Leander Springs

EXECUTIVE SUMMARY

1. Introduction and Matter of Ho Roadmap

As a federally designated “EB-5” regional center, Great Southwest Regional Center, LLC (“GSRC” or the “Regional Center”), has sponsored a new capital investment project called “Leander Springs” (the “Project”) to build phase 1 of a mixed-use development including apartments and parking. The future phases are not a part of the Project budget described in the business plan, but will include retail and a lagoon. iLand Development Group (the “Developer”) along with the Regional Center, will oversee all aspects of the project, including development and construction. The details of the project’s overview, costs, timeline, returns and exit strategy for the investors are included in this plan. The City of Leander, Williamson County, Travis County and surrounding counties would benefit from this initiative via job creation, tax generation, and other positive economic impacts. The details of the project’s goals, objectives, and return to the investors are included in this plan.

The project will use a hybrid debt and equity model to fund the project. The project will require an estimated total investment amount of $164,293,732, which is expected to consist of $85,093,732 in construction loan/debt and up to $79.2 Million in EB-5 capital

The purpose of this business plan for the Project is to support both individual EB-5 investors’ I-526E petitions and the filing of the I-956F, the Application for Approval of an Investment in a Commercial Enterprise. This project is a new job creating enterprise to be funded by the developer’s equity, a senior bank loan, and immigrant investors.

For the project, the Regional Center is looking to raise an amount of up to $79.2 million. This will require a job creation of 990 qualified jobs. According to the economic analysis report (referenced in this business plan) the project will create an estimated 1,063 jobs.

By recruiting selected immigrant investors, the Regional Center and Developer are well positioned to prove their ability to manage the capital invested at risk in accordance with regulations set by the USCIS and provide return on investments and permanent resident status and develop long-term relationships with the investors and their friends and families.

The arrangements for the offering to investors for the project are set out in the offering documents included in the (PPM, Subscription Agreement, & Limited Partnership Agreement) and are not recited in this business plan, which is focused on the structure and uses of the capital and the resulting job creation in the job creating enterprise, the Project.

The project business plan submitted with the I-956F & I-526E petitions is sufficient to establish EB-5 compliance pursuant to Interim Decision No. 3362, in the Matter of Ho (WAC 98 072 50493, July 31, 1998) and to the Reform and Integrity Act of 2022. According to Matter of Ho decision, the “comprehensive business plan” should demonstrate that “due to the nature and projected size of the new commercial enterprise, the need for not fewer than ten (10) qualifying employees will result, including approximate dates, within the two years subsequent to the filing of the I-526E, and when such employees will be hired. To be considered “comprehensive,” a business plan must be sufficiently detailed to permit the service to reasonably conclude that the enterprise has the potential to meet the job-creation requirements. In Matter of Ho, the Administrative Appeals Office held that a “comprehensive business plan, as contemplated by the regulations, should contain at a minimum, a description of the business, its products and/or services, and its objectives.”

In compliance with Matter of Ho & Reform and Integrity Act of 2022 guidelines, the project business plan includes the following:

• A description of the project, it’s products and/or services (section 2)
• A description of the EB-5 offering (section 5)
• Project development and construction information (section 6)
• Job creation and economic impact summary (included in section 1)
• An industry analysis (sections 7) and a market analysis along with a competitive analysis (section 8 and 9)
• The business’s operations and management (section 10)
• A marketing and sales plan (section 11)
• Financial forecast (section 15)
• Permits (section 16)

As such, the exhibits listed in section 18 of this business plan will establish that the job creating enterprise is currently under progress.

2. Regional Center Sponsorship

Great Southwest Regional Center, LLC has been designated by the United States Citizenship and Immigration Services (USCIS) as a “Regional Center” for participation in the EB-5 Immigrant Investor Pilot Program. The regional center was formed to create permanent jobs in Texas. Great Southwest Regional Center is staffed to supplement business development, marketing, and oversight of ongoing investment projects. Additional responsibilities will include, but are not limited to, maintaining current employment tracking statistics and other data generation as required by USCIS for the regional center pilot program.

More about the Regional Center is discussed in section 4. A Regional Center approval letter can be found in Exhibit A.

3. NCE and JCE

LSI 1, LLC is the “New Commercial Enterprise” (NCE) sponsored by the Regional Center for the purpose of this capital investment project. This business plan & I-956F filing is to reflect the Preferred Equity investment into the NCE. The regional center is offering a capital investment that seeks to comply with the requirements of the USCIS for the EB-5 Program. The NCE was formed as a limited partnership under the laws of the State of Texas. The NCE formation document can be found in Exhibit B.

Leander Springs, LLC is also the “Job Creating Enterprise” (JCE), which will ultimately use the $79.2 million in EB-5 capital on construction and development of the project. The JCE formation document can be found in Exhibit C.

4. Market Opportunity

Leander Springs, LLC is a job creation entity and is developing this Project in response to the underserved need in Leander for a large mixed-use development.  Leander, TX is consistently one of the fastest growing small cities in the US. The population is expected to double over the next 5 years, with 12% growth as of 2019 and a 124% growth between 2010-2019, making it the fastest growing city in the US.

5. Venture Overview

The Regional Center is well positioned to prove its ability to manage the capital invested at risk in accordance with regulations, set forth by the USCIS, and provide return on investments, permanent resident status and developing long-term relationships with the investors and their friends and families. Pursuant to the purposes of this business plan, the Regional Center seeks to raise $79.2 Million from 99 EB-5 investors to be advanced to the JCE for the project. The funds will be used in the completion of construction and development of the project. This requires the project to create at least 990 new EB-5 qualifying jobs. According to the economic analysis, the project is expected to create around 1,063 jobs.  The jobs will be derived from construction, property management, and operations.

7. Project Entities

Below are the main project entities:

8. Project Job Creation and Economic Impact Overview

The total EB-5 investment requires creation of 990 jobs. According to the econometric report by Travis D. James, it is estimated that the investment in the project has the potential to create a total of 1,063 jobs (353 direct jobs created, 710 indirect & induced jobs created). For this application, $117,097,533 in eligible costs were used to determine the allowable jobs impact, as well as $1,523,031 in income. All values are deflated to the appropriate RIMS II model year using the U.S. Producer Price Index published by the U.S. Bureau of Labor Statistics.

Information related to job creation and economic impact can be found below, and a job creation and comprehensive economic impact report can be found in Exhibit D.

The following information is excerpted from the Job Creation and Economic Impact Report submitted by Travis D. James:

• Project construction will last approximately 24 months but spans three calendar years.
• The aggregate employment impact of allowable construction-related spending and normal operations of the Project is 1,063 jobs.
• Direct jobs must account for at least 10 percent of total eligible jobs. Direct jobs represent 33.2 percent of all jobs for this Project.
• Up to 75 percent of the total eligible jobs can be attributed to indirect and induced construction, Indirect and inducted construction jobs represent 66.3 percent of all jobs for this Project.
• Direct construction jobs are divided by two since construction occurs relatively evenly over two years (approx. 24 to 26 months). This adjustment identifies the direct construction jobs that last at least two years without double counting the same job (ex. general laborer who is working onsite in Year 1 and Year 2).
• The job creation impact from the construction and operation of the Project is sufficient to meet the EB-5 investor jobs requirement of 990 jobs.

The regional center will increase Austin MSA labor income by $76.5 million. Regional demand for inputs and commodities will increase by $122.0 million for key indicators.

9. Project Highlights

• Project has full support and active engagement of the City management;
• Experienced team of developers with extensive success track record in real estate development, construction and asset management;
• Project has prime location in the City of Leander, that tops the U.S. Census list of fastest-growing large cities.