The Iron Lantern · Lender Working Plan · Version 7.3
Startup Expenses and Capitalization
A land-led acquisition and controlled opening budget for an operating 800+ acre whitetail ranch, with 40 campsites and the inflatable aqua park completed before the first full guest season.
Capital rule. The owner will invest up to $1,000,000. The purchase-price ceiling is $2,500,000, but the current lender case supports approximately $2.012 million. Buildings receive conservative value until full inspection because of deferred maintenance and restricted access during the initial visit.
Illustrative sources and uses
Total project
$3.00M
Working acquisition-and-opening case, subject to bids and underwriting.
Owner equity
$1.00M
Maximum planned cash contribution.
Debt / other
$2.00M
SBA-supported or conventional debt, seller financing and equipment financing as eligible.
Price position
$2.012M
Current lender-facing purchase price, not an appraisal.
| Use | Working amount | Underwriting treatment |
|---|---|---|
| Property acquisition | $2,012,000 | Land, hunting operation and verified transferable assets; final appraisal controls. |
| Due diligence and closing | $110,000 | Legal, title, survey, appraisal, environmental, building, fence, herd and forestry review. |
| Phase-1 opening package | $650,000 | 40 campsites, aqua park, parking, pavilion, guest systems and safety infrastructure. |
| Working capital and reserve | $228,000 | Seasonal operating liquidity, launch marketing and controlled-opening cushion. |
| Total uses | $3,000,000 | Illustrative; reconcile to lender eligibility and final bids. |
The amounts above are planning allowances, not vendor quotations. They intentionally avoid reliance on grants, unverified timber proceeds or Phase-2 technology revenue.
Phase-1 opening package
| Category | Planning allowance | Included scope |
|---|---|---|
| 40 campsites | $190,000 | Site materials, pads, fire rings, tables, signage and distribution infrastructure. |
| Sanitation and utilities | $105,000 | Water, wastewater solution, power distribution, trash and guest-service points. |
| Aqua park and water access | $95,000 | Inflatable modules, anchoring allowance, launch area, safety equipment and storage. |
| Parking and circulation | $70,000 | Aqua-park lot, accessible spaces, internal traffic controls and emergency access. |
| Pavilion, vending and camp support | $55,000 | Weather shelter, machines, basic furnishings, ice/firewood support and lighting. |
| Automated entry and check-in | $30,000 | Gate controls, reservation integration, cameras, connectivity and guest instructions. |
| Rental and activity fleet | $35,000 | Inflatable paddleboards, pedal kayaks, canoes, PFDs, racks and basic disc-golf equipment. |
| Permits, design, safety and contingency | $70,000 | Professional services, inspections, emergency planning and opening contingency. |
| Phase-1 total | $650,000 | Installation labor is excluded pending separate direction and estimates. |
Spring takeover gate. Closing must occur early enough to complete approvals, procurement, site work, inspections and a controlled soft opening. If the schedule cannot support 40 compliant campsites and aqua-park parking before opening, the launch date—not the safety scope—moves.
Pre-closing diligence budget
Real estate
- Appraisal and survey
- Title, easements and access
- Phase-I environmental review
- Wetlands, soils, wells and septic
Structures
- Full building access and inspections
- Fire, life-safety and accessibility
- Deferred-maintenance schedule
- Utility and road condition
Herd and hunting
- Current animal inventory
- Registration and transfer status
- Harvest and mortality records
- Fence engineering and condition
Forestry
- Professional timber cruise
- Species and volume schedule
- Forest-management plan
- Written stumpage bids
Capital stack
Owner equitySBA-supported debtConventional debtSeller financingEquipment financeConservation cost-share
- Owner equity: allocate only after the lender confirms required injection, eligible uses and working-capital expectations.
- Seller financing: seek standby or subordinate treatment where acceptable to reduce senior-debt pressure and align the seller with transition accuracy.
- Equipment financing: consider for aqua-park modules, vending, gate hardware and rental assets when it preserves operating liquidity.
- Timber: exclude from recurring debt support until a professional inventory, harvest plan and market bids are complete.
- Grants and cost-share: treat as upside or reimbursement only, never as guaranteed closing funds.
Cost controls and release gates
- Obtain at least two current quotes for material equipment categories and three for major contracted scopes where practical.
- Separate acquisition, code compliance, opening infrastructure, working capital and later expansion in the sources-and-uses schedule.
- Maintain a 10–20% construction/equipment contingency until design and quotes are mature.
- Release aqua-park funds only after zoning, water use, emergency response, inspection and insurance requirements are confirmed.
- Release campground funds only after site capacity, sanitation, utility, fire access and accessibility plans are accepted.
- Do not spend acquisition capital on robotics, an outdoor AR arena, ropes courses or speculative lodging until Phase-1 revenue and safety gates are met.
Three-year capital sequence
| Period | Capital priority | Decision gate |
|---|---|---|
| Pre-close to opening | Acquisition, diligence, 40 campsites, parking, aqua park, pavilion, gate/check-in, safety and reserve. | Permits, insurance, fixed bids and opening-readiness review. |
| Year 1–2 | Additional RV capacity, distinctive cabin/lodging units, group site, winter gathering space and expanded rentals. | Occupancy, aqua attendance, guest satisfaction, liquidity and DSCR. |
| Year 2–3 | Disc-golf expansion, high-adventure feasibility, outdoor AR arena pilot, forestry digital twin and limited robotics demonstrations. | Core business meets lender covenants and each project has a validated margin and risk plan. |
Lender message. Capital is concentrated first on land, hunting continuity, compliant camping and an affordable summer attraction. The apocalyptic lodging aesthetic and technology vision remain powerful differentiators, but they are financed only after the ranch proves its core operating model.
Planning framework only. Final amounts require appraisal, complete property access, professional design, regulatory review, insurance indications, current vendor bids and lender eligibility confirmation. Installation labor is excluded.