By Darren Lamp
I am finalizing my investment research on establishing a fuel station as the initial capital expenditure and revenue source on my existing lot on the Hollis Highway, that I lovingly refer to as “The Landing”. This lot is ideally situated on the Hollis Highway and as you are likely aware, this lot is a canvas awaiting it’s destiny! Therefore, committing to this outcome and establishing it commercially is not an easy decision…neither is putting a potential contamination hazard (and thus liability on myself) in this environmentally sensitive area.
The Hollis Community Council has over $100,000 sitting in a checking account getting 0.000% interest (I don't really know this detail) but it probably costs you money in fees to have the account. I would like to propose utilizing some of these funds to finance the costs of establishing and continuing to grow a successful core element that our community needs now and will always need—Gas.
I would like to ask everyone in Hollis to contemplate and realize that leveraging your funds in this manner is a unique way of “taxation” for needed infrastructure, keeping the accountability for services provided, through business sustainability, where it belongs (on the owner of the business). The interest from $100k at 6% is $500 per month, which is more than the tax you would be able to ever collect arguably from any tax of product from this location and doesn't require forming a city and staff to collect it. Additionally, the Hollis Council would be working with an enterprise, instead of trying to see what you can get from it without any benefit or skin in the game.
I will be seeking two separate “lines of credit” of $100,000 each to cover the initial costs and ongoing development of the lot. The first $100k will be offered at 6% interest and the second $100k will be offered at 7.5%. Both will be secured with the recording on the title of the Landing lot. At all times, the Hollis Community would be able to have access to 65% of the funds loaned within 7 days—as I maintain a Line of Credit which always has $75,000 available.
I am comfortable presenting the following capital cost estimates required to take the upper portion of The Landing lot and establish the fuel station.
Expenses:
Driveway Permit: $3,000
Establishing a safe (not to steep for ice/snow) access road, ample fueling area, and a platform to later build a grocery store on, a spill containment system and barrier protection for pumps: $55,000
Fuel Station in a box – delivered to Hollis, installed and connected to POS system:
$125,000
Security system, lot lighting and misc expenditures $10,000
Initial Fuel Inventory $27,000
Total $ 220,000
These estimates are all on the high side of any expectations. I believe I will be able to work with the Enrights and eliminate much of the $55,000 lot preparation in exchange for their ability to buy fuel for cost on an on going basis. The cost of the fuel station in a box looks to be obtainable for under $90k from the factory on the east coast. The Enrights might be able to barge it from Ketchikan to the lot, again reducing expense. The shipping to Seattle is looking to be almost $10,000, so I am looking at buying a semi and coercing a Hollis resident to drive it across country with his dogs and me.
The benefit of utilizing the Fuel Station in a box is the ability to sell, lease or rent the unit if the concept wasn't able to cover its costs (again, profit to me comes as a result of doing what I'm told too do).
It will have two tanks with 5,000 gallons per tank (diesel and unleaded) with a capacity of 10,000 gallons total. Petrol Marine’s maximum fuel delivery is 4,500 and this approach allows for the lowest cost potential on the fuel inventory. Petrol Marine will also offer me terms on the initial delivery of the $27,000 budgeted.
“When the locals are in control of their resources, they are in control of their destiny.”
I was taught this in my youth from an old man in a tiny remote village of England. I have never forgotten these words, nor have I meet anyone else who truly understood it's importance. A lot of people come to POW and bring money from other economies to do it and the importance of keeping their and our money on the Island can't be underestimated.
Many other concepts within my reach are much less risky, easier and less expensive to capitalize on and much more narcissistic for me to approach. However, I love risks and hopefully my achievements in business and reputation on the Island would allow for my community to join me in support by understanding my unique approach to the opportunities that I have been privileged to leverage.
I would like to think that the community would have no doubt that I am someone who is capable of successfully taking a concept such as this (a service business in Hollis) and executing a solution that works for everyone. Hollis Adventure Rentals was started in 2009, when the world economy was at the bottom of the worst financial crisis since the great depression.
Not only did HAR succeeded and exponentially grow every year since it's inception (and still does thanks to DJ's family and approach), it also was able to become a family run business by an ethical local native. This keeps the money on the Island in what I believe is the most important component of an isolated economy’s (like POW) true success.
I am able and am 92.269% certain I will execute this strategy with or without community support. But it will affect my mental state every time I set pricing! So for instance, if the community starts to contemplate “taxation without participation” please realize who will actually pay the tax.
I own arguably the best location for this fuel site to occur and believe I am the best option to execute such a strategy.
Uniquely, I believe the people of POW realize I am not a narcissistic profit based ass, but a hyperactive strategist that is need of constantly finding something “right” or “Godly” to target my efforts on.
Lets Gitty Up Hollis! :Darren Lamp, taking suggestions at darren.lamp@gmail.com
The next Hollis Community Council Meeting at the Fire Hall will be August 13th at 7pm where this proposal will be discussed. Please come with your support and ideas!
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