2026 Calgary Olympics: Container Homes for Affordable Housing Financial Analysis Prepared By: Akbar Ali Kyle Huang Karthi Karunakaran Pouyan Shojaei Corey Yang-Smith Baiqian Zhong Submitted to Kris Hans, Instructor of ENTI 401 (Entrepreneurship and Innovation 401) - Opportunity Identification for fulfillment of course requirements at the Haskayne School of Business, University of Calgary in Fall 2018.

1. Container Homes for Affordable Housing
Financial Analysis

2. Entrepreneurship & Innovation 401
Instructor: Kris Hans
Date of Submission: Nov 27, 2018
Prepared By:
Akbar Ali
Kyle Huang
Karthi Karunakaran
Pouyan Shojaei
Corey Yang-Smith
Baiqian Zhong

3. Memo
To Kris Hans
From Containers YYC
Date November 27, 2018
Subject Financial Analysis for Affordable Housing
Introduction to Project
Based on the financial analyses, Containers YYC is a feasible venture, which can build 4,000
affordable housing units in Calgary. The proposed project is to be constructed in Highland Village
on Centre St N, situated on a 2.46-acre property that will be right on the Green Line LRT Route
(McElhoes, 2018).
This financial analysis has been developed with the assumption that Containers YYC will
undertake the construction of the housing units. However, should the project be fruitful, the
Company will hire a third-party construction company. In this situation, the financial analyses can
be used as a frame of reference during the RFQ process.
Key Assumptions
In order for this project to be successful, it was assumed that The City of Calgary will subsidize
the project and provide 25% of the one-time cash requirements. The other 75% will be financed.
Given that The City of Calgary is planning to spend $320M in the next 8 years, it was assumed
that financial support will be available from The City to support this development (Potkins, 2018).
Other key assumptions include the following:
• Accessibility – The Company chose a location that had access to public transit. The
development of the Green Line LRT (2020 – 2026) was also taken into consideration.
• Zoning Considerations – It has been assumed that the Company can work with The City
to re-zone the parcel of land to allow for high-density, mixed-use residential. This is
required to construct beyond 4 stories, if deemed necessary during engineering design.
Please refer to the financial statements for the specific assumptions used to develop the models.
Note that research data from the feasibility study for the Calgary 2026 Olympic Village were used,
as applicable, along with market data.
Financial Results
The proposed development has a one-time cash requirement of $56M, with the assumption that
The City can provide 25% of the funding. Including the $17M cash requirement for operating
expenses, the total cash requirement for the project is $73M.

4. A realistic pro forma income statement for the first year of operations has indicated that the
Company can earn $8M after taxes, by leaning on rental and advertising income. Fixed expenses
outweigh the variable costs, due to depreciation and interest. The Company is expected to have
a break-even point at $81M, which would be achieved at the end of Year 7.
A 10-year outlook of the pro forma income statement yielded similar results, with the Company
averaging $8M in after-tax profit each year. An inflation rate of 2% was used for this projection.
Assuming a minimum cash balance of $100,000 per month, the cash flow forecast indicated that
the Company will sufficiently meet the cash balance requirements, thus avoiding solvency issues.
Limitations
Key risks for the project, which can impact the budget and/or schedule, are as follows:
• Cost Overruns – A detailed engineering design and refined construction estimate is
required to understand the comprehensive scope and budget for this project. This has the
potential to impact the financial projections developed by the Company.
• Development Constraints – Stakeholders, including Community Residents and/or The
City, may prevent the Company from developing 4,000 units in the proposed location on
Centre St N. Reductions in the number of units will impact the financial projects developed
by the Company.
• Financing – Given that Containers YYC is a new company, it may be hard to secure the
required financing for this project. Perhaps, it may not be feasible to attain the full $42M
in financing, even with The City’s commitment to provide $14M. This may impact the
number of units that can be constructed, which may prolong the expected break-even
period and reduce the net income projections.

5. References
40′ Used High Cube Container. (2018). Retrieved November 25, 2018, from ATS Containers:
https://www.atscontainers.com/en/Products/Used-containers/Product/40-Used-High-Cube-
Container
7 Things You Need To Know About Contingency Budgets. (2015, April 02). Retrieved November 25,
2018, from Compton Construction: http://comptonllc.com/contingency-budgets/
Charges For Service Line Installations. (2018, April 01). Retrieved November 25, 2018, from ATCO Gas:
http://www.atcogas.com/services/documents/new-service-line-installation-charges.pdf
Cost Breakdown of Shipping Container Homes. (2018). Retrieved November 25, 2018, from Discover
Containers: https://www.discovercontainers.com/shipping-container-home-cost-breakdown/
Holmes, C. (2018, October 30). Utility Bills 101: Tips, Average Costs, Fees, and More. Retrieved
November 25, 2018, from move.org: https://www.move.org/utility-bills-101/
Klinge, J. (2010, September 18). Cost of Furnishing New Home. Retrieved November 10, 2018, from
Klinge Realty Group: http://www.bubbleinfo.com/2010/09/18/cost-of-furnishing-new-home/
McElhoes, R. (2018). Mixed-Use Development Site. Retrieved November 25, 2018, from Colliers Canada:
http://www.collierscanada.com/26202
Parameters of Sea Containers: 40' HIGH-CUBE. (2018). Retrieved November 25, 2018, from SeaRates
LP: https://www.searates.com/reference/equipment/3/
Planning Services Centre. (2018). 2018 Subdivision Fee Schedule. Retrieved November 25, 2018, from
City of Calgary:
http://www.calgary.ca/_layouts/cocis/DirectDownload.aspx?target=http%3a%2f%2fwww.calgary.c
a%2fPDA%2fpd%2fDocuments%2ffees%2fsubdivision-fee-schedule.pdf&noredirect=1&sf=1
Planning Services Centre. (2018). Multi-Residential Districts. Retrieved November 25, 2018, from City of
Calgary:
http://lub.calgary.ca/Part6/Division10_Multi_Residential_High_Density_High_Rise_M_H3.htm
Potkins, M. (2018, November 15). Council asked to approve 13% property tax boost over four years.
Retrieved November 25, 2018, from Calgary Herald: https://calgaryherald.com/news/local-
news/breaking-city-recommends-council-approve-3-5-per-cent-property-tax-hike
Smith, M. (2018, September 23). More affordable housing could be a perk of hosting the Olympics, but
can Calgary wait until 2026? Retrieved November 25, 2018, from StarMetro Calgary:
https://www.thestar.com/calgary/2018/09/19/more-affordable-housing-could-be-a-perk-of-hosting-
the-olympics-but-can-calgary-wait-until-2026.html
Taxes and Property Assessment. (2018). 2018 Property Tax Rates. Retrieved November 25, 2018, from
City of Calgary: http://www.calgary.ca/cfod/finance/Pages/Property-Tax/Tax-Bill-and-Tax-Rate-
Calculation/Current-Property-Tax-Rates.aspx
The Value of Professional Services 2018. (2018). Retrieved November 25, 2018, from APEGA:
https://www.apega.ca/assets/PDFs/salary-survey-highlights.pdf

6. Appendix A – Financials

7. SCHEDULE 1 Estimated One-Time
Financial Requirements
# of People in Need of Affordable Housing 4,000
# of People Per Housing Unit 2
# of Housing Units Required 2,000
Square Footage of a 40' High Cube Container 300
Total Square Footage of All Housing Units 600,000
Cost of a 40' High Cube Container 5,800.00$
Cost of Land Per Square-Feet 110.00$
Total Estimated
Original Cash
Item Cost Required
1. Land 11,000,000.00$ 12,100,000.00$
2. Total Purchase Cost of Containers 11,600,000.00$ 12,760,000.00$
3. Shipping Cost
3. Construction
i. Spray Foam Insulation ($/square-foot) 3
ii. External Cladding ($/square-foot) 10
iii. Foundation Cost 5,900
19,600,000.00$ 21,560,000.00$
4. Renting Machinery and Equipment
i. Crane ($/hr) 295.00$
ii. Tractors ($/hr) 595.00$
iii. # of Hours Crane Used in a Year 1,550
iv. # of Hours Tractor Used in a Year 2,080
1,694,850.00$ 1,864,335.00$
6. Furnishing
i. Furnishing Cost Per Unit 3,000.00$
6,000,000.00$ 6,600,000.00$
7. Office Equipment and Supplies 5,000.00$ 5,500.00$
8. Vehicles
i. Cost of a Typical Used Truck 20,000.00$
ii. Number of Trucks Required 5
100,000.00$ 110,000.00$
10. Utility Hookup Fees and Installation 150,000.00$ 165,000.00$
11. Licenses and Permits (Sub-Division and Permits from City of Calgary) 220,000.00$ 242,000.00$
12. Pre-Opening Promotion 10,000.00$ 11,000.00$
15. Cash for Unexpected Expenses 20,000.00$ 22,000.00$
16. Insurance 831,597.53$
TOTAL ESTIMATED ONE-TIME
CASH REQUIREMENTS $56,271,433
ASSUMPTIONS
A) All figures have been rounded up to the nearest tenth or hundreth.
B) Estimated Cash Required includes 10% contingency, based on Construction Industry averages.
C) Container and other material (cladding, foundation, insulation) costs researched at USD. $1 USD = $1 CAD conversion rate used for convenience.
D) Cost of crane and tractors estimated based on personal experience with Civil Consulting & Construction.
E) Crane is to be used for approx. 30 hrs per week for 52 weeks (required only for stacking).
F) Two (2) tractors are to be used for approx. 40 hrs per weeks for 52 weeks.
G) Furnishing cost was determined by adding a '0' to the square footage of an unit, based on market research.
H) Utility service tie-ins are assumed to be installed up to property line. Cost of installation includes tie-ins of electricity, gas, water to the housing units.
I) City of Calgary licences and permits are estimated based on 2018 Subdivision Fee Schedule.
J) Pre-Opening Promotion estimated at $5 / Unit.
K) Cash for Unexpected Expenses estimated at $10 / Unit.
L) Insurance was estimated at 1.5% of sub-total, as per the advice of Risk Manager from the City of Calgary.

8. SCHEDULE 2 Estimated Start-Up
Operating Expenses
Estimated Number of Total
Monthly Months to Cash
Item Expense Breakeven Required
1. Owners' Salaries
i. Monthly Salary Per Person 7,000.00$
ii. Number of Owners 6
42,000.00$ 60 2,520,000.00$
2. Employee Salaries
i. Employee Salaries 3,000.00$
ii. Number of Employees (Interns for Admin Work) 2
6,000.00$ 60 360,000.00$
3. Utilities
i. Electricty 183.00$
ii. Natural Gas 82.00$
iii. Water 40.00$
iv. Garbage/Recycling 20.00$
v. Internet 47.00$
vi. Netflix 14.00$
386.00$ 60 840.00$
4. Promotion Expenses 2,000.00$ 60 120,000.00$
6. Vehicle Expense
i. Total Operating Cost Per Truck (Gas, Insurance, etc.) 1,000.00$
ii. Number of Cars Owned 5.00$
5,000.00$ 60 300,000.00$
7. Telephone
i. Rogers Full Data Plan 100.00$
ii. # of People in Need of Work Phone 6
600.00$ 60 36,000.00$
9. Insurance on All Housing Units 121,800.00$ 60 7,308,000.00$
10. Travel 2,000.00$ 60 120,000.00$
12. Interest 105,508.94$ 60 6,330,536.16$
14. Other Expenses 1,000.00$ 60 60,000.00$
CASH REQUIRED FOR
OPERATING EXPENSES 17,155,376.16$
A. Total Cash Required to $17,155,376
Cover Operating Expenses
B. Total One-Time $56,271,433
Cash Requirements (From Schedule 1)
$73,426,809
C. TOTAL CASH OR OPERATING
LINE OF CREDIT REQUIRED
FOR START-UP
ASSUMPTIONS
A) Approx. 60 months to break-even was assumed, based on the preliminary financial model created for Feasibility #2.
B) Owners' salaries estimated based on EIT compensation in Alberta with approx. 3 years of experience.
C) Intern salaries estimated based on past internship experience of owners.
D) Utility costs (incl. vehicle expenses) estimated based on 2018 averages.
F) Interest estimated at 3% of Cash Requirements, assuming City of Calgary provides 25% of funding.
G) Approx. $1,000 miscellaneous expenses per month estimated.
E) Insurance on units are estimated to be 1.05% of the purchase cost of the
housing unit (1.05% was recommended by a City of Calgary's Real Estate Risk
Analyst).

9. SCHEDULE 3 Pro Forma Income Statement for
(Company) for the Year Ending (Date)
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12 TOTAL
1. Rent 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 19,200,000
2. Late Fees (5% of Rent) 84,000 84,000 84,000 84,000 84,000 84,000 84,000 84,000 84,000 84,000 84,000 84,000 1,008,000
3. Advertisement 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 240,000
A. REVENUES $1,704,000 $1,704,000 $1,704,000 $1,704,000 $1,704,000 $1,704,000 $1,704,000 $1,704,000 $1,704,000 $1,704,000 $1,704,000 $1,704,000 $20,448,000
Less: Variable Expenses
4. Owners' Salaries 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 504,000
5. Employees' Wages and Salaries 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000
6. Advertising and Promotion 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000
7. Travel 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
8. Vehicle Expense 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
9. Miscellaneous Expenses 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
B. TOTAL VARIABLE
EXPENSES $57,000 $57,000 $57,000 $57,000 $57,000 $57,000 $57,000 $57,000 $57,000 $57,000 $57,000 $57,000 $684,000
10. Utilities 386 386 386 386 386 386 386 386 386 386 386 386 4,632.0
11. Telephone 600 600 600 600 600 600 600 600 600 600 600 600 7,200
12. Depreciation 176,000 176,000 176,000 176,000 176,000 176,000 176,000 176,000 176,000 176,000 176,000 176,000 2,112,000
13. Interest 105,509 105,509 105,509 105,509 105,509 105,509 105,509 105,509 105,509 105,509 105,509 105,509 1,266,107
14. Insurance 66,667 66,667 66,667 66,667 66,667 66,667 66,667 66,667 66,667 66,667 66,667 66,667 800,000
15. Property Tax 6,145 6,145 6,145 6,145 6,145 6,145 6,145 6,145 6,145 6,145 6,145 6,145 73,745
C. TOTAL FIXED EXPENSES $355,307 $355,307 $355,307 $355,307 $355,307 $355,307 $355,307 $355,307 $355,307 $355,307 $355,307 $355,307 4,263,684
D. TOTAL OPERATING EXPENSES $412,307 $412,307 $412,307 $412,307 $412,307 $412,307 $412,307 $412,307 $412,307 $412,307 $412,307 $412,307 $4,947,684
E. NET OPERATING PROFIT (LOSS) $1,291,693 $1,291,693 $1,291,693 $1,291,693 $1,291,693 $1,291,693 $1,291,693 $1,291,693 $1,291,693 $1,291,693 $1,291,693 $1,291,693 $15,500,316
F. INCOME TAXES (Estimated) $7,440,152
G. NET PROFIT (LOSS) AFTER INCOME TAX $8,060,164
ASSUMPTIONS 56271432.53
A) Assumed monthly rent to be $800, based on Feasibility #2. 105,509
533.3333333
D) Assumed depreciation to be 12%.
E) Assumed property tax to be 0.0063573 (City of Calgary - Residential).
B) Assumed 5% of units will have late rent payments. Charge
5% penalty.
C) Assumed 10 ad spaces on the ground floor units, which
can generate $2,000/month advertising income.

10. SCHEDULE 4 Pro Forma Income Statement for
(Company) for the Year Ending (Date)
End of End of End of End of End of End of End of End of End of End of
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
1. Rent 19,200,000 19,584,000 19,975,680 20,375,194 20,782,697 21,198,351 21,622,318 22,054,765 22,495,860 22,945,777
2. Late Fees (5% of Rent) 1,008,000 1,028,160 1,048,723 1,069,698 1,091,092 1,112,913 1,135,172 1,157,875 1,181,033 1,204,653
3. Advertisement 240,000 244,800 249,696 254,690 259,784 264,979 270,279 275,685 281,198 286,822
A. REVENUES 20,448,000.00$ 20,856,960.00$ 21,274,099.20$ 21,699,581.18$ 22,133,572.81$ 22,576,244.26$ 23,027,769.15$ 23,488,324.53$ 23,958,091.02$ 24,437,252.84$
Less: Variable Expenses
4. Owners' Salaries 504,000 529,200 555,660 583,443 612,615 643,246 675,408 709,179 744,638 781,869
5. Employee's Wages and Salaries 72,000 75,600 79,380 83,349 87,516 91,892 96,487 101,311 106,377 111,696
6. Advertising and Promotion 24,000 7,200 2,160 648 194 58 17 5 2 0
7. Travel 12,000 12,240 12,485 12,734 12,989 13,249 13,514 13,784 14,060 14,341
8. Vehicle Expense 60,000 61,200 62,424 63,672 64,946 66,245 67,570 68,921 70,300 71,706
9. Miscellaneous Expenses 12,000 10,800 9,720 8,748 7,873 7,086 6,377 5,740 5,166 4,649
B. TOTAL VARIABLE 684,000.00$ 696,240.00$ 721,828.80$ 752,594.98$ 786,134.32$ 821,776.20$ 859,373.57$ 898,940.02$ 940,540.99$ 984,261.24$
EXPENSES
10. Utilities 4,632 4,725 4,819 4,916 5,014 5,114 5,216 5,321 5,427 5,536
11. Telephone 7,200 7,344 7,491 7,641 7,794 7,949 8,108 8,271 8,436 8,605
12. Depreciation 2,112,000 2,365,440 2,649,293 2,967,208 3,323,273 3,722,066 4,168,714 4,668,959 5,229,234 5,856,742
13. Interest 1,266,107 1,228,124 1,229,264 1,229,229 1,229,230 1,229,230 1,229,230 1,229,230 1,229,230 1,229,230
14. Insurance 800,000 816,000 832,320 848,966 865,946 883,265 900,930 918,949 937,328 956,074
15. Property Tax 73,745 76,326 78,997 81,762 84,624 87,586 90,651 93,824 97,108 97,593
C. TOTAL FIXED EXPENSES 4,263,683.91$ 4,497,958.40$ 4,802,183.47$ 5,139,721.92$ 5,515,880.02$ 5,935,209.63$ 6,402,849.56$ 6,924,553.06$ 7,506,762.79$ 8,153,780.25$
D. TOTAL OPERATING EXPENSES 4,947,683.91$ 5,194,198.40$ 5,524,012.27$ 5,892,316.90$ 6,302,014.34$ 6,756,985.83$ 7,262,223.13$ 7,823,493.09$ 8,447,303.78$ 9,138,041.48$
E. NET OPERATING PROFIT (LOSS) 15,500,316.09$ 15,662,761.60$ 15,750,086.93$ 15,807,264.29$ 15,831,558.47$ 15,819,258.44$ 15,765,546.01$ 15,664,831.44$ 15,510,787.24$ 15,299,211.36$
F. INCOME TAXES (Estimated) 7,440,151.72$ 7,518,125.57$ 7,560,041.73$ 7,587,486.86$ 7,599,148.07$ 7,593,244.05$ 7,567,462.09$ 7,519,119.09$ 7,445,177.88$ 7,343,621.45$
G. NET PROFIT (LOSS) AFTER INCOME TAX 8,060,164.37$ 8,144,636.03$ 8,190,045.20$ 8,219,777.43$ 8,232,410.40$ 8,226,014.39$ 8,198,083.93$ 8,145,712.35$ 8,065,609.37$ 7,955,589.91$
ASSUMPTIONS
A) Assumed inflation rate of 2% each year; therefore, rent and advertising revenue will increase by 2%.
B) Assumed salaries grow by 5% per annum for owners and employees.
C) Assumed advertising costs decrease by 70% per year, due to demand for affordable housing.
D) Assumed expenses (travel, vehicle) and utilities increase by 2% per year, to match inflation.
E) Assumed miscellaneous expenses decrease by 10% per year, due to streamlining of operations.
F) Depreciation is at 12% per year.
G) Interest at 3% per year, for the 75% of initial funding that will be financed.
H) Insurance goes up 2% per, to match inflation.
I) Property tax goes up by 3.5% every year, per 14-Nov-2018 Council Decision.

11. SCHEDULE 5 Pro Forma Cash Flow Forecast for (Company)
12 - Month Cash Flow Projections
Minimum Cash Balance Required 100,000.00$
Month Month Month Month Month Month Month Month Month Month Month Month YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10
1 2 3 4 5 6 7 8 9 10 11 12 TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL
1. Rent 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 19,200,000 19,584,000 19,975,680 20,375,194 20,782,697 21,198,351 21,622,318 22,054,765 22,495,860 22,945,777
2. Late Fees (5% of Rent) 84,000 84,000 84,000 84,000 84,000 84,000 84,000 84,000 84,000 84,000 84,000 84,000 1,008,000 1,028,160 1,048,723 1,069,698 1,091,092 1,112,913 1,135,172 1,157,875 1,181,033 1,204,653
3. Advertisement 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 240,000 244,800 249,696 254,690 259,784 264,979 270,279 275,685 281,198 286,822
A. REVENUE 1,704,000.00$ 1,704,000.00$ 1,704,000.00$ 1,704,000.00$ 1,704,000.00$ 1,704,000.00$ 1,704,000.00$ 1,704,000.00$ 1,704,000.00$ 1,704,000.00$ 1,704,000.00$ 1,704,000.00$ 20,448,000.00$ 20,856,960.00$ 21,274,099.20$ 21,699,581.18$ 22,133,572.81$ 22,576,244.26$ 23,027,769.15$ 23,488,324.53$ 23,958,091.02$ 24,437,252.84$
4. Owners' Salaries -42,000 -42,000 -42,000 -42,000 -42,000 -42,000 -42,000 -42,000 -42,000 -42,000 -42,000 -42,000 -504,000 -529,200 -555,660 -583,443 -612,615 -643,246 -675,408 -709,179 -744,638 -781,869
5. Employees' Wages and Salaries -6,000 -6,000 -6,000 -6,000 -6,000 -6,000 -6,000 -6,000 -6,000 -6,000 -6,000 -6,000 -72,000 -75,600 -79,380 -83,349 -87,516 -91,892 -96,487 -101,311 -106,377 -111,696
6. Advertising and Promotion -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -24,000 -7,200 -2,160 -648 -194 -58 -17 -5 -2 0
7. Travel -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -12,000 -12,240 -12,485 -12,734 -12,989 -13,249 -13,514 -13,784 -14,060 -14,341
8. Vehicle Expense -5,000 -5,000 -5,000 -5,000 -5,000 -5,000 -5,000 -5,000 -5,000 -5,000 -5,000 -5,000 -60,000 -61,200 -62,424 -63,672 -64,946 -66,245 -67,570 -68,921 -70,300 -71,706
9. Miscellaneous Expenses -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -12,000 -10,800 -9,720 -8,748 -7,873 -7,086 -6,377 -5,740 -5,166 -4,649
10. Utilities -386 -386 -386 -386 -386 -386 -386 -386 -386 -386 -386 -386 -4,632 -4,725 -4,819 -4,916 -5,014 -5,114 -5,216 -5,321 -5,427 -5,536
11. Telephone -600 -600 -600 -600 -600 -600 -600 -600 -600 -600 -600 -600 -7,200 -7,344 -7,491 -7,641 -7,794 -7,949 -8,108 -8,271 -8,436 -8,605
12. Depreciation -176,000 -176,000 -176,000 -176,000 -176,000 -176,000 -176,000 -176,000 -176,000 -176,000 -176,000 -176,000 -2,112,000 -2,365,440 -2,649,293 -2,967,208 -3,323,273 -3,722,066 -4,168,714 -4,668,959 -5,229,234 -5,856,742
13. Interest -105,509 -105,509 -105,509 -105,509 -105,509 -105,509 -105,509 -105,509 -105,509 -105,509 -105,509 -105,509 -1,266,107 -1,228,124 -1,229,264 -1,229,229 -1,229,230 -1,229,230 -1,229,230 -1,229,230 -1,229,230 -1,229,230
14. Insurance -66,667 -66,667 -66,667 -66,667 -66,667 -66,667 -66,667 -66,667 -66,667 -66,667 -66,667 -66,667 -800,000 -816,000 -832,320 -848,966 -865,946 -883,265 -900,930 -918,949 -937,328 -956,074
15. Property Tax -6,145 -6,145 -6,145 -6,145 -6,145 -6,145 -6,145 -6,145 -6,145 -6,145 -6,145 -6,145 -73,745 -74,113 -74,484 -74,856 -75,231 -75,607 -75,985 -76,365 -76,747 -77,130
B. TOTAL EXPENDITURES (412,306.99)$ (412,306.99)$ (412,306.99)$ (412,306.99)$ (412,306.99)$ (412,306.99)$ (412,306.99)$ (412,306.99)$ (412,306.99)$ (412,306.99)$ (412,306.99)$ (412,306.99)$ (4,947,683.91)$ (5,191,986.06)$ (5,519,499.09)$ (5,885,411.24)$ (6,292,621.29)$ (6,745,007.11)$ (7,247,556.95)$ (7,806,034.04)$ (8,426,942.73)$ (9,117,578.62)$
Financing
Principal 42,203,574 41,851,878 41,500,181 41,148,485 40,796,789 40,445,092 40,093,396 39,741,699 39,390,003 39,038,306 38,686,610 38,334,913
Payment of Principal of Loan -351,696 -351,696 -351,696 -351,696 -351,696 -351,696 -351,696 -351,696 -351,696 -351,696 -351,696 -351,696 -4,220,357 -4,220,357 -4,220,357 -4,220,357 -4,220,357 -4,220,357 -4,220,357 -4,220,357 -4,220,357 -4,220,357
Inflow of Cash From Bank Loan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
D. CHANGE IN CASH FROM FINANCING 351,696.45$ (351,696.45)$ (351,696.45)$ (351,696.45)$ (351,696.45)$ (351,696.45)$ (351,696.45)$ (351,696.45)$ (351,696.45)$ (351,696.45)$ (351,696.45)$ (351,696.45)$ (3,516,964.53)$ (4,220,357.44)$ (4,220,357.44)$ (4,220,357.44)$ (4,220,357.44)$ (4,220,357.44)$ (4,220,357.44)$ (4,220,357.44)$ (4,220,357.44)$ (4,220,357.44)$
E. INCREASE (DECREASE) IN CASH 1,643,389.46$ 939,996.55$ 939,996.55$ 939,996.55$ 939,996.55$ 939,996.55$ 939,996.55$ 939,996.55$ 939,996.55$ 939,996.55$ 939,996.55$ 939,996.55$ 11,983,351.56$ 11,444,616.50$ 11,534,242.67$ 11,593,812.50$ 11,620,594.07$ 11,610,879.72$ 11,559,854.76$ 11,461,933.05$ 11,310,790.85$ 11,099,316.78$
F. CASH AT BEGINNING OF PERIOD -$ 1,643,389.46$ 2,583,386.01$ 3,523,382.57$ 4,463,379.12$ 5,403,375.68$ 6,343,372.23$ 7,283,368.79$ 8,223,365.34$ 9,163,361.89$ 10,103,358.45$ 11,043,355.00$ -$ 11,983,351.56$ 23,427,968.06$ 34,962,210.72$ 46,556,023.23$ 58,176,617.30$ 69,787,497.02$ 81,347,351.78$ 92,809,284.82$ 104,120,075.68$
G. CASH AT END OF PERIOD 1,643,389.46$ 2,583,386.01$ 3,523,382.57$ 4,463,379.12$ 5,403,375.68$ 6,343,372.23$ 7,283,368.79$ 8,223,365.34$ 9,163,361.89$ 10,103,358.45$ 11,043,355.00$ 11,983,351.56$ 11,983,351.56$ 23,427,968.06$ 34,962,210.72$ 46,556,023.23$ 58,176,617.30$ 69,787,497.02$ 81,347,351.78$ 92,809,284.82$ 104,120,075.68$ 115,219,392.46$
MEET MINIMUM CASH BALANCE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE ACCEPTABLE
ASSUMPTIONS
A) Minimum $100,000 cash balance required per month to pay wages and bills.

12. SCHEDULE 8 Break-Even Point for First Year
Operating Expenses
1. Owners' Salaries 504,000.00$
2. Employees' Wages and Salaries 72,000.00$
3. Advertising and Promotion 24,000.00$
4. Travel 12,000.00$
5. Vehicle Expense 60,000.00$
6. Miscellaneous Expenses 12,000.00$
7. Utilities (Heat, Light, Power) 4,632.00$
8. Telephone 7,200.00$
9. Depreciation 2,112,000.00$
10. Interest 1,266,107.23$
11. Insurance 800,000.00$
12. Property Tax 73,744.68$
TOTAL OPERATING EXPENSES 4,947,683.91$
TOTAL INITIAL INVESTMENT REQUIRED 73,426,808.68$
CONTRIBUTION MARGIN = Monthly Revenue - Monthly Variable Cost 96.65%
Monthly Revenue
BREAK-EVEN POINT = Total Operating Expenses
Contribution Margin
$81,086,906.73
ASSUMPTIONS
A) A modified formula for the Contribution Margin was used, since COGS was not part of this Project.
B) Based on the break-even calculated, it is evident that the actual break-even point is in 72 months (Year 7).

13. Appendix B – Land

14. Rob McElhoes
Vice President
403 298 0403
rob.mcelhoes@colliers.com
>> 2.66 gross, 2.46 acres net
>> Medium density, mixed use site
FAR 0.8 to 5.0
>> 92,695 SF to 579,348 SF buildable
>> Flexible DC land use based on C-COR 1 plus
residential/retirement
>> High exposure inner-city site in gentrifying neighborhood
>> Located on Calgary’s transit Green Line, half a block from
future LRT Station
Colliers International
900, 335 - 8th Avenue SW
Calgary, AB T2P 1C9
www.colliers.com/calgary
M I X E D - U S E
DEVELOPMENT
SITE FOR SALE
4628 Centre
Street North
CALGARY | AB
$11,000,000 or $95/SF or $19 per buildable foot
DOWNTOWN
CENTRE
STREET
N
MCKNIGHT BOULEVARD NW
4TH
STREETNW

15. This document/email has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties
of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own
inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and
excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and /or its licensor(s). © 2018. All rights reserved.
This communication is not intended to cause or induce breach of an existing listing agreement. CMN Calgary Inc.
ROB MCELHOES
Vice President
403 298 0403
rob.mcelhoes@colliers.com
CITY LIMITS
STONEYTRAILSE(RINGROAD)
STONEY TRAIL SE (RING ROAD)
FOR SALE 4628 Centre Street North // Calgary // Alberta
GREEN
LINE
GREENLINE
Highland
Village