Feasibility Analysis

1 * 1. Reasons (Rationale) * 2. Options Considered * 3. Expected Benefits * 4. Costs * 5. Timescales * 6. Discussion of Options * 7. Investment Comparison * 8. Board Consideration and Recommendation

2 ICEC income has been steadily decreasing while the maintenance expenses have stayed at the same level resulting in negative cash flow Most all the energy and money is spent in taking care of the facility that is not used most of the time and increasingly expensive to maintain. There is not much demand from students who were the primary beneficiaries and used the building on a regular basis in the past, needs of the students have changed due to advent of social media Many Indian Group Organizations have formed due to several Indians moving from India and other US Cities to Gainesville Use of the building to Indian Group organizations and outside associations has not worked due to the lack of parking, Costs, Access and building infrastructure issues

3 Fund raising campaign similar to the one in the 90’s to construct the building.- This option requires a leadership which is unfortunately lacking today and none of the current Board is prepared to carry the banner. Increase revenue by renting current building more frequently and outsourcing with facility management. – Cost Vs Revenue calculations did not work out as the Usage of Building does not exist today Approached builders to build a large parking facility in existing premises – Land acquisition Costs too high at the current location, Funding not available and not enough space to expand parking

4 Sell the building and use the proceeds to meet our objectives without the hassle of managing a large facility.- This idea has looked very attractive in view of the rising property value in the vicinity of UF and Shands along the 13 th Street corridor Use money to build another facility A) Look for parcel in urban core with an existing building. Site needs to be visible similar to the current location B) Ensure enough acreage to be used for the best use of the property (IndiaFest, Gujarati Samaj, Bengali, CME) C) Simultaneously look for property which meets B) the needs of all of the Community-Similar to Kanapaha school, Santa Fe Gymnasium which is being widely used

5 List the benefits and, if possible, how they will be measured and compared with the current situation. Current Location Proposed Ideal Location Proposed Option 1 Proposed Option 2 Location Access to Students BestGainesville Urban core Location Access to Community BestGainesville Urban core ICEC Building21,630 Sq Ft25000 sq. feet??No Building Garage/Storage520 Sq FtStorage-1000 sq.ft ??No Building Single Family Residence 1,783 Sq FtCaretaker Facility ??No Building Land 2.6 Acre7 to 10 acres?? Parking75 Cars500 cars?? Capacity - Hall ??No Building

6 List the benefits and, if possible, how they will be measured and compared with the current situation. Current Location Proposed Ideal Location Proposed Location 1 Proposed Location 2 Sound System & Acoustics Poor?? Rental Income10K 50K?? Membership / Donations 6.5K25K?? India fest12K25k15k12k As is Value4.5 MM( Net 4 MM) 1 MM.75 MM0.5MM Maintenance/In surance/taxes 40 K50k20k00

7 Summarize the costs from the Project Resource Plan. Estimate operational running costs. Current Location Proposed ideal Location Proposed Location 1 Proposed Location 2 Realtor Cost300K for sale100K75k50k Yearly Maintenance ?? Roof & AC unit Replacement Required in 2015 – 100K 25000?? Facility Management Run by Volunteers ($0) 25000??00 Sale priceN/A4.5 MM Net working capital 4.0 MM3.25 MM3.5 MM

8 Summarise any important timescale factors or dependencies. TaskQ4- 14 Q1- 15 Q2- 15 Q3- 15 Q4- 15 Q1- 16 Q2- 16 Q3- 16 Q4- 16 Q1- 17 Q2- 17 Existing Building Sale Acquiring another location Construct Building at new location

9 Plan of selling has to be concurrent with looking for another property Needs of the Community (Cultural), Students (Cultural and Education) and the Founding Members (Cultural, Education, Foundation) Vision needs to be balanced Use the sale of the proceeds to serve foundation ($1 million) and student support should be a factor in consideration as the current Board may need some additional funds in future Work with $3 MM to look for land with building at $1.0 MM and the remaining to fund maintenance etc.

10 Option 1 Use the proceeds of the sale to buy an existing Church designated land Use with an existing building. Pros are that you can use the building to do some events and can add on to the Building as the needs of the community grows. Cons is that there will be existing problems with the building that will add to the maintenance costs. Option 2 Buy raw land and use the proceeds to build a new building. Pro is that overall maintenance costs of the building would be low, Con is the initial costs would be high Both Options will need to evaluated once we have actual real world options in terms of Net Present Value (NPV) or Return on Investment (RoI)

11 Engage current realtor to look for properties that meet Options 1 and 2 Work on analyzing the current buildings true costs and explore construction costs associated with new building Explore market rents costs associated with renting buildings Explore the possibility of expanding the current building to enhance the parking Research the needs of the Community beyond the current usage-Look at future usage (Graduation Parties, Youth Group Activities) Research the needs of the Students-Computer room, SAT, Media Room etc. Research the needs of Other Organizations-Several Organizations use Church Facilities in order to meet their needs