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| The jobs-creation acreage at OLF-8 and the residential mixed use portion should not be handcuffed together--- when we are good to go on the 250 acre jobs portion of this property. |
We have now had three separate offers for OLF-8 where one of the first sales stipulations/conditions for such sales requires significant variances away from the approved Master Plan for OLF-8 in Beulah.
Three companies, three separate and distinct offers, three LOI's with strict requirements for variances away from our codes and ordinances as it pertains to deveolping OLF-8.
This means something. Occam's razor applies. Obviously there is something with the master plan which is making such a transaction not financially viable.
I lament this, but I am not entirely surprised. In multiple discussions now with multiple industry professionals that have either already made offers for this field or who are considering doing so--the one common theme is that the plan as required is not financially viable/feasible in this market if strict adhearance in mandated.
Said one such offerer "We can get about 70% there, with the areas and the uses and even the street layouts--we just cannot make the other 30% and in order for this deal to make business sense for us as a company--we have to have relief from that 30% which includes some of the very proscriptive design code."
There is obviously some wisdom in this individual's words--- as each of these three separate offers are from primarily residential builders and each such plan--thus far--looks to build more single family housing than mixed use, commercial, and/or high density commercial with residential lofts.
So if we are going to only settle for absolute 100% compliance with the DPZ plan for the southern, mixed use portions of the field--- I believe we need to go ahead and start off with moving the 250 acres on the northern part of the field forward for job creation with a re-booted triumph grant. The board has signalled it's intent to hold back 250 acres for job creation--separate and apart from the rest of the field--due to the curveball we were thrown with the state's recently enacted "Live Local Act" which pre-empts our ability to prevent owners of commercial properties anywhere from immediately creating high-density residential apartments on such commercial properties. If we sold the northern portion of OLF 8 as a part of any one-package all in one sale---we would not be able to prevent such a purchaser from building apartments on that commercial jobs producing parcel thanks to the state's passage of this law. Our local control on this matter has been stripped by the state legislature.
So, with all of this as the backdrop, now is the time to move forward with creating jobs on the 250 acres of commercially zoned areas on the north east portion of OLF 8. I discussed this on Rick's Podcast Thursday Morning. If the board wants to create jobs with this portion, which we signalled strongly at our last meeting, now is the time to move forward, reboot our triumph gulf coast application, and get going. There are companies that need this space at this location--good companies with good jobs.
Meanwhile, we can wait for the perfect "unicorn" offer from a developer to build the balance of the field on the south side, in complete/absolute 100% adhearance to the master plan as enacted. We can make that portion fabulous. Eventually. If we get a buyer. Maybe.
But that might just mean we never get that section developed. It might mean we never get a restaurant, shop, or any other amenity developed on that portion of the field if the requirments are absolutely rigid and the county in intransigent with respect to ANY variances requested by an offeror. My prediction is we may never get an offereor who will pay top dollar to build it 100% as the plan specifies. Look back at the first three offers for my rationale for this prediction.
So the southern portion of the field might very well remain a field if that is the case. I know many would be just fine with that--because such individuals really never wanted anything built there anyway.
But the largest tragedy of that scenario is that it makes it harder, if not next to impossible, for us to ever recoup the county taxpayers' existing $14.5 Million debt on the whole parcel if the southern, most valuable retail/commercial frontage parcels on 9-Mile road remain "unsaleable."
But at this point the jobs portion and the residential mixed use portion should not be handcuffed together when we are good to go on the jobs portion. Time to get moving.
9 comments:
I suppose we should counter to Eisenhower for only half the parcel. If Breland gets back in the mix— that would be nice. I liked their idea of a medical complex, with the aging baby boomers its important to have in patient, outpatient, hospice care. I think there is a need for such things. From a trust perspective, I would take Eisenhower or Breland any day over DR Horton. At this point, if we do as you say Commissioner, would you be willing to negotiate with Eisenhower for half the property, then put a new proposal out for the remaining acreage slated for jobs?
This is an interesting pivot from our commissioner. He’s betting on the southern portion of the field to never be developed per the DPZ design code. Sell the north side 250 acres for jobs and just sit and wait for someone to develop the southern half? That would be interesting to see how this plays out. The truth is that long term this land only keeps increasing in value. As Beulah keeps growing, and the i10 interchange gets built, and as the north side 250 brings another job anchor, that might be the window for the southern half to be developed per the design code. I would be curious to see what happens when now to the southern part as it becomes non negotiable to variances.
Agreed. Wonderful pivot from our commissioner. He knows well that the regulating plans swallow up the job portion north side over the next 4, 9, 14 years… sell the commerce portion now — like Rome … if you build it the residential will come!
“at this point the jobs portion and the residential mixed use portion should not be handcuffed together when we are good to go on the jobs portion. Time to get moving.” ……… this comment right here. Separate the parcels and the bids ! Two totally different types of developers here.
Interesting op Ed today
The op Ed somewhat contradicts the story above 👆
7:17 -- The op-ed was written and submitted before the new offer was submitted by the Eisenhower group. But regardless -- the spirit of the op-ed remains true; Compromise, working together, improving a community, providing something for everyone. That is what I believe the BCC will do with OLF 8.
1. First of all, we can rub our stomachs and chew gum at the same time. It is not a matter of either/or - we can and should do both. You can start to get the light industrial ready with Triumph infrastructure dollars so it will eventually provide good jobs, while preserving the woods, wetlands and civic-zoned space on the southwestern portion. But why rush development if the market brings warehouses, as is likely until the new interchange is built? Those are not good paying jobs. And who would want multiple buildings with 20-bay loading docks and trucks running through their community day and night?
2. At the same time, go out with an RFP for what the county actually wants to sell, the residential, commercial and town center property on Nine Mile Road. No wonder we got another offer for 540 acres - there are still enormous signs up that say we want to sell 540 acres. As part of the RFP, it needs to say that the residential will be Traditional Neighborhood Development (TND) - that's what is in our DPZ master plan with the design code. TND is not a Lamborghini or a unicorn - it is what Breland and others already build successfully.
3. It is a fallacy to say that there were three offers that did not want to follow DPZ master plan, so the market says it can’t be done profitably. Those three builders do not represent “the market” by any stretch of the imagination. The first one, Breland, did not want to build so much light industrial - that is not where the market value on the property has ever been. In any case, the county will not be selling the light industrial land to Breland through this RFP. That is not the type of work they do - they build high quality residential to start with, then the good neighborhoods attract an anchor to a walkable town centers with retail and restaurants that they stay to operate the town center. Breland already builds residential in the way the master plan requires. It is called Traditional Neighborhood Development (TND) it has rectangular blocks, parking in back with alley access, diverse lot sizes and building materials, street trees, sidewalks and lighting. They are staffed up to build that way and they bring in other residential builders who build that way, too. They have in fact been financially successful in building TND like in our master plan as well as building and operating real town centers, even DPZ designed ones.
4. The other two, DR Horton and Eisenhower, do not want to build Traditional Neighborhood Development because that is not what they do. They are staffed and organized to mass produce homes in suburban sprawl neighborhood designs – it is their business model, their way of operating. Horton builds tract homes, a lower quality of home that often does not even last till the one-year warranty expires. Eisenhower is no better than Horton with a little green washing on top - their builder is DR Horton with some Lennar (recently bought by Horton). It is the same lower quality tract housing and will fail to attract something more than strip retail - not a quality town center like TND could attract. These two bids are from companies that should get a second glance. What Horton represents is how much builders have been allowed to get away with.
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