HomeMy WebLinkAboutCT 98-15; Rancho Carrillo Village B Phase II; Tentative Map (CT) (18)February 4, 1999 'J £ r A L \ f
Debbie Fountain
Housing and Redevelopment Department
City of Carlsbad
2965 Roosevelt St. Suite B
Carlsbad, CA 92008-2389
Subject: Rancho Carrillo Village B Phase 2 - Request for Financial Assistance
Dear Debbie;
As you know our application for 124 for-sale town-homes in Village B Phase 2 has been processing
with the City Planning Department for some time and is now ready to go before the Planning
Commission. We have been told that we will be on the agenda for the March 3. 1999 Planning
Commission. It is our desire to resolve the method of financing for the 82 affordable for-sale town-
homes as quickly as possible so that we may commence construction in the near future.
At this time, it is our intention for Continental Homes to be the builder of this project. Continental
Homes is a wholly owned subsidiary of D.R. Horton, Inc. All sources of cash for the construction
of the units will come from D.R.Horton's unsecured bank credit facility. D.R.Horton, Inc. is
currently the third largest builder in the United States. The financial strength and success of our
company should give the City complete confidence that the project will be completed without delay
and that any financial assistance from the City will be secure.
Attached is Exhibit A - Calculation of Sales Price for Affordable Units. We propose to sell the 82
townhomes at prices based on 80% of the Area Median Income. Not all homeowners will qualify at
exactly 80% of the A.M.I. Therefore, we have also calculated sales prices for 70% A.M.I.
Presenting you with this range is consistent with other for-sale projects in the City of Carlsbad.
Also-attached are Exhibits B and C which are the Project Proformas for both the 70% and 80%
A.M.I.
The following summarizes our back up regarding the Project Costs:
1. Land was valued at $38,000 per unit. This was based on an appraisal of the school site in
Rancho Carrillo performed by Blackstone Appraisal, Inc. See attached Exhibit D. The date of
value was February 14, 1997. The land was valued at $5,690,000. The appraisal assumes that
the school site yield is 147 units on 12.8 net acres. This equates to a value of $38,700 per unit.
The density of Village B Phase 2 will be slightly higher at 16.9 du/ac. However, when you
consider that the appraisal was done two years ago and we have easily seen 15% appreciation in
land prices over that two year period the value of $38,000 per unit for Village B Phase 2 could
be considered conservative.
2. Offsite Hard Costs were estimated by our civil engineering consultant, Hunsaker & Associates,
and our landscape architect. Ivy Landscape Architects. Attached as Exhibit E are their
estimates.
Rancho Carrillo u f j tS&gF Telephone: (760) 736-2344
A Continental Homes Community
ht ID: \\www.truecal ifornia.com
3. Onsite Hard Costs were estimated by our own staff based upon our experience with similar
projects. Attached as Exhibit F is our estimate dated January 27, 1999.
4. Consultant's Fees, Development Fees at Final Map, and Development Fees at Building Permit
are shown on Exhibit E but are broken out as separate numbers on the Pro-Forma.
5. All other costs such as warranty, contractors fee, closing costs, taxes, etc. are determined using
percentages which are similar to other financial requests to the City.
Based on the financial information submitted with this letter and based on financial assistance
granted to other for-sale affordable projects within the City of Carlsbad we are requesting financial
assistance of $15,000 per affordable for-sale dwelling unit or $1,230,000. This money would be
secured by a promissory note on each unit and would be paid back to the City when the unit is sold
again by the homeowner at a market purchase price. This form of security is the same as has been
used on the other for-sale affordable units in the City.
Thank you for your assistance on this matter and we look forward to your timely response.
Very truly yours.
Continental Ranch, Inc.,
David Lother
Vice President Development
cc Mike Van Home - Hecht, Solberg, Robinson, and Goldberg (with attachements)
g:\users\sdcdave\word\dave\lettere\fountn2.doc
Carrillo - Calculation of Sales Price for Affordable Units
70%80%
Bedrooms Total Affordable Median Median Family
Units Units Income i Income Size
(a)
Plan 1 16 10 34,925 39,300 37,800 42,000
Plan 2 54 36 41,175 47,025 45,350 48,700
48,700Plan 3 54 36 41,175 47,025 45,350
124 82
a) average of two amounts adjusted for family size, ie a 3 or 4 person family for a 2 bedroom unit.
and 5 or 6 person family for a three bedroom unit
HOA 77
Sub HOA 100
Taxe Rate 1.80%:
Loan to Value 95%.
Mortgage Factor 6.65 j 7%
Debt Ratio of Gross 30%;
Plan 1 Plan 2 Plan 3 i Plan 1 Plan 2 Plan3
Median Income 80%:39,300 47,025 I 47,025 70%, 34,925 41,175 i 41,175
Available to pay P&l, Taxes, HOA 11,790 14,108 14,108 10,478 12,353 12,353
HOA 924 924 924 924 924 924
Sub HOA 1,200 1,200 1,200 1,200 1,200 1,200
Taxes 1,855 2,299 2,299 1,603 1,963 1,963
Principal & Interest 7,811 9,684 9,684 6,751 8,266 8,266
11,790 14,108 14,108 10,478 12,353 12,353
Sales Price 103,038 127,742 | 127,742 89,047 109,034 109,034
Loan Amount 97,886 121,355i 121,355 84,595 103,583 103,583
02/01/19998:59 AM Carvilb2 Affordable
e? i i
PROJECT PRO-FORMA
CONTINENTAL HOMES - CALIFORNIA
January 15, 1999
PROJECT NAME: Carrillo Village B2
1
ASSUMPTIONS | Plan
1
Product Mix 1
% Mix 12.2C
# of Bedrooms
Square Footage 9(
SALES REVENUE
Sales Price 89,0'
Premiums
Inflation
Incentives
Net Revenue $ 89,0
PROJECT COSTS |
Land 38,0
Off site Hard Costs 16,3
Onsite Hard Costs 52,4
Consultants 5,1
Dev. Fees @ Map 7
Dev. Fees @ Permit 13,8
Warranty Expense 1.00% 8
Contractors Fee 4.00% 3,5
Closing Costs 1.00% 8
Selling Expenses 5.00% 4,4
General & Admin. 7.00% 6,2
Taxes 1.50% 1,3
Financing 6.00% 5,3
Total Costs 149,3
Maximum Purchase Price @ 70% A.M.I. 89,0
Subsidy Requirement with land (60,2
Subsidy Requirement w/o land (22,2
{SUBSIDY SOURCES
City Assistance 15,0
Developer Subsidy with land 45,2
Developer Subsidy w/o land 7,2
City Leverage @ 70% A.M.I.
»
2 3
Plan Plan Total
2 3
0 36 j 36 ! 82
)% 43.90%| 43.90%
2' 3 3
31 1,003| 1,139
4-7 109,034 109,034 8,740,934
0 0: 0 -
0; 0, 0
0| 0! 0
17 j $ 109,034 i $ 109,034 $ 8,740,934
DO 38,000 | 38,000 ! 3,116,000
84 16,384 j 16,384 ; 1,343,488
50 57,170 | 63,510 , 4,868,980
13 5,113 | 5,113 ! 419,266
53 753 ! 753 , 61,746
95 13,895 13,895 : 1,139,390
90 | 1,090 j 1,090 : 87,409
62 | 4,361 i 4,361 349,637
90 i 1,090 1,090 i 87,409
52 5,452 5,452 j 437,047
33 7,632 7,632; 611,865
36 1,636 1,636 : 131,114
43 6,542 | 6,542 : 524,456
02 159,119 165,459 13,177.808
47 109,034 109,034 i 8,740.934
55) (50,085)! (56,425) (4,436,874)
55) (12,085) (18,425), (1,320,874)
00 ! 15,000 15,000 1,230,000
55 | 35,085 41,425 3,206,874
55 - , 3,425 195,850
, : 2.61
Carvilb2 02/03/1999 1:04 PM
PROJECT PRO-^rtMA
CONTINENTAL HOMES - CALIFORNIA
January 15, 1999
PROJECT NAME:Carrillo Village B2
ASSUMPTIONS Plan
1
Product M\x 10
% Mix 12.20%,
# of Bedrooms 2
Square Footage 901 j
SALES REVENUE
Sales Price per sq. ft. $ 114.36 $
Sales Price 103,038
Premiums 0
Inflation 0
Incentives 0
Net Revenue $ 103,038
| PROJECT COSTS
Land 38,000
Offsite Hard Costs 16,384
Onsite Hard Costs 52,450
Consultants 5,1 13 |
Dev. Fees @ Map 753
Dev. Fees @ Permit 13,895 i
Warranty Expense 1.00% 1,030
Contractors Fee 4.00% 4,122
Closing Costs 1.00% 1,030
Selling Expenses 5.00% 5,152
General & Admin. 7.00% 7,213|
Taxes 1.50% 1,546
Financing 6.00% 6,182
Total Costs 152,870
Maximum Purchase Price @ 80% A.M.I. 103,038
Subsidy Requirement with land (49,832)
Subsidy Requirement w/o land (1 1,832)
SUBSIDY SOURCES i
City Assistance 15,000
Developer Subsidy with land 34,832
Developer Subsidy w/o land - !
City Leverage @ 80% A.M.I.
Plan Plan Total
2 3
36 36 82
43.90% 43.90%;
3| 3:
1,003 i 1,139
> 127.36 $ 112.15
127,742 | 127,742 | 10,227,822
0 0'
oi o;
Oi 0
* 127,742 $ 127,742;$ 10,227,822
38,000 38,000 3,116,000
16,384 16,384 1,343,488
57,170 63,510 4,868,980
5,113! 5'113 419,266
753; 753 61,746
13,895 13,895 1,139,390
1,277 1,277! 102,278
5,110 5,110 409,113
1,277 j 1,277 102,278
6,387 | 6,387 511,391
8,942 ; 8,942 715,943
1,916 1,916 153,417
7,665 7,665 613,669
163,889 170,229 13,556,965
127,742 127,7421 10,227,822
(36,147)! (42,487); (3,329,142)
; (4,487), (279,849)
15,000! 15,000: 1,230,000
21,147 i 27,487 j 2,099,142
i - :
: 1-71
Carrvilb 02/03/1999 1:06 PM
COMPLETE APPRAISAL REPORT
SELF CONTAINED FORMAT
VILLAGE S - SCHOOL SITE
Master Plan Community of Rancho Carrillo
Carlsbad CA 92009
VALUE DATE : February 14, 1997
REPORT DATE: March 17, 1997
For:
Mr. Chris Chambers
President
Continental Homes
12636 High Bluff Drive, Suite 300
San Diego CA 92130
By: Steven V. Lefkowitz, Certified General Appraiser
Don W. Blackstone, MAI-SRA
Donald Sonneman, Certified General Appraiser
Blackstone Appraisal, Inc.
3547 Camino Del Rio So. Ste. A
San Diego, California 92108
(619) 584-0088
UHL AffKAlSAL INC.
^ DON W. BLACKSTONE, MAI
STEVEN V. LEFKOWITZ, C.G.R.E.A.
3547 Camino Del Rio South, Suite A
San Diego, California 92108
(619) 584-0088
FAX (619)584-1265
March 17, 1997
Mr. Chris Chambers
President
Continental Homes
12636 High Bluff Drive, Suite 300
San Diego CA 92130
RE:Appraisal
Carrillo,
Avenue)
of Village S (School Site in Master Plan Community of Rancho
located south of the intersection of Carrillo Way and Mel rose
Dear Mr. Chambers:
As you requested, we have prepared the attached Complete Appraisal Report, Self
Contained Format, on the above-noted property. The purpose of this appraisal is
to estimate the prospective market value of the subject site, based on its
Highest and Best Use as a residential subdivision. For this appraisal purpose,
we are making the critical hypothetical assumption that the subject site has been
sheet graded and utilities are available up to the property line. We are also
assuming completion of construction of a hypothetical residential subdivision as
specified in this report. The function of this appraisal is to provide
information for potential sale of the subject property to a school district for
potential use as a school site. .
This report is intended solely for use by the client in conjunction with the sale
of the site to the school district, this report cannot be utilized for bank loan
purposes, insurance purposes, property tax appeals, estate planning or any other
uses deviating from the specified use above.
This report has been prepared with the intent to comply with The Uniform
Standards of Professional Appraisal Practice and the Professional Standards of
the Federal Reserve System, including the Federal Deposit Insurance Company and
the Office of the Comptroller of the Currency, as well as the Office of Real
Estate Appraisers, State of California.
After a thorough analysis of the subject property and the available market data
in the economic area of the subject, it is our opinion that the Value, as of
February 14, 1997, is as follows:
PROSPECTIVE VALUE OF SHEET GRADED SITE (BULK VALUE)
FIVE MILLION SEX HUNDRED NINETY THOUSAND DOLLARS $5,690,000
For detailed supporting data and the rationale of our conclusions, your attention
is directed to the following report.
Respectfully submUtejir
/
Steven V. Lefkowitz
Certified General Appraiser
AG006179
Don W. Blackstone, MAI-SRA
Certified General Appraiser
AG003198
Donald Sonneman, ASA
Certified General Appraiser
AG003493