Agenda - 03-21-1990 - Laserfiche WebLink

Browse Search

17 [16] [17] LAND USE 161 ent of the to passing the inclusionary ordinance. that if the council's ordi- ietropoli- nance were applied immediately using prevailing interest rates and that (which everyone knows will be going down soon), the current that they median income figures for the Utopia P.M.S.A. (which everyone that are knows will be going up) requires only that a builder deliver a e-income two-bedroom condominium unit, which under the ordinance can ..n 80 and be as small as 800 square feet for$25,000 for a low-income family iirements of four persons. The identical unit, Utopia's experts have con- Jable to cluded. could be sold today to a moderate-income family for n income $35,000. n income The experts Utopia hired also know a great deal about the nt or buy house-building industry, and have talked to architects, site plan- 'ome. In ners, civil engineers as well as the subcontractors that builders iuilder to use. They have concluded and advised the city council that an cupancy efficient builder can construct high-density, small condominium iayment, units under the new zoning for $40,000 per unit, including aver- se buyer age land development costs and sewer and water connection fees carry at in full compliance with Utopia's development regulations. This percent I figure does not include land costs but it includes 5 percent for - nts, esti- administrative expenses, construction financing, the cost of all es. � bonding for municipal improvement, all municipal fees, and ac- housing tual estimates from suppliers and subcontractors. The Utopia the city study, which the city council is relying on, states that these isfies all numbers are conservative and that a production builder who d politi- buys in bulk and has economies of scale may be able to build simulta- these inclusionary units for as much as 15 percent less. the in- i if this study is right, a builder could build the 200 inclusionary 'y of the units required on Fairhaven and sell at a cost or loss to himself of refit be- only about $2 million since he would only lose $500,000 on the traded. 100 moderate-income units and $1.5 million on the 100 low- irhaven income units. by con- After reviewing all the of information in the study, the city council decided that in calculating the value of the benefits to /eloped Fairhaven from the new zoning the council should use the num- ng unit. ber of market units only in estimating land value and subtract )uld be from that the predicted losses a builder would incur from build- in now i ing low- and moderate-income units. Using that approach, the an in- council decided that Fairhaven, which was worth $4 million ius the before rezoning, is now worth $6 million. The professor, however, disagreed with the city council's knows conclusion that the owners of Fairhaven had made $2 million It has from the process. He said that the city council should also prior subtract some undetermined amount from the land value of iiiimmimummaiimmini-- . M