Business and Startup Studies

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BUSINESS PLAN


                   Name and Address:  CASCADE WORLD FOUR SEASON RESORT
                   Parent Co. of Alder Creek Divide Recreational Area
                   P.O. Box 885
                   Montague, CA. 96064
                   E-Mail aldcrek@snowcrest.net
                   
                   Jeffrey Chitwood, CPA
                   Yreka, CA. 96097
                   530 841 1501

                   Ted Beeler, SE Group
                   425 653 5694/FAX 453 4734

                   Larry Christensen
                   Alpine Consultants, Inc.
                   949 855 8058 FAX 830 4465


Statement of       This plan will outline the major short and
Objectives         long term objectives for Cascade World Four
                   Season Resort an all-season Outdoor
                   Recreational facility.

                      (1) Master Plan
                           (a) Environmental Impact Report (EIS)
                           (b) Financial Feasibility Study (Sno-Engineering (completed)
                           (c) Market Feasibility (Sno-Engineering (completed)
                           (d) Designing/Image Development (Dick Cowardin & SE Group (completed)
                        2. Permit Process
                           (a) California Department of Fish & Game (DFG)
                           (b) California Department of Forestry & Fire Prevention
                           (c) California Environmental Quality (CEQ)
                           (d) California Water Quality
                           (e) Siskiyou County Department of Public Health
                           (f) Siskiyou County Department of Public Service
                           (h) Siskiyou County Planning Department
                           (i) National Environmental Policy Act (NEPA)
                           (j) Department of Agriculture, U.S. Forest Service
                           (k) U.S. Department of Fish & Wildlife Service
                           (l) Army Corps of Engineers
                           (m) Any other agencies that is required by NEPA
                        3. Planned Development Changes ie. Zoning Changes to
                           reflect specific land use requests by developers
                        4. Purchase private property and negotiate any land lease
                           agreements
                        5. Land exchange with U.S.Forest Service
                        6. Water rights agreements
                        7. Board selection, staffing procedures, negotiate contracts
                           for construction and design
                        8. Market planning organization and implementation
                        9. Drill water wells and build ponds for water supply for
                           snow-making, fire suppression and recreation (fishing)
                       10. Commence upgrade of access road from the Tennant County
                           Road (March)
                       11. Commence construction of ski development (May)


Location of Project   Located 28 miles NE of Weed California, which is
                      located on Interstate 5 (I-5), there you turn on
                      U.S. Highway 97 that goes to Central Oregon &
                      Washington, until you come to Siskiyou County
                      Tennant/Bray Road.  The proposed Ski Development
                      is approximately fourteen miles from the U.S. 97
                      Highway.

                      Amtrak runs approximately four miles from the
                      proposed Ski Development on its run to Klamath
                      Falls Oregon.  There is already a RR siding in
                      place for the proposed depot (on private
                      property), Penoyar siding.  There is an electronic
                      safety gate in place on the County road to Tennant.

                      The nearest large Airports are in Klamath Falls
                      Oregon and Siskiyou County Air Port, Both have a
                      Runway of over 7,000'.  Both Airports are
                      approximately 45 miles from the proposed base
                      area of the project.  There is a small County
                      airport 22 miles to the North in Butte Valley
                      just off U.S. Highway 97. The proposed ski area 
                      development is approximately seven and a half 
                      miles in on Siskiyou County road 6P01, and another 
                      seven miles in to the proposed parking area on 
                      U.S.F.S. roads 44N21 and 43N09.

Private Lands         Procure enough private property to exchange for
                      all of Section 24, T43N, R2W in the proposed ski
                      development of approximately 3,200 acres.

                      Section 29, T43N, R1W in the ski development is
                      owned by four different owners, which are all
                      willing to sell.

U.S.F.S. Permit       The U.S.F.S. land within the proposed ski
                      development would come under a use permit fee.
                      The applicant will be required to have a percentage
                      of the estimated development costs of Phase I and II
                      in cash or readily convertible assets. Bid deposits
                      will be required with the bid of the project. There
                      will be fees charged when operations begin on the
                      gross amount of profits.

                      The proposed area is in the Goosenest Ranger
                      District on the Klamath National Forest.
                      Under President Clinton Option 9 Forest
                      Management Plan an ADDITIVE MANAGEMENT AREA
                      (AMA) was established in the Goosenest Ranger
                      District for economic diversification. The
                      proposed Alder Creek Divide Recreational
                      Area is in the AMA plan.

Environmental         No significant environmental constraints have been
                      identified which would preclude development of the
                      recreational facility.

Cultural Resources    Known cultural resources appear to be common to many
                      other regions of the Klamath National Forest.

Competition           At present time there are two operating Alpine
                      Ski Areas and One Cross Country Ski development
                      within the Regional market area.

Advertising           After permits have been obtained a full blown
                      advertising campaign will proceed with the news
                      media and advertising through TV, radio, bill
                      boards, and 1-800 telephone number, and magazines
                      for vacations for winter, spring, summer, and
                      fall will be advertised in.  Points of interest
                      throughout the area will also be advertised,
                      such as Cater Lake National Park, Lava Beds
                      National Monument, and the three wildlife refuges
                      within the area.

Staff Training        One of the primary objectives is to provide
                      formal training for the staff.  A written manual
                      will focus on the customer service factors
                      involved.  Staff members will be encouraged to
                      take courses offered by the local schools that
                      will better their self esteem and establish an
                      enthusiastic, customer oriented atmosphere.

The Local Market      Forest Service studies show a potential for
                      467,000 skier visits within the primary region.
                      A study completed in February 1986 by
                      Natelson/Levander/Whitney has shown the primary
                      market in 1990, in seven different model names,
                      with a low of 145,332 to a high of 677,501. A
                      study completed for the Mt. Shasta Ski Area Inc.
                      by Economics Research Associates in October 1987,
                      shows a skier primary market of 488,057 in 1990.

                      Redding California, Klamath Falls and Medford
                      Oregon are the biggest towns within the Primary
                      Market.

                      In 1981 a report on Mt. Bachelor Ski Resort was
                      completed, to see what effects an expansion of
                      that resort would have on the Bend area.  In that
                      report there are two interesting figures given.
                      Over 90% of the people visiting Mt. Bachelor
                      depend upon the private automobile, and
                      average of three people will occupy each car.
                      By the year 2000 the forecast is for 159,080
                      skiers from California.  A call was made in
                      1991 to see if they are meeting this predication.
                      A representative of Mt. Bachelor in marking said
                      they had already surpassed that figure.

                      The primary market area population (100 mile ring)
                      for 1995 is projected to be 625,923.
                      It should be noted that the market analysis doesn't
                      assume development of Cascade World Village.

The Regional Market   Regional ski areas and resorts typically draw skiers from
                      within a 5 hour driving radius or approximately 250
                      miles. This would take in Medford, Grants Pass
                      Oregon, and Eureka, Crescent city, Red Bluff, and
                      Chico California.  Population in that region is
                      1,800,000 including the local market.


Budget                   The total project cost will be approximately fifty
                         five million dollars ($55,000.000.00) for the ski
                         development.

                         Chair Lifts for first phase. . . . $ 8,000,000.00
                         Day Lodge, Road, Sewer, Water,
                         Maintenance Shop, all permits and
                         Building Plan and other work as
                         required. . . . . . . . . . . . . $ 27,000,000.00

                                                     TOTAL $ 35,000,000.00

Administration        The following administrative plan will be initiated:

                       1. Reports will be generated every 30 days
                          showing sales etc.

                       2. A profit and loss statement will be generated
                          every 30 Days.  These figures will be
                          compared to the budget, and will after one
                          year of operation be compared with past
                          performances.


Village Development    Located at between 5,800' to 6,400', the village
                       will have the following amenities: Main Day Lodge
                       (open year around), Golfing, Mt. Biking, ATV Riding,
                       Hiking, Swimming Pool, Tennis, Snowmobiling, Snowplay
                       Area, Skiing (Alpine & Cross Country), Snow Shoeing,
                       Snowboarding, Ice Skating Rink, Lift rides during
                       summer to Alder Creek Divide (Vistas), Dinning at
                       the top of the ridge, Interpretive Center Volcanic
                       Geology), Hiking trail into the volcanic crater of
                       West Haight Mt., Shopping Area, R.V. Park, Motel and
                       Condominiums, Hunting and Trout Fishing.

                       Other amenities within a two hour drive or less:
                       Three Wildlife Refuges; Crater Lake National Park;
                       Lava Beds National Monument; Klamath River (rafting);
                       Mt. Shasta Wilderness; Volcanic Scenic Highway;
                       Medicine Lake & Ice Caves; Klamath Falls Museum;
                       and several Golf Courses.


Ski Development        (ALDER CREEK DIVIDE) Ski development would start as soon
                       as permits are in hand with five chair lifts. Estimated
                       cost, $ 35,000,000.00 over a five year period. Twelve lifts
                       would be constructed over a seven to ten year period. Night
                       skiing and an alpine slide is being considered in the plan
                       development. The base area will be in Section 24, T43N, R2W
                       at an elevation of 6,400'.  The elevation of West Haight Mt.
                       is 8,002'.  There are two chair lifts that extend below
                       the base area at 5.800' elevation.  This gives the area a
                       vertical rise of 2,200'.  Exposure is north. The "Skiers at
                       One Time" (SAOT) within the seven to ten year period will be
                       9,000 plus.  It will provide an ideal mix of skier terrain for
                       family and recreational skier groups:  First phase:  15% beginner,
                       70% intermediate, and 15% advanced.  Final phase:  15% beginner,
                       65% intermediate, 20% advanced.  There will be over 40 acres
                       for sledding and snow tubing.  Each phase will significant
                       separate area for the growing snowboard population.

                       The already existing snowmobile system will be tied into
                       the ski development for more winter activity.


SUMMARY

WEST HAIGHT MOUNTAIN (ALDER CREEK SKI DEVELOPMENT)
          The potential development of a Alpine ski area on the
          north slopes of West Haight Mountain described in this
          analysis. West Haight Mountain is located 15 air miles
          northeast of Mt. Shasta near the Old Logging Town of
          Tennant and the Old Railroad Town of Bray. The site
          ranges in elevation from approximately 5,600' to
          7,800'. The site boundary includes approximately 2,800
          acres of the Klamath National Forest in the Goosenest
          Ranger District. At full development the site would
          support approximately 8,300 SAOT (SKIERS AT ONE TIME).

         This proposal is for a year round five star destination resort.

         SAOT - estimated by multiplying the
         acreage of ski runs against the appropriate density factor
         for the slope class (i.e., skiers per acre), that represents full
         development. The acres of runs are estimated by the
         amount of skiable terrain within the area boundary. The
         density factors used for the three slope classes are:
           Beginner - 15 skiers/acre
           Intermediate - 12 skiers/acre
           advanced - 5 skiers/acre

         SNOW CONDITIONS
         No snow avalanche hazards have been identified within
         the analysis area.
         The average snow depth for the base area is 60 inches
         (Base Area elevation 6,400'). Northern California and
         Southern Oregon was in a drought from the fall of 1983
         to the fall of 1993 (Snow depths records on file with
         Dick Cowardin).


         THE AFFECTED ENVIRONMENT

         HYDROLOGY
         Two springs are the prominent surface water resources
         in the analysis area. It is anticipated that
         groundwater resources are present and in relatively
         large quantities in the area.

         VEGETATION
         Mixed conifer forest cover the lower elevations of the
         area. Red Fir, and White Fir, except for small areas of
         subalpine vegetation on the peaks.

         WILDLIFE
         Surveys have indicated that no federally listed
         threatened or endangered wildlife species are present
         in any of the analysis area.
         Spotted Owl were vocalized for , but there was not any
         responds.

         CULTURAL RESOURCES
         Of the approximate 3,000 acres of public land within
         the analysis area, about 565 acres have been completely
         inspected and one historic site found. Evidence of
         prehistoric use in this area is limited to single,
         isolated artifacts. Some sites are likely to occur on
         those lands that were railroad logged early in this
         century.

         ECONOMICS
         Most of the economic impacts resulting from the
         development of a downhill skiing project in the
         Siskiyou County area would occur in selected
         communities situated along I-5.
         The visitor industry in Siskiyou County is becoming
         increasingly important to the local economy.



        WEST HAIGHT MOUNTAIN
         Description: The purpose of this is to describe and
         analyze the potential development of alpine skiing on
         the north slopes of West Haight Mountain. This area is
         located northeast of Mt. Shasta near the town of
         Tennant. It ranges from about 5,800' to 8000' in
         elevation. The site boundary takes in approximately 320
         acres of private property. At full development the site
         would support about 8,000+ SAOT. The ratio of
         Beginner/Intermediate/Advance is approximately
         15/65/20. Facilities would take place on private
         and National Forest lands.

         The "Cascade World Four Season Resort" would develop
         private lands to provide a year-round five star
         destination resort.

         Facilities: The area would be served by three lodges
         and one parking area. The main lodge for
         the ski area would be located west of Filson Springs.
         This facility would provide visitors and staff with
         administrative offices, ski equipment rental and repair
         shops, sports shop, cafeteria, ski school, ski patrol
         headquarters, first aid station, and rest-rooms. Restrooms
         and cafeterias would also be provided at the
         other two lodges. A separate maintenance area would be
         constructed near the main base lodge. This facility
         would service and store snow cats back - hoes, and
         snowmobiles and other heavy equipment that are required
         for the operation of the ski area.

         Utilities: Electrical power would be brought in from
         off-site primarily by underground transmission lines.
         Telephone service would be established by microwave
         link to existing off-site stations. Underground
         telephone lines would connect the ski area facilities
         to the microwave link.

         Gasoline and diesel fuels would be stored at the
         maintenance center for use by the operator. Heating oil
         and propane gas would be stored at the base lodge for
         heating and cooking.

         Groundwater wells would be used to meet water needs.
         Irrigation needs would also be met by using groundwater
         and sewage grey-water. Sewage disposal would be by
         septic tanks/leachfields, or by a disposal plant.

         Skier Demand: Two ski areas are
         now operating within the primary market area. They
         include Mt. Ashland Ski Area, Mt. Shasta Ski Park.

         The present SAOT usage is 3,654. These areas are
         looking to expand to 8,894 SAOT.
         Social: The trend of slow growth in Siskiyou County and
         accelerated growth in Redding is expected to continue.
         By the year 2010 the number of households in Siskiyou
         County is expected to increase at an annual rate of 0.7
         percent for a total of 20,500. The Redding census for
         1990 is just over 60,000. The area has been
         experiencing a faster growth than anyone predicted.

         Transportation: Approximately 7 1/2 miles of road would
         be reconstructed to connect the base lodge/parking area
         to County Road 6P01. The U.S. Forest Service, Blue
         Canyon Road 44N21 and 43N09 would be the main access.

         Land Ownership: There is a land exchange
         being considered on this project.

         Comparison: This analysis area would not effect
         Federally listed Threatened or Endangered species or
         Forest Service sensitive species. The mature forest
         component of habitat diversity would be decreased.

         (1) Other ski areas
             The ski developments on Mount Shasta has southerly
             exposures. Mount Ashland and proposed Alder Creek
             Divide have northern exposures.
             Mount Ashland needs 36/48" snow base to open for a
             fair skiing experience. Alder Creek Divide can
             start operations on an 18" snow base. Access to
             Alder Creek Divide is better than most of the
             areas proposed and existing.

             Alder Creek Divide has better diversified terrain
             in comparison to the other areas, therefore the
             skier would have a better experience.


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