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2017-156-3261 - Next Level BasketballRESOLUTION NO. 2017-156-3261 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA. AUTHORIZING THE CITY MANAGER TO NEGOTIATE AN AGREEMENT WITH NEXT LEVEL BASKETBALL, LLC, FOR THE PURPOSE OF DEVELOPING A WORLD-CLASS SPORTS AND ENTERTAINMENT COMPLEX; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, in January of 2017, Next Level Basketball, LLC, presented a conceptual plan to the City to develop a World-Class Sports and Entertainment Complex on City-owned property located at 2775 NW 183rd Street, and WHEREAS, over the course of the year, staff has worked closely with the team to develop a preliminary site layout and architectural design, along with a potential development mix to include indoor sporting and tournament facilities, restaurant, retail and event open space complimented by a multi-level parking garage, and WHEREAS, staff is ready to move fonward with negotiations with Next Level Basketball, LLC, who will construct and develop the project, and requests authorization for the City Manager and City Attorney to negotiate a lease agreement/development agreement with Next Level Basketball, LLC, for this purpose, and WHEREAS, there is no fiscal impact at this time, if an agreement is successfully negotiated, it will be brought back to the City Council for approval in accordance with the City of Miami Gardens Charter, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA AS FOLLOWS: Section 1: ADOPTION OF REPRESENTATIONS: The foregoing Whereas paragraphs are hereby ratified and confirmed as being true, and the same are hereby made a specific part of this Resolution. Section 2: AUTHORIZATION: The City Council of the City of Miami Gardens hereby authorizes the City Manager to negotiate an agreement with Next Level Basketball, LLC, for the purpose of developing a world-class sports and entertainment complex. Section 3: EFFECTIVE DATE: This Resolution shall take effect immediately upon its final passage. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS AT ITS REGULAR MEETING HELD ON October 25, 2017. OLIVER GILBERT, III, MAYOR ATTEST: /) RONETTATAYLOF^MC, CITY CLERK PREPARED BY: SONJA KNIGHTON DICKENS, CITY ATTORNEY SPONSORED BY: CAMERON D. BENSON, CITY MANAGER Moved by: Seconded by: oAr.,v, VOTE: -I" D Mayor Oliver Gilbert, III ^ Vice Mayor Erhabor Ighodaro, Ph.D. Councilwoman Lisa C. Davis Councilman Rodney Harris uX Councilwoman Lillie Q. Odom iX Councilwoman Felicia Robinson Councilman David Williams Jr tX Yes)(No) Yes)(No) Yes)(No) Yes)(No) Yes)(No) Yes)(No) Yes)(No) RESOUTION NO. 2017-156-3261 City of Miami Gardens Agenda Cover Memo Council Meeting Date: October 25, 2017 Item Type: (Enter X in box) Resolution Ordinance Other X Fiscal Impact: (Enter X in box) Yes No Ordinance Reading: (Enter X in box) 1st Reading 2nd Reading X Public Hearing: (Enter X in box) Yes No Yes No Funding Source: N/A Advertising Requirement: (Enter X in box) Yes No X Contract/P.O. Required: (Enter X in box) Yes No RFP/RFQ/Bid #: N/A X Strategic Plan Related (Enter X in box) Yes No Strategic Plan Priority Area: Enhance Organizational Bus. & Economic Dev Public Safety Quality of Education Qual. of Life & City Image Communication Strategic Plan Obj./Strategy: (list the specific objective/strategy this item will address) X Sponsor Name Cameron D. Benson, City Manager Department: City Manager’s Office Short Title: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, AUTHORIZING THE CITY MANAGER TO NEGOTIATE AN AGREEMENT WITH NEXT LEVEL BASKETBALL, LLC, FOR THE PURPOSE OF DEVELOPING A WORLD-CLASS SPORTS AND ENTERTAINMENT COMPLEX; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING FOR AN EFFECTIVE DATE. Staff Summary: In January of 2017, Next Level Basketball, LLC presented a conceptual plan to the City to develop a world-class sports and entertainment complex on City-owned property located at 2775 NW 183rd Street. Over the course of the year, staff has worked closely with the team to develop a preliminary site layout and architectural design, along with a potential development mix to include indoor sporting and tournament facilities, restaurant, retail and event open space complimented by a multi-level parking garage. Staff is ready to move forward with negotiations with Next Level Basketball, LLC who will construct and develop the project, and requests authorization for the City Manager and City Attorney to negotiate a lease agreement/development agreement with Next Level Basketball, LLC for this purpose. Agenda Item K-5 Next Level Basketbll STOQ & Associates (Next Level Basketball) 18605 NW 27 Avenue Lease Agreement/Development Agreement Miami Gardens, Florida 33056 There is no fiscal impact at this time; if an agreement is successfully negotiated, it will be brought back to the City Council for approval in accordance with the City of Miami Gardens Charter. Proposed Action: That the City Council approves the attached Resolution. Attachment:  Preliminary Design 21 Company Analysis Next Level Basketball Overview Next Level Basketball, LLC (also referred to as ‘NLB’ and ‘the Company’) is a highly-touted operational basketball training business that is developing a state-of-the-art multi-purpose athletic and commercial retail facility within the greater Miami area. Next Level Basketball launched in 2013, offering high-end and private 1-on-1 training for athletes with lofty basketball aspirations. Over a relatively brief period of time, NLB has grown to offer quality group training to go along with club basketball opportunities and personal fitness training. These services are currently run out of a 3,000-square foot gym and have earned the Company a fantastic reputation among local athletes. Next Level Basketball is now prepared to expand once again into a truly unique inclusion to the local athletic world. The Company, led by widely-respected and recognized basketball trainers Jonathan Ramos, Andrey Parsegov, and Serg Arzanov Next Level Basketball seeks to develop a 60,000 to 80,000 square foot multi-purpose facility that will make NLB the center of the South Florida basketball world. More so than just a facility that will allow for the further expansion of Next Level Basketball’s training efforts, the Company is embarking on a development project with the creation of a vibrant retail base, housed in the very same campus. 12 retail units, offering relevant athletic / basketball products and services can be housed right next to numerous basketball courts that will be packed with athletes daily. Other retail opportunities include food service, sports stores, health-related facilities, and more. The creation of a 400-car garage will allow facility visitors to celebrate important sporting events and allow them not to worry about finding affordable parking or delicious food options. Overall, Next Level Basketball wants to create a centralized hub for athletes along with their friends and family who can have all their needs met in one central location. Next Level Basketball will lead the effort in constructing this unique facility, but once developed, the Company will seek out quality management partners who will run their respective areas of the facility. NLB will be able to focus on what it does best, providing the best basketball training in the area. NLB will continue to strengthen its brand by not only providing fantastic basketball training services, but by also becoming a key fixture within the South Florida athletic community. NLB is seeking $30 million dollars in order to develop and sufficiently market this exciting and unique venture. Market Opportunity Next Level Basketball has a fantastic market opportunity. There are no competitors that offer the same combination of training acumen and facilities in the Miami area. NLB will stand out as a supplier of great COMPANY NAME Next Level Basketball, LLC WEBSITE www.SouthFlorida BasketballTraining .com FOUNDED 2013 CURRENT HEADQUARTERS 3859 Pembroke Rd. Hollywood, FL 33021 MANAGEMENT Jonathan Ramos Serg Arzanov Andrey Parsegov OFFERINGS - Multi-Purpose Facility - Commercial Retail Center - 400 Spot Parking Garage CAPITAL REQUIREMENTS $40,000,000 PARSEGOV, ANDREY /0E6742 /GA069 3 athletic training, but also as an interesting and entertaining spot. Highlighted below are just some of the market factors that will lead to NLB’s sustained success with this venture: ▪ Increased Sports Participation: Over the next five years, the percentage of Americans who participate in sports is expected to rise from 19.6% in 2016 to 21.4% in 2021, thereby increasing demand for sports training. The more people who even just casually play sports greatly increases the potential market for places like NLB. Individual’s natural competitive streak will cause them to seek out advantages amongst their peers in order to excel in their chosen sport. Quality training that is worth the financial investment will always be valued and sought after. ▪ Popularity of Basketball: Basketball is an incredibly popular sport in the US. The National Sporting Goods Association (NSGA) estimates that in 2015, 26.1 million people played basketball more than once. Basketball is a well-respected and culturally relevant sport that sees substantial fame and notoriety placed on its greatest professional players. The draw to want to be the best or make it to the NBA is a driving force behind many who will utilize training services. For both men and women, the popularity of college and professional basketball teams will present continued interest, and the hope of refining their skills to the level of earning scholarships or other types of athletic opportunities. ▪ Success within Commercial Leasing: Revenue for the Commercial Leasing industry is expected to continue increasing through 2017, with revenue estimated to grow 1.3% over the year. Over the five years to 2021, industry operators will benefit from improvements in the global economy as unemployment continues to decline and the need for real estate space begins to increase. After several years in the wake of the great recession, the commercial leasing industry has gone on its path of recovery. The quality, convenience and excitement offer by an interesting new project will be enticing to the local community. ▪ Need to Combat Obesity: The number of US residents who are obese is increasing dramatically. According to surveys by the US Center for Disease Control and Prevention, obesity has increased greatly among adults. The surveys show that among adults aged 20 to 74, the prevalence of obesity rose from 15.1% in the late 1970s to 34.1% from 2003 to 2006 and again to 35.7% from 2009 to 2012. There has been increasing attention spent on the national obesity problem. Organizations that focus on diet and exercise and that present a healthy lifestyle do not only benefit from increased notoriety within modern society, they also potentially benefit from government funding and donations. PARSEGOV, ANDREY /0E6742 /GA069 4 Concept Overview The state-of-the-art Next Level Basketball facility will contain eight pristine indoor basketball courts, one of which will be an Olympics/NBA style training court. Upon entering the courts on any given day, visitors will be greeted with the sounds of athletes running up and down the court, either for open gym sessions, special group training, or league / tournament games. The high-quality basketball courts that NLB offers will make it a destination site for holding club level, AAU, and USBA games and events. Tournaments will be held over the weekend and focused scheduling will allow the Company to offer their own youth and adult leagues/tournaments in the midst of other special rental occasions. The maintenance of their basketball courts will allow the Company to rent them out and receive additional sources of revenue. Moving beyond the courts, the NLB athletic facility will also contain a welcoming front desk area where visitors will be greeted before being introduced to the courts and additional fitness training areas like a weight room and turf room for specialized training. Members of NLB not only get access to specialized training and basketball leagues, but also top-of-the- line exercise materials for an even greater overall experience. And after a long workout, NLB visitors will be able to relax at a lively sports bar located in the neighboring facility. Although, let’s say that before a visitor heads onto the basketball courts, they want to do a quick round of shopping. They can go from one of NLB’s stores, buy a new pair of basketball shoes and shorts, lace up, and head down to the courts. Next Level Basketball’s goal is to become a one-stop-athletic-shop within the local community. In future expansion plans, the Company would even utilize its 400-car parking lot/garage to facilitate the creation of a designated parking lot which could in the near future have a joint partnership with the Hardrock stadium during stadium event days. PARSEGOV, ANDREY /0E6742 /GA069 5 Services The Company will offer several training services to complement and enhance the value of its athletic facility. Next Level Basketball management staff will oversee the day-to-day operations of the Basketball, Fitness Services, and Merchandise offerings while a property management company will be hired to manage the commercial retail units along with the parking lot. Value Proposition Next Level Basketball offers a multi-fold value proposition as showcased below. ▪ Multi-purpose facility: The NLB facility will contain 8 indoor basketball courts that are also compatible with volleyball allowing for sport flexibility. The planned facility will also contain numerous additional benefits like specialized weight/fitness areas and a turf room for increasingly diverse exercise options. As a standalone facility, just the athletic/sport focus would be of great value, but coupled together with dedicated retail areas, and the venture is even more intriguing. Visitors can go to the facility and have several needs met within the convenience of a singular location. ▪ Elite Training Plans: The Company was founded as a private basketball training business and has had the scope of its services steadily increase over time. However, the thing that made NLB so successful with its clients is a fantastic attention to detail on behalf of NLB’s trainers. They stress a firm grasp of the fundamentals and key foundational athletic ability. Clients who utilize NLB’s services will be prepared to tackle the higher levels of basketball, as evidenced by the Company’s track record of working with both former and current professional basketball players. ▪ Diversified Revenue Streams: Next Level Basketball, through the development and completion of this new facility, will gain additional sources of revenue. Diversification is incredibly important in today’s market. The flexibility and adaptability of multiple sources of revenue help to maintain a business’ survival. The Company will generate revenue through continuing its various training services, but additionally through subletting the use of various aspects of its new facility and parking garage. NLB has plans for multiple retail shops, a sports bar, and the ability for athletic areas to be rented out for different classes. Each of these prospects gives another way for NLB to make money. PARSEGOV, ANDREY /0E6742 /GA069 6 ▪ Unique Development: The combination of athletic facility and commercial retail facility has not been seen in the target area, and certainly not to the level that NLB is planning. The development plans truly have something for everyone. The uniqueness of the project will help generate plenty of organic marketing locally and can also have the potential to be looked at from different areas around the country, as well. Next Level Basketball will become a destination for locals who love the sport of basketball and who want to be immersed in an athletic environment. ▪ Positive Community Impact: A major component of NLB’s training and basketball offerings is dedicated towards a younger demographic. Individuals who come from at-risk neighborhoods and those who come from more well-off areas will all benefit from the discipline and respect that is stressed through NLB training. In this program, it isn’t only about becoming a superior basketball player, it’s about shaping young men and women to be positive role models. Working closely together with youth groups within the community will not only help make NLB an important fixture within the community, but also provide positive marketing and word of mouth recommendations for the Company. Construction – US CONSTRUCTION CORP. U.S Construction Corp. will take charge of the construction of its facility. Construction accounts for an estimated 43.2% of industry revenue. Companies in this service segment include general contractors (GCs) able to undertake development products including retail spaces, shopping malls, sporting arenas, and more. GCs typically assume all the responsibility for the project's completion, including hiring subcontractors and procuring materials. Most construction contracts are “design-bid- build,” an arrangement in which the property owner or developer hires the architect and then accepts bids from GCs to manage the build-out. During the past five years, however, “design-build” contracts, in which the GC and architect are the same entity, have become more popular. Commercial construction has experienced increasing service convergence, in which larger operators offer a variety of design, construction, consulting, and management services. PARSEGOV, ANDREY /0E6742 /GA069 7 U.S. Construction Corp. is a South Florida based, nationally recognized general contracting firm. For over 40 years we have delivered top quality projects on-time by consistently utilizing communication, team coordination, and preconstruction planning. We strive to provide our clients with superior levels of customer satisfaction, product quality, and aggressive scheduling. U.S. Construction Corp. specializes in complex facilities construction and commercial interiors including: Restaurants, Corporate Office, Retail Stores, Hospitality, Nightclubs, Aviation Facilities. We achieve reliable outcomes for our clients by consistently completing our projects on- time. This approach has helped us build our reputation as a trust-worthy contractor and has earned us a solid base of repeat clients repeat clients. We act as a partner to each project's owner and architect in order to achieve the common goal of successful project and timely completion. PRINCIPAL EXPERIENCE/DEVELOPER Rafael Reyes, President As President of U.S. Construction Corp., Mr. Reyes is in charge of overseeing and managing multiple complex projects as well as playing a key a decision-making role in the company. He has over 25 year’s experience in the construction of office, restaurant, retail, bank, healthcare, hospitality, and aviation facilities. These projects allow him to demonstrate his skills in value engineering, budgeting, project management, and contract administration. He holds a Florida Certified General Contractor’s License and has been continuously involved in the South Florida Commercial Construction Industry Since 1984. Construction, 43.2% Commercial Leasing, 19.8% Property & Asset Management, 13.8% Residential Leasing, 10.6% Sales & Brokerage, 7.1% Other Activities, 5.5% PARSEGOV, ANDREY /0E6742 /GA069 8 INTENDED ARCHITECTURAL REPRESENTATION BEHAR FONT & PARTNERS, P. A. IS A PROFESSIONAL ORGANIZATION DEDICATED TO THE PRACTICE OF ARCHITECTURE, PLANNING AND INTERIOR DESIGN. OUR PRINCIPALS HAVE A COMBINED TOTAL OF 68 YEARS OF ARCHITECTURAL EXPERIENCE AND, AS SUCH, HAVE SERVED AS ARCHITECTS AND DESIGNERS FOR A WIDE VARIETY OF PROJECT TYPES. THIS VARIED EXPERIENCE INCLUDES RETAIL FACILITIES FROM INDIVIDUAL STORES TO SHOPPING MALLS, RESIDENTIAL FACILITIES FROM SINGLE-FAMILY RESIDENCES TO MULTI-UNIT COMPLEXES, PROFESSIONAL OFFICE CENTERS, RELIGIOUS ARCHITECTURE, GOVERNMENTAL FACILITIES, EDUCATIONAL FACILITIES AND MULTI-USE COMPLEXES. CONFIDENT IN OUR ABILITY AND EXPERIENCE, WE CONTINUE TO DEDICATE OURSELVES TO THE DESIGN OF CREATIVE, FUNCTIONAL, FLEXIBLE AND EFFICIENT PROJECTS. BEHAR FONT & PARTNERS, P. A. OFFERS COMPLETE ARCHITECTURAL SERVICES ENCOMPASSING FEASIBILITY AND ZONING STUDIES, ESTABLISHMENT OF ENVIRONMENTAL PERFORMANCE STANDARDS, STRATEGIC GROWTH MANAGEMENT, LAND USE OBJECTIVES, ECONOMIC OBJECTIVES, PROGRAMMING, MASTER PLANNING, COST ESTIMATING, ARCHITECTURAL DESIGN, CONSTRUCTION DOCUMENT PREPARATION, SECURING OF LOCAL APPROVALS/PERMITS, AS WELL AS CONTRACT AND CONSTRUCTION ADMINISTRATION. OUR INTERIOR DESIGN SERVICES RANGES FROM SPACE PLANNING TO FURNITURE AND EQUIPMENT PURCHASING. PARSEGOV, ANDREY /0E6742 /GA069 9 Aerial View Training Facility PARSEGOV, ANDREY /0E6742 /GA069 10 PARSEGOV, ANDREY /0E6742 /GA069 11 The Miami Gardens Drive/NW 27th Avenue property is located in City of Miami Gardens. The City centrally located in northern Miami-Dade County, is the county’s third largest city, with a population of 105,000 people living in about 30,000 households. Incorporated in 2003, as the County’s 33rd city and covering over 20 square miles of land, Miami Gardens is centrally located in the region. NW Miami Gardens Drive / NW 27th Avenue Property: 2775 NW 183rd Street, Miami Gardens, Florida 33056 SLACK, JOHNSTON & MAGENHEIMER, Inc. 7245 S.W. 87th Avenue, Suite 300, Miami, Florida 33173 Telephone (305) 670-2111 • Email: SJMIAMI@aol.com CITY OF MIAMI GARDENS PARSEGOV, ANDREY /0E6742 /GA069 12 Market Analysis Next Level Basketball will operate in multiple levels of markets, including the greater Miami area market and the local market around 2775 NW 183rd St, Miami Gardens, FL 33056. The Company will target basketball players of all ages, genders, and backgrounds, in order to capture the widest market share possible and to foster a sense of community. Miami Market Miami is one of the largest and most lucrative markets in the United States. The city of Miami is home to nearly 430,332 individuals, while the greater Miami metropolitan area is home to over 5 million (8th largest metropolitan area in the US). Within this larger market, NLB will directly service both Miami-Dade and Palm Beach counties in addition to visitors across the United States and even globally. Miami-Dade has a higher percentage of younger individuals compared to Florida and Palm Beach County; however, Palm Beach has a large population that the Company will aim on acquiring. In Miami-Dade County, the percentage of individuals between the ages of 18 to 44 is much greater than both Palm Beach County and the rest of Florida. Younger adults tend to have more disposable income and are more inclined to be active, all traits that benefit Next Level Basketball’s growth. Furthermore, younger children and adolescents will supply Next Level Basketball with players for its youth focused training programs and training sessions, of whom their parents will be target markets. FIGURE 1: MIAMI POPULATION STATISTICS (CLRSEARCH) Miami-Dade, FL Palm Beach, FL Florida Total Population 2,575,759 1,398,925 19,166,804 Median Age 38.8 44.1 41.40 Age 0 to 5 6.44% 6.02% 6.43% Age 6 to 11 6.62% 6.67% 6.85% Age 12 to 17 7.45% 7.14% 7.40% Age 18 to 24 10.50% 8.25% 9.50% Age 25 to 34 13.20% 10.92% 11.70% Age 35 to 44 15.16% 12.14% 12.59% PARSEGOV, ANDREY /0E6742 /GA069 13 Age 45 to 54 15.42% 14.35% 15.03% Age 55 to 64 11.26% 12.94% 13.16% Age 65 to 74 7.98% 10.73% 9.83% Age 75 to 84 4.32% 7.26% 5.33% Age 85+ 1.65% 3.58% 2.17% Palm Beach County has higher household incomes than Miami-Dade County and the rest of Florida, including a higher percentage of households with income over $200,000. Higher income levels contribute to more disposable income for individuals, which consequently leads to more spending on leisure or recreational activities offered by Next Level Basketball in its multi-purpose facility along wit its surrounding retail stores. TABLE 1: MIAMI INCOME STATISTICS (CLRSEARCH) Household Income Statistics Miami-Dade, FL Palm Beach, FL Florida Total Area Household Income $62,819,522,052 $47,028,611,742 $542,889,479,324 Median Household Income $48,675 $59,735 $52,924 Average Household Income $70,295 $85,196 $71,904 Per Capita Household Income $24,389 $35,063 $28,324 Income $200,000 and Over 5.17% 7.49% 4.66% PARSEGOV, ANDREY /0E6742 /GA069 14 2775 NW 183rd St, Miami Gardens Market Geographical Reference Area Market analysis has been calculated using data from Esri in a 5, 10, and 20-mile radius of NLB. The map below shows each radius based on these criteria. TABLE 2: 2775 NW 183RD ST, MIAMI GARDENS, FL 33056HOUSEHOLD SPENDING STATISTICS, 5, 10, 20 MILE SEGMENTATION 5 mile radius 10 mile radius 20 mile radius 2016 Retail Goods $2,424,317,276 $9,978,487,392 $24,202,266,149 2016 Apparel & Services $240,053,673 $986,192,712 $2,400,448,763 2016 Entertainment/Recreation $334,066,621 $1,376,059,817 $3,346,447,780 2016 Entertainment/Recreation - Fees & Admissions $66,669,149 $276,572,887 $678,249,132 2016 Membership Fees for Social/Recreation/Civic Clubs $21,565,225 $90,100,861 $221,787,783 2016 Fees for Participant Sports excluding Trips $10,716,847 $44,096,566 $107,544,446 PARSEGOV, ANDREY /0E6742 /GA069 15 2016 Admission to Sporting Events excluding Trips $5,894,370 $24,690,843 $60,890,445 2016 Fees for Recreational Lessons $14,255,449 $58,787,031 $143,761,286 Population Analysis There is a large population of the Company’s target market as they can enjoy the benefits of all the attractions NLB seeks to offer. TABLE 3: 2775 NW 183RD ST, MIAMI GARDENS, FL 33056HOUSEHOLD POPULATION STATISTICS, 5, 10, 20 MILE SEGMENTATION Population by Age 2 mile radius 4 mile radius 6 mile radius 2016 Total Population 30,898 89,442 172,889 2016 Total Population Age 0-4 32,247 96,989 190,837 2016 Total Population Age 5-9 32,419 99,810 196,633 2016 Total Population Age 10-14 32,843 101,325 199,324 2016 Total Population Age 15-19 33,148 101,067 200,211 2016 Total Population Age 20-24 36,109 109,850 225,567 2016 Total Population Age 25-29 38,857 117,026 250,413 2016 Total Population Age 30-34 35,638 110,986 241,443 2016 Total Population Age 35-39 32,568 106,146 228,260 2016 Total Population Age 40-44 32,742 111,523 238,067 2016 Total Population Age 45-49 32,484 114,327 244,078 2016 Total Population Age 50-54 33,309 118,807 252,079 2016 Total Population Age 55-59 30,819 110,198 232,811 2016 Total Population Age 60-64 26,288 95,291 202,303 2016 Total Population Age 65-69 21,692 80,812 173,649 2016 Total Population Age 70-74 15,747 62,221 135,887 2016 Total Population Age 75-79 11,334 46,880 102,139 PARSEGOV, ANDREY /0E6742 /GA069 16 2016 Total Population Age 80-84 7,370 33,285 73,196 2016 Total Population Age 85+ 6,433 33,964 78,683 2016 Male Population 232,020 791,061 1,679,208 2016 Female Population 260,026 859,445 1,786,372 2016 Total Population Age 18+ 374,894 1,292,696 2,761,722 COMMUNITY OUTREACH NLB will serve the local community through outreach organizations such as Philanthro-Play Sports. Philanthro-Play is a nonprofit organization aimed at providing underprivileged children the opportunity to get involved in sports. They run a variety of fundraisers and sporting events that help to elevate the local community. The Company would easily be able to host charitable events on their premises that could provide tremendous benefit to organizations like Philanthro-Play, and subsequently the community as a whole, free of cost. CELEBRITY SPONSORSHIP Next Level Basketball will utilize celebrity contacts in order to appeal to all levels of competition. Over the history of the Company, notable NCAA and NBA stars have participated in the Company’s training programs. As more and more talented individuals come through the NLB program, they will continue to attract these stars, which will up the media profile of the Company and increase membership and visitors to the NLB facility. TV & Radio Advertisements The Company will purchase radio and television ads during local broadcasts. Radio commercial production can be done cost- effectively, and provides flexibility to tailor the message to the local community. Radio also offers the opportunity to work closely with appropriate stations, which can showcase promotions that help build awareness of the Company’s services. Television ads can offer wider marketing appeal and can also be utilized through online avenues like YouTube and then cross- posted on social media. They can also be effective when played on local network stations. NLB’s commercials, regardless of whether they are for radio or television, will emphasize the quality of the Company’s services as well as the fantastic customer service and the various components of the facility development. PARSEGOV, ANDREY /0E6742 /GA069 17 Word of Mouth Positive customer testimonials and reviews are one of the strongest forms of advertising and can be a key decision point for many potential customers. Data from the White House Office of Consumer Affairs shows that news of bad customer service reaches more than twice as many ears as opposed to praise for a good service experience. Furthermore, loyal customers are worth up to ten times as much as their first purchase. Operations Plan Corporate Structure Company Name Next Level Basketball, LLC Founders Jonathan Ramos Andrey Parsegov Serg Arzanov Website www.nextlevelbasketballfl.com Contact Info Telephone: (305) 586-3170 General Email: info@nextlevelbasketbalfl.com Social Media Facebook: https://www.facebook.com/NextLevelBasketballTraining?ref=br_tf Twitter: https://twitter.com/NextBBall Instagram: https://www.instagram.com/NextBball/ PARSEGOV, ANDREY /0E6742 /GA069 18 TEAM Jonathan Ramos—Managing Partner As an experienced player development expert in the field, Mr. Ramos has ushered much of the business growth of Next Level Basketball since its inception in late 2013. Mr. Ramos has managed the company’s senior player development programs for ages 15+ in addition to handling more than 10 professional athletes. Mr. Ramos holds a bachelor’s degree in communications with a minor in entrepreneurship from Florida International University. Mr. Ramos has also been at the forefront of the company’s finances and logistics. Mr. Ramos is currently pursuing a graduate degree in psychology. Andrey Parsegov—Managing Partner From receiving a Bachelors Degree from Florida International University, to becoming a Financial Advisor for one of the top investment firms in the nation, Northwestern Mutual, Mr. Parsegov has grown his network throughout his years of experience in both sales and financial planning. Andrey participated actively in the beginning of Lebron James’ first and only affiliate store in 2013, Unknwn Miami. Expanding his network immensely, Mr. Parsegov has begun to incorporate his entrepreneurial skills into growing Next Level Basketball, the company he became an active partner in 2015. Mr. Parsegov also manages the finances and customer relations of the company. Serg Arzanov—Managing Partner Since joining the organization as an invested partner and full time player development expert in 2015, Mr. Arzanov has furthered Next Level Basketball’s vision and established a connection in the community. Mr. Arzanov holds a bachelor’s degree in exercise science with a minor in marketing. Mr.Arzanov is also a certified personal trainer and will be pursuing a master’s degree in athletic training. Mr. Arzanov also manages the operations of Next Level Basketball as well as managing all of the junior player development programs (Ages 6-14) and has over 15 years of experience in the game of basketball both as a player and a development coach. PARSEGOV, ANDREY /0E6742 /GA069 19 Kenny McCraney (Miami Heat) McCraney joined the HEAT organization in 2000 as a coachs assistant for the WNBAs Miami SOL. He was then promoted to the position of video coordinator in 2001. Following the SOLs 2002 season, McCraney became an administrative assistant in the HEATs Basketball Operations Department. Prior to joining the organization, McCraney spent three seasons as an assistant coach for the mens basketball team at Florida International University in Miami, where he helped recruit future NBA players Carlos Arroyo and Raja Bell. He also has head coaching experience, directing the mens basketball team at St. Johns River Community College in Palatka, FL and the boys team at Oak Hill High School in Gainesville, FL. McCraneys coaching experience began at the University of Florida, where he helped recruit future NBA veterans Vernon Maxwell, Dwayne Schintzius and Clifford Lett while serving as an assistant coach from 1981-1990. Prior to joining the Gators coaching staff, McCraney played four years at Florida and was captain of the squad in 1980 and 1981. He graduated with honors with a degree in speech communication. McCraney also currently serves as co-founder and director of The Shower House, a non-profit organization that benefits the less fortunate and families facing crisis. Kenny has recently become a part of Next Level and is looking forward to the facility’s bright future.