Adventure Tourism Opportunity 2.5 Hours from Vancouver

Transcription

1 Adventure Tourism Opportunity 2.5 Hours from Vancouver Jason Zroback 1 (604) Jamie Zroback 1 (604)

2 The Source for Oceanfront, Lakefront, Islands, Ranches, Resorts & Land in British Columbia

3 Adventure Tourism Opportunity 2.5 Hours from Vancouver PROPERTY DETAILS Listing Number: Price: Size: Zoning: LOCATION $900,000 (50% interest) 7.87 acres Commercial Nahatlatch River near Boston Bar. DIRECTIONS Paved freeway access from Vancouver to Hope BC, paved highway from Hope BC to Boston Bar, paved road for 9 km from Boston Bar, remaining 8 km is maintained forest service access road. Floatplane access to Nahatlatch Lake, 13 km west of the property. Helicopter access on site. DESCRIPTION We are pleased to present this investment/joint venture opportunity into one of Canada s premiere adventure tourism operators. The company has operated in British Columbia since 1983, conducting 1st decent commercial rafting trips on many rivers in BC and maintaining a perfect safety record for over 75,000 guests in 28 years of operation. The investment/joint venture opportunity includes; land, improvements and business. It is offered for sale to investment partners or buyers based on a valuation of $720,000 for buildings, equipment and infrastructure, $480,000 for the main resort land, and $600,000 for the operating business. Options to invest in either the resort lands or the operating business will be considered as well as various investment levels from % of the Shares. Business assets include permits for 7 rivers, BC Crown land tenures, client database, reservation systems, website and marketing material, rafts and related rafting and safety equipment, vehicles, buses, camping gear, etc. Two companies have been established. One for the adventure tourism business, the 2nd is a limited liability company for the main resort property, which also has additional real estate assets that are offered for sale or joint venture investment outside of this offering. Executive Summary The adventure tourism company which is operated by its founder and team of outdoor professionals since 1983 continues to enjoy an international reputation for quality and safety and is regarded as one of the premier rafting and adventure companies in Canada. The company strives to provide the highest levels of fun, adventure and safety for guests seeking exciting experiences and basic comforts in a wilderness setting. The business currently offers a wide variety of adventure activities including; white water rafting (class 1-5) on 7 different rivers, inflatable kayaking, scenic float trips, rock rappelling, rock climbing and hiking. The company has additional strengths and advantages as outlined below. 1.) Long Term Management: CEO-29

4 years, GM-15 years, Senior Guides- up to 14 years. Management team includes an in house construction crew and extensive development, marketing, and operational experience. 2.) Safety Record: T he company has provided to rafting adventure trips to over 75,000 guests with no deaths or serious accidents. The company receives the most preferred insurance rates in the industry. Based on 28 years of accident free operation. 3.) Comprehensive Raft Guide Training: since The company has conducted a raft guide training programs, which are among the most comprehensive in the world. 4.) Future Adventure Tourism Expansion: The Company s team of outdoor professionals is set for expansion into other areas, including Whistler BC, Western Canada s largest and premier outdoor recreation destination and other areas of Adventure Tourisam. 5.) Additional Real Estate Assets: A limited liability company has been set-up to own the primary resort property which is then leased by the separate adventure tourism business. The limited liability company owns additional real estate assets which are available as a separate offering. Or as a joint venture investment. Please contact the listing representative for additional real estate and joint venture opportunities. 6.) World-class white water: The Nahatlatch offers amazing Class 3-5 white water (moderate to expert). It is one of the most beautiful of all Canadian rivers with a total of 37 amazing Rapids. Within 11 km. 7.) Best in Canada weather: The Nahatlatch and Thompson Rivers are located in Canada s hot spot featuring beautiful blue sky summers with an average temperature of 33 C in July and August and 75% less rain than the BC coast. 8.) Resort amenities: Set amongst a beautiful wilderness setting, and situated on over 1 km of riverfront, amenities include cabin, tent, lodging, meals, beverages, hiking trails, private beach, hot tub, hot showers and a range of amenities including aromatherapy massage. Business Description People come or all over the world for fun and a safe, well-managed outdoor experience. The company has a reputation in BC adventure industry as an innovator in safety and service, maintaining an excellent safety record in its 29 years of operation. The company pioneered paddle rafting on many rivers in Southwest BC, conducting the 1st ever commercial trips on the Nahatlatch, Squamish, Elaho, Chehalis, Tulameen and Similkameen rivers. The company was the 1st in BC to introduce safety kayakers on rafting trips to enhance safety on class 4 and 5 rivers. The company s president, was the past president of the River Outfitters Association of BC in Within that period of time association created and implemented the most comprehensive raft guide examination and licensing process in the world. In addition, River specific regulations were drafted under his guidance for over 100 commercially rafted rivers in BC. The company currently runs 6 different River sections from mild (Class I), to wild (Class 5) Rapids, including 2 of the most challenging commercially rafted rivers in Canada (Stein and Nahatlatch Canyon). The company received a permit to run the Green River, near Whistler BC in The upper Nahatlatch is the company s most popular trip and features 25 Class 3 and 4 Rapids. The company s expertise enables first-timers to River Raft, while at the same time providing real exhilaration for veteran rafters. The river is highly

5 regarded as one of the best paddling rivers in North America. The company also rafts the Stein, the steepest commercially rafted River in Canada (Class 5). Thompson, one of the most popular rafting rivers in Canada (large volume Class 2-4, Fraser (Class 1-2), Nicola (Class 2-3), Green Class 1-3) and the Coquihalla River. (Class 3). Here is a brief description of River/Rapid classifications: Class I = moving current, no obstructions, no waves Class 2 = small waves, easy to navigate with some obstacles Class 3 = large waves, moderately constricted channels Class 4 = steep gradient, large obstacles, large and continuous waves/rapids Class 5 = extremely constricted channels, very steep gradient, large and dangerous waves/rapids After a great adventure, guests relax in a river view hot tub while wilderness chefs prepare and cater delicious meals. Overnight guests enjoy campfire entertainment under the stars before retiring to their tent or cabin tent (economy, deluxe and luxury units) The company employs a seasonal staff of 15 to 20 each summer at the resort and 3 to 5 in the main reservations office. Many of the senior guides are among the most experienced paddle rafting guides in Canada with an average of 10 years experience. Improvements The Trading Post is a two-story, 2000 ft.² structure built It serves as the official check-in, retail and operations center on the upper floor. The lower floor is set up as a convenient equipment and service area for the rafting tours and thus is used to store wetsuits, life jackets and helmets. This floor also features a space where aromatherapy and related services are provided to guests. The building features a large 1000 ft.² deck which faces the river and mountains. The Kitchen and Dining Deck is designed for seasonal use and operation, this facility is used to prepare and serve meals for up to 120 guests. It includes a commercial kitchen, walk-in cooler, freezers and food storage. The structure was completed in Entertainment Zone with Stage and Campfire Area has a Riverside stage and is suitable for bands and other performances. Two campfire areas with seating for up to 60 people are the main gathering areas in the evening. Both are located near the hot tub and shower facility. Upper Bathrooms and Camping Area complete with 5 flush toilets, sinks. Constructed in Guest Bathrooms and Suite is a two-story accessory building completed in The building includes 4 bathrooms featuring flush toilets, 2 urinals, sinks, tile floors, pine interiors and a Cedar exterior. Upstairs is a one-room suite with queen bed, which is approximately 216 ft.². Workshop, Garage, Laundry and Shower Building is a two-story 1720 ft.² workshop building completed in The upper floor includes 4 deluxe showers with sinks and tiled floors, storage area and a suite for staff lodging. The lower floor includes a laundry facility, garage, storage area in workshop. Owners Cabin, one-story 1180 ft.² 2 bedroom, 2 bathroom, kitchen, family room, River view and deck constructed in 1990.

6 Log Cabin a one-story handcrafted cedar log cabin with loft. Approximately 700 ft.² featuring King bed on main floor, Queen bed in the loft, bathroom with shower, toilet and vanity. Kitchen counters with running water. Hot Tub and Shower Facility, completed in 2010 includes large commercial hot tub with deck, 3 deluxe showers with tile floors and instantaneous hot water. Decks for Cabin Tents. There are 22 decks, tents and all associated furnishings, which range in sizes from 12x12 and as large as 32x48. Infrastructure includes a 24 x 24 building for water storage and distribution. A 40 kw diesel power plant, propane tanks and connections for heating, reverse osmosis water purification system, 5 approved septic tanks/fields/systems. Current Income Please contact listing broker for further details. Development Potential Resort Lands A number of development options are possible for the main resort lands: 1.) 14 room vacation Lodge suitable for adventure vacations, spa vacations, culinary vacations and winter vacations (Snowmobile or Heli- ski). 2.) subdivision of lots into strata or single-family lots. Approximately 5 acres of land is available with beautiful mountain canyon views. If the resort lands are converted to vacation ownership property, an estimated 8 to 10 lots/homes could be developed. Approximately one home per half acre. 3.) Expansion onto the existing operations and resort development. Development Potential Additional Lands Please contact listing broker for development potential of additional lands. Investment Offer The land and buildings of the main resort is offered for sale to investment partners or buyers for $1.2 million. This value is based on an appraised value of $720,000 for buildings, equipment and infrastructure and $480,000 for the land. A 33.3% investment in the resort lands and buildings is offered for $400,000 on a share sale basis. Prospective investment partners, must present a viable business plan for either a new development plan or projected operations of the existing rafting and resort business. The buyer of the main resort lands will have 1st right of refusal to purchase the additional lands at the same ownership percentage as the main resort. For example, 50% partner in the main resort lands has the 1st right to purchase a 50% stake in the additional lands. BC Rafting Industry Overview More rivers are rafted in British Columbia than anywhere else in the world! British Columbia is truly a white-water paddlers dream destination. Residents of Vancouver, and visitors from the USA, Europe and Asia are both important clients for rafting trips in British Columbia. Rafting companies located in resort or tourism destination areas such as Whistler and Golden draw primarily from visitors to the area. This company on the other hand, draws two thirds of its guests from residents in the Vancouver area, while about one third of its visitors from outside the area. The international awareness of the quality and diversity of the BC rafting trips is improving with greater access to the Internet. Small and medium-

7 sized rafting companies are now able to reach long-haul markets on a cost-effective basis. The company s award-winning website is the primary source of bookings and inquiries. Annual rafting demand in the Vancouver area is estimated at 40,000 guest days per year for (trips of one to 3 days) BC residents and non-bc residents each represent an estimated 50% or 20,000 guest days per year. Given 40,000 guest days per year at an average daily rate of $125, the Vancouver area rafting industry generates an estimated $5 million per year (short duration trips only). The company is one of the top 4 companies in terms of market share based on revenues. The company generates a higher per diem from guests than most other companies in the Vancouver market ($200 per day) do a more upscale product with options for lodging, meals and other resort services and activities. To broaden interest and attract more business, the company has introduced rock repelling, beginner rock climbing, kayaking, hiking, scenic float trips and aromatherapy massage. These activities and services have led to a growing family market, a longer average day, and more international gas from the USA, Europe and Asia. Future growth is focused on improving product offerings and services that appeal to the 25 to 55-year-old demographics, including family trips, and other services for guests seeking outdoor adventures with more post-activity amenities. As more and more guests look for a more natural outdoor experience in a scenic and private setting, quality amenities and services will continue to appeal not only to the 25 to 55-year-old demographic and their families but also groups, corporate retreats and special events. AREA DATA Located in the upper Fraser River Canyon, approximately 240 km northeast of Vancouver. The upper Fraser Canyon features, spectacular mountain canyon scenery only 2 1/2 hours drive from the greater Vancouver region, then Nahatlatch region is relatively pristine, in the upper reaches of the river are wilderness areas and protected parks. The upper Fraser Canyon features some of the hottest summer weather in Canada. Summer temperatures can rise up to 40 C at the extreme an average highs of 25 to 35 C are common in July and August. Overall, the climate is very similar to the Okanogan region of the BC interior, with hot summers and relatively mild winters and 75% less rainfall than the Vancouver area. The powerful Nahatlach River flows from a series of 3 small lakes and empties into the Fraser River some 20 km later. The river is a spectacular series of rapids, ideal for river rafting and kayaking. The Nahatlach In fact provides more excitement than the Fraser or Thompson Rivers. The river rafting season begins in May, once water levels become manageable. RECREATION Activities in the area are plentiful, including fishing, boating, hiking, camping, kayaking, canoeing and white water rafting. The varied terrain accommodates every outdoor recreation known to man. HISTORY Boston Bar was so named because of the numerous Americans washing for gold in the bar in the Fraser River at this point. Since the first American ships off our coast were almost invariably from Boston, the natives took to calling the Americans Boston men. Similarly, the natives called the British King George men. The Americans, carrying into British

8 Columbia their tradition that the only good Indian is a dead Indian, treated the natives abominably. In 1859 Arthur Bushby noted in his journal that it is quite strange to see how soon the Indians detect the Boston men & how they dislike them and how much they like King George man. Provoked by the Americans, the Indians in the Fraser Canyon began to murder isolated parties of whites washing the bars of the Fraser. The trouble culminated in the so-called Battle of Boston Bar on August 14, A correspondent of the San Francisco Bulletin who was present reported the fight lasted three hours, and resulted in the complete rout of the savages. Seven of the Indians are known to have been killed and a number wounded. One white man only was wounded, and that slightly in the arm. About 150 white men were in the fight. According to some authorities, The Battle of Boston Bar actually took place at Spuzzum. The original Indian village at Boston Bar was named Koia um, often spelt Quayome, meaning to pick berries. SERVICES The property is serviced with electricity by an onsite diesel power plant, propane, water, water purification, basic fire protection and cell phone service. The property has approved septic systems at 5 locations on the property. TAXES $2, (2011) LEGAL Lot 1, Plan KAP45214, District Lots 482,538,1861, Land District 59. PID:

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20 The Source for Oceanfront, Lakefront, Islands, Ranches, Resorts & Land in British Columbia Jason Zroback Representative 1 (604) Jamie Zroback Representative 1 (604) LandQuest Realty Corporation Sixth Street New Westminster, BC V3L 3A7 Phone: (604) Fax: (604) Toll Free: (LAND) Our property descriptions and geographical information are taken from the BC Assessment Authority, Land Titles Office, government maps and other sources. While LandQuest does not guarantee the information, we believe it to be accurate, but should not be relied upon without verification. This communication is not intended to cause or induce breach of an existing agency agreement.