Construction Timeline

Depending on how our land acquisition goes this next month, I would like to work out a plan to get our construction documents to the manufacturer by January 15, 2006, with hopes of getting our prototype on foundation by March 15th.

Marine Villa Environment

E-mail from Craig Schmid on 11/8/05:

Basically, we are looking for excellent quality housing (mostly rehab), single-family detached homes (unless converting four families to two families), homeowner occupied, three-sides of brick with masonry rear, basement, compatible with the historic architecture (no modernism, cubism, etc.), meeting the urban model of garages in rear, and selling for a minimum price range of $150,000 to $200,000.

In the 20th Ward (other than in Benton Park West) you should be talking with Sam Green, CDA housing analyst, at (314) 622-3400 (ext. 232) or greens@stlouiscity.com. Sam and JoAnn work very well together.

Thanks.

Craig Schmid

Infill Development Details

Who are the Buyer’s:
College educated couples (married, unmarried living together) transitioning from first or second jobs out of college into a more permanent position or having successfully launched their own business. Also, could be an empty-nester couple looking for good city living or divorced professional looking to start over. Emphasis on young architects and design professionals. The big issue is someone who wants a yard and doesn’t want a condo fee and likes the idea of working in a community garden and volunteering at the senior center across the street.

Price Range:
$169900 @ 1258 sq. feet without a garage and $189900 with garage and $189900 @ 1440 sq. feet (involves stretching house approx. 6 more feet) without a garage and $209,900 with garage. We would like to push this upward by at least $10,000 through our marketing and promotion of the area, which will not only get everyone on our side in the neighborhood but will lead prospective homeowners to our development(s) by directing a significant portion of our efforts to pumping up Benton Park West.

Size of Home:
1258 up to 1440 square feet

Check out http://www.mayorslay.com/polls/090805squarefeetresults.asp which provides data on a group of participants who responded to a survery about home size and city living.

Neighborhood Preservation Tax Credit

Neighborhood Preservation Act

The deadline for the 2006 tax credit application will be November 18, 2005.

This act authorizes state tax credits for residential rehabilitation and construction costs for properties located in distressed communities* or defined census blocks.

Purpose
To provide an incentive for the rehabilitation or construction of owner-occupied homes in certain areas of the state.

Authorization
Sections 135.475 to 135.487, RSMo

How The Program Works
The Department of Economic Development (DED) issues state tax credits to a homeowner who rehabilitates a home or to a homeowner or developer that constructs a new home for owner-occupancy in certain areas of the state.

Eligible Areas
“Qualifying areas,” include “distressed communities,” as defined in 135.530, RSMo, and areas with a median household income of less than 70% of the median household income for the applicable MSA or non-MSA. “Eligible areas,” with a median household income of 70% to 89% of the median household income for the applicable MSA or non-MSA.

NEW CONSTRUCTION

Eligible Area

For new construction in the state of Missouri under this category, the following must apply:

The newly constructed residence must be replacing a residence that is equal to or more than forty years of age and is demolished for the purposes of constructing a replacement residence.

The residence is constructed on vacant property, which has been classified (for tax purposes) for not less than forty continuous years as residential, utility, commercial, railroad, or other real property.

If in a metropolitan statistical area or non-metropolitan statistical area, the property must be in a United States census block group which has a median household income of less than ninety percent (90%) but greater than or equal to seventy percent (70%) of the median household income for the metropolitan statistical area in which the census block group is located.

There is no minimum cost that you must incur for new construction. The maximum tax credit amount is $25,000 in any 10-year period. For example, if you spend $25,000 to construct your home, you could receive a $3,750 tax credit [$25,000 x 15% = $3,750]. NOTE: (You may be eligible to reapply continuously until you reach the $25,000 maximum tax credit amount if your “new construction” has not been completed and you have incurred additional construction expenses.)

Qualifying (Distressed Community) Area

If doing new construction in the state of Missouri under this category, the following must apply:

The land must have been vacant for at least two years and is or was occupied by a structure condemned by the local entity.

If in a metropolitan statistical area or non-metropolitan statistical area, the property must be in a United States census block group, which has a median household income of less than seventy percent (70%).

A message from JoAnn Vatcha regarding Housing Corporation Meeting

Thank you for coming to the Benton Park West Housing Corporation last night. I am very excited about the energy angle, affordability and bold design of the product, and I hope we can work together to make it happen. I will be out of town the next few days, but when I return on Tuesday, I'll call to set up a meeting to discuss this further.

Step One: Start Blog

So here it is. Possibly the first real estate development project ever supported by an online blog. I hope that as we continue to move forward with this project we can find a way to support our efforts and our ideas through informal communication as we foster an environment of thoughtful creativity and critique. Meetings will always be a necessary part of any project - but late-night and early morning brainstorms, hair-brained ideas and rants need a place to be heard. Hopefully this can be our space.