Pennsylvania College of Technology-2016 4 Year RCMC Packet.old

Pennsylvania College of Technology
Four Year Program, 2016 RCMC

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Executive Summary
Within Frederick , Maryland lies 147 acres preapproved for a 441 dwelling
development. Members of the project development team have located this plot
and prepared the following proposal as to why this would be an ideal
investment strategy for Independence Developers.
The team has concluded based off the geographic location and demographics
that constructing 200 townhomes, 114 cottages, 112 single family homes, and
15 estate home will provide us with a return on investment of $41,562,250.
Independence Developers will need to use $16,096,014 of our own capital and a
loan of $89,484,123 to break ground on the project. The development team has
estimated that duration Tallyn Ridge will take 78 months to construct. At
52nd month, Independence Developers will breakeven on our investment on
the property.
With the resources Independence Developers possesses, we plan to construct
our first sustainable development in Maryland, Tallyn Ridge. Tallyn Ridge will
embrace the founder’s ideal of “Giving freedom back to the homeowner”
through revolutionary building science studies and emplacing these techniques
to build more air tight and efficient dwellings.

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Kyle Csorba
Team Manager
B.S. in Residential Construction
Technology & Management
Ben Thayer
Build Science Specialist
Bob Jackson
Project Manager
Edgar Sepulveda
Lead Architect
Matthew Jurado
Financial Manager
B.S. in Accounting
Ray Sassaman
Site Manager
B.S. in Civil Engineering Technology

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Assumptions
 Construction will begin on time without delays.
 The duration of the project will continue without any delays due to legal,
code and safety violations.
 Construction materials will be able to be acquired and shipped to site.
 There will be enough crews to be hired for construction to be preformed
throughout the duration of the project.
 All waste on site can be properly removed and free from any hazardous
waste.
 All utilities running to the site do not need to be adjusted and can meet the
demand of the development.
 All construction fees will remain at the same standard throughout the
duration.
 Cost for materials and labor will maintain the same rate throughout the
duration of the project.
 Loans and other financial means are able to be acquired by Independence
Developers to fund the project.
 Tax credits for energy efficiency that are due to expire over the next 5 years
will be renewed.
 Electric companies will buy back any extra electricity produced by the
homes on site and the natural gas generator.
 Each phase will begin on the predicted date without delay.

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Table of Contents
History of Frederick, Maryland
Demographics
Local Area/Attractions
Target Market
SWOT Analysis
Site Overview
Costs
Community Center Overview/Cost
Earthwork
Stormwater Management
Utilities
Green Initiatives
Overview
Phase 1
Phase 2
Phase3
Phase4
Overview/Construction Costs
Cottage Design
Townhome Rear Loaded Design
Townhome Front Loaded Design
Single Family Detached Design
Single Family Attached Design
Estate Design
Option Packages
HOA Description
Community Center

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Off-Site Construction
On-Site Construction
Products
Certifications
Tuscarora Creek
Greentree Homes
Villages of Urbana Development
NV Homes
Ryan Homes
Clover Ridge
Drees Homes
Marketing Strategy
Sale’s Strategy
Loan Analysis
Realistic Pro Forma
Optimistic Pro Forma
Conservative Pro Forma
Breakeven
Risk Analysis
Withdraw Strategies

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Market
Analysis
 History of Frederick, Maryland
 Demographic
 Local Area/Attractions
 Target Market
 SWOT Analysis

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History of Frederick, Maryland
Frederick is the second largest city in Maryland and is located about an hour from the
Washington D.C. and the Baltimore metropolitan areas. As of the 2010 census, 65,239
people reside within the city of Frederick, while an
estimated 243,675 live in the surrounding county of
Frederick. Frederick offers a balanced and thriving
economy, a highly educated workforce, and a
quality of life that is nothing short of enviable.
Founded in 1745 by German settlers, Frederick is a
city rich in heritage, opportunity, and innovation.
Frederick is also steeped in Civil War history as it was briefly named as Maryland’s capital
after legislatures moved to vote on the possibility of seceding. The city saw considerable
fighting throughout the Civil War as it was a major crossroad. It was occupied by both the
Confederate and Union troops during the war’s duration. Due to it’s heavy involvement, the
National Museum of Civil War Medicine is located within the city.
Today, Frederick’s award-winning 40-
block historic district, parks,
neighborhoods and diverse industry base
offer residents and visitors a unique
blending of history and technology. On
22 weekends each year, downtown
Frederick and the neighboring 54 acres of
Baker Park play host to special events
which include weekly summer concerts,
monthly gallery walks, children’s
theatrical performances, and other events
which celebrate the season.
MarketAnalysis

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Demographics
More than a quarter of all residents in
Frederick commute 45+ minutes to
work. In addition, more than 43% of
Frederick residents make in excess of
$75,000 per year. Nearly 50% of
Frederick residents are married. This
gives proper credence as to the notion
that Frederick is a family oriented
community. This is how we determined
our target market of mid aged families
that make a bare minimum of $75,000 a
year. Tallyn Ridge will be driven with a
family oriented concept, with direct
access to the adjacent park.
Tallyn Ridge will also encompass sustainable and energy efficient development aspects.
Recent national and local housing trends suggest the need to implement green housing
initiatives. Studies conducted by the NAHB specifically highlight the advantages of utilizes
green technologies in the sale of new developments.
Beginning to implement new
home construction that are
more energy efficient will
drastically reduce the
consumption used in the area.
By Tallyn Ridge being the
most sustainable development
in the area, it will appeal to
those who are looking to
reduce their carbon footprint
and preserve the
environment. With the
purchase of a Independence Developer home, not only will the homeowners reap the
benefits, the community will become a healthier place to live. The demand for sustainable
homes in the Mid-Atlantic region is on the rise and is the direction the market is expected to
move over the next few decades.
MarketAnalysis

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Local Area/Attractions
Within the county lines of Frederick,
Highway 70, 270 and Route 15 all
intersect in the heart of Downtown
Frederick. With the quick avenues of
travel it allows access to major cities such
as Baltimore, Washington DC, and
Townson.
By the town of Frederick lies 4 high
schools, 3 middle schools, and 3
elementary schools. It hosts 3 colleges,
Frederick Community College, Hood
College, and Mount St. Mary’s University.
In addition to the highly regarded education systems in the area, Fort Detrick , the home to
the U.S. Army Medical Research and Material Command, resides in Frederick. Over the
years, Frederick has built up its retail business with locally owned business and the Francis
Scott Key Mall.
Downtown Frederick is known for its strong community presences hosting a variety of
events throughout the year. These events promote involvement within the community and
ideal for young families who are looking for an active lifestyle. Along with the community
events, Downtown Frederick has an abundance of shops, restaurants, and historic buildings
available for the public.
MarketAnalysis

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Target Market
In order to establish a targetable income
range for our units, we utilized a financial
calculation, known as, PITI, to establish
whether or not a potential buyer will qualify
for a prime mortgage with 20% down. We
strive for our potential buyers to attain an
optimal PITI for the sustainability aspect of
the development. In addition to financial
parameters, our target market will also
heavily encompass commuters,
environmental conscience individuals, and
families. Our development will primarily
target families looking to relocate out of the cities of Baltimore and Washington DC. The
Frederick area’s high population of families indicates that Tallyn Ridge can acquire the
target market we are planning to attract.
Estate: Our ideal target market for our estate style homes will earn in excess of $225,000 a
year. This will ensure continued affordability for our customers in the long run. Mid aged to
older families with children will enjoy the multitude of bedrooms and bathrooms the
Estates offer. The large floor plan and outdoor living also allows the homeowner to
entertain friends and extended families.
Single Family Homes: Our single family homes are most ideal for those that make in
excess of $150,000 a year. Our 4 bedroom floorplan will appeal to younger and older families
alike. It offers plenty of space for families to growth and stay financial stable with a low
expense home.
Townhomes: For our townhomes, we intend on targeting those that make in excess of
$100,000 a year. The townhomes 3 bedroom design and affordable price will attract young
families and commuters. It is an ideal purchase for those who wish to own a home of their
own but wish to do little maintenance.
Cottage: Our idyllic target market for the cottages will be those who make in excess of
$75,000 a year. The two bedroom design will enable starting families and green conscious
buyers to live affordably. We anticipate many of the cottages will be purchased by local
landlords in order to capitalize on potential rent revenues.
MarketAnalysis

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MarketAnalysis
SWOT Analysis
Strengths
 Green Initiatives
 Value in Comparison to Competition
 Cost Savings Potential
 Tax Benefits
 Location
Weakness
 Site Development
 Tallyn Ridge’s site has been preapproved. Although this does mean
construction can be quicker, it does not allow Independence Developers to
design the site the way we would prefer.
 Heavily Reliant on Families
 Since families are the primary target market, the biggest drawback could
be a limited desire for our homes by families.
 Lengthy Development Plan
 Due to the size of the size and the attention to energy efficiency, it will
take a projected X to complete the development.
Opportunities
 Strong Market Conditions
 Commuters
 Sustainable Appeal
Threats
 Rapid Obsolescence of Sustainable Technologies
 Since building science is beginning to see more attention, improvements in
products and systems may occur during construction or after the
completion of Tallyn Ridge.
 Opened Land that has the Potential to be Developed
 Although Frederick has a high population, it is surrounded by fields that
have the potential to turn into other developments in the near future.
This will lead to a stronger competition pool that we will have to face.

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Site
Development
 Site Overview
 Costs
 Community Center Overview/Costs
 Earthwork
 Stormwater Management
 Utilities
 Green Initiatives

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Site Overview
The proposed area of development currently owned by MS Gladhill Farm, LLC is composed
of 441 residential plots just along Reichs Ford Road in Frederick County, Maryland. The
site is located approximately 40± miles northwest of Washington D.C. and 41± miles west
of Baltimore, Maryland. The site contains approximately 154.58± acres, of which 146.62±
acres are designated under the Planned Urban Development (PUD) zone and 7.96± acres
under the AG zone. The site is easily accessed from Reichs Ford Road off of Interstate 70.
Onsite, there are roughly 90 ± acres of open and tillable land, with the remaining being
moderately to densely forested on steep slopes. Elevations on the site range from approxi-
mately 330± feet above Mean Seal Level (MSL) near the entrance off of Reichs Ford Road,
to approximately 430± MSL near the western boundary of the site.
SiteDevelopment

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SiteDevelopment
Costs
Item Quantity Unit Unit Price Sub Total
Miscellaneous Costs
Frederick County Fees 1 LS $750,000.00 $750,000.00
Builder Fees-Townhomes 200 EA $37,872.00 $7,574,400.00
Builder Fees-Single Family 241 EA $37,898.00 $9,133,418.00
Miscellaneous Total: $17,457,818.00
Site Development Costs
Mobilization 1 LS $1,050.00 $1,050.00
Soil Erosion and Sediment Control 57.22 AC $3,963.96 $226,817.79
Grading 98.80 AC $6,392.83 $631,612.00
Net Fill 15,588.00 LCY $1.98 $30,879.83
Environmental Cleanup 1 LS $1,018.04 $1,018.04
Tree Clear/Grubbing 11 AC $4,205.42 $46,259.60
SESC Excavation 5,700 BCY $2.09 $11,930.10
Utility Trenching 14560 BCY $1.31 $19,059.04
Site Development Total: $968,626.39
Road Costs
Subbase (4”) 7,165.40 CY $1.83 $13,091.18
Superpave Base Course (3”) 5,374.05 CY $39.05 $209,872.62
Superpave Intermediate Course (2”) 7,082.99 TONS $51.57 $365,262.71
Superpave Wearing Course (1.5”) 6760.55 TONS $49.50 $334,626.94
Curb and Gutter 45,142 LF $17.40 $785,561.08
Road Improvements 1 LS $261,600.00 $261,600.00
$1,970,014.53Road Total:
Stormwater Management Costs
Storm Drains
42” RCP 844 LF $70.04 $59,115.45
36” RCP 803 LF $59.06 $47,424.38
30” RCP 988 LF $46.98 $46,413.28
24” RCP 2,879 LF $37.43 $107,758.09

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Costs
SiteDevelopment
Item Quantity Unit Unit Price Sub Total
18 “ RCP 2,254 LF $29.92 $67,435.17
15”RCP 7,408 LF $26.71 $197,882.50
15” PVC 337 LF $30.71 $10,348.93
12” PVC 30 LF $17.86 $535.92
8” PVC 85 LF $9.89 $840.74
Inlets 126 EA $757.09 $95,392.71
Manholes 41 EA $1,394.63 $57,179.87
Endwalls 4 EA $469.89 $1,987.55
Detention Ponds 4,285.93 CY $9.52 $40,802.05
Stormwater Management Total $733,802.05
Utilities
Water Line (8”) 33,356.35 LF $18.87 $629,267.54
Water Line (6”) 9 LF $14.46 $130.10
Valve (8”) 331 EA $423.50 $140,178.50
Valve (6”) 34 EA $310.10 $10,543.40
Waterline Fittings 261 EA $257.53 $67,214.25
Pressure Reduction Valve & Vault 1 EA $24,500.00 $24,500.00
Fire Hydrants 34 EA $1,823.12 $61,985.91
Sewer Line (8”) 18,158 LF $45.81 $831,781.66
Force Main (3”) 717 LF $12.15 $8,707.97
Force Main (2”) 65 LF $8.71 $566.02
Force Main (1.25”) 51 LF $7.29 $371.64
Natural Gas Line 41,436.6 LF $3.55 $147,074.74
Electrical Line 36,574.4 LF $3.21 $11,257.53
Communication Line 34,280.50 LF $2.30 $78,708.03
Manholes 165 EA $776.29 $128,088.35
Grinder Pump 12 EA $222.57 $2,670.78
Lift Station 1 LS $600,000.00 $600,000.00
$2,849.046.40Utilities Total:

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Item Quantity Unit Unit Price Sub Toal
Signage, Paint and Lighting Costs
Street Lightining 481 EA $254.96 $122,636.24
Traffic/Street Signs
R1-1 55 EA $71.23 $3,917.76
R2-1 5 EA $55.29 $276.47
R4-7a 2 EA $55.29 $110.59
R14-1 66 EA $55.29 $3,649.34
W1-2 4 EA $97.00 $268.02
R4-7 1 EA $55.29 $55.29
D3-1 102 EA $63.26 $6,452.42
Pavement Markings 73,355.75 LF $.00011 $1,119.50
Signage, Paint and Lightning Total: $138,485.62
Sidewalks
Concrete Sidewalks 20,428.33 SY $8.51 $173,742.95
Pedestrian Walks/Bike Pathways 1,614.22 SY $8.51 $13,728.96
Paved Hiking Path 3,381.92 LF $6.77 $22,892.22
Bicycle Racks 26 EA $84.00 $2,184.00
ADA Ramps 45 EA $455.00 $20,475.00
Sidewalks Total: $233,023.12
Landscaping
Shade/Ornamental Trees 947 EA $59.50 $56,346.50
Evergreen Trees 312 EA $73.50 $22,932.00
Shrubs 319 EA $17.50 $5,582.50
Seeding 26 LS $660.88 $17,182.80
Planting Beds 14,700 SY $12.34 $181,412.70
Benches 100 EA $35.00 $3,500.00
$286,956.50Landscaping Total:
Costs
SiteDevelopment

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Costs
SiteDevelopment
All Totals
Miscellaneous $17,457,818.00
Site Development $968,626.39
Roads $1,970,014.53
Stormwater Management $733,116.63
Utilities $2,849,046.40
Signage, Paint, and Lighting $138,485.62
Sidewalks $233,023.12
Landscaping $286,956.50
Future Community Center $1,238,129.49
Grand Total $25,878,216.70
Average Cost per Lot $58,680.76
SiteDevelopment

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Community Center Overview & Costs
The future HOA funded recreational facility/community center is a 12,000 square foot steel
pre-engineered building which will be contracted to a design-build contractor by the HOA.
The proposed location for the facility is conveniently located along Pine Bluff Road on the
southwestern portion of the site and is proposed to be within the AG zoning designation.
Preliminary engineering estimates approximate that the cost of the building will be between
$1.61M to $2.31M, depending upon facility specifics, design standards and assuming a zon-
ing variance would be granted. It is anticipated that the facility will take less than 1 acre
from the open space and earth disturbance would be limited to 1± acre. Estimated costs for
construction include:
SiteDevelopment
Item Cost
Earthwork $6,400-9,100
Building
$1,236,000-
1,764,000
Paving
$301,554-
430,650
Curb and Gutter
$15,660-
22,374
Concrete Sidewalk $1,700-2,430
Utilities
$55,313-
78,975
Total $1,616,627-
2,307,529
As mentioned later, the Community Center will be designed and built by Morgan Keller
Construction. The project will be funded by the HOA fees accrued over the years of the
development. The Primer Management Group and Morgan Keller Construction will
establish a date when ground will break on the construction of the Community Center.

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Earthwork
According to a NRCS Web Soil Survey, the soil within the boundary of the site consists pri-
marily of channery loam materials and classified as silty sand. Concrete slabs-on-grade sup-
ported by a layer of 4-inch granular material covered with a polyethylene vapor barrier
were recommended for floor slabs. Recommendations and considerations were provided in
the Report of Preliminary Geotechnical Exploration conducted by Geo-Technology Associ-
ates, Inc (GTA). GTA also suggests that shallow spread footing may be used to support
foundations and can be designed for net allowable bearing pressure of 1,500 psf to 2,500 psf
bearing on natural or controlled soils, and 3,500 psf to 5,000 psf bearing on weathered rock
.
Surface and subsurface drainage also appear to be adequate. Final grades should be estab-
lished with the notion in mind to provide adequate surface drainage away from the founda-
tion as to prevent upheaval and movement of the slab-on-grade.
The majority of the on-site soils that will be excavated are suitable to be reused as a fill ma-
terial. Soils with a medium or high plasticity were observed in some areas on the site sug-
gesting that caution be used during the placement of these soils to avoid their use for direct
foundation or pavement support. Controlled fill should be used when applicable for founda-
tion or pavement support. According to the report, borrow should be dry and meet the re-
quirements of ASTM designation SM (silty sand), have a liquid limit of 40 percent or less, a
plasticity index of 15 percent or less, maximum grain size of less than 4 inches, being free of
any organic material and meet the approval by the geotechnical engineer.
The existing topography of the site will need to be altered to reach final grades. Proposed
final road grades and parallel bike/walkways (where applicable) were kept to a minimum
whenever possible, however some areas of the site reached a maximum of 12.45%. Although
the 100± foot elevation change on the property was not fully encountered within the extent
of the earthwork, an imbalance of fill material was calculated. To compensate for the defi-
cit, borrow material meeting the requirements of the geotechnical report will need to be im-
ported from an off-site location. The geotechnical report also indicated that any unstable
soils that may be encountered during construction will also have to be undercut to stable
soil and replaced with controlled fill material. The main intent of the final grading is to
maintain as much natural drainage as possible. With that in mind, the environmental site
design utilizes post-development stormwater drainage best management practices such as
bio-swales, submerged gravel wetlands, bio-retention ponds and permeable pavement.
SiteDevelopment

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Stormwater Management
According to the topographic map, there are 7 main drainage areas on the site in the
existing conditions. The majority of the existing drainage features merge to form small
tributaries and lead to ponds and wetlands on the site.
The proposed conditions continue to utilize the existing tributaries and ponds on the site.
There are 11 main drainage areas that are managed through the combined use of
stormwater drain pipes and other natural drainage features such as bio-swales, submerged
gravel wetlands, bio-retention ponds and permeable pavement. The continued use of the
existing ponds and natural drainage features does not only save time and money, as well as
promoting sustainability within the development and helping to mitigate the thermal
impacts to receiving waters by slowing down the flow of stormwater throughout the site.
The usage of the ponds for stormwater incorporates Tallyn Ridge’s sustainable approach to
sustainable construction by using and preserving natural water drainage features existing
on the site. Using these ponds to collect the stormwater is not only be sustainable but will
add a design feature for the whole development to enjoy.
SiteDevelopment

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Utilities
The utilities proposed to serve Tallyn Ridge will be provided by the municipality and local
providers. The project will be have water and sewer service provided by a network of both
public and private lines and connections.
As per the Frederick County Adequate Public Facilities Letter of Understanding, multiple
conditions were proposed to mitigate the burden on existing facilities due to the addition of
the Tallyn Ridge development on the systems. In the letter, the Frederick County Division
of Utilities and Solid Waste Management (DUSWM) deemed the Project to be conditionally
approved for water and sewer service. Water and sewer classification at the property is W4/
S4 and in Pressure Zone 2. Extensions and improvements to the existing water and sewer
utilities will be required to support the development. Utility construction must meet the
requirements of the Frederick County DUSWM, Division of Engineering and Planning.
Water
According to the conditional approval, the existing water distribution and treatment
system is considered to be adequate to provide service connections to Tallyn Ridge.
Conditions to the approval include constructing an extension to the finished water piping
from the Zone 2 water main. The extensions will be located at the end of Pinecliff Park
Drive, as well as from the River Oaks development, and will include constructing pressure
reducing valves at the end of the main line.
Sewer
According to the conditional approval, the existing Ballenger-McKinney Wastewater
Treatment Plant is considered to have adequate capacity to serve public sanitary sewer
lines and connections to Tallyn Ridge. Under the conditions, a sewage pump station will
have to be constructed to provide an operational capacity equaling that of Tallyn Ridge,
plus 15% of the Frederick County reservation to use in the event of a health emergency or
excess public need. The pump station is estimated to cost $600,000 to connect to the
existing sanitary sewer system.
Electric
The electric, if used, will be provided to the Tallyn Ridge development by Potomac Edison
Electric, a FirstEnergy Company.
Communications
Communications that will be available will include cable (TV and Internet) and telephone.
Cable will be provided by Comcast, while Verizon will provide for the telephone
connections.
Natural Gas
A natural gas easement runs on the property. This natural gas transmission line, by
Washington Gas, will be able to provide Tallyn Ridge with the natural gas needed to
support a natural gas generator that will produce the electricity and heat for the
development.
SiteDevelopment

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Green Initiatives
As per Maryland’s Department of the Environment, stormwater management must be
regulated for the offsite discharges of stormwater. These regulations require the site to have
an environmental site design (ESD) to mimic the runoff characteristics of the site as if it
were covered with woods in good condition. Environmental site design includes strategies
and features which are meant to mimic the natural hydrologic condition of the site. When
the site design decreases the all of these natural features are exhausted, the use of structural
best management practices (BMPs) may be used to further manage the stormwater.
An ESD also includes the stormwater to be micro-managed, meaning it will provide
treatment of stormwater close to the source of the runoff. The micro-management of a site
will incur the creation of many micro-drainage areas on the site. A site as large as Tallyn
Ridge results in the creation of numerous ESD structural BMPs.
The proposed structural BMPs help to the control the stormwater throughout the site when
natural hydrologic conditions cannot be met. Such BMPs like submerged gravel wetlands,
drywells, micro-bioretention basins, permeable pavement and bio swales, handle additional
stormwater discharges that are created from the increase in impervious area.
The environmental site design, along with other site features, help to increase the
sustainability of a site. According to a publication by the City of Portland’s Environmental
Services, there are three principle guidelines to follow for a sustainable site development,
especially in stormwater practices. Sustainability guidelines to develop urban environments
follow a design that avoids impacting already natural resources, promotes natural
hydrologic conditions in the development and also promotes healthy waterways through
discharging quality stormwater runoff (“Sustainable Site Practices”, pg. 3)
As used in the proposed site design, to increase the sustainability of a site in stormwater
management practices, various actions may be taken. Actions to increase a site’s
sustainability include those which micro-manage the drainage areas, supports native and
abundant trees and vegetation and creates vegetative buffers along waterways, reduces the
impervious areas, maintains floodplains and wetlands and prevents and controls erosion and
pollution of sediment. Many of these actions have been used in the proposed site design for
Tallyn Ridge and can be accomplished by following the use of best management practices
that are typically standardized by Maryland’s Department of the Environment.
SiteDevelopment

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Phasing
 Overview
 Phase 1
 Phase 2
 Phase 3
 Phase 4

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Overview
The construction will begin in the southwestern portion of the proposed site, closest to the
access off of Reichs Ford Road, and gradually continue to the northeastern portion in a 4-
phase development. The site is designed to prevent interference of construction activities
between the builders and residents. It is also organized to minimize the number of occupied
dwelling units that are facing active construction . The overall phasing duration will
expand over a 78 months. Independence Developers will be able to reach our 78 month goal
by beginning the next phase at the end of home construction in the previous phase. This
allows for the equipment to stay on site and be in constant use. It also compresses the
schedule’s duration from 108 months to our desired 78 month plan.
Phasing

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Phase 1
This phase begins the construction and will provide a
choices for 5 out of the 6 types of building lots that will
be available to prospective buyers. Approximately 26%
of the lots will be constructed over 27 months to include
 41 single-family detached
cottage lots
 17 single-family attached
(front loaded) lots
(rear loaded) lots
(front loaded) lots
(rear loaded) lots
Phasing
Task Name Duration Start Finish
Phase 1 Notice to Proceed 1 Day 4/1/16 4/1/16
Mobilization 2 Days 4/4/16 4/7/16
Environmental Cleanup 5 Days 4/4/16 4/8/16
Tree Clearing/Grubbing 6.5 Days 4/6/16 4/13/16
Rough Grading 7 Days 4/13/16 4/21/16
Lot Survey/Stakeout 16 Days 4/6/16 4/27/16
Soil Erosion and Sediment Control
Installation
3 Days
4/13/16 4/15/16
Home Construction 390 Days 4/27/16 10/25/17
Fine Grading 15 Days 10/25/17 11/15/17
Pump Station Construction 180 Days 4/25/16 1/2/17
Off-Site Improvemetns 107 Days 4/1/16 8/31/16
SESC Excavation 6.5 Days 11/15/17 11/24/17
Curb and Gutter Constuction 29.5 Days 11/15/17 12/27/17
Sidewalk/Pathway Construction 17 Days 11/15/17 12/8/17
Utility Earthwork 16 Days 11/15/17 12/8/17
Stormwater Utility Construction 66 Days 12/8/17 3/12/18
Water/Sewer Utility Construction 86 Days 12/8/17 4/9/18
All Other Utility Construction 41 Days 12/8/17 2/5/18
Roadway Construction 28.5 Days 4/9/18 5/17/18
Landscaping 11.5 Days 5/17/18 6/4/18
Street Lighting/Signage 28 Days 5/17/18 6/27/18
Phase 1 Complete 1 Day 6/28/18 6/28/18

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Phase 2
This phase is split between the eastern
and western portions of the site. One
part of this phase begins on the eastern
side of Tallyn Ridge Drive and extends
toward the north. The second part
extends the completed construction
from Phase 1 toward the north on the
western portion of the site. This phase
will provide a choices for 4 out of the 6
types of building lots that will be
available to prospective buyers.
Approximately 31% of the lots will be
constructed over a 33 month period to
include:
(front loaded) lots
(rear loaded) lots
(front loaded) lots
(rear loaded) lots
Phasing
Mobilization 1 Day 10/3/17 10/3/17
Tree Clearing/Grubbing 8 Days 10/4/17 10/13/17
Rough Grading 5.5 Days 10/16/17 10/23/17
Installation
3.5 Days
10/16/17 10/19/17
Curb and Gutter Constuction 35 Days 10/4/19 11/22/19
Stormwater Utility Construction 78.5 Days 10/31/19 2/20/20
Water/Sewer Utility Construction 102.5 Days 10/31/19 4/1/20
All Other Utility Construction 48.5 Days 10/31/19 1/2/20
Roadway Construction 34 Days 4/1/20 5/18/20
Landscaping 14 Days 5/18/20 6/4/20
Street Lighting/Signage 33.5 Days 5/18/20 7/2/20

29
Phasing
Phase 3
This phase extends toward the north
from all of the completed construction
from the previous phases. Within this
phase, the construction on the western
portion of the site will be completed.
It will also complete the remaining
amount of single-family attached lots
and will include the first few estate
lots. This phase will provide choices
for all 6 types of building lots
available to prospective buyers.
Nearly 23% of the lots will be
constructed over a 22 month period to
include:
 5 single-family estate lots
cottage lots
(front loaded) lots
(rear loaded) lots
(front loaded) lots
(rear loaded) lots
Mobilization .5 Days 8/13/19 8/13/19
Tree Clearing/Grubbing 5.5 Days 8/14/19 8/22/19
Rough Grading 4 Days 8/23/19 8/28/19
Installation
2.5 Days
8/23/19 8/27/19
Curb and Gutter Constuction 25.5 Days 12/9/20 1/14/21
Roadway Construction 24.5 Days 4/13/21 5/18/21
Street Lighting/Signage 24.5 Days 5/18/21 6/22/21

30
Phase 4
This phase completes the construction of all
the building lots and extends the construction
toward the project limits in the northeast from
the previous phase. This phase will provide a
choices for 3 out of the 6 types of building lots
that will be available to prospective buyers.
The remaining 20% of the lots will be
constructed during XX including:
 10 single-family estate lots
cottage lots
(front loaded) lots
Phasing
Mobilization .5 Days 12/3/20 12/3/20
Tree Clearing/Grubbing 5 Days 12/4/20 12/10/20
Rough Grading 3.5 Days 12/11/20 12/16/20
Installation
2 Days
12/11/20 12/15/20
SESC Excavation 5 Days 5/5/14 5/11/22
Curb and Gutter Constuction 23 Days 5/5/14 6/7/22
Utility Earthwork 12.5 Days 5/5/14 5/24/22
Roadway Construction 22 Days 8/24/22 9/23/22
Street Lighting/Signage 22 Days 9/26/22 10/26/22

31
Product
Details
 Overview/Construction Costs
 Cottage Design
 Townhome Rear Loaded Design
 Townhome Front Loaded Design
 Single Family Detached Design
 Single Family Attached Design
 Estate Design
 Option Packages
 HOA Description
 Community Center

32
Overview & Construction Costs
Estimating:
Independence Developers used the 2015 RS Means book along with custom
estimating software to determine our construction costs. These prices also have included
and a location factor applied to them. Due to our involvement across multiple states, we
used a location factor and keep a base price for ease of estimating. Each type of dwelling
was estimated based upon the quantity of material and labor hours required. The cost for
labor was the number of hours without trade overlap. Independence Developer will confirm
all bids to cost per phase before construction begins. Construction estimates may be subject
to change.
Discounts:
Due to the high amount of purchasing done by Independence Developers from
manufactures, we are expecting a reducation in prices due to the high volumes. An average
savings we expect to see is 10% on materials. This is expected from previous developments
constructed across the state of Maryland.
Scheduling:
Independence Developers used national average labor times for each phase. The
final schedule will include trade overlap, where multiple construction phases can be taking
place at the same time. Independence Developers' marketing department conducted
research to determine market absorption rate, this shows how fast the units can be erected
to command the optimum return from this development.
ProductDetails
Type of
Dwelling
Number
Constructed
Construction
Cost
Sales Price Price
per
SqFt
Total
Construction
Cost
Total Profit
Greenwell
Cottage
114 $226,189.80 $325,000 $252.92 $25,785,637.20 $11,264,362.90
Herrington
Townhome
86 $297,251.80 $450,000 $175.10 $25,563,654.80 $13,136,345.20
Cunningham
Townhome
114 $296,251.80 $450,000 $167.54 $33,772,705.20 $17,527,294.80
Lincoln 55 $350,128.38 $560,000 $191.52 $19,257,050.90 $11,542,949.10
Chapman 57 $338,493.00 $540,000 $188.42 $19,294,101.00 $11,485,899.00
Greenbrier
Estate
15 $488,905.50 $785,000 $152.13 $ 7,333,582.50 $ 4,441,417.50

33
The Greenwell Cottage
The Greenwell Cottage is a state of the art, energy efficient home. With an array of solar
panels on the roof, radiant floor heating through out and double insolated walls, this home
is sure to be a money saver. This home includes a detached garage and also an outdoor en-
tertaining patio.
ProductDetails
Upgrades Trim Appliance
Car
Charging
Station
Level 1 $712.00 $5,740.00 $2,200
Level 2 $1,112.00 $6,985.50 $2,200
Level 3 $1,503.00 $10,124.00 $2,200
Materials Price Days
Slab on Grade $ 11,240.75 3.5
Exterior Wall Framing $ 5,844.96 2
Exterior/Roof Finishes $ 56,394.40 7.5
Floor Framing — —
Interior Wall Framing $ 1,504.62 1
Truss Package $ 8,789.40 1.5
Windows $ 5,400.00 1
Exterior Doors $ 6,800.00 0.5
Interior Wall Finish $ 5,936.20 4
Floor Finishes $ 12,647.59 1.5
Insolation $ $5,269.32 1
Kitchen $ 9,720.00 1
Garage $ 15,000.00 2
Plumbing/Bathroom $ 14,944.00 1
Electrical $ 3,700.80 1.5
HVAC $ 3,353.85 2
Earth Works/Landscaping $ 7,446.77 8
Appliances $ 5,740.00 .5
Solar Panels and System $ 8,559.10 2
Construction Fees $ 37,898.00 —
Total Construction cost $ 226,189.80 41.5
Sale Price
Profit
Details:
 1285 Sq.Ft.
 2 Bedrooms
 2 Full Bathrooms
 Back Patio
Features:
 Detached 1 Car Garage
 Open Floor Plan
 Double Insulated
Walls
 Radiant Floor Heating
 Solar Energy Package
Energy Efficiency:
HERS Rating: 12
88% more efficient than
standard homes
ICC 700-2012 NGBS
Section Points Level
Lot Design 155
Quality of
Construction
153
Energy Efficiency 125
Water Usage 114
Pollutant Source
Control
138
Building Owner’s
Manual
14
Total Points 699
Bronze Silver Gold Emerald

34
ProductDetails
Floor Plan

35
ProductDetails
Rear Elevation
Kitchen/Living Room

36
The Herrington Townhome
The Herrington Townhome is a spacious modern home. This townhome has an attached
garage in the back opening up more space on the first level. The first level is very open with
a large living room. In addition, the third floor is open with a wet bar and outdoor living
area. The townhome is equipped with solar panels and power storage.
ProductDetails
Slab on Grade $ 5,779.46 4.5
Exterior Wall Framing $ 4,995.54 6.5
Exterior/Roof Finishes $ 49,703.37 6
Floor Framing $ 17,648.22 3.5
Interior Wall Framing $ 3,681.68 2.5
Truss Package $ 15,000.00 2
Windows $ 3,600.00 1.5
Interior Finish $ 32,713.80 5.5
Insolation $ 6,160.10 3
Kitchen $ 15,715.00 1.5
HVAC $ 7,489.73 2
Appliances $ 5,740.00 1
Solar Panels and System $ 11,982.74 2.5
Construction Fees $ $37,872.00 —
Total Construction Cost $ 297,251.80 48.5
Sale Price
Profit
Car
Charging
Station
Level 1 $1,853.00 $5,740.00 $2,800
Level 2 $2,167.00 $6,985.50 $2,800
Level 3
$3,587.00 $10,124.00 $2,800
Details:
 2570 Sq.Ft.
 2.5 Bathrooms
 2 Bedrooms
 Rear Loaded (Garage)
Features:
 Outdoor Living Area
 Open first floor
 3rd Floor Rec. Room With
Wet Bar.
 Gated Front
Energy Efficiency:
HERS Rating: 28
standard homes
ICC 700-2012 NGBS
Lot Design 155
Quality of
Construction
150
Water Usage 100
Pollutant Source
Control
132
Building Owner’s
Manual
14
Total Points 668

37
ProductDetails
Main
Floor
Third
Floor
Second
Floor
Roof/
Solar
Panels

38
ProductDetails
Rear Elevation
Living Room

39
The Cunningham Townhome
The Cunningham Townhome has a modern feel on the inside and a historic stone exterior.
This townhome is great for young couples and families. The first level is the kitchen and the
living area. Second floor is where the master and spare bedroom is. The third floor is an
open entertaining area with a wet bar and outdoor porch
ProductDetails
Slab on Grade $ 5,779.46 4.5
Windows $ 3,600.00 1.5
Kitchen $ 15,715.00 1.5
HVAC $ 7,489.73 2
Solar Panels and System $ 11,982.74 2.5
Construction Fees $ $37,872.00 —
Total Construction Cost $ 296,251.80 48.5
Sale Price
Profit
Car
Charging
Station
Level 1 $1,853.00 $5,740.00 $2,800
Level 2 $2,167.00 $6,985.50 $2,800
Level 3 $3,587.00 $10,124.00 $2,800
Details:
 2686 Sq.Ft.
 2.5 Bathrooms
 2 Bedrooms
 Frontloaded (Garage)
Features:
 Outdoor Living Area
 3rd Floor Rec. Room With
Wet Bar.
 Gated Front
Energy Efficiency:
HERS Rating: 28
72% more efficient than stand-
ard homes
ICC 700-2012 NGBS
Lot Design 155
Quality of
Construction
153
Water Usage 100
Pollutant Source
Control
132
Building Owner’s
Manual
14
Total Points 671

40
ProductDetails
Main Floor Second Floor Third Floor Roof/Solar Panels

41
ProductDetails
Dining Area
Rear Elevation

42
The Lincoln
The Lincoln Home is a great single family home. This home comes with an detached garage
allowing the seperation between the two structures. The first floor is an open modern layout
with the kitchen and living room flowing into one. The second story has three bedroom one
full bath and the master is also located on the second.
ProductDetails
ICC 700-2012 NGBS
Lot Design 155
Quality of
Construction
149
Water Usage 96
Pollutant Source
Control
138
Building Owner’s
Manual
14
Total Points 667
Slab on Grade $ 9,331.00 6.5
Garage $ 11,685.38 3
Windows $ 12,600.00 1
Exterior Doors $ 11,300.00 .5
Interior Finish $ 33,351.17 4
Floor Finishes $ 36,799.20 6
Kitchen $ 11,340.00 1.5
HVAC $ 7,480.26 2
Earth Works/Landscaping $ 19,156.55 5.5
Total Construction Cost $ 350,128.38 53
Sale Price
Profit
Details:
 2924 Sq.Ft.
 2 .5 Bathrooms
 4 Bedrooms
Features:
 Detached 1 Car Garage
 Open Floor Plan
 Master on First Floor
Energy Efficiency:
HERS Rating: 37
standard homes
Car
Charging
Station
Level 1 $3,628.00 $5,982.00 $2,800
Level 2 $4,255.00 $7,285.50 $2,800
Level 3 $4,761.00 $11,855.00 $5,600

43
The Lincoln
ProductDetails
Main Floor
Second Floor

44
ProductDetails
Bonus Room Eat-In Kitchen
The Lincoln

45
The Chapman
The Chapman Home is a great single family home. This home comes with an attached
garage allowing the easy access between the two structures. The first floor is an open
modern layout with the kitchen and living room flowing into one. The second story has
three bedroom one full bath and the master is also located on the second.
ProductDetails
ICC 700-2012 NGBS
Lot Design 155
Quality of
Construction
149
Water Usage 96
Pollutant Source
Control
132
Building Owner’s
Manual
14
Total Points 661
Slab on Grade $ 9,331.00 6.5
Windows $ 12,600.00 1
Exterior Doors $ 11,300.00 .5
Interior Finish $ 33,351.17 4
Kitchen $ 11,340.00 1.5
HVAC $ 7,480.26 2
Earth Works/Landscaping $ 19,156.55 5.5
Sale Price
Profit
Details:
 2866 Sq.Ft.
 2 .5 Bathrooms
 4 Bedrooms
Features:
 Attached 1 Car Garage
 Open Floor Plan
 Master on First Floor
Energy Efficiency:
HERS Rating: 36
standard homes
Car
Charging
Station
Level 1 $3,628.00 $5,982.00 $2,800
Level 2 $4,255.00 $7,285.50 $2,800
Level 3 $4,761.00 $11,855.00 $5,600

46
The Chapman
ProductDetails
Second Floor
Main Floor

47
The Chapman
ProductDetails
Bedroom
TV Room

48
The Greenbrier Estate
Named after the beautiful Greenbrier State Park, this estate home features an eloquent
modern interior and rustic stone exterior. This high end house is perfect for large families
and is a great house to entertain in. This house features a large outdoor patio with
optional outdoor kitchen and bar setup.
ProductDetails
Slab on Grade $ 17,141.25 5
Windows $ 8,400.00 3
Exterior Doors $ 10,500.00 2
Insolation $ 8,199.52 3.5
Kitchen $ 11,340.00 3
Garage $ 27,055.00 2
Plumbing/Bathroom $ 21,074.00 5.5
Electrical $ 14,849.28 4
HVAC $ 13,457.16 2.5
Outdoor Living $ 24,500.00 3
Sale Price
Profit
Upgrades Trim Appliances Outdoor
Living
Car
Charging
Ports
Level 1 $3,455 $5,740 $24,500 $2,800
Level 2 $6,255 $6,985.50 $28,900 $2,800
Level 3 $9,160 $10,124.00 $32,150 $5,600
Details:
 5160 SqFt
 3 Full and 1 half Bathroom
 8 Bedrooms
 Attached Garage
Features:
 Open Floor Plan
 1st Floor Master
 Large Outdoor Entertaining
Area
 Natural stone façade
Energy Efficiency:
HERS Rating: 41
59% more efficient than standard
homes
ICC 700-2012 NGBS
Lot Design 155
Quality of
Construction
138
Water Usage 94
Pollutant Source
Control
132
Building Owner’s
Manual
14
Total Points 644

49
ProductDetails
Second Floor
Main Floor

50
ProductDetails
Upstairs With Upgraded Trim Package
Kitchen

51
ProductDetails
Option Packages
Independence Developers will offer option packages due to the high amount of presales that
we are predicting. We want to give the homeowners the ability to choose different features
to customize their homes. We have included different options depending on the structure
ranging from additional storage space to outdoor living and additional rooms.
Back Patio/Outdoor Living
Materials Price Labor
Concrete $4,031.04 1
Forming $379.95 1
Finishes $1,070.16 1
Fire Pit $3,500.00 2
Stone $1,651.86 1
Counter Top $4,890.60 1
Total $15,523.61 7
Townhome
Extra Bedroom
Walls $230.24 1.5
Drywall $939.01 2.5
Trim & Door $591.12 1
Total $1,760.37 5
Cottage

52
ProductDetails
Estate
Forming $456.95 1
Fire Pit $4,500.00 2
Stone $5,139.72 2
Total $24,564.92 9
Back Patio/Outdoor Living-Upgraded
Forming $546.25 1
Finishes $3,132.00 2.5
Fire Pit $5,550.00 2.5
Stone $7,709.58 3
Refrigerator $1,020.00 .5
Grill $2,100.00 .5
Total $24,564.92 12Gaming Room
Built-In Desk $1,412.00 1.5
Built-In Shelf $1,623.00 2.5
Electronics $3,125.00 2
Total $6,160.00 6
Option Packages
Single Family
Forming $268.72 1
Fire Pit $3,750.00 2
Stone $4,863.21 2
Total $19,730.45 9

53
HOA Description
Independence Developers will hire The Premier
Management Group, Inc. to provide all needed
HOA services. The Premier Management Group has
twenty years of experience and specializes in single
family and townhomes. Upon completion of the
Tallyn Ridge Development, The Premier Management Group assume control of the
development and maintenance costs.
Their services they provide include but not limited too:
 Collection of all fees and dues from owners of development.
 Organize board meetings.
 Hires needed staff.
 24 hour emergency manager.
 Financial services.
Some other hospitality features include:
 Dry-cleaning
 Car detailing
 Dog walking
Independence Developers will ensure that the fees paid to The Premier Management Group
will be used for the following:
 Maintenance of green space
 Trail upkeep
 Funds to be used to construct community center
ProductDetails

54
Community Center
To promote the community involvement and wellness, an area of land has been set aside for
the construction of a community center in the future of the development. The community
center will be funded thorough the HOA fees. It will take some time for the funds to accrue
to construct the community center, but this will ensure that development is being occupied.
As more homeowners move into the homes, it will increase the funds in the community
center budge.
After consulting with The Premier Management Group, we have agreed to seek out a local
design build firm to construct the community center. Since Independence Developers does
not participate in commercial construction, a design build firm would be more apt to
construction the center more efficiently then ourselves.
After researching and interview potential
contractors, the community center construction
board decided on Morgan-Keller Construction to
design and construct the center. Morgan-Keller’s
portfolio consists of medical and commercial
buildings in the Frederick area. They also
specialize in sustainable construction. By Morgan-
Keller Construction already being experienced in
sustainability, it will allow them to continue the
environmentally friendly approach that Tallyn
Ridge is being founded on.
ProductDetails

55
Building
Science
 Off-Site Construction
 On-Site Construction
 Products
 Certification

56
Off-Site Construction
Independence Developers utilizes our ability to
prefabricate our homes in a climate controlled
factory environment. Having our home designs
panelized off site not only decreases the amount of
labor, but allows for Independence Developers to
maintain its 5 star level of quality control.
Through years of research and advances in building
science, Independence Developers will begin to
institute double wall construction with staggered
studs negating thermal bridging throughout the
dwellings and provided an air tight home. Building
two walls on site for a home would be extremely
labor intensive and counterproductive. This is where
our prefabrication ability is key in introducing a
new kind of production building. With two 2x4 walls
and an inch air gap, it will allows us to achieve an
R-34 value 70% more than required by the 2015
IRC.
In conjoin with the double wall construction, Murus’s graphite enhanced EPS SIP panels
will be installed in the ceilings achieving an R-52 value exceeding the R-49 required. Using
SIP panels will allowing a constant thermal barrier across the full ceiling and prevent any
insulation movement like with conventional blown in fiberglass. Not only, will it provide a
tighter building envelope, setting the ceilings with SIP panels will expedite the building
process allowing the homes to be completed at a faster pace. Using a SIP panel for ceiling
construction will negate the possibility of wind washing
allowing for a constant and even amount of insulation across
the whole structure.
Due to the foam core, SIPs do not allow the installation of
recess lighting in the ceilings. Because we were planning on
removing the Recessed lighting in the first place, to reduce
the thermal breaks in the building envelope, this did not
hinder our decision to use SIP’s. One of the requirements in
Ch. 7 (703.5.2) of the National Green Building Standards,
requires us to have less than 1 recessed lighting fixture per
400 sqft of ceiling.
BuildingScience

57
BuildingScience
BIBS
We are suggesting that Independence Developers use a Blow-In-Blanket system (BIBS) for
the wall insulation, and there are many benefits to doing so. One of the biggest reasons that
this system is better than traditional methods in just the pure R value of the material. The
BIBS R-value is 4.23 per inch, 30% more than the traditional fiberglass batts. Another
advantage this system has is the fact that it aids in the overall air quality of the home. The
BIBS material is moisture, allergen, and pollutant resistant. The last of the benefits to be
highlighted is that the insulation within the system is made up of up to 25% recycled
material, reducing the carbon footprint of each and every home on the site.
The benefits of a Blow-In-Blanket System
is that fact the loose strands of fiberglass
are compacted to the point that they will
not settle. This allows for the same R-
value to be achieved over the duration of
the home. In addition, it the loose
fiberglass can surround any receptacles
preventing any gaps within our thermal
envelope. Maintaining a tight thermal
envelope is key when trying to construct
an energy efficient home. This is why
Independence Developers work with their
subs to ensure that no breaks occur in the
thermal envelope and if one does occur, it
is repair to eliminate any heat loss and air
penetration.
Solar Panels
All homes within Tallyn Ridge will come equipped with solar panels. The amount of panels
on each home will be able to sustain the a normal electric load and then an additional 25%.
The additional 25% of collected energy will account for extra electric usage, cloudy days,
and the ability to sell electricity back to the local electric companies. This will aid in keeping
utilities costs down for the homeowner and even a chance for them to profit off their home
by simply living in it.

58
Shallow Frost Protected Slab
The last of our onsite building science
highlights might just be the most
important and drastic changes from
standard construction technics. By
taking away the full basement and
replacing it with a shallow frost protected
slab, we eliminate many energy inefficacy
and even health hazards. A full
basement, if not properly taken care of,
can be a breeding ground for mold and
mildew due to the cool moist air that is
present. With the understanding that
some home buyers may be turned off by
the lack of a basement or storage space,
we have added a couple elements for storage solutions. These can be found in the garage
with a power lifted platforms, and the SIP’s panels used for the ceiling can double as a floor
for storage.
As we seen by research done by
Independence Developers building
scientists, the cost between full
basements and crawlspaces is almost
double then a frost protected slab.
With our homes being a minimum of
1,200 SqFt and an average of 2,700
SqFt, our cost will be well below the
$20 line not only being more
efficient for us as a builder, but
transition to the homeowner with
heating savings.
BuildingScience

59
BuildingScience
Products
Shingles
Independence Developers plans on using light colored shingles with cool roof technology
built in. These shingles have a ceramic type coating on the granular surface to reflect the
suns UV rays that normally heat up the roofs surface. This heat generated be the sun’s rays
will in turn heat up the attic space and cause the house to be less efficient. Through testing,
the shingles with this coating have been proven to reflect 20% more of the sun’s rays than
uncoated equivalent shingles
Reflective Barrier
In addition to the cool roof shingles Independence
Developers plans on installing a radiant barrier system to
the underside of the top cords, of the trusses. These
products have been tested and can further reduce the
radiant solar penetration into the attic space. With the
combination of these systems, the attic space can be at an
almost livable temperature. One of the indirect benefits to
these products is in the HVAC system, because the ducts
will be running in a 85-95 degree space, instead of a 150
degree space on the 90 degree day, that are common
during the summer months in the Fredrick area.
Appliances
We plan on installing all Kenmore Energy Star qualified products. This will give our homes
both a consistent look and high efficiency with a total Energy Star, energy savings of $309
per year.
Recycled Materials
Whenever possible we would use recycled products in the construction of the home.
Recycled product can range from the glazings in windows to metal fasteners and even old
concrete as aggregate in our slabs.
House Ventilation
Due to the tightness of our planned building envelope a whole home mechanical ventilation
system. Independence Developers have put energy efficiency in the forefront and with this
system it is no different, we plan on using a ventilator with heat recovery and an Energy
Star rating.
Radiant Floor Heating
We also believe that the use of a radiant floor heating system on the first floor would be the
most energy efficient option. The benefits of the system don’t stop at the energy efficiency
of the structure, there is a comfort factor that people, that already have the system, say is
intangible.
Reflective Barrier System

60
Certifications
National Green Building Standards
Following the NAHB’s National Green Building Standards, we are proud to say that
Independence Developers has achieved an Emerald rating on all of the homes in our
proposed development. Emerald is the highest rating a hose can achieve by these standards.
We had done this using a few, simple, technics in addition to the ones we have already
outlined, one of these includes moving water heaters out of the garage and into a more
efficient location in the home. Two more steps taken have been, Removing carpets to reduce
allergens, and adding occupancy sensors in strategic locations for lighting. We have chosen
to do all of these thing because we want to make Independence Developers a house hold
name and synonymous with green building.
In addition to the NAHB’s Green Building Standards we have chosen to pursue further
certification with two more nationally recognized standard and organizations Energy Star
and HERS Rating System.
BuildingScience
Home
Ch. 5
Land
Ch. 6
Resources
Ch. 7
Energy
Ch. 8
Water
Ch. 9
Pollutant
Source
Ch. 10
Manual
Points
Over
Total
Achieved
Greenwell 155 153 125 114 138 14 158 699
Cunningham 155 153 117 100 132 14 130 671
Herrington 155 150 117 100 132 14 127 668
Lincoln 155 149 115 96 138 14 126 667
Chapman 155 149 115 96 132 14 120 661
Greenbrier 155 138 111 94 132 14 103 644
Requirement 121 119 100 92 97 12 100 641

61
BuildingScience
Certifications
ENERGY STAR
ENERGY STAR is the most widely known name in
green technologies, therefore there is no one better for
Independence Developers to partner with. The first step
to getting their certification is to become an ENERGY
STAR certified builder, which we have already started
the process of. Next, we took their strict guidelines and
designed our floor plans around them. ENERGY STAR
also has two optional certifications, the Advanced
Lighting Package and the Indoor airPLUS. Choosing to
pursue qualifying for these was a simple one, our homes
have 100% ENERGY STAR light fixtures, for the lighting package, and advanced
moisture and pest control with a third-party inspection, for the airPLUS. Also, as part of
the qualification process the home needs to be at least a 30% efficiency rating using the
HERS Rating scale.
HERS Rater
The Home Energy Rating System Rater (HERS Rater) is a software system that calculates
the energy efficiency of a home, developed by the Residential Energy Service Network
(RESNET). The way this rating system works is by comparing the standards of a dwelling
vs that of a home built meeting minimum codes requirements. Therefore, a home meeting
minimum codes would have a HERS index of 100, and a zero energy home would have a
HERS index of 0. Each point in the index represents 1% reduction of energy. To meet the
minimum requirements for the ENERGY STAR home, a home needs to have a HERS
rating of 70, and all of our homes surpass this.
Greenwell Cunningham Herrington Lincoln Chapman Greenbrier
HERS
Rating
12 28 28 37 36 41
Percent
Efficient
88% 72% 72% 63% 64% 59%

62
Competition
 Site Overview
 Tuscarora Creek
 Greentree Homes
 Villages of Urbana Development
 NV Homes
 Ryan Homes
 Clover Ridge
 Drees Homes

63
Tuscarora Creek Development
Tuscarora Creek is a development currently in the process of being built 10 miles to the
northwest of Tallyn Ridge. Construction has been in the past few years, and the
development is planned to exceed 1,000 homes. Tuscarora Creek will be composed of 5
different single family home designs and 3 townhome designs. Tuscarora Creek will offer
amenities such as community centers, sport fields, a community pool, dog park, and
walking trails.
Tuscarora Creek is being spearheaded by a single developer, Greentree Homes. Greentree
Homes is proposing that they are building a sustainable community by constructing the
dwellings up to the Federal Energy Star standards. Greentree is also offering immediate
delivery by offering up to a 4% discount on selected townhomes.
Below is Tuscarora Creek’s site plan. Homes that are in filled in red are sold, green are
available, and off-white are proposed lots that are not constructed yet. This map and
availability are as November 2015.
Competition

64
Greentree Homes
Greentree Home is a part of the F.O. Day
Company, which is based out of Rockville,
Maryland. F.O. Day Company is an
infrastructure focused developer, but utilizes
Greentree Homes to generate residential
projects. Greentree Homes was established in
1997 and focus their building in Frederick
County, Maryland and Loudoun County, Virginia. Greentree specialize in single family and
townhomes, with a small portion of the designs being for custom homes on 10-15 acre lots.
All their homes are covered with a 1 year warranty for workmanship, 2 year warranty for
mechanical work, and a 10 year structural warranty.
Greentree Homes claims that Tuscarora Creek will be a sustainable development by using
energy efficient appliances and reusing stormwater. Greentree Homes are able to claim a
HERS rating of 70 due to their ENERGY STAR certification.
Competition
Community Amenities & Features Comparison
Villages of Urbana Features Price Tallyn Ridge Features Price
Distance to Local Schools $3,000 Distance to Downtown $3,000
Distance to Retail Locations $2,000 Distance to Local Park $2,000
Basement Construction $10,000 Slab on Grade Construction N/A
Standard Wall Construction N/A Double Wall Construction $15,000
Square Footage N/A Square Footage $10,000
On-Site Amenities $3,000 On-Site Amenities $2,000
70 HERS Rating $2,000 28 HERS Rating $10,000
NAHB Emerald Certified $5,000
Smart Home Ready $2,500
Solar Panel Equipped $7,500
Total $22,000 Total $57,000
The Community Amenities and Features Comparison chart highlights cost difference a
homeowner would be expected to spend extra on each home. If Greentree Homes and
Independence Developers homes were to sit on the same lot, our home would be able to
demand an additional $35,000.

65
The Baker
Square Feet: 2,053
Bedrooms:3-6
Bathrooms:2.5-3.5
Price: Colonial-$376,900
Craftsman- $380,900
Shingle- $384,900
Price Per SqFt: $183.58-187.48
Competition

66
The Stonegate
Square Feet: 2,562
Bedrooms:4-6
Bathrooms:3.5-5
French Country- $413,900
Victorian- $416,900
Price Per SqFt: $160-162.72
Competition

67
The Rosemont
Square Feet: 2,740
Bedrooms:4
Bathrooms:3.5
Victorian- $424,900
Shingle- $427,900
Competition

68
The Edison
Square Feet: 1,680
Bedrooms:3
Bathrooms:2.5
Price: $259,990
Price Per SqFt: $154.76
Competition

69
The Jefferson
Square Feet: 2,296
Bedrooms:4
Bathrooms:2.5-3.5
Price: $296,990
Price Per SqFt: $129.35
Competition

70
Villages of Urbana
The Villages of Urbana was constructed in 1999 and is centrally located in Frederick
County, 5 miles to the southeast of the Tallyn Ridge Site. The Villages of Urbana are
composed over 3,000 homes built by NV Homes, Ryan Homes, Main Street Homes, and
Parkwood Homes. In addition to the surplus of homes located in the development, it
contains, community parks, clubhouses with pools and tennis courts, biking and hiking
trails, and a new school. Villages of Urbana also provides the community with retail
amenities with chain restaurants, banks, spas, and other popular retail stores. Due to their
presence in Frederick, Villages of Urbana only have townhomes from NV Homes and Ryan
Homes remaining to be sold.
Competition

71
NV Homes
NV Homes was founded in 1979 and is a
production builder with homes built in
Washington DC, Delaware, Virginia, North
Carolina, Pennsylvania, and Maryland.
Within Frederick, NV Homes has a strong
production presence with homes being built in
three developments but primarily in the
Villages of Urbana.
NV Homes are offering a townhome design, The John Jacob Astor, at Villages of Urbana,
beginning at $390,000 with additional options. Within the townhome, the floor plan is 2,400
sqft at a minimum with a 2 car garage, and higher end finishes throughout the home.
NV Homes have no claim to being energy efficient and have built standard production
homes. The issues with these homes is that they do not exceed energy codes and are not
geared to efficiency. This puts a burden onto the homeowners to retrofit the home in the
future to decrease energy costs if they so desire.
Competition
Square Footage $5,000 Square Footage N/A
Bedroom/Bathroom $2,000 Bedroom/Bathroom N/A
Total $29,000 Total $47,000
homeowner would be expected to spend extra on each home. If NV Homes and

72
The John Jacob Astor
Square Feet: 2,600-3,242
Bedrooms: 3-4
Bathrooms: 3.5-4.5
Price: $419,900-479,900
Main Level Floorplan Upper Level Floorplan
Lower and Optional Bonus
Level Floorplan
Competition

73
Ryan Homes
Ryan Homes was founded in 1948 and is
a production builder with homes built in
Delaware, Florida, Illinois, Indiana,
Maryland, New Jersey, New York,
North Carolilna, Ohio, Pennsylvania,
South Carolina, Tennessee, Virginia,
Washington DC, and West Virginia. Ryan Homes focus on building single family homes and
townhomes due to the market demand. Prices for their homes nationwide can range from
under $100,000 to above $600,000 proving that they are a very versatile company.
Ryan Homes are offering a townhome design, Strauss. The Strauss has two options of a 1
car garage, $390,000, and a 2 car garage, $410,000. Within the townhome, the floor plan is
2,400 sqft depending on the options that the homeowner chooses.
Ryan Homes created the BuiltSmart approach to their homes. It allows the homes to be
30% more efficient as calculated by the HERS index. They accomplish through energy star
appliances, high efficiency HVAC systems, and sustainable construction practices.
Competition
Bedroom/Bathroom $2,000 Bedroom/Bathroom N/A
Total $24,000 Total $52,000
homeowner would be expected to spend extra on each home. If Ryan Homes and

74
Strauss
Square Feet: 2,476+
Bedrooms: 3+
Bathrooms: 2.5+
Price: One Car Garage- $390,000
Two Car Garage- $410,000
Upper Level Floorplan
Lower Level Floorplan
Second Floor and Attic
Option Floorplan
Main Level Floorplan
Competition

75
Clover Ridge Development
Clover Ridge is a development designed and built by Drees Homes, a well established
production home building company. Clover Ridge has just begun construction in late 2015
and be comprised of 9 different single family home designs. Of the 9 home designs, 8 are two
stories and only 1 is single story.
Homes in Clover Ridge range from 2,230-3,264 sqft with a price range of $384,900-507,900.
The homes come with a variety of choices from 3 bedrooms 2 baths to 4 bedrooms and 3.5
baths. All of the homes within Clover Ridge have a 2 car garage
Clover Ridge is located on the northern side of Frederick and is 7 miles from Tallyn Ridge
and a 20 minute commute.
Competition

76
Drees Homes
Drees Home was founded by German
immigrants in 1928 with their first
home built in Kentucky and has been
successfully in business for 87 years.
Drees Homes is currently ranked as the
nation’s 7th largest privately-owned homebuilder and 23rd overall. Drees works with the
homeowners to customize the floor plans allowing them to build the home they want. They
currently are located in Texas, Kentucky, Ohio, Indiana, Florida, Tennessee, North
Carolina, Washington DC, Virginia, and Maryland.
Drees Homes began to incorporate 21st century technology in their homes making them
more efficient. Each home rated on the HERS index to establish the home’s efficiency. On
the high end, Drees Homes’s have achieved a 60 which means their homes are 40% more
efficient.
Competition
Bedroom/Bathroom N/A Bedroom/Bathroom $2,000
Total $21,000 Total $59,000
homeowner would be expected to spend extra on each home. If Drees Homes and

77
The Ashton
Bedrooms:4
Bathrooms:2.5
Price: $384,990-411,900
Competition

78
The Buchanan
Bedrooms:4
Bathrooms:2.5
Price: $434,900-469,900
Competition

79
The Jayden
Bedrooms:3
Bathrooms:2.5
Price: $472,900-507,900
Competition

80
Marketing
 Marketing Strategy
 Sales Strategy

81
Marketing Strategy
Advertising will be a pivotal point of our marketing strategy. We will emphasis our green
initiatives, energy savings, and sustainability in order to demonstrate the developments
potential cost savings and Independence Developers’ conscience effort to limit our carbon
footprint of our homes. We sell our homes as not only a dwelling, but as an investment in
the environment.
Social Media and Internet Advertising:
Currently we spend 1.72 hours a day on social media which accounts to 28% of internet
usage. This high amount of traffic on these sites offers a prime marketing opportunity. With
all generations using these sites, it will allow us to painless appeal to our target market.
Google: Google has become a household name for researching
items such as news to products to trivia. By using Google’s
Adsense and utilizing Google’s search engine, it will help us
capture much of the traffic for people looking to buy homes in the
Frederick area. Utilizing a proper combination between paid
advertising and organic search results will result in an extremely
cost effective advertising method. We intend for more than 60% of
our buyers to come from this method. An SEO (Search Engine
Optimization) expert may need to be consulted in order to help us
attain this goal.
Facebook: A Facebook page will be set up in the incipient
stages of building. In addition to being uploaded to the
developments website, initial renderings and site plans will be
made available on the developments Facebook page. As
construction is being completed, photos from finished homes
can be uploaded allowing potential buyers to see the finalized
product we offer. Our Facebook page, in combination with
Facebook’s powerful targeting program for advertisements,
will ensure that we are able to draw the customers from within
our target base. Once the development is completed, we will be
able to transition the page to the HOA to be used for future
properties for sale by current owners.
Instagram: Instagram has the capability of integrating
Facebook’s powerful marketing tools directly into their platform.
We will be able to post progress pictures as well as options offered
to entice potential buyers to upgrade. In addition to the photos
that will be uploaded, we will also be able to offer brief walk
throughs of the homes in its finished state.
Marketing

82
Marketing
Marketing Strategy
Advertisements placed in Newspapers:
In addition to running advertisements in the physical newspapers that are circulated,
having advertisement on the company’s website will also allow us to target more potential
homeowners looking for a new home.
Washington Post: The Washington Post Reaches 1.3 million people in the DC Metro
area, of which 35% of the readership earns in excess of $100,000.
Baltimore Examiner: Reaches most of the Baltimore Metropolitan area and has in
excess of 236,000 daily readers.
The Frederick News-Post: Local advertising of our development will enable us to
target people currently within our market.
These are just a few of the most popular newspapers we can utilize to attract our desired
target market in the immediate area.

83
Marketing
Marketing Strategy
Billboards
Billboardsare an effective way of targeting commuters. Well placed billboard
advertisements outside the DC and Baltimore metropolitan areas will assist in the targeting
of our desired customers. Key placements within Frederick will further help target those
within our local market.
Showroom
Utilizing the Francis Scott Key Mall, Independence Developers will open a showroom
within the mall. This will allow individuals to browse and see the options and finishes we
have to offer within our homes. It will also provide a place for presale homeowners to come
in and work with designers to customize their home prior to completion of construction of
their future home. Do to the high foot traffic through the mall it will also provide a valuable
Marketing tool that we will see a return on.
Having the show room paired with our model homes, will allow potential homeowners the
ability to see the quality of an Independence home. Being able to physically see the features
of a home in person is one of the best marketing techniques.

84
Sales Strategy
Our selling strategy will focus on incorporating a large brokerage firm in order to reach a
wide variety of potential customers. A contract will be agreed upon with local and regional
real estate agents with Coldwell Banker. Coldwell Banker’s vast operations in the
Washington D.C. and Baltimore metropolitan area will enable us to accurately target our
desired demographic. They are also extremely prevalent in the Frederick Area. In addition
to commission, Coldwell Banker agents will be offered a tiered level of incentives in order to
provide motivation for selling our properties.
In the first phase of building, we plan on establishing our model homes and units for
perspective buyers. We will allocate plots throughout all phases to accommodate for each
model. Walkthroughs will allow the future homeowners to have a feel of where they can
potentially live for the coming years of their lives and understand the quality of Archaeo
Construction. Due to the limited availability of single family homes, we have no intentions
of displaying a model single family home.
We expect to incorporate an on-site sales office to attract commuters, in addition to those
travelling on highway 70. Our sales office will be staffed by one individual 8-4 Monday
through Friday and 10-4 on Saturdays, with special availability for qualified perspective
buyers. The high community development, will enable us to post brochures and other
literature in relation to the future development. We will establish and maintain a culture of
sales education and training in order to efficiently sell our homes. Our sales force will
promote the perception of ability to inspire a confidence and evoke a purchase decision from
potential buyers.
Marketing
Tier 1
5 Homes Sold
•$500 Gift Card
Tier 2
10 Homes Sold
•0.5% Continuous
Commission
Increase
Tier 3
20 Homes Sold
•Vacation
Package

85
Financial
Analysis
 Loan Analysis
 Realistic Pro Forma
 Optimistic Pro Forma
 Conservative Pro Forma
 Breakeven Point
 Risk Analysis
 Withdraw Strategy

86
Financial
Analysis
Loan Analysis
Due to the uniqueness of this project, we have decided to take an alternate approach to
displaying the financial position of our proposal. Tract-Pie has enabled us to take an
innovative approach at preparing our pro forma statements. Our corporate structure as an
S Corporation will act as a flow through entity, pass-ing all profits to our owners/
shareholders.
Financing:
 - $90,000,000 Total Borrowed
 - $42,000,000 Max Outstanding
 - 7% Annual Interest Rate
 - 2% Fees
 5 Year Repayment Period
We have decided its best not to undertake this project with a partner. Our long held
reputation of quality developments and successful business would enable us to pull a large
construction loan with relatively low leverage. In order to complete our project, we intend
to borrow a total of around $90,000,000. This will cover less than half of all construction
and site development costs, but our cash flows farther into the project will be significant
enough to keep construction going at the same pace consistently. We will receive this loan in
a revolver loan form, drawing from it as needed, at a 7% interest rate with a 2%
administration, closing, and maintenance fee attached. The loan agreement is set at 5 years,
although we expect for the loans to be repaid in full before the loan reaches maturity. A pre-
determined amount of the construction loan will be set aside for interest payments.

87
Realistic Pro Forma
Our realistic pro forma reflects all 441units being sold. Total revenues generated from sales
will garner $223,710,308. Total cost of sales is $170,788,224 and after loan repayment and
consideration of interest we will retain a profit margin of 18.58%. This profit margin
includes all fees and expenses. We have decided to allocate 4% of every homes selling price
towards advertising. This will ensure we are able to get top dollar for every unit. We have
conservatively accounted for price escalations over the coming years to encompass rising
demand and inflation. We anticipate that our loan will be paid back in full by the end of the
4th year. We will purchase the land, outright, at the beginning of construction in order to
demonstrate good faith with our financing partner, the bank. If everything goes
accordingly, after repayment of financing, we will stand to make $41,562,250.
Financial
Analysis
Type of
Dwelling
Number
Constructed
Construction
Cost
Sales Price Price
per
SqFt
Total
Construction
Cost
Total Profit
Greenwell
Cottage
114 $226,189.80 $325,000 $252.92 $25,785,637.20 $11,264,362.90
Herrington
Townhome
86 $297,251.80 $450,000 $175.10 $25,563,654.80 $13,136,345.20
Cunningham
Townhome
114 $296,251.80 $450,000 $167.54 $33,772,705.20 $17,527,294.80
Lincoln 55 $350,128.38 $560,000 $191.52 $19,257,050.90 $11,542,949.10
Chapman 57 $338,493.00 $540,000 $188.42 $19,294,101.00 $11,485,899.00
Greenbrier
Estate
15 $488,905.50 $785,000 $152.13 $ 7,333,582.50 $ 4,441,417.50
Absorption
Average Absorption per Sales Month 6.1
Project Duration (months) 76

88
Financial
Analysis
Realistic Pro Forma
Loan Finance Summary
Construction Totals
Max Loan
Amount
$89,484,123
Max Balance
Outstanding
$41,641,515 $41,641,515
Loan Fees ($) $1,789,682 $1,789,682
Loan Fees (%) 2.00% 2.00%
Interest Rate (%) 7.00% 7.00%
Interest Paid $9,570,151 $9,570,151
Interest Draws $9,570,151 $9,570,151
Non-Int Draws $79,913,972 $79,913,972
Total Draws $89,484,123 $89,484,123
Total Repaid $89,484,123 $89,484,123
Lender IRR(%) 8.72% 8.72%
Loan-to-Val (%) 40.00%
Loan-to-Cost (%) 49.13%
Project Cash Flow
Without
Loans After Loans
Total Net Cash
Flow
$52,922,084 $41,562,250
Max Net Cost
Outstanding
$5,762,738 $7,640,370
Internal Rate of
Return (%)
202.92%
Net Present
Value
$52,922,084 $41,562,250
Land Residual
Value
$52,922,084 $41,562,250
Discount Rate
(%) 0.00% 0.00%
Equity Multiple 3.59
Return on Asset
(%) 149.85%
Equity Participation
Developer
Total Equity Advanced $16,096,014
(%) of Total Equity 100.00%
(%) of Total Cost 8.84%
Maximum Equity Balance $16,038,806
Profit Distribution $55,079,291
(%) of Profit Distribution 100.00%
Net Present Value $41,562,250
Discount Rate (%) 0.00%
Profit Summary
Net Profit after Returns on
Equity $41,562,250
(%) of Gross Sales Revenue 18.58%
(%) of Total Costs 22.82%

89
Optomistic Pro Forma
In our optimistic pro forma, we have increased our selling points of all of our units. This
would be the best case scenario to account for the rise in prices due to high demand. We
believe this is extremely feasible due to the uniqueness of our project. We believe that after
we have shown the feasibility of the project, and the potential cost savings, the value of the
homes will rise. In our optimistic pro forma, we anticipate to achieve 26.24% gross profit
margin, or $62,393,270.
Financial
Analysis
Type of
Dwelling
Number
Constructed
Construction
Cost
Sales Price Price
per
SqFt
Total
Construction
Cost
Total Profit
Greenwell
114 $226,189.80 $375,000 $291.83 $25,785,637.20 $16,964,632.80
Herrington
86 $297,251.80 $475,000 $184.82 $25,563,654.80 $15,286,345.20
Cunningham
Townhome
114 $296,251.80 $475,000 $176.84 $33,772,705.20 $20,377,294.90
Lincoln 55 $350,128.38 $580,000 $198.36 $19,257,050.90 $12,642,949.10
Chapman 57 $338,493.00 $550,000 $191.91 $19,294,101.00 $12,055,899.00
Greenbrier
15 $488,905.50 $800,000 $155.04 $ 7,333,582.50 $ 4,666,417.50
Absorption

90
Financial
Analysis
Optimistic Pro Forma
Construction Totals
Max Loan
$95,107,997
Max Balance
$40,744,609 $40,744,609
Loan Fees ($) $1,902,160 $1,902,160
Loan Fees (%) 2.00% 2.00%
Interest Paid $6,648,031 $6,648,031
Interest Draws $6,648,031 $6,648,031
Non-Int Draws $88,459,967 $88,459,967
Total Draws $95,107,997 $95,107,997
Total Repaid $95,107,997 $95,107,997
Lender IRR(%) 6.78% 6.78%
Project Cash Flow
Without
Loans
After Loans
Total Net Cash
Flow
$70,943,461 $62,393,270
Max Net Cost
Outstanding
$5,661,898 $7,628,521
Internal Rate of
Return (%)
Net Present
Value
$70,943,461 $62,393,270
Land Residual
Value
$70,943,461 $62,393,270
Discount Rate
(%)
0.00% 0.00%
Return on Asset
(%)
236.24%
Developer
Maximum Equity Balance $8,286,671
Profit Summary
Equity
$62,393,270

91
In our most conservative pro forma, we can anticipate a gross profit margin of 15.61%. A
return of any lower would trigger us to activate our withdrawal strategy. This would be our
worst case scenario. That being said, we feel this scenario is extremely unlikely. The recent
popularity in green technologies gives us a strong target market to tap into.
Financial
Analysis
Type of
Dwelling
Number
Constructed
Construction
Cost
Sales Price Price
per
SqFt
Total
Construction
Cost
Total Profit
Greenwell
Cottage
114 $226,189.80 $300,000 $233.46 $25,785,637.20 $ 8,414,362.80
Herrington
Townhome
86 $297,251.80 $425,000 $165.37 $25,563,654.80 $10,986,345.20
Cunningham
Townhome
114 $296,251.80 $425,000 $158.23 $33,772,705.20 $14,677,294.80
Lincoln 55 $350,128.38 $560,000 $191.52 $19,257,050.90 $11,542,949.10
Chapman 57 $338,493.00 $540,000 $188.42 $19,294,101.00 $11,485,899.00
Greenbrier
Estate
15 $488,905.50 $785,000 $152.13 $ 7,333,582.50 $ 4,441,417.50
Absorption

92
Financial
Analysis
Construction Totals
Max Loan
Amount
$85,978,969
Max Balance
$41,362,137 $41,362,137
Loan Fees ($) $1,719,579 $1,719,579
Loan Fees (%) 2.00% 2.00%
Interest Paid $9,500,520 $9,500,520
Interest Draws $9,500,520 $9,500,520
Non-Int Draws $76,478,449 $76,478,449
Total Draws $85,978,969 $ 85,978,969
Total Repaid $85,978,969 $ 85,978,969
Lender IRR(%) 8.65% 8.65%
Project Cash Flow
Without
Loans After Loans
Total Net Cash
Flow
$44,772,601 $33,552,502
Max Net Cost
Outstanding
$5,739,370 $7,544,974
Internal Rate of
Return (%)
176.19%
Net Present
Value
$44,772,601 $33,552,502
Land Residual
Value
$4,772,601 $33,552,502
Discount Rate
(%)
0.00% 0.00%
Return on Asset
(%)
120.61%
Developer
Maximum Equity Balance $ 19,312,920
Profit Summary
Equity $62,393,270

93
Financial
Analysis
Breakeven
Realistic Breakeven
With sticking with our estimated absorption rate and sales, Independence Developers will
be expected to breakeven around the 52nd month of construction. Although this is late in
our 78 month overall estimated construction time. It will lead to a strong closing to the
development. Due to the success we are expecting of Tallyn Ridge, this is a reasonable goal
for Independence Developers.
Optimistic Breakeven
With maintaining the same absorption rate but higher selling prices, Independence
Developers will hit our breakeven and begin to see profits after 49 months of construction.
The higher selling price will allow us to see a profit sooner than our realistic option. Our
optimistic view is possible due to the current energy efficient movement that is seen across
the nation.
Conservative Breakeven
If we need to lower our sale price because the expected demand of sustainable home is not
what we were predicting, Independence Developers will see a breakeven mark at 54 months
of construction. This will be a slight set back and result in a reduced profit margin, but the
overall development in itself will still yield an overall profit.

94
Financial
Analysis
Risk Analysis
Recession and Housing Market Downturn
One of the biggest risks of a housing plan over many years is the unforeseen economic
future. The possibility of a limited demand of new homes is always possible and could strike
at anytime. Our financial advisors within Independence Developer have planned for such
things.
 Reduction in home’s sale price will be adjust accordingly to the new loan interest rates
 Production on homes on site will be reduce to fit a decreased absorption rate
If we continue to see that homes are not being sold at an appropriate rate, Independence
Developers will reanalyze the site to see the profitable once the market returns. This analyze
will occur after 4 months of not achieving our absorption estimate.
Optimistic Outcome
 Withhold the land and postpone all construct on site
 All profits made up to this point will be put towards paying off the projects debt.
 Reanalyze and redesign home footprints to fit new market
Pessimistic Outcome
 Complete remaining homes currently being constructed
 Sell off remaining land
 All profits will be paid to expenses to limit the amount of debt incurred from the project

95
Financial
Analysis
Risk Analysis
Implementing Sustainable Building Practices
The building science usage in Tallyn Ridge is unconventional for production builder’s to
implement. Since it is Independence Developer’s first full scale sustainable development, it
poses the possibility for construction costs to be too high resulting in our home’s being
priced too high.
After extensive research about sustainable homes, we are extremely confident that we not
have issues with homes selling within Tallyn Ridge with the target market we have selected
and the geographical location. The home market is becoming more aware of passive homes
and the benefits the offer to homeowners and the environment. However, if we begin to
notice our absorption rate is too low, we will implement the following courses of action to
prevent the project entering debt.
 Lower selling prices on the homes by 2.5% of original cost
 If sales do not begin to increase, sales prices will be lowered by 5% of original cost
 If home sales continue to stay stagnant and not meet the absorption rate, homes will be
converted back to traditional building practices.
 Removal of solar panels and smart wiring from homes
 Single 2x6 wall construction
 Trusses with raised heals instead of SIP ceilings
 Precast walls instead of shallow frost protected slab

96
Withdraw Strategy
Due to the possibility that the energy efficient approach to Tallyn Ridge is not successful as
we plan it to be, our financial advisors suggest that if our sales do not reach 50% after the
first phase is complete, our risk analysis plans will begin to be implemented. If sales
continue to fall after sale reductions are in placed and construction is slowed, we will end
construction at the end of the phase and sell off the remaining land.
The sales of each phase will be analyzed at the end to see if home prices need to be adjusted
to fit the market and if our absorption rate is too high or low. If Independence Developers
feels that the profitable of Tallyn Ridge is not what it is expected to be, construction will be
completed of that phase, and remaining lots and land will be sold off to local contractors to
finish the development how they see fit. We will recoup as much capital as possible to pay
off any loans and stay profitable.

Pennsylvania College of Technology-2016 4 Year RCMC Packet.old

Pennsylvania College of Technology-2016 4 Year RCMC Packet.old

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