity
here.
Learn more and join in at CreativeCorridor.co.
Wendy Ford
From: Corridor Business Journal <news@corridorbusiness.com>
Sent: Tuesday, July 02, 2013 10:50 AM
To: Wendy Ford
Subject: July 2 AM Update from the Corridor Business Journal
�• rlv Q F! Like
DAILY col'RiDO
AM sinessJ'ournal
Today's Headlines
Corridor ranked second b
POI_IQOM among Iowa metros
Merger sej 4ulv,9 fcr Freedom
Security Bank
ACT issues Work Readiness
Standards and Benchmarks'
Wort
CBS?EFOX 28 Headlines
]oh Cnr M1+I.�Tr3g L� I �
Tuesday, July 2, 2013
The days headlines in your inbox by lunch.
The Corridor Business .journal will not publish email updates July 4-5.
The CBJ office will be closed July 4.
Buy or Refinance
t,mh People you can bank on. & �
Corridor ranked second by POLICOM among all nine Iowa metros
Both the Cedar Rapids and Iowa City Metropolitan Statistical Areas
posted jumps in a new economic strength analysis released by
POLICOM. Of the 366 metros measured, Cedar Rapids is ranked 54 and
Iowa City is ranked 68. Iowa City rose 34 spots compared with 2012;
Cedar Rapids improved by 35.
When combined, the region known as Iowa's Creative Corridor is second
in the state, with Des Moines ranked as the top Iowa metro.
"These rankings are an important indicator and help raise the profile of
Cedar Rapids and the Creative Corridor," Dee Baird, president and CEO
of the Cedar Rapids Metro Economic Alliance, stated in a press release.
"The information can be another factor existing companies use when
considering expansions and site location consultants can review when
determining the best site for a new company location."
Click above to submit your e-mail
to receive our daily
news updates.
Please feel free to distribute this
to others who may be interested
in its content.
Quick Links
Corridor Business Journal
About Us
Contact Us
To Advertise
To Submit News
pra+:vahac lwhf us
Cellar Ruphis
A n rose
Upcoming Events
Jaty 5
Business and Technology
Roundtable discusdon,10.11:15
a.m., Cedar Rapids Metro Economic
Alliance, 501 First St. SE, Cedar
Rapids This roundtable event will
provide an opportunity to educate
Congressrnan Bruce Braley on the
transformative electronic commerce,
online advertising and technology
sectors, as well as discuss local and
national policy issues. area
inquiries and RSV?s to Don
McDowell at
mcdowelldbmwnwmick.com or
(5I5) 242-2486
POLICOM, which specializes in analyzing local and state economies,
annually ranks the 366 Metropolitan Statistical Areas and 576
Micropolitan Statistical Areas in the U.S. for economic strength: the
long-term tendency for an area to consistently grow in size and quality.
The study measures 23 different economic factors over a 20-year period
to create the rankings. Data stretching from 1992 to 2011, released this
January, was used for this study.
Mark Nolte, ICAD Group president, points out the biggest takeaway
from these rankings is consistency.
"POLICOM's formulas determine how our economy has behaved over an
extended period of time, not what has caused it to perform," Mr. Nolte
stated in a press release. "Unlike other parts of the country, we're able to
weather the highs and lows to provide stability for companies doing
business here."
The data sectors used in creating the ranking include overall growth in
size and quality of the economy; the behavior of the economy and the
impacts of negative sectors on the economy, such as medical and income
assistance.
The nine Iowa metros in the study are Ames, Cedar Rapids, Council
Bluffs, Davenport, Des Moines, Dubuque, Iowa City, Sioux City and
Waterloo. POLICOM has created this study each year since 1997.
MediRew's growth outpaces projections
A Coralville company is doubling in size. MediRew announced in June
that it will construct a second building not far from its current office.
MediRew is a healthcare revenue cycle management company that
specializes in helping hospitals, health systems, academic medical
centers and physician groups improve their cash flow and grow their
revenue. Employees focus on four key areas: patient satisfaction,
productivity, quality and key performance indicator reporting.
Last September, the company moved into a larger building at 2600
University Parkway in Coralville, allowing for the rapid growth. It wasn't
long, though, before the 18,000-square-foot, $2.4 million building wasn't
enough, said Brad Baldwin, vice president of operations at MediRew.
"We've been fortunate to grow far more than our expectations. That's a
great problem to have," he said. "Our CEO Chris Klitgaard never wants
our growth to be limited by physical space."
To read more, visit www.corridorbusiness.com.