AgdaPkt 2013-09-23 Closed and Regular

Browse Search

8.A. - Page 449 SSL Ma- Silvia Vonderhnden at - AW 16, 2013 1. A W Page 3 FIRM 1, L P The newer homes in the project vicinity are significantly larger than this average. Therefore, although the maximum floor area allowed under new Condition 19 may look similar to the average development in the neighborhood, it is in fact substantially less than the average of the homes built in recent years. More particularly, the new house sizes in Amended Condition 19 are smaller than other recently approved houses in the City, and impose lower floor area ratios (FARs) than have been imposed nearby. Exhibit B is a table showing the sizes of recently approved homes, and their FARs. Exhibit C is a table showing the sizes of the homes in the Project, and their FARs. These data show that the sizes of newly approved and constructed homes range from 2,250 to 4,500 square feet, with FARs from 0.24 to 0.51. The project as proposed fit within these ranges. Amended Condition 19, however, imposed conditions much stricter than those previously applied. The Amended Condition 19 home sizes range from 2,000 to 3,432 square feet, with FARs from 0.14 to 0.33.1 The surrounding cities would all permit larger houses than are permitted by Amended Condition 19. Exhibit D shows the permitted house sizes in neighboring cities. The house sizes in Amended Condition 19 are smaller than would be permitted in each comparison city. Exhibit E shows additional house size data. The size of the proposed homes is too small to permit the property owners to obtain adequate financing, which would prevent property owners from constructing the houses. As described in a detailed letter from an experienced residential contractor in the area, it is generally not possible to construct a residence when the estimated construction costs approximate or exceed the anticipated sales price of that residence. See Exhibit F. That letter explained the extremely high fixed costs of developing on Laurel Way. The City has required infrastructure that will cost between $150,000 to $175,000 per lot that is developed. Moreover, the hillside terrain increases foundation costs for homes, regardless of their size. Average construction costs per square foot for a 2,000 square foot house are about $425, versus $375 for a 4,000 square foot house, due to fixed costs of construction. This means that the overall cost of building a 2,000 square foot house would be about $567.50 (uphill side of the street) or $612.50 (downhill side of the street) per square foot. This exceeds the sales prices of homes in the area, which have recently sold for about $484.60 per square feet. Lenders generally do not make construction loans when the value of the finished house will be less than the cost of construction because the collateral cannot cover the money lent. Moreover, even if a given property owner were able to obtain financing or to fund construction without a loan, Amended Condition 19 makes homes too small to achieve the project objective of building homes for sale. It does not make economic sense to spend more money constructing a home for sale than the amount for which the home can be sold. To the extent that the Planning Commission sought to reduce environmental impacts by approving smaller homes, there is no evidence to suggest that Amended Condition 19 will achieve that objective. The hilly terrain of the project area together with the City's development 1 To the extent the house size determination was based on the Metropolitan Planning Group Report dated July 27, 2011, that report does not support the ultimate decision. See.Exhibit I, 12369-0002.'00312193.3)