Chubbs Buzz Center - Richmond, VA

Youth Corporation, Inc. 

Chubbs Buzz Center Richmond 

Executive Summary

Youth Corporation, Inc. offers to build “Community HUBBS BUZZ” (Healthy and United: Building Better Societies) in destitute areas. It has developed a bi-partisan private-public partnership with government agencies, universities, non-profits and corporations. This comprehensive project will provide life skills coaching, entrepreneur mentorship, vocational training, apprenticeship, and job skills training for students. Vocational skills include construction, welding, Auto Cad, HVAC, electrician, automotive tech and plumbing. The students will receive this training while living at the residential facility located at 10 East Washington Street, Highland Springs, Virginia. Youth Corporation, Inc. plans to build Community HUBBS BUZZS in the locations where we are serving youth in the area of financial literacy, vocational training, mental health care and apprenticeship training in the areas barbering, cosmetology listed in distressed communities through the Opportunity Tax Zones. They will receive job training and entrepreneurship training and eventually obtain a building to build a trade school with incubator businesses across the nation.

The What

10 East Washington Street, Highland Springs, VA

8 bedrooms and 3 bathrooms, across 5,962 square feet, on 1.08 acres of land  

3146 Elm Drive, Mechanicsville, VA 

20 bedrooms and 10 bathrooms 6,080 square feet on .75 acres of land

Project Financing

Building and Land $860,000

Business and Inventory $175,000.00

Working Capital $125,000.00

Total $1,100,000.00

 

Schedule

Business and Property Acquisition: August 2020
Renovations and Instructor Onboarding: September 2020-December 2020
Begin State Contract: January 2021

Project Context

Youth Corporation, Inc 

Youth Corporation, Inc. partners with a diverse coalition of community leaders, including Bishop Leon Benjamin, State Director of Virginia for the Opportunity Tax Zone. Another partner is Alliance for Unitive and the AUJ school program — Richmond Model Restorative Justice (RMRJ) and the Community College Workforce Alliance. It fosters positive behavior, strengthens community and addresses today’s pressing issues of disconnection, racism, and the school –to-prison pipeline.

We will provide the following services in the Community HUBBS (Healthy and United: Building Better Societies) BUZZ:

• Restorative Justice

• Mental Health

• Music/Art

• Vocational training/Trades/ Industrial Manufacturing

• Housing

• Community Gardening

• Sports/Healthy Entertainment

• Financial Literacy/Investments

• Real Estate Development

• State Convention Center for the purpose of public held meetings with probation officers, law enforcers, lawyers and clients.

• Research Data System

The students will receive hands-on training from the following contractors:

• R.B. Contractors Inc.: Licensed class A Contractor

• RMT Construction & Development Group: Licensed Class-A

• Community College Workforce Alliance (CCWA)

• Wickenheiser LLC, Design - Build

Upon completion of the classes and hands on training, Youth Corporation, Inc and Community College Workforce Alliance will have a graduation and give the students certificates in their designated trades.

Marketability
The Target Market

Aged 17 1/2 and over

High School and College Students

High School and College Graduates

High School and College Drop-outs

Ex-juvenile and -adult Offenders

Current Small Business Owners (with ≤ 3 years’ experience, part-time and full-time)

Members of other non-profit organizations

Professionals

Market Size

Unemployment and underemployment rates among young graduates are improving but remain substantially higher than before the recession began (http://ww.epi.org/publication/the-class-of- 2015/May, 2015) and since the coronavirus epidemic the Virginia unemployment rate rose to 10.6 percent in April, 2020 while total nonfarm payroll employment fell by 383,400. https://www.bls.gov/eag/eag.va.htm

Youth Corporation, Inc.

For young college graduates, the unemployment rate is currently 7.2 percent (compared with 5.5 percent in 2007), and the underemployment rate is 14.9 percent (compared with 9.6 percent in 2007).

For young high school graduates, the unemployment rate is 19.5 percent (compared with 15.9 percent in 2007), and the underemployment rate is 37.0 percent (compared with 26.8 percent in 2007).

The obvious solution to this dilemma is the creation of jobs and, subsequently, creation of income among those who have a difficult time finding employment in which they are both, qualified and satisfied.

Business Model

Our business model that is structure for employment for the college graduates in their major, and to mentor and teach the middle school and high school students social and life skills as well as give businesses who participates positive publicity is unique. The uniqueness poises us to gain a great amount of the market share; Youth Corporation Benefit Corp is the only known in the Washington, D.C. Metropolitan area. We do not have any competition among our Business of Consortium at the non- traditional career center. Our only competition is from traditional employers and worker cooperatives in our region. However, this competition is only for standard employment of unemployed individuals.

Traditional corporations do not offer opportunities for true business ownership and wealth building, outside of the income incentives and fringe benefits that all employers offer. Youth Corporation, Inc. partners with course instructors, business mentors, and community stakeholders to teach business and entrepreneurship to residents and members of our target market. Upon completion of their time in our courses and workshops, graduations will have gained a foundational knowledge of business, stock ownership in Youth Corporation, Inc. and access to the tools necessary to start or acquire a revenue generating business. 

 

Team

Elizabeth Charity – CEO and Founder

Elizabeth Charity founded the organization in 1992 as an advertising, publishing and investment company. Throughout its history, Youth Corporation, Inc. has produced television and radio ministries in the Richmond, Virginia and Northern Virginia areas. She has offered advertising during her segments to local businesses and religious organizations within the viewing area as a means to sponsor students who participate in the Youth Outreach Services 12 Week Job Readiness Mentor Program.

She has published three books through YCI – God’s Call Girl, With Christ the Sun Rose in My Life, and the Power to Obtain Wealth. Elizabeth Charity received a Bachelor of Individualized Studies Degree in Social Entrepreneurship from George Mason University in May 2015. She received an Associate of Science Degree in Business Administration from Strayed University in June 2012. Presently, Mrs. Charity holds a 100 percent equity stake in Youth Corporation, Inc.

Her vision to restructure the company into a Benefit Corporation fueled by her strong desire to employ and empower the youth, college students, and the disadvantaged to become entrepreneurs, prosperous and productive members of society. She has empowered the youth and disadvantaged, through Youth Outreach Services for more than 20 years through the 12 Week Job Readiness Mentor Program, Job Training Program and personal mentorship of college students to create student body organizations for social change and entrepreneurship.

 

Rich Whiteside-President:
Is a graduate of the Naval Academy (’75). After graduation, he was selected for SEAL training and, after BUD/S Training, went on to command four SEAL Platoons. Between 1978 and 1982, he co-owned a recording studio. From 1984-1989, he owned Fiscal Fitness, a financial services company. Pursuing his ultimate dream to work in Hollywood, he moved from Maryland to Los Angeles in 1992. Since then, he's pursued the Hollywood business as a writer, an actor, and in production. He worked at Paramount Pictures and CBS/Paramount in Network Television Business Affairs and Network Television Legal.

As a writer, he's contributed story elements and story ideas to Quantum Leap, JAG and script consulting on dozens of feature scripts. Since 1982, he has periodically worked on government projects as an analyst and technical writer. He's authored two books: "The Screenwriting Life" through Berkeley Boulevard Books (Penguin Putnam’s trade paperback division) and "The Screenwriting Quick Start" (self-published), and penned over a dozen articles for Script magazine, most focusing on writing for television and production.

In pursuit of screenwriting, he completed three years in UCLA’s Advanced Professional Program in Screenwriting and has taken dozens of additional writing courses and consumed several dozen screenwriting books. Richard looks forward to offering his skills as a screenwriter to the RETV Program.

George Walton- Vice President
A Registered Patent Agent with a wealth of experience as an Intellectual Property (IP) and Technology Consultant/Advisor. Provide inventor counseling and training, patent assessment and analysis, and patent litigation support. Assist in establishing a patent technology culture. Perform various types of patent searches, draft and file patent applications, prosecute patent applications and file patent application amendments. Assist in IP strategies and the evaluation of patents for technology transfer and commercialization.

Assist in developing patent procedures and policies. Conduct patent interviews/communications with PTO patent examiners/personnel. Proficient and highly skilled in technological areas that deals with fluid systems and valve devices, piston devices, brake devices, internal combustion engine (ICE) devices, medical and bio-medical devices, clean/green and environmental devices, computer hardware devices, measuring and testing devices, dispensing devices, tools, amusement/sport devices and other mechanical and electro-mechanical devices. He is working with Youth Corporation, Inc. to help franchise the CHUBBS BUZZ (Community Health and United Building Better Societies) Business Mythology through-out the United States, then eventually through the world.
 

Lowell Tines - Social Media Secretary
Event Marketing · Marketing Consulting · Digital Marketing · Advertising ·
Email Marketing · Brand Marketing · Content Strategy · Content Marketing ·
Social Media Marketing

 

Ryan Thomas - Treasurer
Ryan serves as Treasurer of Youth Corporation, Inc. helping to ensure resources are properly allocated and planned for. Founder of Real Estate Investment and Development Company specializing in developing properties that are eligible for federal and state tax credits. Leveraging contacts made in the real estate finance industry with CBRE, we are able to build a capital stack using crowdfunded equity, government dollars, and institutional lenders to execute on various redevelopment projects generating above average returns for our investors
and stakeholders alike. 

 

Vanessa Maddox- Recording Secretary/Technical Director:
Employment Services, Social Media Education and Professional Development. I've run a free employment community on FB for the last 10 years, #Get Hired Employment Community. She co-founded a global women's community called The Girlfriend Group.

Investment Structure
Accepting investments

Investors will earn a 8% Preferred Return and 50% ownership in the project. 

10 year hold period

Proforma Financials
Revenue	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9	Year 10
1 bed	2,250,000.00	2,250,000	2,250,000	2,250,000	2,250,000	2,250,000	2,250,000	2,250,000	2,250,000	2,250,000
Vacancy Loss	-225,000	-225,000	-225,000	-225,000	-225,000	-225,000	-225,000	-225,000	-225,000	-225,000
Total	2,025,000	2,025,000	2,025,000	2,025,000	2,025,000	2,025,000	2,025,000	2,025,000	2,025,000	2,025,000
Expenses
Insurance	17,285	17,804	18,338	18,888	19,454	20,038	20,639	21,258	21,896	22,553
Taxes	7,500	7,725	7,957	8,195	8,441	8,695	8,955	9,224	9,501	9,786
Water	10,000	10,300	10,609	10,927	11,255	11,593	11,941	12,299	12,668	13,048
Electric	12,000	12,360	12,731	13,113	13,506	13,911	14,329	14,758	15,201	15,657
Capex Reserves	10,000	10,300	10,609	10,927	11,255	11,593	11,941	12,299	12,668	13,048
Repairs & Maintenance	12,500	12,875	13,261	13,659	14,069	14,491	14,296	15,373	15,835	16,310
Management Fee	202,500	202,500	202,500	202,500	202,500	202,500	202,500	202,500	202,500	202,500
Operating Expenses	625,000	643,750	663,203	682,954	703,443	724,546	746,283	768,671	791,731	815,483
Total	896,785	917,614	939,067	961,164	983,924	1,007,367	1,031,513	1,056,383	1,081,999	1,108,384
Annual NOI	1,128,215	1,107,386	1,085,933	1,063,836	1,041,076	1,017,633	993,487	968,617	943,001	916,616
Debt Service
First Mortgage P&I	32,209.30	32,209.30	32,209.30	32,209.30	32,209.30	32,209.30	32,209.30	32,209.30	32,209.30	32,209.30
Second Mortgage P&I	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total	32,209.30	32,209.30	32,209.30	32,209.30	32,209.30	32,209.30	32,209.30	32,209.30	32,209.30	32,209.30
DSCR	35.03	34.38	33.71	33.03	32.32	31.59	30.84	30.07	29.28	28.46
Cash Flow After Debt	1,096,005.70	1,075,177.15	1,053,723.75	1,031,626.74	1,008,866.82	985,424.10	961,278.10	936,407.73	910,791.24	884,406.25

 

Projected Investment Returns

Limited Partner (LP) Returns
Total LP Distributions		5,399,126
Total LP Contributions		1,070,000
Total LP Profit		4,329,126
LP IRR		69.43%
LP Equity Multiple		5.05x

Annual Cash on Cash Return of 45% average over 10 years
Monthly Dividend Payments to investors as cash flow allows

 

 

Renderings of Future Facilities