I haven’t written anything about the Sand Hill Farm project in a while. Not because it’s stagnant, but more because of being too busy with it! The basic idea of a mixed use development hasn’t changed, but the path towards that continues to be a bit bumpy… Some of this has been here before, but for new readers, I’ll reiterate.
Last year, the Stellar competition was supposed to be our “in” for IHCDA Tax Credit Housing. When we didn’t get Stellar, I had multiple meetings with IHCDA, which indicated they were eager to help, but we just didn’t meet the threshold needed for a project. In discussions with Town leaders, we decided that the need was immediate and we needed to do something. The Town will be competing for Stellar again this year, but the changes to the program mean that the funding wouldn’t come through until 2019 and that’s too late.
I have gone through the process to have the eastern portion of the project annexed. I have been through the BZA and gotten a Special Use Variance allowing multifamily housing on the property. I have worked through MCEDC to secure Region Cities funding for the project. I have formed a new LLC (Culver Sand Hill Farm LLC) and transferred the eastern portion of the site to that entity. I’ve had multiple meetings with accountants and banks on how best to structure the project. From there, it became an issue of defining what the project would be.
I had discussions with the Town about doing a small townhome project, but the dollars didn’t work. It wouldn’t have been enough to justify the Regional Cities money and didn’t really fit what the goals were. We are now proceeding down the path to create a 24 unit apartment building. The sketches I have included here are the preliminaries for that. Final designs may change, but they’re what pricing is currently based on.
In order to meet the cost goals for the project, the Town has agreed to provide infrastructure. That’s allowing the rental rates to be reduced and hit some of our target audience. This will bring in water, sewer, streets, street lights, sidewalks, etc. to the project. They will also be providing a Tax Abatement for the project.
The public comment periods on this were a bit harsh. Always disheartening when you find out who your friends aren’t. Most of the vitriol was directed at the Town Council, but some got personal. That was despite the all of the employers we were targeting appearing and speaking for the project. This is somewhat baffling since affordable housing has been the top request in all the surveys from back to the Comprehensive Plan. It continues to be the top concern in the Stellar surveys. Since those meetings it has been nice that there have been a lot of people providing off the record, positive comments to me. It’s unfortunate that they were unable to speak publicly for fear the naysayers would shun them and their businesses.
Currently we’re working down two tracks in order to make this happen. The first is with the Town to find the most economical route to provide access to the current and future projects on the site. This is being handled by the Town’s engineer with input from the Town Manager, Utilities Superintendent and myself. The second is working to bring the building plan in at or under budget. That is proving to be challenging, but the budget has been set by what the banks will support and what has been approved for the Regional Cities money. Building a project with Market Rate construction costs, but renting it at below Market Rate is difficult. In typical fashion, the banks only want to lend money when you don’t need it.
The conversations with the Town and the buzz through the community has been fascinating. The need is there, but everyone has different ideas of how to address it. Several have mentioned the tiny house craze. Enough so that I will probably include that in my PUD as an option. It seems like a reasonable possibility. Mostly, I’m looking at how to most efficiently use the property. I think working on the density is probably the key. Tiny houses might be a component, but I’m still thinking multifamily and zero lot line construction may make more sense here.
More to come!
Tiny house image via Cass Community Social Services
The Sand Hill Farm project that has been discussed extensively here is part of the Stellar Communities application that Culver has submitted. I would assume most of you reading this are aware that Culver has made the first cut and is one of the three finalists for the 2016 award. As part of the public education process, an article appeared in the Pilot News (see right – The continuation of the article can be viewed here.) on yesterday. Jonathan Leist, Culver Town Manager, did a nice job describing what has brought us to this point.
The Troyer Group has completed some preliminary sketches based on my preliminary vision of phasing for the project. One of those is included in the article to the right. They have also included some preliminary sketches of the potential housing which I will share here when I get the chance.
As part of this process, I appeared before the Plan Commission in May and received their blessing on annexation of the eastern half of my property. At the following Town Council Meeting, on June 12th and formally requested voluntary annexation. They agreed to this and have begun that process. There will be a public hearing on the annexation in the near future. More on that here soon too.
Ran across this ad in the Pilot News the other day. LaPaz Garden Court was completed by Easterday Construction Co., Inc. in 2010. It was the 6th Garden Court facility we built from the ground up.
Due to a late start, this project got caught by weather and was shut down for several months through the winter. Despite that we were still able to make the completion date without extensions.
We are proud of our association with Garden Court and are fortunate to continue to count them as a client.
There has been some recent debate about Building Permit Fees in Culver. Two things have prompted this: The first being the new County Online Building Permit system and the second being the low reimbursement fee Culver pays the County Building Inspector.
Culver has a Building Commissioner to review zoning requirements and issue building permits. Our Building Commissioner does not have the proper certifications to do building inspections so we have relied on the County Building Inspector to do building inspections. Several years ago a fee to the County of $50 per permit was set for projects that required building inspections. Building inspections are required on any construction involving new or changes to structural, mechanical or electrical systems. Since that time, some of the larger home projects and commercial projects at Culver Academies have resulted in multiple trips (sometimes dozens) by the County Inspector. Obviously the $50 fee did not cover the costs. The County came to Culver asking for several revisions to the way Culver issues permits so as to bring the fees in line with the County fees and to make it more standardized so that the building permit process could be automated across the entire county.
For various reasons, Culver has chosen to not just raise the fees to cover the additional expenses, but to jump the fees well above those in the County and surrounding area. Where the County has a flat fee for a commercial building, Culver has a fee based on square footage and value which could easily double or quadruple the fee the same building would cost in the county. The same applies to residential projects. This is hard to justify within the Town limits, but almost impossible to justify in the Extra Territorial Boundary where there are no municipal utilities, roads or other services.
As discussed here before, I thought it was in Culver’s best interest to expand their Extra Territorial Boundary to the maximum allowed by law. I fought it when the Town gave up areas due to the new County Online Permitting. I gave up the fight when Culver didn’t follow the County’s Wind Turbine Ordinance for the Extra Territorial Boundary. (Too Tired to Fight About it Further…) Now this latest overreach could jeopardize the Extra Territorial Boundary we currently have. If the County feels the Town is taking advantage of landowners in the Extra Territorial Boundary, they could rescind Culver’s control over this area. Instead of providing a service this could be considered a case of taxation without representation.
This issue will be before the Town Council tomorrow night. It has already been before the Plan Commission where it was passed. I will probably not speak tomorrow night since I already did at the Plan Commission. My points there were the following:
It will be an interesting meeting tomorrow night. I understand the troops have been rallied against this. I think what started as a reasonable response to outside costs have taken an unfortunate turn. We’ll see how it shakes out.
Picture Source: colliergov.net
Comic Source: studious-catz.com
As my loyal lurkers know, I got run around by the Town trying to set up a special BZA meeting to hear a Special Use request on my property. I really appreciate Dan Adams and the other BZA members making the effort to be there for me! (Jerry Chavez with MCEDC had also called some favors for a abatement hearing at the County Council as well. That got cancelled.) But… That was before the Town Council chose to pull the plug on the project for 2015.
Jonathan Leist, Town Manager, was kind enough to suggest that all I needed to do was submit a letter withdrawing the application and he would appear at the meeting for me. I didn’t think that was appropriate since I had made the request. I attended the regularly scheduled BZA meeting on the 15th to thank the BZA members for the indulgence, apologize for the withdrawal and ask whether they wanted to have the special meeting on the 22nd. After some discussion it was agreed that the meeting should proceed since it had been advertised. I agreed to attend and formally withdraw my request and answer any questions posed by the public.
There were 8 people there in the audience on the 22nd which made me nervous going in. It’s unusual for people to come out in support, so I pretty much assumed they were best case coming to hear about it or not the best, coming to protest it. Based on the comments, it was a little of both. The meeting opened and I withdrew the request, but said I was there to answer any questions. This is paraphrasing at best, but here’s what was asked and answered:
Example of apartments buildings put up by Equal Development, the developer considering working with Culver on Entry Level Housing
Will there be apartments? Yes, that is why I made the request to the BZA. Current zoning, S-1, allows single family housing, but apartments are only allowed with a Special Use variance.
Who would manage the apartments and who would make sure they didn’t deteriorate? Under the scenario currently being pursued, the apartments would be subsidized through a government program and the developer would be responsible for the apartment management. There would be State inspections to make sure they would be maintained. (I’ve included a picture of a previous complex completed by the developer to the right and there are more pictures in a previous post here.)
Would you pursue annexation? I would not pursue annexation, but I would require municipal water and sewer for the apartment project and I would assume the Town would want to annex the property at some time in return for this service. Jonathan Leist also responded: The Town would want to annex the property since it is to be served by Town utilities.
How many apartment units are planned? Initially the discussions are for 24-48 units, but there could be more depending on demand. There will also be single family homes in the development as well.
There was quite a bit of further “comment” that the apartments would deteriorate over time.
There were “comments” from one adjacent business that they would fight any annexation as it would end them. It was unclear if the annexation they would fight would be annexation of their property, my property or both… Meanwhile another business looked at it as an opportunity. (Currently my property is contiguous to Town, so if I request annexation it’s unlikely that any protests would matter.)
Eventually Dan ended the meetings as the concerns became repetitive and the points were somewhat moot considering that the BZA will probably not be involved with any of the decisions. Since plans are back up for reconsideration between now and next November, any specifics are subject to change anyway.
It was good to have the discussion and hear what some of the concerns are. Better to be prepared so we can try and address them positively before we go before the various boards and commissions again. I still think the project is positive for the Town and I don’t feel there is a downside for the neighborhood. I think after hearing some of the discussion, some of those that came for information probably agree. Others may not be so easily swayed. (Any new lurkers that are interested in reading what I’ve said on these subjects in the past can click the Sand Hill Farm tag (top of post) to see thoughts about the property or the Affordable housing tag to see discussions on affordable housing. For those of you on Twitter, if you follow @eccculver I tweet out a notice of new blog posts.