NHA Green Build 09

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Navajo FlexCrete Presentation
Navajo Housing Authority - Green Build Conference 2009

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  • Good Morning, Thank you for allowing us this opportunity to present before you. Overview In April of this year, the NHA and Navajo FlexCrete Board of Commissioners has charged this Team with taking a second look at the Business Plan originally developed by Headwaters. The team has been working with the ASU Technopolis Program over a 8-10 week period, identifying, analyzing and validating all aspects of this business venture, in hopes that we may produce a new business plan that is comprehensive, defensible and attractive enough financially to entice potential investor groups. In in moving through this process we have identified some discrepancies between the original plan and our current capabilities. Our financial models are incomplete at this time, however we have made great strides in understanding and validating the Market Place, Demand, Product Viability and Competition. As we will continue our efforts, we will focusing primarily on the completing the Financial Models and incorporating those elements into the following presentation. Transition The following presentation is what our potential investors would see for the first time: _________________________ INTRODUCTION I’m sure most of you have noticed a tremendous rise in consumer consciousness in the past few years. Many of us are feeling the strain of sky rocketing Oil, Fuel, and Energy costs. Coupled with a growing “Green Consciousness” this has led to an explosion in the Green building Market.
  • Technology 1: Fly Ash Natural Pozzolin dates back over 2300 years. Meaning it has the ability to enhance concrete’s characteristics. It is a siliceous/aluminous material, which enhances the strength and performance of concrete aslo resulting in: Higher Workability Higher Strength and Durability Decreased Permeability Reduced Shrinkage Reduced Sulfate Attack Reduced Heat of Hydration Technology 2: Similar to Autoclaved Aerated Concrete AAC developed in Europe about 70 years ago Mixture of ground cement, lime, sand and gypsum activated with aluminum powder to “aerate” concrete with hydrogen gas. Cured in high pressure, high temperature autoclave AAC is light weight, easily worked, fireproof, with good insulation properties AAC plant costs are high, making AAC material about 40% more expensive than wood frame
  • The Advantages : In comparison to traditional building systems, these Technologies yield the following advantages: Low Cost / Maximum benefit Ease of Use Physical Strength and durability- (360psi equivalent to concrete) Fire Resistance Energy / Acoustic Efficiency Environmental Sensitivity
  • The FlexCrete Advantage: The advantage over our direct competition is our chemical activator process, this results in lower cost of production and operations. We have direct lines of connection with our focus market, the tribal entities. We offer local distribution effectively cutting transportation cost in the Southwest Region (not all of our competitors can offer this). Our fiber reinforced composition results in superior handling on site and during transportation. We also hold the advantage of low cost of production over our indirect competition. Insulated concrete forms are primarily reinforced with relatively higher quantities of steel and concrete resulting in higher construction costs.
  • Market Introduction: This product was initially introduced into the Indian Housing Market primarily with the Navajo Housing Authority and it continues to establish itself within regional Indian Housing Community. This market will develop into a strong base market we can rely on far into the future. Primary Market: The Navajo Housing Authority was our first and primary market. Since coming online in 2005, the NHA has worked 15 FlexCrete Homes into its currently building production. The NHA is planning to build 150 homes a year as well as 2-4 commercial projects per year. In addition, we intend to focus on the Tribally Designated Housing Entities (TDHE) across the nation. The Santo Domingo Tribe in New Mexico is building 10 FlexCrete homes with plans to produce another 20 more to finish out the year. Marketing: We will continue to cultivate this market by holding events to show off our new production homes (ie. Burnside, AZ and Crownpoint, NM open house). There are 31 Native Communities within the 150 mile radius of the Navajo Nation. We will begin offering our NHA in-house design and construction services to these tribes in an effort to move homes into the production line for Navajo FlexCrete. We hope to build lasting relationships with these tribes for they will be our base market. This will be a revenue stream we can count on.
  • Custom Home Market: The initial demand seen in the custom home market for this product is surprising, considering there has been a very limited marketing push on group thus far. Custom home builders in the region have adopted a variety of green building products and are continually evaluating the competition. For example, several contractors in the Santa Fe, New Mexico have been inquiring about Navajo FlexCrete and show tremendous interest in switching to our product, because of its lower cost and better handling on site. Rocky Top Construction out of Santa Fe, NM is in the process of gearing up to begin construction on a 6000SF home in Santa Fe. Blackdiamond Construction also located in Santa Fe is getting ready to construct 1 custom home and will be evaluating the product for the construction of 20-50 by years end. The Contractor building the Santa Domingo FlexCrete homes is currently considering bidding on more AAC project and would like to use our product believing it is also a better value than the competition. Marketing: Given these circumstances, one would say that this product has begun to sell itself. However, we will continue to cultivate this market by working with contractors to build demonstration homes in high potential markets.
  • The Green Product Consumer: This consumer is different than most consumers, in that this group will seek out this product specifically for its green attributes. Some of those attributes are: The Child’s Residence: We have a homeowner we are currently working with on a 5000 SF home in Gunnison, Utah. This homeowner ran into some difficulty with our parent company Headwaters and was eventually referred to Navajo FlexCrete, in Page, AZ. We also had some initial difficulty meeting his timeline, but we were finally able to produce engineering drawings for his custom home. Navajo FlexCrete asked what made him decide to stay with us even after going through this difficult process. He responded by saying after doing his own research several factors played a role in him stay with us. He believes deeply in “Green Solutions” and was going to use a green building product no matter what. Economically it was the best scenario for him. Cast in place concrete, Insulated Concrete Forms and other AAC competitors didn’t yield the best value for him. He has a brother from Page, AZ and wants to see the Plant succeed knowing it was Navajo owned. Marketing: We will cultivate this market by a focused marketing campaign exemplifying our products green attributes by using the world wide web, preen publisher advertisements, green product distributors and green product conferences at the regional and national level.
  • Alliances: Navajo FlexCrete has been working with several Engineers and Architects to introduce this product to the Design Community. These partnerships are significant primarily because they ultimately will drive market demand higher. Some the designer we whom are currently work with are: Travis Design Associates Robert Metzler, Iinaba Engineers James Cooke, Architect University of Utah, School of Architecture Daniel Glenn, ASU Stardust Center Daniel Glenn with the ASU Stardust Center has design two demonstration projects here in Arizona. The first located in Nageezi, AZ is being closely monitored for its energy efficiency. The second is in the Town of Guadalupe located in the Phoenix Metropolitan area and has received a fair amount of publicity for its efforts in delivering a sustainable design model home to an underprivileged community. Mr. Glenn’s efforts have resulted in a fair amount of interest from the Architecture Community in Phoenix, AZ.
  • Alliances: Navajo FlexCrete has been working with several Engineers and Architects to introduce this product to the Design Community. These partnerships are significant primarily because they ultimately will drive market demand higher. Some the designer we whom are currently work with are: Travis Design Associates Robert Metzler, Iinaba Engineers James Cooke, Architect University of Utah, School of Architecture Daniel Glenn, ASU Stardust Center Daniel Glenn with the ASU Stardust Center has design two demonstration projects here in Arizona. The first located in Nageezi, AZ is being closely monitored for its energy efficiency. The second is in the Town of Guadalupe located in the Phoenix Metropolitan area and has received a fair amount of publicity for its efforts in delivering a sustainable design model home to an underprivileged community. Mr. Glenn’s efforts have resulted in a fair amount of interest from the Architecture Community in Phoenix, AZ.
  • NHA Green Build 09

    1. 1. “ A Subsidiary of The Navajo Housing Authority” <ul><li>Made from Recycled Material </li></ul><ul><li>Environmentally Sensitive </li></ul><ul><li>Promoting Economic Sustainability for the Navajo People and Businesses </li></ul>
    2. 2. FlexCrete Product List *All dimensions shall have a tolerance of +/- 1/32-inch **These are nominal dimensions and actual dimensions are 1/8&quot; less than the values shown 2,4,6,8,10,12-inches 24-inches 20 feet, Maximum Wall Panel (Year 2007) 4,6,8,10,12-inches 8,10,12-inches 6.5-feet, Maximum Lintels 6,8,10,12-inches 8-inches 24 - inches U-Block 2,4,6-inches 8-inches 24 - inches Masonry Units - Non-Load bearing 8,10,12-inches 8-inches 24 - inches Masonry Units - Load bearing Thickness Height Length Nominal Dimensions Item
    3. 3. Product Technology <ul><li>FlexCrete is based on: </li></ul><ul><li>Fly Ash as a Natural Pozzolin </li></ul><ul><li>Aerated Concrete Approach </li></ul><ul><ul><li>Fiber Reinforced Composition </li></ul></ul><ul><ul><li>Chemical Activated Aerated Concrete </li></ul></ul>
    4. 4. The FlexCrete Advantage <ul><li>Low Cost </li></ul><ul><li>Ease of Use </li></ul><ul><li>Physical Strength and durability </li></ul><ul><li>(360psi equivalent to concrete) </li></ul><ul><li>Fire Resistance </li></ul><ul><li>Energy / Acoustic Efficiency </li></ul><ul><li>Environmental Sensitivity </li></ul>
    5. 5. The FlexCrete Advantage <ul><li>Low Cost of Production </li></ul><ul><li>Direct Connection with Tribal Agencies </li></ul><ul><li>Local Distribution in Arizona </li></ul><ul><li>Fiber Reinforced Composition </li></ul><ul><ul><li>More Durable than other </li></ul></ul><ul><ul><li>AAC Products </li></ul></ul><ul><ul><li>Transportation and Handling </li></ul></ul><ul><li>Ease of Use </li></ul><ul><li>Physical Strength and durability </li></ul><ul><li>(360psi equivalent to concrete) </li></ul><ul><li>Fire Resistance </li></ul><ul><li>Energy / Acoustic Efficiency </li></ul><ul><li>Environmental Sensitivity </li></ul>
    6. 6. FlexCrete Operations <ul><li>Currently we have one Production Plant located in Page, Arizona. </li></ul><ul><li>Plans to open a second </li></ul><ul><li>plant in Clark County, Nevada. </li></ul><ul><li>Quality Assurance / </li></ul><ul><li>Procedures in place. </li></ul><ul><li>Our Mission </li></ul><ul><li>Provide Quality Products </li></ul><ul><li>Excel in Customer Service </li></ul>
    7. 7. Navajo FlexCrete Processing BATCHING CURING DEMOLD SAWING CONSTRUCTION = HOME
    8. 8. Green Building Industry <ul><li>Market Study and Trends </li></ul><ul><li>A study published by McGraw-Hill Construction and the National Association of Home Builders (NAHB) is reporting that interest in the Green Building Materials Industry grew by 20% in 2006 and will see another 30% in 2007. The report is also projecting the industry will grow to be a $38 Billion Dollar industry by the year 2010. </li></ul><ul><li>Many municipalities across the nation are requiring “Leadership in Energy and Environmental Design” (LEED) certification to make their communities more sustainable. Cities like Scottsdale, Arizona and Santa Fe, New Mexico are passing codes and incentives to “Build Green”. </li></ul><ul><li>The Energy Conscience Consumers </li></ul>
    9. 9. Sustainable Design <ul><li>Sustainable design (also referred to as &quot;green design&quot;, &quot;eco-design&quot;, or &quot;design for environment&quot;) is the art of designing physical objects and the built environment to comply with the principles of economic , social , and ecological sustainability . It ranges from the microcosm of designing small objects for everyday use, through to the macrocosm of designing buildings, cities, and the earth's physical surface. It is a growing trend within the fields of architecture , landscape architecture , engineering , graphic design , industrial design , interior design and fashion design . </li></ul><ul><li>The essential aim of sustainable design is to produce places, products and services in a way that reduces use of non-renewable resources , minimizes environmental impact, and relates people with the natural environment. Sustainable design is often viewed as a necessary tool for achieving sustainability . </li></ul><ul><li>Green design is considered a means of reducing or eliminating environmental impacts while maintaining quality of life by using careful assessment and clever design to substitute less harmful products and processes for conventional ones. </li></ul><ul><li>Sustainable Design….Sustainable Development….Design with Nature Environmentally Sensitive Design….Holistic Resource Management ….Green Architecture….what ever it is you term it, it is the same concept. </li></ul>
    10. 10. Traditional Sustainable Model
    11. 11. Traditional Pillars of Sustainable Design Triple Bottom-Line <ul><li>Economics </li></ul><ul><ul><li>Are the Local economies built in. </li></ul></ul><ul><ul><li>Local opportunity, access, longevity. </li></ul></ul><ul><ul><li>How can Critical Mass be achieved. (people) </li></ul></ul><ul><li>Environment </li></ul><ul><ul><li>Preservation of natural environment </li></ul></ul><ul><ul><li>Limited impact resources </li></ul></ul><ul><ul><li>Connectivity with open space/outdoors. </li></ul></ul><ul><li>Social </li></ul><ul><ul><li>Social network for sense of community. </li></ul></ul><ul><ul><li>Limited strain on social programs and resources. </li></ul></ul><ul><ul><li>Inclusive of all users. </li></ul></ul>
    12. 12. Native American Cultural Philosophy <ul><li>The Navajo Culture promotes a philosophy “ Hozhoogo Nashaa Dooleel ”. The meaning translates to “May I walk in beauty, harmony and balance with my surroundings”, and is a philosophy aligned with the core principles of Sustainable Design . </li></ul><ul><li>The cultural philosophies of many Native Peoples and the core principles of Sustainability reemphasize a foundation that has been there all along. This just needs to be underscored by our planning and development. </li></ul>
    13. 13. Navajo Sustainability
    14. 14. Native Peoples View of Sustainable Design Quadruple Bottom-Line <ul><li>Economics </li></ul><ul><ul><li>Are the Local economies built in. </li></ul></ul><ul><ul><li>Local opportunity, access, longevity. </li></ul></ul><ul><ul><li>How can Critical Mass be achieved. (people) </li></ul></ul><ul><li>Environment </li></ul><ul><ul><li>Preservation of natural environment </li></ul></ul><ul><ul><li>Limited impact resources </li></ul></ul><ul><ul><li>Connectivity with open space/outdoors. </li></ul></ul><ul><li>Social </li></ul><ul><ul><li>Social network for sense of community. </li></ul></ul><ul><ul><li>Limited strain on social programs and resources. </li></ul></ul><ul><ul><li>Inclusive of all users. </li></ul></ul><ul><li>CULTURAL </li></ul>
    15. 16. TRIBAL HOUSING MARKET (1500 - 2500 SF HOMES): <ul><li>The Navajo Housing Authority is transitioning to building primarily with Navajo FlexCrete products. </li></ul>
    16. 17. CUSTOM HOME / GREEN CONSUMER (3000 - 6000 SF HOMES): <ul><li>Santa Fe & Albuquerque, NM </li></ul><ul><li>Scottsdale, AZ </li></ul><ul><li>Arizona, New Mexico, Utah, </li></ul><ul><li>Colorado and Nevada Markets </li></ul>
    17. 18. GREEN CONSUMER <ul><li>REDUCED impact on </li></ul><ul><ul><li>Timber Reserves </li></ul></ul><ul><ul><li>Water </li></ul></ul><ul><ul><li>Fuel </li></ul></ul><ul><li>Average home = 21 tons of fly ash </li></ul><ul><li>Otherwise disposed of in landfill. </li></ul>
    18. 19. COMMERCIAL MARKET <ul><li>Commercial Applications </li></ul><ul><li>Thin Un-reinforced Panels </li></ul><ul><li>Exterior Wall Cladding </li></ul><ul><li>Renovations </li></ul><ul><li>EIFS Replacement </li></ul><ul><li>4” Mega Block - Party Wall Assembly </li></ul><ul><li>Fire Walls </li></ul><ul><li>Sound Walls </li></ul>
    19. 20. COMMERCIAL MARKET INNOVATIONS <ul><li>Commercial Block </li></ul><ul><li>Thin Un-reinforced Panels </li></ul><ul><li>Reinforced Panels </li></ul><ul><li>Premium Panels - 2011 </li></ul>
    20. 21. Two (2) LEED points are offered for projects using recycled content. NFBB would material would qualify for both categories. Materials & Resources Credit 4.1 & 4.2 - Recycled Content: 10% / 20% (Post-Consumer / Pre-Consumer). Navajo FlexCrete products are made with a 60% Fly Ash content. Fly Ash is a by-product of the coal burning process. Navajo Generating Station is the source our Fly Ash and is located three (3) miles from our manufacturing plant.
    21. 22. 500 Mile Radius Page, AZ Two (2) LEED points are offered for projects using building materials manufactured within 500 miles of the project area. Materials & Resources Credit 5.1 & 5.2 - Regional Materials: 10% / 20% Extracted, Processed and Manufactured. N Not to Scale
    22. 23. GREEN INNOVATIONS & PARTNERSHIPS Project published in “ Blueprint for Greening Affordable Housing ”
    23. 24. GREEN INNOVATIONS & PARTNERSHIPS
    24. 25. ENERGY CONSUMPTION PER WALL TYPE
    25. 26. Southwest Traditional Log Homes Mirrorseal Navajo FlexCrete Sips Structures ASU Photovoltaic Laboratory U of A Environmental Research Laboratory Alter Air
    26. 27. Energy Modeling Analysis
    27. 28. 2007 Valley Forward Environmental Excellence Crescordia Winner for Single Family Residence
    28. 29. 2007 Arizona Governor’s Awards <ul><li>Innovation Award – Navajo FlexCrete Building Systems </li></ul><ul><li>Housing Hero Award - ASU Stardust Center for Gaudalupe House </li></ul>
    29. 30. Navajo FlexCrete utilizes Team of Consultants <ul><li>Felipe Babbitt, P.E., Principal - Babbitt Nelson Engineering, LLC </li></ul><ul><li>15 years of experience in the field of Structural Engineering </li></ul><ul><li>Mr. Babbitt is a pioneer in introducing Autoclaved Aerated Concrete (AAC) products to the US. </li></ul><ul><li>Mr. Babbitt was part of the ASTM committees in charge of developing standards for AAC that include ASTM C1386 and C1555. </li></ul><ul><li>Mr. Babbitt is a co-author of ACI 530-05 (masonry code book) and was a committee member of the Masonry Standard Joint Committee chairman of the technical committee for the Autoclaved Aerated Concrete Product Association (AACPA) from 2004 to 2006. </li></ul><ul><li>Dr. Barzin Mobasher, Professor – Arizona State University Engineering Research Center </li></ul><ul><li>Our goal is to create new and improved systems which are environmentally, and economically superior. Focus on processing, characterization, modeling, and performance of structural materials. </li></ul><ul><li>With more than twenty years of research experience through contracts and grants with National and International organizations including NSF, FAA, DOT, and a variety of Industrial entities Dr. Mobasher has published more than 80 papers in various journals, and conference proceedings and delivered more than 120 technical presentations worldwide.   </li></ul><ul><li>Ryan Dale, V.P. of Operations – AAC Structures of Arizona, LLC </li></ul><ul><li>Former Plant Manager of E-Crete AAC Plant with over 12 years of experience in the AAC industry. </li></ul><ul><li>Partner / V.P. of the largest, most qualified AAC contractor in the Southwest. </li></ul>
    30. 31. NHA Production Homes
    31. 49. <ul><li>Custom Home in SEDONA, AZ </li></ul><ul><li>2,500 SF - June 2009 </li></ul>
    32. 50. <ul><li>Custom Home in TUCSON, AZ </li></ul><ul><li>3,500 SF - July 2009 </li></ul>
    33. 60. <ul><li>Custom Home in TUCSON, AZ </li></ul><ul><li>7,500 SF - August 2009 </li></ul>
    34. 75. Green Building Tips <ul><li>Being Green </li></ul><ul><li>First, a little self-assessment is in order. Ask yourself, how green am I? There are many shades of green, each with their own motivations and levels of commitment. Are you interested in: </li></ul><ul><li>Building homes that make the best use of energy resources? </li></ul><ul><li>Durability? </li></ul><ul><li>Producing less material waste? </li></ul><ul><li>The broader environmentally based philosophies that green building relates to? </li></ul><ul><li>Take a look at the technologies that you regularly feature in your building projects. Do any of them align with any of the principles of green building described above? If so, consider highlighting the green aspects of your current practices in your marketing and advertising efforts. If customers appreciate these benefits, then you can start using additional products that provide similar benefits. </li></ul>
    35. 76. Green Building Trends <ul><li>Low or No-VOC Paints: While many paints contain high-levels of volatile organic compounds (VOCs) that diminish air quality and may be detrimental to the health of those who breath them, alternatives are now available that release little or no VOC pollutants. These latex-based paints are durable, cost the same as paints that contain VOCs, are high quality, and do not contaminate a home's air supply. </li></ul><ul><li>Cement substitutes: According to Environmental Building News, the annual US production of cement creates as much greenhouse gases as the operation of 22 million compact cars. But by-products of other energy processes exist that can be efficiently used to create environmentally friendly alternatives to cement. Fly ash, slag, silica fume, and rice hull ash are gaining popularity among builders due to their strength, durability and low-toxicity. </li></ul><ul><li>Plumbing Manifolds: Manifold plumbing systems are control centers for hot and cold water that feed flexible supply lines to individual plumbing fixtures. Easy to install, they also reduce heat loss and provide steady water pressure and faster hot water delivery. </li></ul><ul><li>Bamboo Flooring: A plentiful natural resource, bamboo is gaining popularity among many builders due to its durability and attractiveness. Because bamboo grows very quickly, it is a more easily renewable resource than hardwood. Although all bamboo flooring used in the US is imported from the Pacific Rim, it can be readily delivered to US job sites within a few days. </li></ul><ul><li>Rainwater harvesting: Water is a valuable commodity. Collecting and reusing rainwater for landscape irrigation saves money and reduces the demand on the water supply </li></ul>
    36. 77. Bringing Green to the Masses <ul><li>Prove Green Building can be AFFORDABLE. </li></ul><ul><li>Sustainable Community Design </li></ul><ul><ul><li>Cluster Development </li></ul></ul><ul><ul><li>Higher Density </li></ul></ul><ul><ul><li>Culturally Appropriate / Paradigm Shift away from scattered sites. (too costly) </li></ul></ul><ul><li>Master Planned Communities – Large Scale Production </li></ul><ul><ul><li>Economics </li></ul></ul><ul><ul><li>Environment </li></ul></ul><ul><ul><li>Social </li></ul></ul><ul><ul><li>Culture </li></ul></ul><ul><li>Use LEED Certified Professionals for Development </li></ul><ul><ul><li>Architects, Planners and Engineers </li></ul></ul><ul><ul><li>Contractors engaged in green projects </li></ul></ul>
    37. 78. Site Plan Master Planned Community – Site Design Example
    38. 79. Low Income Product Medium Income Product Market Rate Product High End Market Product Mixed Use High Density Product Residential Examples of the types of Product Mix that can be introduced into new Master Planned Communities. Mixed Use Housing Types
    39. 80. Parks Open Space Trails Streetscape Green Ways / Open Space Community Character
    40. 81. Master Planned Communities Example

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