GLENDALE MOUNTAIN VIEW
APRIL 2019
urbanstargroup.ca 1043 19 AV SE Calgary, AB T2G 1M1 1 OUR VALUES OUR PROJECTS OUR PROMISE
Our belief system is grounded on the principles UrbanStar has assembled a team of experienced We are driven by our core values of of delivering the highest quality, client centric builders, architects, engineers, and urban planners understanding, honesty and transparency to offerings in a professional and objective manner. dedicated to creating custom homes of high deliver the highest quality and attention to detail We strive to be the leaders in our professional value and new communities in Alberta. We have a in every project, offer services with the highest practice areas and we are passionately committed full range of high caliber and distinctive projects standards of professionalism, and lead the to a service-based culture where values such as covering single family homes, duplexes, multi- industry in our practice areas for our service-based understanding, honesty and transparency are family condos, and master planned communities. culture. followed. Our custom homes are built with the latest products and technology ensuring excellence in aesthetics, performance, and durability. EXECUTIVE SUMMARY
The natural environment in Southern Alberta is one of the most unique in Canada. Recognizing characteristic elements of the land, while maintaining environmental integrity, are key principles in Glendale Mountain View’s community design. Mimicking natural features, capturing sweeping topography and vast sightlines will be employed throughout the open space network to both establish a spatial identity and frame views of the scenic Rocky Mountains. Large clusters of native vegetation will be situated in low areas taking advantage of drainage paths and capitalizing on passive irrigation. Formal and informal pathways will promote connectivity and provide access to a vast array of the landscape’s cinematic natural features. UrbanStar’s Glendale Mountain View development will distill the complexity of its natural surroundings into a holistic neighbourhood for its residents, reflecting all facets of its surroundings in a thoughtful and engaging manner. Conveniently located in Rocky View County along Highway 1A, Glendale Mountain View is approximately 4km northeast of the Town of Cochrane and 35km northwest of the City of Calgary. Comprised of 674 acres of high quality land, the site provides optimal build-out potential. With a range of land use types, including single-family, multi-family, and commercial/retail, the potential build out value is assessed at CAD $954 million - $1.3 billion. This is an immediate development opportunity to acquire land well below replacement cost in a highly coveted scenic location between the City of Calgary and Canada’s Rocky Mountains. FORWARD LOOKING STATEMENTS
Nothing contained in this presentation is, or shall be relied upon, as a promise, guaranty, representation or warranty, specific or implied as to the future performance of the investment discussed in the presentation. This presentation may include certain “forward-looking statements.” All statements of historical fact, included herein are forward-looking statements, including, without limitation, future plans and objectives of the Corporation, statements concerning the anticipated regulatory approval of the Corporations land estimates for market growth, anticipated expenditures, the need for additional funds, and other events and circumstances described in terms of the Corporations expectations or intentions. Use of the words “anticipates”, “believes”, “estimates”, “expects”, “intends”, “plans”, “should” , and similar expressions herein are intended to identify forward looking-statements. These statements reflect the current internal projections, expectations or beliefs of the Corporation and are based on current information available to the Corporation. An investment in the Corporation is speculative due to the nature of the Corporations business. Forward-looking statements are subject to known and unknown risks, uncertainties and assumptions, including without limitation, changes in general economic conditions, competition, the Corporations success in marketing its products and addressing regulatory issues and other factors both in and outside the control of the Corporation. Although management of the Corporation believes expectations that represented in such statements are reasonable, there can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such events. There is no assurance the Corporation will be able to successfully raise the capital required, complete each of the growth initiatives described or obtain regulatory approval for its land asset. Investors must rely upon the ability, expertise, judgement, discretion, integrity and good faith of the management of the Corporation. The forward-looking statements contained in this presentation are expressly qualified in their entirety by this cautionary statement. The forward-looking statements made herein are made as of the dare hereof, and the corporation does not undertake any obligation to update such statements to reflect any new information, subsequent results or events or otherwise.
4 CONTENTS
INTRODUCTION Overview 6
Regional Context 7
Property Highlights 8
Vision 8
HISTORY
Project History 9
Timeline 9
Completed Studies 10
Existing Site Conditions 10
Where We Are Now 11
Moving Forward 15
OPPORTUNITY
Potential Land Value 16
Investment Summary 18
APPENDIX
Valuation Report INTRODUCTION
OVERVIEW CITY OF CALGARY LOCATION
Glendale Mountain View is located in Rocky View County along Highway 1A, directly adjacent to the Town of Cochrane and 35km northwest of the City of Calgary.
BUILD OUT POTENTIAL GLENDALE MOUNTAINVIEW TOTAL ACREAGE 360 Single - Family Units 1,364 ± 674 ACRES 612 Semi - Detached Units Total Units 392 Townhouse Units 26 Acres Commercial / Retail *per proposed Community Land Use Concept (p.13) GLENDALE RD GLENDALE MANOR GROSS DEVELOPABLE AREA ± 250 ACRES
± 674 acres (272.75 hectares) HWY 1A WINDY RIDGE ESTATES ± 73 ACRES RANGE RD 35 REGIONAL PIPED SERVICING STRATEGY WINDY RIDGE COMMERCIAL ± 44 ACRES WINDY RIDGE PHASE 1 • Piped Water (Bow River raw water diversion/ ± 160 ACRES treatment or Rocky View Water Co-op) • Sanitary Sewer (wastewater connection to Glenbow Ranch or regional connection) • Stormwater Management (Low Impact MOUNTAIN VIEW ESTATES Development Strategies, zero site discharge) ± 145 ACRES
BUILD OUT VALUE POTENTIAL RANGE RD 40 TOWN OF COCHRANE $954 million - $1.3 billion *per proposed Build Out Potential (p.16)
6 REGIONAL CONTEXT
The Glendale Mountain View site was acquired for its proximity to the City of Calgary, the Town of Cochrane, and the Rocky Mountains.
The supply of serviced land in the northwest portion of the City of Calgary has been virtually absorbed and development focus in this area is beginning to shift into Bearspaw and toward the Town of Cochrane. Glendale Mountain View capitalizes on this shift in development, while selecting a highly coveted scenic location with views of the Rocky Mountains.
BANFF TOWN OF COCHRANE 106km COCHRANE 0km
The Town of Cochrane is located approximately 35km west of Calgary’s city limits along Highway 1A. Cochrane’s population is 26,000 and growing, CANMORE making it one of Alberta’s largest towns and one 84km CITY OF of the fastest growing communities in Canada. CALGARY New businesses, such as Garmin, have recently 35km located their head office in Cochrane.
CITY OF CALGARY ROCKY MOUNTAINS
The City of Calgary is the largest city in Alberta and the fourth largest City in Canada. Located in the foothills of Alberta’s Rocky Mountains, at the confluence of the Bow and Elbow Rivers, its population is approximately 1.23 million and growing.
7 PROPERTY HIGHLIGHTS
LOCATION MOUNTAIN VIEWS HIGH QUALITY LANDSCAPE
Glendale Mountain View is situated in a peaceful The topography and strategic location of the site The natural environment in Southern Alberta rural setting with amenities available a short drive provide outstanding views to the southwest of the is one of the most unique in Canada. Glendale away in the Town of Cochrane (pictured) and the scenic Rocky Mountains. Mountain View is planned to maintain the City of Calgary. environmental integrity of the site while framing scenic views and establishing spatial identity.
VISION
Glendale Mountain View will showcase a community that is amenity rich and fully embodies the natural environment and character of Bearspaw. This community will celebrate the complexity of its natural surroundings through an organic neighbourhood design that is dedicated to maintaining open space through interconnected pathways and parks. Public amenities, a quaint commercial node, and variety of housing opportunities are envisaged for this community. Glendale Mountain View will strive to be socially, economically, and most importantly, environmentally sustainable.
8 HISTORY
2010 2012 2014 2016 2018 PROJECT HISTORY PROJECT INITIATION START DATE
The project was initiated in 2010 with a land LAND ACQUISITION PROCESS: ±674 Acres acquisition process that lasted until 2016. During this period, several pre-development studies were conducted. Once the assembly and pre- development studies were complete, UrbanStar’s PRE-DEVELOPMENT STUDIES project team undertook a community engagement process and drafted a conceptual scheme, which was submitted to Rocky View County, along with a proposed land use redesignation in 2017. PRE-DEVELOPMENT STUDIES
PHASE 1 ENVIRONMENTAL SITE ASSESSMENT (ESA) #1 GEOTECHNICAL INVESTIGATION WHY ROCKY VIEW COUNTY? PHASE 1 ENVIRONMENTAL SITE ASSESSMENT (ESA) #2 & 3 BIOPHYSICAL IMPACT ASSESSMENT & SPECIES AT RISK SURVEYS TOPOGRAPHICAL SURVEY STAGED MASTER DRAINAGE PLAN The Glendale Mountain View site, located within HISTORIC RESOURCES IMPACT ASSESSMENT VALUATION REPORT Rocky View County, was purchased in large TRANSPORTATION IMPACT ASSESSMENT part because of Calgary’s strong market factors. Calgary’s Census Metropolitan Area (CMA) population grew by 4.36% in 2013, compared to LAND USE CONCEPT DEVELOPMENT 3% province-wide. Housing demand growth in Calgary was fueled by several factors, including employment and net migration growth, low lending rates, and tight rental markets. This LAND USE CONCEPT DEVELOPMENT housing demand has led the northwest portion of Calgary to become virtually absorbed and as DERIVED DRAFT LAND USE CONCEPT a result, the development focus is beginning to COMMUNITY CONSULTATION shift toward Rocky View County and the Town of UPDATED LAND USE CONCEPT / MASTER PLAN Cochrane. Sales in Rocky View reached record SUBMITTED PROPOSED CONCEPTUAL SCHEME & levels in 2014, increasing by 28%. This places LAND USE REDESIGNATION TO ROCKY VIEW COUNTY Glendale Mountain View in a strategic location to capitalize on the growth and housing demand between the northwest portion of Calgary and the Town of Cochrane.
9 COMPLETED STUDIES EXISTING SITE CONDITIONS
1. PHASE I ENVIRONMENTAL SITE GENERAL DESCRIPTION ASSESSMENT (ESA) - Total of 3 conducted for different areas of the site: 1 - Base Property Consultants Ltd. (2010) • Gently rolling, mostly disturbed grassland and 2 & 3 - Amec Earth & Environmental (2011) cultivated fields • Home to former Windy Ridge Equestrian 2. TOPOGRAPHICAL SURVEY Maidment Land Surveys Ltd. (2013) Centre • Home to a number of wetlands, and significant 3. HISTORIC RESOURCES IMPACT wetlands will be protected ASSESSMENT (HRIA) Lifeways of Canada Ltd. (2014) and Clearance • Relatively low ecological diversity, little from Alberta Culture & Tourism (2014) wildlife, and no environmentally significant areas 4. GEOTECHNICAL INVESTIGATION Parkland Geotechnical Consulting Ltd. (2015) • Indigenous Bison Kill site found that has regional significance and will be interpreted 5. BIOPHYSICAL IMPACT ASSESSMENT and protected & SPECIES AT RISK SURVEYS HAB-TECH Environmental Ltd. (now Ecotone Environmental Ltd.) (2016)
6. STAGED MASTER DRAINAGE PLAN LGN Consulting Engineering Ltd. (2016)
7. VALUATION REPORT Altus Group Ltd. (2017)
8. TRANSPORTATION IMPACT ASSESSMENT Bunt & Associates Engineering Ltd. (2017)
10 ± ACRES 674 OF LAND
WHERE WE ARE NOW PRE-DEVELOPMENT 8 STUDIES
SUMMARY OF WHAT WE HAVE DONE TO-DATE
DRAFT LAND 1. Acquired ±674 acres of land (2010-2016) 5. Used feedback from community engagement to derive ultimate Land Use Concept/Master 1 USE CONCEPT 2. Completed various pre-development studies Plan (2016-2017) (2010-2017) 6. Submitted Proposed Conceptual Scheme and 3. Derived Draft Land Use Concept (2016) Land Use Redesignation to Rocky View County EXTENSIVE COMMUNITY (2017) CONSULTATION PROCESS 4. Conducted extensive community consultation (2016), to elicit feedback on proposed Land 7. Collaborated with Rocky View County and Concept, which included: other stakeholders (Alberta Transportation, Alberta Culture & Tourism) through various • Open Houses; stages of Administrative Review (2017-2019) LAND USE CONCEPT • Designated Project Website and Phone 1 MASTER PLAN Line; • Individual Landowner Meetings; SUBMITTED PROPOSED • Project Mailers sent to all landowners in CONCEPTUAL SCHEME & LAND Bearspaw Region; and USE REDESIGNATION TO ROCKY • News Advertorials in the Local Rocky View VIEW COUNTY Newspaper
ONGOING ADMINISTRATIVE REVIEW WITH ROCKY VIEW COUNTY & OTHER STAKEHOLDERS
11 CONCEPTUAL SCHEME COMMUNITY LAND USE CONCEPT
Glendale Mountain View Conceptual Scheme will showcase a community that is amenity-rich and fully embodies the natural environment and character of Bearspaw. The community celebrates
the complexity of its natural surroundings 81 KJ 24 through an organic neighbourhood design that is dedicated to maintaining open space through 81 KJ 24 interconnected and extensive pathways and parks. A number of principles and objectives were outlined to guide the Master Plan design, as described on page 14. Through using “Conservation by Design” techniques, the Plan reduces the impact on the environmental and cultural features existing on 1 the site. A mix of housing types and styles were 1 included to diversify the built form and provide options for residents. A Homeowner’s Association will be created to oversee that the following community design strategies are employed to ensure the aesthetically pleasing feel and maintenance of the community: • Landscape Controls; • Architectural Controls; • Utilization of the Community Plaza; and, • Neighbourhood Bylaws regarding dark skies, noise, and unsightly property. GLENDALE MOUNTAIN VIEWGLENDALE MOUNTAIN VIEW MUNICIPAL RESERVE MUNICIPAL RESERVE SCHOOL SITE SCHOOL SITE
A local commercial node meant to serve SINGLE-FAMILY SINGLE-FAMILY COMMUNITY AMENITY COMMUNITY AMENITY COMMUNITY FACILITY COMMUNITY FACILITY neighbourhood residents will be introduced in addition to other community amenities, includingSEMI-DETACHED SEMI-DETACHED ROAD WIDENING ROAD WIDENING HISTORICAL RESOURCE HISTORICAL RESOURCE a regional transit park and ride, a school, sports TOWNHOUSE TOWNHOUSE ENVIRONMENTAL RESERVE ENVIRONMENTAL RESERVELOCAL COMMERCIAL & COMMUNITYLOCAL PLAZA COMMERCIAL & COMMUNITY PLAZA fields, and an interpretive centre for a historical COMMERCIAL COMMERCIAL PATHWAY NETWORK PATHWAY NETWORK REGIONAL PARK & RIDE resource. REGIONAL PARK & RIDE
12 Community Amenity Sites
EDUCATION AND COMMUNITY FACILITIES SCHOOL SITE | CONCEPTUAL PLAN VIEW
8 10 2
Community Amenity Sites 7
Community Amenity Sites EDUCATION AND COMMUNITY FACILITIES NEIGHBOURHOOD COMMERCIAL NODE | CONCEPTUAL PLAN VIEW 5 CENTRAL COMMERCIAL HUB 6 8
8 Map Key 10 3 11 2
7 1 Primary Collector Road 7 2 9 2 Collector Road 5 Community Facility 3 5 School Site 6 5 8 N.T.S 4 Sunken Lawn 8 COMMUNITY FACILITY | CONCEPTUAL PLAN VIEW
6 Map Key 3 The Commercial Hub will provide opportunities that promote social interaction Parking Lots 11 and foster a sense of community. Opportunities will exist for local business and 5 commercial amenities, providing residents with all their needs right in the heart 5 of the community. Potential features include the restoration of existing tree stands, 8 pedestrian oriented design with urban plazas and lawn space, and accessible 6 School 1 Primary Collector Road parking for businesses. Collector Road 4 9 7 Active Sports Fields 2 5 5 Community Facility Map Key 3 5 School Site 8 Paved Trails 5 4 8 N.T.S 43 Sunken Lawn 1 Primary Collector Road 9 Commercial Hub 1 3 5 Parking Lots 2 Local Road Townhome Residential Lots 2 8 10 6 School 3 Community Trail Active Sports Fields 4 4 Plaza Space 11 Semi Detached Residential Lots 7 1 5 Existing Vegetation 6 5 Community Facility8 Paved Trails N.T.S 3 6 Commercial Buildings 7 9 Commercial Hub 1 7 Parking Lots Townhome Residential Lots 2 8 Market Promenade 10 8 N.T.S 11 Semi Detached Residential Lots Community Facility 1 PRIMARY COLLECTOR ROAD 5 EXISTING VEGETATION N.T.S 1 PRIMARY COLLECTOR ROAD 5 PARKING LOTS 9 COMMERCIAL HUB 2 LOCAL ROAD 6 COMMERCIAL BUILDINGS 2 COLLECTOR ROAD 6 SCHOOL 10 TOWNHOUSE RESIDENTIAL 3 COMMUNITY TRAIL 7 PARKING LOTS 3 COMMUNITY FACILITY 7 ACTIVE SPORTS FIELDS 11 SEMI-DETACHED RESIDENTIAL 4 PLAZA SPACE 8 MARKET PROMENADE 4 SUNKEN LAWN 8 PAVED TRAILS
13 CONCEPTUAL SCHEME PRINCIPLES CONCEPTUAL SCHEME OBJECTIVES ACHIEVED IN CONCEPTUAL SCHEME?
• Piped Water and Wastewater Servicing SUSTAINABLE SERVICING • Low-Impact Development • Zero Discharge of Stormwater
• Regional Park-and-Ride MULTI-MODAL TRANSPORTATION • Pathway Network • Highway 1A Improvements
VARIED HOUSING FORMS • 30% Single-Family and 70% Villa Housing • Critical Mass to Support Servicing
RESPECT EXISTING RESIDENTS • 30m Vegetated Perimeter Buffer • Transparent and Ongoing Communication & NEIGHBOURS
• 50% Open Space Conserved 47.42% RESPECT THE NATURAL • Preserve and Enhance Natural Features (e.g. tree stands, overland drainage courses, ENVIRONMENT and major wetlands) • Naturalized Trails and Pathways
• School Site • Small-Scale Local Commercial PROVIDE LOCAL COMMUNITY • Sports Fields / Courts, Parks and Recreation AMENITIES Spaces • Public Spaces • Celebration of Historical Features
14 MOVING FORWARD
1. ONGOING REVIEW Ongoing review and revisions to Conceptual Scheme (updated May 2019) by stakeholders and Government, such as Rocky View County Planning/Engineering and Alberta Transportation.
2. EMERGING POLICY Calgary Metropolitan Region Board Interim Growth Plan is to determine regionally where servicing opportunities may be made available. This determination will be made in 2021 and may impact the parameters of the Conceptual Scheme. Further, the Bearspaw Area Structure Plan (ASP), in which the site is located, is set to be updated in 2019 and may have an impact on the Glendale Mountain View Conceptual Scheme from a servicing and lotting perspective.
3. REGIONAL SERVICING Regional servicing considerations are dependent on the possible enactment of the Glenbow Ranch ASP as well as an amendment to the Bearspaw ASP (has a net-zero stormwater approach). The Glendale Mountain View Conceptual Scheme site can attain piped water servicing via Rocky View Water Co-op; however, the most major issue is achieving piped sanitary servicing if the Glenbow Ranch ASP does not proceed, which proposes piped servicing solutions that Glendale Mountain View will ideally connect to. The Bearspaw ASP amendment process will also investigate regional piped servicing solutions that may benefit Glendale Mountain View.
4. UPGRADES TO HIGHWAY 1A Upgrades to Highway 1A, which abuts the Glendale Mountain View lands on the southern boundary, may be triggered by the development proposed in Glendale Mountain View. These are outlined in detail in the Conceptual Scheme.
15 OPPORTUNITY
GLENDALE MOUNTAIN VIEW BUILD-OUT VALUE POTENTIAL POTENTIAL LAND VALUE — HIGHEST & BEST USE LAND USE SALEABLE RETAIL MARKET AVERAGE BUILD OUT VALUE • The Bearspaw ASP’s current land use TYPE UNITS RANGE POTENTIAL zoning allows for 4 acre parcel Country Residential development. We have proposed Single Family 700 - 900 $900,000 - 1.2m $1.0m $700 - 900m 1,364 residential lots and ±150,000 ft2 of commercial/retail. Multi-Family 400 - 600 $500,000 - 800,000 $600,000 $240 - 360m • These densities include 47.42% of open/green space. Commercial / Retail ±150,000 ft2 (26 ac) $1.0 - 1.5m/acre $1.3m $30 - 45m • The average prices are based on the average of the market residential lot range price. TOTAL $954m - 1.3b
COMPARABLE LAND PROJECT STATISTICS
PROJECT SALEABLE RETAIL MARKET AVERAGE BUILD OUT VALUE UNITS RANGE POTENTIAL
Watermark 560 (1.95 upa) $600,000 - 4.0m $1.2m $675m
Harmony in Springbank 3500 (2.0 upa) $400,000 - 600,000 $500,000 $240 - 360m (with home)
Artesia at Heritage Pointe 272 (1.97 upa) $1.2 - 1.4m $1.3m $30 - 45m (with home)
16 COMPARABLE LAND PROJECTS
SILVERHORN 0.37 UPA
WESTMINSTER GLEN GLENDALE RANCH 0.21 UPA 0.69 UPA BEARSNEST ESTATES 0.16 UPA
GLENDALE MOUNTAINVIEW BEARSPAW COUNTRY GREYSTONE ESTATES RESIDENTIAL 0.26 UPA 0.28 UPA
WOODLANDS WOODLAND RANGE 0.21 UPA 0.39 UPA COCHRANE
WOODLAND RANGE 0.29 UPA WILLOW CREEK 0.56 UPA
GLENBOW RANCH PROVINCIAL PARK GLENBOW RANCH ASP 2.66 UPA
CITY OF CALGARY
WATERMARK 1.95 UPA
BEARSPAW RIVER VIEW 0.46 UPA
17 INVESTMENT SUMMARY
PROXIMITY TO ROCKY MOUNTAINS
LAND POTENTIAL • Southwest access in under one hour to the scenic Rocky Mountains • ± 674 acres currently zoned to allow for 4 acre lots PROXIMITY TO CALGARY’S RING ROAD • Residential subdivision with a commercial/ retail component will follow land redesignation • Immediate access to Highway 1A from Plan Area with ease of access to the Ring Road and Calgary’s Highway Network STRUCTURE
LIMITED LAND • 80% of net profits of Corporation allocated to investors and all net profits are TFSA eligible • Finite amount of developable lands between Calgary and Cochrane city limits • Debentures are RRSP eligible and secured against land and registered on title via a • Very few developable parcels of land left mortgage in the northwest portion of Calgary
PROXIMITY TO URBAN CENTRES POPULATION GROWTH
• Located on urban boundary of Cochrane • Anticipated population growth of ±1.6 million people for Calgary over the next • Located 35km from the City of Calgary 60 years • Within an area where large development • Cochrane is one of Alberta’s largest plans have been approved. towns and one of the fastest growing communities in Canada
18 DISCLAIMER CONTACT US
This report does not constitute a solicitation or UrbanStar an offer to purchase the securities referred to 1043 19 AV SE herein, which is being made to qualified investors Calgary, AB T2G 1M1 under an Offering Memorandum available from our office. There are risks associated with an investment in land and our investments are urbanstargroup.ca not guaranteed. The value of land can fluctuate significantly as a result of among other things, [email protected] changing economic and real estate market conditions, and the past performance of our land P: 403.984.4050 investments is not necessarily representative of F: 403.984.4060 current or future performance. urbanstargroup.ca 1043 19 AV SE Calgary, AB T2G 1M1