Agenda 07/09/2019 Item #16G 1 (Assumption Agreement w/Tellus Florida, LLC)07/09/2019
EXECUTIVE SUMMARY
Recommendation to approve the attached Assumption Agreement between Tellus Florida, LLC,
Galexa, Inc., and the Collier County Board of Commissioners in its Capacity as the Collier County
Airport Authority for leased space at the Immokalee Regional Airport.
OBJECTIVE: To transfer the Collier County Airport Authority Standard Form Lease with Tellus
Florida, LLC to Galexa, Inc.
CONSIDERATIONS: On July 7, 2015, Agenda Item 16G2, the Collier County Board of County
Commissioners (Board), in its capacity as the Collier County Airport Authority (Authority) approved a
Collier County Airport Authority Standard Form Lease with Tellus Florida, LLC (Tellus) for a one -acre
parcel of land at the Immokalee Regional Airport for the construction, manufacturing, and storage of
prefabricated concrete residential and commercial building materials.
On June 28, 2016, Agenda Item 16G2, the Board approved the First Amendment to the Lease Agreement
to expand the use of the leased space to allow the placement of trailers to be used for office space and
containers for storage.
On May 30, 2019 the Airport Authority received notice from Galexa, Inc. (Galexa) expressing their desire
to transfer the Lease from Tellus to Galexa, as Tellus has been recently acquired by Galexa. Paragraph 15
of the Lease Agreement with Tellus allows assignment with express written permission of the Authority.
Tellus has indicated that it has no issues or concerns with this transfer.
Staff has reviewed the Business Plan of Galexa and recommends approval of this transfer.
FISCAL IMPACT: Rent and all associated lease revenue will continue to be deposited in Airport
Operating Fund (495), Immokalee Regional Airport Cost Center (192330).
GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with the
Executive Summary.
LEGAL CONSIDERATIONS: This item is approved for form and legality and requires a majority vote
for Board action. - JAB
RECOMMENDATION: To approve and authorize the Chairman to sign the attached Assumption
Agreement with Galexa, Inc. to transfer the Collier County Standard Form Lease agreement with Tellus
Florida, LLC to Galexa, Inc.
Prepared by: Justin Lobb, Airports Manager, Airport Authority
ATTACHMENT(S)
1. Assumption Agreement Tellus-Galexa_CAO Stamp (PDF)
2. [Linked] Galexa - Documentation & Business Plan 5.30.19 (PDF)
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07/09/2019
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.G.1
Doc ID: 9213
Item Summary: Recommendation to approve the attached Assumption Agreement between Tellus
Florida, LLC, Galexa, Inc., and the Collier County Board of Commissioners in its Capacity as the Collier
County Airport Authority for leased space at the Immokalee Regional Airport.
Meeting Date: 07/09/2019
Prepared by:
Title: Operations Coordinator – Airport Authority
Name: Debra Brueggeman
06/04/2019 9:32 AM
Submitted by:
Title: Division Director - Operations Support – Growth Management Department
Name: Gene Shue
06/04/2019 9:32 AM
Approved By:
Review:
Airport Authority Justin Lobb Additional Reviewer Completed 06/04/2019 10:02 AM
Growth Management Department Gene Shue Additional Reviewer Completed 06/04/2019 10:32 AM
Growth Management Department Christine Arnold Level 1 Reviewer Completed 06/04/2019 10:32 AM
Growth Management Operations Support Christopher Johnson Additional Reviewer Completed 06/04/2019 5:03 PM
Growth Management Department James C French Deputy Department Head Review Completed 06/06/2019 11:58 AM
Growth Management Department Thaddeus Cohen Department Head Review Completed 06/06/2019 1:11 PM
County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 06/10/2019 10:02 AM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 06/10/2019 2:17 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/10/2019 3:43 PM
Budget and Management Office Ed Finn Additional Reviewer Completed 06/14/2019 8:10 PM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 06/25/2019 1:48 PM
Board of County Commissioners MaryJo Brock Meeting Pending 07/09/2019 9:00 AM
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TELLUSFLORIDA
14538 Indigo Lakes Circle
Naples, Florida 34119
Justin Lobb | Airports Manager
Collier County Airport Authority
2005 Mainsail Drive | Naples, FL 34114
tel (239) 642-7878 | fax (239) 394-3515
Re: Transfer of Immokalee property lease from Tellus Florida, LLC to Galexa, Inc
Justin,
This letter is to confirm my approval for the Collier County Airport Authority to transfer Tellus Florida’s
Immokalee property lease to Galexa, Inc.
Please feel free to contact me with any questions or if you need additional information.
Best regards,
Paul Inglese, Manager
Tellus Florida, LLC
Business Plan
David Tingley
Chief Financial Officer
453 Bayfront Place
Naples, FL 34102
Telephone: (239) 216-1250
E-Mail: dtingley@galexausa.com
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I. Table of Contents
I. Table of Contents .................................................................................................................................... 2
II. Executive Summary ................................................................................................................................ 3
III. General Company Description ............................................................................................................. 5
IV. Products and Services ........................................................................................................................... 10
V. Marketing Plan/Industry Information ............................................................................................... 12
VI. Management and Organization ........................................................................................................... 27
VII. Startup Expenses and Capitalization .................................................................................................. 32
VIII. Appendix
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II. Executive Summary
Galexa Inc. manufactures advanced, pre-engineered building systems called SuperComposite, and provides
turn key development, construction and marketing services to deliver our products to residential and
commercial real estate consumers and project developers. We began in Naples, Florida in 2018 with focus on
Collier and Lee County and will progressively grow throughout the United States and ultimately will penetrate
the Caribbean, South & Central America and other foreign markets within a five-year period. Our primary
marketing focus will be to target a demographic base, ranging from millennials to senior citizens who seek
eco-friendly, efficient and affordable living solutions. Additionally, we will provide dwellings to charity groups
such as U.S. Military Veterans and those involved in disaster relief. Finally, Galexa will service the commercial
construction industry through providing its SuperComposite system as a building component product to be
used in a variety of different project applications. The Company's strategy will be based on utilizing our
efficient technology driven building systems to overcome the current shortage of tradesman available at
construction job sites. We will accomplish this in combination with a continual improvement of setting
manufacturing and construction objectives, measuring our results and then providing feedback to facilitate
further growth and enhancement in the organization.
We work only with experienced and highly reputable General Contractors and manufacturing professionals to
create our line of Direct & Retail homes as well as our commercial wall unit products. Our current Direct
homes include two models which are assembled in a manufacturing facility, ordered online and then shipped
directly to the customer for placement on a parcel of land. Our Retail line of homes include four models
which are built on or delivered to the customers location and involve full installation, hookups, permitting
and other services to provide a turn key solution. Our commercial wall units are built to architectural and
engineering specifications of our commercial clients and their development team. All our products include a
cooperative effort between the client, our internal real estate team, Developers, General Contractor and
Galexa’s manufacturing representative and management team. Together we include the full a full line of
services that our clients expect from beginning to end.
The direct problem Galexa will address is the demand for workforce housing. The U.S. has a shortage of 7.4
million affordable rental homes available to low income renter households, resulting in 35 affordable and
available units for every 100 low income renter households. This leaves an absolute shortage of 3.9 million
affordable rental homes for low income renter households and gives higher income households a broader
range of affordable housing options. 71% of low-income renter households are severely cost-burdened,
spending more than half of their income on housing expense.
The Company's management is highly experienced and qualified: Chuck Ardezzone, David Tingley and Paul
Inglese will lead the management team and together have accumulated over 75 years’ experience in sales,
marketing, media, finance, real-estate and the construction industry.
Under the direction of our Chief Design Officer Paul Inglese, our team will work with Gates Construction to
develop bidding, scheduling and materials solutions for some of the most innovative affordable home
construction projects being built today. The Company will use versatile and completely adaptable methods
for a variety of building configurations.
Galexa will utilize a factory setting which we will initially be on a sub-let basis, to realize substantial savings in
labor and material costs. Through this approach and via the utilization of our licensed pre-engineered wall
systems, we will incorporate technologically advanced methods to create significant cost savings and speed in
construction. Having these advantages has already allowed Galexa to begin developing marketing alliances
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with affordable home groups and programs in the pursuit of sales which focus on securing city, county, state,
and federal government contracts.
Galexa’s aggressive internet and social media campaign as well as local networking coupled with high demand
will allow our target markets to be reached rapidly. The company plans to utilize its in house media expert
Chuck Ardezzone to film a reality TV show, emphasizing Galexa’s efforts to meet the demand for affordable
housing shortage. The high-quality show will generate additional revenues through sales to local and national
media networks while also providing Galexa with low cost TV commercial content, professional online video
advertisement and other highly effective social media tools.
We will complete construction of a one thousand square foot (1,000 sq. ft.) model home which will also be
used as a sales center and will be located at the corner of Goodlette Frank Road and Tamiami Trail, in front
of the Bayfront Development. This location is near downtown Naples and provides extremely high visibility
and traffic count, allowing Galexa to gain immediate market presence within the community. We ultimately
plan to build a smaller three hundred twenty (320 sq. ft.) portable demonstration model, which will be
transported via truck to trade shows and other events. Through the combination of our marketing efforts we
will help our sales staff capture interest and close a significant number of transactions.
Financially, we expect to pass the “break-even point” within the first several months of our construction and
manufacturing ramp up. The Company will incur an initial requirement for cash investment to promote sales,
engage construction projects, provide payroll for its staff and complete a variety of other initiatives. As a
result, Galexa will pursue equity capital of up to one million dollars ($1,000.000) from investors to meet these
requirements and provide fast access to establishing a solid and consistent level of sales and distribution.
Eventually, the company will use its initial investment capital as well as its profits to bring certain aspects of
the company’s production “in-house”. This will provide greater savings and eventually create larger valuation
consideration to the company and its stockholders.
The Company's cash account is expected to remain healthy and our projections indicate we will achieve
approximately thirty-eight million dollars ($38,000,000) in gross sales revenue in year one and an approximate
net revenue of six million one hundred six thousand dollars ($6,106,000) by end of year three.
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III. General Company Description
Galexa specializes in procucing innovative SuperComposite pre-engineered building systems, including
commercial wall shell units and turn key residential workforce homes which are affordable, hurricane safe,
sustainable, innovative and currently in high demand. Our products are thoughtfully constructed and
assembled by our team of architects, designers, engineers, contractors, and steel fabricators and our project
developers work in combination with us to form a uniquely powerful team of creative experts.
We provide low cost solutions which help individuals and families with an alternative to renting pricey
apartments or buying an expensive home. Additionaly, Galexa solves a key problem within the commercial
construction industry due to labor shortages and rising material costs. This has contributed to the widespread
adoption of both pre-engineered and other sustainable construction designs and methods which meet the
larger objective of keeping costs low and the quality high while meeting the client’s specific needs.
Through purchases of Galexa’s pre-engineered wall units, contracors and developers are able to lower their
costs significantly by reducing the number of tradesman required at the job site, minimizing the number of
permits they have to pull and in some cases, providing the ability to begin building wall shells off site during
the time when site preperation work is being completed on the job site.
Mission Statement:
Galexa’s mission is to become America’s most innovative, forward thinking, and affordable home builder and
supplier of commercial pre-engineered wall shell units. We will always be ambitious, honest, ethical, and deal
fairly with our clients and partners. We will practice conservative financial principles and execute them daily,
while inspiring eco-friendly, attractive and economically feasible living solutions.
Company Goals and Objectives:
At Galexa, our goal begins with creating a healthy, successful company which is a leader in both sales, quality
construction, and development of affordable homes and commercial wall shell units. Additionally, we strive
to achieve an impeccable level of customer service designed to help earn a loyal customer following, all with a
focus on providing respectable returns to our investment partners.
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Our primary objectives:
1. Secure investment capital to expand company operations.
2. Intense increase in brand awareness for target market during Q1 through Q4 of 2019
3. Enhance our website, Facebook, Instagram, Twitter, and Pinterest page to gain social media presence.
4. Create overall customer engagement on social media platforms.
5. Execute tactical plans to obtain and secure potential customers.
6. Create commercials for TV and internet advertisements.
7. Develop the local, state, national and international markets by expanding our licensing network.
8. Achieve thirty-eight million ($38,000,000) gross sales by end of first physical year and six million
($6,000,000) million plus in Net profit by 2022.
9. Expand markets into the greater United States and then into Central & South America and the
Caribbean.
10. Create an exit strategy to sell the Company, license our process regionally and sell the brand or take it
public within a three to five-year period.
Our executives and management team will hold meetings weekly with specific measurements relative to total
gross sales, net profit, and ongoing customer satisfaction levels to monitor progress. These weekly results will
also be reviewed quarterly by the company’s board of directors and advisors to ensure we are on target and
annually with investors to be certain we are on course to achieve the goals and objectives listed.
Business Philosophy:
Galexa’s philosophy is to always provide exceptional value and quality to our customers through our
passionate drive and determination coupled with a positive family spirited approach. We consistently seek
growth opportunities in which we can learn and build our organization through honest relationships and
open communications with both internal and external customers.
Target Market:
Galexa’s primary market penetration will begin with a pursuit to address the latest “shortage” of affordable
homes in several areas of Florida including Lee and Collier County. This will appeal to those who seek
workforce housing, investment property, retirees and military veterans on a fixed budget as well as individuals
interested in the sustainable eco-friendly aspect of our homes. The Company will open an inexpensive housing
market since incredibly high housing prices are sending them across the country looking for alternatives.
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The second market segment Galexa is aggressively pursuing is the commercial builder and developer market
for sale of our pre-engineered wall shell systems built with SuperComposite technology.
Using our efficiently designed products, construction costs of building homes and wall shells can be reduced
by an estimated 15% over other methods and completion of these projects can be accomplished in about half
the time of normal construction. The implications for mass producing units in this cost-effective manner are
attracting developers and architects in the single and multi-family sector in droves.
The Industry:
According to HBI Home Buying Institute, tight shortages on labor and strong demand for product have
boosted home prices in housing markets across the country, while presenting challenges for buyers. Mortgage
rates also rose steadily during the third quarter of 2018, and then leveled off during the early part of the
fourth quarter. Nevertheless, a recent uptick in building permits nationwide has been identified, which is
anticipated to lead to a much-needed increase in new-home construction in 2019.
In a June 2018 report, the National Association of Home Builders shows an ongoing upward trend in
housing starts and favorable interest rates for the foreseeable future, helping to ensure growth for Galexa.
Housing and Interest Rate Forecast as of, 11/08/2018
2018 2019 2020
Housing Activity (000)
Total Housing Starts 1,263 1,283 1,296
Single Family 884 917 933
Multifamily 380 366 364
New Single-Family Sales 638 661 672
Existing Single-Family Home Sales 4,799 4,747 4,739
Interest Rates
Federal Funds Rate 1.83% 2.81% 3.20%
90-day T Bill Rate 1.98% 2.85% 3.02%
Treasury Yields:
One Year Maturity 2.34% 3.17% 3.10%
Ten Year Maturity 2.95% 3.40% 3.36%
Freddie Mac Commitment Rates:
Fixed Rate Mortgages 4.60% 5.21% 5.33%
ARMs 3.84% 4.68% 4.77%
Prime Rate 4.71% 5.58% 6.20%
Data are averages of seasonally adjusted quarterly data and may not match
annual published elsewhere.
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Company Strengths and Core Competencies:
Galexa has assembled a group of team members with diverse experiences whom will be vital in the Company’s
long-term success. Coupled with our utilization of high-tech pre-engineered wall systems we have already
separated ourselves in this unique and rapidly expanding segment of the construction industry through
technology and speed. We build a better, faster and stronger product then any of our local competitors.
Our internal personnel consist of a highly successful individuals with extensive backgrounds in finance, real
estate, property management, military, construction, television & film production, as well as significant sales
and marketing success within a variety of business ventures. Together these skills provide for an extremely solid
foundation as Galexa expands and grows. Furthermore, our partnerships with Developers, General
Contractors, Architects, Designers and others, have been put in place with stringent guidelines, requiring each
individual or group to have outstanding experience and a track record of success in their given profession.
Specifically, our construction team is centered around utilization of our first primary General Contractor and
Senior advisor Todd Gates. Todd’s organization provides background including the construction of hundreds
of residential homes and commercial projects. Our Chief Financial Officer, David Tingley has provided
construction financing for thousands of homeowners in his previous role as a banker and he also managed over
sixty residential and commercial rental units, providing him a unique understanding of Galexa’s primary target
markets. From a marketing and media position, Galexa’s CEO, Chuck Ardezzone is a seasoned professional
and owns ITZ Media Group, which produces and distributes reality television programs and documentary
films. His experience will be instrumental to the Company’s advertising campaigns which will include television
and internet commercials along with a reality tv show based on the full process of designing, building, and
selling the affordable homes and technologically advanced commercial shell wall systems.
Galexa was formed in 2018 as an S Corporation to allow for capital investment and for growth incentives
from a tax consequence prospective.
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Example Renderings and Photos of Galexa Residential and Commercial Projects:
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IV. Products and Services
Galexa will utilize our SuperComposite systems as the creative advantatge to construct residential homes which
are eco-friendly, hurricane proof, non-combustable and trendy. Although we can provide endless customizable
options, Galexa will focus its efforts to offer four initial model homes and two commen wall shell system for
use in commercial projects. Both of these can be mass produced with economy of scale efficiencies.
The four initial models have been created by the professional architects, designers, engineers, contractors, and
steel fabricators that are experts in their field. These models have be designed to provide the greatest
functionality and aesthetically pleasing appeal while also targeting the highest profitability and overall demand
based upon our key demographic customer base. Examples of these homes can be seen in the Galexa Power
Point Presentation (see attached).
The initial models will be constructed at our contractor’s location and then sold directly to end users via the
internet or by Galexa’s sales team as a “Direct Model”. Internet customers will simply receive delivery of their
unit and all final positioning, hook ups and other incidentals will be the client’s responsibility. If the house is
ordered from the Galexa sales team as a “Retail Model”, then the home will be shipped to the installation site
where the Galexa team of professionals will complete the final construction, installation and hook up of the
home.
In addition to the initial model homes targeted for affordale living, the company will ultimately build higher
end homes and supply product for commercial units. These two aspects of Galexa’s business will ultimately
grow under a separate divisios as we progress. Taking on these more unique build outs will bring additional
knowledge to our team and revenue to the company’s bottom line will be enhanced.
As a result of the affordable nature and eco-friendly benefits of our primary home models, government
agencies, savvy developers, and real estate investors have begun to include Galexa as a key player to be
considered in their projects. Galexa has already been included in numerous discussions with these groups and
are working diligently to secure the projects. These range from a one hundred eight (108) unit residential
community, to work camp housing for oil drilling groups in North Dakota, and even for low cost rentals slated
for installation in the Bahamas. These projects are close to fruition and Galexa has been the lead and in some
cases the only supplier of homes being considered for these projects. Galexa has hit the ground running with
these prospective orders which range in combined dollar value and total over two hundred fifty million
($250,000,000) at the time this document was created. These prospects are now being converted into sales
through letters of intent. They will go to full sales contracts upon execution of the company’s sales agreement.
Preliminary Marketing collateral has been developed to help represent the attributes of Galexa including original
brochures, Power Point Presentations and photographed examples of various home models (see attached). This
material will be modified and professionally branded to follow suit with Company’s digital marketing and overall
social media campaigns.
Galexa’s corporate costs as well as its pricing for its commercial shells, Direct and Retail housing prices will
vary depending upon the model of home chosen, construction technology used, transportation and other
variables. However, to provide benchmarks for purposes of this business plan and profit projections, the
Company anticipates the following:
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Production Costs
Range in pricing for our construction costs are from one hundred six dollars ($106) per square foot, up to one
hundred fifteen dollars ($115) per square foot for the Direct and Retail models respectfully and thirty five
dollars ($35) per square foot for commercial wall shell sytsems.
Retail and Direct Pricing
The price for Galexa’s Direct product to consumers, which are the homes sold from our website and other
internet sources such as Amazon, Alibaba and Ebay, will cost approximately one hundred and eight dollars
($150) per square foot. Our Retail product will have a sale of approximately one hundred eight dollars ($180)
per square foot, depending upon finishes. And finally our commercial shell wall systems will sell on average for
fourty three dollars ($43.00) per squre foot.
Galexa’s approach to provide both Direct and Retail homes as well as commercial shell wall systems will set us
apart in the marketplace. In addition, proprietary features and construction methods which may be developed
by Galexa over time, have the potential to be patented and/or branded by the Company, ultimately providing
potential for additional profit-making opportunities. Furthermore, the stability of the Galexa reputation and
quality will, over time, have the potential to grow and provide the Company additional value through the its
brand name recognition.
Financing homes will also provide an important aspect to the Company’s ability to grow. For this reason, Galexa
has already established relationships with multiple banks, credit unions and private lenders who will provide
financing for clients and who wish to purchase our homes. Furthermore, the company has hedge fund lenders
who will supply financing during constrution if a client should only have end loan financing approved. Because
each of Galexa’s homes will be “HUD Approved” (Department of Housing and Urban Development), banks
will also have an easier time lending to clients who wish to finance a portion of their home when they purchase.
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V. Marketing Plan/Industry Information
The U.S. housing recovery lost momentum in 2015 as homeownership rates continued to fall, single-family
construction remained near historic lows and existing home sales cooled. In contrast, the rental market
remained a bright spot fueled by robust growth in renter households. With rents rising and incomes well below
pre-recession levels the number of housing cost-burdened renters set another record far surpassing public
efforts to provide affordable housing. And despite the rebound in much of the nation, several minority and
low-income neighborhoods remain severely distressed. The national homeownership levels rate has fallen lower
than 1993 levels.
Despite the growth in the number of owners, the National Homeownership Rate Fell Again
Apartment Property Prices Have Appreciated Much More Rapidly
than Single-Family Home and Commercial Real Estate Prices
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Risks and Challenges
The primary challenge Galexa will face is brand positioning, market awareness and cost savings. Additional
risks Galexa will face are concerns within presenting building inspection departments and the new technology
we are bringing to the industry. This includes additional analysis by inspectors relative to meeting code
requirements for heat/insulation control, health hazards, deterioration, and lifespan. South West Florida
currently lacks the superior product we offer that provides a hurricane-proof, dependable, and sustainable living
area that remains affordable. In recognizing that there hasn’t been an innovative approach to improving
construction performance here in the recent past, the Company must find and adopt a strategy that will give us
a unique voice amongst the industry. Our products are different than existing offerings such as trailers and
modular homes as a result of our technology. And although Galexa offers a more suitable and safer solution
for inexpensive living, being different will drive a higher level of scrutiny.
In the past 3 years, home prices have increased by 43.2%, the median income remained flat, and
affordability (HOI) decreased by 28.3%.
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Naples/Marco: 30% of gross income is spent on housing with 10% down payment.
Barriers to the Development of Affordable Housing
Process: All zoning decisions require a super-majority 4-1 vote by the county commission to be approved.
Density and Activity Centers: Collier County has a very low base density of four residential units per acre a
zoning hearing and super-majority approval is required to apply the county’s affordable housing density
bonus program to a development that desires to include affordable units and build above the four units per
acre base.
Impact of Factors: traffic, water/sewer systems, storm water management, open space, preserve, endangered
and non-endangered species will all have their impact on building. Still other projects including jails, EMS,
libraries, community parks, regional parks, government facilities, school, and others will have special
requirements for building.
Critical Need for Affordable Senior and Special Needs Housing
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Target Market
Galexa’s target market consists of affordable homes, beginning in several areas of Florida; these homes will
appeal to individuals categorized as the middle class, workforce, renters, and first-time home buyers. Galexa
will openly pursue this segment of the housing market which will ultimately attract individuals on a fixed budget,
since incredibly high housing prices are sending them across the country looking for alternatives.
There are roughly 75 million millennials in the United States who are between the ages of 18 & 35 (15% of
Collier County Population, 15% of Lee County Population, and 13% of Port Charlotte County Population).
They have a reputation of delaying some of the major steps toward traditional adulthood: marriage, children
and purchasing a home. They have grown in an expanding world of choice and options for almost everything
they ever needed or wanted. Millennial homeownership in the U.S. is at a record low because housing is less
affordable compared to the overall population. “Millennials are struggling to find affordable homes, especially
in the Naples area, where the median price for a home sits around four hundred thousand ($400,000), almost
double that of neighboring Ft. Myers,” according to a 2017 report by real estate website Zillow. A total of 40
percent of households in Collier County are paying an unhealthy amount — more than a third of their income
— on rent or mortgage.
In addition, the record level of student debt makes it more difficult to take on a mortgage loan. According to
the Federal Reserve, there was $1.44 trillion in outstanding student loans at the end of the first quarter of 2017.
As a result, their consumer spending has decreased, and they are beginning to monitor their financial accounts,
making them more knowledgeable about the fees being paid.
According to a recent survey, forty seven percent (47%) of young people between the ages of 18 and 34 would
rather spend their money on traveling than buying a house; this shows that they value experiences over owning
materialistic things. Not only are houses more expensive but it’s tough to scrape together a down payment
when you’re already running a tight ship on dining and entertainment and paying more than previous
generations for health care, education, retirement, and student loans.
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Some millennials are willing to pay extra for sustainable offerings. These millennials are more interested in a
company’s sustainability practices when purchasing an automobile, food, personal care products, consumer
electronics, apparel, and household cleaning products. This green generation says sustainability is a shopping
priority. That is why the sustainable aspect and energy efficiency achieved by Galexa’s products are highly
desirable to this age group.
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For Galexa’s commercial construction market, spending from commercial builders and developers is forecast
for slow growth in 2019 but is projected to be followed by an increase in 2020.
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Creative Strategy
Galexa plans to use its TV reality show concept, social media and internet-based marketing as its primary
drivers, while also utilizing a direct sales force, relationship selling, and contractors to reach its target markets.
These channels are most appropriate because of time to market. Investment will be raised to account for the
capital requirements necessary for fast access to established distribution channels. The owners of Galexa want
to emphasize to potential customers they are more than a construction company, they are complete
coordinators of internet and direct construction related sales and logistics.
Galexa plans to advertise via Google, Facebook, Twitter and through proprietary and aggressive organic
internet-based marketing approaches which utilize thousands of “landing pages” to drive organic searches in
every community where a search is done related to our products and services. We will also invest in a reality
show and promotional videos on technology and pre-engineered building systems and their use for building
affordable homes and commercial projects. Finally, we will invest in more traditional forms of advertising
including magazines, newspapers and radio. The Company’s website will include information on the
Company’s products and services and will have an advanced e-commerce component whereby clients can
order their home online or request a retail custom build or commercial quote. The site will also include
background information on the company owners, executives and contractors. References to the website will
be mentioned in all other forms of advertising. Channels used to reach market segments include sales
associates, the Internet and direct mail.
Pursuing sales through multiple distribution channels is unlike many of our competitors and by providing a
differentiation in our price points and speed of delivery, Galexa believes production volumes can be
maintained with confidence. This stability will also afford the company an advantage to scale and develop
into additional geographical markets at a rapid pace.
Distribution Channel
Galexa will be using the internet, social media, sales associates and direct mail distribution channels. We will
be designing and selling the homes and wall shell systems, with our team of architects, designers, engineers,
contractors, steel fabricators, builders, business developers, and GCs.
Website
The website www.galexausa.com has been
developed and is being upgraded to become
more robust and supply our prospective
clients with full information on the Company,
our products and total costs involved in
purchasing a home or shell wall system.
We will provide them an efficient way, in
which to order our products and coordination
with our entire team. The beginnings of our
site can be seen in the image to the right. The
cost to further develop the website has been
included in our initial budget, with website
maintenance costs included in our ongoing
expenses.
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TV Show
The TV show will first focus on the full process of designing, building, and selling Galexa’s homes and shell
wall sytems. It will feature the innovative technology and modern, eco-friendly, safe, and affordable products
we create. Once they’re finished, live testimonials from the homeowners and contractors will be shown. Future
episodes will target the advanced SuperComposite building systems how Galexa developed the technological
and the advances found in these systems that help drive costs down and decrease the time it takes to construct.
Channels: HGTV, DIY Network, Netflix
Media Reach - TV Commercial
Galexa will run 30-second TV commercials on the target demo’s networks and will create a TV show in targeted
regions. Advertising can be shown on Fox Morning Blend, Wink News, and other television channels on (on
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their websites, as well). One of the strengths about advertising through television is its wide range of exposure.
WINK News, Southwest Florida’s News Leader, reaches more people than any other local medium in the Ft.
Myers/Naples DMA (Designated Market Area), their coverage area includes reach into the following: Lee,
Collier, Charlotte, Hendry, DeSoto and Glades. Fox News is the #1 most engaged news audience on the web.
FOXNews.com's compelling news content and trusted multi-platform network attracts a loyal, upscale, and
unduplicated audience; this offers advertisers an exceptional opportunity to connect to unique audiences
otherwise unreachable. Fox News and Wink News both have high repeated exposure rates, which will allow
Galexa to reach its target audience.
Radio
The chart above shows that the desired target market listens to radio; this concludes that a variety of people
will be reached. Radio advertising will provide both scheduling and creativity flexibility, so it is relatively
affordable depending on frequency and production cost. To abide with the chosen target market, the radio
stations that would create the most reach would be Y100.1, B103.9 and 105.5 The Beat. The ad will be a 30-
second audio commercial that will be executed on a continuous basis throughout the year.
Radio Script: “Hey, does the idea of owning your dream home seem unrealistic? Well think again, Galexa is the
future of affordable and sustainable homes in SWFL. Our homes are selling quickly, act now to buy your
customized home at a reasonable price! Open house will be held Saturday, February 3rd. To learn more about
Galexa,visit our website: www.galexausa.comor call (239)963-2640. Galexa: Affordable Homes.”
Newspaper
Newspapers have the potential for high-impact messages; pictorial images can attract attention and enhance
the visual presentation of Galexa. The way consumers read a newspaper varies from print and online to tablets
and smartphones. Naples Daily News has come up with innovative media solutions to reach large audiences in
print, online, and mobile; their print/electronic reach statistic states that they have 206,675 readers all week.
Another opportunity is for the Company to place an advertisement in Gulfshore Magazine/website; this
magazine has 143,000 readers and 46,460 are in the Naples area, this will give the company high exposure.
Costs associated with advertisements in the Naples and Ft. Myers News are included in our marketing budget.
Google AdWords
Galexa will use Google AdWords as a form of advertising. The objective of this tactic is to increase website
traffic for the Company; enrolling this flexible service will attract potential customers. By utilizing search
engines' AdWords, potential customers and people looking for a new home, hurricane-proof home, or eco-
friendly home will quickly discover Galexa, as it will appear on the search engine's first page. Google AdWords
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has the pay-per-click method, therefore, every time a customer clicks on the website, $0.50 or the bid amount
is charged. Over time, this total would, as it should, increase to maintain awareness in its market and bring new
potential consumers.
Facebook - Instagram – Pinterest (Social Media Videos)
The purpose of creating Facebook, Instagram, and Pinterest pages is to improve brand awareness with a fine-
tuned audience, extensive analytics (performance and ROI), and cost per click method. Their Power Editor
tool makes it easy to handle the social media advertising campaign. This website also has an "insights" tab where
they can provide you with metrics such as the weekly reach, page likes, engagement, and measuring the page
with competition. The pages will feature encouraging posts on benefits of buying affordable homes, innovative
designs, and articles about our product line to keep the target interested. Creating these pages are essential; it is
an easy, low-maintenance way of communicating with the target market.
Direct Mail
By sending direct mail about Galexa, one can predict that the consumer will receive it. If it addresses their needs
and wants, they will end up responding either by going onto the Company’s website, calling the Company, or
checking their social media accounts. Using USPS, an estimate is given for mailing directly to each door, but a
specific zip code must be set; however, every door direct mail order cannot exceed 5,000 pieces which can
become an issue, but there are other direct mailing websites that can be used. The mailings will be sent to
apartment complexes, condominiums, trailer parks, and students living in dorms.
Customers
The U.S. has a shortage of 7.4 million affordable rental homes available to low income renter households,
resulting in 35 affordable and available units for every 100 low income renter households. This leaves an
absolute shortage of 3.9 million affordable rental homes for low income renter households (Figure 1) and
gives higher income households a broader range of affordable housing options. 71% of low income renter
households are severely cost-
burdened, spending more than
half of their income on rent and
utilities. The NLIHC-led United
for Homes campaign proposes a
realignment of federal housing
expenditures that would provide
greater investment in housing
for the lowest income
households with savings from
modest reforms to mortgage
interest deduction. These
reforms would provide 15
million additional low and
moderate-income homeowners
with a tax benefit from their
mortgage and generate $241 billion in new revenue for affordable housing programs for the lowest income
renters like the national Housing Trust Fund, vouchers, and public housing.
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Competition
Hight-Tech Tilt
Focus: Hi-Tech Tilt provides panels which are framed with metal studs and track. The walls can be pre-
fabricated in a plant or cast on-site on the building slab.
Location: Laredo, TX
Social: Facebook (330 followers)
Publicity: World of Concrete Expo review
Website: https://www.hi-techtilt.com
Sundog Structures, LLC
Focus: Design, fabricate and install shipping container homes and buildings on the site. They work with
homeowners, developers and businesses to create buildings.
Location: Tampa, FL
Social: Facebook (1600 followers/likes), Twitter (20 followers), Instagram (94 followers)
Publicity: HGTV, Dwell, Naples Daily News, Tampa Bay Times, Fox 35 News, Dikman
Website: https://www.sundogstructures.com
Slender Wall
Focus: Slender Wall provides Architectural Cladding Panels that are high performance, thermal and fire code
compliant, architectural precast composite cladding systems to reduce construction costs.
Location: Midland Virginia
Social: Facebook (517 followers)
Publicity: Fox News Insider
Website: www.slenderwall.com
New Generation Home Builders
Focus: A company that sells customized, prefabricated homes. They specialize in the smaller tiny homes or
offices. They provide sustainable, fully functional homes, though they also take orders for custom builds.
Location: Lakeland, FL
Social: Facebook (217 followers)
Publicity: Fox News Insider, Tiny House Blog
Website: http://nghomes.com
The Container House
Focus: Residential and commercial buildings. They serve in South Florida, Miami Dade and Broward counties
only and we export outside USA. Their buildings are not prefabricated, they are completely built on site. Key:
Stronger, Affordable, Sustainable, Safer.
Location: Miami-Dade and Broward, FL
Social: Facebook, Instagram, Twitter, Google +
Publicity: None.
Website: http://www.thecontainerhouse.com
Niche
Galexa’s niche will consist of filling the low-cost affordable housing shortage that currently exists in
Southwest Florida and around the country. We will specifically plan to target millennials, workforce housing,
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retirees and others who are on a fixed budget as well as military veterans and individuals with an interest in
sustainable and eco-friendly living. This niche has significant volume. Additionally, there is a niche of
available shell wall systems and none that provide all the attributes provided by the Galexa SuperComposite
pre-engineered technology. As a result of filling these niches in the market place we are positioned for a
positive long-term outlook of ongoing sales and profitability.
Promotion
Galexa will participate in local and national promotional events and already has a presence at several of these
events thereby increasing the company’s brand recognition. These promotional activities will serve as a
supplement to our other marketing tactics.
Events
An approach of paramount importance to Galexa’s success will involve appearances at numerous events and
trade shows. Our primary pursuit will be to attend those events attracting home builders and individuals who
are considering new home construction. With the production of our two
fully equipped transportable demonstration units, the company will have an
impressive showing at each event. We believe this will have a significant
difference in driving orders and overall revenue to be driven. Initially,
events and trade shows will be local, although they will then expand into
broader markets that follow suit with our controlled growth initiatives.
Some initial events and trade show events we plan to attend include:
1. FGCU, FSW, Ave Maria, Hodges, Keiser, Lorenzo Walker Institute
Seminar: Host an event at various colleges in Collier/Lee County to
inform college students about the prospect of affordable housing
options.
Create an architectural model to help students visualize how the home will look
Create video of the full building process
Show selection of plans and upgrades
Provide financial overview
Distribute media kit (articles, studies, research on benefits)
In addition to advertising, what plans do you have for graphic image support? This includes things
like logo design, cards and letterhead, brochures, signage, and interior design (if customers come to
your place of business).
2. Farmer’s Markets in Naples- Set up table to capture attention of people interested in sustanability and spread the
word about Galexa. Try to sell farmer market booths or commercial portable units.
3. Miami Art Basel- Set up a model for a home, store, art studio, work shed or farmer’s market booth.
Tradeshows
NAHB International Builders' Show®
Focus: 80,000 builders, general contractors, remodelers, designers, flooring professionals, as well as product specifiers
from around the globe.
Design & Construction Week® (DCW)
Date: January 9-11, 2019 in Orlando, FL
Location: Orange County Convention Center.
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10th Annual Fall Home & Garden Show
Focus: Latest products and services for everything from builders, contractors, materials, decks, pools, spas,
entertainment systems, storage, plants, landscape displays/materials, kitchenware, and much more.
Date: August 10-12, 2019 in Orlando, FL
Location: Orange County Convention Center.
Future Projections
As Galexa progresses, we will expand branding opportunities by introducing additional offerings that complement our
core product line. These will include but not limited to some of the following:
Solar Panels: Home buyers will have the option to install solar panels, in the long run this will help reduce the cost of
energy consumption and gas bills. Furthermore, the buyers will be able to pay off while using free their energy as there
is more than enough sunshine in Florida to generate electricity.
The U.S. places second in the world in annual carbon dioxide
emissions at 17.9%, right behind China; therefore, using solar
panels can lower your carbon footprint by replacing utility
power with clean electricity from solar panels. Including this
energy efficient feature in the homes can also help to reduce
U.S. dependence on foreign energy, following the sustainable
way of living.
Location
Daily operations for Galexa will be run from our administrative & sales offices located at 453 Bayfront Place in
Naples, Florida. In an effort to keep our initial investment costs to a minimum, our construction processes will take
place at two locations. The first location will be for completion of our Retail line of homes and pre-engineered shell
wall systems which will be manufactured at the Coastal Prefab Walls facilities, located off Crystal Drive in Fort Myers,
Florida. The second location will be for our Direct line of homes, which will be completed at our individual client’s
land parcel where our assembly teams will make all connections to utilities, assemble the units and perform work with
client to address all zoning and permitting requirements.
Distribution Channels
Sales distribution for the Company will be multifaceted, consisting of Direct (mail order, Web, catalog) and through
our Retail group consisting of Galexa Sales Agents and Real Estate Professionals. Government and other bids on
contracts will be completed via Galexa’s Executive Management Team.
Sales Forecast
Galexa has already experienced a significant prospective client interest during our launch and we have individuals
beginning to take contracts and secure construction deposits. As a result, we have a significant pipeline of prospective
clients in excess of two hundred million dollars ($200,000,000). If Galexa closes just 30% of these prospective orders,
we will beet our projected numbers in the attached financials.
Production
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Production techniques and costs will be driven by both the Department of Housing and Urban Development Codes
for housing construction, as well as Galexa’s technology through its Architect, Structural Engineer, Manufacturing
Group and its General Contractor. Overall costs will be scrutinized on an ongoing basis by the Company’s CFO,
David Tingley, as well as quarterly by Galexa’s Board of Directors at their regularly scheduled meetings.
Quality control will be overseen by Galexa’s management team. In conjunction with the Company’s contract partners
involved in daily construction, customer service and inventory control will be overseen by the Company’s CEO and
CFO, Chuck Ardezzone and David Tingley. Product development will be a combined effort by the Company’s COO
and Chief Design Officer as well as our GC and development partners to continually perfect Galexa’s final product.
Legal Environment
Licensing and bonding requirements, permits, health insurance, workplace and environmental regulations, special
regulations, zoning and building code requirement and Builder’s Risk insurance coverage will all be the responsibility
of our construction partners and manufacturers, thereby lowering overhead costs and liability.
Trademarks, copyrights, or patents will ultimately come up because of innovation in construction and will be
perfected and pursued by Galexa’s management team upon approval from its Board of Directors.
Galexa has retained the services attorney Kevin Carmichael of Wood, Buckle & Carmichael, to help produce our legal
documents for general sales and to help create land trusts and other development related documents. Mr. Carmichael
is based in Collier County and is a seasoned professional in both real estate and tax law.
Personnel
Galexa currently employs (5) individuals, including Chuck Ardezzone [CEO], David Tingley [CFO], Paul Inglese
[Chief Design Officer], Dave Taylor [V.P. of Construction] and Tony Richardson [Director of Sales]. The company
also plans to hire two support staff members within the first three months of the Company’s completion of its
fundraising.
The company’s senior management team will receive a salary and incentive for performance based upon a percentage
of the Company’s gross profits.
Two additional employees will be hired into the Company within the second full year of business. These individuals
will come aboard at a rate of thirty thousand dollars ($30,000) and sixty thousand dollars ($60,000) in base salary. One
of these employees will be a General Administrative Assistant and the other will be an Executive Assistant to the
Management team. Both individuals as well as the three managing members will be cross trained in sales, so we will
ultimately have a sales force of five. The Assistant to the management team will be paid a higher salary as they will
have more responsibility and require a greater background knowledge in both construction and business operations.
Real estate professionals and brokers will be recruited to help formalize and solidify contracts.
Training methods and requirements will evolve as the Company grows and written job descriptions, employment
contracts, schedules, procedures, a company manual, and other “best Human Resource practices” will be put into
place and followed to ensure the structured growth and performance of our workforce.
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Inventory
Although Galexa will outsource its construction operations and will require very little inventory to be kept on hand, it
will have two model home units held in its inventory. This will consist of one sales model to be located at Bayfront
and one fully equipped one thousand square foot home and also one that is approximately four hundred 400 square
feet, which can be transported to trade shows and other locations where sales opportunities exist.
Suppliers
Galexa’s key supplier will be Lowes Stores on a national basis. The company has agreed to develop a corporate
relationship starting in Naples Florida and expanding nationally. With the program Lowes offers their hightes
discounts for competitive pricing and also ensure to consistently monitor our inventories and ship all building
materials for specified units in bulk deliveries. This helps keep all General Contractors and their subs on a high
tolerance with little shrinkage, thereby driving down overall prices to complete. In addition, when specific items are
beginning to be phased out by Lowes, the company will indicate the upcoming event and provide Galexa extremely
attractive pricing (sometimes as much as a fifty to seventy percent (50% to 70%) discount) if we will buy out their
remaining inventory of the item.
Credit Policies
Galexa sell some of its product via an in-house credit line we are developing with Lexx, which is a fund we will
partner with to provide homes and construction financing. In addition, we will work with lending institutions to help
facilitate customer requests for financing their home or commercial shell wall systems.
Managing Accounts Payable
Galexa will age its accounts payable to suppliers for thirty to ninety days to help determine who to pay and when.
Depending upon the item or service performed as well as the supplier’s terms, we will minimize early payments to
avoid depleting our cash and avoid paying late, to keep good relations and keep a good credit rating with our
suppliers. In some instances where there is a valuable discount available for early or prompt payment, we may also
elect to do so.
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VI. Management and Organization
Chuck Ardezzone – Chief Executive Officer
Chuck has been passionate about real estate since he got his real estate license in NYC working
with Mylonas & Papolis Century 21 office in the 1980s. He has been producing real estate TV
shows over the last 5 years such as:
“Malcolm Flips Vegas,” “Billionaire’s Coast,” “The Real Estate TV Show of SWFL,” he has
also has produced over 500 real estate videos. Chuck will be instrumental in Galexa’s
marketing plan, especially in its production of a half hour TV show to be used in a national ad
campaign representing the Company, customers and brand.
As a seasoned film and TV producer, Chuck is constantly putting together win -win deals for
all parties involved.
Chuck recently got into real estate development through his many contacts with investors,
developers and real estate professionals. His strengths will be utilized to raise equity capital and to spearhead
marketing. He owns a full-service marketing company which handles marketing for over 30 real estate companies, 5
builders and other companies including The Hyatt House, The Marco Marriott, Toyota, Honda, The Naples Wine
Festival, and The Naples Humane Society, to name a few. Finally, he is an executive producer on many TV shows and
movies, many of his contacts in these businesses love to invest in real estate and are extremely excited about Boxville.
David Tingley – Chief Financial Officer
David has served as President of First Financial Solutions LLC, a Naples, Florida based capital
advisory group, which he formed in 2005. Prior to that he held positions with Wells Fargo Private
and Republic bank as a senior loan officer in Ann Arbor, Michigan. Additionally, he held positions
as Director of Corporate Relations for both Patriot Solar Group and Equitech International which
are international manufacturing companies. Throughout his twenty-five year plus career, David
has developed an expertise in complex contract negotiations and is well versed in international
businesses, finance, and real estate. Some of his specific accomplishments also include managing a
staff of twenty loan officers in his mortgage company and personally acquiring and self-managing
sixty residential and commercial real estate units. Galexa believes that David is uniquely qualified
to assist its organization in fulfilling growth strategies and objectives.
Dave Taylor – Vice President of Construction
Rick served 24 years in the U.S. Air Force and retired as a full Colonel in 2012. He was then
recruited to Naples to working in hospital administration serving as Chief Operating Officer of
Physicians Regional Medical Center. For 4 years he was responsible for day-to-day operations of
the hospital and directly supervised 13 departments. He led the design, construction, and
oversaw the hospital's opening of a Walk-In Clinic, Rehab Center, and Primary Care office on
Marco Island… as well as the design and construction of a second Walk-in Clinic and Primary
Care center in East Naples.
In January 2017, Rick joined Avow Hospice as Senior Director of Development. He was a key leader securing major
gifts, oversaw donor management, and implemented improved healthcare services and expansion plans. He also served
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as the senior military advisor for the Avow “We Honor Veterans” program ensuring patient and family satisfaction for
military veterans, hospice care, child services, and bereavement programs.
During his military career, Rick was a senior Air Force officer commanding in leadership roles worldwide. He held
military positions in Germany, Hawaii, the Pentagon, and NATO, living and working in 80+ countries. He served as
a senior commander at Andrews Air Force Base supporting the President of the United States and all Air Force One
missions. He then led a NATO unit at Ramstein Air Base, Germany, where he was responsible for all construction,
security, engineering, maintenance, transportation, human resources, supply, logistics, food service, safety, and linguistic
translation… supporting the 26-nation command.
In addition, Rick served as Deputy Base Commander at Eglin Air Force Base in Ft. Walton Beach, Florida. There he
ensured support to the 725 square mile base (Department of Defense's largest installation) and directed all operations
for over 35,000 personnel with $16 Billion in infrastructure. He led strategic planning and oversaw all housing,
construction, healthcare, food service, facilities, security, safety, fire/rescue, human resources, environmental, IT,
logistics, 3,000+ houses, and 1,000+ dormitories. He also supervised the Air Force’s 4th largest Medical Center
encompassing 1,500 medical staff supporting 85,000 beneficiaries and 300,000 annual patient visits.
Rick next served as Base Commander of the United States Air Force Academy in Colorado Springs, Colorado, where
he commanded base support, housing, construction, food service, and a Medical Center supporting 4,000+ cadets a
military community of 35,000+. Finally, he was Director of Manpower & Personnel for U.S. Strategic Command,
overseeing all human resources programs for the United States' classified nuclear and space forces.
In 2001, he commanded his unit to selection as U.S. Air Force Mission Support Squadron of the Year and was personally
selected as the 2001 U.S. Air Force Senior Personnel Officer of the Year. Rick has worked for two U.S. Presidents
(Bush 41 & Bush 43), for General Norman Schwarzkopf, and was also the Aide to an Air Force 4-star General for three
years. He has extensive operations, construction, and healthcare experience as well as leadership expertise working with
the USO, Wounded Warrior Program, Air Force Academy Foundation, American Red Cross, Fisher House, and many
Chambers of Commerce nationwide.
Rick holds a Bachelor of Science Degree from the United States Air Force Academy and three Master of Science
degrees including one in Public Administration & Policy from Central Michigan University. He will add an exceptional
level of professionalism to the Galexa Team.
Paul Inglese – Chief Design Officer
Paul started his career in 1986 as a Industrial Designer, specializing in the design and
development of brand identification. Within a short period of time Paul was awarded a contract
with Sunoco Oil Company for 300 locations throughout the Northeast United States.
Shortly after the completion and success of the Sunoco Oil project, Paul acquired accounts with
some of the nation's leading retailers and mall developers including Starbucks Coffee, Miller
Brewing Company, Anheuser Busch, Trans World Entertainment, McDonald’s, Burger King,
Cinnabon, Blockbuster Video, Hollywood Video, General Growth Properties and Forest City
Development, working on projects throughout the United States, Canada, and Puerto Rico.
With the challenges and constraints of working in shopping malls, airports, stadiums, and arenas, Paul began designing
with modular components that were manufactured off-site. Seeing the many advantages of modular construction, Paul
diversified into the design and development of advanced building technologies. After 14 years of product design,
engineering, prototypes and testing, He completed the development of SuperComposite building systems.
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Paul graduated from the Art Institute of Pittsburgh with course studies in Architectural Design, Architectural History,
Product Design, Color Theory, and Visual Communications. He is an associate member of the American Institute of
Architects, a member of the Design-Build Institute of America, a member of the American Concrete Institute, holds a
State of Florida Certified Building Contractors License, and is a member of the Naples Accelerator Program.
Paul brought his SuperComposite building system technology to Galexa. This system introduces new processes, new
technologies, new ways of working and has moved away from the traditional model to one driven by digital
engineering, off-site manufacturing, and modular components. By harnessing this technology, Galexa can plan full
virtual building structures, testing every scenario that may affect construction and operation, building with
components that have been designed and engineered to work together. These can all be manufactured in factories to
ensure quality and to minimize risk and disruption at the job-site which is the future of construction.
Tony Richardson – Director of Sales
Tony Richardson has been in the new home construction/real estate industry in Southwest
Florida since the 90’s. A native of Michigan, he earned his B.S. in Business Administration at
Northern Michigan University and gained Masters Hours in Marketing Management at Michigan
State University. Richardson has more than 30 years sales, marketing, and management
experience in Wisconsin, Michigan, and Florida.
Mr. Richardson built a successful new home construction business as a licensed residential
contractor in the 80’s. As a licensed Michigan Residential Contractor, he founded and directed Sunstar Solar Systems,
developing a line of passive solar retrofit greenhouses which he manufactured and marketed throughout Michigan as
well as Huron Forest Community Greenhouse, a pilot program for the State of Michigan meant to integrate mentally
and physically handicapped persons back into society through working in a greenhouse setting, both in Oscoda.
Richardson moved to Florida in 1988 and reentered the construction industry as the Marketing Manager for Honc
Construction in Bokeelia. He then served as the Vice President of Business Development for Lee Mac Homes of Fort
Myers prior to joining Avatar in 1995 as Sales Manager to assist in launching Cape Harbour, an upscale gated
residential community in SW Cape Coral.
Over a 10 year period during which he formed Green Earth Realty & Consulting in 2002, Richardson was
instrumental in launching three new gated lifestyle communities in Southwest Florida; Cape Harbour in Cape Coral in
1996, Bridgewater Bay in North Naples in 2000 and Province Park in Fort Myers in 2002. Working in all facets of the
new home development industry, Richardson has been instrumental in overseeing the sale of over 1,100 homes
accounting for over $414,000,000 in new home sales.
Mr. Richardson has recently been involved in designing and marketing Scientifically Built SIP and ICF Mini Homes
from 200 +/- sq ft to 1200 +/- on site including larger custom designed residences on demand.
He is a 1031 Specialist, Certified E Pro Internet Professional, ABR Designate, Certified New Home Sales Professional
(CSP), NAR GREEN Designee and a LEED Green Associate. Mr. Richardson sits on the Board of Directors for the
Florida Gulf Coast Chapter U.S. Green Building Council, Chairs LEED FOR HOMES for the Chapter, and was
selected in 2013 to Co-Chair the USGBC National Initiative “Highlighting Green Homes” as well as Greening The
MLS” in Lee and Collier County, As a result of his diligent work for the USGBC, he was chosen as the "Member Of
The Year" for the Gulf Coast Branch in 2013, Central Florida Chapter.
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He is a current member of the Florida Gulf Coast Board of Realtors, past member of Naples Area Board of Realtors,
the Collier Business and Industry Association and Lee County Business and Industry Association’s Sales and
Marketing Council.
Todd Gates – General Contractor and Construction Advisor
Since 1995, Todd has headed Gates Construction, Florida’s premier fully integrated construction,
development and real estate company. They are an award winning Class “A” general contracting
firm, Commercial Development Company, Commercial Real Estate Company, and Property
Management Company that specializes in a diverse range of services. Gates projects include
condominiums, hotels, office buildings, shopping centers, restaurants, educational facilities,
government and medical facilities.
In 2007, the firm was recognized as a Top Contractor by Southeast Construction magazine, and
ranked second in volume by Gulf Coast Business Review in its Top 50 Contractors on Florida’s
Gulf Coast from Tampa to Naples.
Todd is the immediate past chairman for the Economic Development Council of Collier County (EDC) and he
currently serves on the Board of Directors for the President’s Forum. Todd was recently nominated and is currently
serving on the Board of Trustees for the Florida Chamber of Commerce Foundation and is a member of the Florida
Chamber of Commerce Board of Governors. He is one of the founders and current board member for Liberty Bank.
Todd serves on the board of directors for The Children’s Hospital of SW Florida, Junior Achievement, and the CEO
Cultural Advisory Board for the United Arts Council. He is a current board member for the Chamber of Southwest
Florida and a current board member for the Fellowship of Christian Athletes. Todd also serves as a Trustee for the
YMCA and a Trustee for Hodges University. He serves as an Elder for the Moorings Presbyterian Church. He is
active in the Naples Chamber of Commerce, helping to start the “Soaring with Eagles Program” aimed at the area’s
numerous retired CEO’s and military leaders.
He is a past Chairman of the Christian Chamber of Southwest Florida. He is a past president of the Collier Building
Industry Association, the largest builder and development association in the state of Florida, and was named Builder
of the Year in 2003.
Recently, Todd has been named Entrepreneur of the Year by the Gulf Coast Business Review and has been
recognized as one of Gulfshore Life magazine’s Men of The Year.
In recognition of his commitment and dedication to the community, Todd was honored by the Education Foundation
of Collier County as a 2007 Man of Distinction.
Scott Aikns – Lead Architect
Mr. Akins is a licensed and well-respected Architect in Florida, New York, Colorado, Illinois &
North Carolina. He is also member of NCARB, American Institute of Architects, National Trust
for Historic Preservation and USGA. He holds a Master of Architecture, from the University of
Florida and has been a strong asset for Galexa in designing its initial models. Scotts experience
includes numerous multimillion-dollar homes in Port Royal and other developments in Naples
Florida as well as commercial and mixed-use developments such as Truluck’s Restaurants in
Naples, Boca Raton, & Ft. Lauderdale, Weatherburn Art Gallery, John R. Wood Office Building
in Ft. Myers, Tavern on the Bay Restaurant, Bayfront, Executive Offices, 800 Fifth Avenue South,
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and Spa & Fitness Improvements, Inn on Fifth, Naples, Florida. Prior to forming his own company, Scott worked as
a Staff Architect with Lund Capital Group, LLC, where he designed 3 & 4 story industrial storage buildings, Avon,
Colorado, Commercial & Industrial Buildings, Collier Park of Commerce. He also worked on projects such as Naples
Beach Hotel Convention Building, Edison Community College, Charlotte County Campus, Immokalee Fitness
Facility, Gymnasium Renovation Barron Collier High School, Golden Gate Fitness Facility, and multiple private
residences. Before he moved to Naples, his career included projects in New York, including apartment buildings,
Battery Park City, 54 - Story Residential Tower, 65th and 3rd Avenue, NYC,Cultural Arts / Hotel Facility,
Meadowlands, New Jersey, Mixed Use Project for Jersey City, Corporate Headquarters for Hertz Rental Car, Rallye
Motors Showroom and Repair Facility in Roslyn, New York. With all of his experience, Scott helps complete the
Galexa team of experts that make for a paramount experience to our clients.
Lois Bolin – Advisor
Lois Bolin is a valuable member of Galexa’s Board of Advisors, she is a Strategic Innovator,
Community Steward and Old Naples Historian. Lois holds a Ph.D and blends her 39 years of
business experience in SWFL for both profit and not for profit organizations – all for the love of
community, local history, and our veterans. She is married to retired executive and former USAF
Fighter Pilot and Vietnam POW (5 yrs.-2 mos.), Wayne O. Smith. Her accomplishments include
the Heritage Trail Museum, Naples Trolley Station and her role as the Cultural Heritage Tourism
Editor. She also is the Board Chair for SWFL Veterans Alliance Inc., the Coordinator for
Veteran’s Oral History Project (Library of Congress), Florida Chair for Keep the Spirit of ’45
Alive, Founding Member of Old Naples Waterfront Association and Naples Stone Crab Festival.
Lois also works to forward a number of Public Private Collaborations including the Bronze Heritage Markers. Old
Naples Walking Map, Naples Christmas Parade City Fest Founding Committee Member. Lois is also a Columnist for
Patriot Column (Life in Naples), Cultural Heritage (Experience SWFL), Undercover Historian (Florida Weekly) and
Old Naples Historian (Naples Journal). She has achieved numerous awards including 2017 NDN 25/50 Community
Award; 2013 Woman of Achievement, America Association of University Women; 2011 SWFL Power Players,
Gulfshore Business magazine; 2010 Business Players; People to Know, Florida Trend magazine; 2008 Woman in
History, ABWA Neapolitan; 2004 Woman of Initiative, Community Foundation of Collier County. We are honored
to have Lois help oversee Galexa’s strategic approach to grow the organization in a positive and charitable way.
Professional and Advisory Support
Galexa,LLC -Board of Directors
Chuck Ardezzone – Chief Executive Officer
David Tingley – Chief Financial Officer
Rick LoCastro – Chief Operating Officer
Paul Inglese – Chief Design Officer
Mike Christoff – Member Owner
Larry & Denise Kirschner – Member Owner
Galexa,LLC – Board of Advisors
Mike Christoff
Todd Gates
Lois Bolin
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VII. Startup Expenses and Capitalization
Galexa will have expenses as we expand our operations. An estimate of these expenses will include but not be limited
to two hundred seventy thousand dollars ($270,000) for building out the sales center a four hundred foot demo unit
trailer, five thousand dollars for development of our website, two hundred thousand dollars to develop and begin
implementing social media campaign including purchase of Google and Facebook AdWords and advertisement, fifty
thousand to begin production of commercials and container home movie, one hundred thousand dollars ($100,000)
for professional services including attorneys and CPA to properly prepare engagement agreements and other contracts
for ongoing service with suppliers, employees and others. Surplus funds will be needed for meeting payroll, paying
insurance and providing cash flow during construction phases.
Financial Plan
Galexa’s financial planning consists of a twelve- month profit and loss projection, a four-year profit and loss
projection, a cash-flow projection, and a break-even calculation. Together they constitute a reasonable estimate of the
Company's financial future. Please see details of each of these projections in the attached financial projections
document.
Equity Investment
Galexa seeks investment capital from qualified investors in the amount of one million dollars. Funds will be utilized to
solidify engagements with partners and suppliers, to assist with general sales and general administrative start-up costs
as well as to complete a variety of initiatives which require professional services such as website and social media
development, drafting employment contracts and supplier agreements and purchasing insurance policies. Some funds
will be used towards employee payroll and to increase the Company’s reserve surplus. Further details of this offering
can be found in the attached Galexa Private Placement Memorandum.
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VIII Appendices
Financial Projections:
See attached Excel spread sheet for all financial projections and assumptions