The Construction Source America
The Construction Source America
The Construction Source America Welcome to the latest issue of Construction Source America, where we highlight the best of the best in building and building products across the United States. This edition features profiles of a variety of companies, from general contractors, to architects and designers, to real estate investment firms – all of them industryleading. Hy-Tec Construction, for example, is a Minnesota-based company with unparalleled experience in the commercial, industrial, and residential sectors. We spoke to General Manager Mitch Feierabend – a fourth-generation builder, who grew up around the company – about HyTec’s long history in the region, their growth over the years, and the values that have powered that growth. Other companies in this edition include Palette Architecture and Barrington Capital Group. The former is based in New York City, the latter in Southern California. We spoke to the founding partners of both– John Sunwoo and Jeff Wandersman for Palette, and Bryan Leishman and Aaron Mensch for Barrington – about the reputations they have built in their home markets, and about some of the projects they built those reputations on. For those conversations – and more like them, with other industry leaders across the country – just keep reading. All the best, The Editorial Team We will keep adding business units that enhance our offering and separate us from our competition. “ ” Editor From The Dear Reader,
The Construction Source America
The Construction Source America
The Construction Source America With over 90,000 senior executive readers, The Construction Source is proud to offer an attractive platform to share you message with the people that matter most - your customers. Whether your objective is to promote a new condo development, attract financial investment in your upcoming projects, or to build brand recognition, we stand ready to help! To find out more about having your company or latest project feature in The Construction Source, please contact our Group Publisher. Jermaine Poulsen e: info@theconstructionsource.net The Costruction Source Canada 2201 - 250 Yonge St Toronto, Ontario M5B 2L7 E: info@theconstructionsource.net Group Publisher Jermaine Poulsen General Manager Alexandra Box Operations Manager Joshua Stewart-Boyd Head of Editorial Content Allen Bishop Production Manager Vicki Lee Editor Zach Janes Graphics Design Pranim Thapa
The Construction Source America 3M Helping you be safe with the right fall protection equipment Hy-Tec Construction The HY-TEC way Palette Architecture Design that makes a difference Ares Strategic Mining Bringing back a lost industry Royal Oak Developers The right projects Barrington Capital Group Complicated transactions made easy IN THIS ISSUE AUGUST 2022 BARRINGTON CAPITAL GROUP ROYAL OAK DEVELOPERS PALETTE ARCHITECTURE
The Construction Source America ARES STRATEGIC MINING
Helping You Be Safe with the Right Fall Protection Equipment Imagine working 10 feet above the ground. Now imagine working on top of a roof about 50 feet above the ground.
PRODUCT OF THE MONTH Imagine working 10 feet above the ground. Now imagine working on top of a roof about 50 feet above the ground. And now, think about constructing a skyscraper and being 50 stories in the air. Fall protection equipment is an essential component of your safety. But, more than that, you need to know how to use the equipment properly. For this, you need adequate training and an understanding of what is required to be compliant.
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Some of the most dangerous aspects of working at height are leading edge situations. This is work conducted with an unprotected edge, perimeter or border where a fall hazard exists. Typically, a leading edge situation will force a lifeline or lanyard to ‘bend’ over the edge in the event of a fall over the edge. Additionally, many leading edges also present sharp edge hazards that can fray or even sever a lifeline as it bends over the edge. Here are some other risks that exist due to leading and sharp edge situations: • Increased fall distance be- cause typical anchor point is at foot level • Unpredictable lock up speed – a self-retracting device will only sense a fall when user’s D-ring moves past the leading edge • Increased fall clearance re quirement due to the in- creased fall distance • Increased arresting forces • Potential for sharp edge to cut or severely damage life line • Increased potential for swing falls Currently, the ANSI/ASSP Z359.14 standard for Self-Retracting Lifelines (“SRLs”) has specific test criteria that include testing to simulate added free fall distance, testing performed over sharp steel edge (.005 inch radius), and testing for swing fall over steel edge as well as straight down. One of the Leaders in Leading Edge Protection PRODUCT OF THE MONTH “Typically, a leading edge situation will force a lifeline or lanyard to ‘bend’ over the edge in the event of a fall over the edge.”
Note that there is a difference between leading edge (“LE”) and non-leading edge rated fall protection equipment. With LE equipment, the lifeline material is typically larger, stronger, and more cut resistant. You can use LE rated products on a variety of edge surfaces, such as concrete, and they can be used on finished concrete with a rounded edge. A Competent Person must be involved in selecting the appropriate equipment for your application and have ownership of the setup, which involves training. You should feel free to consult with us about your application needs and reference the ANSI Z359 . ALL ANSI/ASSP Z359.14 LE devices MUST have a shock absorbing method between the worker and the SRL. There are also clearance requirements for LE rated products. Typically, more fall clearance is required because of added free fall distance when anchored at foot level. The exact clearance depends on product type, anchorage point location and user weight. For example, SRL-LE “They have highcapacity and uniform energy absorption designed to balance peak force, capacity and deflection.” THE CONSTRUCTION SOURCE AMERICA
models anchored at foot level, set back from edge and with swing fall possible, will exceed 15 ft. of required fall clearance. Recently, on July 25, 2019, 3M Fall Protection announced an immediate stop use and recall of all 3M™ DBI-SALA® TwinLeg Nano-Lok™ edge SRLs and 3M™ DBI-SALA® Twin-Leg Nano-Lok™ Wrap Back SRLs due to potential partial deployment of the energy absorber under limited circumstances. On August 6, 2019, 3M announced it had resolved the issue on the ANSI version of the Twin-Leg Nano-Lok edge SRLs (these are leading edge models) and identified units that could be repaired. The solution means that these units have been certified to ANSI Z359.14 and, once repaired, are safe to return to service (repaired units are identified by a green check mark on the front label). The stop use and recall is ongoing. For more information regarding the original Stop Use and Recall Notice and all updates regarding affected products, see www. nanolokedgerecall.com. PRODUCT OF THE MONTH “This is what’s really going to put Guelph on the map.”
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PRODUCT OF THE MONTH How do you improve on one of the best permanent horizontal lifeline (HLL) systems in the industry? You give it robust cloudbased software that makes it easy to calculate and design systems. And you make it easier to install and use. Then you design it with components that make the system stronger and offer more uniform energy absorption. The 3M™ DBI-SALA® 8 mm Permanent Horizontal Lifeline Systems make it easier for you to design, specify and install HLL systems across a variety of industries, applications and orientations than ever before. These systems meet the requirements of OSHA 1926.502 and have stainless steel components to help provide long-term corrosion resistance. They have high-capacity and uniform energy absorption designed to balance peak force, capacity and deflection. The robust travelers offer continuous system travel, including bypass of intermediate and corner brackets and incorporate a large D-ring for easy connection. They are designed for use on modern building projects, refurbishments and industrial safety applications, and can be fitted to steel beams, concrete and brickwork. They are suitable for use on older roof constructions in conjunction with fabricated anchor posts. These systems represent another type of fall protection that can be a vital component of your safety protocol. Horizontal Lifelines “We also offer on-site safety training across our portfolio customized to the unique environment of your facility.”
THE CONSTRUCTION SOURCE AMERICA Equipment is only one part of the equation when it comes to protecting workers at height. Fall protection equipment and PPE are often misused, thus creating an inefficient or improper system. Training on how to use the equipment properly and how to work safely in dangerous environments is paramount. At 3M, we have a dedicated customer service team, a fleet of demonstration trucks that will go on-site to your location, as well as extremely knowledgeable sales coverage across the US and around the world. This fleet of specialized demonstration vehicles can bring onsite, hands-on fall protection demonstrations to your workforce. This provides an excellent introduction and awareness to fall protection and safety at height. When it comes to protecting your workers, 3M Safety Training offers a variety of classes and services to meet your needs. Our full range of fall protection, confined space and rescue training courses are offered through the year at our stateof-the-art training centers. We also offer on-site safety training across our portfolio customized to the unique environment of your facility. Training “At 3M, we have a dedicated customer service team, a fleet of demonstration trucks that will go on-site to your location, as well as extremely knowledgeable sales coverage across the US and around the world. ”
3M has a dedicated team of experienced instructors around the world. Our U.S. trainers come from backgrounds including fire service, search and rescue, occupational health and safety, law enforcement, and military service. We also have knowledge and expertise in oil and gas, transportation, construction, utilities, mining and many other industries, enabling our instructors to optimize the training experience for your workers. At our site or yours, our instructors deliver quality training focused on learner engagement, knowledge retention, and practical handson exercises. Our Instructors Open Enrollment Safety Training 3M Safety Training has a network of centers across the U.S., including key locations in Red Wing, MN, Houston, TX, and Orange County, CA. Our centers are designed to immerse the student in extensive hands-on exercises that will prepare them for the diverse demands of your job sites. Our open enrollment classes are a great opportunity to learn with other safety professionals from various industries while receiving industry-leading safety training. PRODUCT OF THE MONTH
Train your team in their own work environment with our onsite training. We’ll send one of our experienced trainers along with the necessary safety training equipment to provide your team with world-class safety training. This avoids the disruption of sending your workforce offsite. Choose from our complete safety training portfolio or work with 3M Safety Training to modify a course to meet your specific training requirements. On-site Safety Training “Thinking About Fall Protection” is an 11-part educational video series designed to give an awareness overview of the basics of working safely at height. The series covers the ABCD’s of fall protection, at-height fundamentals, fall clearance calculations, and types of falls and hazards. The video series is not a substitute for certified training but does provide an excellent introduction to the topic. Watch Our Free Videos THE CONSTRUCTION SOURCE AMERICA
We also offer virtual reality training, which can be a great additional resource because it: • Helps training be more enjoyable and engaging • Assists in improving retention and recall • Suitable for different learning styles and a multi-generational workforce • Encourages companies to continually review basic safety standards • Helps reveal individual opportunities for improvement VR Training We offer a broad curriculum of courses in our training centers around the world, from fall protection and rescue to specialty courses for a particular trade or industry. Many facilities also offer on-site training options that bring our experienced trainers and comprehensive programs right to your facility. With our history of innovation and excellence, 3M Personal Safety Division offers customers the quality products, expertise and service of the trusted 3M™ DBI-SALA® and 3M™ Protecta® Fall Protection brands. With 3M Fall Protection equipment, you can help elevate your employees’ safety and comfort to new heights. Worldwide Training Facilities PRODUCT OF THE MONTH *3500214 3M™ DBI-SALA® Nano-Lok™ edge Quick-Connect Self-Retracting Lifeline 8 ft. (2.4 m) lifeline with 3/16 in. (5 mm) galvanized steel wire rope and aluminum captive carabiner, quick connector for harness mounting. Systems designed to make everyone’s job easier. *Anchor posts not supplied by 3M Fall Protection.
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The Hy-Tec Way
Hy-Tec Construction is a Minnesota-based general contractor with in-depth experience in the commercial, industrial, and residential sectors. In all sectors, they are committed to delivering results that meet or exceed the highest standards. According to Mitch Feierabend, General Manager, everything that Hy-Tec does “starts and ends with craftsmanship.”
“We approach our work with the utmost passion, pride and dedication,” Mitch says. “Our goal is to be the best construction company in northcentral Minnesota.” Mitch is a fourth-generation builder – his father, grandfather and great-grandfather were all contractors before him, so he believes that building “was kind of in my blood.” When he was a teenager, he did odd jobs with his grandfather (including pouring concrete, pushing wheelbarrows around, and cleaning up job sites). Later on, he learned the carpentry trade from his dad. At 17-years-old he framed his first cabin. Hy-tec Construction was officially formed in 1989. Mitch started his career with the company working there in the summers as a labourer. After graduating from college with a degree in Construction Management, he joinedfull-time as a superintendent. He spent seven years in that role before becoming General Manager. In the decade since, Hy-Tec has evolved and expanded considerably. They went from a 30-man crew turning over $7 million a year, to a near-95-man crew doing roughly $40 million a year in volume. “We’ve grown immensely,” Mitch says, “and it’s all come from hard work and taking care of past clients.” AUGUST 2022 “We approach our work with the utmost passion, pride and dedication,” Mitch says. “Our goal is to be the best construction company in north-central Minnesota.”
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AUGUST 2022 Today, Hy-Tec takes on a wide range of project types, everything from complex medical facilities and functional municipalbuildingstoexpansive manufacturing warehouses and custom lakeshore homes. The size and value of their projects also varies – they can take on churches, schools and hospitals valued at $20 million, but they’ll also show up and switch a couple door frames for an existing client. “Over the years, we’ve learned that we need to take care of the clients that take care of us,” Mitch says. “That’s the key to our success.” No matter whom the client is, or what they want built, Mitch believes they choose Hy-Tec for the same reason – their reliability. “We’ve been around for 32 years,” he says. “If we say we’re going to do something, we do it. If we give a price, we stick to it. We’ve proven ourselves. Customers know what they’re going to get when they work with Hy-Tec Construction.” Customers also know they will be getting a high quality of workmanship. Mitch claims that the “Hy-Tec way” is to deliver the “greatest amount of quality possible.” He says they can deliver that quality because of the calibre of their team – they hire only the highestskilled craftsman and work with only the most reliable of local subcontractors. When it comes to their direct team, they employ a lot more workers than most comparably sized construction companies. They have a concrete crew, they have a steel erection crew, and they have a carpentry crew. Most of those crew members have “construction in their blood,” just like Mitch. A lot of them are second or third generation builders. The company’s subcontractors, meanwhile, are similarly experienced, and they tend to share the same values as the direct team. “We have an amazing group of
THE CONSTRUCTION SOURCE AMERICA subcontractors and trades who know their stuff and who work hard,” Mitch says. “We know we can count on them.” ManyofHy-Tec’ssubcontractors have been working with the company for almost 30 years, since Hy-Tec was first formed, or close to it. The advantage of that longevity, Mitch believes, is mutual trust and dependability. The company is confident that if there is an issue on site, their trades will go the extra mile to resolve it. In return, their trades can rely on Hy-Tec to make their jobs easier and generally do right by them. “We know that if we need help from them, they’re going to take care of us,” Mitch says. “And if they need help from us, we’re going to take care of them. We approach all our projects as a team. Everything is done through teamwork.” Hy-Tec’s quality is also a result of their supervision. Mitch describes the company’s roster of superintendents as “the heartbeat of our projects.” “If they ever see something they don’t like, they’ll make sure it gets fixed before we go any further,” he adds. “They’re looking out for the best interests of our clients at all times. That’s the message they’re preaching every day.” “The thing we tell everybody that works for us is that ‘Our name is on every project,’” he says. “No matter what the warranty says, we’re married to that project for life. We want to make sure it comes out right, and we want to make sure it’s
going to last.” In addition to their construction team, Hy-Tec also directly employs an experienced architect along with a staff of highly-skilled designers. Those team members enable the company to offer a design-build service – which means that customers need only have one point of contact throughout the entire construction process. From start-to-finish, Hy-Tec can manage all aspects of a project, making for a “streamlined, seamless, and efficient” experience for the client,” Mitch says. “Our in-house architectural division can work with clients to develop the right design to fit their needs,” he explains. “From there, we can help with all facets of the building process, from acquiring permits to utility hook-ups to final inspections and follow-up. We take all the guesswork out of the equation for the owner.” AUGUST 2022
Currently, Hy-Tec Construction has a wide variety of projects at various stages of development. Their list of recent work includes: a series of school remodels; cabins for local resorts; townhomes for a local developer; a hospital; clinics; and several high-end single residential homes. They are also working on a large mechanical shop for Anderson Brothers Construction, who are one of their longest-standing subcontractors. “We’re doing a lot of diverse stuff, and we expect that to continue into the future,” Mitch says. “We’re going to go where the economy takes us and where our clients take us. Whatever they need, we want to deliver it for them.” “We want to continue to grow with our clients,” he adds. “That’s how we’ve always done The greatest quality THE CONSTRUCTION SOURCE AMERICA
it. As the people we work for have grown their companies, we’ve had to grow our company to keep up. I see that continuing. I see us growing slowly in order to keep up with the economy and service our clients.” Moving forward, Hy-Tec Construction also wants to continue honouring their company name. Mitch says keeping up with the latest in construction technology has always been – and will remain – a priority. “We’re going to keep up with the times,” he concludes. “That means investing in construction management software. It means making sure our guys’ have the best tools in the field. We want to make sure we’re doing whatever we need to do in order to deliver the greatest quality possible.” That said, no matter how much the company grows – or how high-tech they get – Mitch believes it’s important to maintain the same “small town foundation that we’ve built the company on.” “Over the years, our customers have been our neighbors,” he explains. “We’ve gone to church with them on weekends, our kids are in school together, and our kids play sports together. That’s why pride plays such a role in what we do. We never want to lose that pride.” AUGUST 2022
For more on Hy-Tec Construction, their range of residential, commercial, and architectural services, along with their past projects – and to get in touch with Mitch and his team – visit https://www.hytecconstruction.com/ THE CONSTRUCTION SOURCE AMERICA
Design that makes a difference
Palette Architecture is a New York City-based architecture and design office that focuses on designing buildings and spaces that serve the communities they are located in, and that enhance the daily experiences of the people who use them.
Their offices’ diverse, youngergeneration team – led by founding partners Peter Miller, John Sunwoo, and Jeff Wandersman – believe in the power of architecture to make a positive impact, and that’s the kind of architecture they want to do. “We’re always looking for ways to contribute to the communities that we work in,” says Jeff Wandersman. “We’re interested in doing work that makes a difference in people’s lives.” “We like in working with clients who feel the same way, who have the same interests,” adds John Sunwoo. “We believe that exceptional design is the result of mutual respect and shared valueswith clients. It’s important to us to work with owners with whom he we can share a vision. Fortunately, we’ve been very lucky in that regard.” John, Jeff and Peter Miller met in their first architecture studio at Columbia University. After individually working several years at internationally renowned architecture offices in New York City, they decided to team up and form Palette Architecture in 2010. Early on, Palette Architecture took on a lot of smaller interior renovation projects as they built a name for themselves and grew their network of clients. Their goal, however, AUGUST 2022 “We’re always looking for ways to contribute to the communities that we work in,” says Jeff Wandersman. “We’re interested in doing work that makes a difference in people’s lives.”
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AUGUST 2022 was to always get into larger and more complex projects – with the complexity being more important than the size. Today, about two-thirds of Palette’s work is residential, and the other third is commercial. Most of their projects take place in New York City. Almost all of their work is performed on behalf of repeat clients. John credits Palette’s history of customer loyalty to their office’s ability to put themselves in their clients’ shoes – “we really try to understand where they are coming from and what their larger goals are,” he says. “We definitely have our own deep beliefs in terms of what constitutes good design and what’s going to contribute to a neighborhood, or street, or community,” he explains, “but that doesn’t mean we are at odds with the owner’s goals. We use the owners’ priorities and values as touchstones throughout the development of any design.” “I think that attitude has helped us foster really strong relationships,” he adds. “We can be excited by the design and the architecture that we’re doing, but the owners also have to see that their goals are being attended to. That’s always been very important to us. That’s been one of our key values from the start.” “I think a lot of architects aren’t as responsive to owners because it can be challenging to get out of your fixed design process,” he says. “Being flexible can be difficult. That’s something we’ve gotten used to, however, because we’ve done it from the outset.” According to Jeff, their customers also appreciate that Palette can stay involved in projects from start-to-finish, and can offer their expert assistance every step of the way. For example, they can help with the permitting process – in New York City, that can often take a long time, but the team at Palette is familiar with the common pitfalls, they have good relationships with local
THE CONSTRUCTION SOURCE AMERICA regulators, and they can help make the process go smoother. Palettecanalsoget very involved in construction administration, and they have built some trusted relationships with industry-leading contractors. That involvement – and those relationships – can be extremely helpful to Palette’s clients. “I think that ability maybe sets us apart from some other firms,” Jeff says. “Construction is such a complicated endeavor, but having an architect that can stay involved, that can help interpret documents, and that can find solutions to problems that come up in the field – I think that’s really critical to the success of a project. When you have that, projects tend to come in on time and on budget. I think our clients recognize that, and they come back to us for that experience.”
In recent years, Palette has done a lot of work in historic districts, where they have strived to deliver modern buildings while still honouring the heritage of the neighbourhood. A recent project where they achieved that balance is the ‘100 Franklin Apartments’ – a 25,000 square foot project comprising two buildings in New York City’s Tribeca East Historic District. Located in the on an irregular shaped site created by the extension of Sixth Avenue in 1938, 100 Franklin is two triangular ground-up residential buildings constructed over ground-floor commercial space. The south building has six floors, including three full-floor units and a duplex penthouse with a private roof level. The north building has eight floors, including five-full floor units and a duplex penthouse. 100 Franklin AUGUST 2022
The units in that project are a mix of two and three-bedrooms ranging from 1,400 to 3,700 square feet. Each unit is a fullfloor and is accessed directly from the elevator. Layouts were designed “to maximize the efficiency and open feeling of the triangular layouts,” Jeff says. Large windows and light tone wood flooring were selected “to maximize the sense of light and airiness of the units.” According to Jeff, the building “marries old and new.” It features a hand-laid brick façade with classically inspired masonry combined with modern architectural detail. The façade features a mixture of Danish hand-fired and large Italian wood-framed windows. The hand-laid brick is deployed expressively around entry points, windows, and points where the buildings merge together. “These details at times make the structure feel weighty and grounded, while from other perspectives it is light and dematerializes,” Jeff says. The client on 100 Franklin was DDG Partners – they also acted as designer, developer, and contractor for the project. Palette Architecture was brought in as the architect of record. Jeff describes their relationship with the team at DDG as “extremely positive.” “Everyone on that project was working together towards a common goal,” he says. “Everyone was aligned in their vision. Everyone worked together seamlessly. I think that shows in the result.” John and Jeff were particularly proud of that project because of howmuch it both “took from” and “gave to” the neighborhood. By ‘took from,’ they mean that it nicely fit within the existing character of the community and the street front. By ‘gave to,’ they are referring to how it enhances the street by being so visually interesting and dynamic. “It fit in with the neighborhood and it contributed to the neighborhood,” John says. “That’s what we try to achieve with every project.” THE CONSTRUCTION SOURCE AMERICA
An even more recent project that Palette is particularly proud of is 23 Grand Street in SoHo. That didn’t take place in a historic district, but it did involve modernizing an existing building – specifically, it involved adding to a ground floor restaurant and renovating a 23-storey, 100-room hotel. The original building at that address was actually not that old, relatively – it had only been there somewhere between 15 and 20 years, but it had been designed in a somewhat brutalist style. About three years ago, it was purchased by a developer who previously had been mostly active in the retail and commercial spaces, but who were interested in this opportunity to do hospitality. They wanted to rebrand the space and make it their own, and they brought in Palette to help. 23 Grand Street AUGUST 2022
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In extending the restaurant and renovating the hotel, Palette incorporated a lot more contemporary materials and they designed to a more modern hospitality style. The result, when contrasted with the “rough concrete” of the existing building, made for a “really nice, rich environment,” John says. “We think it came out very nicely,” he says. “We were very happy, and the owner was very happy. Everybody’s objectives were achieved.” Moving forward, the goal of Palette is to continue achieving thosedual objectives. Theywant to keep designing buildings that contribute to the communities they are located in, and they want to continue satisfying clients by helping them meet their commercial needs and goals. In addition, the team at Palette is interested in doing more affordable housing. They have already dipped their toes into that sector – their first affordable housing project started construction in the summer – but they want to dive in more fully, as they see that as one of the best ways to make a positive impact in their communities. “There’s a lot of need for affordable housing in the city,” Jeff says. “Especially after going through what we all went through in the last couple years. We think it’s more important than ever that people are able to find stable housing situations. We’re interested in working with the city and with local developers to help make that happen.” Palette also wants to do more work in the education sector, particularly in early education. Much like affordable housing, they already have some projects in the works, but they hope to do a lot more in the near future. “We want to be able to contribute more to New York City and to the communities our projects are in,” John concludes. “We want to find more ways to make a difference with our architecture.” AUGUST 2022
For more on Palette Architecture, their approach, their staff, and their past projects – and to get in touch with John, Jeff and their team – visit https://palettearch.com/ THE CONSTRUCTION SOURCE AMERICA
Ares Strategic Mining is the owner and operator of Utah’s ‘Lost Sheep Mine,’ the only permitted and producing fluorspar mine in the United States. Since acquiring the mine, they have invested in the upgrade of facilities, expanded mine designs, and designed a new high capacity plant to significantly increase production and optimize output. Bringingback a lost industry
At thesame time, theyhavebeen acquiring new professional personnel, developing strategic partnerships, and building a global customer base. Their vision is to create a large mining operation, to become an integral part of the country’s supply chain, and to maintain a thriving, consistent, and healthy business through the next several decades. CEO James Walker is a veteran of the global mining industry – over the course of his career, he has earned extensive experience in engineering and project management, particularly within mining engineering, mechanical engineering, construction, manufacturing, engineering design, infrastructure, safety management, and nuclear engineering. His professional experience includes designing nuclear reactors, submarines, chemical plants, factories, mine processing facilities, infrastructure, automotive machinery, and testing rigs. Years ago, while working on other mining projects with other companies, James formed Ares Strategic Mining with the goal of finding a project that was close to cash-flow, and that wouldn’t require huge capital requirements or lengthy permitting times. “In about a years’ time, I must have gone through about 100 different projects,” James AUGUST 2022 “We’re always looking for ways to contribute to the communities that we work in,” says Jeff Wandersman. “We’re interested in doing work that makes a difference in people’s lives.”
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AUGUST 2022 recalls, “until I stumbled upon this fluorspar mining operation in Utah.” After coming across the Lost Sheep Mine, James reached out to Raul Sanabria, a contact he had met on a previous project who happened to be an expert in fluorspar. Together, they travelled to Utah to scope it out, “and we found fluorspar everywhere,” James says. “It was all over the entiremountain range.” James was drawn to the opportunity by the volume of fluorspar, but also by the quality of the ore. He remembers reading the reports and noting that the project was hardly developed but they were already mining. “That’s kind of unusual,” he explains. “When that happens, it usually means the ore is so rich that you could take it out of the ground and basically put it in a bag and sell it. That was the impression I got, and when we went down there, that was exactly what we found. The owners were essentially driving a loader into the base of a wall, taking the ore out, putting it into a bag, and the brokers were coming and picking it up. There was hardly any refinery process at all.” “At that point, I saw the possibilities from an engineering point of view,” he continues. “It was so obviously scalable. And because it was such a clean ore, I knew the capital costs wouldn’t be very significant. We wouldn’t need hugely complex processing facilities. We wouldn’t need smelters. We just needed a basic flotation plant on site, and that was it.” The fact that it was fluorspar was also appealing, as fluorspar is on the United States’ list of “critical minerals.” Previously, it was actually the only nonmetallic mineral that was 100 per cent imported. Because of that, a company producing it domestically would qualify for a lot of government assistance when it came to financing. Finally, on top of the other
THE CONSTRUCTION SOURCE AMERICA draws, the Lost Sheep Mine was already permitted. That meant that Ares would be able to purchase it and “just start mining.” It ticked all the boxes James was looking for. AresStrategicMiningcompleted the acquisition of Lost Sheep Mine went public in February, 2020. From there, they raised a few million dollars in order to conduct some geological work and upgrade the mine’s infrastructure. They figured out where they should be drilling, they came up with expanded mine designs, and they worked out how to optimize the mine’s output. Today, the Lost Sheep Mine is “fully designed-out,” James says. Development was slowed as a result of COVID, but has picked up steam in recent months. They are now just waiting on the delivery of a few select items, after which they will commence their full-scale mining operation.
Currently, Ares Strategic Mining employs a team of roughly 15 engineers and geologists, plus a corporate team of directors and managers. According to James, every member of the team, both on site and in the office, is “very excited about the project.” “Everyone’s pretty happy about where we are because it doesn’t look like a project that can really fail at this point,” he says. “We’ve done all the hard legwork. We’ve done all the hard design work. We’ve proven our case economically.” James says their team has also invested a lot of time and energy into the project, and they are excited to see their investment pay dividends. James cites Raul Sanabria as someone whose efforts have been particularly instrumental. He was the fluorspar expert that James initially visited Utah with. After acquiring the mine, A happy team AUGUST 2022
Ares Strategic Mining offered him a board position – he’s now a director with the company as well as the VP of Exploration. He did all the preliminary geophysical work on the project and ran the drill programs. “Raul’s contribution has been very, very significant,” James says. “He’s been involved from the start and we’ve been lucky to have him. James also credits Karl Marek, another director with the company. He has been involved in the public markets for over 20 years, and was a key part of the company that previously owned the Lost Sheep Mine. Ares Strategic Mining brought him on board after buying that company out, and he’s brought a lot of contacts and local knowledge to the table. “Karl has helped us enormously with the acquisition, he’s helped with raising finances, and he’s connected us with the right people,” James says. “He’s been instrumental.” Early on, Ares also brought on board Keith Minty to coordinate the project development, construction, commissioning and operations of the mine. Keith is a veteran of the mining industry – he has extensive experience leading the construction and commissioning of nine mines worldwide, including the largest open pit palladium operation in North America. He’s also a past recipient of The Northern Miner’s ‘Mining Man of the Year’ award. THE CONSTRUCTION SOURCE AMERICA
“We approached Keith at the start, and thankfullyhesaidyes,” James says. “He brought with him all of his mining engineers, all of his labourers, all of his contacts – he brought in some excellent, extremely qualified people. He’s been an invaluable asset during the development stages of the project.” The company’s CFO, Viktoriya Griffin, has also been a key contributor, James says. She’s a dedicated and knowledgeable Chartered Accountant with over a decade of experience in her field. She started with the company doing their books part time, but her contribution was so important that they soon asked her to join in a larger role. “All the grants, all the financials – she’s put it all together,” James says. “She’s been fantastic. She’s probably going to bring in more money into the project than me eventually. She deserves a lot of thanks.” James is also thankful for the company’s investors, with whom he has built very strong personal relationships: “The vast majority have been incredibly supportive,” he says. “They’ve had a lot of faith in the long-term strength of the project. Even when we’ve bumped into regulation holdups, they’ve been incredibly patient and allowed us to work through them.” “Normally in a junior mining company, when you experience hold-ups, it creates a lot of nervousness,” he continues. “But we put out a lot of news, we kept everyone updated, I made myself available to answer questions – and we received a lot of loyalty in return. People trusted that once we got things going the stock would really jump, and that did happen.” AUGUST 2022
Ares Strategic Mining is currently excited and eager for the Lost Sheep Mine to go into production. Their vision for that project is bold – they believe they can grow to a point where they can supply between 15 to 20 per cent of US requirements from that mine alone. At the same time, the vision doesn’t end there. According to James, their team has already started talking about expansion. “We want to try to open up more fluorspar mines across the US,” he says. “We’ve already started scoping other sites. We don’t want to say where they are just yet, but there are a couple of other sites where we have all the data.” “That’s exciting,” he adds, “because there are no other fluorspar producers in the United States. There’s no domestic competition. No one A great position THE CONSTRUCTION SOURCE AMERICA
08.21 Educational content from our network of inhouse and external third party experts. An extensive network of experienced individuals who provide direct insights on projects and market environments Unparalleled access to investable early stage companies - before they become public Education Network Opportunity DAVE HODGE President PH: 604.681.1568 dhodge@zimtu.com SCOTT ROSE VP Corporate Communications PH: 604.681.1568 srose@zimtu.com ALICIA VOSS Investor Relations Associate PH: 604.681.1568 avoss@zimtu.com Shares Outstanding Options Warrants Fully Diluted Market Cap 52 Week High-Low 16,106,483 2,760,000 712,000 19,578,483 $4.0M $0.30-$ 0.11 Share Information TSXV: ZC | FSE: ZCT1 GET IN EARLY WITH ZIMTU CAPITAL Zimtu Capital Corp. is a TSX Venture listed company focused on creating value through the development of public companies and opportunities in the resource & technology sectors. (604) 681-1568 *As of August 2021 Do you invest in the Stock Market? We'll connect you with exclusive opportunities www.zimtu.com putting in for permits for these mines; no one is trying to run drill programs. We’re the only ones. We’re bringing back a lost industry.” The company is also eager to expand globally. In Western Canada, for instance, they have already bought what they believe is the largest deposit of fluorspar in the country. When that starts producing, it won’t be the early producing fluorspar mine in all of Canada, but it will be one of two. From there, they believe they will be in a “great position” to supply all over East Asia. “Our prospects on that front look great,” James says. AUGUST 2022
For the latest on Ares Strategic Mining and the Lost Sheep Mine – and to get in touch with James and his team – visit https://www.aresmining.com/ THE CONSTRUCTION SOURCE AMERICA
Royal Oak Developers is a Georgia-based full-service development company driven by an internal team of talented professionals dedicated to the development of high-quality and meaningful real estate. Since forming about five years ago, they have delivered an impressive portfolio of residential, commercial, and mixed-use projects to the Atlanta market. THE RIGHT PROJECTS
Sergey Krayev is one of the founders and managing partners behind Royal Oak. Though he’s been very successful in the industry to date, he didn’t get his start in real estate – he’s a telecom engineer by trade, and he comes from a deep background in technology. Over the course of his corporate career, he worked for BellSouth, AT&T, Kimberly-Clark, and Mizuno, where his role eventuallymoved from technology into marketing and product development. Eventually, he became part of a successful tech start-up, which was quickly sold. Equipped with the funds from that sale, he first turned his attention to real estate. “I looked around and asked myself ‘What should I do next?’” Sergey recalls. “Real estate seemed like a good opportunity.” Sergey teamed up with Yona Mizrahi, who came from a background in single-family homes, and they started by focused on large REIT projects. A few years in, they decided to get into construction, and Royal Oak Developers was born. Their goal was to do multi-family projects, but take “a singlefamily approach” – meaning, they wanted to devote the same level of care and attention to detail to their condos and apartments as they would a single family custom home. AUGUST 2022 “I looked around and asked myself ‘What should I do next?’” Sergey recalls. “Real estate seemed like a good opportunity.”
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AUGUST 2022 Today, Royal Oak does both single and multi-family projects. They have a variety of individual spec homes in development across Georgia, and they have one multi-family project completed and several more in the pipeline. On the single-family side, Sergey believes that Royal Oak is set apart by the quality and uniqueness of their designs. He says that when he’s talking to prospective buyers, he often hears the same thing: “The feedback we’re getting is ‘We see so many houses and they all look the same, and then we come to see your house and it’s a breath of fresh air.’” Sergey credits that point of difference to his and Yona’s backgrounds in Europe: “We bring that modern European feel to every house,” he says. “Open floor plans, high ceilings, big windows, and modern light fixtures – those are the hallmarks of a Royal Oak home.” “With our designs, we also try to create the maximum amount of useful space for the homebuyers,” he adds. “That’s our strategy. We want to make sure we don’t waste an inch.” The exteriors of Royal Oak homes are also appealing, Sergey says. They feature modern architectural flair, but they still blend within the existing character of the neighborhoods they are located in. He believes that’s also a point of difference. On the multi-family side, meanwhile, Royal Oak hasn’t completed many projects yet, but their goal is to replicate the same points of difference. They want to deliver exceptional design, they want to maximize space for the buyers, and they want to create buildings that enhance the neighborhoods where they are located. The difference, however, is that Royal Oak want to achieve a more affordable price point with their multifamily developments. A lot
THE CONSTRUCTION SOURCE AMERICA of their single-family homes are valued in the millions and generally inaccessible to firsttime homebuyers and young professionals – with their multi-family projects, those are the demographics they are targeting. “Our goal is to still deliver those premium finishes, but in a smaller package,” Sergey says. “We want to make them accessible to first time buyers – to people who are spending less than $400,000, or even less than $300,000 in some cases.” In the multi-family sector, Royal Oak also aims to deliver the same calibre of workmanship and quality. They achieve that through multiple layers of quality control, through the use of technology – the founders come from a technology background, after all – and through hands-on supervision. “Yona and I are very close to the grassroots of every project,” Sergey says. “We’re very much involved. We make regular site visits. We’re there multiple times a week. We invest a lot of our own time in each project to make sure everything meets our standards.” They also invest in high quality subcontractors and trades, as they believe a project is only as good as the people working on it. Over the years, they have gone through “many, many” trades in their search to find a team they trust, but now that they have found that team, they no longer shop around. They use the same high-quality people on every project, no matter the size or scope. “The same people that are working onmillion dollar homes for us are also working on our smaller footprint condominium projects,” Sergey says. “So the level of quality and attention to detail is very much the same.” In the early years, when Sergey and Yona were narrowing down the trades that they trusted, Sergey explains that they weren’t just looking for high quality workmanship. Workmanship was important, of course, but just as important was the level of accountability. “In the construction space, no matter your level of professionalism or level of experience, at some point you will make a mistake,” he says. “Mistakes happen. The human element is always there. Obviously, the fewer mistakes the better, but what’s important is how you handle it when things go wrong.” “The reason that we work with the people that we do is that when there’s a problem, they come back and fix it,” he adds. “Our subcontractors stand behind their work and their product. If there’s an issue, they’ll address it in a timely matter.”
Royal Oak’s first multi-family project is called ‘MorelandWalk,’ a new condominium complex in the heart of East Atlanta. Located at 1155 Custer Avenue SE, MorelandWalk comprises 30 condominium units, all one or two-bedrooms, with prices that started in the low $200,000’s. The vision for the project was to provide the community with living spaces that were not only “new and beautifully designed,” but affordable as well. Moreland Walk utilizes a modern design that is the first of its kind in the area. It features an open floor plan and 10-foot high ceilings, which work to create a spacious and inviting living area. Each unit also includes an accessible outdoor balcony, with tall windows and terrace doors to let in plenty of natural light. The kitchens are “breathable,” with quartz Moreland Walk AUGUST 2022
countertops that wrap around into a large island with seating. There are also generous walkin closets and a spa-inspired bathroom. Other features include: German kitchen cabinets, floating vanities, LED lighting, and tank-less water heaters – “all elements that you’d find in a $2 or $3 million home,” Sergey says. The majority of Moreland Walk units were quickly presold, and as they have released more units closer to completion, those have sold out too. Sergey credits that commercial response to the quality of the units, but also the quality of the area. Located in the center of East Atlanta, Moreland Walk is surroundedbymany of the city’s most popular neighborhoods and community attractions. East Atlanta Village and Grant Park are down the road, and the Beltline’s Southside Trail is within walking distance. “Five years ago, the area was very different,” Sergey says, “but it’s transitioned into something very hip and very modern. A lot of young professionals are attracted to this area. They like the proximity to the park, they like the proximity to the airport, they like the closeness to the city downtown. If somebody works in town, this neighborhood makes perfect sense.” Moreland Walk also hosts its own amenities, Sergey adds. The building supports a grill and picnic area, lush landscaping in a communal green space, and a dog walk – all designed to foster THE CONSTRUCTION SOURCE AMERICA
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