Legal Description and Zoning
Commercial Business Park Zone ( CBP 6 )
“Special Highway Commercial” – Zoning Bi-Law 054-04
Lot 7 Plan 51R-16621 Part I and Part II
Property Taxes <Status 2008/2009>
| 1988 Commerce Park Drive |
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Part II |
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$ |
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26,000.00
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| 2008 Commerce Park Drive |
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Part I |
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$ |
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2,500.00
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Size
| 1988 Commerce Park Drive |
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6.0 acres and log cabin ( 16,000 sq ft )
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| 2008 Commerce Park Drive |
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1.3 acres vacant land
(adjacent to property 1988 on south-east corner)
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| Frontage: |
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370 feet (approx. 120 m) |
| Depth: |
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800 feet (approx. 250m) |
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Property Assessment Report
Before the property was bought in May 2005 certain assessments were performed by
Pinchin Environmental Ltd. and documented in detailed and separate reports.
- Building Condition Assessment Report dated April 15, 2005
- Environmental Site Assessment Report dated April 15, 2005
- Mould Assessment Report dated April 20, 2005
Valuation
Full and comprehensive <appraisal reports> of the properties:
- 1988 and 2008 commerce park drive, coincidently with 2044 commerce park drive, were arranged in april 2006 through bank recommended and approved appraisers (AACI, PAPP).
- the permitted appraisers valued the subject properties 1988 and 2008 for best use at $5,350,000
- their appraisal for property 2044 was $1.300, 000 and was sold in december 2008 for $1.390.000
- this shows and demonstrates that their professional conducted appraisals were not remote and represented market value
- the actual sales price of 2044 surpassed the appraised value
- this property was listed in 2005 for $1,190.000 and bought by Gastro Village Inc.in May 2005 for $1,080.000
- then professionally appraised in 2006 for 1.300.000 and offered for sale in fall 2008 for $1,580.000 and sold twenty months later in December 2008 for $1.390.000
Replacement Cost
rms (risk management services inc.) one of the leading companies in canada, providing professional analysis for residential and commercial properties, issued a comprehensive <executive report> in early October 2009.
- rms concluded in their report that the replacement cost for the log cabin by itself would be $ 7,227,785 in today’s market.
- rms did not value the 6 acres and 1.3 acres totaling 7.3 acres of land and for that raison d’être it is not included in their replacement cost report.
- the comparison numbers of properties directly sited on highway 400 with easy excess and a one to two minute drive offered for sale or sold are in excess of $ 400.000 an acre
- the value for just the 7.3 acres land must be in the area of $ 3.000.000
- rms established in their report that additional funds of $ 1.500.000 would be needed for replacing the FF and E ( Furniture, Equipment etc.)
Comparison
Listed in 2008/2009 on Commerce Park Drive <Munroe Furnishing>
- 1.87 acres vacant land (no infrastructure) for $950.000 = 510/acre
- 3.50 acres with building (not renovated) for $ 2.950.000 = 843/acre
Bought in 2006 by the <Great Gaming Corporation>
- north-west corner of HWY 400 and Innisfil Beach Road
- 70 acres vacant for $ 28 mill. (farmland - zoned commercial)= 410/acre
Bought in 2007/2008 by <Smart Centers>
- south-west corner of hwy 400 and Innisfil Beach Road
- 80 acres vacant farm land -zoned industrial- requires re-zoning for future retail use = 310/acre
Bought in 2007 by <Osmington (Thomson Property) >
- on the east side of Hwy 400 in Barrie – zoned commercial
- 38 acres “Barrie Raceway and Fairground” for $ 32 mill. = 840/acre
Bought in 2008 by <Cat House ( Herbert’s Retail Stores )>
- located on the Innisfil 400 exit ramp on commerce park drive
- 2.5 acres with exist. building (not renovated) for $ 1.390 mill = 556/acre
- municipal water
- hydrant (extension from Commerce Park Drive to the end of driveway)
- 6 furnaces and 1 HVAC unit
- hydro (600amp service)
- gas line ( HVAC and kitchen equipment )
- propane gas line for outside grill
- two commercial hot water boiler (gas)
- commercial water softener system
- septic extensive new septic system with new septic bed (summer 2005)
- fire protection and emergency alarm system with off-side 24/7 security service
- parking for 120 cars with handicapped and bus parking
- two sided pylon sign and roof sign facing the south and northbound of hwy 400
- washroom facilities
- handicapped
- 6 ladies
- 3 + 6 men
- 2 employees
- bell pay customer pay phones
- telephone system
- 4 external lines
- 12 intercom
- fax system
- high speed and wireless internet
- 8 camera surveillance system
- bell satelliteTV
- four zone-music system with inside and outside speakers
- three flag poles (two 50 and one 60 feet)
- twelve banner poles
- conduits on the property for future connection in place (model homes, banking machine etc.)
- unique lighting and illumination concept around the building, patios and parking
- enormous patio planters
Sewer connection
- the almost ten year long negotiations regarding the differences between barrie and innisfil to resolve barrie's shortage of land and innisfil’s needs of sewer services to fully develop the highway 400 corridor came finally to a solution in summer 2009
- this is good news to all property owners in the <hwy 400 / innisfil beach road corridor> given that they will soon get connected to sewer services
- it is assumed that the value of the properties will appreciate
- the hwy 400/ innisfil beach road corridor was affirmed to be the highest priority for future developments
- the property is directly located on the east side of hwy 400 and the exit ramp 85 – innisfil beach road
- the location is visible and accessible from both sides of hwy 400. the south bound traveler uses the innisfil beach road under path
- it takes two minutes to get from the exit of hwy 400 south bound to the log cabin but only one minute by exiting the north bound
- the hwy 400 / innisfil beach road exits are just five minutes south of barrie’s molson park and vice versa
- georgian down’s race track and casino is located on the kiddy corner of the log cabin….. north-west of hwy 400 and innisfil beach road
- the 400 antique market is on the north-east side of hwy 400 and innisfil beach road, just north of the log cabin
- the distance to toronto is about 90 km and to barrie just 5 km for most of the cottage travelers the log cabin location is just half way to their destination or back home home
- the traffic count on hwy 400 is anything from 80 to 130 thousand cars a day (on long weekends about 250,000 cars)
Future Developments in the Proximity
- the widening of hwy 400 was approved by the mto to 4 resp. 5 lanes from south of hwy 89 to junction of hwy 11.
- If this happens one day than the impact on the property will be 6 meters
- the widening of the hwy and ramp will not have a material effect on the building, parking and patios that was confirmed by the mto in spring 2005 (preliminary plans are available)
- another plan calls for the widening from 2 to 4 lanes of innisfil beach road (simcoe road 21) what will not have any impact on the property
- on the south-east corner of innisfil beach road a <shell gas station> and a <tim hortons> opened in 2008
- the entrance to the gas station and tim is off innisfil beach road and commerce park drive and the exit from both services is to commerce park drive only
- information were provided that <mcdonalds> had planned their new hwy location on the south-west corner of hwy 400 and innisfil beach road since they may lose both hwy locations (cookstown and barrie) because of the planned widening
- The 80 acres north-west corner of hwy 400 and Innisfil Beach Road was sold to the <Great Gaming Corporation> for future expansion and development just south of their existing <georgian down race track and casino >
- The south-west corner of hwy 400 was acquired by smart center> and needs re-zoning from industrial to commercial
- on the north-east side of hwy 400 and innisfil beach road is the location of the new <dock in the box> and <400 antique market> going further north on side road 9th line which runs parallel to hwy 400 some new developments have taken place <mercedes benz,hyundai, auto-park >
- the plan for the west side of hwy 400 and south of innisfil beach road towards thornton calls for the <development of subdivisions> of more than 20,000 homes
- The sewer connection of the hwy 400/Innisfil corridor into Barrie’s existing system or as an alternative serviced by Innisfil is expected to be announced soon
The total acreage of 6 and 1.3 acres allows for future development next to the log cabin especially in the areas of retail, hotel, model homes, etc.
There is an existing triple net commercial lease for 10 years plus two options
The parties to the lease are:
| Landlord |
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THE LOG HOUSE INNISFIL HEIGHTS INC. |
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| Tenant |
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BISTRO CAFFE CREMA INTERNATIONAL INC. |
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(main lease) |
| Licensee |
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STOP NORTH 400 HOSPITALITY INC. |
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(sub lease) |
Potential Additional Uses of the Property
by the owner
- land lease for model log homes
- land lease or sale for 100 room hotel development
- medical centre
- retail stores
- hwy service related business etc.
by the tenant
- food, gifts, retail store
- drive through “prepared food and beverage pickup”
- beer garden, BBQ etc
- banquet facilities (building,tent etc.) meetings, events, weddings etc.
- off side catering services
January 2010/jr
Tenants Factsheet of the <Turn Key Operation>
The commercial triple net lease is between Log House and Bistro Caffé Crema for a period of 10 years with two options of 5 years
The triple net sub lease is between <Bistro Caffé Crema International Inc.> (licensor) and <Stop North 400 Hospitality Inc.> (licensee)
following are today’s <triple net lease provisions>
Minimum rent (Triple net)
| Ground Floor |
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7000 sq ft |
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$ 14.80/sq ft |
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$ 103.600/yr |
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$ 8.630/mo |
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| Second Floor |
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3000 sq ft |
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$ 11.80/sq ft |
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$ 29.400/yr |
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$ 2.450/mo |
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| Lower Level |
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6000 sq ft |
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$ 7.85/sq ft |
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$ 47.000/yr |
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$ 3.920/mo |
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| (retail store, staff area, washrooms, laundry, mechanical room, back of the house) |
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- minimum rent (triple net) $180,000/year-$15.000/month or 6% of sales whatever is greater
- <use of log cabin patios, balconies, sharing of parking, driveway, services, signage etc. included>
- FF & E and small equipment (turnkey) to be offered for cash of $685.000 or on a cash and lease arrangements based on $ 985.000
- substantial government sponsored business loans and start up supports are available
- the investment by the tenant for renovating the log cabin including the built out of the premises, all the lease hold improvements, FF&E, etc. exceeded three million dollars
- the restaurant provides seating on the ground floor for 120, the bar and lounge on the ground floor holds 60 to 80 customers, the second level of the log cabin can accommodate 100 guests patios and balconies provide summer seating for 180
- the restaurant is set up as a free flow self service concept with front and display cooking
- the log cabin areas, balconies and patios are fully licensed
- high capacity ice flakers and ice cube makers
- walk-in freezer and coolers for food and beverages
- guest washrooms for ladies and men
- handicapped washroom
- changing rooms and washrooms for staff are separate for both genders
- the employee cafeteria seats sixteen
- two small offices and storage rooms are located on the retail level
- sophisticated POS system with integrated customer cards, gift cards handling, full management of VIP cards, transfer of all bank and credit card payments, connected with Quick Books for accounting and Ceridian for payroll
- the POS soft ware includes and is not limited to inventory control, transaction analyses, and reports on a daily / weekly / monthly / annual basis
- the POS is directly connected with the Internet having the advantage that any customer loyalty information is transmitted into the POS immediately
- the retail store area of over 2000 sq ft on the lower level and connected from the ground floor by a separate staircase
- the lower level is connected from the outside by a ramp and garage door set up….convenient for all deliveries and shipments
- a dumb elevator connecting the clearing area on the second floor with the ground floor dish washing room
- the log cabin features on the second floor a four sided fire place, meeting room for 20 guests, club set up seating for 100 guests, a children play area with video, balconies for fresco dining etc.
- the outside children play ground is located on the south side of the property
- common parking for approx. 120 cars
- 4 handicapped parking
- 3 bus parking
- the sales of the first full business year 2005/2006 were $ 2.2 mill. with seven opening days from 11 to 11 / sat and sun 9 to 11 the sales budget called for 3.3 mill. at that time
January 2009/jr-mr
REFINANCING
the property was appraised for <best use> at $ 5.35 million in spring 2006
the appraisal can be updated to substantiate today’s market value
New First Mortgage
by a Canadian bank for 3.2 million with the following requested and preferred conditions:
- two to three years
- 5% interest / $ 160,000/year
- principle on 35 years amortization plan
monthly payments for the lengths of the new first mortgage terms will be fully secured by an escrow deposit of the borrower
the projected escrow funds of $ 600.000 will be earmarked for one purpose only to cover any shortfalls of payments for the term of the new first mortgage for interest, taxes and insurance payments so that any default can ever happen.
Use Of Funds
| retiring <venders take back mortgage and obligations> |
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2.4 million |
| retiring <second mortgage> for properties 1988 and 2008 |
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0.8 million |
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| total <new first mortgage> |
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3.2 million |
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| <based on last appraisal of $ 5.350 mill. the financing ratio would be 60%> |
the departure from our master franchise and license agreements and the 36 year relationship with Movenpick Switzerland and Richtree Canada was finalized and documented in the june 2004 <settlement agreement> between the relevant parties
the comprehensive settlement documents and credentials defined next to other issues reichert’s assignment of its control block of the then public company, mutual and final releases of all parties and confirmed all contractual payment obligations for the subsequent 3 respectively 5 years
these included obligations regarding employment contract, prospective damages, punitive damages, non competition, share holdings etc.
- for the past few years I have been self employed
- an automobile accident in october 2007 changed our life
- since then I have been receiving monthly disability benefits
- because of my disability I could not provide any meaning full support to the business
