COMPANY OVERVIEW

Bluewater Bay, LLC is a land development enterprise that owns approximately 440-acres of vacant land in the Mississippi Gulf Coast. The appraised as-is market value is USD $50 million as of 05/22/2020. The site is located within a few miles of a major interstate with good exposure along two minor arterials, and access from an adjacent bay. The Company will lease the land to venue operators with a minimum lease payment plus a revenue sharing model. “Blue Water on the Bay” will be a family entertainment destination master entertainment community including waterscapes, an outdoor water park, golf, hotel, marina, e-sports gaming complex, retail, food and beverage and theater entertainment with indoor and outdoor venues.

ABOUT BLUEWATER BAY

The Blue Water Bay development site is in Pass Christian, MS on a 438-acre waterfront site complete in entitlements including gaming site approval. With direct access to both Interstate 10 (servicing Houston to Florida) and US Hwy 90 (connecting 7 southern Mississippi cities, including Gulfport and Biloxi) the site is easily accessible not only by ground transportation but is convenient to regional and international traffic provided by Gulfport-Biloxi and New Orleans International Airports. The historic town of Pass Christian is located on the western most shores of the 26 miles of Mississippi Gulf Coast white sand beaches. The Mississippi Gulf Coast community represents an abundance of cultural festivities, casinos, year-round golf, sport, fishing, local cuisine featuring gulf fresh seafood, shopping and museums. With 2 miles of natural water frontage/shoreline on the St. Louis Bay, the Bluewater Bay site offers spectacular views of the navigable bay, bayous, rivers and saltwater marshes. These natural amenities are unique and deserve perpetual ecological preservation. Some 42% of the legal description of this property is planned to be conveyed and protected in State Conservation Easements for Coastal wildlife and public enjoyment for years to come.

STRATEGY

Bluewater Bay will be the first real destination resort targeted toward locals and millennials rather than tourists and baby boomers, while offering an immersive experience that surpasses the competition. The 15 venues will employ over 2,000 hourly positions with an average well above current market wages, significantly reducing the number of unemployed and under-employed residents. The first esports arena wo be built in the southeast US - the fastest growing business in the world. Support local business including farming and fishing (totaling 10-15% of purchases) to provide much needed revenue to businesses that were severely impacted by Hurricane Katrina, the BP Oil Spill, Central Louisiana Floods, and COVID-19. Philanthropically serve those in great need through programs that address hunger and food insecurity issues. The resort's hydroponic greenhouses and seafood aquaculture "farming" will provide fresh vegetables and fresh seafood for use in the resort's food and beverage operations as well as company sponsored food banks.

MARKET & COMPETITION

MISSISSIPPI GULF COAST TOURISM MARKET

The location for the proposed Bluewater Bay will be conveniently bordered by Interstate 10 to the north, Bay of St. Louis to the west, the city of Gulfport to the east, and the Gulf of Mexico to the south. Interstate 10, Highway 90, and Bay of St. Louis Bridge provide excellent regional and local access. I10 extends through the northern neighborhood area and provides easy access to gulf coast cities such as Gulfport, Pascagoula, Mobile, and New Orleans. US Highway 49 is the major north/south roadway extending from the coast northward to Interstate 10 and on to Hattiesburg. US Highway 90 is a major east/west corridor extending along the Gulf Coast with views of the ocean, piers, and beaches.

Tourism is on the rise in the Mississippi Gulf Coast. The region’s tourism bureau reports room reservations were up for 2018 and group bookings for 2019 are strong. Group bookings are typically for corporate meetings and sports teams visiting places such as the Gulfport Sportsplex. “We have spoken to several hotels across the region, and have received extremely positive forecasts for 2019,” Milton Segarra, CEO of Visit Mississippi Gulf Coast, states. “From what we have heard so far, 2018 seems to have been a positive year for the hotel industry, exceeding budgeted occupancy and revenue, and seeing an increase in results over 2017.” According to Mississippi’s most recent tax figures, October 2018 room sales were up 27 percent over the October 2017 sales. Hotel stays for 2018 are up 16 percent and traffic to the tourism website gulfcoast.org is up 18 percent over 2017. Tourists are visiting the Gulf Coast for the casinos, festivals, events, beach, and recreation. VMGC has taken on a more strategic approach to marketing the region in recent years. Segarra said, “we are focusing more on the opportunity to attract more business that is within six hours or less of driving time because almost 80 percent of our visitors are driving. We have found that the return on investment on those markets has been so important to us.” VMGC is re-branding the region with a marketing campaign that rolled out in March 2019. The new branding will be based on extensive research and work with community members, stakeholders, elected officials, clients, and tourism executives. “Working together is the key to bringing more visitors to the Mississippi Gulf Coast” he said, “and we look forward to an exciting future of increased visitation, deepened partnerships and broadened horizons.”^[1]

Tourism is the largest segment of employment second only to government on the Mississippi Gulf Coast, making up 18 percent of all employment. Nearly one in five jobs on the Gulf Coast is tourism-related, making it an incredibly important sector in the area. Approximately 11 percent of total Gross Domestic Product (GDP) in the Gulfport/Biloxi area is from leisure and hospitality, and just under 2 percent in the Pascagoula area. When comparing current job inventories to pre-Katrina levels, leisure and hospitality is the largest opportunity because this segment of the economy is gaining more jobs every year.

The tourism industry of the Mississippi Gulf Coast faced hardship following the BP oil spill. Tourism is one of the Gulf Coast’s most significant economic driver directly impacting on small businesses. People traveling to the coast are more likely to spend money in local establishments, thereby boosting the local economy. Educating employees in the tourism industry about all the Coast has to offer is an effective way of selling all the hotels, attractions, historical references, and events. These employees will, in turn, pass on invaluable information about the Gulf Coast to travelers and tourists, creating greater awareness and increased revenue throughout the region.

[1] https://www.sunherald.com/news/local/counties/harrison-county/article223310735.html

Competition

There are several other entertainment venues in the Mississippi Gulf Coast. The closest developments to the proposed Bluewater Bay resort location are the Hollywood Casino and Silver Slipper in Bay St. Louis, with a variety of gaming, hotel rooms, restaurants, an RV park, and a golf course. There is another cluster of hotels and casinos about 40 minutes away in Biloxi.

Hollywood Casino Gulf Coast

13-minute drive from proposed BWB location

Hollywood Casino Gulf Coast offers Las Vegas-style gaming, featuring slots, table games, and live poker. The 14-story waterfront hotel is located on an Arnold Palmer golf course minutes away from Gulf Coast beaches. The hotel features 291 well-appointed guest rooms and suites, free in-room Wi-Fi, complimentary pool access, lazy river, and fitness center. The casino is close to retail shops in Old Town Bay, St. Louis. There is a gift shop in the main lobby. The property features 56,300 square feet of casino space and amenities include three restaurants, live entertainment, 1,131 slot devices, and 19 table games including 5 poker tables.

Island View Casino Resort

15 -minute drive from proposed BWB location

The Island View Casino Resort is located in Gulfport, Mississippi. The hotel is equipped with 560 guestrooms and suites. The casino is 83,000 square feet and includes slot machines, table games, and poker. Island View provides entertainment including live bands and Karaoke. There are several dining options including a 24-hour coffee shop, buffet, and casual sit-down dining. The resort also features the “Gulf Coast Fish House,” a restaurant of award-winning chef Emeril Lagasse.^[1] The property features 82,935 square feet of casino space and 970 hotel rooms including suites. The hotel includes several high-end restaurants, 1,941 slot devices, 42 table games, the Blue Shell Spa, The Fitness Center, 28 Palms Gift Shop, and more than 14,000 square feet of meeting and banquet space.

Silver Slipper Casino & Hotel

26 -minute drive from proposed BWB location

Silver Slipper Casino features 36,826 square feet of casino space and 129 hotel rooms including suites. The amenities include four restaurants, 953 slot devices, and 28 table games.

Treasure Bay Casino and Hotel

30 -minute drive from proposed BWB location

Treasure Bay Casino features 28,140 square feet of casino space and 205 hotel rooms including suites. The amenities include five restaurants, 815 slot devices, and 26 table games.

Golden Nugget Biloxi Hotel & Casino