Transcript Document 7129032

Landor R. Angulo, Jr.
Chaise Matov
Rob Lynch
Nick Gold
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Real Estate development with “green”
infrastructure and planning.
Acquire raw land, supply green infrastructure,
attract investors, businesses, and housing
developers.
Green shopping centers/malls, master planned
green housing, office parks, etc.
Green infrastructure is the interconnected network of
open spaces and natural areas, such as greenways,
wetlands, parks, forest preserves and native plant
vegetation, that naturally manages stormwater,
reduces flooding risk and improves water quality.
Green infrastructure usually costs less to install and
maintain when compared to traditional forms of
infrastructure. Green infrastructure projects also foster
community cohesiveness by engaging all residents in
the planning, planting and maintenance of the sites.
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Investment in open spaces
Investment in economic and community
development
Mitigate sprawling development
Specific management practices (such as rain
gardens, porous pavements, and green roofs)
that are designed to maintain natural
hydrologic functions by absorbing and
infiltrating precipitation where it falls
Greenways
Rain Gardens
Wetlands Restoration
Trees
Green Roofs
Porous Pavement
Swales
Green Parking
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2006 revenues totaled 3 Billion
Civil segment alone totaled 2.8 Million of the 3
Billion in total revenue.
As of 12/31/06, Perini reported a backlog of 8.4
Billion, 4.3 Million of backlog total was from
civil segment.
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Civil experience: new, repair, and replacement
construction of highways, airports, bridges,
mass transit, wastewater treatment and site
work.
Building Division: constitutes 83% of total
revenue. The focus of the building segment is
on large complex construction projects with a
focus on high growth, specialized markets.
Management Services: 2.5 Million (8%)
Could pull experienced people from our own
resource pool to develop the new segment.
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Focus our efforts on the South-East United
States, preferably close to the coastline.
Will need to work together with different
counties and the Department of Environmental
Protection (DEP).
Barriers to Overcome: startup of new
company, downturn in housing market,
educating everyone about the advantages of
“green”.
Strategic Planning
Vision
Real Estate
Development Company
Mission
Environmentally
responsible development
Strategic Planning
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Values
Customer satisfaction
Teamwork
Integrity
Profitability
Efficiency
Responsibility
Strategic Planning
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Objectives
Selecting right sites
Repaying debts
Strategies
Utilize preexisting platform to create a
business layout
Obtain financial support from the already
existing business
Market to the preexisting marketplace with a
new platform
Goals
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Design quality and set new standards of green
infrastructure
Idea of innovation
Employing right people
Programs
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Marketing
Site selection
Create task force from
within the parent
company
Market & Competition
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Market
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US (southeast)
Residential communities (near coast)
Commercial and Industrial (near major highways,
railroads and ports)
Competition
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NewCom Development (1st green office park NE FL)
St. Joe Company
Sleiman Enterprises
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Totaling 75 Million for start-up costs
Broken down:
-Initial property acquisition
-Hiring (new employee salary)
-Marketing
-New Offices space
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1 Yr Successfully Enter the Market
2 Yr Continue growth of properties
5 Yr Financial Equilibrium
10 Yr Start more expansion
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Office
-Management
-Secretary
-PM
-Estimating
-Property Management
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Field
-Field Eng
-Project Eng
-Super
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Most of the financial source for our company will come
from the parent company Perini. Perini has assets and
resources that will help to start our real estate
development projects. We anticipate a start up cost of
approximately $75 million which we plan to repay by
the end of year five. We anticipate running at a loss
through the first two years of operations. At the
beginning of year three we hope to have developed
four to five parcels and completed the sale of two to
investors at a profit of $10 to $20 million.
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Green building and development is still in its infancy
stage. Most people know very little about green
building .
We plan to market our business and our developments
mainly from an educational standpoint. The more
people know, the more they will support your vision
and feel comfortable doing so.
Green building is a smarter way of construction. It not
only minimizes the impact on the environment, but is
financially more beneficial over a long period of time.
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Building greener will benefit the nation as a whole.
The current condition of the U.S. market is based heavily on global
economic and social conditions, specifically the rising crisis in the
U.S. credit and mortgage market, the price of crude oil and
political tensions through out the world. This weighs heavily on
the U.S construction and development market as the interest rates
are in flux and the cost of fuel is high. In addition, OPEC has
pushed hard to keep green development from advancing too
quickly as it wants to ensure dependency on oil. However, it is
these very issues that Perini Real Estate Development will use to
market its green infrastructure and green development.
By utilizing sustainable sites and buildings, and harnessing the
power of nature versus fossil fuels, we can reduce dependency on
foreign oil.
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Environmental impact is a service to the community
Energy efficient infrastructure will pay itself off in the
long run and if the energy crisis continues the short
run
Increase sustainability and marketing potential of the
company buying property
Installation of solar energy collection systems, wind
energy and green wastewater management will allow
buyers to sell the development at a higher price
Offer to install the infrastructure required to allow for
companies who purchase property to further there
green investment by providing electric, biomass or
hydrogen fueling stations
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Perini Corporation based in Framingham, MA
Perini Real Estate Development based in
Jacksonville, Florida
Would be only 1 of 4 Fortune 500 Companies
Will attract pool of young talent from UNF/UF who
would want to work for a Fortune 500 company
City of Jacksonville may offer incentives to open an
office downtown
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Why Florida?
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Jacksonville - International airport
Jacksonville - Low rent per square foot
Florida - Cost of land available for development lower vs.
return higher than other states
Florida - Green friendly movement throughout the state
Florida - Most counties are becoming educated on green
issues
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Issues are tied together – liability vs. coverage
Protect all of Perini’s assets
General liability coverage
G.C’s Professional liability coverage
Excess or umbrella coverage
Confirm that insurance limits are adequate
Confirm that all contracts are reviewed
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Perform due diligence
Confirm property descriptions
Confirm that all property has clear title before
purchase
Confirm easements
Protect against encroachment
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All contracts reviewed prior to execution
Prepare to refute or counter arguments made by
AHU’s and land owners during negotiations
Protect all rights with regard to mineral and
environmental issues
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Strict adherence to all code and permitting issues
Land managers
Quarterly forecasts and regional impact studies
Reassess liability quarterly
Identify infrastructure requirements for the region
Identify all zoning and FLU requirements to protect against
inadvertent fraud
All protections necessary to defend all property and
contractual rights
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Key to success – management
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Green infrastructure WILL become the standard
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Proper planning and vision will lead to profits and
still protect resources
QUESTIONS?