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E cologi C iti

E cologi C iti. “ Beyond the Urban Farm ” Sustainable Urban Food Centers Grow, Renew, Sell, Process, Generate Energy. Our Mission. Meeting the food and energy needs of our urban communities through a vertically integrated business ecology.

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E cologi C iti

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  1. EcologiCiti “Beyond the Urban Farm” Sustainable Urban Food Centers Grow, Renew, Sell, Process, Generate Energy EcologiCiti = Think Global Grow Local

  2. Our Mission Meeting the food and energy needs of our urban communities through a vertically integrated business ecology. Renew properties, grow healthy local food, sell and process the food, and generate energy. Our Vision To reach over five million new customers in 5 years with over 15 locations in 7 major cities of the United States through our vertically integrated business centers. Building Sustainable Urban Communities. EcologiCiti = Think Global Grow Local 2

  3. 6. Real Estate 1. Food Business Model • Renewal of underutilized urban land • Renewal of old warehouses • Grow healthy • Grow local • Produce/Vegetables Renew Grow Produce Real Estate EcologiCiti Centers 5. On-Site Energy Generation (OSG) 2. Sell Produce Generate Energy Clean waste • Reduce energy cost • Create profit centers • Distribute vegetables • Local markets • Restaurants • City schools • Hospitals • Public agencies Sell Create 4. Develop and operate food processing centers Jobs, Process, Training 3. Economic Development • Incentives • Tax Credits • Grants • Bond Financing • Extending the life of our greenmarket crops • Jobs creation and training • Incubator Kitchens EcologiCiti = Think Global Grow Local 3

  4. Business Plan Executive Summary – Sustainable Urban Food Centers EcologiCiti is a scalable, vertically integrated business center aggregator concept. We will Grow, Renew, Sell, Process and Generate Energy in our centers. Our goal is to provide fresh produce to over 5 million new customer in 15 locations throughout 7 major US cities to the multi-billion dollar fresh food industry: • Renewing and revitalization underutilized properties in urban locales – Real estate development. • Growing, packaging, processing and distributingproduce/vegetables using clean, Controlled Environment Agriculture (CEA) technologies – Efficient food production technologies. • Processing our produce in our centers to extend the life cycle and range of what we grow. • “Grow Local - Buy Local”– Wholesale and Retail Direct Sales • In-house incubator kitchens located on our sites will be rented out to entrepreneurial food service vendors. • On-site Energy Generation (OSG), a renewable energy source, will reduce our energy expenses. • Creating job opportunities in urban areas – Community outreach and commitment. Vertically integrated centers will be built in close proximity to dense urban population centers. • Centers will be housed in underutilized manufacturing or industrial locations. The concept is repeatable. • This will provide a competitive advantage by combining all the required business components under one roof. EcologiCitihas targeted sites in the New York Metropolitan region of Brooklyn, Queens, Staten Island and the Bronx. Sites in Connecticut and the New Jersey cities of Paterson and Newark are in pre development. EcologiCiti = Think Global Grow Local 4

  5. Vertically Integrated EcologiCiti Food & Energy Centers (OSG) H2O Incubator Kitchens EcologiCiti = Think Global Grow Local 5

  6. Business Plan Executive Summary The EcologiCiti business plan, a vertically integrated food center supply concept, controls production, processing, utility costs, distribution (retail and wholesale) and quality of the produce. • Indoor vertical growing technologies – CEA, Aeroponic and Hydroponic –are proven to have the highest yield per square foot, are clean, predictable, continuous, profitable, and scalable forms of agricultural growing. • Innovative hybridization in growing techniques will provide healthy, affordable, locally grown food. • “Grow it locally” – make it immediately available to the consumers, reducing transportation cost. • Assured growth cycle, sustainability, consumable, climate independent product. • Clean, germ free and fresh, high-quality, locally grown produceavailable to our communities. • Utilize the production of food to create jobs and assist in economic development. • Provide positive environmental impacts to the local community through low cost energy use, efficient water use (EWU), and the minimization of solid municipal waste (SMW). The“Grow, Sell, Process, Generate Energy and Renew” model, is a closed-loop sustainable development model creating a Self Sustaining Ecocentric Business. EcologiCiti = Think Global Grow Local 6

  7. Real Estate Development Models EcologiCiti = Think Global Grow Local 7

  8. Business Plan - The Market Executive Summary EcologiCiti vertically integrated center model is unique and new to the market. EcologiCiti model responds to the revolutionary change to the US food industry. EcologiCiti is meeting consumer demand by growing fresh, healthy e-coli free, local produce. • Higher energy prices have increased the cost of fuel adversely, impacting food prices. • Grow it Locally will attract a greater volume of customers to our offerings. • Volatile and intensified climate changes threaten catastrophic impact on food availability and cost. • Weather is the single largest risk to long distance food supply chain. • Extreme weather events can create spikes in market prices. With our center concept, we are responding to the “Locavore”Revolution, a sweeping impulse for locally grown, healthy, fresh, sustainable food that has increased demand from upscale purveyors and celebrity chef restaurants all the way to federally funded school lunch programs, institutions and corporations. EcologiCitivertically integrated indoor food centers are beyond the urban farm. Using the CEAmodel, we provide food security with minimal environmental impact, sustainability and increased public health while providing local economic development benefits. EcologiCiti = Think Global Grow Local 8

  9. Market Forces EcologiCiti = Think Global Grow Local 9

  10. The Market Market Positioning, Multiple Revenue Stream and Profit Centers EcologiCiti is positioning our vertically integrated food centers product development, marketing, and service resources on segments of the food industry with the greatest unmet demand to profitably distribute produce to: • Upscale food sellers, mass market vendors and local groceries, and restaurants • Public institutions, schools. • Hospitals, • Faith-based organizations and social outreach programs • Corporate commissaries. EcologiCiti vertically integrated food centers house multiple profit centers under a single roof: • Real estate development and leasing • Food production • Produce sales • Processing / packaging / distribution / incubator kitchens • On-site generation of energy • Waste to energy conversion • Training programs and job creation • The medicinal pharmaceutical and cosmetological plants are a future lucrative market sector EcologiCitiis providing food security and reduced food risk through innovative integration of existing technologies and sustainable food and energy production. EcologiCiti = Think Global Grow Local 10

  11. Multiple Profit Centers As the EcologiCiti project matures, we expect that Energy Generation, as a component of sales, will increase substantially, becoming a bigger profit center for the operation and validating the viability of a vertically integrated business. EcologiCiti = Think Global Grow Local 11

  12. Business Operations Operations: Growing, Distribution, Processing, Branding, Developing We are building an EcologiCiti community with our vertically integrated food centers operations. • Local food distribution, time and distance, will be greatly reduced by developing locations in close physical proximity to retailers and our target urban market. • Distribute, on a wholesale and retail basis, our produce within a 100 mile radius from our centers. • EcologiCitiwill be creating valuable assets in otherwise non-performing real estate by selecting target sites in underutilized and often neglected locations. • CEA, Aeroponic and Hydroponic techniques will be use for growing produce indoors 24/7. • CEAprovides a predictable model for continuous food production. • CEA,together with the use of LED lighting and a water nutrient solution, allow for the growth of plants in high density rack space, the achievement of highly efficient predictable crop and high yield per square foot of developed space. • Indoor CEA, Aeroponic and Hydroponic techniques are beyond climatic and long distance threat of disruption. • Marketing locally grown food in retail grocery space at our locations will attract customers. • 24/7 use of processing center and incubator kitchens to growers and small food entrepreneurs. EcologiCiti = Think Global Grow Local 12

  13. Business Operations: Onsite Energy Generation (OSG) Operations: Energy and H2O + CO2 …. Waste to Energy Conversion EcologiCiti = Think Global Grow Local 13

  14. Business Operations Operations: Energy and H2O, Jobs Training, Incubator Kitchens • OSGresponds to local energy costs. Credits and incentives are available. • Combined heat and power (CHP) integrates the production of usable heat and power (electricity), in one single, highly efficient process. • OSG component will provide a profit center by selling energy at below market rates. • OSG production will minimize overhead costs by producing energy at low rates. • Controlling energy costs of our food growing and refrigeration will reduce cost and increase revenue. • OSGelectricity and CHP will offer economical, sustainable electricity and heating to the tenant occupancies. • Waste Conversion Technologies will enhance profitability for the basic OSG operation. • Water Incentive “–” Scarcity “+” Infrastructure Benefits “=” Incentives. • Utilization of diverted landfill-bound WTEF- SMW municipal waste will generate tipping fees. • Jobs Training Programs is a community service component that attracts public incentives. • Incubator Food Kitchens –rentable commercial kitchen space allows new food businesses to develop. EcologiCiti = Think Global Grow Local 14

  15. Vertical Centers Storm Water Retention Conserve and Re-Use Solar Panels Stormwater EcologiCiti = Think Global Grow Local 15

  16. EcologiCiti Development Model EcologiCiti will pursue several growth development models. Model #1 is aRapid Start Center Sites: Rapid Start Center Scale (RSCS) sites: Phased 6 to 9 months to revenue (8 to 10 planned sites). • Rapid on-line redevelopment by recycling buildings vs. new build development. • RSCSsites are small square foot projects in existing buildings with simple industrial construction which are capable of handling heavy load factors. • RSCS are responsive to local community’s needs. Total 10 sites in 5 years. • These RSCS are intended to prove the business model by creating quick profitable startups. • The RSCS model is scalable, flexible startup responding to individual food, energy, site, land and jobs availability in a given market location. • Smaller RSCS community-based facilities (Greenpoint, Patterson, Whitestone) – can be phased 6 to 9 months. Rapid Start Center Scale (RSCS) sites: • Phase I is focused on opportunities in and around New York City and other major US cities. • Neighborhood sites zoned for multi-use, brownfields. Properties with a low asset value basis. • Model can be replicated to other high food costs, high energy cost markets with water crises. Florida and California. RSCS Financial Requirement: EcologiCitiis pursuing a financial commitment per RSCS of $1.5 to $5.0 million EcologiCiti = Think Global Grow Local 16

  17. Center Development Phasing 2 1 EcologiCitiUrban Scale Center Sites (USCS) will be large-scale urban food centers via a three-phase construction project. 3 EcologiCiti = Think Global Grow Local 17

  18. EcologiCiti Development Model EcologiCiti will quickly deploy RSCS and couple the model with our USCS Model #2 centers: Urban Scale Center Sites (USCS): Phased 18 months to 2 years to revenue (5 planned sites). • Larger USCS projects focused on either underutilized warehouse or industrial sites. • Purpose built facilities to meet the project’s needs. Total of 5 new facilities in 5 years. • Site will be minimum of 50,000 to 100,000 Sq. Ft in size • Large Urban development centers (Bronx, Bush Terminal, Newark, Bridgeport) – Phased 1.5 to 3 years • Implementation requires intensive planning and phased construction. Site financial requirements are studied per project. • Economic and industrial development zones, partnerships with NGOs or public initiatives sites. • Brownfield Sites “=” “+” Incentives, strong upside potential. Urban Scale Center Sites (USCS): • Phase 2 is focused on opportunities in and around New York City, Boston, Bridgeport and Atlanta. • Neighborhood sites zoned for multi-use, brownfields and or properties with a low asset value basis. • The Urban model can be implemented in high food cost, high energy cost markets. Florida and California. USCS Financial Requirement: EcologiCitiis pursuing a financial commitment per USCS of $9.0 to $12.0 million EcologiCiti = Think Global Grow Local 18

  19. Potential Development Sites Controlled environment approach to site selection, growing produce and energy generation can be tailored to the specific locations and structures reducing cost, time to re-develop and operate. Brownfield sites and benefits: • Low asset value, high cost of entry, public incentives. • Suitable zoning. • Proximity to underserved urban communities. • Municipal real estate tax abatement and Energy + New Market Tax Credits. • Governmental incentives. • Proximity to regional transportation network. • Horizontal – low-rise development. Horizontal Low-rise development - Old Industrial Manufacturing Structures and benefits: • Proximity to underserved communities, existing buildings, variety of structures, shapes and sizes. • Few emerging manufacturing uses. • Zoning barriers to change of use. • Public incentives: Food Desert, IDZ, Enterprise Zones. • Solid high bay construction, heavy loads. Whether using a recycled building or new build simple industrial structures with high performance thermal cladding can be used. Optimally 18’ ceiling heights and 100-150 pound live loads is all that is required. Flat or low pitch roofs permit rooftop greenhouse or attic level CEA growing based on solar power enhanced by LED lighting. EcologiCiti = Think Global Grow Local 19

  20. Project Timeline Typical Rapid Start projects will begin operations in late 2015 Q1 with Rapid Start Center Sites #1 and Urban Scale Center Sites #1 2014Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 EcologiCiti Rapid Start Center Sites # 1 Pre Construction / Construction Rapid Start Center Sites #1 Operations Begin and Continued Operations at RSCS # 1 Urban Scale Center Site #1 Pre Construction/ Construction Rapid Start Scale Site # 2 Operations Begin and Continued Operations at RSCS # 2 RSCS will provide research and development for all areas of the business including production methods, marketing, branding, processing, distribution, energy production and the creation of a consumer base. EcologiCiti = Think Global Grow Local 20

  21. Market Position EcologiCitiSustainable Urban Food Centers • EcologiCiti will focus on operating sites that allow for the production of renewable energy to sustainably support our urban food production plant at a cost benefit to local energy market rates. • On-site renewable energy generation at below market rates add a key profit element to our model. • Access to below market utility costs, combined with a much lower fossil fuel requirement, allow EcologiCiti to produce vegetables year round at lower per unit cost than conventional farming methods. • EcologiCiti has targeted urban areas that do not have the means to sustainably grow produce using traditional soil based agriculture. • High density CEA provides high yield, high quality produce locally. • The New York area has several different growing methods employed in its boroughs: • Rooftop soil based, traditional soil based, hydroponic greenhouse. • Soil-based agriculture is unable to match CEA on a per yield sf basis. • There are no CEA or soil-based agricultural operations currently producing locally at an industrial scale. • EcologiCitiproposes to grow our market share by employing vertically integrated techniques to service the unmet market demand. • Growing decentralized energy capacity is the most viable strategy to handle future demand for energy. EcologiCiti = Think Global Grow Local 21

  22. Market Positioning – Competition Competitive Landscape - New York Area 2014 Commercial Competition. EcologiCiti = Think Global Grow Local 22

  23. Executive Management Team EcologiCiti has grouped together a management team with the knowledge and proven business acumen to successfully create and implement a food energy business. • The founders of EcologiCiti bring together the experience, expertise and business acumen to successfully manage the complexity and foster achievable project innovation.  • The EcologiCiti team is comprised of recognized leaders and senior managers with over 100 years of proven track records of successful, sustainable, real estate development and construction management. EcologiCiti = Think Global Grow Local 23

  24. Executive Management Team EcologiCiti = Think Global Grow Local 24

  25. Business Center Inputs and Outputs EcologiCiti = Think Global Grow Local 25

  26. Project Equity Requirements Initial Investment: Startup Capital and Financial Requirements EcologiCiti = Think Global Grow Local 26

  27. Project Equity Requirements Initial Investment: Financial Data • Additional EcologiCiti sites will be developed starting in Year 2. • We anticipate doing a second round of funding at that time. • Initial investors will be provided the right of first refusal for the second round of financing. • We anticipate having five (7) RSCSfacilities and three (5) USCSfacilities operating by Year 5. • Total debt for the development of two (2) RSCSand one (1) USCS, including operations, is estimated to be $28,000,000. • Additionally, we estimate receiving $25,000,000 in tax exempt bonds. EcologiCiti = Think Global Grow Local 27

  28. Business Exit Strategy EcologiCiti has developed an Exit Strategy as our Urban Food Center sites mature and reach a profitable asset value. • EcologiCiti proposes to sell the properties (including all infrastructure) with a stay-of-management turnkey agreement. • EcologiCiti parent company proposes to manage these ongoing business operations and control the evolution of the EcologiCiti brand. • Separating the assets from the business operations of EcologiCiti will unlock the value of our brand and position the company for further future growth. • In Year 5, with a proven track record of performance and profitability, an intensified EcologiCiti expansion program would seek to recapitalize. • Recapitalization will allow EcologiCiti to pursue multiple sites in designated cities. • Leveraging private capital would allow EcologiCiti for the pursuit of multiple sites in designated cities at the same time. • Leveraging private investment with New Market Tax Credits (NMTC) and targeted public grants/incentives would be welcomed by local economic development authorities as an engine that accelerates the growth of a new urban industry where the benefit of “local” is irreplaceable and intrinsic. EcologiCiti = Think Global Grow Local 28

  29. Market Analysis Branding and Segmentation • EcologiCiti brand positioning and marketing plan will communicate to vendors our products’ value • “People, Profit and Planet,” the three pillars of the Triple Bottom Line, an effort to maximize profits, encourage sustainable community development and minimize negative environmental impacts. • Segment our markets to improve our competitiveness and profitability with customers by focusing food product development, marketing, and service resources on the supermarket segments. • Multiplying our marketing and service offerings will = more profits. • EcologiCiti can greatly improve its share of local market by developing green food products and clean energy services with a targeted marketing message focused on specific segments and their specific needs. • We look to sell our Produce in Waldbaums, Pathmark, A&P, The Food Emporium and Whole Foods. • EcologiCiti will increase customer retention and create brand loyalty by focusing on the needs of our most desirable customers. • EcologiCiti will transform the growing of food from present day farming to new modern production techniques, vastly increasing both productivity and quality to consumers. EcologiCiti = Think Global Grow Local 29

  30. EcologiCiti Food Centers EcologiCiti = Think Global Grow Local 30

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