An investors memorandum for the Farm Pond Circle real estate development. Presented by Cornell University Sustainable Design

1. May 7, 2013
FARM POND CIRCLE DEVELOPMENT
Investor Memorandum
This memorandum represents the aggregate work of the
development and design team students of the Farm Pond
Circle Project, operating under the Cornell University
Sustainable Design (CUSD) organization and in conjunction
with Ithaca-based non-profit developer Community Building
Works! Inc., and its Executive Director, Jack Jensen.
Investor Memorandum

2. TABLE OF CONTENTS
3 | PROJECT OVERVIEW
4 | MARKET ANALYSIS
5 | SITE LOCATION
6 | SITE OVERVIEW
7 | DEVELOPMENT TIMELINE
8 | DESIGN RENDERING
9 | ARCHITECTURAL DESIGN
10 | ARCHITECTURAL DESIGN II
11 | SUSTAINABLE SYSTEMS
12 | BUILDING MATERIALS
13 | PROJECT FINANCIALS
14 | INVESTOR COMMITMENT
15 | IMPACT AND BENEFITS
16 | CORNELL TEAM
17 | PROFESSIONAL TEAM
The first of nineteen homes under
construction at Farm Pond Circle. The project
discussed within will be integrated into this
community.

3. PROJECT OVERVIEW
Farm Pond Circle is an interdisciplinary student-led design-
build project and research endeavor orchestrated by Cornell
University Sustainable Design (CUSD). This project follows
huge successes by CUSD in both the Sustainable
Neighborhood’s Nicaragua project and Schoolhouse South Africa.
Unlike its predecessors, Farm Pond Circle invests CUSD’s efforts
into creating a local impact instead of looking internationally.
CUSD’s Farm Pond team, through a partnership with local
developer Community Building Works, has identified a project site
and cultivated a complete development plan and building design
to help bring a fun, financially feasible, unique, beneficial, and
sustainable project to the greater Ithaca area in Lansing, New
York.
The project develops a 2-acre site in Lansing, a single lot within
a 19-house development underway by Community Building Works
and Jack Jensen Development focused on sustainability and
reforestation. This lot has been reserved for the students of CUSD
by Jack, allowing the interdisciplinary team of Cornellians to
spend their spring semester researching and designing all facets
of the development in order to bring to life four affordable and
sustainable residential units with a unique design and
positive impact on the community.
Designed and built primarily through volunteer and pro bono
labor, our team is seeking investors who wish to become
associated with this great endeavor beyond its financial
potential, rather who believe in actively participating as the
benefactor of Cornell University, CUSD and its students, and
the greater-Ithaca community.
Investor Memorandum
Deconstruction of existing structures on the project site are already underway thanks to
volunteers from CUSD’s Farm Pond team.
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4. MARKET ANALYSIS
GREATER-ITHACAAND LANSING DYNAMICS:
WHY THIS PROJECT IS FEASIBLE
Tompkins County, Ithaca, Lansing, and the surrounding
communities which wrap Cayuga Lake to the south and
east have, in part, been sheltered by the effects of the
recession. This can be largely attributed to the presence of
both Ithaca College and Cornell University and the stability
each brings to the population. Cornell employs over 1,600
academic professionals who work on the Ithaca campus;
Ithaca College employs nearly 1,000. The 21,000 Cornell
students and 6,500 students attending Ithaca College also
bring stable commerce to the area.
Professional and related occupations make up the majority
of the employed workers in Lansing at 61%. Note that the
daytime population change for people commuting into
Lansing is over 3,500 people per day. This is significant in
that the labor market does not reside within Lansing and
therefore any additional housing units, particularly
affordable, will provide an attractive local living solution to
this commuting population.
The median household income in Lansing was $60,389 as
of June 2012. This figure is substantially higher than the
median household income of the United States at $50,935.
An even greater difference exists between the per capita
income of
Lansing at $41,639 and the per capita income for the
United States which is $26,154. Unemployment
in the greater-Ithaca area is 5.40%, notably below the US
average. These healthy figures should equate to
availability of potential buyers at the right target prices.
The total household count for Lansing is 4,751, out of
which 50.1% were husband-wife families, 28.2 % had
children under 18 years of age. 7.8% of households have
residents aging 65 years or older. Of all existing housing
units, 92.6% are occupied and 7.4% are vacant. 58.7% of
the occupied housing units are occupied by owners, 41.3%
by renters. The average household size was 2.28
bedrooms and the average family size was 2.86 members.
We believe that providing affordable for-sale units
which cater to both family and elderly
environments will be well-received in the market.
The “greeniors” of the greater-Ithaca area – aging
baby boomers and empty nesters – looking for
accessible housing and desiring flexibility in
design is our target market. We have tailored our
design in this respect and believe we have
captured the essence of what the market is
looking for. Moreover, the delivery of these units
by a Cornell-affiliated student-led group
championing sustainable design will be a strong
selling point to any potential investor and
homebuyer.
Investor Memorandum
4

5. SITE LOCATION
GREATER-ITHACAAND LANSING DYNAMICS:
LOCATION BENEFITS
HOSPITALS / MEDICAL CENTERS
Convenient Care (~5 miles)
Cayuga Medical Center at Ithaca (~8 miles)
Schuyler Hospital (~21 miles)
Cortland Regional Medical Center (~21 miles)
PUBLIC SCHOOL SYSTEM
Raymond Buckley, Grade K-4, 284 Ridge Road
Lansing Middle School, Grades 5-8, 6 Ludlowville Road
Lansing High School, Grades 9-12, 300 Ridge Road
LIBRARIES
Lansing Community Library, 27 Auburn Road (11,000 books)
(Also refer to college listing below)
SHOPPING CENTERS
Shops at Ithaca Mall, Lansing
Triphammer Outdoor Shopping
Wegmans, Home Depot, Walmart, etc. (Ithaca, Rt. 13)
COLLEGES / UNIVERSITIES
Cornell University, Ithaca (~3 miles)
Ithaca College, Ithaca (~5 miles)
Tompkins Cortland Community College, Dryden (~10 miles)
SUNY College at Cortland, Cortland (~17 miles)
Cayuga County Community College, Auburn (~32 miles)
Hobart William Smith Colleges, Geneva (~37 miles)
Broome Community College, Binghamton (~39 miles)
Investor Memorandum
Greater Ithaca, NY. Marker locates Farm Pond development.
Intersection of Peruville Rd. and Collins Rd, Lansing, NY. Project
located in SE corner of intersection.
5

6. The four units to be developed by CUSD and Community
Building Works are nested within the greater development
of Farm Pond Circle, shown here. Through careful design,
reforestation, and greater development efforts, these units
will be indistinguishable from their neighbors, while catering
to our target market of “greeniors”.
SITE OVERVIEW
Farm Pond Development. www.farmpondcircle.com/welcome
LOT SIZE: 2 acres (87,120 sf)
UNITS: 4 (Two 2br/1br duplexes)
2-BR UNITS: 1,200 sf
1-BR UNITS: 900 sf
FLOOR-AREA (FAR): 0.039
DU/ACRE: 2.0
Investor Memorandum
Bottom image rotated; pond located on eastern end of site.
6

7. Throughout the spring semester, CUSD students have been designing the four residential units. Our goal is to finalize design
by June 2013, and complete demolition of existing structures over the summer. We hope to secure financing in the coming
months in order to facilitate ground-breaking in late summer. This will allow students to return for the fall semester and make
a concerted push to construct the units during the fall months. Anticipating a typical construction lag during winter months, we
will aim to complete construction during the spring of 2014. Through construction we will actively seek homebuyers and make
every effort to pre-sale all units. This will allow for tenants to occupy their new homes during the summer of 2014, at which
point we anticipate returning investor capital.
DEVELOPMENT TIMELINE
Start M os. End Total FEB M A R A PR M A Y JU N JU L A U G SEP O C T N O V D EC JA N FEB M A R A PR M A Y JU N JU L A U G
M arketResearch Feb-13 6.0 A ug-13
C om m unity O utreach & C om m unication Feb-13 18.0 A ug-14
Establish O verallV ision M ar-13 2.0 M ay-13
D raft& Finalize ProjectPlan Feb-13 4.0 Jun-13
D raft& Finalize A rchitectualD esign and C onstruction Plan M ar-13 3.0 Jun-13
D raft& Finalize ProposalforM aterialC om position M ar-13 3.0 Jun-13
D raft& Finalize Sustainable System M odel M ar-13 3.0 Jun-13
Intergration ofSite Plan and O therO utputs A pr-13 3.0 Jul-13
O btain M unicipaland State Perm its A pr-13 2.0 Jun-13
FinalD raw ings Stam ped by A rchitectand Engineers M ay-13 1.0 Jun-13
Identify C ostParam eters Feb-13 2.0 A pr-13
Prepare & Subm itFinancing A pplications A pr-13 1.0 M ay-13
Secure C onstruction Financing A pr-13 2.0 Jun-13
Solicit,Review ,A w ard Subcontractor/V endorBids Jun-13 2.0 A ug-13
D ebris and Trees C leared Jul-13 1.0 A ug-13
H om esite Scraped,Leveled and Pinned Jul-13 1.0 A ug-13
Initiate C onstruction Jul-13 12.0 Jul-14
PourFoundations A ug-13 1.0 Sep-13
M anage C hange O rders and C osts Jul-13 12.0 Jul-14
O btain C ertificate ofSubstantialC om pletion M ay-14 1.0 Jun-14
M anage C onstruction C lose O ut M ay-14 2.0 Jul-14
D eterm ine Price PointofLeases/Targeted Sale Price A pr-13 6.0 O ct-13
D eterm ine Lease A greem ents A ug-13 4.0 D ec-13
Engage in M arketing (Landlord) A ug-13 12.0 A ug-14
Sales and TenantM ove-In Jan-14 7.0 A ug-14
Sales and
M arketing
17.0
18.00
Financing 7.00
D em o 2.00
Construction 13.00
Prelim inary ProjectSchedule forFarm Pond
20 13 20 14
A cquisition 18.00
D esign &
Entitle
5.00
Investor Memorandum
7

8. DESIGN CONCEPT RENDERING
ENVISIONING THE FARM POND UNITS
Investor Memorandum
8
Our team of student-architects has worked throughout the semester towards a final design which will maximize
value – both spatially and functionally – for Farm Pond’s future tenants. Pictured above is one of the two
duplexes. Each will consist of a 1,200-sf two-bedroom unit attached to a 900-sf one-bedroom unit, allowing for
flexible use of the spaces by the future homeowner. More detailed concept discussion and design can be found
in the architectural final deliverable addendum.

9. ARCHITECTURAL DESIGN
CREATING A FLEXIBLE AND SUSTAINABLE HOME
Investor Memorandum
9
Single story duplex designed
with accessible housing
elements to remain flexible for
future tenants.
Sunlight, a small garden, and a view of the rural
countryside greet you at the main entrances.
Designed to provide residents with maximum amount of comfort through
natural lighting, a centralized kitchen, spacious bedrooms.

10. ARCHITECTURAL DESIGN II
UNIQUE ELEMENTS
Investor Memorandum
Interior rendering showcases the natural light as well as the
intriguing ceiling line created through the use of varying truss
systems.
Sections through the larger unit envision the open floor plan
as well as the bedrooms. Skylights in both areas are placed
along the northern roof to provide indirect lighting and act as
an architectural element.
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11. SUSTAINABLE BUILDING SYSTEMS
STRAWBALE WALL CONSTRUCTION
Investor Memorandum
11
Hybrid straw-bale and cellulose insulation method to
most aptly fit the design requirements. High R-value,
structural rigidity, and ability to apply wood or other
siding with ease make this method attractive. Local
cedar on the exterior, attached directly to the studs with
a layer of roxul paneling and house-wrap to create a
water-resistant barrier. Inside to be finished with a layer
of stucco, either lime or earthen, that has the ability to
transfer moisture from the bale to the interior. Cross-
section above is courtesy of Aaron Dennis, our
professional strawbale expert with Tugleywood, located
in Trumansburg, NY.
Tugleywood has listed 19 homes that have
incorporated strawbale construction in the greater-
Ithaca since 2000. All are happily inhabited by
current tenants.
We are finalizing system
designs and weighing
cost-benefit feasibilities
for both solar
photovoltaic panels and
geothermal systems for
radiant flooring.
Incorporation of these
systems will provide
maximum comfort to
future tenants while
reducing utility
expenditures over time.
SOLAR & GEOTHERMAL SYSTEMS
More details provided on these
sustainable systems in building
systems team’s final deliverable, an
addendum to this memorandum.

12. USING RESPONSIBLE MATERIALS
GETTING COMFORTABLE WITH SUSTAINABILITY
Investor Memorandum
12
Deborah Cipolla-Dennis has had a very positive
experience living in her straw bale home in Ithaca.
She believes that in addition to the cozy feel the
construction method provides, the insulation allows
the home to stay cool in the summer and warm in
the winter. She does not have an air-conditioning
unit in her home and still finds that on the hot days of
summer when temperatures rise above 100 degrees,
her home stays a comfortable 72-74 degrees. The
homeowner also finds that her home stays quiet
even on the windiest days.
“I am very comfortable living in a straw
bale home. I can't imagine going back
[to living without it].”
-Deborah Cipolla-Dennis
Guillermo Metz lives in a Tompkins County home built
in 2000. His home was the first permitted strawbale
home in the county (according to him). Because this
was the first local home of its kind, the construction
crew encountered unique challenges that have since
been perfected. Metz finds that a well-built strawbale
home has improved air quality and moisture
control over conventionally-designed homes, and
that they tend to be much quieter. He feels very
comfortable living in his strawbale home even
considering his home was built 13 years ago.
“I feel very comfortable living in my
strawbale home… [they] are just
incredible spaces to be in. Very
comfortable [and] quiet.”
-Guillermo Metz
OTHER PLANNED BUILDING MATERIALS
Marvin Integrity double-pane, low-e windows
Concrete flooring on ground floor
Brown maple ceilings
Recycled rubber roofing shingles
Cedar exterior walls
Stucco interior walls
Aaron Dennis of Tugleywood explains details of strawbale construction in class.

13. PROJECT FINANCIALS
FUNDING REQUIREMENTS AND
GOALS
The development will consist of
four (4) units – two duplexes each
with a 1,200-sf two-bedroom
attached to a 900-sf one-bedroom
unit. We have allocated $125 per
square foot as our construction
budget. We strongly believe that
each unit will sell near our target
price of $375,000, or $175 per
square foot, commensurate with
comparable market sales at
affordable price levels. A sale price
of this value yields a monthly
mortgage payment near $2,000,
assuming a 20% down payment
and 30-year mortgage for the
homebuyer.
We anticipate providing a
10-15% gross return to our LP
equity investor, a 15% IRR over
the 1-year project. All remaining
proceeds go towards non-profit
efforts through Community Building
Works.
EQUITY INVESTORS
We are seeking a $100,000 investment commitment from our equity
partner. Jack Jensen, Executive Director of Community Building Works, has
committed $70,000 in equity towards this project through a temporary land
donation and will act as the GP. The equity provided by the LP will help to
secure the balance of necessary funding through a construction bank loan. The
time horizon for equity returns is targeted for fourth quarter 2014.
Investor Memorandum
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Land A cquisition 70,000 C onstruction Loans 572,095 77%
H A RD C O STS Equity 1* 70,000 9%
C onstruction,U nits 525,000
C onstruction,C om m on 10,500 Equity 2 100,000 13%
Site Preparation 5,000
Parking 5,000
C ontingency (5% ) 26,775
572,275
SO FT C O STS
C onsultants 18,415
Financing/Syndication 14,994
C arrying C osts 66,411
99,820
TO TA L U SES $742,0 95 TO TA L SO U R C ES 742,0 95
U SES SO U R C ES
Sources and uses table represents estimated capital commitments as of April 2014.
*Equity 1 represents land value temporarily donated by Jack Jensen Development.

14. INVESTOR COMMITMENT
WHO ARE WE LOOKING FOR AND WHO IS THE RIGHT
STAKEHOLDER?
Our partner needs to be:
Invested in the greater-Ithaca and Lansing communities.
A proponent of Cornell University, its students, and their
capabilities.
An advocate for environmental sustainability and green building
design.
A supporter of non-profits and Community Building Works’
mission of providing affordable housing locally and abroad.
Willing to invest $100,000 of capital, with an expected return of
10 – 15% in less than two years.
Bottom line – we need a partner who is emotionally invested
in this project, who believes in its spirit and the value it
creates for all stakeholders, and who is resolved to be
involved through the finish line. We are already underway
with site demolition, and believe in our process and our design.
We are confident in the project’s completion, on time and on
budget, and believe we have set reasonable and conservative
targets for sale prices and returns.
Investor Memorandum
14
Image from inside existing silo structure on Farm Pond project site.

15. PROJECT BENEFITS AND COMMUNITY IMPACT
A PROJECT WITH A LEGACY
The Farm Pond development will provide four families with affordable units and a uniquely sustainable living
environment. The four units, combined with the entire Farm Pond Circle neighborhood will extend the suburban
landscape of Lansing eastward down Peruville Road by introducing a new and vibrant community. Finally, in a fresh
and inspiring manner, many interdisciplinary groups have come together to foster and see this challenging and
inspiring project through to fruition. By creating such a unique, highly visible, and tangible impact on the greater-Ithaca
area and Lansing community, the following groups can stand proudly as the partners of this great endeavor:
CUSD’s Farm Pond team is very excited about this development and we hope we have peaked your interest as well.
This project would not be possible without the many individuals who have already committed to the cause and we are
seeking the last vital component in the form of an equity partner – you – to ensure the successful completion and
deployment of the program. We thank you for your time in reviewing this memorandum. Any further questions may be
directed to Tim Lenardo or the other contacts provided on the subsequent pages. We look forward to working with you!
Investor Memorandum
Team Members
YOU: Our Equity Partner
15

16. CORNELL TEAM MEMBERS
TIMOTHY E. LENARDO
Project Head
Computer Science & Engineering, 2014
tel36@cornell.edu
THOMAS J. SPIVEY
Development Lead
Masters of Business Administration, 2014
tjs326@cornell.edu
H. PIKE OLIVER
Project Faculty Advisor
City & Regional Planning Professor
hpo@cornell.edu
DEVELOPMENT TEAM
BiCheng Nie, URS 2015
Gavin Taves, URS 2015
Adrian Yuen, URS 2013
Michael Loffredo, URS 2015
Evan Rusinowitz, DEA 2015
Scott Melby, Hotel 2015
SUSTAINABLE SYSTEMS
Ethan Keller, Env. Eng. 2015
Greta Schneider-Herr, Chem. Eng. 2014
David Beavers, Civil Eng. 2014
SUSTAINABLE BUILDING
Mary Millard, Env. Eng. 2015
Jonathan Roth, Civil Eng. 2015
Karl Fletcher, AEM 2014
Jamal Cherry, Civil Eng. 2014
ARCHITECTURE
Relicque Lott, Arch. 2015
Peter Gudonis, Arch. 2014
Tom Tumelty, Arch. 2015
Edbert Cheng, Arch. 2016
Allie Wills, Arch. 2016
Gosia Pawlowska, Arch. 2016
COMMUNICATIONS
Jared Curtis, Arch. 2016
Cornell University Sustainable Design
138 Upson Hall
Cornell University
Ithaca, NY 14853
cusd@cornell.edu
Investor Memorandum
16

17. PROFESSIONAL TEAM MEMBERS
COMMUNITY BUILDING WORKS!
Jack Jensen
Executive Director
Cornell University 1979
Cornell Civic Fellow
jjensen2@twcny.rr.com
Gideon Stone
Board Member
Cornell University 2007
MARKETING AGENT
Brent Katzmann
Warren Real Estate
www.warrenhomes.com
SITE ENGINEER
John Anderson, PE
Civil Engineer
City of Ithaca, New York
ARCHITECT
Cheryl Thompson
Architectural Consultant
Ithaca Green Building Alliance
STRAWBALE SPECIALIST
Aaron Dennis
Owner/Operator, Tugleywood
Trumansburg, NY
www.tugleywood.com
ABOUT COMMUNITY BUILDING WORKS!
www.communitybuildingworks.org
Community Building Works! Inc. (CBW) is a local
non-profit developer and builder founded
by Jack Jensen, a 1979 graduate of Cornell
University and a Cornell Civic Fellow. Jack
has been a long-time advocate for providing
sustainable projects at affordable pricing levels to the
community with a unique twist – for each project
delivered in the greater-Ithaca community, CBW donates its
resources to bringing a similar project online in a developing
nation, thus paying it forward across the globe. CBW depends
on volunteers from the community to help design, build, and
develop its sites. Reforestation efforts are also paramount to
CBW’s efforts. Learn more about CBW and its initiatives at the
website listed above.
Investor Memorandum
Jack Jensen
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