HomeMy Public PortalAbout10-27-1998LRA_sp
' ,,,- ,4 d
t~~`
~ °~~~~~~
LYNWOOD REDEVELOPMENT AGENCY
11330 BULLIS ROAD LYNWOOD, CALIFORNIA 90262-3845
Armando Rea, cHAIRMAN
Arturo .Reyes, VICE CHAIRMAN
Louis Byrd, MEMBER
Paut Richards, MEMBER
RlCardO SanCheZ, MEMBER
AGENDA
LYNWOOD REDEVELOPMENT AGENCY
OCTOBER 27, 1998
SPECIAL MEETING
9:00 A.M.
LYNWOOD CITY HALL, 11330 BULLIS ROAD
ARMANDO REA
CHAIRMAN
ARTURO REYES
VICE CHAIRMAN
PAUL RICHARDS
MEMBER
INTERIM EXECUTIVE DIRECTOR
RALPH DAVIS
LOUIS BYRD
MEMBER
(310) 603-0220
_ ~ P~z~
RECEIVED
CITY OF LYNWOOU
CITY CLERKS OFrICE
OCi 2 5 153
AM P>t~
7~8~91~~u1~t1i2i314~546
~~. ~~~ ~
__ ~ ,
~~
RICARDO SANCHEZ
MEMBER
AGENCY COUNSEL
SHAN K. THEVER
OPENING CEREMONIES:
A. Call Meeting to Order.
B. Roll. Call (BYRD-REYES-RICHARDS-SANCHEZ-REAj
C. Certification of Agenda Posting by Secretary.
PUBLIC ORAL COMMUNICATION
PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items Only)
1. REVIEW OF THE DEVELOPMENT CONCEPT A PROPOSAL TO ESTABLISH A
RETAIL OUTLET AT 3840 MARTIN LUTHER KING JR. BLVD.
i
,~.
1.
• i
Comments:
To have the Agency review the development concept of a proposal submitted
by Sassony Properties, Inc. (the "Developer") to establish a General
Merchandise retail outlet at 3840 Martin Luther King Jr. Boulevard.
Recommendation:
Staff respectfully requests that after consideration the Agency approve the
development concept.
2. A REQUEST BY BEST PACKAGING FOR THE REDEVELOPMENT AGENCY TO
PROVIDE FUNDS FOR RELOCATION AND START UP OPERATING COSTS.
Comments:
A request by Best Packaging for $100,000 from the Redevelopment Agency to
.provide relocation and start up costs for a light manufacturing business to
locate I the ERC Business Park on Industry Way.
Recommendation:
Staff respectfully requests that after consideration the Agency direct staff to
further analyze the proposal and bring it back to the Agency for further
consideration.
ADJOURNMENT
Motion to adjourn to a Regular Meeting of the Lynwood Redevelopment Agency to be
held November 3, 1998 at 6:00 p.m. in the Council chambers of City Hall, 11330 Bullis
Road, Lynwood, California.
2
.DATE: .OCTOBER 27, 1998
TO: -HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY
From: Ralph Davis, Interim Executive Director. ~~
By: Gary Chicots, .Director ~'.- ,~
Community Development. i`
Subject: REVIEW OF THE .DEVELOPMENT CONCEPT FOR A
PROPOSAL TO ESTABLISH A RETAIL OUTLET AT 3840
MARTIN LUTHER KING JR. BLVD.
Proposal:
To have the Agency review the development concept of a proposal submitted by
Sassony Properties, Inc. (the "Developer") to establish a General Merchandise
retail outlet at 3840 Martin Luther King Jr., Boulevard.
facts:
1. On Friday, October 9, 1998,. Code Enforcement notified. the applicant that a
business license was required to operate a business and that they could not
operate until the business license had been. approved. On Tuesday,
October 13, 1998, staff explained the process of Conceptual Review by the
Redevelopment Agency., the Site Plan Review process, and alerted them to
the fact that the building had many deficiencies that would have to be
addressed with the Building Department prior to opening the business.
2. On October 19, 1998 the applicant submitted a site plan for their proposed
business.
3. The .property is located at the corner of Martin, Luther King, Jr. Blvd. and
Ernestine. Avenue, adjacent to City hall. The property is developed with a
building, approximately 30,000 square .feet, that was .previously used as a
bowling alley.
4. The applicant proposes to use the building as a merchandise outlet store to
sell .merchandise acquired from businesses that have gone out of business.
They are proposing to clean up the parking and landscape areal and
upgrade the building to meet the building and fire standards.
5. The property is currently zone C-2 and has a General Plan Designation of
Commercial. Retail stores are an allowable use in this zone. Should the
Agency approve the development concept, the applicant would then apply
for the .appropriate discretionary permits which will includes Site Plan
Review.
Discussion:
The subject property has been vacant for many years with a long history of code
enforcement issues.. The applicant currently operates similar businesses in the
Los Angeles area. As previously stated the applicant proposes to operate a
merchandise outlet store where they will sell. merchandise that has been
acquired from other stores that have gone out of business. The applicant
proposes to clean up the parking and landscape areas and upgrade the building
so .that it meets Building and Fire Codes. Should the Agenc:~ aTprnya +ho
r
H:\word\redevelop\I moral es\sasc ncpt. stf
AGENDA I TE?~d
- ,, •.
concept the applicant will then apply for the Site Plan Review. During. this
process, staff will address the conditions of the building, landscaping, signage,
.parking., and all other development standards relevant to this project.
Recommendation: .
Staff respectfully requests that after consideration the Agency approve the
development concept subject to the Site Plan Review Process.
H:\word\redevelop\I morales\sascncpt.stf
,~.Y~'10~~\
-Tlf A ~!I
M ~° .~ fh U
~~
OpME~
LYNWOOD REDEVELO MENT AGENCY
11330 BULLIS ROAD
Armando Rea, CHAIRMAN
Arturo Reyes, VICE CHAIRMAN
Louis Byrd, MEMBER
Paul Richards, MEMBER
Ricardo Sanchez, MEMBER
V1A HAND DELIVERY
October 14, 1998
Mr. Eli Sasson, President
Sassony Properties, tnc.
Mike K. Malek, General Manager
626 S. Spring Street
Los Angeles,. Ca. 90014
LYNWOOD, CALIFORNIA 90262.3845
Subject: 3840 MARTIN LUTHER KING JR., BOULEVARD
Dear Sirs.:
Please be advised that you are currently occupying the above mentioned.
address (the "Property") without the required approvals from both the City of
Lynwood (the "City") and the Lynwood Redevelopment Agency (the "Agency")
(310) 603.0220
On Friday, October 9, 1998, you were informed by the Code Enforcement
Division that a business license was required from the City in order to operate a
business and that you could not operate until such time that a license and any
other approvals were issued. On Sunday, October 11, 1998, Code Enforcement
issued you a Correction Notice to stop all work. You were also advised at this
time that if you continued to occupy the building and operate your business that
you would be subject to a citation for operating without a business license.
On Monday, October 12, 1998, you spoke with Mr. Louis Morales, Manager
Planning and .Redevelopment who explained to you that the Property was
located- within the Redevelopment Project Area which required review and
approval from the Agency prior to applying for a business license. Mr. Morales
also informed that you could not occupy the building, store merchandise, o~
i
,~
~~ SA~'ONY.PROPERTI~, INC.
Main ice: s2o ARKELL DRIVE
BEVERLY HILLS, CALIFORNIA 90270
TELEPHONE: (800) 909-8613 FACSIMILE: (213) 272-0678
SASSONY ARCADE
VERMONT LAUNDRYMAT
BROADWAY FACTORY OUTLET, INC.
VALUE MERCHANDISE 4 LESS, INC.
SASSON GALLERIA OUTLET
MERCHANDISE LIQUIDATORS, U.S.A.
WESTSIDE FALLERIA FACTORY OUTLET, INC.
October 15, 1998
Lynwood Redevelopment Agency
Mr. Gary Chicots, Director
Community Development
11330 Bullis Road
Lynwood, California 90262-3845
Subiect: 3840 Martin Luther King Jr. Boulevard
Dear Sir:
SASSONY PROPERTIES. WC.
~ Property Management, Inc.
350354 South Broadway
356364 South Broadwy
722-728 South Brwd~vay
217 West 4°1 Street
6401 Haven Avenue
626 South Spring Street
BSOS East Rosecrans Avenue
6001 Satrth Vemwnt Avenue
8300 soot), Vemrorrt Avenue
8400 South Vermont Avenue
Please find out attached business license application with Landlord's affidavit statement to
obtain business license to conduct retail business of general merchandise at 3840 Martin
Luther King Jr. Boulevard. Presently, We operate 5 retail stores and other businesses in Los
Angeles.
On Thursday, October 8, 1998, we signed a long term lease with landlord and asked landlord if
there is any violation or need other approval from related city agency before to occupy the said
premise. I have been advised that all .I have to do is to fill out business license application. On
Friday, October 9,1998, I instructed my General Manager to obtain. a business license from City
of Lynwood of Tax and License Agency. However, my General Manager notified me that Office
was closed that day.
Prior to signing the lease agreement with landlord, we bought huge amount expensive
merchandise value millions of dollars. Time is essence. Based on landlord' statement and
experience of myself as landlord, I didn't experience that storing merchandise on commercial
property is any of violation of regulation.
. On ti~londay ,October 12, 19• I personally called City business li~se office. t told them that
~• I leased a big store in you city. I asked them that what document I have to provide to obtain
business license. I have been told that I fiave to fill out application with $30.00 application fee. I
also asked if there is any other document required.l have been told that landlord need to fill out
affidavit statement and ,must be notarized which was very strange to me. During my signature
for over hundred of lease agreement with tenants who never asked landlord's affidavit for
occupation. Based on the above fact and experiences in real estate business, I didn't see any
significant violation to bring and store merchandise.
On Saturday, 10, 1998, during unloading merchandise, we did display merchandise in parking
lot to conduct business without knowledge that it is not allowed to do so. Then around 9:30 am
on Sunday ,October 11, 1998, someone from city told us not to conduct any parking lot sales .
without permit and we complied immediately.
We believed that we can bring prosperity and benefit to the city and community. Since we
already have merchandise and we will hire many employees.
The Christmas Season is around the comer now. It is our mutual benefit to be ready sooner.
We appreciate if you sympathizes us with this unique situation to open business ASAP.
All of your cooperation is highly appreciated.
Sincerely. yours
l
Eli Sesson-president
J
Y
:~ i •
DATE: OCTOBER 27, 1998
TO: HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY
FROM: Ralph Davis, Interim Executive Director 2~
BY: Gary Chicots, Director /
Community Development ,
SUBJECT: A REQUEST BY BEST PACKAGING FOR THE
REDEVELOPMENT AGENCY TO PROVIDE FUNDS FOR
RELOCATION AND START UP OPERATING COSTS..
PROPOSAL:
A .request by Best Packaging for $100,000 from the Redevelopment Agency to
provide relocation and start up costs for a light manufacturing business to locate
inahe ERC Business Park on Industry Way.
FACTS:
1. On October 15, 1998 staff received a proposal from Best Packaging
requesting. a $100.,000 grant from the Agency. Staff has not had adequate
time to thoroughly analyze the request.
2. The proposed location is on Industry way adjacent to Alameda Street in the
ERC. Business Park. The .proposed :location is zoned M (Manufacturing) and
has a general plan designation of Industrial. The proposed use is allowable
in this zone.
' 3. The business is a -light industrial process whereby they receive promotional
merchandise in bulk shipments. The crates are opened and- each individual
piece is labeled and repackaged individually and then crated for distribution.
On occasion a minor modification is made to the item prior to packaging.
DISCUSSION;
Mr. Adamson has approached staff with a request for a grant of $100,000 to be
use for relocation and start up costs on a new business entity. They would like
to locate in the ERC Business park, an industrial business complex south of the
I-105 freeway in the Alameda Corridor. The proponent is proposing to operate a
light industrial business whereby merchandise is .packaged for promotional give-
s-ways such as is done in the fast food industry. The merchandise arrives in
bulk shipments, the crates are opened and the items are labeled and .packaged
individually for distribution by the promoter. On occasion minor changes are
made to .the merchandise prior to individual packaging. The .process is labor
intensive and produces little, if any, sales tax or tax increment. .The proposal
indicates 50 new jobs will be created..
Due to the timing of this meeting in relationship to the .receipt of the proposal,
staff has not completed an analysis of the request. Should the Agency be
interested in pursuing this proposal; direct staff to complete a thorough analysis
ofthis proposal and bring it back to the Agency for further consideration.
RECOMMENDATION:
Staff respectfully requests that after consideration the Agency direct staff to
further analyze the proposal and bring it back to the Agency for fu
consideration.
AGENDA ITEM
H:\word\redevel op\swol flbestcnpt.doc
`~
"'.DATE
~ October 15, 1998
ENTITY Best Packaging
ERC Business Park (proposed)
Lynwood, CA
ACTION '
REQUESTED: Grant in the amount of $100,000 to provide funds for relocation to
the City of Lynwood and for working capital to cover operating
expenses during relocation period.
PURPOSE Relocation to ERC Business Park in the City of Lynwood is
expected to bring an aggregate of 50 new jobs to the,city of
Lynwood.
USE OF PROCEEDS:.
Working Capital 100,000
SOURCES OF
REPAYMENT: In lieu of repayment, residents of the City of Lynwood will be given
employment training and hiring preference based upon their
residency within the City.
BENEFITS TO THE
CITY OF LYNWOOD Job training. and preference in hiring to City residents
Increase in disposable income of newly employed City residents
. Increase in City's tax increment income due to increased local
spending
Enhancement of City's image
COLLATERAL: Pledge of fixed equipment during first two years of business
operation
GRANT AGREEMENT: Mutually acceptable Grant Agreement to be executed by and
between. Company and City outlining the grant terms and
conditions. Company will agree to conform to required City
ordinances, will maintain adequate hazard and workmen's
compensation insurance and will conform to State and Federal
employment practices
DOCUMENTATION: Company to complete all necessary documents to conform to
City's required business licensing requirement
MANAGEMENT: Ken Mukogawa, V. P. and Operations Manager, will be the 40%
owner and will be responsible for all aspects of production .and
sales.
He will be assisted by an experienced Plant Manager.
Reg Adamson will be the 60% owner and wilt be responsible for
all aspects of the day to day managemerrt of the entity. Reg
Adamson brings over 20 years of financial and management
experience to the firm.
BUSINESS
AND HISTORY
AND.MANAGEMENT
EVALUATION: Best Packaging will be a new Califomia Corporation. The Director
of Operations, Ken Mukogawa has over 25 years of assembly and
packaging experience within the Southern Califomia area. He has
business contacts with local manufacturers and importers from
which he has developed a sustainable book of business. His
ability to produce sales in the $60,000 range is evidenced by
existing sales recorcls. His availability to start this new business
operation is the result of the dissolution of the partnership which
currently employs him. As referenced in the attached resume, he
has worked for several .entities. This most recent change,.
provides Mr. Mukogawa with the unique opportunity to utilize his
significant industry knowledge and long-term client base in the
operation of this business. The management and financial.
expertise of the CEO, Reg Adamson completes the management
team and provides strength not only in the area of sales and
production, but also the financial aspects of the operation.
INDUSTRY ANALYSIS: Packaging and assembly operations do not require significant
technical equipment to operate efficiently and, therefore, are not
determined to be directly impacted by technological obsolescence
factors. This firm will primarily serve manufacturers and importers
of retail merchandise and, therefore, is considered seasonal and is
directly impacted by the overall strength and health of the
economy. Factors such as significant interest .rate increases,
extended periods of upward inflationary pressure would have a
negative impact on this business operation if sustained. Due to
the relatively non-technical operational aspects of packaging and
assembly, the potential ease of staff training improves the
availability of employable individuals.
r
• l=1NANCiAL REVIEW: ~roforma Income Statement and Cash ~ Summary are
- provided for the first year of operation.. Although income is
positive, cash flow is impacted by the delay in the collection of
receivables and the expenses related to starting this operation.
The requirement for Lease and Utility Deposfts, professional
• retainers and. the probability of cash and carry supply terms have
. been factored into the accompanying projections. This is due
primarily to the principal's prior status as an employee. The
modest growth assumption reflect sales reach a high of only
$70,000 which is only $10,000 per month above the current
$60,000 in monthly sales which Ken is currently producing.
• Historical financial statements are not available due to the start-up
nature of this entity. However, expenses have been estimated
based upon reliable industry guidelines.
A CPA will be engaged to pertorm annual reviews and quarterly
compiled financial statements while sales are below $1,000,000.
Should sales exceed $1,000,000 with a diversified Gient base or,
if grantor so requests, annual audits will be provided.
SUMMARY`.
This grant wilt provide this enterprise with the necessary funds to
commence operation within the City of Lyrnvood. It is anticipated that
the employment opportunities created by such an entity wilt benefit a
population base which is generally identified as low-income, minority
individuals. The addition. of new jobs also serves as a catalyst to the
generation of greater tax increment dollars to the city and the overall
enhancement of the City's image. This business operation will be
located along the Alameda Corridor and reflects the City of Lynwood's
stated commitment to "EtAnomic Progress Through Development."
Although start-up entities generally have significant risk associated with
their initial entry into business, this risk is mitigated by the principal's
related business experience and ongoing client relationships and the
engagement of an experienced fiscal consultant.
OPERATING RESULTS i'Proforma):
Actual 1 Yr. to
1431198 1 Yr. to
10x31 X2000 1 Yr. to
10/312001
Sales 3627.500 3760,000 3820000
Gross Profit 232,955 297 615 373,204
O ratin Profd 15,740 68.539 83.724
Net Profd after Tax 9,444. 41,724 50.234
% of Sales
-
Gross Profd 58% 64% 65%
Net Profd after Tax 1.5% 5.5% 6.1 %
Sales: Sales reflect the seasonal downturn in sales during the summer
months of June and July, where. consumer consumption is down. Sales
growth for years two and three has been modestly projected and is
based upon an average monthly sales of $65,000 and $70,000 for FY~
10/2000 and 10/2001, respectively.
Expenses: -Expenses relating to the cost of sales increase directly as
sales increase. Assumptions utilized for cost of sales. include: Direct ~
Labor at 48% of sales, Lease Expense at 8% increase per annum,
• Su es at 2% of sales and Utilities with 1096 ~' ease .per annum.
° , • ~ Fix~xpenses reflect the anticipated Legal art~'Accournin Ex nse
• and the fiscal management consultant. Economies of scale area ident
in years 2 and 3 as the increase in sales is greater than the increase in
.related direct and indirect costs. Assumptions are discussed in this
section.
.. ~ ..~
H
111
~ i`
z°a ~
<~ a
Y g p y
ava3
41 Q LL
Ill ~ _
m LL U
a
~I
` 10 1 I 11A ~l
~ i-?ice ! ( ~ I I I 010
1 1010 1
5! S ~O
I Q ~ f IN I I ID
I ' I I I - I I ~I I INI i
1
e
I
+
Iv
I
I
IIf
OI
m
N IA
~l
Pf
l
I QQ
17lp
lm g
A
'^ Qg
bI
O C
iN
I
~
~
~
I~
I I ,
CI
I ~
I O
~
I
I
I ~
IA
IN
~I V
A
m I
Ql i0
I Al l7
; im
~
I
~
~
~
I
~
Q
~
~
~ l
ol
+
I
,
~
I
~
~
~
I~I
Q
l
I i~~~
~ .» I I N N I I I I» I ~ I I I I
~I
I
O
0
N N ,»,
l S I I0 0. t0 OO OO IO O S t'
~
I N
,r,
ODI
I
I$ pp N
I O O O
~
m
"I I I
~ I
I
~ l7 A
O
IA CD p
8-Ip
Q
r A
A
CV
~
~ ~
~ 8
~
°
s
~
I~
Q
~
A
~I
I~
I 10I
~
A tn
e-
Q N
~I
N N
ICI ~
I
N
~ r
I
I~
~
- I
A
I~
-
N
Q
-
Q ~Nf ~I t0
I
I I N i I
I~
I 1
I
~ P
f
~ .
-
I ::1
I
p N I N I » INi
.
.
~;
101 I gI
I I ~ $
N) 8j8
N
8 l`
'1,
O $18
O 8 8
119 O 8 $
O $
O gI N I Iml
i m I 8I 1
Cl 8 , C `] m N
N
'I
I
I
Ii
~IQ
~
t
V
0 _
8
1ff If)I
A C
m ~
~
~
C
N AI
°I EO
lfpf N
I
I A
I
~f
p
Q
I I ~?
l I
~I N
O
i
I _N N ~I 1 O
1~ 1 ~ ^ p
CI Q
1~
I E
MI
I
I I
~
N
I
~
I
I
I
,
i
I ~~ 1~
Q
~"+
~
COI
' pI . i
CD ' i I I I NI N N I I N
NI
~I
SI
p` iSZ I AjS
q
I
~ SS
p
I~
I ~
nl
I $SS8
I
i o $ S8
O 8
`mi
° 'N
tol
I
m
I I
I
IQ
~
!
I
A
l
~
I
i .
1
i r
c
mIO1C
I
I
I ~
Oll7
I
N
!
I
I I i
~ g
Q tffllp r 8
Ilf r _ g
-
N v
I
~I
I
I
(
N
I I
1
I I
~ 25
l
I u _
ilo Iml v
{~
s
QI It
N j ~ A I
I N ~
I I h I I NIoI (
I OI <
,,,,; I I I I I I »~ I I I f I^ I I ~ I I I
I I I I I~ ' Nh I I~ m
~ I !N
' N
~I I~I I I
Q (c710 S
I
I I~
I
I I 7I I I 8I$I8i$ O O $I $IfDI ~I I ~ 1 I I I
I I ! I O N~O i
~ O
I ~
O u
Z~ ~~!I ~ I N
^
O
I IOI ~ tO
I NI 10
~
I f
I C CIA O
YPI'f 11A If
I C Cow C
! IQ
i
VI~ N O
It
A ICOI
N C
N I
OI
I `
`
I`
1
~
I I I
Q
~ AIN
N~1
~ N N
I
D1 Cpl 1'M
~ I1'fi I I IQlIl01
~ I I IC DI
I I
I ~
O
I j I .
v
O -
N
I N
~I
IC (~~
I I
I ~ I I I I i I I I I I ~ NIQ
' I i?-R
I INi I I I N I . I NI j I I ( I I I I I I IN IN
Q I I~ Q
T I I I I N
t
j
~I ; I I 1 I I I I
IIII
!
I
I I I l i i i
I
I
~
II
I (I i t
1-
I
1
I .
i .! I
I _
I
I
I I .
I 1
1 1».
'
,,
i
ll~~ i I
I
ij;i L
fl i
ii lil!I
iif I
l I ' i,NI I f ll l!» i!NI
I
l
j!IIIII
IImiIII
~I
!
I
~ m
I ~Iilllll
~!'IIIfI~I
;- x mp
I I
l 1 1 I I I
ll
II
I i
!II-1
I'iI''I
~
I ll
1!I
lI l
I
i
I
IA ii
!I!
I I I
i
I j
l
I l
l~
~ ll
il
I! l
i~
j
I I
!~mi
~yI
III
I I
i I Al. I i I
~
l~ m
1
~ ~
I
l l i `
l
I I I
I
l i I
1 I.C
!
I
1
I 1 1
~ 1 1 (~ I I I ( I ~ J I C
I I I IJI
I j
I I I IgI IcI I I
i I I Ihl I~ m1 I I
m eD » N
~ C
m
m
I I cl I EI I I I~j
j IQI I ~ 1 nI (~ ~
I I
I I ~
E
! m
I I~ I ~
( I I ~ I ~
l~l I
;I
-
I -~
73
aril v I Irl
1 IUj
l 151 I
I
~ I
~
I c
~ •~
z ~ l m
y m
W
L I
~It
m V vi 3
I'oI
INj
i ! ICI I o ~I I !
I I I
j
~ ~ I I ~! I m! I I =I ~ ~
AI > m
~ I mI I ! ' I m !m
c x
=i~l I ~ s
~ l E- ~I
I ~i
, ~ <
.,;.. u
i
"
slW
~LL 1
~~ I I ~~
~I m
~
J W^
I I
ml mI
I of I ml
na
I
I ' ~I
I ~
U
f x ~
a u
m
I I AI 1 0l clw cl `~' I
`
I m E' ~ ml~l -~ c
I c
oI
a
I m
l~ l
m i~
I I
' ml C91 0
l ml i
- mI ml
1 ~ I
(~
I $ c
~'
~ I
uo o
c, I
I-.tA
, `
U
o
I c c
ml m
E E ,
m
l~l...
Q
d
I~
IC ' r a'
»I
I 1 ml !°
~ ~
ail
I ~I
r ~; o' m.~~-
.
I I
i Ip
13I ~
Imo ml c m o
l I cl ISI
m ~ ~I~' d
I
I l
~ a
lo~= 1 ,a
I
lam ~
;m l ~rl
.O.~ u
olo i~l
l~lo
I
q a,
W ~
fo C?.
ld-o l IUI '
,m;
N
c,~
~Iy !
c9
al ~I~!~
w l~l~ I
i31 ~z lc~lal Il nlc~ .
I~l~! I ~l ~
wlw° ~~I~- Ir-I~' I
! Izl t~
0
a
- BEST PACKAGING
•~ ~ OPENING BALANCE SHEET
ASSETS
Cash $ 15;000.00
Supplies 5,000.00
Leasehold Improvements 5 000.00
Equipment 10,000.00
Deposits 10,000.00
Formation 10,000.00
Total Assets $ 55,000.00
LIABILITIES
Accounts Payable $ 5,000.00
SHAREHOLDER'S EQUITY $ 50,000.00
TOTAL LIABILITIES AND
SHAREHOLDERS EQUITY $ 55,000.00
F-
z
W
~ A
Z a ~
H
(7 ~ H
Q W ~
N
a ~ a p
W a LL
~ _
LO Q a
O V
a
~
R I. 1 8 , I ~
~g I i ~
~
A O
O
~ O I~
C l ppm
N 1+1 10
~ H
N S
p
N O H
p 8
O~ S
88
O Op
N
~ S
8
f O
00
10 O
p0
O n
~
O ~
O
~ ~
A ~
P
~ g
QQ g
Q
,
I ' I ~ I^
1
Y f ^
O
I N
~
c
Y I ~
I ei
'+`~ n evri
~I a
~ ac ac m~ r~
" ~
n
~
~ n
ge 25
e 2 S
e aio
le N ~
v
I ~ ~ a ~
p ~ N
~
w
~I IBOI I I
I IOI N
I I~I
I
I Q
8~I..!I
1
I (t~pp
I
I I
I O pI
IOI
l SIOI
p
I p
8O
1 p
101
^ p
0 ~D ~ 1lOp
i I O
~ (p~ (
I (~ plm l~ I
l ~ ~
;
~ ~ ~ I'7
1A P m °I m
~-1 1n N Vj 0 e O Q I~ If f
I N {A
i ({DI I NI
~ I I S I I "I N I N I I ^ IY I S IN i~ I
...I
W Q~j
INi I
~I
I I I .,, N N I ~ M ' N
Isi
I I
I ~I
I SI SI° ~I I I s I81 slSl sl8 s ~I N ~I $ g l I ~ I~I N I I ~8
m f
~n, I~I I !
~' {f) I
ol IA
glm
?
I
^~
I
8
IA
1°
In
A 81
tDI
$ o
I~
Q
eYi
O
~o
r~~
c8 ~
pQ
~
r.
f I
I
I
I IO! I ( N <O ~I N
I I I I ^ ~ ~ A O - ~ N N
O
h
I IN ' I I
' I I I P
f
NI i I i
I
I
I ^ ^
NI ~ I
i
I PNf ~I
I <
~ m
~
I I
I
~p . .
N N
I M
S~
(7ISSS f~f S 88 $8 8 H N . aND S
S
S NO Op
ai I~I. I I Ilhi~I SIN
I i -i "'00<
I N
fG I I QQ
O
I ~
lp ( nIS
G~ 8I~
O.~ 8
N Q ~
S
l •
01
h 1 ~
O- ~
~ m
R m N
AIN N O
NA
O
I I (N I(O
~I
I N (~j
l7 I
I N ~ N
~ IG
N I~10
^If~
I O~
I
NI . I I I I I (
QQ~~. ~
Of ' jgil.. I Ia01S~0I0I N
ED
`° I I I
I
g
I
S
-
S S
O
p
IG
N
N M
N
~
S
Q
N I ~
~ I IN
N g I I NI O
O
8 ~ I IS! 8.8I
~. IOi I ! InlOlaOltyi7f
'
i I
'
I I
I~ I
I ~ I
S,
I O ~ S
I I p
8 ~ S t^y p
l ~ 1
N N iS
~7
~f p
Q
° ( ~
~ a~0 N
~ S
N S
O
NI(pl
,
IQI I INi I I
: ~ ,Cf
NI
I ~ N n,
~
^
O
~
n
I
C N
N
HAIN N A
8
:N.
t I
N I I I
M I n l~ v
I ~
_ I N M M
o 88
~~ tOI. ~ f IOItnIOICpI
~
Q
1
t
O p
p
(l0+ll I
I
I p p
B8~IoIO
, p
Op
IS p
S p
(O SO p p
t0 ~ l~ fl 1 ~ S I S 171S IO p
N
9O
I
aDIM
i i I~IO°
IV iNl(01
;w~ I I I I ~
I I~(
ICI I
I I I
I RI0
0
I I p
O
~~ ~ ~ 8
~~ ~ m N
' ?
~ ~ I
~ O O
O
I I
( ~~
~t OIN
NINI
~~~ A
IA
~ DO
I IAA
~ S
I
~. ISI ~ I~IS~SINI.
88 ~V
,~
~I I
C
I
I
I~INI
(Qfl
5~
I i I
I I.
I I I
. IS
8 p
IS O
o v
I A p
~SIO
i
I
S
S
ISIS
_
°8
I pp
{D
~°
N f
°~
~
0 Q
p
I
p 8
O
^ p
O
( ~~pp
C1
I pp
tN0 {O
IN o
V
t~ ~
°
N
I
O
~
.
O
O 25
A
IO
I" p
U
1
I l'
? a
iAl i iNl I I ICI I I I II ^ I I i~ IC I
^ I I I I, j I ~i~ °-IN ° n
f~: I I j
' ~ NI I I I
I ~ I
N ~
~
N
I .
iN I
N
I
~
i$i ~ imISi8 1$I ;ol I I IS IBI$ I$I
$ I$IS .I°
IN I I~ I j8 1 I I~I 81 I 1 I~j ~iBj 18 1 ~
a I~' I IAIoIg
, IIOi I t aDl<OI
L
^ I~I i~l I I I~
I1A1~0
°lr~• QQ
18125
1~-!N
r.tN
I~~g _
,iOl,~~
~
;I I I (~
N i I I I I pQpp
IO
(_
I I 11I~p
I{D ~IN
hINI ~
IA m
I ~
fp,
NI
' !
I
I ~
i.^
I
^ (
I I~ I 1 8
I ~N
^I
S
IMi 'I I I
I
.
~ I i INI I I I I I I IN .
I I i N I I I NI -" I
~ I I.
f i I I
!!I~!iII V
I1 I I
II I I
I~II
iI
I
II
II
i~
Ii
I
l
I~
~
IaI
I
' I ~I I I I~ I
I I
I I
~(
I I
I I~
~
I
I~
~ A
I
~ I
~ m
N
~
ICI
~
I'!~~I~
II
~I
Ali
I
((
I
I
III
1
1
i
~ AI
~,~
I
~
i I I I I~I I
i ICI I cI I
~ I I
ii NI
mI I~
ic
cI . m
~ E
I I I
I Im
I~
I I I
I I ~
I a
a Im
a
I
F
I ~
I c
7 It
w
~
a clm
~
~I
~+ I
3!
It
tLL
IVfi q~
i i ImI ~I
i
y ( I ~I QI I ~ I ~ (~ ~ aI I I I A ,
~ E x m I VI O ~ ~I A (
~ miU °
m
m
a
.~ I I I OBI I~I mI I
~~I ~ I ~;
~~
'
'~Iw I
, I~
~I ICI I ~
, W~ , ~
o I m
~ ml ~ I VI ~
~ ~ TI
,~ ~ I
I I m
_ I m
~
I c FW-
~ m IU
o
I I OI E
o ) ~
~ LII ~
W <
U QI O
<ILL
~ IW
I
~ a~al
m
a
b ~
~ U
m
_
OI
i`oI '
ml Ir. ly y
(-: mI I~IAIaI ,~
F
_I ~ I
o I
I m
`m E
c~ I
S c.w
A m
I~ ml c a
~
clm ,~ ~
l~ m m
m ~
~ _
C7
I
~ o
Ia @ ~
o m
~ p c
~'
Im lr°
~ _
m^
ol~, mn~It3
l? m 1
~C il
I
9'~
~- I a
a
U
~
Iyl i °i I `I ml ~,
UI O~~IrAI
:,. I
~I
t-
~ ~
C1I la
c.
d H Ji
~l~;
sni~
~I~
It`
I
~ IZ ~
IU a
u
I u1 -
c
IUI~
l~
~IW
~ ~
a1 ~
IWI~
o
I- F
oIF,
.. c) _
I m
Z
U
~~
O
a°
~,;
• .:a
Ea~s and Cash Flow: Continued improve in financial
performance is anticipated. Although on a profit and loss basis, profits
are generated in year one, the impact of 45 day accounts receivable
collections, especially during periods of growth, negatively impact the
company's cash position. Year one cash flows are also affected by
capitalized expenditures related to equipment, leaseholds and
organizational expenses. It is, therefore, imperative that the company
maintain an ongoing cash management plan to ensure its ability to self-
fund during the second year and ensuing of years of operation.
Generally, access to credit is impaired for start-up businesses; therefore,
the initial grant and the stated commitment to cash flow management .
are critical to this enterprise.
,:
'ji
v
J
~IC71Z1
~~ I~1
D10 ip I I. I
-i,
~ i
-I I
~
~~
~ LC
I~
i '-~
Ifp
~°~' IC/)
(C
!
~
' tr
'4a
i'
ice
I~~
I~ r
!
Ivi
IcD -
~
~
IN
iD
IO
I3
1
j
I
IC
~
I~
I
I
I
~
(~
I
I
C
_~
~
If/~
~
lr'
N
<D
~
~~
Irt
C7
N_
1
I
I
CA
~
y
1
~~ ~^:! m I
~ I
I t
n
I
I I~
I° .
~
ti`
~~ ~
I a'~ LLX I~
~ ~~ I I°-' I to I `~ .
IN m l~ I °
„
c I
I
~~l~i ~ ~ ~ I~ ~ I ~ ) ~ I I o I 1 -
~~ ~ i Ins I I I I3 I~ I ~ ~ c. a I
~ O I I w ~"
~ N
I
!~(~ ~ Ia~ I ( I D I I ~. ~ ~ ~ o
X i~ i a' I ~~ ~ 3
~ I I~' ~ ~, ~ a
`~ I ~ I
I ~ I
I
~ I C I ~ '~ I s:
~ o ~' I
~.~~ X I I I I <' a ~
I I ~ ~ `°
I ;,
~1 I
I
I I
IC
I I
~ I ~ I i
I
~' I
I
~~ ~ I
i I ~'I I I j I Ii i
I I I I3 1
~i lii l i l ll l' Ii i I (
I~ Iil
' l i ~ ll
Il l
l l
i il
li ~
l I I I I I
1
'~ ~1 I
i~
I
I
'
I
I
I
II
w
I I I
j
I
I
°
~
i
~'~ w,
OjWI_AI 1
O;cO~cOl i -' i i~
cO, w.
01 ~(Jtl
O O
~
Cr
NI
A
i
~I
WI w~
VI
O
~i
Ni I
~IOI
i
~ i
OI
j
i I
I I
I i
co,
AI I ~
CTII .~.
NI ~
NI W
o
~W I ~
_V .
_
a~
-C
O' V I .A I i ~
IOI
~
ODI .
OI
NI
OI
DI ~~
OINI V
~II CTt
I W
O U1 i
N CO
O V
O
I
I
I (r I lD
AiOiOI r
i
~ -' NI.
vi~1O1
I ~
A
. ItD
v! O.
OI IOI tOI
COI
OI OI
O'
OI OI
O'
~I O
OI
OI OI
OI
OI OIOI
OIOI
OjOI U71
Oi
Oi ~ I
( ~ i
I ~ ~
O
W ~
I C
OI
X1
O O
I
0
Oj OI
O'
I C
T~
aD
~
I
~
~
~ OO'
OI ~
~
_
I
O
W OI I
~~I Niii i i l ~ii ii ~ ~ ~ ~
cniG~iODI ~
W C11 ;COI O; I i
V i l l l -I I I I I I I ~
N I I I I
oao~rnl ~
cfl'~~~~ l
~i
i 1
c~n; ~ .I
I
I
~
I'
I ~
I ~.
~ 1 1 I
I I ~ I
I
I
I
I
I
iwI
CI
( CJt ~
~
-HI
V ~
of
I
(
I O
p
OI N
O!VIA~
00 i c0 I ~l I Ull I
N I I I
I I
I I I i I I
i i
I I 1 01
~ °I
O N
O (OJI
A
I OAD
O I I
I OI
O I
1
I -+t 0 Cn O OI
I I 691 I I
I i
I
I
I I
! I
I 1
69
I
I
I
~
I 1
a~~~.;ol
N.--.LAI I_ „ I I I
oi i l t l
I i
I i
I l l
I I ! ~
I I I I
I 1
AI
CI
~) 1 1
~ I I
~ o
of m
w
W'C0J1'ml I
cnlrnlNl ~, ~ I i ~
~i. ~. I I 1
I 1
I I I I
I I I I
I I I I ml
wi NI
~' A p, ~ Dol
1aiCOiA!
~IIGDt(Ai I
NI
COI I I I
I I
I
~
1 I
I ! !
1 I
I I
i
N
~
I
O T
- rn
A
O N
'w
- I W
/OOy I
l O
O
O
I
1 I i ~ V I
~ ,
a o
i m
~ ~~
O z~
o ~
m
~
m ~ ~
..i z
z m G)
~ m
Z
L
J