December 1, 2018

Dedicated Ice Initiative – Member Investment Program

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Investment Program

The club is looking to raise $350,000 in member investments.  To participate in this program, please download and fill out the form and return to Landon Russell via email (treasurer@lonestarcurlingclub.org) or print out and turn in.  We value your privacy, and only Landon and Darin will know the participants and amounts (we reserve the right to let other club leadership know as necessary).

Download Letter Of Intent 

 

FAQ

Q: What is the Dedicated Ice Investment Program?
A: The program is designed to raise from membership the seed money needed for the club to make the financial commitments needed to bring a dedicated ice facility to the Austin area.

Q: Will the club raise all the money needed for a dedicated ice facility through this program?
A: No, the plan is to combine this program with programs for donations and sponsorships and we will take commercial loans as necessary.

Q: How does the program work?
A: Money raised through the program will be paid back over time. The intent is that no money would be paid until two years after we open the facility. During that time, interest will be accrued and added to the individual’s total amount invested. After that, the investments will be paid back quarterly over a period of ten years. The outstanding principal will continue to earn interest during this time.

Q: How much can I invest?
A: The minimum investment is $5000.

Q: What is the purpose of the Letter Of Intent to Invest (LOI)?
A: The club needs to understand how much money we can expect from this program to make financial plans and to determine the viability of building a dedicated ice facility.

Q: Are the terms set out in the Letter Of Intent the terms of the investment?
A: No, the terms in the LOI (and this FAQ) are only meant to be an estimate of the investment terms, the actual terms will be set at the time of the investment. However, it is our intent to be at, or near, the terms stated in the LOI.

Q: If I sign an LOI, will the club be obligated to take an investment from me?
A: No, the club will only take investments as they are needed for our expenses.

Q: What happens if I sign the LOI and later decide to not invest in the club?
A: The LOI is for planning purposes only, it is not a commitment to invest and you are not obligated to follow through with an investment. However, it is important for the club to know what the membership support for this plan is, so please take the signing of the LOI seriously and let us know if, after signing, a change to your commitment is needed.

Q: Who will get preference in investment payback?
A: All investments will be paid back at the same time, at a rate proportional to the amount owed to that individual.

Q: When will payback start?
A: This will be set out in the terms at the time the investment is finalized, but the intent is to start payback in September of 2022.

Q: What is the frequency and amount of payback?
A: Again, this will be finalized at the time of the actual investment, but our current projections show that for each $10000 lent the payback will be $315 quarterly for 10 years.

Q: When will the club finalize the investment?
A: Investments may be initiated at several points based on when we incur expenses, but we anticipate that most investments will be needed in early 2020 in order to secure land.

Q: What if land is leased or donated, will member investments still be needed?
A: Yes, in this case investments would be used for construction costs and other fees to minimize commercial loans.

Q: Is my money at risk?
A: Yes. However, it is the intent of the club to utilize these investments mostly for tangible assets (land, building) and in case of a catastrophic plan failure these assets could be used to offset the investment liabilities. In addition, we do not anticipate moving forward with this program unless we are certain of our ability to build a viable curling facility.