RASMUSSEN FARMS
Hood River, Oregon
Basil Childers for The New York Times
Offering Memorandum
RASMUSSEN FARMS
3020 Thomsen Road Hood River, Oregon 97031 (541) 386-4622 FAX (541) 386-4702 1-800-548-2243 www.RasmussenFarms.com
Dear Prospective Buyer: We are presenting you with a unique opportunity to own a Hood River Valley icon – Rasmussen Farms. Our family has decided to sell this very popular and nationally recognized destination farm as retirement beckons. It is the desire of our family to sell the property and business as one unit, although we will consider other options. This memorandum has been prepared for the purpose of providing potential buyers with general information concerning the property and business that encompass Rasmussen Farms. The family prepared all information contained herein and, where appropriate, from other sources deemed reliable; however, we do not guarantee its accuracy and expressly disclaim any and all liability for representation, expressed or implied, contained in, or omitted from this memorandum. Prospective buyers should conduct an independent investigation of all matters deemed material. The information contained herein is intended to be reviewed only by the party receiving it from our family and should not be made available to any other person or entity without our written consent. Please contact me for additional information and to arrange for a tour of our farm. Complete financial records and more detailed information are available to qualified, interested buyers. Sincerely,
David Rasmussen (503) 780-1571 Email: dave_ras@msn.com
Table of Contents
Section 1 – Pricing and Terms
Section 2 – Business Overview
Section 3 – Property Description
Section 4 – Business Inclusions
Section 5 – Annual Farm Events
Section 6 – Approved Preliminary Site Plan for Minor Partition
Section 7 – Aerial Photo of Rasmussen Farms
Pricing and Terms
Sale Price Property and Business as described in this memorandum Financing Seller financing is available subject to buyer's qualifications $ 1,200,000
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Business Overview
On a busy weekend last fall, approximately 5,000 people visited the farm to enjoy activities such as Pumpkin Funland, find the perfect pumpkin, and to purchase fruit and other products. The success of Rasmussen Farms is based on almost a half a century of farm direct sales, long established farm events, a wide variety of products, and the down home feeling that lets customers feel like the farm is their own. History and Future Farm direct sales began in 1963 as a way to sell surplus crops and improve profits for the farm’s berry and vegetable production that was primarily sold to processors. By the mid 1970’s, the sale of fruits and vegetables directly to consumers had become the core business and product sold to processors was eventually discontinued in 1979. Product selection was increased to include many fruit and vegetable products grown in the local area, plants and flowers, and food products made in Oregon. The business was expanded over the years to include the sale of mail-Internet based gift packs (1976), products sold for fundraising events (1992), and flower services (1985). In addition, a large emphasis was placed on offering many scheduled events that are held each year on the farm. The farm enjoys an excellent reputation and enormous name recognition in the region due to the many years of direct sales, numerous farm events, and breadth and quality of products; it’s truly become a destination attraction of it’s own entitlement. The general public is wanting more and more of a direct, on the farm experience, for recreation and to know where their food is grown. Recent problems with foreign products have significantly increased the concern for the latter. This situation, in conjunction with the farm’s name recognition and reputation, provides a unique opportunity for the business to enjoy tremendous growth in the years to come. Business Segments Farm Direct Sales – sale of fruit, vegetables, berries, plants and flowers starting in the spring and ending in late December. U-pick is available for strawberries and vegetables. See Annual Farm Events summary for activities that take place each year on the farm. Fundraising – sale of flower baskets and planters in the spring and evergreen wreaths during the holiday season. Fundraising products are marketed to non-profit organizations that in turn sell them during fundraising events. Marketing material and suggested prices are provided to the organizations. Flower Service – marketed as “Welcome Flowers”, hanging baskets and planters are provided and maintained for commercial accounts throughout the mid-Columbia area
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during the growing season. This division also does custom flower plantings and flower rentals for weddings and other events. Mail-Internet Sales – sale of fruit, evergreen wreaths and Oregon products that are packaged as gifts and shipped to all 50 states. Sales occur mostly during the holiday season, but products are also shipped at select times during other times of the year. Our pear sampler gift was featured as the “Best of the West” in Sunset magazine. Financials To be provided to qualified, interested buyers upon signing a nondisclosure agreement. Reason for Sale Lynn and Dollie Rasmussen have operated the farm for over 50 years and have decided it is time to retire and let someone with more energy operate the business. Investment Considerations • • Large, loyal direct sale customer base built over the past 45 years – many consider the farm their own. One of the most recognized destination farms in the Northwest. Nationally recognized several times by Nickjr.com as one of the “best places in the USA for Halloween” and Sunset magazine as a “must see”. The farm has been in numerous publications including The New York Times as well as featured on various local, international, Food Network, and Public Broadcasting television programs. Media coverage has extended from Alaska to Hawaii as well as Asia, and Europe. Long history (over 25 years) of frequent annually scheduled farm events that draw new and repeat customers, large groups and bus tours. Well-established, reputable business – 45 years farm direct sales and over 30 years mail (Internet) gift pack sales; one of the oldest and most respected destination farms in Oregon. The Hood River Valley is a very popular day trip for an ever-growing urban population – the Portland metro area is just an hour away by car or bus tour. The area is also well known for it’s many farm direct sales made popular by the Hood River Fruit Loop, an organization that actively promotes farm direct sales. Located in the highly desirable Eastside, just one mile off the Mt. Hood highway – the chosen route for most visitors to the valley.
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Fertile silt loams with mostly flat to gradually sloping topography and full irrigation rights from East Fork Irrigation District. Ideally suited for orchard, vineyard, berry, and vegetable production Approved Measure 49 claim with the State of Oregon, which provides the opportunity to sell or develop up to two additional home sites on the property (see Property Description section for additional detail). The business has historically been recession proof as it appears urban customers reduce long trips and vacations in favor of closer and shorter outings during economic downturns. The sellers are in there seventies and have purposely not pursued various opportunities nor attempted to expand their current business for over five years. This provides a new owner with a unique opportunity to achieve tremendous growth in the business.
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Business Opportunities To be provided to qualified, interested buyers upon signing a nondisclosure agreement.
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Property Description
Legal Description South ½ of the SE quarter of the SE quarter of Sec 24, Township 2 North, Range 10 East of the W.M., in the County of Hood River and State of Oregon (2N-10E-24-4600) with a physical address of 3020 Thomsen Road Hood River, OR. 19.70 acres m/l of Wy’east hood silt loam soil with mostly flat to gradually sloping topography and full (19.3 acres) senior (1895) irrigation rights from East Fork Irrigation District. Irrigation water is delivered to the property under pressure and no pump is required. The property is zoned EFU (exclusive farm use). Oregon’s land use regulations prohibit dwellings on EFU zoned property except for farmer occupied homes on commercial farms thereby minimizing the number of dwellings in rural areas. Oregon voters approved two ballots in recent years – Measure 37 and Measure 49 – to reinstate some property rights to long-time property owners who had lost property rights without compensation. Sellers received a M37 waiver (approval) from Hood River County and the State of Oregon and subsequently filed and received tentative approval from Hood River County for a Minor Partition to divide the property into three parcels: 17.97 acres, 1.03 acres, and 0.70 acres (see preliminary site plan attached). Upon passage of M49, Sellers filed a M49 claim with the State for two additional home sites on the property. The State issued a final order (approval) on Sellers M49 claim in early 2009. With this approval, the property owner can proceed with partitioning of the property into two additional parcels that can be sold as individual rural homes sites or owner could elect to construct homes and either retain or sell them. Alternatively, it may be possible for the property owner to donate, in the form of a conservation easement, all or part of the M49 rights to an organization and receive a charitable donation that could provide a substantial tax reduction. Landscape Features View of Mt Hood, Mt Adams, most of the mid and west side of valley, and next to east hills; all season Thomsen Creek located towards west end of property; mature trees along south lawn; and, 100 year old oak tree. Approximately 1,600 square foot, 1½ story, 3 bedrooms, 1 bath, home office, utility room, large front porch. Built in the 1920s with
Land
Measures 37/49
House
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concrete foundation, composition shingle roof, and pellet stove and electric baseboard heat. Greenhouses 1 – 20’ x 95 poly/aluminum framed (2000) 1 – 30’ x 50’ poly/aluminum framed w/wood stove (2000) 1 – 20’ x 48’ poly/aluminum framed w/wood stove (2000) 1 – 32’ x 100’ poly/aluminum framed w/concrete foundation and walkways (2000) 1 – 16’ x 16’ wood/fiberglass solar heat design (1970s) 30’ x 50’ cedar lath house with pole construction used for spring plants and summer events (2001) 36’ x 144’ wood frame w/concrete foundation and pole frame construction, corrugated metal roof, and mostly concrete floor. Used for sales, prep, storage and includes 12’ x 18’ square foot walk-in cooler. 225 square foot office and 225 square foot covered area attached to front of building. (1960s) 18’ x 30’concrete block w/concrete foundation/floor and composition shingle roof. Built as milk parlor and wired for hot water, floor drains, etc. – ideal for value added farm products such as cider, jam, bakery, and ice cream. (1950s) 96 square feet wood frame w/concrete foundation/floor and corrugated metal roof. (1950s) Domestic water is supplied by Crystal Springs Water District. Electricity and DSL Internet service provided by Hood River Electric Co-op. 1½ acres of Hood and Rainier strawberries planted in 2007 and 2008.
Lath House
Sales Barn
Milk Parlor
Tool Shed
Utilities
Perennial Crops Personal Property
Most farm and business equipment and supplies are included. Signature items, such as moss covered horse and wagon, are not included in the sale, but Seller will allow them to be used by Buyer for up to five years. Packaging and product inventory are not included in the purchase price and will be sold at current wholesale cost.
Inventory
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Business Inclusions
• • • • • • • • • • • • Customer lists for each business division, if applicable Proprietary mail order software and database Internet site – www.rasmussenfarms.com with conditions and time limit Use of “Rasmussen Farms” name and logo with conditions and time limit Detailed monthly schedule/time line for farm events and activities Supplier contacts and past purchasing records Farm and greenhouse planting records and varieties Log for Welcome Flower and private plantings Promotional press packs, wedding packs All available previously used advertising and art work All available pictures and props for farm events One year of operating support and consulting by Sellers to help assure smooth transition and continued success of business
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Annual Farm Events
Farm events have been a long-standing tradition at Rasmussen Farms going back to the late 1970s and make this business unique from it’s competitors. Many customers have made it a family tradition to attend one or more of these events each year. Blossom Festival – held in April and coincides with the Hood River Blossom Festival celebrating the valley’s orchards in (hopefully) full blossom. Apples and Pears available from controlled atmosphere storage. We feature our Pansy Party, over 40 kinds, recipes and greenhouse Open House. 4-H farm animals petting area.
Summer Sensations – held in June during strawberry season. UPick and ready picked strawberries. Free strawberry shortcake and treats. Greenhouse fun with lots of special sales. Herb recipes, collections, and wreaths. Make your own planters and baskets workshop. Strawberry shot put. Live music on the weekend.
Cherry Celebration – held in early July during cherry season. We provide a large variety of cherries and offer recipes and samples of cherries, cherry pie, and Oregon cherry products.
Van Gogh Days – held in early August and celebrates 60 kinds of sunflowers. Customers have the perfect opportunity to paint, cut, take photos and enjoy the many colors of summer. Live music, free wine tasting, vegetable games and treasure hunt for the kids, and quilt and art show and sale.
Gravenstein Apple Days –held in mid August to kick-off the fall fruit season. Fresh cider, Gravenstein apple pie, and recipes. Also, family activities, featuring a pie walk, Chicken Dance, and live music. Opening of the Corn Maze.
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Pear Party - held in mid September at the peak of the pear season featuring many varieties of pears. Samples of pears, pear pie and Oregon food products plus lots of recipes, live music and "how-to" demonstrations of drying apples and pears. Wine tasting featuring pear wines and "perry" (pear hard cider).
Apple Express – held in late September when apple season begins with over 50 kinds of apples including heirloom and experimental apples. Free samples, live music, apple cider, apple pie and other desserts. Free Danish Aebleskivers and recipes. Pumpkin Funland preview and a covered picnic area.
Pumpkin Funland – held from October 1st to mid November; it’s a wonderful, unique world created with pumpkins, gourds, squash and from items conjured up by our staff. There is also a corn maze in the cornfield with scenes throughout. U-pick pumpkins, fall deco, and, of course, fall vegetables and fruits. Pumpkin bowling and our covered picnic area. Sunset Magazine noted Pumpkin Funland as a "must see" for fall. Pumpkin Funland was also nationally rated as one of the eleven best places in the USA for Halloween by nickjr.com.
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Approved Preliminary Site Plan for Minor Partition
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Aerial Photo of Rasmussen Farms
3020 Thomsen Road Hood River, Oregon 97031 2N 10E 24 TL 4600
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