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A Unique Investment Opportunity

A Unique Investment Opportunity. Rausch Creek Land, L.P. Rausch Creek Land, L.P. (RCL) purchased approximately 15,000 acres in Schuylkill County, PA

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A Unique Investment Opportunity

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  1. A Unique Investment Opportunity

  2. Rausch Creek Land, L.P. • Rausch Creek Land, L.P. (RCL) purchased approximately 15,000 acres in Schuylkill County, PA • RCL subsequently subdivided approximately 3,000 acres into RCMS Investments, L.P. (RCMS), for the purpose of commercially developing the land surrounding the intersection of Exit 107 of Federal Interstate Highway I-81 and State Road 209 • RCL is also developing its significant natural resources on its remaining property, including a coal-fired power plant, a coal-to-natural gas plant, a large coal mining operation, a wind power farm, a coal fly-ash beneficial reuse program, and other alternative energy & industrial facilities • RCL currently has motorsports operations on its property, including the Rausch Creek Trail Riders Club, the Rausch Creek MX & ATV Park, and the Rausch Creek Off Road 4X4 Park

  3. RCMS INVESTMENTS, L.P. • RCMS has completed a detailed Master Plan for the commercial development of its approximate 3,000 acres • RCMS has allocated 1,250 acres to be contributed into Rausch Creek Motorsports Park, L.P. (RCMP) in addition to over $2 Million worth of preliminary design, engineering and construction • RCMS is currently negotiating with several potential strategic partners for the development of warehousing, hotels, and highway retail on the additional acreage surrounding Interchange 107 of I-81 • RCMS land is all zoned Conservation / Mining and RCMS holds a zoning permit for the road course on the 1,250 acres

  4. Real Estate Holdings RCMS Investments, LP

  5. RCMS Development Plan

  6. Centrally Located200 Mile Radius RAUSCH CREEK MOTORSPORTS PARK

  7. Demographics • 52,000,000 people live within the market area • 2,800,000 people attend car racing events • 700,000 people participate in car racing events • 1,100,000 people participate in motorcycling • 29 car and motorcycle clubs hold events within the market area • 17 driving and riding schools hold events within the market area • 27 racing organizations hold events within the market area • Driving distances to major cities within the market area include: • Philadelphia – 105 miles • Baltimore – 125 miles • Newark – 135 miles • New York City – 145 miles • Washington, D.C. – 165 miles • Pittsburgh – 245 miles

  8. Objective • Provide a premium, national level facility to service the needs of racers, enthusiasts and the motorsports industry by creating a multi-venue motorsports complex. The complex will be highlighted by a 2.6 mile national level road course, while leveraging other existing motorsports activities in the area. The 450 acre complex will also serve as an anchor tenant to stimulate the commercial development of the remaining 800 acres, known as Future Prime Development Area #1 (FPD#1) and Future Prime Development Area #2 (FPD#2).

  9. RAUSCH CREEK MOTORSPORTS, L.P.

  10. Motorsports Industry • According to Fortune Magazine, “Auto racing is America’s fastest growing sport”. Growing at twice the rate of other professional sports leagues, the motorsports industry is led by NASCAR, which is expected to surpass the NHL to become the fourth highest grossing professional sports league behind the NFL, MLB and NBA. • Sports Business Journal reports that motorsports is the most popular spectator sport in the United States, commonly setting single-day attendance records at major events. • The expansion of race dates and the construction of new facilities in new markets has garnered national attention. The ability to generate a significant economic impact has brought benefits to local economies.

  11. Road Course Business Plan • Design, build and operate a 2.6 mile national level road course • Track revenues will be maximized by balancing Rausch Creek driving & bike clubs, track rentals, and sanctioned race events • Sale of “Condorages”, which are trackside buildings that combine luxury living quarters with an oversized garage for enthusiasts to store and service their performance vehicles. 75 Condorages will be developed in 3 separate neighborhoods around the track.

  12. Condorages

  13. Road Course Description • The proposed road course will be a new generation track that meets the design and safety specifications of major sanctioning bodies, while offering the state-of-the-art in track design, amenities, and revenue generating capabilities • Designed by the world renowned Alan Wilson • 2.6 mile in length with a minimum width of 40 feet • 18 turns with extensive runoff areas and/or gravel traps • nearly 300 feet of elevation change providing excellent site lines for racers and viewing opportunities for spectators • Built to FIA and FIM specifications to satisfy the requirements of regional, national and international sanctioning bodies • 10 acre paved pit area with 32 garages

  14. Road Course Aerial Map

  15. Road Course 3D Map

  16. Market Opportunity • The demand for road courses in the NorthEast / Mid-Atlantic regions has increased rapidly as the popularity of motorsports has grown while the supply has remained steady with facility closures balanced by new openings • Most of the existing tracks are old in design and condition, and do not offer the high level of amenities that RCMP will have • Potential car/motorcycle clubs and schools to hold events at RCMP: • Car Clubs - Audi, BMW, Corvette, Mustang, Porsche, Viper • Motorcycle Clubs - NESBA, Team ProMotion, MARRC, Team Hammer • Schools – Bertil Roos, Panoz, Skip Barber, California Superbike, Freddie Spencer, Penguin, Drive Tech • Potential racing organizations to hold events at RCMP: • Cars - Grand Am, American LeMans, SCCA, Sportscar Vintage Racing Assoc, Indy Racing League, Champ Car • Motorcycles - AMA, WERA, CCS, ASRA, AHRMA, Moto-ST

  17. Road Course Competition There are 4 existing facilities in the NorthEast / Mid-Atlantic Region with road courses: • Pocono Raceway, 75 miles away in Long Pond, PA – built in 1968, it is capable of holding large car race events (NASCAR), but the partial road course configuration inside the banked oval is substandard and has not held motorcycle races for 10 years due to safety issues • Watkins Glen International, 120 miles away in Watkins Glenn, NY – built in 1948, it is 3.44 mile in length, has 11 turns, and has historically held large pro level spectator car events but no motorcycle races due to safety issues • Summit Point Motorsports Park, 150 miles away in Charlestown, WV – built in 1973, it is 2.0 mile length, has10 turns, and is a club level facility with limited amenities • Beave Run, 200 miles away in Wampum, PA – built in 2002, it is 1.54 mile length, has 12 turns, and is a club level facility with limited amenities There are 2 road courses under construction: • New Jersey Motorsports Park, 150 miles away in Millville, NJ – South Track 2.25 mile length, 14 turns – North Track 1.9 mile length, 10 turns. The level of quality and amenities will be comparable to RCMP. • Monticello Motor Club, 160 miles away in Monticello, NY – 4.1 miles length, 22 turns. The level of quality and amenities will be comparable to RCMP but it will be a members only facility

  18. Competitor Locations

  19. Road Course Competitive Advantages • State-of-the-art track design, amenities, and revenue generating capabilities • Easily accessible location with immediate access to I-81 and connecting access to Federal Interstate Highways I-80 to the North and I-78 to the South • Nearly 300 feet of elevation change, more than any other track in the U.S. • Spectacular viewing opportunities for spectators • The road course will leverage the other existing motorsports activities offered by RCL, including a 2,000 member trail riding club, a MX & ATV park, and an off road 4x4 park

  20. FPD Areas Business Plan • The motorsports activity at the road course will stimulate the commercial development of FPD Area #1 (425 acres) and FPD Area #2 (375 acres). • Potential development includes: • A resort hotel and conference center • A golf course • A residential / vacation home community • A motorsports and highway related industrial park • Additional motorsports or recreational venues

  21. FPD Areas Description • FPD Area #1 contains 425 acres and is located between Route 209 and the road course. It is bisected by the ¾ mile Access Road and overlooks Interchange 107 to the north and the road course pit area to the south. • FPD Area #2 contains 375 acres and is located to the south of the road course. This area is ideal for additional motorsports venues or additional commercial development. • Both Areas will utilize a common infrastructure system

  22. Management Team • Bob Rivkin, President - Mr. Rivkin is currently the General Partner of  both RCL and RCMS, which are successor entities from a group of 13 affiliated companies he successfully restructured, recapitalized, and purchased.  The transaction included a bankruptcy reorganization, the sale of two companies, the restructuring of the existing secured debt, and the raising of new capital. He has specialized in providing and raising investment capital, and strategic and financial consulting for distressed companies, mergers and acquisitions, and companies in the start-up or high growth phase. • Arthur Diaz, VP of Business Development – Mr. Diaz is a partner in RCMS. He previously served as Treasurer & Director of Construction Services at GTS Technologies, Inc., a large civil & environmental engineering firm in Harrisburg, PA. An active motorcycle road racer, he is also a multi-time CCS and WERA champion. • Andrew Stutzman, VP of Operations – Mr. Stutzman has a BA in Public Relations from Lebanon Valley College. As a native and current resident of Schuylkill County, he has an intimate knowledge of the property and the local politics. He also has ten years of experience as a motorcycle road racer and race team manager. • Rob Feldman, Track Manager – Mr. Feldman has a management degree from Lehigh University. Formerly with International Speedway Corporation where he served as Director of Operations at Nazareth Speedway, he has experience in operations, automotive event marketing, sales, and information technology.

  23. Road Course Design Team • Wilson Motorsport, Inc - Salt Lake City, UT – featuring Alan Wilson, an internationally recognized track safety expert who specializes in the design and development of road racing facilities for car, motorcycle and kart racing, and in the organization, operation and management of race events • Fink, Roberts & Petrie, Inc. - Indianapolis, IN - the structural engineering consultant for the Indianapolis Motor Speedway since 1951, including the major renovations for the Formula One upgrades in 2000 and the MotoGP upgrades in 2007. • Browning Day Mullins Dierdorf Architects - Indianapolis, IN - a leading Midwest architectural, landscape design and planning firm with over 40 professionals, and partner with FRP in designing the upgrades at Indianapolis Motor Speedway

  24. FPD Area Design Team • Pennoni Associates, Inc. - Mechanicsburg, PA – With over 800 employees in 22 offices, Pennoni is a multi-disciplined engineering firm that provides a wide range of services to local, state & federal governments, as well as private, industrial, commercial, industrial, and construction clients. • Burt Hill, Inc. – Pittsburgh, PA – With over 600 employees in 7 offices, Burt Hill provides architectural, planning and marketing services. Their motorsports experience includes the master planning for an 858-acre motorsports development at the Dubai Autodrome referred to as Motor City. • Delta Development Group, Inc. – Mechanicsburg, PA – PA’s leading provider of a broad array of corporate incentive services, including: site identification & feasibility analysis; economic analysis; and the negotiation of public funding incentive programs with state agencies to secure maximum funding packages

  25. RCMP Capital Structure • RCMS will make a capital contribution valued at $18.75M for a 60% interest in RCMP. The contribution consists of 1,250 acres and over $2.0M of engineering, feasibility and preliminary construction completed to date, resulting in a valuation of $15,000 per acre. • Investors will contribute $12.5M in cash for a 40% interest

  26. Sources of Capital

  27. Uses of Capital

  28. Cash Flow Summary

  29. Financial Return Highlights • Projected IRR's range from approximately 21% to 44% • Prime real estate development opportunity significantly reduces risk • High EBITDA margins • High Free Cash Flow generation • Low initial leverage (debt/equity) ratio of 1:2, or 33% of capitalization

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