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HomeMy WebLinkAbout(1)SALE OF PROPERTYCITY OF PORT ARTHUR, TEXAS PUBLIC WORKS DEPARTMENT MEMORANDUM: TO: Steve Fitzgibbons, City Manager Public Works FROM: Leslie E. McMahen, P.E., Director of DATE: May 5, 2003 SUB3ECT: Sale of Excess City Buildings A number of individuals have been inquiring as to the availability of the excess City buildings in the downtown area, namely the former Health Department buildings located at 601/603 5~h Street, 615 5~ Street, 621 5th Street, 648 5t~ Street and the old Tritico Building at 7th Street and Mobile Avenue. All of the buildings noted above could b~ sold by consent of the CRy Council and public advertisements, per Section 7, Article XIV of the City's charter (copy attached), even if their individual value is greater than $25,000. All buildings fall within the area specified for this exemption from the usual sale procedures. It would seem to be in the City's interest to sell these properties to buyers that could put them to productive uses, provided we include some performance standards to ensure that they do not continue to lay dormant. maintenance~and-repair work, by direct labor and from maintaining a reasonable force of men for that purpose. Pursuant to Vernon's Annotated Civil Statutes, Article 1105b, the City shall have the power to make any improvement or paving with its own forces, if, in the opinion of the City Council, the work can be done more expeditiously or economically and in such event the City shall have the power to reimburse itself for the cost of such improvement in the same amount and in the same manner as if the work had been performed by a successful bidding contractor. Section 3. No Alteration of Contract for Public Work Without the Consent of the City Council and Contractor in Writing. When it becomes necessary, in the opinion of the City Manager, in the prosecution of any work or improvement under contract to make alterations or modifications in such contract, such alterations or modifications shall be made only when authorized-by the City Council upon the written recommendations of the City Manager. No such alterations shall b'e valid unless the price to be paid for the work or material, or both, under the altered or modified contract shall have been agreed upon in writing and signed by the contractor and the City Manager upon the authorization of the City Council. Section 4. Standard Wage Provision in Contracts. Every contract for public work entered into by the City of Port Arthur shall contain the following provision: "Contractor hereby agrees that ail persons employed in the performance of this contract shall be paid standard wages." Section 5. Contracts for Professional Service. The Council may approve contracts for engineering, appraisal, architectural, legal, fiscal, medical and other professional services for the City without competitive bidding. Such contracts shall not exceed two (2) years, except for completion of work in progress under architectural or engineering contracts. The City Secretary shall maintain a separate file covering these contracts and the City Manager shall furnish the Council annually a detailed report On all expenditures of this nature showing a comparison of the present year with the costs for the past five (5) years. Section $. Citizens Given Preference in Employment and in the Letting of Contracts. Qualifications being equal, citizens and companies of Port Arthur and Jefferson County shall be given preference in employment and in the letting and execution of all contracts over which the City has jurisdiction, direct or indirect; provided that this section shall not interfere with the system of purchasing supplies for the various departments by competitive bidding, as provided in other portions of this Charter. Section 7. Sale of City Property. No right, title or interest of the City in and to any property owned by itj shall be sold except by 5O authority of an ordinance passed by a recorde~ affirmative vote of two-thirds (2/3) of all th members of the Council; provided, however, fha no real property which may be valued by thre (3) independent appraisers in excess c Twenty-Five Thousand ($25,000.00) Doliars sha~ be sold in whele or in part without a referendul election authorizing such Fale; providing further thai the City Council shall not lease any of it lands (except for mineral exploration) for longer period than five (5) years without majority vote of the qualified voters. No fly year lease shall contain an option for renewal Provided, however, the provisions hereof sha not apply to any real property located within th area from Houston Avenue to Augusta Avenue an Fourth Street to Eighth Street. ARTICLE XV FRANCHISE AND PUBLIC UTILITIES Section 1. Power of City Council to Fix an Regulate the Rates, Tolls and Charges of A Public Utilities in The City. The City Coun¢ shall have the power by ordinance to fix an regulate the price of gas, electric lights, electr: power and steam heat, and to regulate and fi the charge of street railways and of ail publ buses, carriages, hacks, and vehicles of ever kind, whether transporting passengers, freight ( baggage, and generally to fix and regulate ti rates, tolls and charges of all public utilities every kind, other than telephone servic. operating within the corporate limits of the Cii of Port Arthur. Section 2. Franchises; Power of Cil Council; Ordinance Granting Franchise Conditions and Right to Regulate. The Cif Council shall have the power by ordinance grant, renew and extend all franchises of public utilities of every character oPerating withl the City of Port Arthur, and with consent of t~ franchise holder, to amend the same; provid( however, that no franchise shall be granted f( an indeterminate term, and that no franchise sh~ be granted for a term of more than fifty (5. years. All ordinances granting, renewing, extendir or amending franchises shall be read at three C separate regular meetings of the City Council ar shall not be passed finally until the final readint which shall be not less than thirty (30) days ftc the first reading. After the passage of t] franchise ordinance on its final reading, it sh~ be accepted in writing by the grantee and sh~ be published once a week for four (4) consecuti, weeks within a period of thirty days after i final passage unless the time for publication extended 'by express provision in the franchi ordinance, which in such-event, the franchi ordinance shall take effect after the publicati, time expressly prescribed therein; provide~ how~¥er, the franchise ordinance shall be subje¢ to referendtu~ as now ~provided or as hereaft may be provided by the laws of the State Texas. 51 VINCENT MIDDLE PAGE 02 Aerokee Foundation A Non ~Profit Organization P 0 Box 1483 Port Arthur, Texas 77641-1483 April 24, 2003 Steve lrltzgibbons City Manager City Of Port Arthur P 0 Box 1089 Port Arthur, Texas 77641-1089 Dear Steve Fitz. gibbons, ds.p. er our conversation I am requesting information concerning said . bmldtng on Proctor Street and 5a Street location. Aerokee Foundation ts interested in this location for the purpose of serving our Non-Profit projec~ I am seeklng your advice and expertise on the best solution to obtain these buildings TRUTH & EDUCATION CORPORATION KOOL RADIO 107.1 LPFM 601 Woodworth Blvd. Port Arthur, Texas 77640 Phone/fax (409) 982-2002 Stephen A. Mosely P.O. Box 703 Port A~ur, Texas 77641 TABLE OF CONTENTS .SEC.TION I. INTRODUCTION PAGE Executive Summary ........................................................................... 1 Description of Business ........................................................................ 2 The Market ...................................................................................... 3 The Competition ............................................................................... 4 Management ................................. , ................................................... 5 Personnel ......................................................................................... 6 SECTION II. GRANTING INFO ,RI~, TION Expected Effects of the Grant (Explained) ................................................ 7 SECTION III. SUPPORTING DOCUMENTS Building Description ........................................................................... 8 Building Diagram .............................................................................. 9 Contractor's Letters (Costs Sheets - A, B, C, D Repair/Replace) A. AC/H units 4 .............................................................................. 10 B. Roof ............................................................................. ; ........... 11 C. Building Interior (approximately 1.000 sqft.) ....................................... 12 D. Parking Upgrade (approximately 300ft +/- ) ........................................ 13 SECTION IV. FINANCIAL DATA (Schedules) Schedule C Pro forma Balance Sheet Calculation .................................... 14 Schedule D Ist Year Pro Forma Income Statement By Month ..................... 15 Schedule E 2ND Year Pro forma Income Statement By Quarter .................. 16 Schedule F 3r~ Year Pro Forma Income Statement By Quarter .................. 17 Schedule G Pro Forma Income Statement Three-Year Summary. ......... ~ ..... 18 Schedule J Depreciation .................................................................... 19 Schedule k Amortization ................................................................... 20 SECTION I. INTR OD UC TION EXECUTIVE S UMMAR Y KOOL RADIO 107.1 LPFM 1 KOOL RADIO is a minority owned and operated broadcasting company. Licensed as a non-profit non-commercial community service radio station (with an approximate 10mi. radius), will fill a variety of voids while maintaining a professional level of programming. With our large ethnically. diverse listening audience, KOOL RADIO will provide our listeners with a format that will satisfy almost any audience's listening pleasure. Our initial programming includes Gospel, Jazz, live-talk, news, weather; sports and feeds from local and national NPR affiliated stations. Careful analysis of the potential market shows an unfilled demand .for this unique brand of entertainment. Mr. Kermitt Morrison Jr. and Mr. Stephen A.. Mosely's local reputations will help secure a portion of the listener's trust, while the experienced on-air staff and management team assures that the entire operation will be carefully controlled. Mr. Mosely's past experience as an Executive Director of a well known non- profit organization and current owner/manager of his investment company (West Star Investments), will provide adequate control over the projected growth of KOOL RADIO. Additionally, Mr. Morrison's advice and experience as a practicing judge and attorney will be available if required. Stephen'A. Mosely is seeking $65,000 for office building renovations and property improvements. The funds sought will result in a greater increase in fixed assets that will be shown on the Balance Sheet. Since Mr. Mosely has been performing much of the renovations and improvements himself, it is not anticipated that hi~ labor will be capitalized. DESCRIPTION OF THE BUSINESS KOOL RADIO 107.1 LPFM KOOL RADIO will specialize in listener radio satisfaction through member supported contributions and foundation grants for the promotion of music and educational content (Grade school, College, Political concerns and various '"live-talk "programming). We wilI attract a mature audience that will not only be loyal to our format but also has a high spendable income and looking to purchase the various products and services with our member supported merchants. Hence, KOOL RADIO has created an ideal environment in which to place member supported messages. 2 THE MARKET KOOL RADIO 107.1 LPFM KOOL RADIO will continue to provide premium quality radio to our listening audiences. This market has a total population of approximately 100,000+/- people. Customers will be attracted by: (1) direct approach to business; (2) advertising campaigns; (3) word of mouth advertising and location on a heavily traveled route. Knowing the purpose of advertising, encourages us to effectively transmit our information to our listeners and getting our customer's message across to as many prospects as possible. And, to encourage them through repeated reminders about the importance of our member supporting merchants. It is important to remind our listeners how their support will enable us to continue providing our community with programs and important information they deserve. Recognizing that radio advertising is not overnight magic but CAN contribute to a steady increase for their business concerns. If our members expect only that, chances are they will be gratified and successful in building store traffic and realizing their profit expectations. KOOL RADIO has a demand for radio 24 hrs. a day however, to keep the format operating from 9am to 9pm daily, will give us a chance to meet our obligations while increasing our members and listeners base. With the quality perception of our radio station and our many personal friends in the radio industry, we do not anticipate difficulty maintaining good relations with our suppliers and members. 3 THE COMPETITION KOOL RADIO 107.1 LPFM There are several AM/FM stations directly competing with KOOL RADIO. Those competitors are: KOLE - On the air in 1983 with a Southern Gospel format. Located in Beaumont, Texas; is a i000watt day/night radio station with enticers. Had' been losing money since it's beginning over 16 years ago. FM sister station KTFA (5000watt day/night station) has been covering KOLE's losses to keep it afloat. However, about September or October of 2001, their Board of Directors sold KTFA and continues to operate KOLE. KItUD - On the air in 1977 with a Hispanic Christian format. Located in Port Arthur, Texas; is a 300-400watt day broadcasting station. Has had difficulty reaching their small listening audience for supportl Set-up linking station coupled with their sales Staff at KOLE to assist them with their on-air programming. KSHN - Located in Liberty, Texas; is a 50,000watt day/night station with an all adult contemporary Christian format. KVLU - Located in BeaUmont, Texas on the campus of Lamar University; is a National Public Radio (NPR) non-profit non-commercial member supported radio station. It is a full power radio station with a wide range format. Live-talk, Classical music, contemporary Jazz, radio reader and news from member stations around the world. KALO - On the air in 1984; is a 5000watt day and 1000watt night station with a mixed listening audience. The format consisted of Gospel, Rhythm & Blues, Zydeco, live-talk, news, weather and sports programming. KALO was sold in late 1999 to the Catholic Dioceses, leaving a gigantic void for former KALO listeners. With the lost of this format, an opportunity is now available to pickTup this. existing customer base and expand on the potential yet untapped. 4 MANAGEMENT KOOL RADIO 107.1 LPFM Mr. Mosely was bom in Port Arthur in 1953 and has lived there all his life. After graduating from Port Arthur schools, he was employed as a laborer with Fina Oil Refinery in 1974 and is currently employed with his same employer now called AtoFina. Since 1974, Mr. Mosely has moved up in the company's structure to a Laboratory Tester. Also, an active program developer in Atofma's Community Involvement Committee group. While working 12-hour shifts, Mr. Mosely returned to college to complete his education in Real Estate and then received his degree in Liberal Arts from Lamar University which is now called Lamar State College of Port Arthur. Mr. Mosely's ultimate aim was to own and managing his company, which he does today "West Star Investments", a real estate and land development company. Mr. Mosely served on the initial board of the City of Port Arthur's Economic Development Corporation for the city's economic recovery efforts. Mr. Mosely worked for a major non-profit organization in Port Arthur as it's Executive Director (Organization of Christians Assisting People Inc. (O.C.A.P.). Mr. Mosely served in many capacities helping tO lead the organization out of financial hardship during a time of govemmenta program cutbacks and job elimination. Mr. Mo'sely was responsible for program development, fiscal and budgeting program oversight, personnel, human resources, payroll, board meetings, public relations, building maintenance and security. Mr. Mosely is young, energetic and is very excited about this opportunity wherein; he is looking forward to employ his visionary concepts and ideas leading this business into a very exciting future. 5 PERSONNEL KOOL RADIO 107.1 LPFM KOOL RADIO - Will hire a Chief Operating Officer (C.O.O.), General Manager, three part-time sales associates, three air-personalities and a secretary. The C.O.O. will be paid a wage of $30.00 per hr. for a week's work (5 days); overtime is anticipated. The General Manager will be paid a wage of $10.00 per hr. for a week's work (7 days); overtime is anticipated and will be paid at 1½ times rate of pay for time worked. The Sales Associates will be paid a wage of $8.00per hr. for a 5 day work-week. We will also employ (on an as needed basis) two-to four Air Personalities at a wage of $8.00 per hr. One Secretary, part-time for related matters, at a wage of $5.00 per hr. Salary Breakdown *C.O. Officer - One ~ $30.00 per hr/Sbt.days. 5 days a week, for 12 months -- $57.500yr Gen. Manager - One ~ $]0.00 per hrJShr, days, 7days a xveek, for 12 months = $26,000yr. **Sales Assoes. - Three ~ $8.00 per hr./4hr, days, 5days a week, 12 months = $23,040yr. Air Persons. - Three -Four ~ $8.00 per ~./4hr days, 7days a week, 12 months = $32,256yr. Secretary. - One ~ $5.00 per hr./4hr, days, 5days a week. 12 months = $4.800~. *C.O. Officer - Salary/Benefits will accumulate until organization is able to compensam **Sales Associates - Will be added, as organization is able to accommodate. 6 '~ SECTION II. .i · INFORMATION EXPECTED EFFECTS OF GRANT KOOL RADIO 107.1 LPFM Proceeds of the $65,000 will be used as follows: RENOVATIONS - The renovations consists of a Hip/Slope roof replacing the 20 year old leaking flat-roof. Replacement of four (4) CAJH units, thus reducing the expected higher fuel costs associated with the current t 5 years old obsolete high maintenance units. Interior floors, walls, ceilin~lighting renovations and parking lot upgrade. (Refer to contractor's letters under Support Documents) 7 SECTION III. SUPPORTING DOCUMENTS KOOL RADIO 107.1 LPFM KOOL RADIO will be utilizing a 3.000 sqft. One story office complex owned oy Mr. Stephen A. Mosely. The area is zoned for commercial use. Woodworth Blvd. is part of U.S. route 69, 96,287 .... a heavily traveled tourist, college and downtown route. With most business nearby, catering to tour/si trade and college activity is a great location fo'r advertisin= oppormnities(Mardi Gras, Christmas and vario~us hoiiday evenrs~ Mr. Mosely has performed major building and landscaping improvements includi.ng adding textured walls, room-to-room carpeting, office furniture and guest furnishings. Decorative pane-glass steel front doors and a newlv installed telephone system; sufficient to handle six phone numbers and 66 extensions, exemplifying ,.Mr. Mosely's vision for future growth. The building has been reformatted to provide the following: 1. Receptionist Area- 336sqft. 2. D.J. Broadcasting Room - 209sqft. 3. Guest Room - 807sqfr. 4. Conference Room- 180sqf~. 5. Production Room - 110sqft. 6. Sales Staff Offices. Kitchen and five (5) Rest-rooms rotating approximately 600sqft. 8 WEST STAR INVESTMENTS Stephen A. Mosely President P.O. Box #703 Phone ~-L~J'-~/~9.,- ~ 6'~ ,'"]_/ Port Arthur. TX 77640 P~ger ~/-~ - ?'~ 0-~ ~'~ CONTRACTOR'S LETTERS .I 11 AC/H REPAIR - REPLACEMENT COMFORT ZONer; INC. CENTP~L HEAT/LIND AIR CONDITIONING Phone 962-8327 - 722-0857 - 735-6575 - 866-9551 Fax 962-0376 3166 Main Posl Office Box 605 Groves, Texas 77619 TACLAD12314E WHEN WORK 15 COMPLETED, WE PROPOSE'TO FURNISH ALL LABOR AND MATERIA~ FOR NSTALLATION OF CENTRAL HEAT AND AIR CDNOITIONING_ ~~/~/~ SPEglFICAIIONS FOR WORK NEEBEB · DUCT INSULATION ATTIC INSULATION TH~rRMOSTAT SLAB DUCT SIZE NUMBER OF DUCTS TYPE DIFFUSERS RETURN GRILL CA~y ~MBLIC CIABILITY. WOR~MEN'S COMPENSATION, AND PROPERTy DAMAGE I~$URANCE. ABOVE WORK WILL BE COMPCETED ON OR BEFORE :CEPTEO: THE ROOF 1 REPAIR / REPLACE iI 1 CARMAN'S CARPENTRY SERVICE 1449 GULFWAY DRIVE PORTARTHUR, TX 77640 (409) 982-0817 The undet~LEned Contractor, sFees to romtslt All mal~erlels ~ad labor neoauary for the work (specified below) an premises located at No. Lot No. SubdlutiLon (I) (We), the OWNER, agree to pay you Lite sUIll Ufl am follows: $ ~ ~ .upon nighing ~l~ lhi~ ngreemont $ - o __ upon hair or comptoti.n UPon completion or laid work (I) (We) turther iiree Lo pay the lure of $~] . -- ~ [allows: Cash (l~ any) $ ~ ~ ,sod Lo execu~ · p~om~ory nolo [o~ ~ plus in~restpayabie in ~ O ~ equ~ monthly instalment. Ithoae) Doila~ ($ SPECIFICATIONS FOIl. MATERIA~ AND LABOR To be applied (or furnished} (or constructed) to following areas: /f ~ -- ~ This Contract ehall become binding on]y span written accel)Lance hereof by the Contractor or by an auf;horizncl agent at' the Contractor; or upon commencement of Lbo work. It is understood that the Contractor ia not un agent nor a sub-contractor Of any other corporation, and that no othar corporation ia a party to thio Contract. This Contract c~netltu[es Lite enLite understanding of lite parties, end no other under~L&ndlng, ¢olieKaral or other,wi-e, shall be binding unless in writing signed by both parties. IN WITNESS WHEREOF the undersigned i,ave hereunto subscribed their names the day and yea fhlt above w~ittaa. Contracto! BUILDING INTERIOR REPAIR / REPLACE CARMON'S CARPENTRY SERVICE 1449 GULFWAY DRIVE PORTARTHUR, TX 77640 (409) 982-0817 Lot No, Subdivision (I) (We), the OWN~',It, sgree to pay you the sum Of: ar Iollows: $ ..s.~'-.-- .upon signing of this ngremnen[ $ ~ upon half or cmnpleLion Upon completion of s~ld work (Il (We) further ~gree to p~y the sum of ~ ~ am [ollowt: Cash (l~ any) $ ~ ,and toexecu~ip~om~ory note ) plusin~gest ~ayabie In ~ ~ equ~ monthly instalment, 'l%e un, denllg~ed Contractor, egress to furnish all materials a~d labor necesaer~ for the work (s~ci~d below) on SPECIFICATIONS FOE MATERIAL AND LABOR To t~e applied (or furnished) (or constructed) to following areas: z, . _ ' , ~ / ~/ . ' 0 . This Contract shall become binding only upon written acceptance hereol" by the Contractor or by an authorized agent of the Contractor; or upon commencement of tho work. It ia understood that the Contractor is not an agent nor a eub-con~rac~or of any other corporation, and that no other corporation Se o party to this Contrnct. This Contract constitutes tile entire understanding of the parties, and no other understanding, colieteral or othe~'wlma, si:all be binding unless in writing signed by botl~ parties. 1N WITNESS WHEItEOF the undersigned have hereunto subscribed their names the day and year finer above wsitt~ss. WEST STAR INVESTMENTS Stephen A. Mosely President RO. Box #703 Phone i~t!/~-q<~:~ Port Arthur, TX 77640 ~ger ~r~ _ A LA MO GLASS OF POll T Atl THUR INC. February 15, 2002 ! PARKING FACILITY UPGRADE CARMON'S CARPENTRY SERVICE 1449 GULFWAY DRIVE PORTARTHUR TX 77640 (409) 982-0817 The undersii~Jed Contractor, e~ees to furnish all materials M~d hboz n~u~ for the work [.~cl~d ~low) on (I) (We), tl~e OWNER, ~r~e ~ p~y you the ~um [ollowl: [ '--~-- .upon sigmt~[ ~fLIds t~reemont ~ ~ ~ ~ upon h~r or compJeLitm Upon completion ~[ said work (l) (We) furtiter follows: Cash (if ally) $ ~ ~ ~ and Lo execu~ plus in.rest ~ayable In ~ ~ ~ equ~ tnon~hly [nstglmen~. SPECIFICATIONS FOIl MATERIAL AND LABOR To be applied (or furnished) (or constructedl Lo following arees: This Contract shall become binding only upon written acceptance hereof by the Con.actor or by aa authorized agent of tl~e Contractor; or upon commencement ~)l' tho work. It is understood that the Contrector is not an. aget~t nor a sub-contractor of any other corporation, and that no other corporation is n party to this Contract. This Contract constitutes Lite enLire undersLandlng of Lite parties, and no other understanding, collateral or othorwiss, ' shall be binding unless in writing signed by both parties. tN WITNESS WHEIIEO F Lite undersigned have hereua[o a/~bscribed their names file day' and year fl~t above written. I' I' SECTION IV FINANCIAL DA TA (SCHEDULES) iI FINANCIAL SCHEDULES Schedule C - Pro Forma Balance Sheet Calculation Schedule D - 1st year Pro Forma Income Statement By Month Schedule E - 2ND year Pro Forma Income Statement By Quarter Schedule F - 3rd year Pro Forma Income Statement By Quarter Schedule G -Pro Forma Income Statement Three-Year Summary Schedule J - Depreciation Schedule K - Amortization SCHEDULE C - PRO-FORMA BALANCE SHEET CALCULATION ASSETS CURRENT ASSETS Cash Accounts Receivable (net) Merchandise inventory Suooiies Organization Costs Total Current Assets FIXED ASSETS Fixtures Vehicles Equipment Renovat on/improvements E~uilding Land Less Accumulated Depreciation * Total Fixed Assets TOTAL ASSETS LIABILITIES & NET WORTH CURRENT LIABILITIES Accounts Payable Current Portion LTD Credit Line Drawn Other Total Current liabilities LONG TERM LIABILITIES Bank Loan Payable Other Loans Payable Total Long Term Liabilities Total Liabilities Net Worth: Owner's Equity TOTAL LIABILITIES & NET WORTH AS OF 2J28/2002 DEBIT CREDIT 67,000 65,000 93 000 7,000 PRO-FORMA 35O 350 67.000 65,000 93.000 7.000 350 350 144,603 144,603 144.603 144.603 150,000 150.000 82.000 82,350 232.000 232.350 350 232.000 5,397 5,397 350 350 5,397 5,397 232.350 232,000 232.000 l CASH RECEIPTS CORPORATE GRANTS INDIVIDUAL GRA~T$ GROSS PROFIT (Line 1 + 2) 5 OPERATING EXPENgES: 6 . Advertising & Promotion 7 Bad Debts 8 Car & Delivery 9 cormmssions 10 Depreciation 11 General Office Admi~stratic~ 12 hsm'ance 13 Interest 14 Legal & Accounting 15 Operating Supplies 16 Contxact Labor 17. Salaries&Wages ' 18. Payxoll Taxes 19. Rent 20. Repam* & Maintenance 21 . Taxes & Licenses 22 . Utilities i23. Miscellaneous 24. TOTAL OP. EXP. (Lines 7-24) 25 fLOSS) PRE-TAX (Line 6 - 25') PROF 26. TAXES (Line 26 X Rate) 27 brET PROFIT (LOSS) (Line 26 - 27) SCHEDULE G PRO-FORMA INCOME STATEMENT THREE-YEAR SUMMARY IST YEAR 41 000 7,400 48,400 2ND YEAR 60,000 8,400 68,400 19,992 14.400 12.843 300 1.663 11.805 600 600 12,843 300 1,664 3,722 6OO 60O 63,936 7.033 63,936 7,033 3OO 3OO 7,200 300 126,572 (78,172) 7~00 3OO 112,898 (44,498) (78,172~ (44,498) 3RD YEAR 66.000 9,400 75,400 11.200 12, 843 3O0 1.664 3,359 6O0 6O0 63,936 7,033 300 7,200 300 ~ . .... 109,33S (33,935) (33,935) 18 SCHEDULE J - DEPRECIATION Fixed Assets Years Depreciation Amount Life Annual Monthly Fixtures 7 Automated Set Up Equip 17,000 10 1,700.00 141.67 EquipmentJFumishings 50,000 7 7,142.86 595.24 Renovations 65,000 39.5 1.645.57 137.13 Buildings 93.000 39.5 2.354.43 196.20 Land 7,000 0 Total 232,000 12.842.86 1,070.24 Truth and Education Corporation SCHEDULE K - AMORTIZATION Original Loan Amount Payment #1 Payment #2 Payment #3 Payment ~ Payment ~ Payment #6 Payment #7 Payment #8 Payment #9 Payment #10 Payment #11 Payment #12 Second Year Dy QuaKers Balance Forward Payment flint quarter Payment second ~uarter Payment th[rd quarter Payment fourth cuarter Payments Total Interest Principal 1,433.49 1,000.00 433,49 1.433.49 997.1 ~ 436.38 I 433.49 994.20 439.29 1,433.49 991.27 442.22 1,433.49 988,32 445.17 1.433.49 985.36 448.13 1,433.49 982.37 451.12 1,433.49 979.36 454,13 1,433.49 g76,33 457,16 1,433.49 973.29 460.20 1,433.49 970.22 463.27 1,433.49 967.13 46636 11,804.96 5,396.92 4.300.47 964,02 3.336,45 4.300.47 941.78 3.358.69 4.300.47 919.39 3.381.08 4 300.47 896.85 3~403.62 3.722.03 13.479.85 Balance 150,000.00 149.566.5~ 149,130.13 148.690.84 148.248,62 147,803,46 147,355.32 146.904.20 146,450.07 145 992.92 145.532,71 145069.44 144,603.08 144,603,08 141.266.63 137.907.94 134,526.86 131 123.23 Third Year by Quarters Balance Forwar¢ Payment first quarter Payment second (~uarter Payment third ~3uarter Payment fourth (~uaner 4,300.47 874.15 3.426.32 4,300.47 851.31 3 449.16 4,300.47 828.32 3 472.15 4,300.47 805.17 3~495,30 3.358.96 13,842.92 13%123.23 127, B96.92 124 247,76 120.775.61 117,280.31 I ', INSURANCE 'i COVERAGE PREMIUM SUMMARY: QUOTE # B95428 Business Owners Policy Coverage Business Auto Coverage Membership Fees Total Payment Plan Options: (Explain down payment recruited and payment plan terms) PREMIUM $1,6o8.00 $ $ 5o.oo $1,658.00 Farmers. Gets you back where you belong. ! ! RADIO STATION !START-Up ESTIMATE i. LOW POWER FM RADIO STATION START UP ESTIMATE (BASIC AUTOMATED SET-UP) I1 mi EXCITER/TRANSMITTER 100 WATTS ................ $3,000 TOWER ......................................................... 3,000 COAX/CABLING ............................................. 700 AUDIO PROCESSING ....................................... 300 AUDIO MIXER ................................................ 400 COMPUTER AUTOMATION .............................. 3,500 MICROPHONE ................................................ 100 MIC/ARM ...................................................... 1.00 MISC. WIRING ................................................ 200 2 CD PLAYERS ................................................ 250 1 CASSETTE PLAYER ....................................... 150 LABOR FOR INSTALLATION ............................. $4,000 (UP TO 40 HOURS ON-SITE LABOR} SALES TAX .................................................... $1295.25 TOTAL ESTIMATE $16,992.25 MAIN STUDIO IS ALSO USED FOR PROD UCTION This estimate includes engineer's travel time and expenses. This system includes a sophisticated automation system that will allow completely unattended operation if desired. This allows you to cut overhead associated with staffing a radio station 24 hours per day. The system will play al music, announcements, weather, etc. Once you record all the announcements, weather, etc, you can walk away and forget about it. The system can store as much as 9,000 songs, ir will be a long time before you outgrow this system, if ever!