Compiler’s Note:

 The nature of this proposed venture is speculative.

 We are proposing an innovative 21st century approach and system – so

as to perform coastal beach restoration, near shore channel
maintenance and environmentally sound dune restoration so as to
enhance turtle nesting habitats; while protecting upland home and or
property owners and to be fairly remunerated for it.

Public agencies are often resistant to change. However, the time is at

hand to initiate pro- active solutions to the growing problems of our
eroding shore lines.

Our fall back position is these very same services we can provide are
needed through out the marine industry both nationally and
internationally. However, this does not completely reduce our
investment risk factors.
 The following estimates, numbers and projections are
based upon information provided to the complier by
various contractors and public administrators and the
public record. Actual numbers may be variable
in nature based upon urgency of site specific job
conditions and available capital.

 Estimated costs of equipment capitalization, manpower

costs and expendables are based upon current “real open
market conditions” at the time of the formation of this
pro former and also subject to change
Coastal Sand Management Systems

A “Green” Business Plan for a

A 21st Century Approach To Dune Restoration
 Joint Venture
Capitalization Purpose
Assemble the initial team and equipment
package so as to seize a major market share of
the growing number of emergency specialized
coastal public sector dune restoration, shore line
revetment projects, inlet sand trap management
and also premium private sector marina commercial
dredging opportunities

Initial Funding Requirement $ 2,250,000.00

Year 2 Capitalization Requirement $ 3,750,000.00
Total Capitalization Requirement $ 6,000,000.00
 Why?
 Coastal Sea Level Rise is a Reality in the 21st Century

 Addressing this issue will be a growth industry in the decades to

come

 Presently government agencies are trucking sand in PBC in a costly

& futile attempt to address a recognized and present day coastal
emergency, so designated by Governor Charles Crist

 The national dredge industry in not focused on the coastal aspect of

this environmental new specialized market share

 Nor does it have the proper equipment package to do so

 Mission Statement

CREATE, ESTABLISH AND PERMIT A 21ST CENTURY

APPROACH AND HIGHLY MOBILE SYSTEM TO PROVIDE
THE SERVICES OF
TRANSPORTING AND RE-DIRECTING SAND AND
OVERBURDEN WHERE THE PUBLIC, SEA TURTLES AND
ENVIRONMENT NEED IT, ON A TIMELY BASIS
BACK ON THE DUNE
 Team Leader
 CEO Captain Dominic A. Addario

 Educator, Licensed Master Mariner, Practical

Ocean Engineer & Specialist in near shore
coastal processes

 Recognized and Established Undersea Explorer,

First Appointed Federal Substitute Custodian of
the 17th Century Jupiter Historic Shipwreck site

 Over two decades of practical – site specific

coastal, near shore investigations in Palm Beach
County in sand and sediment movement
 Market Summary

 Accelerated rising sea levels in the 21st century is a reality

 CSTS purpose isn’t to debate the reasons why. We are proposing

an innovative yet environmentally compatible approach for dune
restoration all along the eastern seaboard

 This is a world wide problem – soon to be an issue in the UAE.. In

Jupiter and Palm Beach County the problem is amplified and thus,
a logical place to begin. Beaches and dunes, are desperately in
need of an accelerated restoration program with the proper quality
beach sand

 This problem is increasingly more expensive if innovative

approaches to addressing it are at the very least not investigated
 Within the course of our 21-year investigations of
our historic shipwreck site we have located a
unique by-product. Immense inventories of high
quality beach and dune restoration material
(beach sand)

 All the permits are in hand to move this material (with dredges) so
as facilitate JWI Historic Investigations

 The turtles too, desperately are in need this same sand for nesting
habitats - the very sand that washing off the dunes and beaches!

 All that is needed is a modification of existing permits and some

specialized equipment with modification, to allow the material we
are moving – in any event – to be made available to municipality,
County and or Regional Agencies responsible for addressing the
problem
 Opportunities
 Problems and Opportunities:

– Goal: Establish a “Proof of Concept” model so as to allow local

lead agency acceptance of our, “MOBILE SAND TRASFER
SYSTEM SERVICE” concept.

– Major Opportunity: We already have all the permits available to

move this sand and need only to adapt the proper equipment
package to transfer the sand washing off of the dunes in an economical and
environmentally compatible manner the same distance as it will have to
go, back to where it is needed .

Remember, this is the very same sand washing off the beaches and dunes!

– A modification of our permit package is required for the sand to be used for
dune restoration and the bolstering of turtle nesting habitats.
 Business Concept

 Utilize as a model a U.S. Navy Engineering Logistics

Command battle proven concept and equipment package
to develop our “Mobile Sand Transfer Service”.

 Acquire and Adapt a “Causeway Self Powered

Barge/Lighter System specifically designed by the Navy
to work in the surf zone to the beach and adapt DPS
Positioning Systems and 21st Century Submersible Hydraulic
Aggregate / Sand Pumping Technology to either pump the sand
to dewatering trucks for barge transiting or even better –
directly shoreward when permit able to the dune – where it can
be then Dewatered and Stockpiled for Dune Restoration,
bolstering of Turtle Nesting Habitats or emergency Shoreline
Revetment.
 Competition
 We have no competition. Our unique permits already in hand allow us
to move the material (Dune Sand) our proposed service can offer, to
be placed behind the dune is the very material that is washing off of
the dune through storm events, natural erosion and littoral drift
processes.

 The mass trucking in of land based aggregate produces negative

ecological consequences including but not limited to greenhouse gases
and added project costs. Trucked in sand contains marl that is not
compatible with the sensitive marine coastal environment.

 The only contaminant material in the on shore substrate we propose to

be used for dune restoration is, the very material “trucked” there and
then dumped on to the dunes in earlier - well meaning attempts to
address upland property steward’s emergency concerns.
 Goals & Objectives

 Five-Year Goals

– Secure as many of the Causeway Modules at the lowest costs

available to create a fleet of Mobile Sand Transfer Systems for
Florida’s coast line and the eventual eastern seaboard

– Establish an Environmental Permitting Base that will

re-instate on shore reef and bait fish habitats – while addressing
the practical materials needs for dune restoration and shoreline
revetment of coastal communities

– Create and sustain a State-of-the Art Unique Equipment Base

and Team, so as to accomplish the above
 Financial Plan
 Executive Summary
An initial $2,250,000.00 capitalization line will be required to
tool up for a proper “Proof of Concept”, Model and 12 months
operations budget leading to a functional permitting package for
a five year plan

2007 / 2008 costs per cubic yard of sand to bolster eroding dunes
from the feeder beach at Jupiter’s Inlet to Lake Worth;
including
locations upon Singer Island ran anywhere from $35,00 to
upwards of $100.00 per cubic yard to both truck and handle
imported sand for emergency dune restoration

Our focus will be on Providing the Material and not its Upland
Handling
 CSTS Initial Basic Start Up Costs:

$ 2,250,000.00

Over $10,000,00.00 of public funds in Palm Beach County alone were expended
by County and municipalities for emergency dun e restoration in the past
twelve (12) months

Compliers Note:
(Based upon estimated projected acquisition costs of acquiring and refitting
modification of existing surplus and previously used marine and pumping Equipment)
 VENTURE GOALS

 Assemble the proper equipment package to set up CSTS

Mobile Sand Transfer Systems and the support craft to
provide highest quality dune restoration material

 Secure a Market Share of Present and Future Dune

Restoration and Inlet Sand Bypassing Projects
 Causway Self Powered Barges
& SLWT Service Tug / Barge

Above I am with a Self Powered 89’ by 22’ Naval Causeway Tug

 These vessels were specifically engineered to
function within the surf zone,
so as to land cargo on a beach head

Our SLWT will be equipped with a Sturdy A Frame

These equipment packages are maintained by
Honeywell, for U.S. Navy Sea Lift Command.
Most all Engine Room Compartments are
spotless and have low hours
 The SLWT Twin Propulsion System are
Azmithing Jet Drives that turn 360 degrees

She is equipped with a no nonsense Control Compartment

A large Hydraulic Diesel Dual Spool Winch
is available as well for both the
Boom and Stern Anchoring Systems
Our seaworthy working platform will have sufficient deck space to
both deploy and store the modified proper equipment to handle
dune restoration and other specialized dredging maintenance jobs
A variety of these Submersible Sand Pumps can run off
the house hydraulic system from the front of our twin
495 horsepower 8 –V71 power plants

Toyo modified these pumps to suck sand from

sand wells over 300 feet deep to build an Island
for an airport in the Sea of Japan
Our Seaworthy Mobile Sand Transferring System Base can
be - like LEGO blocks – disassembled and shipped then be
then assembled to fit any site specific job configuration
First and Second Year Model
Business Plan
 Seek out and bid “Hot Spot” Public and Private Sector
Marina and Channel Restoration Projects under 10,000
yards of material per site specific job

 Assume possibly 50,000 aggregate yards of jobs after

first start up year

 Start Up and Second Year Gross Receipts:

$ 1,000,000.00 @ $20.00 per
cubic yard
Second Year Gross Receipts
Based Upon 125,000 to under 200,000 cubic yards
@ $20.00 per yard

$ 2,500,000.00 to $ 3,375,000.00

Third Year Gross Receipts

Based Upon 250,000 cubic yards @ $20.00 per yard

$5,000.000.00
Projected Costs
 Second Year Costs
$ 500,000.00

 Third Year Costs

$ 2,000,000.00

(New capital equipment, major equipment maintenance and

additional staff will be required)
 Summary of
Resource Requirements
 Acquire as many Self Powered Causeway Barge
Modules as budget will allow after personnel requirements are met

 An Initial Capital Line of $2,250,000.00

 Expansive Lobbying, Hydraulic Engineering Support.

 A Central Land Based Staging Point Key Staff

 And, a Good Insurance Underwriter

 Risks & Rewards
 Risks
– Working in the surf zone and underwater can be extremely
risk oriented
 Addressing risk
– Only operate with key – well paid, fully insured and
motivated personnel
 Rewards
– Putting together the Proper Equipment Package and Team
and we will create a perpetual annuity for our heirs – The
Problem of Beach & Dune erosion is not going away in the
coming decades
 Summary Key Issues
 Near term
– Setting Up of the Team & Right Equipment Package and
Continued Effective Lobbying

 Long term
– If we don’t seize the Opportunity of seizing the market of
these Causeway Systems coming available our set up costs
will be significantly more expensive

– The least expensive part of this venture will be acquiring all

the individual components. The costs of staging,
refurbishment and putting the Equipment Package and
Hydraulics all together will be 4 to 6 times the actual hardware
acquisitions
 Project
Financial Requirements Summary
 An initial financial commitment of $ 2,250,000.00

 Minimum of $ 500,000.00 ASAP so as to timely acquire key pieces of

equipment, re-commission and launch 1st vessel and retain key
talented staff

 An Understanding - Certain Lobbying Soft Costs are a part of the

Permitting Process

 Additional $2,000,000.00 capital infusion 2nd year after proof of

concept model is established

 Timely Capital Draws for payroll, project insurance and other

expendables such as fuel, tools, traveling and other TDY related
expenses
 Offering:
 Limited to Up to Ten (10) Investment Units

 A Minimum Capital contribution of $ 250,000.00 will

Purchase a 3 % Equity Share of (CSTS) Coastal Sand
Transfer Systems.

Compliers Note: There are some aspects of this proposal

that may be site specific to the UAE and
Nakheel future development. I will be
glad to discuss these with you on a
consultant basis.

Thank you for considering our project.