Six Peak IC — pre-portal recap (5 sessions)

• Combined recap of 5 prior IC sessions (Apr 20 – May 5, 2026).
• Each section below is one meeting; action items are pooled in the next card. --- ### Steyn Group - Six Peak Meeting in LV Office 2026-05-05 12:14:59 — May 5, 2026 The meeting reviewed a newly built, company-wide financial model and a prototype portal generated with Claude to surface real-time projections, integrated historicals, and scenario analyses.
• The team discussed the portal's technical capabilities, including generating branded HTML and full-stack deployments, creating infrastructure on Render/Cloudflare, and ongoing integration work with Andreessen; participants emphasized that outputs require careful validation and minimal monthly curation once live.
• The group walked through consolidated projections that assume closing three HVN projects, clarified terminology (free cash flow defined as cash after debt payments), and confirmed debt calculations include interest and amortization.
• They examined LIHTC market dynamics—reduced tax credit demand, lower corporate tax rates, and increased supply—concluding LIHTC will be selectively useful but not a scalable near-term revenue engine.
• Deal-level items included deferred developer fees on Francis and how post-model cash flows appear in projection columns.
• Evaluating revenue strategy, the team agreed development profits are a long-term cash play and too slow to fund operations now.
• They landed on expanding construction work as the primary near-term path, targeting roughly $90–$100 million annually, with HVN expected to contribute about half and a plan to broaden asset classes to attract funding and sustain the target. --- ### LV Construction AI discussion — May 5, 2026 The meeting reviewed current construction and compliance workflows and demonstrated an early-stage AI-backed platform for automating pay applications, contracts, compliance, RFIs, submittals, and schedules.
• Attendees examined a regulatory agreement with a unit-count discrepancy and then focused on the team's operational efforts to map and prioritize workflows for progressive automation.
• Jonah presented a five-workflow mapping (pay applications, subcontracts, RFIs/submittals, change requests/orders/PCOs, and related schedules), an "AI automation score" (volume, frequency, error cost, data availability, technical complexity), and a backend ingestion system designed to pull siloed sources into structured outputs.
• Pay applications were highlighted as high-priority: monthly cadence, high volume, dependency on Yardi data, and a major risk around conditional lien releases; current payment methods are transitioning from 100% checks toward ACH with ~70% of subcontractors on file for ACH.
• The team demoed a "mission control" dashboard that aggregates portfolio and project views, an 18–24 month GMP schedule with three-week look-ahead generation, and detailed contract and compliance features.
• OCR and model inference (Gemini 1.5 Flash) parse documents (W-9s, licenses, insurance), populate a compliance dashboard, gate invoice submission on expired licenses, and extract SOV lines mapping to Yardi cost codes with confidence flags for human review.
• Files remain in Box with bi-directional read/write for SOC 2 and redundancy; the backend currently runs on a SQL-like demo DB with options to migrate to AWS Bedrock or GCP.
• Integration gaps and constraints were discussed: Yardi's limited native data scope and unclear API capabilities prevent full cloud integration today, so Power Automate was proposed as an interim desktop-scripted upload path.
• Current workarounds include hard-coded imports and CSV transfers; automation can reduce manual monthly tagging and paperwork but requires human-in-the-loop checks (e.g., Grady reviewing final payouts).
• Lien-release automation and marketplace pay-app features remain longer-term roadmap items.
• Strategic and resourcing trade-offs were debated: continue incremental internal development to capture operational savings, or create a tech-focused spinout/product to accelerate engineering and monetize dataset—both options carry execution risk.
• Participants emphasized validating value by proving one workflow at scale, translating domain knowledge for engineers, and measuring payback before major investment.
• Open issues include resolving the regulatory document typo, securing reliable Yardi integration, automating lien-release handling, and deciding resourcing and commercialization strategy. --- ### Uplifters 2026-05-05 16:11:10 — May 5, 2026 The meeting reviewed a proposal for Uplifters Foundation to raise municipal-style tax-exempt bond capital under C3 status to finance acquisition, entitlement, construction, leasing, and disposition of rebuilt single-family homes in the Palisades and Altadena.
• The structure uses the foundation to provide loans to Sixpeak, which will form LLCs to acquire lots, hire third-party design-build firms, deliver homes, lease to displaced families for a minimum term, and offer purchase options before market sale.
• Regulatory and financing details: C3 nonprofit status was obtained in nine weeks last July.
• A City Council resolution stating the foundation lessens community burden is required to enable TEFRA-style public hearing and bond issuance through a state issuer (e.g., CalPFA); Tracy Park (CD11) is set to introduce the resolution and the City Housing Authority still needs to sign off.
• Jefferies (Alan Jaffe, Chris Knopf) is advising and structuring the deal as a private placement limited to ~35 investors.
• Bonds will be repaid from project cashflows and secured by real estate; investors may misinterpret the bonds as municipally guaranteed.
• Scope, timeline, and economics: The program targets about 30 homes in the Palisades and 35 in Altadena using a ten-street buy-box covering ~750 single-family parcels.
• Current lot prices range roughly $950k–$2M versus pre-fire values of $2.2M–$4M.
• The fund aims for $200M but can pilot with smaller raises; a friends-and-family soft circle is ~ $22M.
• The operating timetable is a five-year program split into three 18-month phases: acquisition, construction, and disposition, with expected construction fees and most Sixpeak fees concentrated mid-2027 to mid-2029.
• Typical acquisition-to-finished-house pacing was estimated at 18 months, with a possible 12-month fast-path build.
• Operations and risk: Sixpeak will act as a fee-for-service developer/operator with no completion or capital risk; construction will be executed by established third-party design-build firms to standardize components and capture procurement savings.
• Key operational needs include acquisition capability, selection of design-build firms, and hiring project managers.
• Permitting has been expedited but remains variable—RTI submittal times lengthened from ~60 to ~120 days.
• Noted risks include slow LA Housing Department sign-off, election-season delays, investor misconceptions about bond guarantees, and fundraising difficulty.
• Financial flows and community impact: Bonds are intended to be repaid from project cashflows; surplus after repayment is earmarked for parks, schools, and community nonprofits rather than investor distributions.
• The program contemplates issuing bonds in tranches as capital is raised and running follow-on TEFRA processes for subsequent funds if successful. --- ### Six Peak IC Weekly Meeting — Apr 27, 2026 The meeting reviewed final signatures, outstanding legal items on the Francis project and MRK, and coordinated plans for an in-person working week in Los Angeles.
• The team confirmed signing logistics and attendance, noted Anna Polk will likely sign remotely, and that Chris will execute operating documents with a notary.
• Patro summarized the financial structure as an approximately $800,000 option plus shared due diligence and future spend assumptions, and confirmed no further questions on those terms.
• Legal priorities include resolving a final GC contract clause and advancing the MRKJV review when internal counsel is available.
• Timing and travel logistics were discussed in detail: the group agreed on a target closing around June 3 with an outside drop-dead near May 23, and planned deliverable timing for draft materials to be available midweek in Los Angeles.
• Site-visit options near LAX were weighed against limited benefit; a Friday site visit by Tom was retained while others deprioritized it.
• The meeting closed with confirmation that Ant must sign the third document and provide feedback on circulated materials, and with assignments for breakfast and vehicle logistics and outreach about licensing and fire-inspector concerns. --- ### Six Peak IC Weekly Meeting — Apr 20, 2026 The meeting reviewed circulated legal agreements and detailed financing mechanics for a troubled LIHTC/market-rate transaction, focusing on definitions, repayment mechanics, fee bases, and co-investment options.
• The team corrected drafting errors and agreed on language clarifications, retained "best efforts" phrasing while asking Jasmine and others to review Bob’s proposed defined terms, and resolved that guarantee cost-of-capital is a flat 15% per the term sheet.
• Default loan interest will accrue at the greater of the SPV preferred return (15%) or prime plus 5%, capped at the legal maximum, and co-investment will be an option for Grady, Kruger, and Little Hill rather than an obligation.
• Discussion clarified treatment of converted versus non-converted pre-development capital: non-converted principal returned at LP recapitalization is repaid immediately while accrued interest on that returned principal becomes a priority inside the promote at exit and stops compounding after placement; converted capital remaining in the project continues to compound.
• The group reviewed deal economics: a $1.5M preferred equity at 15%, a 2% completion-guarantee fee split between Six Peak and Stain, a 10% promote, a $120,000 accounting/advisory fee, a $4.0M liquidity facility matching the Genesis loan, and Stain’s 1% guarantee fee plus a 3% liquidity fee; participants concluded the land value must be near zero for common equity to be attractive, explaining the LP’s reluctance and the roughly 50/50 odds of closing.

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  Ross Ross will cancel the Steel River meeting in Fort Hedlund
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  Participant 1 and Andreessen Participant 1 and Andreessen will integrate the existing financials into the portal
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  Participant 1 Participant 1 will curate and update the portal on a monthly basis
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  Unassigned The team will close the three HVN projects referenced as a contingency for the consolidated projection
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  Participant 1 Participant 1 will add a "financials as of" date or information cutoff to the live portal views
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  Rich Rich will submit his overdue payment request for carry/payment that is six months outstanding
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  Participant 1 Participant 1 will start the business development process with LV to pursue projects for 2027 and 2028
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  Participant 1 Participant 1 will rerun the financial models incorporating the LA County rent increases to quantify impact
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  Participant 1 Participant 1 will meet Tommy for lunch on Thursday to align pipelines and clarify what HVN is buying and where projects are going so the team can prepare
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  Jonah Jonah will join the Google Meet to share his screen with Chris Andresen
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  Jonah Jonah will show the backend ingestion system demo after the presentation
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  Meeting participants Meeting participants will review the other workflow captures on the workflow site in their spare time.
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  Jonah Jonah will review the three workflows flagged by the backend webhook and tackle the specified flawed skill within seven days after receiving the automated email.
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  Conference room participant Conference room participant will delete the current milestone document and generate it in the platform under a new name and format
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  Conference room participant Conference room participant will upload the W-9 to the platform for the contractor shown
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  Conference room participant Conference room participant will send a request email to subcontractors asking them to return all required documentation to the generic contract admin inbox
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  Conference room participant Conference room participant will configure Box to auto-sort incoming subcontractor emails into the documents repository for ingestion
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  Conference room participant Conference room participant will initiate the assembled contract for signature by entering the subcontractor name and email and using BoxSign
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  Conference room participant Conference room participant will research Power Automate guardrails and desktop automation options later this week to evaluate Yardi automation approaches
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  Grady Grady will perform a manual sanity check of the final payout before it is sent to the lender
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  Conference room participant Conference room participant will create a Box development platform that enables bi-directional read/write between Box and the demo platform.
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  Uplifters Foundation Uplifters Foundation will work with CalPFA to run the 10-day public hearing process after the council resolution is in place
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  Tracy Park Tracy Park will introduce the City Council resolution for Uplifters Foundation to be recognized as lessening community burden
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  Jefferies Jefferies will act as placement agent to raise the targeted $200 million fund for the Palisades program
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  Participant 1 Participant 1 will call Spencer to follow up on the city council resolution and get the paperwork moving
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  Participant 3 Participant 3 will build out the acquisition capability and recruit project managers and other hires to facilitate program execution
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  Sixpeak Sixpeak will interview and evaluate design-build firms to finalize delivery partners for the Palisades program
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  Participant 1 Participant 1 will continue fundraising and begin issuing bonds/tranches as capital is raised to start acquisitions before the full target is met
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  Steven Cooney Steven Cooney will send the signed document and message Anthony in Slack to request signature
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  Chris Aiello Chris Aiello will call Greg tomorrow to review GMP repricing and dial in the model
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  Jasmine Jasmine will review Bob Kennedy’s revised markups and confirm alignment with prior comments
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  Bob Kennedy Bob Kennedy will create clean copies of the revised documents and drop them into DocuSign
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  Steven Cooney Steven Cooney will send a calendar invite for the Tuesday breakfast location during the LA week
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  Chris Aiello Chris Aiello will deliver a draft set of meeting materials to the team by Wednesday
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  Tom Tom will visit and review the site on Friday as planned
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  Bob Kennedy Bob Kennedy will message Bryce and Tom to coordinate the site visit and raise concerns about the fire inspector and opening timeline
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  Steven Cooney Steven Cooney will secure a larger rental car for the trip
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  Ant Ant will sign the third document to enable closing of the transaction
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  Ant Ant will provide feedback on the set of documents that were sent through
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  Steven Cooney Steven Cooney will find and send a couple of breakfast spot options
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  Jasmine Jasmine will review the proposed definitions of "converted" and "non-converted" and provide revisions or agreement
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  Meeting participants Meeting participants will review Bob's notes and the revised agreements and submit comments on the wording, including the accrued return language
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  Bob Kennedy Bob Kennedy will update the draft to reflect a flat 15% cost-of-capital rate for guarantees per the agreed term sheet
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  Bob Kennedy Bob Kennedy will redraft the liquidity language to clarify how the applicable charge and minimum liquidity are calculated when co-GP guarantees are involved
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  Bob Kennedy Bob Kennedy will confirm and correct the signature block for Sting Capital GP Two to ensure Steven is properly represented as a manager if required
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  Steven Cooney Steven Cooney will forward the executive compensation plan and ensure Jasmine’s comments are included so the document is squared away
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  Meeting participant Meeting participant will provide a firm answer on their position by tomorrow.
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  Patrick Patrick will sync internally and then come back to the group by tomorrow.
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  Patrick Patrick will join the follow-up call with Ivan after the meeting.
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  Ivan Ivan will join the follow-up call with Patrick after the meeting.
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  Bob Kennedy Bob Kennedy will resolve the meeting-permissions issue for the next meeting.
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None.