How the 290 acres are used
Most of the property is conserved, which earns state tax credits and protects the views that make the lots and the venue valuable.
Net proceeds from 14 lots at $215–275k each, after selling costs. Sold over years 2–5.
Transferable Colorado tax credits, sold for cash. Entitlement should raise the appraisal, which is what the potential case assumes.
Gross revenue a year once the calendar fills, from 36 to 50 weddings and events.
The 7,600 sq ft main house is already our top short-term rental, alongside a second 3-bedroom house.
Where the county and the land stand
Three meetings so far, positive at every step. The county sees the project as serving its interests. Layouts, code and division math are submitted; a clearer green light is expected this week.
Pikes Peak Ranch, a 140-acre property about 20 minutes away, recently received a similar resort Special Use Permit. Its pricing and bookings anchor our venue estimates.
The property already has wells with enough capacity that we reasonably expect water to work for the venue and lodging. Formal confirmation is underway.
Access from US 24 looks favorable and is being confirmed with the county.
Expected time for the Resort SUP and subdivision. No lots sell and no venue construction starts until approval.
The venue and what it costs to build
The large, high-end horse stable behind the main house becomes the indoor reception hall. Ceremonies happen on a new stone plaza and cocktail hour on an expanded deck.
| Item | Conservative | Expected | Potential |
|---|---|---|---|
| Stable remodel into reception hall (~4,000 sq ft) | $800,000 | $700,000 | $600,000 |
| Fire sprinklers, water tank and pump | $250,000 | $200,000 | $150,000 |
| Deck extension on the main house (~2,000 sq ft) | $150,000 | $125,000 | $100,000 |
| Outdoor ceremony plaza | $125,000 | $100,000 | $75,000 |
| Event septic, parking and restrooms | $225,000 | $175,000 | $150,000 |
| Venue construction | $1,550,000 | $1,300,000 | $1,075,000 |
| Roads, gate and power to the lots | $700,000 | $600,000 | $525,000 |
| Soft costs and contingency: design, permits, loan fees, furniture and equipment, pre-opening | $562,500 | $475,000 | $320,000 |
| Total to build (financed in year 2) | $2,812,500 | $2,375,000 | $1,920,000 |
The total is the “Borrowed to build” amount in year 2 of the year-by-year table.
Ceremony on the new stone plaza, with the mountain views.
Cocktail hour on the expanded deck of the main house.
Reception and dancing in the converted stable hall.
Overnight for the wedding party in the 7-bedroom main house.
What a year of events looks like
Mountain weddings concentrate from May through October, so most revenue comes in about half the year. That is normal for Colorado venues. An indoor reception hall is what opens up the rest of the calendar.
Conservative: 36 events
Adds 4 Friday or Sunday weddings in peak season and 4 off-season events in the indoor hall. About $876k gross, with 48% kept.
Expected: 44 events
Adds 8 Friday or Sunday weddings in peak season and 8 winter or shoulder-season events. About $996k gross, with 52% kept.
Potential: 50 events
A full calendar: 11 Friday or Sunday weddings in peak season and 11 off-season weddings, retreats and corporate events in the indoor hall. About $1.09M gross, with 55% kept.
Three cases side by side
Every number on this page comes from these inputs. Expected is the middle of the range. Potential shows where the plan lands if credits, lot prices and bookings come in at the top of their ranges.
| Input | Conservative | Expected | Potential |
|---|---|---|---|
| Lot price (14 lots, 6.5% selling costs) | $215,000 | $240,000 | $275,000 |
| Easement credits, cash after sale | $1.5M | $2.0M | $3.0M |
| Venue events per year (at maturity) | 36 | 44 | 50 |
| Venue gross revenue / operating margin | $876k / 48% | $996k / 52% | $1.09M / 55% |
| Remaining short-term rentals, operating income per year | $90k | $100k | $120k |
| Hot tubs and saunas on the rentals: $50k in year 1, added operating income from year 2 | +$15k | +$17k | +$20k |
| Yearly price increases on rentals and weddings (roughly inflation) | 2.5% | 3% | 3.5% |
| Roads, gate and power (year 2) | $700k | $600k | $525k |
| Venue conversion (year 2) | $1.55M | $1.3M | $1.075M |
| Soft costs and contingency (design, permits, loan fees, furniture, pre-opening) | 25% | 25% | 20% |
| Total borrowed in year 2 | $2.81M | $2.38M | $1.92M |
| Ag loan | 7%, $830k interest-only, rest over 30 years | ||
| Company value at year 10: higher of 10 × operating income or property value | $6.5M floor | $7M floor | $8M floor |
Company debt over ten years
Debt rises in year 2 when roads, the venue and soft costs are financed, then lot sales and easement credits pay it down.
The terms we are proposing
Ownership of the company that holds the land, the lots, the easement credits, the venue and the rentals.
on future expenses. If the company needs more cash later, the partner and the current owners each put in half.
The property is the collateral. A recent third-party cash offer of $5M on the land supports a value well above the $3.5M of debt that remains after this investment.
How the partner's return is built, step by step
The partner gets two things: 30% of the cash the business pays out each year, and 30% of what the company is worth at the end of the period. Switch between a five- and ten-year view. Every step below is shown, so nothing is hidden in the math.
Year by year
Rentals and venue are operating income after operating costs. Cash flow after the loan payment is what's left: when it is negative the reserve covers it, then the owners; when it is positive it is paid out, 30% to the partner. The cash reserve starts at $420k: $300k from the investment plus $120k left from the back-parcel sale after its loan payoff. Year 1 spends $50k of it on hot tubs and saunas for the rentals, plus the SUP costs. Lot sales and easement credits go to the lender; roads, the venue and soft costs are borrowed in year 2.
Timing
This week
The county's clearer green light on the layout is expected by the end of the week.
Meet in person
Walk through the partner buyout accounting and this model together, this week or early next.
Term sheet
Agree on structure, then move to documents. We need to move quickly.
Room to grow beyond these numbers
The SUP application is planned to include permission to expand to 100–200 person weddings and on-site lodging, as Pikes Peak Ranch received with its approval for additional cabins over time. Once the venue is established, reinvesting to add lodging becomes an option for the partners. None of that expansion is included in the projections above.
Lodging built into the 15-acre venue site
Two 2-bedroom cabins and four premium tiny homes, about 22 beds for the wedding party and family, and rentable to retreat groups and couples the rest of the year.
Illustrative estimate, not included in the returns above. Unit counts depend on the SUP and on well and septic capacity.