BusinessTN

Tennessee may be known for its greenery, highlighted by lush midstate hills and eastern Smoky Mountains, but few would consider it on the national forefront of environmentally progressive construction. An ongoing effort by Philadelphia-based Mantria Corp. (MC) may improve that modest "green status."

Last May, Mantria Communities LP acquired for $17.5 million 5,500 acres in sparsely populated Sequatchie County, which borders Hamilton County (Chattanooga). Mantria Place, now in the master planning stage, is expected to be the U.S.'s first "carbon-negative" community.

Mike Leonard, Middle Tennessee Chapter chairman of the U.S. Green Building Council, says that while some commercial campuses (Google Inc.'s, for example) are attempting carbon-neutral status, a carbon-negative Mantria Place would be cutting-edge.

"I am not aware of any other communities with this financial model," says Leonard, an architect who serves as director of greenSTUDIO, a division of Nashville-based Hastings Architecture Associates. "This is an aggressive approach but one that will no doubt appeal to eco-minded buyers."

With a seven-year buildout and an estimated $228 million price tag, Mantria Place could redefine green residential construction, according to Troy Wragg, MC chairman and CEO.

"People want to live environmentally friendly, yet they don't want it in their face," Wragg says. "[Our challenge] will be making sure that the community is sustainable while at the same time livable and comfortable to your everyday American or national."

Wragg's strategy for achieving carbon-negative status is fourfold. First, each Mantria Place household will pay an annual carbon tax fixed at $50 per ton. (MC estimates 40 emitted carbon tons, or $2,000, per household.)

Secondly, Mantria will work to reduce development emissions by 25% by using materials such as organic concrete and employing biodiesel-powered bulldozers.

Thirdly, Mantria Place will implement a carbon diversion system to create 100% green power by converting waste into surplus energy to be sold back to local power companies. Wragg says the carbon diversion system will cost about $3.3 million to operate its first full year of use. Mantria Corp. anticipates a break-even occurring within 18 months of the system's operation and a steady annual profit margin of more than 50% from that point, Wragg adds.

Lastly, Mantria Place will invest in carbon credits focused on reforestation.

"We buy carbon credits based on reforestation as we, by developing, are deforesting," Wragg says. "So by purchasing these credits, we are in fact offsetting our footprint."

Mantria Place, which will offer two golf courses, two lakes/marinas and more than 2,000 acres of green space, is targeting baby boomers. Full-scale work will not begin until 2010, Wragg says, adding that the economy should have, by then, improved enough to insure success.

Nick Loeb, managing partner with Florida-based climate change consulting and project management firm Carbon Solutions America, is not familiar with Mantria Place, specifically. However, Loeb says he is skeptical about all carbon-neutral and carbon-negative claims.

"Nothing is carbon-free," Loeb says. "What in the community is carbon neutral? What about the guy who manages the security booth and drives to and from work? Do you include the styrofoam cup he bought with his coffee? Mantria Corp. needs to define their boundaries."

Loeb says he commends any project that results in reducing greenhouse gases, but adds, "I would rather somebody reduce carbon by 5% and tell you what was reduced than claim to have a carbon-negative project without explaining to what scope."

Despite the skeptics, Mantria Corp. has aligned itself with some heavyweight Tennessee-based partners, including TVA and the Nashville offices of LandDesign Inc. and BDY Natural Sciences Consultants. The Chattanooga-based Maclellan Foundation, a $400 million dollar not-for-profit organization, has provided a project loan.

Now all that remains is making it work.