Virginia Farm Bureau Meadow Event Park & State Fair of Virginia What is the Virginia Farm Bureau? 17 Private Profit and Non-profit corporations -501(c)

Virginia Farm BureauMeadow Event Park & State Fair of Virginia

What is the Virginia Farm Bureau?17 Private Profit and Non-profit corporations-501(c) 3

Non-profit: Agriculture Advocacy & Education

For-profit: Commodities Brokerage, Farm Products, Rural Development, Insurance (Auto, Home, Farm, Commercial, Life, & Health)

Membership Organization-135,000 Members throughout Virginia

900 Employees 200 Insurance Agents

Operations over 80 Years

Combined Revenues All Sources-$400 Million


What is the Meadow Event Park? (the “Meadow”)

331 Acre Entertainment District & Park-Doswell, Va. 15 Miles North of Richmond on I-95

Kings Dominion Exit

Convention Center, Festival & Event Center, Equestrian Center, Executive Business Center

Historical site since early 1800’s

Birthplace and training site of famous racehorses Riva Ridge (Kentucky Derby, Belmont Stakes) Secretariat (Triple Crown Winner)

Home of the State Fair of Virginia since 2009Scenic destination event site attracting visitors from all over the United States.


What is the State Fair of Virginia?(the “Fair”)

Annual state fair in the Richmond area for over 154 yearsRelocated from Richmond Raceway site in 2009Agriculture Exhibitions, Contests, & ShowsMidway rides & food concessionsMusic and Various Entertainment AttractionsVendors

In 2013 Dates: September 27 through October 6 Attendance: Over 160,000


Recent Financial History Investment-$100 Million

85,000 Sq. Ft Conference Center 10,000 Sq. Ft Pavillion Meadow Manor Equine Center Parking Lots, Pedestrian Tunnels, Utilities, Paved

Parking & RoadSignificant Investment Portfolio Losses after 2008Bankruptcy filing late 2011, early 2012Bankruptcy Auction – May 2012


Bankruptcy AuctionAvailable For Auction

Meadow Event Park Real Estate Land Buildings Real Estate Fixtures

State Fair Of Virginia-Trademarks and Intellectual Property Rights Rights to promote “State Fair of Virginia”

EquipmentExpected Bid Range-Over $10 MillionWinning Bid-Mark Lovell (Universal Fairs; Memphis)

Real Estate & State Fair Trademarks: $5.3 Million Equipment (partial) $240,000


Virginia Farm Bureau InterestPrior to Auction: None

Contacted by interested groups for contributions

Post-Auction: Limited-but increasing

50% Ownership Decision Rationale:

Limited Investment-ROI important but not critical Protect Traditions of State Fair of Virginia Experienced Management of Universal Fairs

Financial Considerations: Limited Cash Infusion by Virginia Farm Bureau Mortgage Financing on Meadow Event Park NIBIT more than capable of debt servicing


Virginia Farm Bureau & Universal Fairs( A Case Study)

Commonwealth Fairs & Events (CF&E) Formed to Own Meadow & Fair-July 2012

Jointly Operate State Fair & Other Events at the Meadow

Partnership Arrangement Equal Ownership- 50% Farm Bureau; 50% Universal

Fairs Separate Financials Daily Management-Universal Fairs


Virginia Farm Bureau & Universal Fairs(A Case Study)

Business Objectives & Missions Farm Bureau-Reasonable Returns, Reputation &

Altruistic Mission Universal Fairs-High Profits & Value Add Generally managed to be compatible

Planning Horizon & Investment Farm Bureau: Long-term, reinvest profits for

reasonable ROI Universal Fairs: Immediate-term, invest for triple

digit ROI


Virginia Farm Bureau & Universal Fairs(A Case Study)

Business Processes (Large Corporation/Entreprenuer) Design & Documentation Collaboration & Decision Making

Internal Controls (What are those?) Don’t spend any money. Disbursement Authority & Budgeting

Financial Reporting Monthly Reporting, Budgeting, Forecasting, Capital

Management

Human Resource Management Policies & Procedures-None


Virginia Farm Bureau-100% Ownership

Partnership (CF&E): Congenial, but Challenged Culture MixDifficult to Grow Together; More Successful Separately

Different Measures of Success Financial Versus Mission Objectives

Farm Bureau Mission Realization Ultimate Comprehension of Mission Alignment

Venue for Education & Promotion of Agriculture Preserve & Protect State Fair & Secretariat

Heritage Communicate of Agriculture Issues

Farm Bureau Learning Understand the Event Industry Business Model


Future of Meadow, Secretariat, & the FairStrategic Value Development

Leverage Meadow & Fair to fulfill the Farm Bureau Mission

Provide Partner Opportunities (Non-Ownership) Re-invest Profits into Infrastructure

Expand Fair Size & Scale Double Attendance in Five Years

New Major Events Music Shows & Exhibitions Equine Event Park

Provide Stewardship Protect Secretariat Legacy for Public National Historic Designation Continue 150+ Tradition of State Fair

Documents

Virginia Farm Bureau Meadow Event Park & State Fair of Virginia What is the Virginia Farm Bureau? 17 Private Profit and Non-profit corporations -501(c)