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I. Services Provided

Advanced Arenas is a diversified ice facility management company. The Company either owns, operates or has working relationships with entities that cover all aspects of ice rink development, programming or operation. With its eight operating divisions, and three sister companies, Advanced Arenas is the nations largest and most comprehensive ice facility management entity.

The current operating companies and divisions of KL2 Holdings, Advanced Arenas Inc.’s parent company are:

ADVANCED ARENAS CONSULTING GROUP (AACG)

AACG is a comprehensive program designed to develop an ice facility. Our consulting package offers professional development services addressing every aspect of rink development. It is our experience that the ability to take the idea of developing an ice facility from the concept stage to the developmental stage is a complicated process. AACG was created to provide two key services:

  1. To allow a prospective developer the opportunity to examine and review actual developmental costs, processes, and realistic potential revenues and expenses of a facility to determine the viability of the project and the desire of the development group to pursue it; and

  2. To provide experienced professional advisory services to facility developers in each phase of the project which will bring the project from ground zero to opening day.

The consulting package is offered in two levels of services.

Level One - Feasibility

This level is a feasibility study of the proposed development. It allows prospective rink ownership the opportunity to review and analyze the proposed ice facility. The standard scope of the package includes the following:

  • Summary Analysis

  • Detailed Explanation of Entire Process

  • Consulting Phase

  • Construction Phase

  • Finishing Phase

  • Operational Phase

  • Detailed Breakdown of Responsibilities of Parties

  • Breakdown Phases with Time Schedules

  • Competition Review

  • Detailed Demographics of Market Area

  • Comparative Utilization Hockey/Figure Skating Demographics

  • Expanded Sources of Income

  • Preparation of Sample Construction Costs Versus Building Delivered

  • Sample Schedules

  • Income Categories With Associated Revenues Based On Selected Sample Schedule

  • Operating Expenses Based on Sample Schedule And Historicals

  • Financial Summary

  • Cash Flow Modules Based On Five Levels of Financing at Three Different Financing Rates

  • Model Assumptions

  • Program Growth Strategies

  • Suggested Ice time Schedules

  • Suggested Employee Work Schedules

  • Pro-Forma Based On Above Schedules

  • High Projections – Low Projections

  • Detailed Employee Breakdown By Position

  • Salary Breakdown

  • Escorted Visit (s) of Chicago Rinks with Detailed meetings and Discussions on Layouts

  • Site Visit (s)

  • Preliminary Site Review with Conceptual Location of Structure

If the location is suitable for a junior team we also offer an expanded Level One feasibility with a Junior Team Study which would include:

  • Detailed Demographic Study Comparing Target City To Existing USHL and NAJL Team Sites

  • Analysis of Cost Structure Related To Building Development

  • Analyze Financial Incentives Potential In Junior Team Development

  • Revise Programming Plan To Include Junior Team

  • Revise Scheduling Plan To Include Junior Team

  • Revise Pro-Formas With Junior Team Inclusion

  • Analyze Competing Structure For Junior Team Inclusion

  • Engage In Preliminary Meeting With City Officials Regarding Support For Junior Team

  • Compare Existing Minor League Programs to Potential In Hockey

  • Analyze Sponsorship Opportunities

Level Two – Consulting

This is a comprehensive service that takes the idea from concept stage to operation stage. Depending on the desires of the development group we structure the process to fit with the needs of the project. We can deliver a turn-key operation to ownership or solely advise ownership in every aspect of the project. Generally, our experience dictates that facility development is best done as partners in the development stage, working closely on each aspect and drawing from the overall strengths of everyone involved. The comprehensive consulting plan will include the following:

  1. Site selection and analysis.

  2. Architect interview and selection.

  3. Builder interview and selection.

  4. Architectural floor plan layout, planning and organizational structure of the business, including staffing requirements, job descriptions and minimum qualifications needed.

  5. Conduct weekly meetings with architect, builder, ownership for status review and budget maintenance.

  6. Preparation of an operating plan for the business – relating to matters such as hours of operations, allocation of time for use of ice surface (s) between public and private uses, services to be offered by public and private uses, services to be offered by the business and rates to be charged

  7. Preparation of an employee manual for operation purposes.

  8. Formulation of operating policies and procedures.

  9. Preparation of working budgets.

  10. Design and preparation of contract forms for skating users in conjunction with selected legal counsel.

  11. Assist in the procurement and supervision of installation of specialty items regarding rink operation.

  12. Provide volume based discounts to ownership on the purchase of such items through the buying power of the company.

  13. Assist in the procurement and supervision of installation furniture, fixtures, accessories, etc.

  14. Assist in the installation of front-end POS systems through our exclusive provider of systems that are specifically designed for rink operation and tested for suitability at our other locations.

  15. Integrate the front-end system with our back-end accounting packages under the supervision of our facility accountant and/or the ownership’s accountant if not the same.

  16. Hire ADMAR Corporation for sponsorship sales and installation at the facility.

  17. Establish vending contracts as defined by operating plan.

  18. Assist in preparation of brochures and other printed promotional materials.

  19. Assist in the preparation and execution of a plan for opening and operating the facility.

The overall consulting service offered by Advanced Arenas is the only comprehensive program in existence designed specifically for the ice industry to offer full-service assistance to ownership/developers in every aspect of ice facility development. Ice developments are very expensive relative to the revenue potential, and the future success of the project depends significantly on a very conservative approach to development costs throughout the process and the ability to implement plans that will lead to maximization of profit potential. Quality professional consulting in this aspect of the development is the absolute best investment to protect the much larger amounts of capital at stake. And, through cost savings in both procurement of specific ice related products and through the streamlining and management of the entire development process, the consulting costs are often recouped early in the consulting stage.

For more information please contact Leon Lekai at llekai@advancedarenas.com or 630-521-1111.
 

   
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