Evansville City Councilman John Friend released his requirements to properly be able to VET the proposal by HCW of Branson, MO to be provided $37.5 Million in cash and site improvements by the City of Evansville. The list looks quite similar to the list asked for from the previous three developers that failed to get financing for various reasons even after public assistance was offered to them by the City. The list is as follows:
1. Due Diligence work papers,
2. Comprehensive Business Plan, the following is the minimum what would expected:
a. Executive Summary
b. Marketing, proof of the necessity of Retail Space both for the hotel and out-structure
c. Five years of Cash Flow by line item…Garage, Out-structure, & walkways presented separately
d. Income Statements [Five Years] by line item
e. Balance Sheets [Five Years] by line item
1. Capital Improvement Budget by category for ten years
f. Management Structure
1. Salaries and Wage Info, number of employees by category and historical info on experience levels
g. Letters of Financing Comment subject to…Terms and Conditions and expected Final Financing parkage.
h. Capital Structure, Equity vs. Debt, and the Debt Service Requirements
i. Equity, Free Capital vs. leveraged Capital
J. Historical Financial Information [reviewed F/S] on all related entities for 2012, 2011 & 2010 including tax returns includes brother/sister entities and the returns of the
k. Corporate Structure, LLC vs. Corp… % of ownership, Certificates of Good Standing in the State of Indiana, articles of incorp. for all related entities
l. Proof of Performance Bonding
m. Personal Finance Statements on all equity holders holding 5% or more.
n. Construction Cost Budget by line item, includes out-structure, walkways, Garage
o. Projected Appraisal of Structure upon completion, MAI certified.
p. Franchise agreement disclosing covenant provisions, i.e. minimum in operations and employee levels
q. Bank References
3. Detail improvement plans on Centre
4. Maintenance requirements for out-structure, walkways, and garage over the next five years.