Butterfly Conservatory 2023

Exploring the power of transformation

BUTTERFLY CONSERVATORY

BUSINESS PROPOSAL

**CONFIDENTIAL**

DRAFT | VERSION 11

August 2023

A NATURE CENTER CELEBRATING POLLINATORS, BIODIVERSITY, ART, AND SCIENCE

An intimate experience on Lake Arenal, Costa Rica

A PROFITABLE BUSINESS WITH ROOM TO GROW

• The largest butterfly exhibit in Central America

• A proven business model with annual revenue of $175,000; profits of $65,000 annually

• Brand recognition (an international butterfly conference took place there November 2022)

• Established relationships with volunteers, who come from all over the world to work and lead tours for 6 weeks

• An intimate encounter with dozens of butterfly species, in four habitat enclosures

• A story of ecological restoration and resilience

OVERVIEW

Current profitable business showcasing rainforest regeneration efforts and the largest butterfly exhibition in Central America. Expansion plans include an ice cream shop, boutique, rental villas, and retreats. The visitor’s center will be retrofitted to a more complete science and education center, extending to biodiversity, pollinators, and conservation solution steps.

Purchase Price: $825,000

• $725,000 payment in 2023

• $100,000 owner carry, which is paid in annual installments from 2025-2030

• Includes current Butterfly Business (9.42 acres)

• Also includes raw land across the street with multiple points of street frontage for future development (6 acres) The purchase of the project would proceed in phases: In 2023, $725,000 would be transferred as an initial payment; the remaining $100,000 is paid in installments of $19,775 each September to the current owner from 2025-2030.

Construction Costs: $288,800

• $169,000 Conservatory Renovation & Volunteer House Construction (Year 1)

• $155,000 Villas (Year 2)

• $64,000 Soft costs ($24,000 architects, designers, engineers) and FF&E ($40,800) The construction funds would come from $75,000 of cash/working capital from Kimberly Byrd plus $200,000 from the new loan.

Loan

New loan request for purchase: $525,000

Cash down by Kimberly Byrd: $200,000

New loan request for construction: $200,000

Cash and working capital provided by Kimberly Byrd: $50,000-$100,000

New Loan Request: $725,000

Purchase Price: $825,000

Current value (2023 Appraisal): $1,961,048

Value after completion: $2,249,848

2023 Bank Appraised Values

THE PROPERTY

Total property: 15 acres

• 9 acres of Conservatory, including:

• 1,000 live butterflies, from 35 species, in 4 habitat enclosures

• visitors’ center

• laboratory

• frog habitat & turtle pond

• medicinal herb gardens

• hiking trails

• reproduction nurseries

• plot ready for construction of volunteer house with classrooms and indoor/outdoor teaching kitchen

• 6 acres for construction of Airbnb villas, cafe and shop

• Excellent volcano view from street

View of Arenal Volcano & Lake from the Parking Lot

A HISTORY OF GROWTH Butterfly Conservatory

The company has been profitable for the last 10 years, with the exception of the pandemic years, when renovations were completed. The first 4 months of 2023 have shown sales revenue almost double 2022 levels (x1.94; not shown above).

WHAT GUESTS SAY

PROJECT OVERVIEW

TWO NEW CORPORATIONS

THE TEAM

EXPANSION PLANS

RENOVATION & CONSTRUCTION

REVENUE STREAMS

PROGRAMMING

VISION

The Butterfly Conservatory and Villas are a science and educational center set within a biological reserve in Costa Rica, designed to nourish body, mind, and spirit. Through immersive discovery, exploration, and celebration of life on earth, it offers world travelers a vibrant reconnection to self, society, and planet in a spirit of optimism and regeneration.

MISSION STATEMENT

The Butterfly Conservatory and Villas inspire compassion and connection for the planet, its people, and all beings through positive, creative projects of the highest standard.

The 14 acres of land are set aside as a nature sanctuary in perpetuity, providing significant biodiversity conservation benefits to the planet.

The Conservatory and Villas gather people together to celebrate life and discovery with a holistic and integrative worldview based on systems thinking.

A regenerative mission produces lasting social, ecological, spiritual, and economic vitality for its visitors and surrounding communities.

A NEW CORPORATION

The current corporation encompassing the butterfly conservatory will be dissolved, and a new corporation will be established.

THE ARENAL BUTTERFLY CONSERVATORY SA (ABC)

The Arenal Butterfly Conservancy will consist of the science and educational operations, including the visitors center, educational exhibits, gift shop, laboratory, and the enclosures and hiking trails. In year two, two villas will be constructed for AirBnB rentals and retreats.

The six acres of undeveloped land may be utilized later in the lifespan of the company and could include two additional road front storefronts, multiple AirBnB villas, or a gated community development complete with an on-site River Walk Eco-Preserve along the Aguas Gatas river (an area of approximately 2.25 acres, included in the 6 acres). Further habitat restoration and the establishment and expansion of butterfly host plants will enhance the ecology of the area.

CONSTRUCTION AND RENOVATION OVERVIEW

Year 1: Conservatory Construction & Renovation $169,000

Conservatory Renovation

• Renovated visitors’ center and new exhibits

• New guest bathrooms

• New landscaping and design in the 4 butterfly enclosures

• Updated landscaping on the trails, turtle pond, and frog habitat

• Expanded medicinal garden

• New, expanded focus on pollinators (bees, hummingbirds, bats, moths)

• Hummingbird gardens, especially near the volcano view gazebo

Construction of Volunteer House

• New Volunteer House with 4 bedrooms

• Art & science classrooms on first floor of Volunteer House

Remodeling of current visitors center to incorporate cafe & gift shop

Cafe/ice cream

• A limited menu of Acai bowls, protein balls, detox drinks, and buddha bowls; all unique to the area. Inspiration: Edwardo’s Beach Shack , Aruba

• New Zealand Ice Cream (“Real Ice Cream”) will be a novelty in Costa Rica. The machine costs around $800, combines pre-made ice cream with real fruit, and makes personalized dairy and non-dairy options.

Inspiration: Happy Cones , Denver, CO

Butterfly Boutique

• The gift shop will be attached to the cafe deck, featuring bespoke gifts shop with focus on body, mind, and spirit

• A previous souvenir shop, Toad Alley, sold items imported from Bali and was extremely successful

• No other souvenir shops within 26 km

Year 2: Villa construction $155,000

• Two 2-bedroom villas with high-end finishes

• Inviting and lush landscaping provides privacy

• Base ADR on AirBnB approximately $150

• 2 queen beds in each of the bedrooms could enable the 2 units to be rented for an 8-person retreat, increasing potential revenue

THE TEAM

KIMBERLY BYRD, PHD

Executive director and owner; conservation biologist, sustainability education, workshop leader, TEDx speaker and coach, artist

GLENN BAINES

Current owner and original creator of the Butterfly Conservatory will retain partnership shares in the Conservatory and will remain on as an advisor and consultant

BRIAN STAGE

Hospitality Industry Consultant; US Small Business Association advisor who provided business plan review, cash flow analysis

MARY WELSH

Serdendipity Circles, CEO; Expert in Women’s groups, workshops, retreats, experience design

JULIA NERBONNE, PHD

Executive Director, Minnesota Interfaith Power & Light; experiential education, conservation biology, systems dynamics; social movements

JONEE KULMAN

BRIGHAM, AIA, LEED AP O+M

Leader in Sustainable & Regenerative Design, Green Schools, and Environmental Education, architect, artist

KIMBERLY

BYRD

WORK EXPERIENCE

PROFESSIONAL PROFILE

Positive, engaging sustainability professional with 30 years of experience motivating, communicating, and inspiring joyful and collaborative work for the common good. Experience in academia, nonprofit organizations, and local and state government has developed a diversified skill set focused on communication, partnership, critical thinking, and innovation. Excellent interpersonal, conceptual, and practical skills aimed at large-scale problemsolving.

651.698.2400

BYRD0023@UMN.EDU

THRESHOLDBLOG.COM

COURSE INSTRUCTOR / UNIVERSITY OF MINNESOTA

2009Lead instructor for courses on global sustainability, sustainable communities, and environmental ethics.

INSTITUTE ON THE ENVIRONMENT EDUCATOR / UMN

2019 -2021

Creation of a new course introducing all incoming freshman to principles of sustainability and resilience thinking.

CONTRIBUTING AUTHOR / MCGRAW HILL HIGHER ED

2018-2021

Updated chapters for Cunningham and Cunningham’s Environmental Science: A Global Concern; storyboard author for online environmental science lessons.

CONSULTANT / UMN DEPT OF APPLIED ECONOMICS

2016-2018

Researcher, author, and graphic designer of a 200+ page sustainability sourcebook for high school students and teachers.

MERCURY SPECIALIST / WISCONSIN DNR

RECYCLING COORDINATOR / NORTHWESTERN UNIV.

EDUCATION

UNIVERSITY OF MINNESOTA / DOCTORATE

1995-1997

1990-1994

1997-2004

PhD in Conservation Biology, an interdisciplinary program that integrates public policy and ecology. Dissertation on wolf management in Minnesota.

NORTHWESTERN UNIVERSITY / BACHELOR OF ARTS

1986-1990

BA degree in history, with a focus on science in human culture. Student activist and founding member of environmental group still active today.

SKILLS

• Excellent written, verbal, and graphic communicator

• Proficient and experienced at communicating technical or conceptual material

SELECTED EXTRAS

• Positive and enthusiastic team member

• Confident working individually, or as part of a team or coalition

• Innovative, approachable leader

“True Sustainability,” TEDx talk, October 2016; Chairperson, Mahtomedi Environment Commission 2018-2020; TEDx Steering Committee, 2018-; Member of the University of Minnesota’s United Nations COP25 Observation Delegation, 2019 and COP 26, 2021; Personal Chef 2017; National Outdoor Leadership School; Artist -See full resume in Appendix-

ADDING VALUE

8 CORE STRATEGIES

Diversify markets: art & science workshops will be a novelty for the area; a focus on pollinators opens interest into hummingbirds, bees, and bats

Lodging: New luxury 2-bedroom villas with bespoke linens, playful decor and outdoor pollinator habitat will enhance the adjacent land parcel

Retreats: women’s retreats; grandparent-grandchild; environmental/NGO/ corporate; art, science, storytelling; spiritual focus on transformational change

Dining: the café deck across the street can bring in standalone profits in addition to the package trips from La Fortuna

Science education: establish connections with international K12 teachers, undergraduates, elderhostel groups, biomimicry for engineers, architects, product designers, local schools

Expand existing markets: the purchase of a transfer van will bring in tourists from La Fortuna on package trips 2x day

Enhanced visitor experience through renovations of the exhibits, enclosures, and landscaping; themed trails, QR codes, and treasure hunts enable multiple ways to engage

Increase marketing efforts through new website, travel agencies, expanded credentials (eg. Regenerative Travel)

EXPANSION PLANS

Our on-site services will enable visitors to reconnect, energize, and interact along 4 pillars:

NATURE | SCIENCE | DISCOVERY | ART

This approach takes the successful model of the Butterfly Conservancy and adds components of art exploration, conservation sciences, and sustainability education for a stimulating, wellrounded, and unique experience of Costa Rica’s abundance.

RENOVATION OF THE VISITORS CENTER AND EXHIBITS

A new focus on landscaping will add to the lushness of the landscape. Artist-designed educational displays in the visitor’s center will focus on sensory exploration, and it help it stand apart as an attraction. An eye-catching front facade invites people in to discover.

NEW CONSTRUCTION: FOOD, LODGING AND ART

Overnight guests can stay in the Airbnb villas when they are not in use as part of a retreat. The villas have decor featuring bespoke textiles (bed runners, pillows) with matching robes. Bags, swimsuits, and other accompanying items are available in the gift shop.

ART, SCIENCE, AND SUSTAINABILITY EDUCATION

Classes and workshops on art, science and ecology are available as part of a lodging package, or may be purchased a la carte by overnight guests, international tourists staying in the area, or local residents. A shuttle bus picks up tourists from La Fortuna (30 minutes away) for packaged experiences. An expanded focus on pollinators makes it unique to the area.

Proposed Improvements:

4 PROGRAMMING PILLARS

NATURE | SCIENCE | DISCOVERY | ART

Led by a professor with 30 years of experience in the conservation field and 15 years experience teaching sustainability at a Big Ten university, this unique center offers an immersive experience into living and exploring solutions firsthand, not just talking about them.

NATURE

butterfly enclosures, turtle pond, hiking trails, river walk, children’s garden, observation/ cafe deck

SCIENCE

pollinators (hummingbirds, bats, bees, moths and beetles), biodiversity, systems thinking, ecology, habitat restoration

DISCOVERY

interpretive center, themed trails, QR codes, audio tours, biomimicry treasure hunts, forest bathing

ART

educational displays, sculpture garden, art installations, interactive art, bespoke textiles, enchanted cafe

RENOVATION OVERVIEW

Remodeling and renovation of the current visitor’s center, enclosures, and trails

EXHIBITS $5K

LANDSCAPING

$10K

ENCLOSURES

$5K

VISITOR BATHROOMS

$7K

NEW CONSTRUCTION OVERVIEW

Proposed Improvements: INCOME

DIVERSIFICATION

Diversification of revenue streams provides resilience to changing markets or travel restrictions. In addition to lodging, there are several entry points for local residents or nearby tourists to interact with the facilities.

PERCENTAGE REVENUE PER INCOME STREAM FORECAST FY 2027

*Entrance fees and gift shop sales are existing income streams (2023)

REVENUE STREAMS

FY 2027 REVENUE FORECAST BY SOURCE

* Entrance Fees and gift shop are existing income streams (2023); all others are new

REVENUE FORECAST

Proposed Improvements:

INCREASE ADMISSIONS

GOAL: INCREASE ENTRANCE REVENUE FROM $200K TO $350K IN FY 2027

• Expand efforts in marketing (presently, there are only road signs for this project)

• Acquire a shuttle bus to enable direct client transfer from numerous resorts in nearby La Fortuna, the adventure capital of Costa Rica.

• Offer a packaged tour 2 times a day that combines a guided hike in Arenal Volcano National Park, lunch in the enchanted cafe, and admission to the conservatory (+ $264,000 revenue in FY2027)

CREATIVE PROGRAMMING

- W orkshops: photography, art, painting, the creative cycle

- Biomimicry Treasure Hunts

- Butterfly Bingo (sample card on following page)

- Collaboration with Simply Jane Art Studio - canvas boards, starched canvas, bowls, canvas placemats

- Yoga workshops in the butterfly enclosures (might require expansion of an enclosure and the construction of a deck)

- Establish international peace site

Sensory exploration:

• Pipe classical/piano music into the enclosures

• Putt-putt with spider/bat/bird vision goggles

• Courtship Dance Wii

• Pollinator Paparazzi Photo Booth with props

PLAYFUL TEXTILES & GIFTS

T he buildings’ interior design and gift shop items will incorporate fabrics hand-curated by Kimberly. Grouped by color palettes and designed by artists across the world, the fabrics are printed on-demand onto lightweight cottons, gauze, cotton duck, linen, velvets, stretch lycra, and blends. We can also upload artwork created on-site by our artists in residence for a truly unique experience. The textiles will be used for bespoke curtains, pillows, bed runners, table linens, tea towels, swimsuits, beach bags, and robes. These unusual and delightful designs will help create a signature style for the facility. Look closely! Trilobites, sloths, jaguars, tapirs, and toucans are hiding everywhere.

SEMINARS & WORKSHOPS

Kimberly has extensive experience in sustainability education and has a large repertoire of ready-to-go seminars. These may be offered as optional add-ons for clients, workshops for the community, or small events for tourists in the area. Options could include a short lecture over dinner about biomimicry and then a night hike for discovery; ethics and enchiladas lunch sessions; or sustainability suppers.

ART EXPLORATION

Artist in Residence

Artist Workshops

Community Kitchen

Conscious Cooking

Craft your own lotions, balms

Create a one-act play, poster, digital story, song, bumper

sticker

Create your signature

aromatherapy scent

Cycles of Creativity & Renewal

DIY Art Intervention

Improv Workshops

Musician in Residence

Photography Classes

Postcard Series

Public & Community Art

Storytelling for Connections

The Poetry of Connection

Workshops on Cycles of Creativity and Renewal

Writer in Residence

SCIENCE WORKSHOPS

Adaptive Cycle

Biodiversity 101: That which weaves us together

Biomimicry Treasure Hunt

Climate Communication Basics

Climate Impacts Near & Far

Climate Science 101

Diversity & Redundancy (& the Pathology of Efficiency)

For the love of all things creepy and crawly

Healthy Gut, Healthy You (Your Inner Rainforest)

Integrative Nutrition Consultation

Managing Systems for Resilience

Our Relatives with Roots

Our Relatives with Wings

Planetary Boundaries

Science & NonDuality

Think Competition Runs the World?

Think Again!

Tipping Points: View from Ecology

SUSTAINABILITY SESSIONS

Alternatives to GDP

Architectural Demonstration

Buildings

Beyond Mission Zero: Creating Positive Change

Biomimicry: Life's Design

Principles

Biophilic Architecture & Design

Building a Vision: Backcasting for the Future

Design Thinking

Discover Permaculture Do we need transformative change?

Doughnuts & Doughnut

Economics

Ethics & Enchiladas

SPIRIT & MINDFULNESS

Adaptive Cycle

Cycles of Creativity & Renewal

Eco-Centric Worldviews: Deep

Ecology, Ecofeminism

Effective Communication

Equine Experience

Healer in Residence

incremental vs transformational change

Life Lessons from Biomimicry

Loving Kindness Meditation

Exploring True Costs & Externalities

Global SDGs & Synergetic Solutions

Grandma University

How Can I Make a Difference?

(Social Change Wheel)

Living Buildings/Living Communities

Living Systems Design

Measuring What Matters: Muticapital Assessments

Multi-Solving & Co-Benefits

Permaculture Principles

Planning for Resilient Futures

Psychology of Sustainable Behavior

Rapid Decarbonization: Is It Possible?

Regenerative Design

Resilience Mindsets

Solutions Showcase

Sustainability for the 21st Century

Synergy & The Sustainable Development Goals

System Archetypes: When problems keep coming back Systems Thinking on the Farm

The Sustainability Spectrum

What's a B-Corp?

Meditation & Neuroscience

Planning for Resilient Futures

Telling Your Story of Change

The Three Stories of Our Time (Macy, Relational Center)

The Work That Reconnects (Macy & Engaged Buddhism)

Thresholds of Change

Walking Meditation

What's it like to be a bat? Seeing through animal eyes

ART & SCIENCE WORKSHOPS

SAMPLE MONTHLY CALENDAR

Sustainability Sessions: Resilience Mindsets

Science Workshop: The Power of Pollinators

Science Workshop: Biodiversity Celebration

Science Workshop: Systems Thinking Superhero

How to build a Butterfly Garden

Science Workshop: Biomimicry Treasure Hunt

Special Event: Butterfly Release

Artist Workshop: Watercolor Butterflies

Artist Workshop: Plein Air Painting

Artist Workshop: Cycles of Creativity & Renewal

Science Workshop: For the love of all things creepy & crawly

Art & Science Workshop: The Adaptive Cycle

Sustainability Sessions: Science & NonDuality

Artist Workshop: Storytelling for Connections

Mindfulness: Deep Ecology, Ecofeminism

Special Event: Moth Ball

Artist Workshop: Macro Photography

Biomimicry: Life's Design Principles

Special Event: Butterfly Masquerade Artist Workshop: Paint a tiny universe

Sustainability: Do we need transformative change?

Science Workshop: Tipping Points: View from Ecology

Science: Think competition runs the world? Think again!

Sustainability Sessions: Ethics & Enchiladas

Sustainability Sessions: MultiSolving & Co-Benefits

Special Event: Picnic in the Pavilion

Sustainability Sessions: Alternatives to GDP

Sustainability Sessions: Regenerative Design

Artist Workshop: Mask Making

Sustainability Sessions: Solutions Showcase

Special Event: Fairy Tea Party

Mindfulness: Life Lessons from Biomimicry

Mindfulness: Telling Your Story of Change

Mindfulness: The Work That Reconnects

Mindfulness: Seeing through animal eyes

FULL-SPECTRUM EDUCATION

SPECIAL FOCUS ON K12 EDUCATORS

• Teacher training occurs over the summer with teachers as volunteers to the conservatory or on a teacher’s training retreat. Topics may include systems thinking, biodiversity, ecology, and sociology; suitable for art, science, social studies classes.

•

• Direct connection to students during the school year using classroom connect (Hamline University), webcams, lunch with scientist, passports, gamification. Optional student visits available for international middle or high school pupils and younger local students.

•

EDUCATIONAL RETREATS

Kimberly offers 3-5 day retreats, 5-10x year

Clients include ecotourists, K-12 teachers, students, undergraduates, Elder Hostel Developed themes, ready to go: Systems Thinking Superhero, Resilience Mindsets, Thresholds of Change, Creative Exploration, Solutions Showcase, Science Discovery, Deep Ecology, Biodiversity Celebration

Retreat facilities also rented out for transformational change, art & science exploration, and wellness events.

STUDENT RESEARCH INTERNSHIPS

Opportunities for scientific research and study include the scientific identification and classification of current insects on exhibit; a study of communication strategies for biodiversity education; guides to creating at-home pollinator gardens for different locations; and on-site insect sampling before and after restoration efforts on the 6-acre villa parcel.

Longwing butterflies of the genus Heliconius derive their name from Greek mythology, where Mount Helicon was the home of the Muses and a source of inspiration.

MARKET ANALYSIS

COSTA RICA COUNTRY ANALYSIS

ECOTOURISM IN COSTA RICA

MARKET SPOTLIGHT: ARENAL

COSTA RICA IS A STRONG INVESTMENT

WHY COSTA RICA?

Sometimes referred to as the "Little Switzerland" of Central America, Costa Rica is home to a stable democracy, unparalleled natural diversity, and some of the longestlived people on the planet. The country invented "eco-tourism" and plans to invest in the coming decade to ensure it's growth. There are numerous direct flights from the United states (a 5-hour direct flight from Minneapolis typically costs around $500), making it the ideal destination for tourists seeking either adventure or serenity.

COSTA RICA IS A STABLE DEMOCRACY

Costa Rica is one of the oldest democracies in the Americas. It abolished its military forces in 1949, diverting this funding to health and education of its peoples. It has prizes public education, including the university system as well as technical and vocational training. Its population of 5 million people enjoys a literacy rate of 96%. Costa Rica is the home to many international organizations such as the Inter-American Court of Human Rights, the University for Peace of the United Nations and the Earth Council. (Information from the embassy of Costa Rica in Washington, DC)

POST-PANDEMIC RECOVERY SHOWS STRONG BRAND

Costa Rica leads the world in Foreign Direct Investment, relative to its size (see graphic, next page). William Rodriguez, the Minister of Tourism, is determined to have visitor numbers in 2023 match or exceed those for 2019. The country’s marketing campaign, called “Life’s Essentials,” highlights adventure travel, natural beauty, flora and fauna, the country’s protected areas, and wellness.

ECOTOURISM IN COSTA RICA

The resilience that Costa Rica has shown during the Covid-19 pandemic has secured it the top ranking as the world’s best performing location relative to its size, when it comes to attracting foreign direct investment (FDI). ( source )

GREENFIELD FDI PERFORMANCE INDEX - BEST PERFORMERS

MARKET SPOTLIGHT: ARENAL

The Arenal Volcano is one of Costa Rica's most iconic treasures, hosting over 1.5 million visitors each year. This massive volcano towers over a man-made reservoir, Lake Arenal, which offers a multitude of water and adventure activities, including windsurfing, hiking, horseback riding, wildlife safaris, and photography. The surrounding hotels, spas, hot springs, and tourist towns make Lake Arenal and the Arenal Volcano one of the most popular tourist destinations in Costa Rica.

The largest town on Lake Arenal is La Fortuna, the "Adventure Capital of Central America.” La Fortuna is 30 minutes away from the Butterfly Conservatory, enabling shuttle buses to pick up tourists for day trips.

What are the characteristics of people visiting Lake Arenal? The illustrated analysis highlights demographics from a recent study of ecotourism in Arenal. The data from the graphics came from Carvache-Franco, et al. The Role of Motivations in the Segmentation of Ecotourism

Destinations: A Study from Costa Rica. Sustainability 2021, 13, 9818.

“70% of the 25,000 luxury travelers who travel with us each year go to Arenal” - Richard Bexon, Namu Travel

CUSTOMERS & MOTIVATIONS

ECOTOURISM MOTIVATIONS

USER PERSONAS

MARKET DISTRIBUTION CHANNELS

ECO-TOURISM MOTIVATIONS

INFORM CUSTOMER OFFERINGS

Insights about ecotourism motivations help inform the types of activities most likely to appeal to these market segments. This information was used to develop the new on-site offerings and programming elements at the Butterfly Conservatory & Villas.

Data in columns 1-3 are from Carvache-Franco, et al. The Role of Motivations in the Segmentation of Ecotourism Destinations: A Study from Costa Rica. Sustainability 2021, 13, 9818.

CONSERVATORY & VILLAS: USER PERSONAS

In User Experience Design (UX), professionals create “User Personas," fictional or archetypal clients that represent the needs, goals, and characteristics of an ideal customer. This helps product designers gain insight and empathy into potential market segments. An understanding of customers' individual learning journeys and their behavior patterns helps product designers create something that is useful, desirable, and valuable to the target market. In this case, the "Market Motivations" data research from The Role of Motivations in the Segmentation of Ecotourism Destinations: A Study from Costa Rica. Sustainability 2021, provided the justification and analysis behind each

MARKET DISTRIBUTION CHANNELS

FINANCIAL MODELS

MODEL ASSUMPTIONS

ALLOCATION OF FUNDS

DEVELOPMENT EXPENSES

PROFIT & LOSS FORECASTS

FINANCIAL MODEL ASSUMPTIONS

• An $725,000 loan is assumed with 9% interest over 240 months (20 years). Payments are $78,276/year, which include $64,391 of interest. These expenses appear in the “sources of funding” overview page, and in the page including the profit and loss forecast.

• Glenn Baines’ share of corporate stocks are purchased by Kimberly Byrd from 2025-2030. These payments will occur in September at a total of $19,775 per year.

• Dynamic pricing / seasonal pricing is not included in these models.

• Retreats are calculated for 5-day package rates per person ($2,450).

• Calculations assume rental villa occupancy at 50%, ramping up to 55% occupancy in year 5. Profitability could increase dramatically with higher occupancy.

• Employee head count starts at 5 in FY2023, average local salary is $750/month, plus December bonus, and 38% burden.

• Kimberly is paid $50,000/year.

• Currently, volunteers come from all over the world for an average stay of 6 weeks (1-month minimum). They help with operations and run tours. In low season, there may be 1 volunteer on site; during high season, 3-4. Needs may increase with increased visitor numbers.

• Volunteers receive free lodging in the volunteer house and a food stipend of $170/month.

INVESTMENT OVERVIEW

Butterfly Conservatory Purchase Price: $825,000

• $725,000 payment in 2023

• $100,000 owner carry, which is paid in annual installments from 2025-2030

• Includes current Butterfly Business (9.42 acres)

• Also includes raw land across the street with multiple points of street frontage for future development (6 acres)

Purchase and Construction

Kimberly will be the only signatory on the loan. Eighty percent (88%) of the shares of the Butterfly Conservatory shares will be transferred into Kimberly’s name in 2023 at a price of $725,000. The remainder of the shares (value of $100,000) will be purchased by Kimberly from 2025-2030. Beginning in September 2025, a $19,775 payment will be made to Glenn Baines (the current owner) and will continue each September through 2030.

Project Components and Timelines

The project includes remodeling of the visitor center to accommodate ice cream and gift shop area, renovation of educational exhibits, improved landscaping on the trails and in the enclosures, and the construction of a new volunteer house and two rental villas. Total construction costs are $288,800. Money will come from the cash investments of $75,000 by Kimberly in 2023 and $200,000 from the construction loan.

Butterfly Conservatory Renovation

Renovation of Visitor’s Center exhibits to accommodate an ice cream shop and boutique; updated educational exhibits, new landscaping in the enclosures, and a new volunteer house with classrooms

Butterfly Villas 2 bed/2bath x 2, AirBnB, located within the Conservatory. Can also be used for hosting retreats.

Soft Costs and FF&E Soft costs ($24,000 architects, designers, engineers) and FF&E ($40,800)

$169,000 Year1. Time to complete: 6-8 months.

$155,000 Year 2. Construction time 6-8 months.

$64,000 Distributed between years 1 & 2

SOURCES OF CAPITAL

USES OF CAPITAL

CONSTRUCTION & DEVELOPMENT EXPENSES

Estimated Expenditures for Property Purchase, Renovation & Construction

PROFIT & LOSS FORECAST

Butterfly Sanctuary, 2 Villas ADR $175, $725K loan. Only the interest expense from the loan (not the principle) appears on this page. Dividends are represented on the cash flow forecast and the projected balance sheet, which follow.

PROJECTED CASH FLOW

PROJECTED BALANCE SHEET

In this Balance Sheet, payments on the mortgage/loan appear as both short and long term debt entries.

SWOT ANALYSIS

STRENGTHS

• Outstanding customer reviews

• Personalized attention by staff

• New partner has extensive experience in writing, designing, and leading classes workshops and educational programs for a variety of audiences (intellectual property)

• New partner has special expertise in evaluating sustainability trends

• Unique combination of art, wellness, ecotourism, and science

• Revenue diversification beyond lodging includes opportunities for locals and local tourists

• Location attractive to travelers from US, Canada, Europe

• Positive, inspirational culture makes it a fun place to work and visit

• Guests can create personalized pathways specific to their interests

• Art, science, and cooking offer something new to the area

• Large repertoire of successful, healthy, vibrant recipes

• Holistic approach draws people in

• Bespoke textiles create novelty, something fresh

• Visitors promote self-care and healing, increasing their aptitude for engaging community and solidarity back at home

• Worker profit-sharing helps retain excellent employees

• Self-identified and self-directed projects by employees contribute to needs of the local community

WEAKNESSES

• Transportation travel time could be a barrier

• Visitors to Costa Rica often complain of poor road conditions

• High initial costs

• Creativity is needed in financing because all foreign real estate transactions are done in cash

• Rainy season limits visitors in September & October

SWOT ANALYSIS

OPPORTUNITIES

• Costa Rican government offers sustained, focused to increase tourism

• Strong eco-tourism and sustainability branding in CR

• Affiliate relations with related vendors

• Bespoke textiles could be sold online

• Online course offerings, e-books

• Networking potential with social entrepreneurs, regenerative travel, Bcorporations

• High growth trends for Wellness Economy and Wellness Tourism

• Wellness tourists are willing to pay 53% more for their experiences

• Costa Rica is showing very strong tourism recovery after COVID

• The Costa Rican real estate market has shown stable upward trends (no drastic highs/lows/bubbles)

• Potential affiliation with multiple colleges to offer for-credit student programs

• Explosive interest in regenerative approaches

• Special marketing and discounts for educators, health care workers, those in the environmental field

• Community programs like TED watch and discuss contribute to the social capital of the area

THREATS

• Potential changes in regulations (water, other?)

• Increased price inputs could cause upward pricing

• Increased climate threats: drought, floods, landslides, invasive species, vector-borne diseases, heat waves, refugees, red tide along the coast

• Political instability in Nicaragua could cause stress

• Pandemic health restrictions may limit international tourism

• Rising fuel costs could reduce international air travel

• Global recession may decrease international travel