Business Plan Submission for Acquiring a Surplus Lighthouse

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FOR INTERNAL USE ONLY

The Department of Fisheries and Oceans (DFO) Canada has prepared this guide to help those who wish to acquire a surplus lighthouse under the Heritage Lighthouse Protection Act. Those interested in acquiring a lighthouse must submit a business plan that demonstrates the long-term economic viability of their proposed use and their property management capacity. A good business plan would identify the challenges you might face in establishing a new use for the property, as well as identify any possible solutions.

PART A: GENERAL INFORMATION

PART B: ORGANIZATION

PART C: CONTACT INFORMATION

PART D: CURRENT STATUS

There may be an ongoing need for the Canadian Coast Guard (CCG) to have access in order to maintain an active aid to navigation at some sites. Is the organization willing to enter into an agreement with CCG in the event aid is required?

Yes No

Does the organization currently use this site for any purpose?

Yes No

If yes, please give a detailed explanation

PART E: ORGANIZATION

Please answer the following questions to the best of your ability.

When was the organization formed and for what purpose?

What is the structure of the organization (eg. list of employees and positions, their roles, the board of directors, volunteers - an organizational chart may be included with submission to illustrate the organizational structure.)?

If applicable, please provide the names of lawyers, accountants, building consultant, etc. who assist the rganization.

PART F: PROPOSED USE

Please describe, the organizations goals and objectives for the lighthouse.

Please describe, in detail, how the organizations is going to achieve the goals for the lighthouse outlined above.

PART G: OPERATION & MAINTENANCE

Explain how the organization will ensure the structural and operational maintenance for the light tower and related buildings is at an acceptable standard as well as how the organization will engage required maintenance personnel and at what cost.

Explain how the organization will maintain environmental standards and/or manage environmental liabilities (i.e. garbage collections, electricity, water access, etc.).

Explain how the organization will maintain heritage standards (Please refer to guidelines).

Explain how the organization will ensure and maintain public access to the site.

PART H: MARKETING STRATEGY

To the best of your ability, explain the site’s potential to generate revenue to offset operating costs. Provide relevant information on the local economy including principal industries. Include information on current and/or potential related tourist activities that already draw visitors to the vicinity. Provide any available details about expected visitors (where they might come from, why, would the site have particular appeal to certain age groups, etc.)

PART I: FINANCE

Please attach, with your submission, a five-year financial estimate, detailing revenue and expense projections and demonstrate the proposals viability. Organizations may wish to include a start-up budget, projected net income, projected annual cash flow and a pro-forma balance sheet (see example below). In the event that the proponent is requesting a one-time grant or financial contribution from the department of Fisheries and Oceans Canada or any any other source of government funding as a condition of transfer, it can be indicated in this section.

The following categories may be applicable to the operation of a site:

Potential Expenses

• Taxes
• Heating/cooling
• Electricity
• Water/sewer
• Cleaning
• Landscaping/site maintenance
• Insurance
• Security
• Maintenance and repairs
• Capital Improvement Sinking Fund
• Marketing/advertising
• Accounting/professional services
• Management/salaries

Potential Sources of Revenue

• Site admissions
• Charitable donations
• Government funding
• Funding from non-governmental organizations
• Leases to third party service providers
• Site rental for private functions

Example: Five-year financial estimate, detailing revenue and expense projections.

Sources of Revenue

Sources	Year 1	Year 2	Year 3	Year 4	Year 5
Site Admissions	$100	$100	$100	$100	$100
Charitable Donations	$500	$500	$500	$500	$500
Government Funding	$10,000	$10,000	$10,000	$5,000	$0
TOTAL	$10,600	$10,600	$10,600	$5,600	$600

Use of Funds

Ongoing Operations	Year 1	Year 2	Year 3	Year 4	Year 5
Taxes	$2,300	$2,300	$2,300	$2,300	$2,300
Electricity	$500	$500	$500	$500	$500
Insurance	$100	$100	$100	$100	$100
TOTAL	$2,900	$2,900	$2,900	$2,900	$2,900

Capital Investments

Investments	Year 1	Year 2	Year 3	Year 4	Year 5
Building Expansion	$70,000	$30,000	$0	$0	$0
Fence	$5,000	$0	$0	$0	$0
TOTAL	$75,000	$10,000	$10,000	$5,000	$0

Five-year Financial Estimate

Year	Sources of Revenue (+)	Operating costs (-)	Investments (-)	Surplus/Deficit
Year 1	$10,600	$2,900	$75,000	($67,300)
Year 2	$10,600	$2,900	$30,000	($22,300)
Year 3	$10,600	$2,900	$0	$7,700
Year 4	$5,600	$2,900	$0	$2,700
Year 5	$600	$2,900	$0	($2,300)

Comments:

PART J: ADDITIONAL DOCUMENTATION

Should the organization assume ownership, and the proposed use of the light house involves conversion or enhancement of the existing use in order to generate greater revenue, the Department of Fisheries and Oceans may ask for supporting documentation at a later date. Please answer the following questions:

Please list any additional documentation the organization will be submitting with this business plan and include a brief explanation of the addition.

PART K: POSSIBLE BARRIERS

PART L: EVALUATION FRAMEWORK

As responsible stewards of public assets, it is the Department of Fisheries and Ocean responsibility to analyze the business plans submitted under the Act in a consistent manner to ensure the successful transfer of the lighthouse property in accordance with HLPA and in consideration of Treasury Board policy frameworks. Consequentially, an evaluation framework has been developed that would enable DFO to determine whether potential lighthouse owners have the capacity to maintain and protect the heritage character of the lighthouse for the long term while allowing ongoing public access to the site.

Factors of consideration:

1. Ownership Structure

• Public
• Non-Profit Organization
• Private

2. Financial Capacity

• Financial position of the proponent
• Availability of investment capital
• Availability of alternate funding assistance
• Request for financial assistance from DFO
• Projected cash flows of lighthouse alternate use

3. Intended Use of Property

• The intended use
• Magnitude and restrictions to public access
• Planned alterations to the structure and site

The evaluation framework that has been developed is based upon reviewing the proposed ownership structure from the person or body submitting the business plan, the financial capacity of the ownership group to preserve the structure and its heritage character along with an examination of the intended use of the property. Criteria relevant to these three factors will be assessed on a global basis in order to develop an overall assessment to the plan and develop recommendations.

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