RICHFIELD’S TOWN CENTER: A NEW MODEL FOR HEALTHY LIVING

T h e C o r n e r s t o n e G r o u p • 9 5 2 . 4 8 4 . 6 8 5 7 • c c a r e y @ t c g m n . c o m • w w w. t c g m n . c o m

“We are all part of our world, and what we do in the spaces around us not only shapes them but shapes ourselves. We can create places that devour and destroy the environment and that, in turn, destroy us. Or we can do the opposite -- create places that help us live in harmony with the environment and sustain our health.”-Esther Sternberg, MD

CONTENTS PAGE

1 Our Vision for Lyndale Gardens 3

2 Project Overview 4

3 Project Design 5

Site Plan 6

Amenities 7

Housing 8

Retail 9

4 Project Financials 10

5 Market Demographics 11

6 A Healthy, Connected & Thriving Community 12- 13

7 Arts & Culture Partnerships 14

8 Innovation Center Partnership Opportunity 15

9 About the Cornerstone Group 16

10 Our Team 17

Our Team Continued 18

References 19

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“I think we must search for solutions that solve problems across many challenges; piecemeal strategies will fail. We must start from the bottom up which means creating buildings and communities that use less resources and much less fossil fuels, at the same time offering a right engagement in life, meaningful work, local healthy food, and plenty of “incidental” physical activity...”

-Richard Jackson, MD, MPH

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OUR VISION FOR LYNDALE GARDENS1

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The Cornerstone Group is pleased to present our plans for the redevelopment of the old Lyndale Garden Center in downtown Richfield. Our goal is to create a lively and vital town center that will serve as a new regional model for healthy, connected and thriving communities.

After 20 years in the redevelopment business, we are anxious to apply our accumulated learning to this new opportunity.

Here is some of what we have learned…

• Great redevelopment projects require a great location; Lyndale Gardens has the perfect location—on a beautiful lake, well-served by freeway and public transit, close to downtown and the airport as well as many major employment centers and neighborhood amenities.

• Real estate development is not just about bricks and mortar —it’s about a holistic approach to creating places that allow us to live in harmony with the planet and in ways that sustain our health; Lyndale Gardens maximizes environmental responsibility and pays attention to the way people want to live.

• Great places are thoughtfully designed to engage all five senses in all four seasons. Lyndale Gardens will be a destination for all ages in every season.

• Great communities integrate the elements of a healthy, connected and thriving community, bringing people together in expected and unexpected ways. Lyndale Gardens will build a new community culture around art, nature, healthy living, lifelong learning and community engagement.

• Innovation requires collaboration-no one can “go it alone” when they are forging new ground; Lyndale Gardens has been conceived and designed through a community engagement process that has built a deep level of local support and a powerful public-private partnership.

• Lyndale Gardens is perfectly positioned to be an outstanding investment—generating high returns on financial investment and social impact.

• A successful project is only realized with strong, multi-disciplinary skills, attention to detail, and a great development team.

• We do our best work in partnership with others and have assembled an all-star cast to help us with this project. In addition to developers and designers, we have brought together a diverse collaboration of farmers and foodies, artists and architects, bikers and bakers and many more local experts to ensure that we deliver the most innovative, well-designed concept.

This development opportunity aligns perfectly with our company mission, to transform the ordinary spaces that surround us into the extraordinary places that inspire us. We are excited to share our passion for sustainability, including smart land use strategies, healthy living, access to nature and the arts and the importance of local food in urban environments.

COLLEEN M. CAREY {PRESIDENT, THE CORNERSTONE GROUP}

INTENTIONAL DESIGN AND INTEGRATED COMPONENTS

Our design is intentional in integrating components, leveraging existing resources and introducing new spaces.

Existing assets include: adjacent parks, Wood Lake Nature Center, walking trails and bike paths, nearby restaurants and shops, and a transit corridor with easy accessibility to Highways 35W and 62.

Components of our Lyndale Gardens design include:

• 4.80 acre redevelopment parcel

• 151 units of housing -- 80% market rate, 20% affordable providing a full range of housing choices.

• A strong anchor grocery, Lakewinds Natural Foods, with 20,000 square feet of retail space.

• An additional 11,500 square feet of neighborhood retail space that will include unique restaurant spaces for restaurateurs who emphasize healthy local food.

• 290 Parking stalls, 1.30/housing unit, 7.80/1,000 SF of retail.

• An urban farm and space for a farmer’s market.

• A health innovation center that facilitates collaborative partnerships to design and test innovative ways to support a healthy, vibrant community.

• Generous outdoor space with new connections to existing resources (e.g. trail access) to support active living.

• Multi-use public spaces including a play area, performance stage, pizza oven and fire pit.

• Sustainably developed: 200kW solar array, on-site storm water management, participation in Xcel Energy Design Assistance and Green Communities programs.

• Sustainable living: organic gardens, onsite transit stop, bike parking and maintenance stations, car share with electric charging station, all within a walkable community central to local amenities and natural assets.

PROJECT OVERVIEW2

“This is the heart of Richfield. What we do here sets the tone for development in the area. It is an important piece for the community to come together in the next 20, 30, 40, 50 years down the road.” -Debbie Goettel, Mayor, City of Richfield

Lyndale Gardens Project is a strong, long-term investment in the transformation of an established community.

Investment Summary:• The average return on equity is

projected to be over 9% for the life of the project.

• The Internal Rate of Return is projected to be approximately 14% for a 10-year hold.

• The $42 million project is expected to yield a return on costs of 6%.

• Grants to support healthy living elements are secured for $1.7Million.

• The total equity investment is $7.7 million - with $6 million supported by market rate housing and $1.7 million supported by the Low Income Housing Tax Credit.

COMMUNITY CULTUREThe Cornerstone Group is taking on a new role for a developer by going beyond the typical “bricks and mortar” model. We engage the community in creating the culture - the values and practices that are meaningful to them- that allow them to be healthy and support each other in that endeavor. This ongoing process will achieve greater success in cultivating long-term change, than the typical developer-driven model.

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MINNEAPOLIS

ST. PAUL

MSPAIRPORTRICHFIELD/

SITE

Lyndale Gardens is centrally located in the first-tier suburb of Richfield in the Twin Cities with street frontage and access from Lyndale Avenue, a major north-south arterial. Lyndale Gardens is bordered by strong, established single-family and multi-family communities and Downtown Richfield’s retail/commercial hub at 66th Street.

The project has excellent visibility and accessibility to key transit corridors, major highways and is a short commute to nearby employment centers. Public transportation provide connections to the Twin Cities Airport and major shopping destinations such as Southdale Mall, Super Target and the Mall of America.

Traffic counts range from 13,000 trips per day on Lyndale Avenue to 26,500 trips per day on 66th Avenue.

Shopping Center/Retail

HUB Shopping CenterRainbow Foods

Michael’sMarshall’sWalgreens

Lyndale StationLA Fitness

Firehouse SubsVonHanson’s Meats

Lyndale PlazaOpened 201294 Market rate100% Occupied

ChamppsPetcoFedExJimmy John’s

City BellaSenior Co-op

*Lyndale Gardens

Lakewinds

Richfield Lake Park

WoodlakeNature Center

Medical/Restaurant

Pizza Luce W 66th Street W 66th StreetW 66th Street

Lynd

ale

Ave

S

Lynd

ale

Ave

S

W 64th Street

HousingRestaurantPark

Express Bus or Bus Rapid TransitWalking & Bike TrailBike Route

Crosstown Hwy

Inte

rsta

te H

wy

Playground

PROJECT DESIGN3

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The 6-story residential building will be situated on the 4.8 parcel with access to lake trails and provide many units with beautiful views of Richfield Lake. The majority of the parking for the housing will be provided in a secured, underground, heated parking garage. Additional resident parking will be available immediately adjacent to the building. Public parking will be available for community events such as the farmer’s market and other public amenities.

The residential and commercial components will be connected by the public plaza area. The community spaces will overlook the Lake and will provide public views and access to the natural amenities.

Residential Building

Turn AroundDrop-o!

34 residential parking spaces

98 retail parking spaces

Residential parking garage below

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77

14

14

9

6

21 21 20

Open air market

Retail(10,000 sq. ft.)

Stage

R I C H F I E L D L A K E

6 4 T H S T R E E T W E S T

LY N D A L E AV E N U E S OU T H

Proposed Lakewinds Natural Foods

Loading Dock

CommunityRoom

TownhomesTrail

Connection

GardenTerrace

NewFence

Pedestrian Connection

CommunityTerrace

CommunityHearth/Fire

Place

Retail/O!ce

Splash Pad

CommunityOven

Community Garden

Bridge tomatch Existing

TrailConnection

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Parking/ Farmer’s Market Pavilion

Public Plaza/Park Amenities/Parking

Outdoor Dining

Community Event Space

Center Stage

RetailPad Site20,000 SF

Housing - 151 units

Retail - 10,000 SF

Lakewinds

Natural Foods

SITE PLAN

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New trails will directly connect Lyndale Gardens to the beautiful amenity of Richfield Lake and provide easy access to the nearby Woodlake Nature Center, a regional educational and community resource.

Amenities in the public plaza include: green space, benches, a splash pad, community pizza oven, stage for live performances and an open community garden and urban farm.

The city summer concert series will take place on the stage. We will facilitate other events and programs to animate the outdoor spaces supported by arts and artists, local farmers, community education programming, and community-initiated events/programs.

Stage for Live PerformancesSplash Pad

Community Oven

Walking/Bicycling Trails

Edible Gardens

SITE AMENITIES

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Details• 151 units• 77% market rate / 23% affordable• Construction start: 2014• Construction time: 14 months

Unique Features

• South-facing views of Richfield Lake

• Oversized windows and patios/balconies

• Spacious Floorplans• Pet-friendly• High quality interior and exterior

materials• 1st Floor Live/Work style units• Walkout townhome units • Underground parking• Washer/dryer in unit

HOUSING

Community Features• Generous Common Areas• Fitness center• Large Community and Event

Space• Rooftop Party Room and Terrace• Workshop• Guest suite• Bike Storage and Maintenance

Area• Business Center and WI-Fi

Lounge• Rooftop Solar Array• Car Share• Additional Storage Areas• Access to Transit, Trails, Farmers

Market & Community Events onsite

• Outdoor Terraces and Fire Pit

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Details• Strong Anchor: Lakewinds Natural Foods Co-

op Grocer (to open Spring 2014)• Anchor tenant has produced significant early

interest by retailers• 10,000 SF retail adjacent to outdoor

amenities• 1,500 SF retail in residential building• Focus on attracting successful local

businesses• Construction start: 2014• Construction time: 12 months

Unique Features• Restaurant space with outdoor lakeside

dining, outdoor oven/fire feature, organic gardens, on-site event catering opportunities

• Flexible spaces for small retailers ranging from 1,500-6,000 SF

• High visibility and signage on Lyndale Avenue• Pedestrian/transit-oriented storefronts with

convenient and ample parking

Parking Ratio: - 7.80 stalls/1,000 SF

Traffic Counts: - 13,000 cars/day on Lyndale - 26,500 cars/day on 66th St.

RETAIL

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PROJECT FINANCIALS4Lyndale Gardens is a strong, long-term investment in the transformation of an established community.

Investment Summary:• The average annual return on equity

is projected to be over 9% after the project is built and achieves stabilization.

• The Internal Rate of Return is projected to be approximately 14% for a 10-year hold.

• Grants to support healthy living elements are secured for $1.7 Million.

• The $42 million project is expected to yield a return on costs of 6%.

• The equity investment will total $7.7 million - with $6 million supported by market rate housing and $1.7 million supported by the Low Income Housing Tax Credit.

Assumptions• The project assumes a residential

vacancy rate of 7% despite a Market Area vacancy of less than 2%.

• The project assumes a commercial vacancy rate of 15%, while the area immediately surrounding the project is experiencing strong absorption in new retail.

LYNDALE GARDENS - EXECUTIVE SUMMARYPage 1 of 5

11/1/13

PROGRAM SUMMARY- NEW CONSTRUCTION INVESTMENT SUMMARYLand Area (Acres) 4.80 Projected Cap Rate 5.20%Number of Parking Stalls 290 Value of Project $43,742,262Number of Market Rate Units 117 TOTAL RETURN ON COST 8.70%Number of Affordable Units (50% of AMI) 34 Number of Housing Units 151 Limited Partner Equity 7,711,111$ Total Housing (Gross SF) 192,451 Predevelopment Equity Required $1,000,000Total Retail (Gross SF) 11,920 4% LIHTC Equity $1,676,589

Remainder of LP Equity $5,034,522PROJECT COST SUMMARY TOTAL PRICE PSF PRICE/UNIT First Year Return on Investment $726,100 9.42%Acquisition Costs- Total $3,066,838 $14.66 Average Return on Investment 9.86%Soft Costs- Total $9,392,341 Internal Rate of Return Sale in Year 11 14.68%Hard Costs- Site $2,980,000Hard Costs- Residential $25,062,032 $165,974 General Partner Equity $540,000Hard Costs- Commercial $2,444,460 $205.07 General Partner Equity (Cash) $540,000Total Project Costs $41,930,995 $200.42 Subordinated Asset Management Fee to GP $40,509 2.00%

Internal Rate of Return Sale in Year 11 30.00%Total Grants Received $1,690,851Total Project Costs Less Grants Received $40,240,144 Total Development Fee 7.15% 3,000,000$

Deferred Developer Fee (Paid over 10 Yrs) $1,800,000ASSUMPTIONS SUMMARY RESIDENTIAL COMMERCIALVacancy Rate (Stabilized) 7.0% 15.0%Parking Ratio (Stalls per/1000 SF) 1.30 7.80 Average Rent PSF (Net) - Market Rate $1.77 $18.08Average Rent PSF (Net)- Affordable $0.71 N/A

INCOME SUMMARY RESIDENTIAL COMMERCIAL TOTALGross Potential Income $2,620,032 $207,101 $2,827,133Parking Income $137,280 $0 $137,280Other Income $190,710 $0 $190,710

Less Operating Expenses ($1,117,967) ($103,879) ($1,221,845)Less Vacancy ($207,937) ($46,132) ($254,068)

Commerical Common Area Reimbursement NA $100,443 $100,443Plus Annual TIF $302,234Net Operating Income $1,622,119 $157,534 $2,081,886

TOTAL PROJECT NET OPERATING INCOME $2,081,886Plus Annual LIHTC $192,711Total Adjusted Income $2,274,598

LYNDALE GARDENS - EXECUTIVE SUMMARYPage 1 of 5

11/1/13

PROGRAM SUMMARY- NEW CONSTRUCTION INVESTMENT SUMMARYLand Area (Acres) 4.80 Projected Cap Rate 5.20%Number of Parking Stalls 290 Value of Project $43,742,262Number of Market Rate Units 117 TOTAL RETURN ON COST 8.70%Number of Affordable Units (50% of AMI) 34 Number of Housing Units 151 Limited Partner Equity 7,711,111$ Total Housing (Gross SF) 192,451 Predevelopment Equity Required $1,000,000Total Retail (Gross SF) 11,920 4% LIHTC Equity $1,676,589

Remainder of LP Equity $5,034,522PROJECT COST SUMMARY TOTAL PRICE PSF PRICE/UNIT First Year Return on Investment $726,100 9.42%Acquisition Costs- Total $3,066,838 $14.66 Average Return on Investment 9.86%Soft Costs- Total $9,392,341 Internal Rate of Return Sale in Year 11 14.68%Hard Costs- Site $2,980,000Hard Costs- Residential $25,062,032 $165,974 General Partner Equity $540,000Hard Costs- Commercial $2,444,460 $205.07 General Partner Equity (Cash) $540,000Total Project Costs $41,930,995 $200.42 Subordinated Asset Management Fee to GP $40,509 2.00%

Internal Rate of Return Sale in Year 11 30.00%Total Grants Received $1,690,851Total Project Costs Less Grants Received $40,240,144 Total Development Fee 7.15% 3,000,000$

Deferred Developer Fee (Paid over 10 Yrs) $1,800,000ASSUMPTIONS SUMMARY RESIDENTIAL COMMERCIALVacancy Rate (Stabilized) 7.0% 15.0%Parking Ratio (Stalls per/1000 SF) 1.30 7.80 Average Rent PSF (Net) - Market Rate $1.77 $18.08Average Rent PSF (Net)- Affordable $0.71 N/A

INCOME SUMMARY RESIDENTIAL COMMERCIAL TOTALGross Potential Income $2,620,032 $207,101 $2,827,133Parking Income $137,280 $0 $137,280Other Income $190,710 $0 $190,710

Less Operating Expenses ($1,117,967) ($103,879) ($1,221,845)Less Vacancy ($207,937) ($46,132) ($254,068)

Commerical Common Area Reimbursement NA $100,443 $100,443Plus Annual TIF $302,234Net Operating Income $1,622,119 $157,534 $2,081,886

TOTAL PROJECT NET OPERATING INCOME $2,081,886Plus Annual LIHTC $192,711Total Adjusted Income $2,274,598

INVESTMENT SUMMARYProjected Cap Rate 5.20%Value of Project $43,744,563Total Return on Value 8.7%Return on Cost Initial 5.7%Return on Cost- Year 2017 Stabilization 6.0%

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MARKET DEMOGRAPHICS5

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POSITIVE DEMOGRAPHICS AND LACK OF OPTIONS POINT TO STRONG DEMAND FOR LYNDALE GARDENS

Analysis from three different market studies provide data to support the Lyndale Gardens Project including the following findings:

- Richfield is projected to grow by 10% in each of the next 2 decades, adding approximately 3,000 new households.

- Employment growth in and around Richfield is expected to remain strong for the next 20 years supporting additional housing demand.

- The Richfield submarket lacks an adequate supply of new rental housing and posts very low vacancy rates at 1.5% overall, compared to the Metro Area average at 3.3% in June 2013.

- The newer rental properties are also performing well with an overall posted a vacancy rate of 1.9%.

- Richfield is sorely lacking in larger rental units, especially 2 or 3-bedroom units.

- Richfield is lacking rental buildings with common amenities as the large majority of the rental housing stock was built in the 1960s.

- “We believe there is strong market support for the proposed 151-unit mixed-income rental development.” Maxfield Research

- The market analysis projects that Lyndale Gardens will reach stabilized occupancy (95%) in three months after opening, although our internal underwriting provides for a much slower absorption.

SOURCES:Maxfield Research Market Analysis for Lyndale Gardens Apartments in Richfield, Minnesota - June 2013

Stantec Rental Housing Needs Assessment, City of Richfield – April 2012

“We believe an opportunity exists to set a new standard for per-square-foot rents at the subject property, with an emphasis on proximity to nearby open space, parks and trails, neighborhood walkability and proximity to retail, grocery stores and restaurants, and overall access (via automobile, bicycle and transit) to nearby employment centers and the Minneapolis/St. Paul International Airport.”

- Sam Newberg, Joe Urban Research

A NEW COMMUNITY CULTURE- ONE WHERE RESIDENTS HAVE A

STRONG SENSE OF OVERALL WELLBEING, THEY FEEL PRIDE IN

WHERE THEY LIVE AND TAKE OWNERSHIP OVER CREATING THE CULTURE THEY WANT TO LIVE IN.

SUSTAINABILITYLyndale Gardens will incorporate best practices in sustainable / green infrastructure and sustainable living elements that support health, reduce environmental impacts and create a more resilient investment.

SOCIAL CONNECTIONSocially connected and engaged communities are healthier, happier and more resilient to economic change. Our programs and the physical buildings are designed to foster social connection. We engage the community from pre-development through construction which supports buy-in and ownership.  

NATURE AND OPEN SPACESGreen space, gardening and year-round access to the wonders of nature are all possible on compact urban development sites. We will deliver a full sensory experience of nature at its Minnesota best and create new connections between Lyndale Gardens and the adjacent parks and Woodlake Nature Center.

LOCAL FOOD AND URBAN AGRICULTUREEating is a communal activity. Eating healthy local food is a community imperative. We will create a unique edible landscape as well as a satellite home for the local farmers market and unique spaces for restaurants and food trucks to nourish the community.  

LIFELONG LEARNINGAt every stage in life, there are new things to learn.  Our unique partnerships with Richfield Community Education and local arts organizations allows us to integrate arts and education programming spaces throughout the project.

ACTIVE LIVINGGreat design along with community action can help solve our public health problems and create a strong, healthy and vibrant community.  Lyndale Gardens will be designed for active living and will connect with existing walking trails, bike paths and transit corridors to foster a healthy and active lifestyle.

ART AND ARTISTSStrong communities nurture and support creativity. In turn, artists and their art nurture and support communities. We will incorporate public art and provide new spaces for artists to live, work, perform and display their craft.  

A PLACE FOR EVERYONEGreat communities have room for everyone. Our project will provide a range of housing options which will foster an intergenerational community. Our open spaces and programs will be integrated and inclusive to the larger community.

6A HEALTHY, CONNECTED AND THRIVING COMMUNITY

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“Health is a state of complete physical, mental and social wellbeing and not merely the absence of disease or infirmity.”

-World Health Organization, 1948

A HEALTHY COMMUNITY IS A MORE RESILIENT FINANCIAL INVESTMENT

• Lyndale Gardens responds to clear shifts in market preferences. All indicators point to an increased demand for compact, walkable, mixed-use neighborhoods with rental properties at affordable prices [1, 2].

• We build amenities and programs that support residents having a high attachment to their communities -- social offerings, openness, and aesthetics. These communities are more economically vibrant [3] with higher occupancy rates over the long-term.

• With retail amenities and park trails close by, the walk score of the neighborhood will increase by 10-20 points. Increased walk scores are associated with higher rent and leasing values and lower cap rates [4].

• Our unique amenities and programs will draw a consistent stream of customers for retailers - facilitating higher occupancy and leasing rates.

• Our partnerships with the City of Richfield, the Met Council, Hennepin County, and community organizations illustrate the collective investment in the project’s success.

• Our mix of housing choices have earned grants that support construction cost of many of the common amenities -- reducing costs and enhancing return.

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THE IMPACT OF A HEALTHY, CONNECTED, THRIVING COMMUNITY

LYNDALE GARDENS WILL HAVE A HIGH SOCIAL IMPACT

• The residents of “walkable” communities are more physically active and less overweight, breathe cleaner air and lead healthier lifestyles. [5, 6].

• People who live in walkable, mixed-use neighborhoods have higher levels of social capital, are more likely to know their neighbors, trust others and be socially engaged [7].

• Shifting an individual wellbeing score from the lowest end to the middle, leads to over $4,000 per year in gained productivity time alone.

• We are deeply impacted by those around us [8]. Lyndale Gardens can be a place that supports health for the broader community.

• People who are socially engaged with others and actively involved in their communities tend to live longer and to be healthier physically and mentally [7, 9].

A healthy, connected community at Lyndale Gardens will support a number of important outcomes including:

A thriving economy and vibrant culture.

People who feel attached to their place, safe in their environment and who share their excitement for where they live.

A healthy and socially connected people choose to be accountable for their own health and also care about others.

An intergenerational culture that is welcoming for all people and embraces diversity.

Ongoing programming will support a vibrant and active community. We have created a strong public-private partnership to support integration of the development within the broader community and encourage ongoing innovations in space use and programming. In addition to generating community support and excitement for the project, our partnership with the City of Richfield, the Metropolitan Council, Hennepin County, LISC, the Greater Minnesota Housing Corporation and Springboard for the Arts means a number of players are jointly collaborating for on-going success.

We have established commitments with partners to host a number of programs and events at Lyndale Gardens, for example:

• Artist in residence to support teaching and art production

• Summer concert series will be held at the community stage

• Community education classes on cooking, nutrition, health and wellness, and arts and crafts

• Arts programming such as theater, film, art exhibitions and classes

• Farmer’s market and community gardens supported by local farmers

• Healthy practices around active living and nutrition such as walking clubs, gardening, cooking, tobacco cessation, etc.

• Pizza farm nights and bread baking classes at our community oven

• Community issue forums on current events

“We want to create a place that is beautifully designed and flexible enough to welcome new ideas in the ways that people will want to use it. We want to create a place people will be proud of.”

-Colleen Carey, President, The Cornerstone Group

ARTS & CULTURE PARTNERSHIPS7

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OPPORTUNITY FOR PARTNERSHIP

A number of aspects of the re-development of Lyndale Gardens make this a unique opportunity to study the impact of the built environment, culture, and innovative programs on health outcomes in a community setting, for example:

• Our strong partnerships with diverse stakeholders including: the City of Richfield, residents, arts organizations, community education center, local farmers, and retailers including restauranteurs.

• The innovative private-public partnership with a developer who is fully vested in creating a new regional model for 21st century healthy living -- and sees this community as a great place to innovate and learn fast.

• Our success in receiving grant support from diverse organizations such as the Metropolitan Council, Hennepin County and Springboard for the Arts, illustrate the strong interest in this unique development project.

We are seeking a partner to support a healthy places innovation center onsite at Lyndale Gardens. We see Lyndale Gardens as a living laboratory for exploring ways of engaging the community to take new actions around their health. There are several ways to partner with us:

• Create a living laboratory onsite at Lyndale Gardens - a place to test, measure, learn and innovate in a community-based setting.

• Research and evaluate the impact of our built environment and programs on health and wellbeing outcomes in the community -- and create/test new programs in our community.

• Lease space for research, wellness services and/or health care. Lyndale Gardens is a great place for a community-based health services/clinic site.

HEALTHY PLACES INNOVATION CENTER8

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The Cornerstone Group is an award-winning real estate development team founded in 1993 by Colleen Carey in response to the Twin Cities community’s need for a variety of high-quality housing options.

Since its inception, The Cornerstone Group has specialized in urban redevelopment projects, as well as historic renovations of significant properties, creating over $250 million in housing and mixed-use development initiatives.

We are a full-service real estate company of thinkers, creators and do-ers who share a passion for protecting our planet and engaging our communities. For the past 20 years, we have been doing what we love, and the communities we work with love what we do.

INTEGRATED DEVELOPMENT & MANAGEMENT

We manage our projects in-house, providing our partners a high level of confidence in the long-term stability of the project. Our integrated development and management team manage properties through high quality client service facilitating unique partnerships with residents and community organizations to support onsite amenities, resident services, and programs.

OUR UNIQUE APPROACH TO DEVELOPMENT

Beyond the walls of the physical structures, we impact the environment, people and the communities that we serve in positive, meaningful ways. We work collaboratively with communities to identify and implement new solutions for community problems.

In every development we aim to:

• Use innovative approaches to old problems as a way to develop new models for community transformation.

• Engage inter-disciplinary thought leaders from the community to inform our work.

• Transform communities in ways that are good for people and the planet.

• Foster a healthy, connected and thriving community culture.

• Build strong public-private partnerships and collaborations to ensure long-term success.

“I want to work with communities to help them create the places they want to live. In the process, I believe that we will create a new model for healthy living and sustainable development...a model that is good for people, good for the planet, and a good investment in our future.” -Colleen Carey, President, The Cornerstone Group

Our Mission: To transform the ordinary spaces

that surround us, to the extraordinary places that inspire us.

ABOUT THE CORNERSTONE GROUP9

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COLLEEN CAREYColleen founded The Cornerstone Group in 1993, after 10 years at Twin Cities Housing Corporation and Turner Development Corporation. Her founding vision still holds true today – to transform communities through socially responsible development projects.As President, Colleen is responsible for overseeing all corporate and financial operations including acquisitions, new development, redevelopment, asset management, property management, strategic planning and community relationship building. She’s overseen the development or rehabilitation of 15 properties totaling over a $250 million dollars. These projects represent a mix of housing types, ranging from 30 units to 200 units, affordable housing to market rate and luxury condos. She has also worked on rental and for-sale developments and has completed a number of restorations of historically significant buildings.

Colleen has an MBA with a focus in Real Estate Development and Finance, is a Licensed Minnesota Real Estate Broker, and LEED Accredited Professional. She is currently a National Trustee of the Urban Land Institute and Governance Chair of ULI MN. She also serves on the Met Council's Livable Communities Advisory Committee and the Corridors of Opportunity Policy Board and is a Board Member at Tubman.

BETH PFEIFERBeth Pfeifer coordinates, manages and supervises our development process from the conceptual design and development stage through construction completion. She works, hand-in-hand, with architects and contractors and meets with community policy leaders to ensure that our projects meet the goals and needs of the communities they serve.Prior to joining The Cornerstone Group, Beth was a Project Manager with DJR Architecture, Inc. specializing in multi-family housing design. She’s also worked for both architecture and development firms as a designer and project team leader with 10 years of experience in the real estate, design and construction industries.Beth has a Bachelor of Architecture, Real Estate License and is a LEED Accredited Professional. She serves on the Board of Transit for Livable Communities and is an active

member of ULI MN and WIRED-UP.

ELAINE SWENSENElaine Swenson joined our team in 2008 as Asset Manager, overseeing our portfolio of residential properties and acting as property manager for our retail portfolio. Elaine is responsible for supervising capital expenditures and seeking out creative ways to manage, market and position our properties as unique in their individual markets. She has almost 30 years of experience in the field of real estate property management. She has previously served as the Principal and President for Real Estate Equities and Vice President for Real Estate Equities/ Village Green, the Director of Property Management for the Stuart Management Company, Portfolio Manager with Hegg Property Management and Vice President at The Ackerberg Group. Elaine has a BS in Management, is a Certified Property Manger, On-Site

Manager, Resident Manager and Occupancy Specialist. She is the Recipient of the Arne Carlson Certificate of Commendation from the Minnesota Council for Quality and a Board Member of the Minnesota Multi-Housing Association.

OUR TEAM10

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In partnership with Springboard for the Arts, we have placed Molly Van Avery as an Artist Organizer for the Lyndale Gardens project. Molly is a poet, performance artist, educator and arts advocate. Most recently, Molly co-curated the Bedlam Theatre Fest at Mixed Blood Theater and is an artist with the arts-based community development project Arts on Chicago. She is a recipient of the Minnesota State Arts Board Artist Initiative Grant, the Blacklock Nature Sanctuary Grant, the Jerome Travel and Study Grant, and the Naked Stages Grant for emerging performance artists. She will complete an MFA in Creative Writing from Hamline University in December 2013. Molly will work closely with The Cornerstone Group to highlight the creativity and vitality of Richfield, her childhood stomping ground. She is deeply committed to transforming Lyndale Gardens into a place that showcases the work of Richfield artists while

feeding people’s bodies and imaginations.

Merrie recently joined the Cornerstone Group as our Director of Finance. She brings a wealth of skills and experience in project feasibility, financial analysis, and project management with over 10 years of experience. Merrie will guide our internal underwriting and financing of our projects and portfolio holdings. She will also support the management of key relationships with strategic and financial partners.Merrie has over 10 years of private sector development experience ranging from small local acquisitions to large-scale national developments. She holds a BA from Bethel University in Environmental and Urban Studies and is a graduate of the Humphrey Institute at the University of Minnesota, where she received a Master’s degree in Urban and Regional

Planning. Merrie holds a Real Estate License and is actively involved in ULI Minnesota and is the Co-Founder of WIRED- UP.

MERRIE SJOGREN

MOLLY VAN AVERY

CARYN BROOKSAs Senior Project Coordinator for The Cornerstone Group, Caryn assists the team with securing project financing through grants and loans, managing project planning, sustainability, design and construction, and coordination of marketing and communications.  Caryn works with the development team, municipalities, and vendors to complete detailed tasks during each stage of the project process, ensuring that projects are completed in a timely, high-quality manner while meeting each community’s unique goals and needs.Prior to joining The Cornerstone Group in 2011, Caryn worked for over 8 years in multifamily and mixed-use property and portfolio management.  Through her experience at Oakwood Worldwide, Archstone-Smith, and TE Miller Development, Caryn has thorough knowledge of

property operations, financial modeling, capital improvement projects, marketing and staff management.  She led TE Miller Development’s property management team, overseeing the performance of 1,200 units and 35 team members.  Caryn stepped into a development role while working on TE Miller’s first major project – the development and successful lease-up of York Place Apartments in Edina, which opened in 2009. Caryn has a MS in Real Estate, BA in Psychology and is a LEED Accredited Professional. She is a Board Member of UST Opus College of Business and active member of ULI MN, WIRED UP and Living Building Challenge. 

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OUR TEAM CONTINUED

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REFERENCES1. National Association of Realtors. The 2011 Community Preference Survey: What Americans are looking for when deciding where to

live. Retrieved 10/2013 from: http://www.realtor.org/sites/default/files/smart-growth-comm-survey-results-2011.pdf2011.

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3. Knight Soul of the Community 2010: Why People Love Where They Live and Why It Matters: A National Perspective. Knight Foundation. Retrieved 10/2013 from: http://www.soulofthecommunity.org/sites/default/files/OVERALL.pdf.

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5. Frank L, Sallis J, conway T, Chapman J, Saelens B, and Bachman W. Many pathways from land use to health: Associations between neighborhood walkability and active transportation, body mass index, and air quality. Journal of the American Planning Association 72: 75-87, 2006.

6. Frank L, Engelke P. and Schmid T. Health and Community Design: The Impact of the Built Environment on Physical Activity. Island Press, Washington DC, 2003.

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10. Sternberg E. Healing Spaces: The Science of Place and Wellbeing. Harvard University Press, Cambridge, MA. 2009.