Trinidad Business Plan

Business Plan for the Formation of the RedditIsland Investment Project
TrinidadIslandInvestmentsLLC8647RichmondHwy#656Alexandria,VA.22309citizenpolitician@gmail.comwww.RedditIsland.com
Table of Contents
Table of Contents Executive Summary Introduction Objectives Mission Statement Keys to Success Company Summary Overview Ownership and Ownership Plan Organizational Structure Management Plan Company Expense Management Company Location Services Overview Pre-Purchase Services Post-Purchase Services Transparency and Communication Towards Fulfillment of Services
Technology Country Analysis & Survey Overview of Process Considerations for Immigration Considerations for Foreign Business Operations Other Factors Pertaining to Consideration Country Review Next Steps Island Analysis Overview of Process Location Considerations Geological Considerations Analysis of Island Size Other Factors Pertaining to Island Selection Cost Analysis of Currently Available Islands Next Steps Strategy & Implementation Overview Pre-Purchase Plan Fundraising Corporate Formation Consultants Pioneer Selection and Steering Committee
Infrastructure Buildout Initial Arrival Teams Logistic Plan Government/Land Owners Negotiations Resort/Tour Operator Negotiations Post-Purchase Plan Sub Contractor Selections Arrival Team Activities Transportation and Shipping Community Initiation Plan Supply Chain Management Overview of Post-Purchase island Costs Long Term Plan Island Management Financial Management Government Formation Methods of Profit Generation Financial Plan Costs and Expenses Prior to Purchase Transfer of Funds to Trinidad Island Investments Important Assumptions Estimated Use of Funds Projected Profit and Loss Statement
Other Financial Statements
Executive Summary
Introduction It is the intent of Trinidad Island Investments, LLC to facilitate the purchase of an island with sufficient size and capabilities to support the long term survivability of the RedditIsland Community members who wish to relocation and immigrate to the island. This business plan lays out the activities and processes that Trinidad and the RedditIsland Steering Committee will perform as it engages in the planning, negotiations and purchase of the island. Objectives Our main objectives as delineated in this document are as follows: Assist with the organization and planning requirements that lead to the selection of a country. Assist with the organization and planning requirements that lead to the selection of an Island. Act as the focal point and person of reference to real estate brokers and government official who are involved in the purchase of the island Act as the signatory and owner of the island purchase Negotiate contracts and organize company employees to assist with the infrastructure construction on the island Assist company employees with travel and accommodating needs during island infrastructure construction Act as land manager for island real estate and interface with host nation land management entities as necessary Act as the primary focal point with host nation legal and political entities as it relates to island activities and operations. Provide a legal framework for the members of the company and joint owners of the island in which to conduct the necessary activities that lead to a successful long term existence of the island and its inhabitants
Mission Statement The Reddit Island project has the ambitious goal of purchasing an island and developing it as a cross between a small self-sustaining community and a tourism spot. This is not an attempt to create an independent island operating outside the law, nor is it going to be a Pirate Bay Sealand spin-off. This is about the internet as a community, coming together through social media sites, and investing a small amount of time and energy across thousands of people to create something real and tangible. Keys to Success The are many keys to the success of this project but the most important, and the one from which all other keys to success flow, is the commitment of the RedditIsland community and its members to the success of this endeavour. Without each member taking an active role in providing support to this effort, we will not succeed. As a part of that commitment to success, the primary responsibility of the RedditIsland members is the financial commitment to the island and the cost associated with its management and long term survivability. Without this commitment, Trinidad and the active members will be hard pressed to make this project a reality. Another key to success is the commitment of time. Members must understand that this project will require considerable effort over a long period of time to be realized. Each person has different talents and those talents will be necessary at different times during the island purchase and formation. Members must be willing to commit their time when their talent is most needed. The last key to success is the operation and proper functioning of the Trinidad Island Investment, LLC and its general management staff. Trinidad will be heavily engaged in legal, financial and political negotiations centered around the purchase and build out of the island. The company and its staff must be willing to provide the best oversight and management of these activities as necessary.
Company Summary
Overview In May of 2012, the company, Trinidad Island Investments, LLC was formed in the state of Virgina and governed by Virginia Law. Virginia is considered on of the best states in American, along with Nevada and Delaware for forming an LLC. All books, papers, reports and other articles required of the business to meet legal mandates are maintained in the state of Virginia. Ownership and Ownership Plan Ownership at the initiation of the company, lists Citizenpolitician as the General Manager and whole owner of the company. It is expected that additional members will join the company and the shares of the current owners will dilute. Dilution is based on the percent share of ownership relative to the amount of the membership commitment divided by total membership commitments. Ownership will be made available in two (2) classes of shares. Class A shares are reserved for initial depositors and future island property owners. Each share as a unit value of $250. This Class of shares has full voting rights within the company based on the percent share of the members ownership stake. Class B shares are referred to as Timeshare units. It allow owners of this share to have access to the island and stay for as long as the host countys tourism visa specifies within certain park areas designated for this purpose. Timeshare owners do not have voting rights. It is expected that the company will have partnership agreements with companies wishing to provide tour/resort services to tourists and travelers. These companies will have a contractual relationship to the company and have no voting say in the operation of Trinidad Island Investments. Organizational Structure The organization structure of Trinidad Island Investments is minimal, with a single General Manager acting in the interest of the company. As it performs its duties associated with the pursuit of the island investment, the organization structure will expand to meet the demand of those activities. The initial organizational structure will have a mutual beneficial relationship with the RedditIsland Steering Committee.
Initial Org Chart As the progress toward the purchase of the island continues and the company transfers the members of the RedditIsland Community into Trinidad, the company will be reformed in the host country in which the island is to be purchased. When this occurs, The members of Trinidad will elect a Board of Directors in which the General Manager serves. Functional areas pertinent to the function of the island will be formed and members of Trinidad will be selected to serve in those roles. The future org chart should look more like this:
Management Plan Having many examples across numerous corporate and political systems in which a handful of people use influence and coercion to manipulate and control an organization, we intend to form the company management in such a way as to prevent this situation. Within the operating agreement of Trinidad Island Investments, stipulations will be outlined that create a rolling term limit schedule for the General Manager and the Board of Directors. This will prevent any one person or group of people from usurping the power and authority of the other members. Initial members of the Board and functional areas of the company should be selected from members that offer unique skill sets and experience that has direct impact on the success of the island. It is not the intent to exclude other from this process but to ensure that people with critically important skills can work collaboratively to build the island from its initial founding. This would not be the case going forward as the term limit schedule in the operating agreement will allow for other members of the island to serve in key rolls to guide the island in its operations. Company Expense Management As the company pursues the purpose of purchasing an island for the RedditIsland Community, it will face expenses for a number of issues that relate to island owner negotiations, government negotiations, legal fees, real estate fees and possible contractor fees to perform island evaluations and assessments. It is agreed that until such time that the members of the RedditIsland Community become owners of Trinidad Island Investments, expenses for the pursuit of the island will be brought before the RedditIsland Steering Committee for approval. Approved expenses will require the community to commit funds to cover these expenses. All monies committed to cover the cost of expenses are equally allocated to the members pledge deposits and will be reflected in their membership shares in Trinidad Island Investments at the time they become members. It is hoped that the majority of expenses needed to be covered will be incurred after the members of the RedditIsland Community become members of the Trinidad Island Investment LLC. Company Location Trinidad Island Investments, LLC has a main business address at 8647 Richmond Hwy. Suite 656, Alexandria, VA. 22309
Services
Overview Many things must be done to ensure that this project is successful. Numerous services in support of purchasing the island and establishing its founding will be necessary. Trinidad Island Investments, acts in concert with the Steering Committee of the RedditIsland Community to provide a legal entity in which these services can be performed as well as give credence to the actual intent of this community as it appears to the managers, sales people and government personnel that will interact with us. Pre-Purchase Services While the community is in the process of pre-purchase of an island, Trinidad will provide a number of services that assist with the success of this endeavor. The following services will be performed prior to island purchase: Organize the online community and provide support to the maintenance of the RedditIsland subreddit at www.reddit.com/r/RedditIsland Assist with the development and maintenance of the official website and the costs associated with that website. Provide the necessary documentation and development of documentation necessary to organize the community. Provide the management of Pledge fundraising commitments and maintain the membership record accounts of committed funds. Act as the administrative body to the RedditIsland Steering Committee and record keeper of votes conducted in the community as to the decisions necessary for the island purchase. Engage with real estate brokers and island government foreign investment entities to negotiate the conditions of sale for an island purchase. Engage with legal, accounting and financial contractors to properly maintain the books and legal documents of the company as required by the laws of Virginia and any other nation in which the company maintains a legal presence. Provide all legal documents necessary for the transfer of funds from the fundraising activities to the company and provide a legally binding membership agreement to the members of RedditIsland who have transferred their financial commitments to the company. Conduct evaluations or hire contractors to evaluate the island to ensure it meets the necessary standards for purchase Conduct the sale of the island to Trinidad Island Investments, LLC and its members.
Post-Purchase Services Once the island has been purchased, Trinidad and its members will be the owners of the island. At that time, Trinidad will conduct operations necessary to bring the island to a condition of occupation. The following services will be necessary to make this a reality: Negotiate with host government officials for tax incentives and business operation concessions that benefit the successful operation of the island Negotiate with contractors in and around the host country to provide immediate access services to the island in the form of shipping/landing and port/dock construction Organize, plan and provide financial support to the arrival teams who will do preliminary geological, geographical, soil analysis, fauna and forestation analysis, species analysis if there are legal requirements for the protection of certain animal groups, road layout, zoning and plot surveys Create the official report to the members of Trinidad and the Board of Directors on island immigration procedures and schedule Negotiate with resort and tour operator(s) for the sale of land to construct resort operations . Contract with subcontractors or negotiate rental agreements for industry equipment necessary to build initial infrastructure support in the form of roads, water retention, drainage, power and basic internet services. Note: little to none of the roads will be paved at the onset of island operations. Conduct port operations in support of equipment, people and supply deliveries Create and file with the government, all necessary legal paperwork associated with the ownership or subleasing of property to the land/lease owners of the island. Act as leaseholder/landlord of all public, municipal and commercial/industrial property. Sell agricultural land to farming enterprises under the rules established by the Board or Directors and previous RedditIsland Steering Committee. It is most likely that the company will initially construct and manage agriculture operations on the island until suitable farming enterprises can take over the land and operations. Provide initial financial and wealth protective services necessary to ensure the island populace has access to the free flow of their financial holdings and currency for free trade and commerce. It is possible this will be a negotiated agreement with host nation banking services or contracted to a private enterprise as the Board of Directors so decides. Provide import/export duties as necessary to support the needs of the island members through the port operations until such time that this can be sold to private enterprise(s) seeking to satisfy this service to the island public. Act as travel agent and booking agent for timeshare members who wish to visit the island under the rules established in the company operating agreement and membership agreement.
Act as a legal entity to protect the interests of its members and island inhabitants in issues that arise between the members and the host nation government institutions. Manage the day to day operations of island activities under the companys purview. Work toward the long term success of the island, its economy and the general well being of its membership. Transparency and Communication Towards Fulfillment of Services Trust is a central tenet for the success of the island and with the construction of the membership through crown-sourcing and internet based social media, it is very important that transparency be paramount to ensure this trust. As such, the company and its staff will post, when feasible, all documents and details of operations on line within the RedditIsland Community, or when necessary to protect the privacy of the RedditIsland membership or the company, post the information to a private area of the RedditIsland.com website and through email communications. As such, Trinidad commits to providing the Redditsiland Steering Committee with all such information at their request as allowed to be disclosed under public information rules. When the membership of the RedditIsland community is transferred to the membership of Trinidad, each member will have access to all company information, both public and private, allowed under the rules of the membership agreement. Technology As much as possible, Trinidad will use the available capabilities of internet resources and tools to inform, function and operate the company, the island and the services offered to the memberships. Where privacy and security play a role in protecting information, the company will employ private networks and private computer system to support this need. It is likely that this service will be provided though cloud based providers such as Amazon or Google but within a protective secure enclave on the internet. Members of the Redditisland community who have committed financial support to the pursuit of the island will have access to more secure information that is deemed important to the company operations and community needs. When the members of RedditIsland become members of Trinidad , they will have full secure access to all business operations and services provided through internet and network/cloud based providers.
Country Analysis & Survey

Overview of Process Selecting a country is an involved and difficult process because of competing desires on the part of the RedditIsland Community and the complexity of foreign investment and business laws within the different countries. The steps needed to be performed to determine the best country for the selection of an island are listed in the following sections. Considerations for Immigration Since the long term goal of any member of RedditIsland is to eventually live on the island permanently, immigration to the host country plays a major deciding factor in which country is chosen. It makes no since to locate to an island in which certain nationalities of the RedditIsland Community will have trouble immigrating or be required to pay substantial financial fees to make that a reality. As such our goal in island selection is to find countries with the easiest and least expensive fees associated with visas and immigration. So far a number of countries have been ruled out for exactly this reason. As members review the decisions determined during this process, they need to keep immigration rules in their mind Considerations for Foreign Business Operations Business operations and foreign investment also play a major role in country selection. If the rules of the host nation prevent the average islander from being able to start a business or if the rules make it very difficult for Trinidad to conduct business in that country, then it is not in our interest to make that selection. Business and Foreign investment rules are very extensive and complex within the host nations, so choosing those that make our ability to operate easy is the first choice. Other Factors Pertaining to Consideration Other factors that pertain to the selection of a host nation for the island are taxation rules or incentives, health concerns, size of available islands, climate, freehold/leasehold ownership and geology. All of these effect the overall value of a host nation and become a part of the score for making a selection. The section below covers the details of the island selection process and will eventually contain the final vote of the host nation selected.
Country Review A number of member of the RedditIsland Community performed a series of reviews for certain nations based on the factors above and provided details of that analysis. The results is the chart below that shows the status of the most popular and best rated nations. But before the chart is detailed, it should be noted that a number of other countries were reviewed and failed to make the cut because of the consideration listed above. The table below details the country and general reason for being excluded from review.
COUNTRY
Belize Canada Europe Greece
Middle East India Myanmar Thailand Indonesia Papau New Ginuea Solomon Islands Marshall Islands Kiribati and other Micro Nations French Polynesia Maldives, Seychelles
REASON
Size of Islands Climate and Land Locked Islands Taxation, Government, Cost, Size of Islands Current Government Turmoil, Island Resources
Size, Political and Terror Concerns Foreign Ownership Issues, Cost, Size Government, Terror, Foreign Investment Issues, Immigration COST!!! Most expensive in the world Foreign Ownership, Business Rules, Terror, Immigration Land Ownership, Business Rules Land Ownership, Immigration Size Size Cost, Immigration to France not F.P. Size
Most Central America Most South America Most of Africa Madagascar Most of Caribbean
Size, Cost Size, Land Locked, Business Rules Terror, Corruption, Business Rules, Foreign Investment, Land Locked, Size Land Ownership Size, Cost
Note: there are other islands that represent a possible choice but have not been reviewed at this time. They are New Caledonia, Viet Nam, Turkey, and South Korea The Following chart shows the major countries and the assessment of their review. The overall data can be found at the RedditIsland Community site and in the side bar.
COUNTRY
Panama
PROS
Modern Country Foreign Investment Access to Healthcare Infrastructure Trade
CONS
Immigration Business Formation Immigration Foreign Investment Business Formation land Ownership Immigration Business Formation Government Turmoil Income Taxes
SCORE
65
Philippines
50
Brazil
Modern Country Infrastructure Foreign Investment Tax Incentives Foreign Investment Business Formation Land Ownership Healthcare Tax Incentive Foreign Investment Business Formation Healthcare
65
Fiji
85
Vanuatu
land Ownership
90
Infrastructure Trade Chile Tax incentives Foreign Investments Business Formations Healthcare Infrastructure Trade Land Ownership Climate Income Taxes Climate 85
Papua New Guinea
Business Formation land Ownership Foreign Investment Healthcare Immigration Immigration Costs Healthcare
Ruled Out
Bahamas
Climate Foreign Investment Business Formation Tax Incentive Taxation
75
Note: As it stands, Fiji, Vanuatu and Chile are the main countries of interests. The initial mandates of the RedditIsland Community was a tropical island of which Chile is not. But a significant amount of RedditIsland members have suggested this as an area of interest and at such time a vote will be necessary to decide if non tropical islands are to be considered. Next Steps The next step in the process is to finish the other islands for consideration and conduct a vote on the final country for the host nation. In helping with that process, Trinidad has engaged with real estate brokers in the top three countries to gather additional subjective and objective information on the countries and their particular nuances and proclivities of which we are not aware.
Island Analysis
Overview of Process Making the selection of an island is an involved process. Beyond just the country concerns as reviewed above, we need to consider many factors about the island itself; does it have terrain that can be worked, good soil composition, a place for port and dock activities, height to offer protection and so on. All of this relates, not just to the selection of the island but the long term success of the community as well. Location Considerations Generally speaking, it is the intent of the community to be left alone. So to obtain that goal it is usually important that the island has some amount of distance from other neighboring islands or at least from civilization that may encroach on our activities and livelihoods. The best location would be a minimum of 100 hundred miles from any major metropolitan area or major city in the host nation. This affords us less attention, especially from the military or police institutions of the host nation. Granted distance does cause problems for shipping, import/export, travel and health care but these can be satisfied on the island to some extent and the extra burden of travel time and cost is not sufficient to be more centrally located. Geological Considerations In the process of building the island infrastructure, we need to understand how easy it will be for laying deep foundations where needed, dredging irrigation and drainage channels, road construction and the availability of top soil or rock for agriculture and building materials. It is obvious we dont wish to live in a swamp or on an island that has no water aquifers or other resources. So geology plays an important role in the selection. The good news is that most islands that are for sale have some level of analysis already done. This will play into our decision and the price we pay for the island. Analysis of Island Size Size is also a major factor. It should not be our intent to live in a dense urban setting right from the beginning of the island, so the larger the better based on what we can afford. Size plays such a role in the long term success of the island that if we should find the right island at a price higher than the money currently raised, we should consider financing the remainder of the money.
Besides residential areas, agriculture is the second largest concern for the island. Based on the American standard diet including livestock, it would not be possible to buy any island and support a reasonably large community. As such we have to consider a number of option for the island. A lesser diet is the first part of the solution. This would mean more fish and chicken as meat sources while cow would have to be imported. Food production and farming will also have to change, increasing the yield per acre significantly if we are to have a sustainable community. We will look toward new growing techniques, such as vertical farming with hydroponics and aquaponics to sustain our growth. Zoning becomes and issue as most host nations require a zoning plan for sub- dividing the island into subleases or freehold lots. We have to consider space for such things as Parks and Recreation, Municipal facilities and infrastructure, Power, Industrial Operations, Commercial Space, Resort and Tour locations, as well as other large facilities that may be implemented in the future. Other Factors Pertaining to Island Selection Obviously vegetation and fauna must be considered. This affords us protection from damaging winds during cyclones, shade and building material but we also have to consider if there are restriction on the use due to host nation rules and regulations. This is a serious concern for example in Panama. Greece has been suggested a few times by members but islands that are available are very resource limited and water is scarce. Which bring up climate. Since islands tend to be small, the lack of retained water is always an issue. Running water is a major benefit to the island and as such we need to look for islands that have natural streams, rivers and/or lakes. Without these water sources, we need to consider the amount of rain fall so that we can build catchment facilities to retain water supplies. Most areas that are highly rated as of now have sufficient water resources to sustain the island for the long term. Cost Analysis of Currently Available Islands Having talked to the members of the RedditIsland Community, it is apparent that significant financial commitments from the majority of people are not likely. Therefore, our ability to purchase the island is depended on a cost model that fits with the reaches of most RedditIsland members. Based on this, we have determined that the price point of an island we seek is in the $4,000 to $7,500 per acre range. Obviously, and island significantly cheaper than that price is to our liking but we will have a difficult time trying to procure an island that is considerably more than the $7,500 price point. Part of this is due to the fact that the amount of people involved with raising funds will not be purchasing just the parts of the island in which they plan to live, but the entire island, including all of
the reserved space needed for sustainability and operations. So the cost per acre for a residential location is considerably higher than the target price per acre. As an example, an island with a price per acre of $5,000 to purchase would have a price point near $10,000 to $15,000 for that same acre from a residential point of view. So the members of RedditIsland must consider that actual residential price when looking to pledge funds for this project and the suspected land on which they plan to live. Part of the cost for the island should come from other sources as well, such as the sale of land for resort and tour operations or commercial area leases. We also intent to take every advantage afforded us from the host nation and world political entities, to seek incentives, discounts, and investments for building out the infrastructure of the island. As an example, Fiji offers money to help spread the internet to outer islands of the nation. Since we are doing that, we can seek that money to support our purchase. The UN has many programs that offer financial commitments and financing when people bring capabilities such as education, health care and farming technology to subsistence areas of the world. Most anywhere we seek to go qualifies as subsistence living and we can take advantage of these programs to help finance the island. Financing the island is an option as well but one we have to consider carefully. Should we find and island that meets our needs but beyond our own financing, most host nation banks will loan money depending on the type of operations that are going to be brought to the island. With the amount of people projected to move to the island and the benefit to the host nation in the form of educated talent and tax revenue, loans with be easy to obtain. But financing the island would mean that the members of Trinidad would have to agree to a mortgage payment and have some means of revenue generation to sustain that payment. If not then, the members would have to agree to fund the mortgage payments as additional investments in Trinidad. However, this is not as financially distressful as one might think. Assuming the island we are looking at cost $10,000,000 and we have only raised $3,000,000, we must reserve at a minimum $1,000,000 for island infrastructure and build out. This means only $2,000,000 for the actual purchase and financing the other $8,000,000. At the current market rates, this works out to roughly $25 to $100 per member per month depending on the number of members and financing arrangements. An average monthly commitment of $50 is well within most any members financial capabilities. Below is a chart of common islands that have been looked at around the world and within the three main areas in which we are concentrating. The price per acre is shown for comparisons:
ISLAND
Isla San Pedro Water Cay
COUNTRY
Chile Belize
PRICE
$ 12,000,000 $ 10,000,000
ACRES
16,000 511
PER ACRE
$ 750.00 $ 19,569.47
Great Hans Lollik Little Amorgas Inapupan island Strangers Cay Twin Beach Island Pilotin Island Kanacea Island Mangunca Island Ongea Ndriti Mango Island Isla Quilan
Virgin Islands Greece Philippines Bahamas Philippines Vanuatu Fiji Brazil Fiji Fiji Chile
$ 24,500,000 $ 7,800,000 $ 5,000,000 $ 3,000,000 $ 2,500,000 $ 1,100,000 $ 18,000,000 $ 3,000,000 $ 6,500,000 $ 15,000,000 $ 4,500,000
510 494 248 360 215 335 3,085 3,700 1,240 5,400 3,900
$ 48,039.22 $ 15,789.47 $ 20,161.29 $ 8,333.33 $ 11,627.91 $ 3,283.58 $ 5,834.68 $ 810.81 $ 5,241.94 $ 2,777.78 $ 1,153.84
Note: you can see that the price can vary widely within the same country. Next Steps Once the host nation is determined, Trinidad will engage the real estate broker in that country to locate islands that meet our requirements. Trinidad will work with the real estate broker to collect as much information as possible on the island and its condition. We will down select to one or two and then have a survey of the island done by the brokers to get an clearer assessment of the island in the form of pictures and videos of key areas. If necessary, Trinidad personnel and members of the Board may visit the island before a final decision is made. Once the island is decided, then we begin the transfer of pledge funds to Trinidad for the purpose of purchasing the island.
Strategy & Implementation

Overview The successful implementation of the RedditIsland project is highly dependent on a thoroughly thought out plan. The following section covers the general scope of the plans that need to be implemented during this project. As the project moves forward, the details described here will be expanded and managed in actual project plans by managers assigned to that responsibility. Pre-Purchase Plan Fundraising After having numerous discussions with organizations that can provide fund raising service, such as escrow and sites like Kickstarted, it was decided that our most likely scenario we could use was the Pledge system. Trust between the members of the online community is of paramount importance to the success of this project so we must use a method that ensures the members are not open to fraud or a scam depriving them of their deposits. The Pledge system allows the members to maintain their money in their hands. However, this in itself could lead to reverse fraud in that members could falsify the money they have actually committed. To eliminate that possibility, the Fundraising Instructions available online, detail how each member is to deposit their committed funds and how they are to properly report that deposit through a method that can be verified. Although the Fundraising Instructions cover the details for proving a members pledge, this document details how the pledge process will work to its conclusion. It is estimated that we will continue the pledge drive for the next 24 months or until such time that we have sufficient funds committed to make a purchase decision. It is also possible that the members can decide to continue the fundraising longer than 2 years at their discretion and vote. The process will follow these steps: Funds are committed to the RedditIsland Project through the process described in the Fundraising Instructions and Trinidad Island Investments maintains the record of pledge balances Members at any time can removed their funds from the pledge and the pledge will be removed from the balance of accounts by Trinidad Members can continually add additional funds to their pledge balances at any time during the course of the fundraising campaign. Trinidad will record all new balances for the
members During the course of fundraising, expenses will be incurred and, as described in other parts of this document, members will be obliged to commit a small portion of their pledges to the approved expenses Once the funds are raised and a decision has been made on the island the project wishes to purchase, a call to the pledge members will go out that includes the membership agreement and operating agreement of Trinidad. Once members sign the agreements, it is expected that members will transfer their pledge balances to Trinidad accounts and become members of Trinidad Island Investments, LLC. RedditIsland members have the right to remove their funds from the pledge up until they agree to sign the Trinidad Agreements. At that time, there is a legally binding agreement between all parties to move forwards with the purchase. Corporate Formation At this point in time, Trinidad Island Investments is an LLC formed in the state of Virignia, USA. However, as we move towards the purchase of the island it will be necessary to move the company to the host nation. Reforming the company in this way offers a number of advantages that must be done to complete this project; 1) most host nations require a financial commitment to the country and a legal business entity must do that. Moving the company to the host nation allows us to count our purchase of the island towards investment in the country, 2) legal interaction and taxation are easier with the company located in the host nation instead of having to deal with foreign company rules and regulations, 3) it protects the members of the company from any legal recourse against the members within the host nation and 4) it allows the company to sell securities to members under the rules of the host nation and protect itself from legal recourse in the USA. As the company reforms in the host nation, it will transfer the RedditIsland Steering Committee to the Board of Directors for the first acting board prior to official election of officers. It will also expand its operational staff, as described in the Company Summary section of this document, to meet the demands of island operational needs and to have people with appropriate skills serve in positions that are beneficial to the islands success. The document that will describe this in detail is the Trinidad Operating Agreement that each member will sign as a part of becoming a member of Trinidad. The operating agreement covers such sections as; Capital Contributions and Allocation of Membership Shares The General Management of the Company Accounting and Finance Meetings and Voting Rules, as well as Dissolution
The main section of interest to the members of the RedditIsland Community is how the long term management structure of the company will operate to ensure that a small group of people cannot conspire or collaborate to gain a controlling interest in the company. This is eliminated in two ways; 1. The creation of shares that have a limit to the investment that may be made for the purchase of those shares with a maximum allowable ownership of 1%. This will prevent one person from having any controlling interest in the shares of Trinidad. Should outside investors wish to participate in this project, they may do so through a direct investment in property associated with resort/tour operations or other industrial/commercial enterprise. These investments have no direct ownership in Trinidad. If an investor did wish to be an owner in Trinidad, then an additional class of shares would be issued to handle this situation, which limited the voting power of those shares similar in fashion to the class A shares. 2. The Board of Directors and General Manager are elected positions once the island is established and the operating agreement specifies a term limit for each position such that no person can maintain a long term role in a position of power. Each Board Member will serve a two year term with a maximum tenure of 6 years but with only 4 years in a consecutive fashion. The General Manager is elected from the Board of Directors and also serves a two year term with a maximum tenure of 6 years but with only 4 years in a consecutive fashion. Directors are re-elected in a round robin fashion such that the whole board cannot be removed in any one election, but gradually over the course of multiple elections. Consultants During the course of purchasing the island, it will be necessary to engage with consultants to effect the proper operation of the company as well as ensure the proper and most beneficial purchase of the island for the community. Trinidad will act as the focal point and legal representative of the RedditIsland Community when dealing with consultants, ensuring they complete tasks as assigned and are paid in accordance with the expenses defined in earlier parts of this document. Prior to purchase of the island the most notable consultants engaged by Trinidad will be Legal Council, Accounting, Real Estate services and Infrastructure Buildout within the host nation. It is also quite possible additional consulting services will be necessary in dealing with the intricate procedures of host nation government organizations and politicians. It must be understood by the members of the Redditisland Community that these types of interactions and costs associated with consultants is a necessary part of purchasing the island. Pioneer Selection and Steering Committee The establishment of the island is a very involved and arduous process requiring people of particular skill to help ensure the long term success. As we move toward the purchase of the island, many decisions will be made and a number of activities will have to be undertaken to effectively meet the needs of the community when actually arriving at the island. To facilitate
those decisions and processes, a group of people from the community that can guide the other less active members, is needed. These members are divided into two groups of which there will most likely be overlap in the immediate future. The Pioneer group is the active members of the community that have skills necessary to help plan the build out of the island and guide that process. The second group is the Steering Committee of the RedditIsland Community. The Steering Committee is governed by the Steering Committee charter as outlined on the RedditIsland subreddit at www.reddit.com. The Steering Committee rules will have to be amended to some extent in that the active participation of the Redditisland Community at this time does not allow for the selection of committee members based on the rules outlined. The suggested plan is to allow those active members who wish to serve on the committee to put their names forward and then allow the other members of the community to accept them as representatives or not. Voting however cannot be prolonged indefinitely awaiting the majority of the community to vote because that has not been seen to be practical. So a time limit will have to be put on the vote and whoever has voted during that time constitutes the vote for the Steering Committee members. As we move forward in this process, it will be the responsibility of Trinidad to interact with the elected Steering Committee, bringing results of studies, costs of consultants, approval of expenses and other necessary operational information to their attention for a decision. Pioneers are members who have committed to making their services available to the community and to Trinidad. They will be the first arrival members who will work to plan out the island and assist contractors with labor and/or managerial guidance. Pioneers have particular skills that benefit the initial stages of the island development and will work to help organize, build and procure the necessary equipment, supplies and services to arrival at the island upon purchase. The following skill sets are the most needed from a pioneering group: Legal Advice Civil Engineering (roads, bridges, piers, water retention, surveying) Agricultural Engineering ( hydroponics, aquaponics, hydrology, soil management) Geology ( soil analysis, rock stratus formation, geothermal analysis, etc.) Chemical Engineering ( mainly sanitation ) Energy ( Solar, Wind, Geothermal, Wave) Healthcare ( nurse, doctor, military medic) Project Management Politics ( dealing with host nation government regulations, guidelines) Communications ( Cellular, Satellite, WiFi) Sustainable Construction ( Housing, buildings, etc.) Secondary Skills Cooking/Fishing/Food Preperation General Labor
Pioneers are not elected since they are members who have elected to give up their current
endeavors in their host country and move on a temporary basis over long periods of time to the island to ensures its initial build out and construction. It is expected that where labor from the pioneers in being used in exchange for contracted labor, the pioneers will be considered employees of Trinidad and receive a stipend payment for their services during activities on the island. Infrastructure Build Out Prior to procurement of the island, Trinidad will engage with contractor services that will be necessary to satisfy the initial infrastructure build out of the island. The most notably contractors will be the Pier/Dock contractor, Communications contractor and Shipping contractor. These companies will most likely come from the host nation or another more capable nation closely located to the host nation. Prior to island purchase, Trinidad will formalize any agreements with the contractors and establish schedules for the completion of activities or the dates on which shipping containers need to arrive at the island. Trinidad and its staff are the primary managers of the contracted service providers and will ensure they meet the requirements we set forth for the island construction. Initial Arrival Teams The Pioneers will constitute the Initial Arrival Team(s). Prior to island purchase, Pioneers will conduct weekly meetings online to discuss logistics and other planning activities necessary to make land fall. Pioneers will have to work on temporary housing plans, camp locations, an evaluation of the island through geographical services and tools, building materials necessary to support operations on the island and procuring the necessary equipment needed to perform the duties covered in the Post-Purchase Strategy section. Housing will be the biggest issue when making out the arrival plan. Pioneers will select the best candidate for temporary housing ( such as Hexayurt, Shipping Pallets, Tents, Shipping Containers, etc) working to organize how the housing will be constructed as well as building test candidates for evaluation. Pioneers will also be planning out menu/diets and determining the availability of food supplies that are available in the host nation versus shipping supplies from the USA. Water management techniques and power delivery systems will also have to be evaluated and selected prior to island arrival. Logistic Plan This will be one of the most difficult activities that must be fulfilled prior to post-purchase operations. All material necessary for initial arrival on the island must be organized, purchased and delivered to a central shipping location such as the Port of Los Angeles or Long Beach. A member under the auspices of Trinidad will have to act as a go between at the port facilities to ensure we have the necessary shipping container storage and that material shipped to that location arrives correctly and is packed into the containers appropriately for finial delivery. We
will have to negotiation with shipping suppliers the cost to get the arrival equipment to the host country and then delivered to the island through a local shipping providers. Government/Land Owners Negotiations Not all islands in host nations are listed publicly for sale. Therefore is is of great interest to the project to engage a broker in the host nation with island sales experience. In many cases there are external factors that effect the ability to purchase an island as easy as it is to purchase a house. A broker who has experience with islands can help us to understand the nuances of the host nation and what issues will come up that effect our ability to make a purchase.
Negotiating with land owners is one of those particular issues. In most cases, islands are the property of not just a private owner, but the property of an entire tribe of people. Negotiations with the tribal elders and leader can be delicate and if handled improperly, can eliminate a potential property from consideration. In some instances, the tribe will demand a continued right to visit the island and or stay on the island at their discretion. In some cases they will demand the right to continue fishing in the surrounding waters or even have the right to plant crops on the island for their use. Through the broker we can understand what conditions are the most likely topics for negotiation and make a deal that is conducive to both parties. This is a particular part of the plan that we need to keep open ended at this time. There are extensive subsidies and tax incentives for bringing technology, health services, agriculture and education to indigenous populations, so we will consider these before beginning negotiations so that we can determine what conditions for purchase provide the best opportunity for government financial incentives. It should be noted also, that a number of UN programs provide financing and other financial incentives for helping islanders so we will have those programs evaluated and understood before beginning any negotiations. With regard to the government of the host nation, we offer both a plus and minus to their nation. We will evaluate which political parties and national leaders have the most similar views to our intentions as well as which ones have the greatest desires for foreign investment. Working with this select government officials, we can provide a large group of immigrants (potentially voters in a future elections) that can fulfill certain politically expedient opportunities for the government officials. These types of negotiation are important because a number of islands have restriction of industrialization, commercialization, or land ownership. If we provide a political advantage to certain government official, we can negotiation greater freedom fro host nation regulations, tax incentives or more importantly, access to island that previously may not have been considered for sale. Resort/Tour Operator Negotiations We are very lucky in that a member of the RedditIsland community has been operating a eco
tour company in Central America and can provide us with a level of experience necessary to properly negotiate an eco tour/resort contract. it is through this relationship , that we as a community, may decide to operate our own resort. However, the cost associated with that may be prohibitive and take away from our ability to properly build out the infrastructure of the island. So negotiations with operators that have this experience and design to establish a facility will most likely be required. We have to be careful in this effort since we must be at the point of owning the island or very close in negotiations to closing the deal before we start offering land opportunities to resort operator. We must also keep in mind that a resort operator will most likely require certain amenities be available on the island before they decide to come to terms on a location or parcel. So we must realize that a resort may be a more longer term effort and not a potential opportunity to raise funds for the initial purchase of the island. The good news in this is that most host nations we are looking at, want to greatly increase their vacation and tour travel commerce. They have organizations in direct contact with many tour/resort operators and can be very instrumental in supporting negotiations with these operators. So our initial efforts with regard to resort negotiations will be with the government entities that have that responsibility. Our ability to form a beneficial relationship with the government officials of this organization are instrumental to our success in gaining a resort for the island. Post-Purchase Plan Sub Contractor Selections A series of activities must happen first and foremost for the infrastructure of the island to be built out. Most notably, the construction of a Pier/Dock capable of supporting containerized shipping from ships in the 100 to 300 range. This will most likely be the single most expense cost as the island begins operations but is essential for any further buildout on the island. Once the island is purchases, Trinidad will immediately engage with Pier/Dock contractors to build the facilities on the Island. This will take some time to complete so as that is continuing, the Pioneer team will be making their arrangements for their arrival. It is also quite possible that Pioneers or other representative staff from Trinidad will have to make trips to the island to oversee the construction of the pier and ensure all requirements are being met before agreeing to the completion of the dock facilities. Any travel and expenses incurred during this process are covered by Trinidad. Based on communications with local contractors and estimates from other Internet resources, the cost of the pier/dock has a lot to do with the type of constructions used and the extent of its ability to handle off loading of container shipments. The cost of the concrete, rebar, and other building materials are a minor cost overall. The delivery of necessary material to the island and
the depth of the water where the pier/dock is installed have considerable impact to the cost. Assuming the water is less than 20 feet (enough to handle larger ship keel depths safely), pylon construction can be prohibitive due the need of mechanical driving equipment needed to sink pylons into the bedrock around the pier. Boulder piles and pre-cast concrete sections are good for acting as breakwaters as well a a dock. This is more likely what will be needed for the island. Based on available information, this construction can run $60 per square foot. Cost very widely in an island environment because the cost for travel to the island is expensive but the cost for labor and some supplies are cheaper. In all the price ranges from $50 to $80 per square foot. With a pier wide enough to support container delivery, cranes, docking control and length long enough or smaller container ships, the estimated cost is $227,500.00 Arrival Team Activities The initial arrival teams have a great deal of work to be done, prior to arrival and once on the island. Once shipping of the teams supplies is en-route, the team must make arrangements with the appropriate shipping services out of the host country to ensure the proper delivery of material to the island. Depending on the schedule for the dock/pier, it might be necessary to make arrangements with landing craft services so that the arrival team can make landing without a dock in place. First and foremost, it will be necessary for shelter, food and water to be setup. Initial needs for food will be shipped with the supplies, but it will be the job of the cooks and laborers on the arrival team to fish, hunt and scavenge appropriate food supplies on the island. This will ensure the longest possible supply of food beyond the initial supplies shipped in. There will most likely be very little contact with travel arrangements after landing so food is an important priority. Other laborers, along with a civil engineer, will have the responsibility of locating the on island, water sources determined from satellite imagery and environmental studies. Water retention building will be their priority and they will make arrangements for the delivery of water to the base camp through
gull / ditch construction. If this isnt possible, then laborers will have to ensure that water is gathered and supplied to the base camp as necessary until proper facilities can be constructed to support water delivery. Housing is the next priority. Arrival teams will most likely not remain on the island permanently due to the infrastructure build out that must occur, and therefore, will likely travel multiple times to the island. Permanent structures during this time are not desired since no assessment of the island for the infrastructure and the zoning will have been completed. Building a permanent structure just to tear it down again doesnt make sense. So housing for the arrival teams will be similar to refuge housing and other construction techniques that are being used to support damaged areas such as Haiti. The most likely candidates are: Hexayurts Shipping Pallet houses Collapsible Polyurethane Structures Industrial Tents.
Once housing, water and food are arranged, the arrival team will have a number of duties that need to be completed for the island. The arrival team will be broken into at least three groups; 1) geology/ecology to study the rock and fauna of the island and 2) two survey teams to lay out the zoning of residential, commercial, administrative, agricultural and industrial areas. Once the general layout is complete the teams can work on the residential plots. The results of this effort is to better understand the makeup of the island with regard to construction and sustainability, as well as provide the RedditIsland Community with the plots for houses so that selection of permanent residence can commence. The final sub-division of the island typically has to be approved by the host nation prior to allowing members the right to migrate. At the complete of this phase, it may be necessary to engage the use of contractor staff to start cutting roads, digging drainage, installing communication facilities and erecting power capabilities. If the arrival team can commit to this effort, we afford ourselves considerable savings but it may be necessary to engage additional arrival teams beyond the initial team if a greater level of expertise in needed to see this through. Either way, our plan is to maximize the talent of the RedditIsland Community and limit expenditures towards contractors where we can. Arrival teams will continue to work on the island as necessary until it reaches a basic level of capability. At that time, initial Pioneers and anyone else who desires to, can begin migrating to the island and establishing a permanent presence. Estimated cost for arrival teams listed below.
Item
Food Lodging Equipment Communications
Description
For 12 people for 3 months Based on Hexayurt ( most expensive) Necessary for Island Activities (some rented) Satellite Receiver and Comms Costs
Estimated Cost
$ 25,000 $ 6,000 $ 14,500 $ 20,000
TOTAL
Transportation and Shipping
$ 65,500
Transportation and shipping are actually the easiest arrangements that need to be made for island infrastructure build out and evaluation. Delivery of shipping containers to the home port of the host nation can easily be negotiated through a number of shipping websites that allow bidding on your delivery to a particular location. The average costs of shipping a standard 40 foot container to the three current locations are: Fiji Vanuatu Chile $3,280.00 $3,950.00 $2,940.00
It is estimated that two containers will be needed for the arrival team with the possibility of extending to an additional 20 foot container as well. Once the containers are delivered to the host nation, shipping to the island by way of landing ship will most likely be necessary. We will also have to arrange flights to the host nation and travel arrangement to the island. However, it is possible to travel to the island on the landing ship with the supplies. Obviously getting back off the island is necessary and there are many shipping and boat companies within the host nation that can provide this services. Based on estimates researched, the following costs area necessary for shipping and transportation:
Item
Flights Shipping Landing
Description
Cost for the Arrival Team (average) From USA to Host Nation (worse case) To the Island
Estimated Cost
$ 20,000 $ 10,000 $ 1,500
Return Travel
Boat charter to host nation port
$ 1,000
TOTAL
$ 32,500
Community Initiation Plan This process begins with the complete zoning and evaluation of the island by the arrival teams. The results is a occupation plan with residential plots laid out such that certain types of plots are located in different parts of the island, giving people the opportunity to form communities along whatever grouping people so choose. Prices for plots will vary slightly depending on location and accessibility to beach and commercial areas. The plot plan will be presented to the members of Trinidad and based on the First Come, First Serve model, we will begin assigning plots. Once plot selection is complete, it is at the discretion of the owners to decide their schedule for immigration. There area some key elements that are necessary for the community plan to be considered complete. We cannot build a first world infrastructure right form the start, but the basics must be in place. This includes a main road around the island, possibly minor sub roads but few if any, basic water retention in the form of a lake/pond with water treatment, basic power capabilities for operational services, an operations building for housing and managing island services, basic communications capabilities with internet access sufficient to support audio communications (i.e., Skype), and a general store for supplies and ordering needed items. Equipment necessary for this work will be purchased at auction to reduce the price and limit cost associated with long term leases of similar newer equipment. For example, a bulldozer can be purchased for $9,000. It is estimated that basic build out will take roughly 6 months using Pioneers and arrival team personnel. Contracting will be expensive so as much as we can use our own people saves considerable money. The cost for the basic services are reflected below: Roads: Based on a 1,000 acre example island and building a road equivalent in quality to a Forest Road would cost an estimated $97,000 to encircle the island. A paved road from the Dock to a resort within one mile of the Dock would run an estimated $175,000 Water: In most cases water will be handled by local retention at the residence or commercial location. For emergency needs, and until water systems can be built at the local level, a small retaining lake about the size of a standard swimming pool (11,000 to 20,000 gallons) will be built. The estimate cost is about $25,000. Water filtration is also needed. A system capable of delivering the needs of 100 people per day is around $5,000. Power: The most likely candidate is wind and solar. Wind however is a better deal since most
islands have a sustained wind speed greater that 10mph which is ideal for power generation. Again, for residential use, it is expected that power will be a local issue and a distributed system throughout the island is unlikely. To support basic operations and provide for emergency power should it be needed, a 50kW turbine(s) is more than necessary for initial use. Costs range from $55,000 to over $100,000. One system that was researched can provide the required power at $65,000. Communications: Satellite communications is our only real choice in this regard. The chance that services will be locally available to the island are next to nothing. Services to the island will be provided by inflatable satellite receivers with communications contracts for 2 - 10 Mb/s internet connectivity. This communications would have to be shared until more bandwidth could be purchased. The satellite receiver and necessary equipment to support its operations is $50,000 with a 10Mb/s contract running close to $2,000 per month. People who live on the island will eventually have to pay for this service and cover the cost of the monthly fees. But for the first year Trinidad will cover the cost as a part of the funds raised. $75,000 is estimated for this service. Operational Facilities: Many options exist to support basic operations for power, water filtration, island management and storage of equipment and supplies. A likely candidate is the Monolithic inflatable, blow concrete domes. A 40ft diameter shell costs about $55,000 - $70,000. A 40 ft dome allows for 2 stories and almost 2,000 square ft of office, storage and operations area. These basic infrastructure capabilities should make it possible for pioneers to start arriving at the island. Once this happens, the initial community can determine areas for improvement and direct where resources go to make those improvements. If necessary, such as building out additional infrastructure capabilities for a resort, we can finance these construction costs and pay for them through the lease costs of the land for the resort. Supply Chain Management In the long run it is expected that people who come to the island will take the business opportunity to provide a capability that supplies material and other resources to the island that cannot be found, grown or made on the island itself. Until then, Trinidad will establish a basic general store capability on the island to stock basic necessities ( toilet paper, etc) and to negotiate delivery of items to the island from services located on the main host nation island(s). The cost of items will be a directly related to the cost for purchase and shipping of these items. It is the goal of the Trinidad store to manage the material and supplies that are needed and buy in bulk for a reduced cost. Technological tools capable of managing this process are available from the open source community and they will be employed to minimize costs. Overview of Post-Purchase island Costs The above sections have covered the basics of whats necessary to support the immigration to
the island by community members and to maintain a basic operational tempo on the island. The costs are listed below and represent a portion of the money collected during fund raising that must be reserved from the purchase price to cover the initial infrastructure build out.
Item
Contract Labor Dock Arrival Teams Shipping Community Pre-Purchase
Description
Cost for Contracted Labor and Labor expenses Construction Cost of a Pier Cost of supplies and material needed for Team Transportation of people and shipping or supplies Build out of island Infrastructure Legal, Accounting and negotiations
Estimated Price
$ 150,000 $ 227,500 $ 65,000 $ 32,500 $ 337,000 $ 50,000
TOTAL
$ 862,000
Long Term Plan Island Management After the residential plots have been assigned and a good portion of the community has moved, Trinidad will still be the owner of the remainder of the island. It will have to be decided by the members of Trinidad if the company is to remain the owner or sell off the land. For areas such as the resort, commercial and industrial, it is feasible that this land could be sold to those people and organizations wishing to start businesses in the respective areas. Or it is possible that the company can maintain the ownership and just lease the land to people who wish to build a business. In any case, certain areas of the island will always remain under the control of the company such as public land for recreation and parks, administrative land for municipal facilities and right of ways dealing with drainage, roads, communications, power and water, the port facilities and operations, and any lands held in reserve for future zoning. A land manager, along with appropriate staff will maintain the land and pay for such services from leases and other fees associated with the lands use. Dock costs for loading and unload, tariff administration on imports/exports, service fees for municipally controlled services like power, water, communications, and trash all represent examples of fees collected to help maintain the land.
Trinidad will also provide, at the direction of the membership, a level of security protection commensurate with the desires of the membership. The intent is to provide a service that engages with the membership and island inhabitants at the point where a problem arises. The security service will comply with the laws of the host nation and the common law practices of the island. Its job is not to patrol, surveil or interfere with the day to day activities of the island inhabitants, but to act as an arbiter of conflict. If such problems arise that require the need for official police involvement, the security service will escort the individual(s) to the nearest police facility instead of having the host nation police come to the island. Financial Management Banking is a part of any commerce and the island will be no different except that we do not have to follow the same models as used within other countries. At the discretion of the Board of Directors, financial services will be provided to the island, delivering a minimal level of service as not to interfere with other business opportunities on the island. The Financial Services goals are to ensure that people on the island have the means to exchange currency for host nation currency as needed when travelling to and from the island and to provide a secure means of protecting the personal wealths of the island inhabitants in a non-fractional banking institution that ensures each unit of currency is maintained and available at the inhabitants discretion. Beyond that, the Financial Service of the island are there to help promote currency exchange between differing monetary models that become adapted to the island economy. The Financial Services of Trinidad are not there to promote any one monetary model. Should the Board of Directors decide to forgo a currency exchange based on the host nation currency, the Financial Services will look to provide the protection of inhabitants financial resources through other means such as precious metals or some other currency that is chosen as the reference of exchange. This would include digital currency as an option as well. Government Formation Although the vast majority of the RedditIsland Community members have reservations about what is the most appropriate form of government, in the long run, it may still be the desire on the part of the inhabitants to form a government entity. As stated before in this document, Trinidad is the de facto governing entity of the island being the majority property owner of public and reserved land and as the legal entity acting as representative to the remainder of the land owners of the island. But the membership of Trinidad, in accordance with the Board of Directors, may decide to discontinue the companys administrative role in managing the island. Should this be the case, an orderly plan for the transfer of property to the ownership of a new political entity created by the inhabitants of the island will be arranged through legal council and in accordance with the laws of the host nation.
Methods of Profit Generation As Trinidad manages the public trust of the island property and services, its goal as a corporate entity is to generate a profit for the benefit of its membership. This will be a slow process as considerable funds must be expended early in the life of the island making a profit potential difficult to obtain. However, over time, a number of areas for the realization of profit exist: Tariff and service fees from Dock operations Service fees from park and recreation property The sale of reserved land for residential plots The collection of lease fees associated with commercial and industrial property The collection of fees associated with infrastructure services such as water, sewer, trash collection and power. A nominal sales tax
Financial Plan
Costs and Expenses Prior to Purchase It is the intent of Trinidad to minimize all costs prior to island purchase or island selection. But it must be realized by the members of the RedditIsland Community that costs will have to be incurred to ensure this procurement goes through successfully. Also there will be expenses associated with the final formation of the company within the host nation and the legal council fees necessary to effect that change. Our goal is to involve the RedditIsland Community as much as possible in the decision process for approving expenses since the community will be the bearer of these costs. This will mean small transfers of pledge amounts to the company to cover these expenses and transactions. We will set a goal of no more than 10% or the total pledge amount will be spent on expenses prior to the island purchase. In this way people can be assured that even if they decide not to continue with this effort, the most they could possible lose of their funds is 10%. It should be noted that these expenses are not a loss to those members who stay with the effort until the purchase of the island because all funds transferred to the company as expenses count towards their membership percentage in Trinidad. Failure to meet required and necessary expenses could endanger the success of the mission of the RedditIsland project. All members must understand this obligation if this project is to succeed in the long run. Transfer of Funds to Trinidad Island Investments Once we reach the point where we have selected the island and have agreed to make the purchase, all pledge amounts will be transferred to Trinidad Island Investments, LLC. Each member of the RedditIsland Community will become legally binding members of Trinidad as conferred on them through the signing of the Membership Agreement with Trinidad. No person will be asked to transfer their funds until such time that they have signed the Membership Agreement. At this time, the pledge amounts constitute a sale of securities to the members of RedditIsland and as such, must comply with all applicable laws within the nation in which it is formed. It is for this reason that we may switch the company from an American company to the host nation to avoid as many legal issues as possible associated with American laws and securities. This does not mean violating the law, only working within the legal framework of the laws established in the host nation. With the sale of any security, there is always risk and each and every member of Trinidad would need to understand this condition.
Part of this process will involved considerable legal fees and costs. These fees are considered part of what is described in the above section on expenses. The costs associated with this activity could reach as much as $30,000 USD if it is handled within the USA. If this is performed within the host nation, we can expect that this cost will be much cheaper. Important Assumptions Estimated expenses and use of funds assume that a portion of dock labor is performed by RedditIsland Community members. It also assumes that the Arrival Teams and initial Pioneers will take a leading role in the infrastructure build out. Some fees are worse case assumptions depending on the host nation that is chosen but reflects a top end cost that could be incurred depending on the country. Estimated Use of Funds The following chart is the estimated use of pre and post-purchase funds needed to ensure the island has basic capabilities to sustain an initial population.
Items
Legal Council Negotiations
Description
Pre-Purchase Corporate Formation Dealing with Government and Landowners
Estimated Cost
$40,000 $10,000 $25,000 $150,000 $65,500 $32,500 $150,000 $227,500 $337,000 $120,000
Island Assessment Environmental/Geospatial Analysis & Study Investment Fees Arrival Supplies Transportation Arrival Teams Dock / Pier Infrastructure Initial Supplies Depending on Country, a cost for foreign investment (worse case) Arrival team Supplies and Material Shipping and Transportation costs Arrival Team Assessment Expenses Contractor Cost for Dock Construction On Island initial Infrastructure Build out Seed, fertilizer, farming equipment, and general store supplies
TOTAL
$1,157,500
Projected Profit and Loss Statement Financial Documents will be posted in the Business Plan once we have decided on the island Other Financial Statements Financial Documents will be posted in the Business Plan once we have decided on the island

Trinidad Business Plan

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Trinidad Business Plan

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Business Plan for the Formation of the RedditIsland Investment Project

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