North Star Group, Inc.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com
Serenity Village at Palestine – Holistic
Community Development Project (Draft 2)
Serenity Village at Palestine is a proposed 120-home neighborhood in Palestine, Texas,
combining affordable high-performance housing with community gardens, education centers,
and smart infrastructure. The project is a public-private partnership model that prioritizes
financial viability and human-centered design, aiming to uplift residents through sustainable
living, food security, education, and ownership opportunities.
Executive Summary
Affordable, Sustainable Homes: 120 energy-efficient homes (~1,500 sq. ft. each)
constructed with Structural Insulated Panels (SIPs) for superior insulation and durability.
The target price of ~$250,000 per home balances quality and affordability, with potential
garages or carports included if budget permits. Homes are designed to achieve high
energy performance (low HERS scores), meaning significantly lower utility costs for
residents sips.premierbuildingsystems.com.
Integrated Food Security: A 4-acre teaching garden and community farm will provide
fresh produce, serve as a hands-on educational resource, and improve local food security.
By growing food on-site, residents gain access to healthy fruits and vegetables at little to
no cost – a proven way to combat “food desert” conditions and improve
nutrition publichealth.tulane.edu. The garden also offers vocational training in agriculture
and sustainability for all ages.
Serenity Village at Palestine, Texas
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Education & Empowerment: The project includes The Porchlight Learning Center, a
Montessori-inspired educational facility for children and community use. Montessori
methods have been shown to boost academic and social outcomes for children, helping
those from low-income backgrounds perform on par with their more affluent
peers frontiersin.org. In addition, a non-coercive adult literacy and learning program will
operate through the community center, offering voluntary classes, workshops, and clubs
to improve adult literacy and life skills in a joyful, engaging way. (Texas currently ranks
46th in adult literacy, with ~19% of adults lacking basic prose skills literacytexas.org, so this
is a critical need addressed in an inviting manner.)
Smart Energy Infrastructure: Serenity Village is planned as a “nearly self-reliant”
neighborhood with a solar-powered microgrid. Rooftop or community solar panels, on-site
battery storage, and a backup generator will ensure resilient power for residents. This
means essential systems stay on during grid outages – a valuable benefit in Texas, where
extreme weather has exposed grid vulnerabilities. Modern microgrids combining solar
and batteries can operate independently and keep critical services running during
outages bullardcenter.org. The smart energy system will reduce electricity bills and
provide emergency power, enhancing community resilience.
Digital Connectivity: To bridge the digital divide, the development will offer
community-wide Wi-Fi via line-of-sight antennas linking homes and common areas.
High-speed internet access will be available to all residents at low or no cost, ensuring
everyone can go online for job applications, telehealth, education, and communication.
(Today, about 22% of rural Americans lack access to baseline broadband service usda.gov
– Serenity Village aims to eliminate this barrier in our community.) Robust connectivity will
also support smart home features and security systems across the neighborhood.
Modular Design & Efficiency: The project’s construction approach is modular and
component-based, using factory-fabricated panels and modules to speed up building and
reduce waste. This method can accelerate construction by 20–50% and cut costs by up
to 20% compared to traditional building mckinsey.com. Resource-efficient design (efficient
water use, waste recycling during construction, etc.) will further contain costs and
minimize environmental impact. Homes will be arranged in a thoughtful site plan to
optimize land use, with shared green spaces and potential for future expansion.
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© North Star Group, Inc. 2025 All rights reserved.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com
Serenity Village at Palestine, Texas
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2
Phased Development & Resilience: Development will be carried out in phases to
manage costs and incorporate lessons learned. For example, Phase 1 might include the
first set of homes, the community center with the Porchlight Learning Center, and initial
garden plots – establishing the core of the village. Subsequent phases will add more
homes and amenities. Each phase is designed with resilience in mind: high wind-resistant
buildings (SIPs provide excellent structural strength against storms), backup power
systems, and drainage solutions (like rain gardens and a retention pond) to mitigate
flooding. This phased approach also allows engagement with residents and partners at
each step, ensuring the project stays aligned with community needs.
Equity-Based Ownership Model: Serenity Village is structured as an equity partnership
to keep it affordable and inclusive. In exchange for contributing the land, the City of
Palestine would hold an estimated 30–45% ownership stake in the development. This
means the city becomes a co-owner/investor rather than just a land donor, aligning the
project with public interests and allowing the community to share in long-term equity and
benefits. The remaining ownership would be held by the development partners and
potentially a community trust or cooperative. This model ensures that as the property
appreciates or generates income, the city (and by extension, the public) shares in that
value – a novel approach to public-private partnership in housing. It also reduces the
upfront financing burden, helping make the ~$250k home price point feasible by
offsetting land costs. Residents will have pathways to ownership as well: the plan may
include options for qualified residents to purchase their homes over time or gain equity
credits, ensuring they can build personal wealth and stability through homeownership. (A
detailed term sheet and financial model outlining these arrangements is being developed
in parallel and can be provided separately.)
In summary, Serenity Village at Palestine is a practical yet ambitious initiative to create a
sustainable, empowered community. By integrating efficient homes, renewable energy, food
production, education, and an innovative ownership structure, the project strives to deliver both
financial viability and social impact. Below is a full white paper detailing each aspect of the
project for review by contractors, city staff, and community stakeholders.
Introduction: A Vision for Sustainable Community Living
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© North Star Group, Inc. 2025 All rights reserved.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com
Serenity Village at Palestine, Texas
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Palestine, Texas faces a set of familiar challenges: pockets of poverty and food insecurity, gaps in
education and literacy, aging housing stock, and infrastructure that doesn’t always meet modern
needs. Serenity Village is conceived as a holistic solution – a new neighborhood that addresses
these challenges in an integrated way. The vision is to create more than just a housing
development; it’s to foster a thriving community where families can live affordably in efficient
homes, put healthy food on the table, gain new skills, and build a future together.
Key to this vision is partnership. Serenity Village is being developed by North Star Group, Inc. in
close collaboration with the City of Palestine and local community organizations. By combining
public support (like city-contributed land and alignment with city planning goals) with private
innovation and investment, the project is structured to be both impactful and financially sound.
The City’s stake in the project (modeled at roughly one-third ownership via the land contribution)
exemplifies this collaborative approach.
The development is planned for a suitable tract of land (to be confirmed with the city) where
approximately 120 homes can be built along with communal facilities and green space. The site
will be designed as a walkable village – imagine tree-lined streets, a central community hub,
gardens and play areas, and clusters of homes built with modern yet contextually appropriate
architecture. Each element of the plan – from construction methods to programs for residents –
has been chosen for its practicality and proven benefits. We are not introducing “gimmicks” or
untested ideas; rather, we’re integrating best practices from housing, sustainability, and education
into one neighborhood.
Community and Resilience by Design: Serenity Village emphasizes resilience at multiple levels.
Physically, the homes and infrastructure will withstand harsh weather and maintain essential
services during emergencies. Socially, the presence of educational resources, shared gardens,
and community spaces builds social resilience, strengthening ties among neighbors and
providing mutual support networks. Economically, the affordable home prices and local food
production help insulate residents from external shocks like rising utility costs or food prices.
Over time, we expect this model to “pay forward” as families in Serenity Village achieve
stability and growth, they contribute back to the local economy and community, creating a
positive ripple effect beyond the development’s boundaries.
Finally, Serenity Village is designed to be a replicable prototype. While this white paper focuses
on Palestine, TX, the principles and components can inform similar projects in other cities. By
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© North Star Group, Inc. 2025 All rights reserved.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com
Serenity Village at Palestine, Texas
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demonstrating success here, we aim to create a template for holistic community development
that can be tailored and scaled to address needs elsewhere.
(Note: Additional technical documents, design schematics, and prior draft reports related to
Serenity Village are available via the project’s document library at
http://modular.nsgia.com/library. Interested partners can find energy system diagrams,
component specifications, and detailed concept papers in that repository for further reference.)
High-Performance Homes: SIP Construction, Modular
Design, and Cost Efficiency
At the heart of Serenity Village are its homes. The plan calls for ~120 single-family or duplex
homes, averaging about 1,500 square feet, arranged in a neighborhood layout. These houses will
be constructed using Structural Insulated Panels (SIPs) – an innovative building material that
sandwiches a rigid foam insulation core between structural board (e.g., oriented strand board).
This construction method offers multiple advantages for both builders and residents:
Energy Efficiency: SIP homes have a very tight and well-insulated building envelope. In
practice, many SIP-built homes achieve Home Energy Rating System (HERS) scores of 50
or less, meaning they are at least 50% more energy-efficient than standard new
homes sips.premierbuildingsystems.com. For residents, this translates into lower heating
and cooling costs year-round, as less energy is required to keep the home comfortable.
High efficiency also contributes to environmental sustainability by reducing the
community’s carbon footprint. We anticipate Serenity Village homes will significantly
exceed baseline energy code requirements, approaching net-zero ready performance
with the help of solar panels. Each home will undergo energy rating testing to verify its
HERS performance, ensuring quality control and giving homeowners confidence in their
home’s efficiency.
Durability and Resilience: Beyond efficiency, SIPs provide strength and resilience. The
solid panel construction offers superior resistance to high winds and storms compared to
traditional stick-built houses. (For example, 4-inch SIP walls have withstood Category 5
hurricane conditions in tests sips.org.) This means our homes will not only save energy but
also stand strong in severe weather – an important consideration in East Texas where
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© North Star Group, Inc. 2025 All rights reserved.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com
Serenity Village at Palestine, Texas
______________________________________________
5
thunderstorms and the occasional tornado can occur. The roofs and walls are structurally
robust and well-insulated, providing shelter that is both safe and comfortable in extreme
heat or cold. Using SIPs also means less long-term maintenance, since the tight
construction can have fewer drafts, less mold potential, and no settling of insulation.
Speed and Cost of Construction: Serenity Village will leverage modular design
principles. SIPs are prefabricated in factories to precise dimensions and then assembled
on-site. This approach can significantly shorten the construction timeline – studies and
industry experience show modular construction techniques can cut building time by
20–50% mckinsey.com. Faster construction not only reduces labor costs but also means
families can move into their homes sooner. Additionally, factory fabrication greatly
reduces material waste (scrap wood, excess drywall, etc.), since components are cut
efficiently in a controlled environment and leftovers are often recycled. Traditional
construction can dump tons of waste material per house; in contrast, a modular approach
is much leaner and environmentally friendly mckinsey.com. These savings in time and
materials help us hit the target price of approximately $250,000 per home, even while
using high-quality materials. The cost target is roughly in line with the local market’s
median home price, ensuring these new houses are attainable for working families in
Palestine. The involvement of the city (through land equity) and potential use of favorable
financing (such as HUD-insured loans) further enable us to keep sale prices stable without
cutting corners on quality.
Home Design and Features: Each home will be designed with modern comfort and
resource efficiency in mind. Expect layouts that maximize usable space – e.g., open-plan
living/dining/kitchen areas, 3 bedrooms, 2 baths in a 1,500 sq ft footprint. Energy-efficient
appliances and LED lighting will be standard, as will water-saving plumbing fixtures. We
will explore including a garage or carport for each home, as personal vehicles are
important in this area. The decision on garages will depend on final budget allowances –
if costs come in under budget, attached single-car garages could be added; if not, homes
may have driveway parking or carports initially, with the option for owners to add garages
later. This flexible approach ensures we prioritize the core quality of the house itself and
the community features, while leaving room to enhance individual units if financially
feasible.
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© North Star Group, Inc. 2025 All rights reserved.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com
Serenity Village at Palestine, Texas
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6
Appearance and Layout: While the construction technology is advanced, the aesthetic
will respect the local context. Homes can be finished with attractive facades (siding, brick
accents, or other regionally appropriate materials) so that the neighborhood has a
welcoming, traditional feel rather than a “factory look.” SIPs as a method allows for design
versatility – from the outside, a SIP house can look like any style of home. We anticipate a
mix of single-story and possibly some two-story designs to create variety. Houses will be
oriented to take advantage of solar gain (for passive heating) and to create pleasant
streetscapes. By using a modular grid layout, we can efficiently plan utilities and roads
while also leaving generous open spaces for community use.
Overall, the housing component of Serenity Village is about providing quality without
extravagance. These will be homes that anyone would be proud to live in – safe, comfortable,
and efficient – but also attainable for middle-income families. By investing in better building
methods up front, we reduce ongoing costs for residents and ensure the longevity of the
community.
Sustainable Energy Systems: Solar Power, Storage, and
Backup for a Resilient Grid
One of the standout features of Serenity Village is its approach to energy. In addition to making
homes energy-efficient, we plan to generate and manage power at the community level for
reliability and sustainability. The goal is a smart microgrid serving the entire neighborhood:
Solar Photovoltaics (PV): We will install solar panels either on each home’s roof or in a
central community solar farm (or a combination of both). Given the ample Texas sun, solar
PV is a logical choice to provide clean electricity. If rooftop, each house might have a
several-kilowatt system integrated into its design (taking into account roof orientation and
shading). Alternatively, a larger ground-mounted array on community land (for example, at
the edge of the property or even above parking structures) could feed power to all
homes. Solar energy will significantly reduce the development’s reliance on the utility grid
during normal operations, lowering electric bills for residents and decreasing greenhouse
gas emissions. Net metering or similar arrangements with the local utility will be explored
so that excess power in the daytime can be fed back to the grid or credited, and power
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© North Star Group, Inc. 2025 All rights reserved.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com
Serenity Village at Palestine, Texas
______________________________________________
7
can be drawn at night as needed.
Battery Energy Storage: To make solar truly useful for resiliency, battery storage is
crucial. We plan to have a community-scale battery bank (or distributed batteries at each
home) that stores surplus solar energy generated in the daytime for use during evenings
or outages. This battery system allows the neighborhood to function as a microgrid – in
the event of a power failure on the main grid, the batteries can supply critical electricity to
homes for a period of time. Important devices like refrigerators, some lights, fans, and
device charging can continue even if the wider city loses power. The batteries also enable
maximizing solar usage (less solar energy wasted when production exceeds immediate
demand). We will size the battery capacity based on the number of homes and expected
critical loads – for example, aiming for each home to have, say, 8-12 hours of backup
power for essential needs. Advances in battery tech and declining costs (e.g., lithium-ion
or even emerging alternatives) make this a timely feature to include.
Backup Generator: For extended outages or during consecutive days of low solar
production (e.g., storms), a backup generator will provide an additional layer of energy
security. Likely using natural gas or propane (depending on infrastructure), a generator at
the community center or energy hub can kick in to recharge batteries and directly power
homes if needed. This ensures that even in worst-case scenarios, the community won’t be
left in the dark. The generator will be sized to cover at least critical circuits in all homes (or
at minimum, a central shelter location if truly large capacity for all homes is
cost-prohibitive). The combination of solar, batteries, and a generator effectively creates a
hybrid microgrid that is independent-capable. As noted in a recent overview of Texas grid
trends, microgrids that mix solar, storage, and generators are gaining traction as a way to
bolster reliability after events like Winter Storm Uri in 2021 highlighted
vulnerabilities bullardcenter.org. Serenity Village’s energy system is very much in line with
this emerging best practice for resilience.
Smart Grid Management: The entire setup will be managed by a control system that
optimizes when to draw from solar, charge or discharge batteries, and run the generator.
Residents won’t need to actively manage anything; it will be automated behind the
scenes. However, we will provide an “energy dashboard” for the community (possibly
accessible via a mobile app or at the community center) so residents can see how much
solar power is being produced, how full the batteries are, and how much grid power is
________________________________________________
© North Star Group, Inc. 2025 All rights reserved.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com
Serenity Village at Palestine, Texas
______________________________________________
8
being used. This transparency can encourage energy-saving behavior (for example, if
people see the battery is low on a cloudy day, they might voluntarily reduce usage). Smart
meters at each home will track consumption and allow for fair allocation of energy
costs/savings. We will also explore demand response features – for instance, intelligently
cycling water heaters or HVAC units to flatten peak loads – which can further save money
and protect the grid.
Efficiency and HERS Ratings: It’s worth noting that because the homes are built to a high
efficiency standard (SIPs with low HERS scores), their baseline energy needs are much
lower than average. This makes the job of the solar+storage system easier. We’re
essentially combining a low-demand scenario (efficient homes) with a robust supply
(renewables + storage) – a synergy that maximizes resilience. Even modest solar arrays
on SIP homes can supply a large portion of their energy needs. Our aim is that each home
in Serenity Village could meet a substantial percentage of its annual energy use via
on-site generation. On pleasant days, the community might even be a net exporter of
green energy.
Environmental and Financial Impact: Embracing solar power will save residents money
in the long run, shielding them from rising electricity rates. Any power not produced
on-site will of course still come from the grid, but over a year the utility bills should be
much lower than a conventional home’s. We intend to model the expected savings and
incorporate those into our affordability calculations for residents (a form of “energy
dividend” that effectively increases their disposable income). Environmentally, the
reduction in grid consumption means lower carbon emissions. The project aligns with
broader state and federal goals for clean energy adoption and could be a showcase for
how small communities can implement the latest energy technologies at scale. We will
seek out any available grants or incentives for solar installation, battery storage, and grid
modernization to support this aspect of the project – these external funds can help cover
upfront costs, since these systems, while cost-effective over time, do require investment.
In summary, the smart energy system in Serenity Village isn’t just about technology for its own
sake; it’s a practical measure to ensure that our residents have reliable, affordable power under
all conditions. By generating clean energy and storing it for when it’s needed, the community will
be more self-sufficient. This is both a quality-of-life benefit (no one wants to be without power in a
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© North Star Group, Inc. 2025 All rights reserved.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com
Serenity Village at Palestine, Texas
______________________________________________
9
Texas heat wave or winter cold snap) and a safety benefit. The community center could double as
a “resilience hub” – for example, in a regional outage, it could have power and serve as a place
where people can charge devices or store medicines that need refrigeration. Serenity Village’s
lights will stay on when others go off, which we believe is a strong selling point for both residents
and city officials prioritizing emergency preparedness.
Integrated Food Security: The 4-Acre Teaching Garden &
Community Farming
Food security is a cornerstone of Serenity Village’s community-centric design. Integrated food
security means the neighborhood itself helps provide for the nutritional needs of its residents,
reducing dependency on external food aid and improving diets. To that end, we have set aside
roughly 4 acres for a teaching garden and community farm as part of the site plan – a
substantial area where fruits, vegetables, and even small livestock or aquaculture could be
cultivated. Here’s how this component will work and why it’s so valuable:
Community Garden & Orchard: At the center of the green space will be a large
community garden divided into plots and functional areas. Portions of the garden will be
communal (tended jointly by residents, with harvests shared) and other portions can be
assigned to families or individuals who want to maintain their own garden beds. We
envision rows of seasonal vegetables (tomatoes, peppers, okra, greens, root crops), herb
gardens, possibly a pumpkin patch for fall harvest, and small fruit tree orchards (peach,
fig, plum – varieties that do well in East Texas). The mix of crops will be chosen based on
local climate, resident preference, and nutritional value. By having 4 acres, we have room
to experiment and diversify – ensuring something is producing in every season. The yield
from these gardens can significantly supplement residents’ grocery budgets. Studies have
shown that community gardening leads to greater intake of vegetables and improved diet
quality universityofcalifornia.edu. Residents who participate often double their vegetable
intake, reaching recommended daily servings by eating what they
grow universityofcalifornia.edu. In a community where healthy, affordable food options
might be limited, this is life-changing. The garden produce will be available to residents
for free or at a very low cost, which directly tackles hunger and poor nutrition. As Tulane
University’s public health review noted, those in “food deserts” benefit immensely from
access to fresh, local produce – often available with little or no financial
________________________________________________
© North Star Group, Inc. 2025 All rights reserved.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com
Serenity Village at Palestine, Texas
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10
burden publichealth.tulane.edu.
Teaching and Training: This is not just a garden, but a teaching garden. That means it will
be used as a hands-on classroom for both kids and adults to learn about agriculture,
ecology, and nutrition. The Porchlight Learning Center (discussed in the next section) can
integrate garden time into its curriculum – children might have a weekly session where
they plant seeds, compost, water plants, and watch the growth cycle, learning science
and responsibility in the process. We anticipate partnerships with local agricultural
extension offices or master gardener programs to provide workshops. Adults might join
classes on topics like “Backyard Gardening 101,” “Cooking from the Garden,” or even
advanced topics like permaculture design. The setting allows experiential learning:
residents can immediately apply skills in their own plot or volunteer area. Over time,
confident gardeners may emerge who can mentor others. The garden thus becomes a
venue for joyful learning and community engagement – furthering our theme of
non-coercive education, people will participate because it’s fun, social, and rewarding
(you literally reap what you sow!).
Infrastructure & Sustainability: The garden will be supported with proper infrastructure.
This includes a rainwater harvesting system (capturing rain from rooftops into cisterns) to
provide irrigation water. In fact, the overall site drainage plan is being designed to channel
stormwater into a central retention pond and edible rain gardens – landscaped areas that
soak up water and grow edible plants at the same time. This innovative approach means
our stormwater management doubles as food production and
landscaping file-8vc2hhfrvdzfqybp154ufg file-8vc2hhfrvdzfqybp154ufg. Raised beds, tool
sheds, composting stations, and perhaps a greenhouse or hoop house for year-round
growing are planned. The budget will allocate funds for initial soil improvement and
garden tools. We will likely have a part-time or volunteer garden coordinator (could be a
knowledgeable resident or a hired expert) to organize planting schedules, maintenance
days, and distribution of harvests. In later phases, if feasible, small-scale livestock (like a
chicken coop for eggs) or aquaculture (fish farming in the pond) could be introduced to
further enhance food resources. All of this will be done with community input and
according to local regulations, of course.
Economic and Social Benefits: Aside from nutrition, the garden can stimulate
micro-economies. Residents may choose to sell surplus produce at a local farmer’s market
________________________________________________
© North Star Group, Inc. 2025 All rights reserved.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com
Serenity Village at Palestine, Texas
______________________________________________
11
or an on-site farm stand, generating a bit of income. Alternatively, the harvest could
supply a community kitchen (if we have one as part of the community center) to prepare
communal meals or value-added products (jams, pickles, etc.). Engaging in these
activities teaches entrepreneurship and work skills. The act of gardening itself has proven
mental health benefits – stress reduction, physical activity, and a sense of purpose. We
anticipate that the garden will be a hub of interaction, where neighbors of different ages
and backgrounds work side by side. Such social cohesion can reduce isolation and foster
a supportive community network. Imagine weekend farmer’s markets or harvest festivals
in the garden – these can become annual traditions that put Serenity Village on the map
for positive reasons.
Food Security Impact: Ultimately, the measure of success will be that no family in
Serenity Village has to worry about where their next healthy meal will come from. By
design, everyone will have access to fresh produce either by growing it themselves or via
the community distribution. This is a stark contrast to many housing developments that
address shelter but not what happens beyond the front door. We recognize that hunger
and poor diet can undermine any other gains (educational, economic) a family makes. So,
by embedding food production into the community, we create a safety net that fills
pantries with nutritious food. It’s also a source of pride – producing food locally instills
independence. Residents can say they are not just consumers, but producers and
stewards of their own food system.
Serenity Village’s teaching garden is both a practical resource and a symbol of the project’s
ethos: nurturing growth. As the gardens flourish, so will the community’s health and spirit. This
piece of land will likely become one of the most cherished aspects of the village, a green
sanctuary that feeds the body and soul.
Education and Empowerment: The Porchlight Learning
Center and Adult Literacy Programs
Thriving communities require not just good homes and food, but also opportunities for learning
and personal growth. Serenity Village is committed to education across the lifespan – from young
children to adults. Two key programs anchor this commitment: The Porchlight Learning Center, a
________________________________________________
© North Star Group, Inc. 2025 All rights reserved.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com
Serenity Village at Palestine, Texas
______________________________________________
12
Montessori-inspired early childhood and education facility, and a comprehensive but
non-coercive adult literacy and community learning initiative. These components are designed
to work in harmony, uplifting residents through knowledge, skills, and shared culture.
The Porchlight Learning Center (Montessori-Inspired Education)
The Porchlight Learning Center will be a dedicated space within the community (likely part of the
community center or a standalone building nearby) focused on childrens education. The term
“Porchlight” evokes a warm, guiding light at the entrance of a home – symbolizing our aim to
illuminate young minds and welcome families into an environment of learning.
Montessori-Inspired Approach: We have chosen a Montessori-inspired model for the
early childhood program (and possibly elementary grades if expanded) because of its
proven effectiveness, especially in diverse communities. Montessori education
emphasizes self-directed activity, hands-on learning, and collaborative play. Classrooms
are typically multi-age, and children are given freedom within limits to choose their
activities and learn at their own pace with guidance from trained teachers. Research
indicates that Montessori methods can boost academic performance and social
development. In one study, Montessori preschoolers – including those from low-income
families – performed as well academically as their high-income peers by the end of the
program frontiersin.org. In fact, the approach significantly helped erase the typical
income-based achievement gap frontiersin.org. This means that implementing Montessori
could be especially impactful in Palestine, where some children might be starting
kindergarten already behind due to fewer educational resources at home. Montessori
also cultivates qualities like independence, curiosity, and respect, which align with the
community values we want to promote.
Facilities and Curriculum: The Porchlight center will have child-friendly, safe spaces with
Montessori materials (e.g., practical life stations, sensory activities, language and math
manipulatives) carefully arranged for discovery. We anticipate an initial program for ages
3-6 (preschool and kindergarten) with the possibility to extend into early elementary ages
if demand and resources allow. The daily routine might include free-choice work periods,
group circle times, and integration with the outdoors – children will certainly utilize the
teaching garden to learn about nature, planting, and observing life cycles. A small library
and reading nook will encourage early literacy (perhaps supported by the adult literacy
________________________________________________
© North Star Group, Inc. 2025 All rights reserved.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com
Serenity Village at Palestine, Texas
______________________________________________
13
program volunteers, creating intergenerational reading circles). We will pursue
partnerships with organizations like Montessori schools or associations in Texas for
teacher training and curriculum advice. If Montessori-certified teachers are not
immediately available, we will still incorporate as many Montessori principles as possible
(child-centered learning, experiential projects, etc.) into the curriculum with qualified early
childhood educators.
Access and Impact: The learning center is intended to serve the families of Serenity
Village first and foremost, possibly with additional spots open to the surrounding
community if capacity allows. We understand that childcare and early education can be
expensive, so we plan to operate Porchlight with subsidized funding (through the
development’s budget, grants, or state programs) to keep it either free or very low-cost
for resident families. This relieves a big burden on parents and guardians, enabling them
to work or pursue their own education while their kids are in a safe learning environment.
Long-term, the presence of quality early education on-site will contribute to breaking the
cycle of poverty: children entering grade school better prepared, with a love of learning
and strong foundational skills, are more likely to succeed academically and later in the
workforce. The positive ripple effect of a strong start in education cannot be overstated –
it can set the trajectory for a child’s life. We want every child in Serenity Village to have
that strong start. In addition, the center can host after-school tutoring, homework clubs, or
enrichment activities for older kids (leveraging the space in the afternoons/evenings),
ensuring learning support continues beyond preschool.
Adult Literacy and Lifelong Learning
Education at Serenity Village doesn’t stop with children. A core philosophy of the project is
lifelong learning – encouraging and enabling adults to improve their skills, knowledge, and
literacy in a way that is empowering and enjoyable. We use the term “non-coercive” to emphasize
that these programs are completely voluntary and driven by the community’s interests, not
remedial classes forced on anyone. Adults often have understandable pride and busy lives, so
our approach is to make learning opportunities accessible, relevant, and fun rather than a
mandatory “school-like” feel.
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Need for Adult Literacy: The impetus for focusing on adult literacy comes from sobering
statistics. Texas ranks near the bottom in adult education attainment – 16% of Texas adults
over 25 lack even a high school diploma literacytexas.org. Additionally, about 19% of
Texas adults have low literacy skills (defined as lacking basic prose
literacy) literacytexas.org. In other words, nearly 1 in 5 adults may struggle with reading a
news article or filling out a job application. In Palestine and Anderson County, local data
likely mirror these challenges. Low literacy can severely limit employment opportunities
and the ability to navigate daily tasks (like understanding medical instructions or financial
documents). By addressing adult literacy, we address a root cause of poverty and
empower residents in a fundamental way. However, we recognize adults are not kids –
they have different motivations and constraints. That’s why our program is designed to
meet people where they are.
Program Design: The adult education programming will be coordinated out of the
community center (possibly sharing space with Porchlight during off-hours or using a
dedicated classroom/computer lab). Key offerings may include: Adult Basic Education
(reading, writing, math for those who want to improve foundational skills), GED
preparation for those who didn’t finish high school, ESL classes if we have non-native
English speakers in the community, and digital literacy workshops (how to use
computers, internet, basic office software, etc.). Importantly, these will not feel like
compulsory classes. We’ll likely start by hosting casual “coffee and conversation”
meet-ups, or fun themed workshops (like “learn to write your family story” or “budgeting
101”), to gauge interest and build trust. We might employ a drop-in tutoring model where
volunteers or instructors are available certain hours to help adults with whatever they
need – be it reading through their mail, studying for a driver’s license test, or practicing
English. By offering help on-demand and respecting confidentiality, we reduce the stigma
sometimes associated with adult learning.
Joyful and Community-Driven: We call it joyful learning because we want to tap into
hobbies and interests. For instance, if there are residents who love music, we might have
a songwriting club that indirectly bolsters writing skills; or a book club (maybe starting with
easy-to-read novels or audiobooks) that builds reading comprehension in a social setting.
We can organize game nights (Scrabble, anyone?) or family literacy nights where parents
and kids learn together (which has the bonus of parents then reading more to their
children, reinforcing the literacy of both generations). Another idea is leveraging
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19901 Quail Circle
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Serenity Village at Palestine, Texas
______________________________________________
15
technology: since the whole community will have Wi-Fi, we can set up a few communal
tablets or laptops with educational apps and let adults explore learning apps at their own
pace. Some might prefer structured courses (and we’ll have those opportunities, possibly
partnering with the local community college or library system to bring in instructors), while
others prefer learning by doing projects. We remain flexible and open to feedback to
shape the programming.
Outreach and Incentives: To encourage participation, we will ensure scheduling is
convenient – perhaps evening classes after work hours, or combining with childcare (e.g.,
offering a “parents’ class” while kids are in an activity). We might also implement a
mentorship system, where those who advance in their learning become peer tutors for
their neighbors. Building a culture where it’s normal for adults to be students too is the
ultimate goal. Success could be measured not just in GEDs earned (though we’d love to
see many) but also in day-to-day outcomes: a resident confidently reading a book for the
first time, someone getting a better job after improving their computer skills, or even just
the spark of self-esteem that comes from mastering a new skill. We will celebrate these
wins in the community, perhaps with ceremonies or certificates that honor the effort
(again, only for those who are comfortable – it’s not meant to embarrass anyone not
participating).
Community Engagement and Services: Beyond formal literacy, the community center will
host other engagement activities. This can include health and wellness workshops
(partnering with local healthcare providers for things like diabetes education or vaccine
drives), financial literacy classes (budgeting, credit repair, first-time homebuyer education
which ties into the ownership aspect of our project), and civic engagement meetings
(ensuring residents know their voices matter in city issues). By having such events on-site,
we make it easier for families to attend and benefit. The non-coercive philosophy means
residents will identify their own goals and interests, and the development team will help
facilitate resources to meet them. Over time, we anticipate the community will essentially
run many of these programs itself – e.g., a residents’ committee might form to schedule
classes or invite guest speakers. Joyful learning is contagious; once people catch on that
this is a supportive, enriching environment (not remedial “back to school” punishment), we
expect participation to grow organically.
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19901 Quail Circle
Fairhope AL 36532
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Serenity Village at Palestine, Texas
______________________________________________
16
In conclusion, the educational initiatives at Serenity Village – from the littlest toddlers to elders –
are about unlocking potential. By lighting the porchlight of knowledge, we guide individuals and
families toward a brighter future. These efforts complement the physical aspects of the project:
where we build houses of SIPs and solar panels, we’re also building human capital and
confidence. A child who attends Porchlight and an adult who learns to read better both carry
something invaluable: hope and capability. The return on investment for these educational
components, in terms of improved livelihoods and community well-being, could be immense and
lasting.
Digital Connectivity: Community Wi-Fi Network for All
Residents
In the modern world, internet connectivity is nearly as essential as utilities like electricity or water,
especially for education, employment, and accessing services. Recognizing this, Serenity Village
will be equipped with a community-wide Wi-Fi network that ensures every resident has reliable
high-speed internet access. This digital infrastructure is a critical layer of inclusion – it prevents
the emergence of a digital divide within our community and empowers residents to take full
advantage of online opportunities.
Community Wi-Fi Overview: We plan to set up a network of line-of-sight antennas and
access points throughout the neighborhood to blanket the area with Wi-Fi coverage.
Essentially, the development will have its own private internet system: a high-bandwidth
connection coming into a central antenna (or fiber line), which then distributes signal
wirelessly to all homes via repeaters on rooftops or poles. Line-of-sight antennas mean
that as long as there is a clear visual path between transmitter and receiver (which we
ensure in the design), a strong signal can be delivered over hundreds of meters with
minimal loss. This approach is commonly used to extend internet in campus-like settings
or rural communities where laying cable to each home is expensive. Each house might
have a small antenna/receiver (for example, on the roof or an exterior wall) that picks up
the signal and feeds it to a Wi-Fi router inside, providing normal wireless internet indoors.
Alternatively, we could deploy a mesh Wi-Fi system, where numerous nodes create a
seamless network. The technical specifics will be determined with a networking
contractor, but the end result is the same: every household will have broadband internet
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Serenity Village at Palestine, Texas
______________________________________________
17
available.
Access and Cost: Importantly, this Wi-Fi will be low-cost or free for residents. We
anticipate including basic internet service as a provided amenity of living in Serenity
Village (covered by either a small HOA-like fee or subsidized through the project’s
operating budget). No family should have to forego internet due to cost. Today, nearly
24% of rural Americans say that access to high-speed internet is a major problem in their
area pewresearch.org – either it’s not available or not affordable. We intend to eliminate
both issues: the network will be available in this location and accessible to everyone. The
speed target is at least the FCC standard (25 Mbps down/3 Mbps up), though we will aim
higher (ideally 100+ Mbps down) so multiple people in a household can stream, work,
study simultaneously. The backhaul (main connection) might be via a local ISP fiber line or
fixed wireless link from downtown; we will negotiate the best solution. Even if an external
ISP provides the main line, the cost per unit will be low when shared across 120 homes.
And because the development is new, we can integrate conduits and mount points for
this system during construction efficiently.
Uses and Benefits: Having community Wi-Fi unlocks countless benefits:
Education & Work: Children can do online homework and research at home
without struggling with slow connections or limited data plans. Adults can take
online courses, search and apply for jobs, or even work remotely if opportunities
arise. In the adult literacy program, we can incorporate online learning tools
knowing everyone can access them. If the last couple of years have taught us
anything (with pandemic shifts), it’s that robust internet at home is critical for
continuity of learning and work.
Telehealth and Services: Residents will be able to attend telehealth appointments
(consulting doctors via video) from the privacy of their home, which is a big plus in
rural healthcare access. They can also use online services for things like banking,
government services, and shopping, which is especially useful if transportation is a
challenge. Essentially, connectivity brings services to them, mitigating the distance
from larger urban centers.
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Community Platform: We can set up a community portal or app accessible on the
network – for instance, a message board or announcement page for Serenity
Village, so that even those not on commercial internet can get news (like
community meeting notices, maintenance schedules, etc.). We could also
implement smart community features: for example, a security camera network at
entry points, or smart sensors for street lighting and water usage, all tied into the
Wi-Fi network for data. The earlier technical documents outline ideas like
occupant dashboards and IoT integration, which a unified network would
support file-8vc2hhfrvdzfqybp154ufg file-8vc2hhfrvdzfqybp154ufg. While we’ll keep
things simple initially, the infrastructure allows future expansion into being a true
smart village.
Digital Literacy Support: As part of our training, we’ll teach residents how to use
the internet safely and effectively (many may be newcomers to having reliable
internet). Basic digital literacy classes will cover things like using email, accessing
virtual library resources, or protecting oneself from scams. This ensures that the
availability of internet translates to actual empowerment, not frustration or
vulnerability. We can also deploy content filters or parental controls at the network
level if desired by the community to protect kids from inappropriate content –
those details can be community-governed.
Technical Management and Sustainability: We will likely engage a professional service
to set up the network and possibly to maintain it long-term. This could be through a local
telecom partner or an innovative rural broadband provider. The hardware needed
(routers, antennas) will be budgeted for in the infrastructure costs. Ongoing costs include
the ISP bandwidth and maintenance – which, again, when spread per unit, is quite
manageable (and could potentially be offset by seeking FCC or USDA rural broadband
grants). One scenario is to have a small monthly technology fee per household that is far
lower than a typical internet bill – this goes into a fund to pay the ISP and upkeep.
Another scenario: the project’s operating pro forma absorbs it, considering the social
benefit analogous to maintaining a park or gym facility. We will choose the approach that
ensures reliability; residents should be able to count on this service just like electricity or
water.
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Serenity Village at Palestine, Texas
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In a broader sense, providing community Wi-Fi makes Serenity Village future-proof. As
technology evolves, we have the digital backbone in place to adopt new innovations – whether
that’s smart home devices for elderly assistance, e-learning platforms, or other community-wide
applications. In summary, no resident will be left offline. By guaranteeing internet access, we
open the door for our community members to engage with the wider world, seize new
opportunities, and stay connected to information and each other. This is yet another way Serenity
Village invests in the human-centered design – recognizing that human needs today include
connectivity as much as concrete and mortar.
Phased Development Plan and Project Implementation
Executing a project as comprehensive as Serenity Village requires careful planning and staging.
We propose a phased development approach that allows incremental growth, continuous
learning, and manageable investment steps. Each phase will deliver functional pieces of the
community, bringing immediate benefits, while setting the stage for the next phase. Below we
outline the anticipated phasing and key implementation considerations:
Phase 1: Core Infrastructure and Pilot Homes – In the initial phase, we will focus on
building the critical infrastructure and a subset of homes to establish proof of concept.
This includes:
Site Prep and Utilities: Grading the site, laying water/sewer lines, electrical
distribution, and roadways for at least the first section of the neighborhood. This
foundational work will be designed to accommodate later phases easily (e.g.,
utility stubs for future expansion). We will also install the main elements of the
energy microgrid in this phase – the solar array (or first batch of rooftop panels),
battery storage system, and backup generator – so that the first residents
immediately experience the benefits of renewable energy and backup power.
Community Center and Porchlight Learning Center: Constructing the community
hub early is a priority, because it will serve as the operational base for many
programs. By Phase 1 end, we plan to have the community center building ready,
housing The Porchlight Learning Center, a multipurpose space (for gatherings,
classes, events), and possibly the management office or maintenance workshop.
The teaching garden area will be prepared and initial planting can begin in this
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19901 Quail Circle
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Serenity Village at Palestine, Texas
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20
phase (even if it’s modest at first). Early activation of the garden and learning
center signals the community-focused nature of the project and provides
amenities to the first residents right away.
Initial Homes (e.g., 20–30 units): We will construct a first batch of homes,
perhaps along one street or cluster. These homes will allow us to refine
construction processes (since using SIPs and modular methods at scale may have
a learning curve with local contractors) and demonstrate the housing product to
stakeholders (city officials, prospective residents, financiers). Early families or
tenants could move in, and their feedback will be invaluable. If any design
adjustments or additional features are needed, it’s easier to incorporate those in
subsequent phases. This “pilot” group of homes will also let us test the
functionality of the energy system and community Wi-Fi under real conditions,
making sure everything works as intended before wider rollout.
City and Public Engagement: As Phase 1 concludes, we would likely hold a
showcase event or open house to demonstrate the results – think of it as cutting
the ribbon on the first leg of Serenity Village. This helps maintain transparency and
excitement, attracting interest for Phase 2 (both from potential residents and
additional funding partners if needed).
Phase 2: Expansion of Housing and Amenities – With lessons learned and systems in
place, Phase 2 would involve building a larger number of homes (say the next 40–50
units). Concurrently, we could add secondary amenities such as:
Parks and Recreation: Developing playgrounds, walking trails, or a sports court in
the community open spaces. Also, completing any remaining landscaping and
streetscaping that might have been deferred.
Commercial or Cooperative Enterprises (Optional): If part of the plan, Phase 2
might introduce small commercial spaces or cooperative businesses run by
residents – for example, a community-owned café, a weekly farmer’s market area,
or workshop space for local artisans. These aren’t core requirements but could
evolve based on community interest.
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Serenity Village at Palestine, Texas
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Continued Program Build-out: By now, the Porchlight Learning Center should be
in full swing, and the adult programs ramped up. We’d evaluate participation rates
and outcomes from Phase 1 and possibly scale up staffing or resources for these
programs as the population grows. For instance, if the adult literacy tutoring had
10 regular participants in Phase 1, by Phase 2 with more residents we might
formalize it into a small “Serenity Learning Academy” with a paid coordinator if
justified.
Resilience Features: One aspect of resilience is community self-governance and
preparedness. By Phase 2, we will help residents establish a neighborhood
association or cooperative board. This group can begin to take on some
decision-making (with support from the developer and city). They can form
committees for things like community garden management, safety and emergency
response planning, social events, etc. Encouraging this resident leadership early
sets the tone for long-term success and empowerment. The association will also
be a structure through which the City’s ownership stake interfaces with the
community (for example, city representatives might sit on the board or have
periodic meetings with it, depending on the model).
Phase 3: Project Build-out to 120 Homes – The final phase would complete the
remaining housing units and any outstanding components of the master plan. By this
stage, Serenity Village would be a well-established community:
All homes are built and occupied, the entire garden and green space network is
flourishing, and the infrastructure (energy, internet, etc.) is fully scaled.
We will finalize the ownership model in this phase. If the plan involves eventually
converting some rental units to ownership (like a rent-to-own scheme or selling
homes to residents), Phase 3 is when criteria and processes are put in place.
Alternatively, if it remains a rental community with city equity, then we ensure the
structure for long-term management and profit-sharing is locked in. The city’s
30–45% stake will be formalized through legal agreements, and mechanisms for
the city to receive returns (or reinvest them in community services) will be
operational. The parallel financial model being developed will guide these
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decisions (and, as noted, is available as a separate document).
Evaluation and Reporting: As we near project completion, we will measure
outcomes against our goals. This includes energy performance data (are we
hitting the HERS and solar generation targets?), participation metrics in the garden
and education programs, and qualitative feedback on resident satisfaction. These
metrics are not just for internal assessment but can be reported to funding
partners, the city council, and potential replicators of the model. Essentially, we’ll
compile a report or even a small documentary of Serenity Village’s development,
which serves as both a transparency tool and a blueprint for others.
Timeline: While exact timing depends on financing and construction efficiency, we
estimate roughly:
Phase 1: 12-18 months (including planning approvals and infrastructure build).
Phase 2: another 12 months.
Phase 3: an additional 12 months. In total, approximately a 3 to 4 year timeline
from breaking ground to full completion. If demand for housing is very strong and
resources allow, phases could overlap or accelerate. Conversely, if adjustments
are needed, we can pause between phases without jeopardizing what’s already
built (since each phase delivers a self-sufficient module of the community).
Risk Mitigation: Phased development helps mitigate risks: market risk (we won’t
oversupply housing units if demand needs time to catch up), construction risk (we can
adapt methods after the first phase if needed), and financial risk (initial investment is
smaller and the success can attract additional funding for subsequent phases).
Importantly, we have designed Phase 1 such that even if – in a worst case – only Phase 1
were built, it would still be a functional community slice (homes with a community center
and garden). Of course, the intention is to complete all phases, but this approach ensures
viability at each step.
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In summary, the development phasing is about smart execution and continuous improvement. We
build momentum as we build homes. By Phase 3, Serenity Village will stand as a resilient, vibrant
community. The phased approach also fosters trust – showing the city and partners that we
deliver on promises incrementally, which can ease concerns and build support as we go.
Financial Model & Ownership Structure: Affordability, Equity,
and City Partnership
From the outset, Serenity Village has been structured not just as a construction project, but as an
innovative ownership and financing model that blends public and private interests. The goal is
to create housing that is financially viable to develop, affordable for residents to live in, and
sustainable to operate – all while providing a return (both social and modest financial) to
stakeholders, including the City of Palestine. In this section, we outline the key elements of the
financial and ownership plan, emphasizing the equity-based approach and city partnership.
Housing Affordability and Pricing Targets: Each home is targeted to be delivered at
roughly $250,000 sale price (for a ~1,500 sq ft unit). This price point is intentional – it is
near the median home price in the region, meaning these new homes will be accessible
to middle-income buyers (e.g., teachers, healthcare workers, civil servants, etc.) and even
some moderate-income families with the help of standard mortgages. For context, the
average home value in Palestine is around $180k according to recent Zillow
data zillow.com, but that includes older housing stock. New construction usually carries a
premium; however, by capping at $250k we ensure we’re not far out of reach. Moreover,
a brand-new high-efficiency home means lower monthly costs (utilities, maintenance),
which effectively increases affordability. We anticipate many residents will finance their
homes with FHA or similar mortgages, where at $250k the payments would be on par
with or slightly above local rent for a 3-bedroom apartment, making ownership
achievable.
Equity-Based Development (City’s 30–45% Stake): A distinguishing feature is the
proposal that the City of Palestine contribute the land for the project (and possibly some
infrastructure support) in exchange for an equity stake in the development entity. This
stake is modeled at about 30–45% ownership. In practical terms, if a piece of land valued
(for example) at $2 million is provided, and if total project cost is say $20 million, the city’s
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contribution is 10% of cost. However, the city stake is proposed to be higher (30–45%) to
reflect not just the land value, but the strategic value of city participation and possibly
foregone taxes or incentives. This is akin to the city investing into the project and
becoming a co-owner/shareholder. How does this benefit all parties?
For the City: The city gains a significant ownership share in a major housing
development without spending cash (just leveraging an asset it already has –
land). This means the city will have partial control or oversight in the project’s
direction, ensuring public interests (like keeping units affordable or prioritizing
local residents) are upheld. Financially, the city stands to gain a share of any
project surplus or appreciation. For instance, if homes are sold, the city might get
a percentage of profits or if units are rented, a share of rental income. This creates
a revenue stream that can be funneled back into community services or even help
fund future housing initiatives. It’s a model that moves beyond typical incentives
(like tax breaks with no direct return) to one where the city is a partner and
investor.
For Developers/Investors: By having the city provide land (and possibly expedite
permits or infrastructure), the upfront costs are reduced, and the project’s
loan-to-cost ratio improves. It might allow securing a HUD 221(d)(4) construction
loan or other financing more easily since there’s significant “equity” on the table
from the start (even if in-kind). The city’s stake, while giving them returns, also
means the project doesn’t need to raise that portion of equity from other investors
who would also want returns. So effectively, it can lower the required returns or
allow more patient capital, making the whole financial equation work with
affordable sale prices. The developer (North Star Group, Inc., in this case) still
retains a majority (or at least controlling) share if city stays at ~30-45%, allowing us
to manage construction and execution efficiently, but we engage the city as a true
partner at the table.
For Residents/Public: When the city co-owns housing, there’s a built-in safeguard
against purely profit-driven decisions. The presence of a public stake often
ensures longer-term affordability covenants or reinvestment of proceeds in the
community. For example, the city could agree that any dividends it receives from
the project go into an affordable housing fund or maintenance reserves for
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Serenity Village’s common areas, etc. Also, if the land is contributed to the project,
we could consider a mechanism like a community land trust arrangement: the
land stays under city/ trust ownership and only the homes are sold to residents,
thereby keeping land cost out of the home price and ensuring perpetual
affordability (because whenever a home is resold, it comes with conditions or
shared equity that keep it from skyrocketing in price). These models have been
used in various places to great effect. In essence, the equity-based model aligns
everyone’s incentives: success is shared. The city isn’t just a regulator or
bystander; it shares the risk and reward, which fosters mutual accountability and
cooperation.
Ownership for Residents: We have options regarding whether Serenity Village homes are
sold to individual owners or retained as rentals with some form of eventual ownership.
The current plan leans towards homeownership for residents, as building personal equity
is a key to financial stability. We anticipate selling homes to qualified buyers (with perhaps
some preference given to local workers or those who meet certain income criteria to
ensure we serve the target population). There may also be a portion of units retained as
rental (for example, a few units for very low-income families who cannot obtain a
mortgage; these could be managed in partnership with a housing authority or nonprofit).
Each sold home would have standard property deeds, but if the city retains land
ownership, the sale would be structured as a ground lease or similar shared equity
arrangement. The homeowner might lease the lot (at a very nominal rate) and own the
house. If they sell, the ground lease might stipulate sale price limits or give the city the
first option to buy the house back – strategies to prevent speculative flipping and keep
the community stable. We will refine this plan with legal counsel and in dialogue with the
city to strike the right balance between homeowner freedom and community interest.
Financing and Term Sheet: The financing of the development (detailed in a separate term
sheet document) will likely combine a construction loan (possibly through HUD’s FHA
221(d)(4) program, which offers favorable long-term financing for multifamily housing), plus
any available grants or subordinate financing (such as HUD HOME funds, state grants, or
philanthropic investment for the educational components). The term sheet identifies a
loan amount, other funding sources, and projected costs. For instance, a preliminary term
sheet might show a total development cost around $20 million, funded by a ~$16.3 million
loan, ~$2.4 million in other sources (like land equity or grants), and the rest in deferred
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fees file-cg5tbumg1xsctzhbfrzlvg file-cg5tbumg1xsctzhbfrzlvg. These figures are subject to
revision in the final financial model, but they give a sense that the project is underpinned
by realistic numbers. With efficient SIP construction and the modular approach, we have
confidence in hitting our cost targets (the term sheet shows hard costs of about $95k per
unit file-cg5tbumg1xsctzhbfrzlvg, which aligns with our plan when scaled up). The financial
model also considers operational costs and revenue: on-going income (if any units are
rented or if an HOA is collected) versus expenses (maintenance of common areas,
running the community center, etc.). The integrated design (solar power, efficient systems)
should keep operating costs low, which in turn means lower HOA fees or maintenance
costs for residents, again supporting affordability.
Long-Term Management: Once built out, Serenity Village will need management of
common elements (the microgrid, the Wi-Fi network, the community facilities). Part of the
ownership structure might include establishing a Homeowners’ Association (HOA) or a
cooperative that takes on these duties, possibly contracting a property management firm
for day-to-day operations. With the city as a part-owner, it might also play a role in
oversight or ensure that the management aligns with the community’s mission (for
example, an HOA could have board seats reserved for city appointees during some initial
period). The financial plan will ensure that sufficient reserves are set aside for major
replacements (roofs, battery replacements in ~10-15 years, etc.), so the community
remains sustainable without financial crises.
Exit Strategy and Flexibility: While the intention is to maintain Serenity Village as a
mixed-income, largely owner-occupied community indefinitely, the model has built-in
flexibility. If individual home sales prove slow, the units can be leased, generating cash
flow to service debt (given the HUD loan scenario, we are prepared for a rental model as
a fallback). The city’s equity stake does not necessarily mean the city has to stay
co-owner forever; there could be provisions where, after a certain period, the city’s share
can be bought out or converted (e.g., if the city wanted to divest and use funds
elsewhere, or conversely increase stake). But fundamentally, our expectation is the city
will remain involved for the long term because its participation is central to the identity of
the project as a public-private partnership.
________________________________________________
© North Star Group, Inc. 2025 All rights reserved.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com
Serenity Village at Palestine, Texas
______________________________________________
27
In summary, the financial and ownership structure of Serenity Village is crafted to ensure viability
and fairness. By mixing public equity (city land), private efficiency (innovative building and
financing), and owner-occupant pride, we aim to avoid pitfalls of purely market-driven
developments or purely public housing. Instead, this hybrid model could become a template:
municipalities investing land to create affordable, high-quality neighborhoods while retaining a
stake in the success. It’s ambitious but grounded in proven concepts – similar joint ventures have
been done on smaller scales (for example, some cities contribute land to Habitat for Humanity
builds, etc., although our scale and setup is more complex).
Finally, we reiterate that a detailed term sheet and pro-forma financial model accompanies this
white paper (provided separately). Those documents give numeric specifics for lenders and
financial stakeholders to chew on, while this narrative focuses on conceptual understanding.
Together, they show that Serenity Village is not just a utopian idea, but a project with a solid plan
behind it – a plan to be practical, ambitious, and respectful of both the bottom line and the
people it will serve.
Conclusion: A Practical and Ambitious Path Forward
Serenity Village at Palestine represents a new approach to community development in East Texas
– one that marries cutting-edge sustainable design with heartfelt investment in people. It is
practical in its use of proven building techniques and realistic financing, yet ambitious in the
breadth of issues it tackles: housing, energy, food, education, and economic opportunity all at
once. Throughout this white paper, we have outlined how each piece of the project comes
together to create a resilient, supportive neighborhood:
Efficient, resilient homes give families a strong foundation with lower bills and safer
shelter.
On-site solar power and internet connectivity ensure modern necessities are met reliably,
even in tough times.
Gardens and learning centers nourish both body and mind, breaking cycles of hunger and
low achievement.
________________________________________________
© North Star Group, Inc. 2025 All rights reserved.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com
Serenity Village at Palestine, Texas
______________________________________________
28
A phased plan and innovative partnership with the city ground the project in financial
reality while sharing the gains broadly.
The tone of Serenity Village is one of respect and empowerment. We respect the residents – by
offering them quality homes and voluntary programs rather than hand-outs with strings attached.
We respect the City of Palestine – by making it an equity partner, acknowledging that public
support is crucial and should be rewarded with a stake in the outcome. We respect our
construction and contractor partners – by designing a project that is buildable and
straightforward, without unnecessary complexity or costly gimmicks.
As we present this plan to a national general contractor and the City of Palestine, our ask is for
your partnership and expertise. Contractors will appreciate that SIPs and modular methods can
streamline construction; we invite your input on execution to hit cost and schedule targets. City
officials will note that this project aligns with public goals – improved housing stock, economic
development, and educational uplift – all while leveraging city resources in a smart way.
Community stakeholders (from schools to healthcare providers) can find points of collaboration,
be it running a workshop in the learning center or sponsoring a piece of the garden.
The next steps involve refining designs, securing formal commitments (for land, financing, and
participation), and gearing up for Phase 1 construction. We intend to work closely with city
planners to ensure zoning, permits, and infrastructure plans meet all codes and expectations. We
also will continue to engage residents of Palestine through town halls or surveys – after all, while
Serenity Village might start with 120 families, its ripples affect the whole city. We want broad
support and to make sure we integrate well with the surrounding community (for example,
coordinating on school capacity, traffic management on nearby roads, etc.).
Lastly, we have set up an online library of documents at modular.nsgia.com/library (the North
Star Groups repository) where interested parties can find supporting materials: earlier draft white
papers, technical schematics for the integrated energy system, and references to case studies
that inspired our approach. This transparency in planning is deliberate – we welcome informed
feedback and we want to demonstrate that our proposals are backed by research and successful
precedents. (For convenience, we have not included the full term sheet or pro-forma
spreadsheets in this narrative, but those are available as separate attachments and can be
reviewed in detail alongside this white paper.)
________________________________________________
© North Star Group, Inc. 2025 All rights reserved.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com
Serenity Village at Palestine, Texas
______________________________________________
29
In conclusion, Serenity Village is more than a housing project; it’s a community investment
strategy. By bridging municipal leadership, private sector innovation, and the power of neighbors
helping neighbors, we believe Palestine, Texas can become a model for how small cities
revitalizing themselves for the 21st century. This white paper is our draft roadmap – with your
collaboration, we are ready to turn this vision into a thriving reality.
Together, let’s take this practical, ambitious path forward – building not just homes, but futures.
Serenity Village awaits, and we’re excited to embark on this journey with all of you.
Sources:
1. Premier SIPs – HERS Rating & Energy Efficiency: Many SIP-built homes achieve HERS
ratings of 50 or less, indicating they are at least 50% more energy-efficient than standard
new homes sips.premierbuildingsystems.com.
2. Frontiers in Psychology – Montessori Benefits: Montessori preschool education helped
children from low-income families perform on par academically with those from
high-income families, effectively narrowing the achievement gap frontiersin.org.
3. Tulane University School of Public Health – Community Garden Benefits: Residents in
food deserts benefit from access to community gardens, often obtaining fresh produce at
little or no cost, which increases their intake of fruits and
vegetables publichealth.tulane.edu.
4. University of California Agriculture – Urban Gardens & Nutrition: Community gardeners in
a study doubled their vegetable intake, reaching recommended daily servings after
growing their own food universityofcalifornia.edu.
5. Bullard Center (Director’s Picks) – Texas Microgrid Adoption: In Texas, interest in
microgrids (combining solar, batteries, etc.) is surging as a way to bolster reliability after
extreme weather events like the 2021 winter storm exposed grid
vulnerabilities bullardcenter.org.
________________________________________________
© North Star Group, Inc. 2025 All rights reserved.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com
Serenity Village at Palestine, Texas
______________________________________________
30
6. Pew Research Center – Rural Broadband Access: About 24% of rural Americans say
access to high-speed internet is a major problem in their community, highlighting the
need for improved broadband in rural areas pewresearch.org. (Additionally, 22% of rural
residents lack infrastructure for baseline broadband 25 Mbps service usda.gov.)
7. Literacy Texas – Adult Literacy in Texas: Texas ranks 46th out of 50 in adult literacy;
approximately 19% of Texas adults lack basic prose literacy skills, underlining the
importance of adult education initiatives literacytexas.org.
8. McKinsey & Company – Modular Construction Efficiency: Modular construction
techniques can reduce project timelines by 20–50% and costs by up to 20%, while also
cutting material waste through factory production mckinsey.com.
________________________________________________
© North Star Group, Inc. 2025 All rights reserved.
19901 Quail Circle
Fairhope AL 36532
701-770-9118
michaelh@nsgia.com