Presented By: Insight Golf Properties. Jon Knudson Partner Tel: Fax:

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Bartholomew Wilson
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1 Presented By: Insight Golf Properties Jon Knudson Partner Tel: Fax:

The information herein has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it.

2 The information herein has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. 1

3 1. Executive Summary 2. Financials 3. Property Photos 4. Scorecard 5. Location Maps 2

4 INTRODUCTION El Rio Golf Club is a Matt Dye championship course that is one of the newest additions to the Laughlin Area golf scene. Carved out of the desert in the middle of the Mohave Valley, this layout provides a blend of challenge and playability to golfers of all skill levels. Stunning mountain views form the backdrop along gently rolling fairways, which provide ample landing zones to make this a very player-friendly golf experience. Located about minutes south of Laughlin, El Rio features four sets of tees, with yardages and slopes playing to 7,115 yards/123 slope, 6,609 yards/117 slope, 6,019 yards/113 slope and 5,342 yards from the forward tees. What you see is what you get here - there are no surprises in store in the form of devious doglegs or hidden hazards. There are some desert waste carries, but these areas are very clean and playable, allowing for liberal recovery opportunities. The ninth and eighteenth have greenside ponds that squeeze the approach on both holes, creating formidable finishing holes. On nine the hazard is reachable along the right side off the tee. This course opened in May 2005, and gets much play from locals due to its location, pricing and playability. Compartmentalized golf carts are equipped with UpLink GPS, and also have ball and club washers plus ice chests with bottled water provided. There is a complimentary targeted driving range on property, along with a putting/chipping green and sand bunker. Enjoy the sunsets and lovely mountain views from the patio terrace, as well as delicious offerings for breakfast, lunch and dinner at The Terrace at El Rio Restaurant. With its banquet and meeting facilities, the clubhouse is the perfect location for special events from weddings to business retreats. The staff at El Rio is committed to treating every guest like a member and providing the highest quality services and amenities. The Clubhouse also features the El Rio Golf Shop, offering a large selection of the latest fashionable golfing attire, equipment and accessories. This is the perfect opening round on a Laughlin area golf trip. As the slopes indicate, El Rio can be a confidence building golf experience. The putting surfaces are medium to large in size and mildly sloped, providing good scoring opportunities. Wind can be a big factor here, but there is ample room off the tee on most holes. El Rio is open full time - from October through June and on Friday, Saturday & Sunday during the summer months. Rates are quite reasonable. Some discount rates are available through area casino hotels. 3

5 NEWS ARTICLE OUTLINING EL RIO HISTORY November 16, Mohave Valley Daily News Ten homeowners now own all of El Rio Golf Course. We have 100 percent ownership, said Karen Dick, Mohave Valley Golf spokeswoman. We ve also secured water rights for the next 20 years. In late 2014, 10 homeowners in the El Rio Country Club neighborhood came together to form Mohave Valley Golf, a limited liability company, in order to purchase a controlling interest in the signature Matt Dye-designed 18-hole course. The move came after Mohave Valley developer John Keith Hoover was arrested on federal charges of what investigators claim was an intentional, concerted effort to defraud investors, financial institutions, creditors and the federal government of potentially millions of dollars. The arrests left the 49 homeowners of El Rio Country Club in limbo. The IRS came and arrested the entire board of directors, said Dick. We re sitting here with no HOA, no guidance from the IRS or the FBI what to do and essentially what happened is that the homeowners put their heads together and figured out we were going to have to fend for ourselves, and we did. There s no doubt we did. The determined homeowners of Mohave Valley Golf refurbished the course and the clubhouse and included among the amenities a pro shop, driving range and putting green, a restaurant grill and bar and reopened to the public in January Along with the completion of the purchase, the 20 year water deal secures the longevity of the course, said Daniel Hegney, El Rio Golf Club general manger. The integrity of the golf course is in perfect condition it is looking beautiful. Getting people past Hoover is a factor with the community, Dick said. We want everyone to know the course is under new ownership. The club now employs about 25 people and offers memberships, golf lessons and tournaments, special events such as glow in the dark nine-hole golf, and programs attractive to both area visitors and local residents. 4

6 1. EXECUTIVE SUMMARY 5

7 The Property: Location: Site: El Rio Golf Club is a daily fee, 18-hole, par-72, championship length facility. El Rio Golf Club 1 Paseo El Rio, Hwy 95, Mile Mark 234 Mohave Valley, AZ The 177-acre property is located 18 miles south of Laughlin and 50 miles from Las Vegas. Year Opened: 2004 Golf Architect: Matt Dye Restrictions & Restrictions to development on the El Rio Country Club terminate in June Use: of Clubhouse: Cart Storage: Maintenance Facility: Driving Range: The Spanish, mission style clubhouse is nestled between the 9th and 18th greens of the El Rio Golf Club, with sweeping panoramic views of the golf course. It features the Terrace Restaurant, which includes a spacious dining room, bar, patio, and a private meeting room. Additionally, the clubhouse features a fully stocked golf shop with the latest in golf apparel, accessories, and golf equipment for both men and women. The single level cart storage building is located behind the clubhouse and houses a fleet of 71 electric carts. Single level with independent office for Superintendent, restroom and breakroom, workshop with lift for R&M of equipment and mechanic s office. Several bays store larger equipment such as fairway units, green mowers, tee mowers, rough unit, supplies and chemicals. The maintenance building/area is surround by a locked gate/fence. El Rio offers a full length driving range with 30 hitting stations behind the clubhouse. A putting green and separate bunker practice area are also included. Rounds Played: 15,541 14,917 6

8 Golf Course: Tee Par Yardage Rating Slope Gold 72 7, Black 72 6, Copper 72 6, Teal 72 5, Rates: Before Noon After Noon After 3:00 January $70.00 $55.00 $44.00 February March $75.00 $60.00 $49.00 April - May $70.00 $55.00 $44.00 June - September $45.00 Closed Closed October November $75.00 $60.00 $39.00 December $65.00 $50.00 $39.00 Memberships: Single Couples # Members One Month Three Month Six Month Yearly $500 $1,100 $1,700 $2,500 $750 $1,650 $2,250 $3, *Includes range/cart fees, unlimited driving range and $25 reciprocal rate at Los Lagos Irrigation Water: El Rio Golf club owns 167 acre feet of Colorado River Water and receives an additional 382 acre feet from the Mohave Valley Irrigation and Drainage District for irrigation purposes. They have a 20 year, renewable water agreement that guarantees delivery at $30 per acre foot with standard increases over that period. Irrigation The club utilizes a Rainbird irrigation system with satellite controls System: along with updated computer software. Two of the three on site pumps have also been recently rebuilt. Grass Type: Cart Paths: Carts: The golf course utilizes Poa Annua/Bentgrass on the greens. Bermuda covers the remaining acreage. Six to seven foot wide concrete cart paths run throughout the course. The club leases 65, 2018 EZ-Go TXT Elite Lithium golf carts for $3,625 per month. The lease expires in February, Six carts are also owned from the previous fleet for a total of 71. 7

9 Equipment: All maintenance equipment at El Rio is owned. A full list of equipment is available upon request. Practice Facilities: Liquor License: El Rio boasts a fully landscaped driving range with five target greens ranging from 110 to 240 yards, as well as a variety of putting and chipping surfaces. The club s Class 6 liquor license allows for the sale of beer, wine and liquor on the golf course and in the restaurant. Taxes: 2017 property taxes totaled $23,935. Demographics: 3-Mile 5-Miles 2017 Population: Households: Average Household Income: 11,229 4,463 $58,453 16,596 6,625 $54,600 *Fort Mohave has a population of 21,927 with a $48,742 median household income Financial Summary: Price: Revenue Golf Revenue: Cost of Goods: Gross Profit: Expenses Total Expenses: Net Income: $1,995,000 Cash 2017 $766,446 $84,632 $681,814 $851,743 -$169,929 8

10 2. FINANCIAL SUMMARY 9

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13 Total Rounds 13,650 Ordinary Income/Expense Income Total Merchandise - Income 33, Total Golf Sales - Green and Cart Fee 649, Total Other Golf Revenue 2, Total Membership Income - Other Fees 33, Total Food - Sales 34, Total Non Alcoholic - Beverages Sales 17, Total Beer - Sales 55, Total Wine - Sales 15, Total Liquor - Sales 16, Food & Beverage Minimum 0.00 Total Membership Dues - Income 0.00 Total Other Revenue 5, Total Discount Programs Management Fee 0.00 Total Income 862, , Cost of Goods Sold Total Merchandise - COGS 22, Total Food - COGS 11, Total Non Alcoholic Beverages - COGS 5, Total Beer - COGS 18, Total Wine - COGS 5, Total Beer and Wine - COGS 23, Total Liquor - COGS 5, Total Activities and Other Events 0.00 Total Other - Cost Of Sales 0.00 Total COGS 69, Gross Profit 792, Expense Gratuities Paid as Wages 0.00 Total Salaries & Wages 290, Commissions & Bonus 3, Lessons - Paid

14 Casual Labor 0.00 Total Contract Labor Employee Expenses Total Payroll Taxes 26, Total Workers Compensation Insurance 12, Total Payroll Administration Expenses 4, Total Employee Expenses 43, Total Employee Benefits 8, Total Employee Expenses 344, Employee Uniforms Automobile Expense 0.00 Total Travel and Entertainment 5, Employee Training & Education 2, Employee Advertising Employee Expenses - Other 0.00 Total Events and Tournaments Total Operating Cost Total Centralized Services 36, Total Marketing and Advertising 19, Total Member Expenses 0.00 Total Contract Services 25, Total Course and Grounds Maintenance 11, Total Repairs - Equipment 16, Total Repairs - Buildings 14, Total Supplies 7, Demo Equipment Expenses Office Supplies 1, Postage and S & H Printing & Reproduction 0.00 Total Utilities 65, Fuel & Oil 10, Total Refuse and Portables 1, Total Telephone 4, Alarm/Security Services 1, Music and Cable Service 3, Dues and Subscriptions

15 Pest Control 1, Total Chemicals & Pesticides 4, Fertilizer 26, Total Sand, Seed and Dressing 39, Total Common Area Upkeep Small Tools License and Permits 1, Bad Debt Expense Cash Over/Under Paid Out - Expenses Donations/Charitable Contrib Total Bank Expenses 23, Gifts Miscellaneous Expense Advisory Committee Expenses Board of Governors 0.00 Total Professional Fees 12, Sales Management 0.00 Total Equipment Lease Expense 43, Total Rental Expense 2, Storage Expense 0.00 Total Insurance 17, Total Taxes 36, Total Operating Expenses 433, Total Expenses 778, Net Ordinary Income 13, Net Operating Income: 13,

16 3. PROPERTY PHOTOS 15

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Phase III 225-65-010 A single owner is interested in selling land adjacent to the golf

24 Phase III A single owner is interested in selling land adjacent to the golf course permitted for 240 homes for $2,000,000. This is separate from the sale of the golf club. 23

25 4. SCORECARD 24

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27 5. LOCATION/AERIAL MAPS 26

28 Fort Mohave Subject Laughlin, NV Lake Havasu, AZ Las Vegas, NV Indio, CA Mesquite, NV 18 miles 50 miles 112 miles 175 miles 193 miles 27

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Flagler Golf Management, LLC ( FGM ), will negotiate and enter into a 40 year lease agreement for the 34 acre parcel inclusive of the entire property

Proposal Flagler Golf Management, LLC ( FGM ), will negotiate and enter into a 40 year lease agreement for the 34 acre parcel inclusive of the entire property including all buildings, equipment, fixtures