COMMITTEE OF THE WHOLE MEETING AGENDA

COMMITTEE OF THE WHOLE MEETING AGENDA Monday, September 12, 2016-9:00 AM Council Chambers Municipal Hall, 13211 Henry Ave. Summerland, BC Page 1. Call to Order 2. Adoption of Agenda 2.1 Adopt Agenda Recommendation: THAT the September 12, 2016 Committee of the Whole agenda be adopted/amended. 3. Delegations 2-35 3.1 M.V. Fintry Queen Recommendation: That Council pass the following resolution: THAT the delegation from the M.V. Fintry Queen, be received for information. 4. Unfinished Business 5. New Business 6. Adjourn 6.1 Adjournment Recommendation: THAT the September 12, 2016 Committee of the Whole meeting adjourn. Page 1 of 35

THE CORPORATION OF THE DISTRICT OF SUMMERLAND DELEGATION DATE: September 12, 2016 TO: Linda Tynan, Chief Administrative Officer FROM: Tricia Mayea, Manager of Legislative Services SUBJECT: M.V. Fintry Queen STAFF RECOMMENDATION: That Council pass the following resolution: THAT the delegation from the M.V. Fintry Queen, be received for information. BACKGROUND and DISCUSSION: At the August 8, 2016 Council meeting, Council passed a motion to allow Mr. Schwab to make a presentation regarding mooring of the M.V. Fintry Queen in Summerland. Mr. Andy Schwab is the owner of the Okanagan Lake Boat Company which owns the M.V. Fintry Queen. The company is looking for a temporary moorage site while focusing on financing for a longer term site. OPTIONS: 1. Move the motion as recommended by staff. 2. Refer back to staff for other options. Respectfully Submitted Approved for Agenda Tricia Mayea Manager of Legislative Services Linda Tynan, CAO 3.1 M.V. Fintry Queen Page 2 of 35

3.1 M.V. Fintry Queen Page 3 of 35 Summerland, B.C. Come and explore the Okanagan...

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3.1 M.V. Fintry Queen Page 6 of 35 2012 - new ownership 2016 a new home.... The first voyages in 1965

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3.1 M.V. Fintry Queen Page 8 of 35 Ship s layout

3.1 M.V. Fintry Queen Page 9 of 35 Improvements 2006 2008 An estimated $800,000 was spent to modernize the ship s systems. New wiring including all panels. Fire suppression system with tank. Sprinklers, alarms, hull intake. Inspection of hull in 2006 and 2007. Stainless shaft & bronze propellers. Communications system. Sonar. Squirrel Terminals (6) for restaurants. Painted and cleaned 2008. Back-up generator on top deck. Rebuild main engines. Top deck outside Barbeque. Lighting per Transport Canada.

3.1 M.V. Fintry Queen Page 10 of 35 The engine room looking aft... two main drive diesel engines.

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3.1 M.V. Fintry Queen Page 14 of 35 Year 2000 Brochures 28,000 Passengers annually over a 10 Year Average Departures: 2015 215 PEN 2016 316 PEN 2017 717 P/3/N

3.1 M.V. Fintry Queen Page 15 of 35 2000 1999 1998 _ 1997 _ 1996 _ 1995 1994 _1993 1992 1991 _ 1990 10 Year Avg Passenger Count by Year. 31,164 25,781 29,600 22,848 20,509 22,824 26,153 24,263 22,041 28,954 30,016 28,415 Gross Income 613,711 492,192 527,848 443,013 490,571 554,109 545,399 490,911 454,231 617,547 601,509 583,102

3.1 M.V. Fintry Queen Page 16 of 35 Fintry Queen - 2017 Operating Schedule 1 Calendar Year 2017 - Victoria Day Weekend Start - 2 Hr Circle cruises of the shoreline Open for dinner dockside 1 Hr prior to departure, Destination Operating Hrs. MAY JUNE JUL Y AUG SEP T OCT NOV DEC Avg Passengers / Cruise Estimated Passenger TOTA L MAY JUNE JULY AUG SEPT OCT MAY JUNE JULY AUG SEPT OCT TOTAL MON SUM SUM 12:00-2:00 1 2 4 4 5 2 0 0 18 125 60 80 75 75 60 125 120 320 300 375 120 1360 SUM SUM 7:30-9:30 1 2 4 4 5 2 0 0 18 75 50 100 125 100 85 75 100 400 500 500 170 1745 TUES SUM SUM 12:00-2:00 0 1 5 4 5 1 0 0 16 0 60 75 75 60 60 0 60 375 300 300 60 1095 SUM SUM 7:30-9:30 0 1 5 4 5 1 0 0 16 0 75 90 100 95 85 0 75 450 400 475 85 1485 WED SUM _ SUM 12:00-2:00 0 1 5 4 5 1 0 0 16 0 60 75 85 75 75 0 60 375 340 375 75 1225 SUM SUM 7:30-9:30 0 1 5 4 5 1 0 0 16 0 75 85 125 100 85 0 75 425 500 500 85 1585 THURS SUM SUM 12:00-2:00 0 1 5 4 5 1 0 0 16 0 60 85 100 85 65 0 60 425 400 425 65 1375 SUM SUM 7:30-9:30 0 1 5 4 5 1 0 0 16 0 85 125 150 125 100 0 85 625 600 625 100 2035 FRIDAY SUM - UM 12:00-2:00 3 1 4 5 4 2 0 0 19 60 60 85 95 85 65 180 60 340 475 340 130 1525 SUM SUM 7:30-9:30 3 1 4 5 4 2 0 0 19 125 150 150 200 150 125 375 150 600 1000 600 250 2975 SAT SUM SUM 12:00-2:00 3 2 4 5 4 2 0 0 20 100 60 85 125 95 85 300 120 340 625 380 170 1935 SUM SUM 7:30-9:30 3 2 4 5 4 2 0 0 20 100 80 150 150 125 100 300 160 600 750 500 200 2510 SUM SUM 9:30-12:00 3 2 4 5 4 2 0 0 20 200 125 185 200 125 125 600 250 740 1000 500 250 3340 SUNDAY SUM SUM 12:00-2:00 2 2 4 5 4 2 0 0 19 80 60 100 100 95 65 160 120 400 500 380 130 1690 SUM SUM 5:30-8:30 2 2 4 5 4 2 0 0 19 125 80 175 150 100 85 250 160 700 750 400 170 2430 Scheduled Cruises 21 22 66 67 68 24 0 0 268 990 1140 1645 1855 1490 1265 2365 1655 7115 8440 6675 2060 28310 Charters 3 hrs 0 1 3 3 2 1 0 0 10 0 150 150 200 200 150 0 150 450 600 400 150 1750 Total Cruises 2017 21 23 69 70 70 25 0 0 278 2365 1805 7565 9040 7075 2210 30060 Total Maximum Capacity 278 325 90350 % Passenger capacity utilization 33.27%

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3.1 M.V. Fintry Queen Page 18 of 35 M.V. Fintry Queen - docking beside the Community Heritage Pier

3.1 M.V. Fintry Queen Page 19 of 35 Sustainability, community, economic opportunity $150,000 investment into dock, water and sanitation 30-40 new jobs, $300,000/yr. in wages & benefits. $500,000 yr. purchased in goods and services. Adds to the vibrant Summerland heritage. Supports existing business in the community. Activity on the waterfront safety in the Park at night. Partner in the development of the regional tourism plan. Enhances public experience makes use of public space. Risk Reductions Dock at no cost to the City Moorage reverts back to the City Pilings and docks 100% removable & re-useable City protected in Sub-License and LCLB agreements Financing, permitting and construction completed before the ship arrives.

3.1 M.V. Fintry Queen Page 20 of 35 Approval & Permitting Process District of Summerland Planning & Permits BC Provincial Crown Tenure 140 days BC Min of Env Section 11 Water Act Permit 60 days Transport Canada Navigable Waters Program 2-3 mths LCLB Food Primary & Liquor Primary 2-3 mths BC Interior Health Food Safety Program 2-3 mths

3.1 M.V. Fintry Queen Page 21 of 35 Long-term benefits for residents & the community 1) Another world class tourist attraction for the District of Summerland. 2) Increases safety and activity in Waterfront Park day & night. 3) Encourages business growth & development. 4) Provides a safe travel alternative. 5) Increases access to the water for all ages. 6) Honours the past. 7) Proven business history. 8) Creates lifetime memories for residents, families and travelers.

3.1 M.V. Fintry Queen Page 22 of 35 Kelowna Sutherland Bay

3.1 M.V. Fintry Queen Page 23 of 35 Temporary winter storage 459 North Beach Rd.

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September 6, 2016 To the Mayor & Councillors District of Summerland Request for consideration of a landing for the M.V. Fintry Queen within the design of the Community Heritage Pier & Park Plan We ask for Council's support, in principle: 1) to consider a landing site for the M.V. Fintry Queen as a commercial component within the scope of the designs for the Community Heritage Pier and Park. 2) to consider a Temporary Use Permit for the Fintry Queen to construct pilings and support infrastructure for moorage and operations from Summerland in 2017. The Fintry Queen as a component of the Community Heritage Park Pier will: create a waterfront destination be an economic generator thru direct jobs and spin-offs be a focal point for the community for meetings, events and activities increase safety and public facilities along the waterfront be a partner in the development of the Park Plan The Fintry Queen could operate in a number of ways: stationary dockside, as an "Ogopogo" museum, restaurant, banquet and meeting facility. as an operating ship, open to the public dockside, with scheduled cruises and charters. Thank-you for your time and consideration. Sincerely, Andy Schwab Okanagan Lake Boat Company Inc. 3.1 M.V. Fintry Queen Page 25 of 35

The "M.V. Fintry Queen" Okanagan Lake Boat Company Inc. www.fintryqueen.ca For information purposes only: December 7, 2015 Executive Summary - Operational Plan 2015-2020 The M.V. Fintry Queen will soon be cruising again on Okanagan Lake in British Columbia, Canada. Planning is underway with the City of Penticton to create a new landing pier and moorage facility for the ship at the foot of Martin and Main Streets, in the heart of the city's downtown core, for Summer 2016. The Fintry Queen will surround it's passengers with the landscapes of the South Okanagan, create lifetime memories for thousands of travelers and local residents, while providing a historic link between the communities, parks, wineries and resorts situated along the shores of the 80 mile long lake. The ship is registered to the Okanagan Lake Boat Company Inc. (OLBC) which has recently entered into a 5 Year renewable lease with the City of Penticton and plans to raise $600,000 through an equity offering to construct the moorage facilities and refit the ship. BUSINESS STRENGTHS The largest commercial passenger vessel on Okanagan Lake. Established business tradition... operating for more than 50 years, Serving 28,000 passengers annually... average over a 10 year period. Recognized historical image. Regional tourist attraction. Held an "A" Pub License for 225 and a B Dining Lounge for 280. The ship will become a resource for residents of this community, a world class attraction for meetings, banquets and weddings, for conferences and sporting events. A landmark that contributes to Penticton's vibrant appeal while creating lifetime memories. The presence of ship will increase safety in the area, be an economic generator through jobs and services and become a partner in the development of the regional tourism plan. INVESTMENT OLBC plans to raise $600,000 by issuing 600,000 Class A Voting Shares valued at $1.00 per share. The Company has qualified as an "Eligible Business Corporation" within the context of the BC Investment Program and is able to allocate investors a 30% BC tax credit (to a maximum of $60,000 for individuals, unlimited for corporations) for use anytime over a 5 year term. The Company will be engaged to redeem the shares on the 5th anniversary of the investment at a value of $2.00 per share. When combined with the 30% Investment Tax Credit, this represents a potential annual ROI of over 23%. 3.1 M.V. Fintry Queen Page 26 of 35

SERVICES The ship contains over 9000 sq ft of deck space on 3 levels, with 5 distinct passenger areas and the ability to host multiple functions at the same time, while leaving common facilities accessible for all aboard. The enclosed Main Deck is both heated and air conditioned, featuring a commercial galley, an indoor Forward Lounge that seats 75 and a rear Main Dining Room with bar and dance floor for another 120 seated guests. On the Upper Deck, there is a covered outdoor seating area, Sun Deck, barbeque, snack bar and kids playroom. The ship has successfully hosted conferences, banquets and weddings for up to 325 passengers, with a Food Primary liquor license for 280 patrons and a Liquor Primary license for 225 passengers, where minors were permitted. The liquor permits listed the "Hours of Sale" from 11:00 AM - 1:00 AM (Sundays til Midnight). Dockside liquor service was permitted in accordance with local government approval or up to a maximum of one hour prior to a scheduled sailing. Liquor service is to conclude 30 minutes prior to docking. A complete mechanical refit was undertaken between 2006-2008 to present Transport Canada standards. Two fuel efficient turbo diesel engines power the vessel at an average cruising speed of 6-8 knots. Formerly designed as a car ferry, the unique hull shape enables her to get close to shore to utilize the bow boarding ramp where there are no docking facilities. Passenger capacity could be increased beyond the present 325 limit with improved stairwell access to the Rear Upper Roof Deck. 3.1 M.V. Fintry Queen Page 27 of 35

MOORAGE AGREEMENTS Penticton - The City of Penticton has entered into a lease agreement that includes a Sub-License with the Province of BC, for a water lot to be located west of the Kiwanis Pier. The lease is extendable for a second five year term. Dock design, engineering, surveys and environmental permits have been completed. Kelowna - The City of Kelowna has signed a moorage agreement for temporary storage of the vessel offshore until October, 2017. INVESTMENT IMPROVEMENTS The vessel was last operated and certified by Transport Canada in 2008. Updated certificates and licenses are now required. Access to a landing facility for water, power and sewage is required for the start of operations. The plan includes the permitting and construction of a 60 ft passenger landing dock and moorage facility in Penticton and the development of additional landings in parks and lakeshore communities over successive years. Year 1 Penticton Landing Pier & services $324,250 Transport Can inspections 5 Yr Hull and Annual Inspection $ 34,950 Interior improvements Forward Lounge / Upper Deck Bar $ 43,000 Leasehold improvements Paint / restore / furnish $ 48,500 Service barge Sewer water tender $ 10,000 $460,700 Year 2 Leasehold improvements Main Deck interior and stage $ 59,000 Year 3 Naramata Landing Dock permit and construction $ 60,500 Rear Top Deck Stairwells to the Top Rear Sundeck $ 72,000 Year 4 Mid Deck improvements Washrooms, Kids Play Area $ 40,000 Year 5 3 Mile Pt. Landing Dock permit and construction $101,500 Main Deck Furnishings $ 36,000 3.1 M.V. Fintry Queen Page 28 of 35

THE HISTORY The history of navigation on Okanagan Lake dates back over a hundred years when the Canadian Pacific Railway commissioned the first ship, the "Aberdeen" to service the growing number of agricultural and mining settlements along the shores of the 80 mile long lake. The City of Penticton played a key role in this history and is home to the historic S.S. Sicamous, a restored paddlwheeler, on display with several tugboats from the era. Originally named the "M.V. Lequime", the Fintry Queen was built in Vancouver in 1948 and shipped by rail in sections to Kelowna, where she became one of three car and passenger ferries crossing Okanagan Lake. The first and smallest ferry, the "Pendozi", is now the Clubhouse for the Westbank Yacht Club. The third ferry, the "Lloyd Jones", was taken back to the coast by BC Ferries, where she continued to work for many years, before being sold in 1998 to the Dominican Republic. In the 1960 s, Arthur Bailey transformed the "Lequime" into the "Fintry" to transport travelers and tourists to his new development at Fintry Estates. The ship was rebuilt to reflect the sternwheeler tradition on Okanagan Lake. Traditionally the Fintry Queen operated 2 cruises daily, averaging 250 scheduled cruises per season, from mid- May to mid-september, offering luncheon, dinner and special charters. Between 2005 and 2008, a Calgary based investment group spent an estimated $800,000 on mechanical improvements to bring the ship up to current standards. All the wiring, switches, electrical panels and fire control systems were replaced. The generators and main engines were rebuilt along with new stainless steel shafts and bronze propellers. The ship ceased operations in mid-season 2008. Title was acquired by the current owner in 2012. SCHEDULES The following chart provides an illustration of how travelers could utilize the vessel on a typical 1-3 hour sightseeing circle tour of the South Okanagan. Passengers boarding from downtown Penticton, could travel 30 minutes north to 3 Mile Point or 1 hour to Naramata, visit the wineries or parks, then re-board as the vessel 3.1 M.V. Fintry Queen Page 29 of 35

circles around again, two or three times each day, for the return trip home. Tour groups could cross the lake between Naramata and Summerland or gain access to Okanagan Mountain Park to continue their journey. The Year 1 Operating Schedule details 2-3 departures daily from Penticton, leaving the pier at 12:Noon, 3:PM and 7:PM daily, with additional Dance Cruises on Friday and Saturday nights, providing non-stop circle cruises along the shoreline. Schedules typically start on the May Victoria Day weekend holiday and continue through to the October Wine Festival. Over successive years, the construction of additional landings at 3 Mile Point, Naramata and Summerland have been projected. Schedules will be developed based on market demand, special events and charters. Five different schedules were developed to estimate passengers based on evolving calendars and seasonal holiday patterns. PASSENGERS Schedule Departures Charters Operating Hrs 1 209 3 476 2 310 4 643 3 711 4 850 4 421 5 801 5 630 5 863 Passenger estimates have been based on historical records over a 10 year period from 1990-2000. and the log books recovered from 2006 to 2008. The 10 Year passenger average between 1990-2000 28,415 The highest recorded passenger count was in 2000 31,164 Projections for the operating period forward for 2015-2020 are: Passenger Count Estimates Year 1 22,545 Year 2 28,160 Year 3 32,566 Year 4 33,395 Year 5 35,508 For a comparison, the Kettle Valley Steam Railway is a regional tourist attraction, located on the upperbench lands above the town of Summerland, BC. The KVR operates an historic steam train on a 1 hour ride, with 2 departures daily, 5 days/wk + holidays, from the Victoria Day May holiday to the September Labor Day Weekend. The KVR, from its remote station location, has consistently averaged 27,000-28,000 passengers annually over the last 5 years. 3.1 M.V. Fintry Queen Page 30 of 35

PASSENGER RATES The Fintry Queen will be competitively priced with existing tourist related attractions located in Penticton and the South Okanagan region. Attraction Adults Seniors / Youth Children under 12 Kettle Valley Railway $22 $20/ $17 $13 Loco Landing Play Area $35 All day $10 per $10 per Casabella Princess $20 $20 $10 Canal River Raft $12 return $12 return $12 return For the income projections used in the revenue models, the average ticket price starts at $16.00 in Yr 1: Cruise Tickets Prices Avg Ticket Price Children under 3 Free Year 1 $ 16.00 Children 12 and under $12.00 Year 2 $ 17.00 Seniors $18.00 Year 3 $ 18.00 Adults $20.00 Year 4 $ 18.00 Saturday Night (3 Hr. Cruise) $25.00 Year 5 $ 18.00 REVENUE PROJECTIONS Revenue models have been projected based on the historical average number of passengers carried over a 10 year period and competitive pricing with regional attractions. Food & Beverage revenues and costs are based on industry standards. There are no additional revenue considerations given to extended operations of the vessel while dockside, other than opening 1 hr prior to departure. Amortization, depreciation and interest expenses have not been included, given the appraised value once operating is higher than the currently assessed valuation of $365,000. Operating expenses are paid " as incurred" unless shown. Year Passengers Sales Cost Gross Profit Expenses Wages Net Income 1 22,545 869,831 166,777 703,054 327,785 174,842 200,427 2 28,160 1,155,117 216,696 938,421 332,192 218,511 387,717 3 32,566 1,440,264 280,725 1,159,539 399,714 300,284 459,541 4 33,395 1,476,927 287,992 1,188,935 429,012 295,265 464,659 5 35,508 1,570,377 306,214 1,264,163 445,260 315,269 503,634 THE MARKET The Fintry Queen will create memorable experiences for the million travelers and tourists who visit Penticton and the South Okanagan region each year, providing food services, entertainment and transportation, catering to travel groups, weddings, banquets and commercial travelers, while visiting the parks, wineries, resorts and communities situated along the shoreline, similar to the historic paddlewheel services, while sharing in the experience and splendor of the spectacular Okanagan landscape. According to a Tourism BC study on visitors to the Okanagan Valley (OCCP published 2004), 83% of the annual visitors are traveling in a car, most are staying in hotels and the most popular activities are water based, followed by visiting orchards, farms and wineries. Respondents indicated their most important positive image of the Okanagan Valley was the scenery, landscapes and the climate, while the biggest negative was the traffic. 3.1 M.V. Fintry Queen Page 31 of 35

The business will be strategically positioned at the foot of Martin and Main Streets, in the heart of Penticton's downtown core, in close proximity to the Lakeside Resort Hotel & Casino. The ship will be an active participant in the development of the downtown revitalization plan. On October 8th, 2014 the Fintry Queen announced it would be leaving Kelowna for a new home in Penticton and the South Okanagan. Over the next 24 hours, "Castanet.net", the local news and community web site, recorded 38,000 views to the article. From January 2011 to March 2012, when the Fintry Queen's future was in doubt, there were over 40 individual news postings by media, including articles, radio and TV interviews. The ship has a strong local following and attachment within the Okanagan community, having carried more than 500,000 passengers in its lifetime and having created as many fond memories. PERMITS & APPROVALS A number of permits and approvals are required prior to construction of the pier and the commencement of commercial operations. Design, engineering, water lot surveys and an environmental assessment for a new moorage pier have been completed Detailed below are key elements within the planning and approval process. City of Penticton - Planning for Utilities and Services Environmental Assessment (Min of Env - Section 9 Water Act Permit) Transport Canada - Navigable Waters Permit Installation of foreshore utilities & services Construction of pilings, dock, lights & ramp Transport Canada - Hull & Annual Inspections LCLB "Food Primary" & "Liquor Primary" permits BC Interior Health Food Safety Program Survey of Water Lease Lot - adjacent to Kiwanis Pier Completion of Sub-License with the City/Province 3.1 M.V. Fintry Queen Page 32 of 35

MANAGEMENT Andrew Schwab - owner OLBC Mr. Schwab is a marketing consultant who has served as an officer, director and manager of several Canadian and US listed companies in the resource, technology and industrial sectors. Previously, Andrew was a marketing manager for a private Swiss manufacturing company where he assisted in new product introduction, sales and licensed distribution throughout Canada and the U.S. Andrew has been a partner in several sales agencies and has more than 20 years experience in sales and marketing at retail and wholesale levels. Mr. Schwab has held numerous positions in the tourism and hospitality industries, filling a variety of restaurant, resort hotel and resort management roles, managing in excess of 100 seasonal employees and controlling large operating budgets. In 1985, Mr. Schwab moved to the Okanagan as the Director of Marketing for Big White Ski Resort to develop the regional, international and destination tourism markets. Over a six-year period, he became familiar with regional demographics and laid the foundation for the development of long-term strategic alliances with suppliers and travel wholesalers. In 1992, Mr. Schwab acquired rights to the M.V.Pentowna, an historic 125 ft passenger ship that once plied Okanagan Lake for Canadian National Railways and from there developed his interest to restore commercial passenger service. From 1999 to 2000, he leased and operated the Fintry Queen, carrying in excess of 30,000 passengers annually. In 2009, he founded Okanagan Marine Assist Ltd., to provide 24/7 marine towing and emergency fueling services for commercial and recreational boaters. Mr. Schwab holds a Master's Ltd. mariners license and related Transport Canada certifications. CONSULTATION The Fintry Queen would like to express its thanks and gratitude to individuals within these organizations for their kind assistance, direction and support in making this business presentation possible: Economic Development Office - City of Penticton Downtown Penticton Association Penticton Chamber of Commerce Penticton Tourism Penticton Hospitality Association Regional District of South Okanagan Community Futures Penticton Rotary Club Poster printed "circa 1878" provided courtesy of the Penticton Museum. For Information: Contact Andy Schwab Email: info@fintryqueen.ca Cell/txt: 250-808-2628 3.1 M.V. Fintry Queen Page 33 of 35

PRO FORMA INCOME STATEMENT Year 1 Year 2 Year 3 Year 4 Year 5 Passengers Schedules 1-5 22,545 28,160 32,566 33,395 35,508 Income Cruise Tickets 360,720 478,720 586,188 601,110 639,144 Food Sales 324,648 430,848 527,569 540,999 575,230 Liquor Sales 172,063 228,349 279,612 286,729 304,872 Souvenir Sales 12,400 17,200 46,895 48,089 51,132 Total Sales 869,831 1,155,117 1,440,264 1,476,927 1,570,377 Cost of Sales Food (32%) 97,394 137,871 168,705 173,120 184,073 Liquor (30%) 61,943 68,505 83,884 86,019 91,462 Souvenirs (60%) 7,440 10,320 28,137 28,853 30,679 Total Cost 166,777 216,696 280,725 287,992 306,214 Gross Profit Cruise Tickets 360,720 478,720 586,188 601,110 639,144 Food Sales 227,254 292,977 358,864 367,879 391,156 Liquor Sales 110,121 159,845 195,728 200,711 213,410 Souvenir Sales 4,960 6,880 18,758 19,236 20,453 Total Gross Profit 703,054 938,421 1,159,539 1,188,935 1,264,163 Operating Expenses Accounting 8,000 8,500 8,605 9,700 10,000 Advertising 22,500 27,900 27,900 40,700 40,700 Auto 1,800 1,800 2,500 4,500 6,000 Bad Debts 500 400 400 400 400 Bank Charges 600 600 2,750 3,500 3,600 Casual Labour (Janitor) 7,200 9,600 8,400 11,200 12,800 Charge Card Discount 21,746 28,878 36,007 36,923 39,259 City Annual Lease 5,000 10,000 15,000 20,000 20,000 Consulting 2,000 2,000 1,000 20,000 20,000 Donation 500 600 600 2,000 2,000 Entertainment 10,000 12,000 13,000 17,000 20,000 Fuel 12,865 15,888 20,835 18,924 20,835 Insurance 19,283 19,200 22,200 22,800 23,400 Laundry 4,500 4,400 4,800 5,000 5,400 Legal Fees 11,000 3,000 3,500 3,000 3,000 Licenses / Inspections 10,015 7,475 5,000 5,000 5,000 Management Fees 64,500 91,500 120,000 120,000 120,000 Meals and Entertainment 1,900 2,700 2,700 2,700 2,700 Miscellaneous / Equip Lease 2,100 1,700 2,100 2,600 2,900 Office Expense 2,300 2,300 3,100 3,600 4,200 Promotion 2,500 3,000 6,000 6,000 6,000 Repairs & maintenance 48,500 29,500 29,500 29,500 29,500 Telephone 2,100 2,600 3,600 3,600 3,600 TC Annual Inspections 34,950 7,475 7,475 7,475 7,475 Utilities 5,200 6,400 7,700 8,000 8,600 Wages 174,842 218,511 300,284 295,265 315,269 EI / CPP / WCB 26,226 32,777 45,043 44,290 47,290 Total Op. Expenses 502,627 550,704 699,998 724,276 760,529 Net Income before Tax 200,427 387,717 459,541 464,659 503,634 3.1 M.V. Fintry Queen Page 34 of 35

PRO FORMA CASH FLOW STATEMENT YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Sources of Cash Net Income before taxes 200,427 387,717 459,541 464,659 503,634 Shares issuance 600,000 0 0 0 0 SIDIT Loan 0 0 0 0 0 EBC program 0 0 0 0 0 Total Cash Available 800,427 387,717 459,541 464,659 503,634 Leasehold improvements Docks - PEN - NAR - 3MP 324,250 0 60,500 0 101,500 Ship 43,000 59,000 72,000 40,000 36,000 Service Tender 10,000 0 0 0 0 Total Use of Cash 377,250 59,000 132,500 40,000 137,500 Payments to shareholders 20,000 49,823 0 0 1,200,000 Cash in Bank 373,177 652,071 979,112 1,403,771 569,905 PRO FORMA BALANCE SHEET Assets Current Assets Cash in Bank 373,177 652,071 979,112 1,403,771 569,905 Accounts Receivable 0 0 0 0 0 Total Current Assets 373,177 652,071 979,112 1,403,771 569,905 Fixed Assets The "Fintry Queen" 350,000 350,000 350,000 350,000 350,000 Dock Pilings (50) 15,000 15,000 15,000 15,000 15,000 Leasehold improvements 377,250 436,250 568,750 608,750 746,250 Total Fixed Assets 742,250 801,250 933,750 973,750 1,111,250 Total Assets 1,115,427 1,453,321 1,912,862 2,377,521 1,681,155 Liabilities & Owner's Equity Current Liabilities Due to shareholder 49,823 0 0 0 0 Total Current Liabilities 49,823 0 0 0 0 Owner's Equity Share Capital 965,000 965,000 965,000 965,000 965,000 Retained Earnings -99,823 100,604 488,321 947,862 212,521 Current Earnings 200,427 387,717 459,541 464,659 503,634 Total Owner's Equity 1,065,604 1,453,321 1,912,862 2,377,521 1,681,155 Total Liabilities & Equity 1,115,427 1,453,321 1,912,862 2,377,521 1,681,155 This Executive Summary has been prepared for information purposes only and is based on best estimates and projections for the proposed operations of the M.V. Fintry Queen and is not to be construed as an offer to purchase or sell securities. These projections are subject to change. For further information please contact Andy Schwab. Ph. 2 5 0-8 0 8-2 6 2 8. www.fintryqueen.ca email: info@fintryqueen.ca 3.1 M.V. Fintry Queen Page 35 of 35