Area 1 Theme Parks
and
Entertainment
Sponsor : Houston Hospitality Holdings
For important risk and disclaimer information, Click here.
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Tamara Williams | Managing Director
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(385) 600-1871
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Overview
Area 1 Parks and Entertainment (the “Company”) is raising $130 million equity and $250 million debt (of an $800 million total project cost) to develop, manage and own the “Wonderverse” entertainment park approximately 30 miles north of Houston (the ‘Project”).
Immersive high-tech adventure theme park poised to anchor a 1,000-acre mixed use development – the first major themed attraction/ destination marrying 4-D and Holographic / DVE technology with state-of-the-art rides engineered to simultaneously entertain and educate guests about the history and sustainability of planet earth and the beneficial effects of green technologies.
Key Strengths
- Wonderverse will have the first-mover advantage over existing theme parks that were designed and built prior to the advent of 4-D and holographic technology
- Market scale is large and growing
- Strong local demographics with families, national average incomes
- Diversified local economy, highly supported by government
- Good site accessibility, with planned connections to existing freeway
- Airport is approximately 20 minutes away
- No major competition in the metropolitan market
Features of the Project
Visitors to the 1,000-acre Wonderverse will experience the history of the Earth by passing through an experiential Gateway through time and space, discovering four themed zones, each focused on a unique fundamental feature of our planet; Water, Land, Sky and Fire.
- Cutting edge 4-D/ Holographic Technology
- Bear Grylls Obstacle Park within Adventure & Ecotourism Zone
- Gold LEED certified
- Water Park & 238-acre Lake
- 750-seat Live Concert Amphitheater / Holographic Event Center
- Digital Gaming Arena/ Digital Virtual Event (DVE) Center
- Film Studio/ Backlot/ Postproduction
- World class 40-store Retail/ Dining Promenade
- Resort Hotel & Convention Center Complex
- Emerging Technology Incubator & Showcase
- Commercial Office Center
- Workforce Training / Wonderverse Institute
- Glamping & RV Parks
- Micro farming
- Solar/ Green Energy & Recycling Plants
Development & Operations
HHH confirms that these service providers are fully committed. Their respective principals are on the advisory board, and are part of the management team
HHH is in discussions with the following key service providers as to scope and cost of their services
Co- Developer: Ayrshire, Inc developed many of Houston’s largest and most iconic transformational projects, including Reliant Center, The Toyota Center and Minute Maid Park
Design: o Architecture firm Smith Clementi will design the retail/entertainment part of the Project. Accomplishments include, The Hollywood Bowl, The Greek Theater, and Moody Theater (the home of Austin City Limits) and more
Theme Park Operations: International Theme Park Services (ITPS) will be in charge of all operations and park personnel
Engineers: Elevation Land Solutions, one of Houston’s most dynamic engineering firms in the region, having developed some of the cities’ largest and most successful projects for Friendswood Development, Signorelli, Land Tejas and more
Rides & Attractions: Jack Rouse Associates will be responsible for the design and the construction elements of the various rides and attractions
Contractors: DPR Construction and John Burns Construction have committed to a direct investment in the theme park
Financial Incentives
Tax Incentives: 40-year tax incentive that passes along 90% of all taxes on ticket sales, parking, retail sales, hotel occupancy, etc. to the developers. Based on conservative attendance and revenue projections, these incentives can aggregate close to $1.2 Billion (management confirms that this is fully allocated and confirmed)
Additional Incentives: Substantial retail and property tax abatements from the State of Texas, aggregating approximately $200 million
Multiple other federal and state grants are also being pursued
Management Team
Hrant Tosbath, Managing Partner, Houston Hospitality Holdings and Chairman of the Board
Managing Partner, Specialized Capital Management and Advisory
Formerly:
- Managing Director, GFTA
- Various positions, Swiss Bank Corporation and Republic National Bank of New York
Advisory Board Member:
- Oh Yes Foods!
- J. London Brands
Nizar Jabara, Chief People & Administrative Officer, Fiore Industries, Inc.
Formerly:
- Diamond Resorts
- Caesars Entertainment, Inc.
- Towers Watson
Board member:
- Enviropower Renewables
- Special Olympics, Nevada
J W (Jay) Harbison, President, 4J Energy LLC and Principal with JT Asset Partners
Formerly:
- Sunoco Logistics
- EDF Trading
- Texon LP
Board Member:
- Free Wheelchair Mission
- First Baptist Academy
- National Christian Foundation
Dennis L. Speigel, Founder and CEO International Theme Park Services (ITPS)
Started ITPS in 1983 and since then involved in 550+ projects in 55 countries.
Formerly
- Chairman, IAAPA and inaugurated into IAAPA Hall of Fame
- King’s Island Hall of Fame
- Morehead University Hall of Fame
William F. Burge, III, Chairman Ayrshire Corporation
Formerly
- Chairman of the Harris County/Houston Sports Authority from 1996 to 2006, guiding the construction of landmark projects such as the Houston Metro Railway System, Reliant Center NFL Stadium, Toyota Center NBA Arena, and Minute Maid Park Baseball Stadium.
Board Member:
- Chairman of the Board of the Houston Department of Health and Human Services
- Harris County Precinct One Street Olympics
Mark Amos, JRA Executive Vice President
Formerly
- Master planning, Project Management, and Directing project teams to leading the creative studio, directing and contributing to over 50 projects and delivering award-winning designs and destinations for such brands as Campari, Cartoon Network, Cedar Fair, Coca-Cola, Crayola, Ferrari, LIONSGATE, Hasbro, Jim Beam, Mattel, Miller Coors, Palace Entertainment, Qiddiya, TOYOTA, Sanrio, SONY, and Warner Bros.
Specific Risks
- General Risks of Project Ownership- Ownership and operation of a Project involves certain risks, including without limitation, changing consumer tastes, adverse changes in general economic and local market conditions, excessive building resulting in an over-supply of Projects, lack of attractiveness of the Project to patrons, changes in the global economy, changing tax rates, the ability of the enterprise to provide for proper staffing, and increases in food and labor costs
- Untested Market for the Project- The proceeds of the Offering will be used to construct the Project in a geographic market that has no similar developments. Although the Sponsor has conducted due diligence and feasibility studies that indicate the Project will perform as expected and there is an operating history in that market dating back to 2005. Astroworld ( the local Six Flags) operated until then and attracted 2.7 million visitors per annum. Moreover, the Houston Rodeo attracts 2.4 million visitors in 21 days, there can be no assurance as to whether or when the Project will generate available cash
- Project Industry Competition: Speculative Nature of Business – The Project industry is intensely competitive with respect to price, service, location, theme dining establishments and quality. As a result, the rate of failure is very high, and the business of owning and operating Projects involves greater risks than for businesses generally. There are many competitors of the Company that are well established and have substantially greater financial and other resources than the Company.
- General Risks of Real Estate Investments- The Project will be subject to the risks generally incident to investment in real estate, which is beyond the control of the Company and/or the Sponsor, no assurance can be given that the Project can be owned, operated, maintained, leased refinanced or sold at a profit
- Operating Risks – The Project will be subject to all the operating risks common to similar properties in general
- Dependence on this funding – The Company has limited resources and will be dependent on the net proceeds of this funding to implement its plan of operation. Although the Company anticipates that the net proceeds of this Offering, along with other capital sources and expected Construction Financing will enable it to develop the Property and successfully open the Project, there can be no assurance that such proceeds will be sufficient to finance the Company’s development plan and plan of operation
- Risk of Insufficient Patronage – There can be no assurance that the Project will be sufficiently patronized to assure sustaining operations or to allow distributions of cash to the Members
- Competition Risks – Any entertainment venues the Company operates or may acquire will most likely compete with numerous alternatives in attracting residents and visitors alike, including other theme parks and water parks, as well as pools, golfing activities, leisure sports, and sporting events
- Governmental Regulation – The construction and subsequent operation of the Project will be subject to various federal, state and local governmental regulations, including, without limitation, applicable health code regulations
- Experience of the Company and its Management – The Company will be newly formed and has no earnings. It faces all the risks of a new business and those risks specifically inherent in the investigation, acquisition or involvement in a new business opportunity
- Absence of Diversification – The Company has a single investment strategy, which is to develop an entertainment park in New Caney, Texas. The Company’s sole operations will be to build and operate the Project. The success of the Company and its ability to make distributions to Members is entirely dependent upon the success of the Project
- Construction Costs – While the Company has been in discussions with certain developers and has received estimates relating to the construction costs of finishing out the Project, the Company has not solicited bids. It has however received very detailed estimates and has added a 25% contingency to all building costs.
- Private securities are speculative, illiquid, and carry a high degree of risk – including the loss of the entire investment.
- A detailed list of risk factors can be viewed in the Private Placement Memorandum.