|
Part A
Development Options
for
The Magnificent
Waitangi West
Paradise Peninsular
A proposal that allows those who participate
to keep the cake and eat it too
Understand before we proceed that the following is not a business plan as such, but rather a more detailed insight into how a co-operative style community development could be undertaken, what it could include and the very impressive earnings that are possible if an available strategy was to be adopted
Although the options for exploiting all that this unique 8,400+ acre (3,400+ hectare) Pacific island property has to offer are only limited by the imagination, this introduction gives an example of the massive potential that exists for one approach in particular
Step One: A Project Director is appointed
to arrange and oversee all aspects
If an available marketing strategy is adopted the entire cost of acquisition and development can be recouped within a maximum of five years from purchase settlement. Furthermore, in the main the tourist aspect of the development can be self funding.
Let it be clear that this strategy has no relationship
to the 'Time Share' principle
An Eco-friendly Alternative Lifestyle Community Co-Operative is established (other options available here too, such as a private company or trust) comprising of up to 30 participants. Membership includes a 125 acre individual freehold titled allotment for each, complete with a villa or chalet of choice and the potential for establishing a profitable community support operation. As well as an equal share of ownership and revenue from the remaining acreage.
This Co-op purchases the property as a 'going concern' and then undertakes a development where other titled allotments are cut for:
(a) a 30 (or more) family sized unit eco-tourist resort
(b) a 30 (or more) suite accommodation lodge, and
(c) a community centre.
Say 4,000 acres of the remaining area is dedicated to Carbon Farming from which very significant annual income is guaranteed for doing little more than watching the trees grow.
The property purchase price is offered in 30 'portions', each representing 1/30th of the overall acquisition cost, and there is no limit on the number of portions that can be purchased by a single participant.
Once the membership quota is filled (ie: the 30 'portions' have been reserved by qualified participants) the Co-op will be registered as a New Zealand entity - each portion represents one vote and one share of the Co-op revenue - the property will then be purchased by the Co-op on the basis of a walk-in/walk-out unencumbered freehold title as a 'going concern' with 10,000 sheep in stock. The 'going concern' approach averts the necessity to pay Goods and Services Tax (GST) of 12.5% (close to $2 million).
After a 'Project Director' has been appointed
the process could then proceed as follows:
a. Survey of the entire property with a 125 acre (50h/a) allotment being cut for each 'portion' and that participant's personal ownership and use, as well as a 125 acre allotment for an accommodation lodge, a 125 acre allotment for a tourist resort and a 50 acre allotment for a community centre. Each allotment to have a separate freehold title to allow for sale or lease by members or the Co-op if at any time that is desired.
b. Simultaneously the areas to be allocated for forest, roads, golf course, wind turbines etc will be mapped and pegged.
c. Immediately the grounds layout has been mapped the tree seedlings will be planted and then managed by a reputable experienced forestry company until flourishing. Or, if desired, the Co-op could at a far lower cost undertake this task itself by growing the seedlings onsite then planting and handling management during the several weeks establishment period.
d. As the survey stage is in progress the project director organises the sale and shipment to the mainland of 8,000 sheep. The almost immediate net return to the co-op will be in the region of $450,000.
e. Under the guidance of the project director, designers and architects are appointed for preparation of all project plans, including lodge, resort and community centre and the various members' villas or chalets, as well as relevant statutory authority submissions and approvals.
f. If the previously mentioned offshore marketing strategy is adopted it can, if desired, be initiated in advance of any actual development of the tourist aspect being commenced. However, to achieve a self funding objective the tourist part of the project would need to be approached in segments with the infrastructure and the resort first, the lodge second and the community centre last.
Being designed as it is, perpetual paid up tourist traffic would be guaranteed that would not only keep accommodation units filled to capacity for the 9 warmer months of every year after completion, but would also ensure that the other support mechanisms provided by members, as detailed HERE are fostered and profitable. Additional to that all Co-op revenue at any given time will be in hand at least several months prior to the arrival of visitors related to it, allowing for precise logistics planning and no actual operating overheads.
g. Members will need to have funds available in advance to cover the costs of building their private homes, if indeed they will be taking up residence in the initial stages. Those who choose to delay their permanent transition, or plan to reside temporarily from time to time (or perhaps lease their private holding to a third party) could wait until sufficient earnings from their share of Co-op revenue to cover the costs has accumulated - See Projections.
For this general overview it is important to emphasise that over the first five years after the property settlement and the establishment of the offshore apparatus a gross Co-op revenue for sale of live stock, carbon credits and tourist activities would be well in excess of $60 million. From which the total cost of development and operation, including the construction of all facilities (members' homes @ average $600,000 each included), the profit share allowed for a 'Service Sector Co-operative' that is to operate independant of the Mother Co-op, the offshore marketing mechanism and associated logistics, and all other relevant costs would be met and a very respectable surplus would still be available to share around.
Put in simple terms that means within five years members will jointly own outright a totally unencumbered very high yield property that will continue to earn and grow in value regardless of the prevailing global economic situation.
Also of importance, and the main rationale in the initial stages for subdividing the allotments the tourist aspects are situated on, is the potential to sell or lease any or all of these facilities at any time the Community Co-op members consider it prudent. Having a profitable going concern with a guaranteed return already established would certainly not want for interested parties.
Final Note: All buildings are to be prefabricated on the mainland and shipped to Chatham Island in a ready to assemble form; that being a bonanza for the member family who provides the ferry transport and sufficient for them to recoup entirely their cost of participation, regardless of their share of the above revenue.
 To take a look at a couple more options
Return to the Front Page to view all three video presentations | 
