November 12, 2011  9:15AM

The Hope of Being Able to Build a Home or Business is What Gives our Property Value!

How have we gotten to where we are?

1964 – Volcano Cliffs Subdivision Platted
1976 – Mayor Harry Kinney “…as the City annexes …Volcano Cliffs…it will provide …..roads, sewage, water..financed through special assessment districts
1979 (ca.) – Property owners form VCPOA
1981 – City Annexed Volcano Cliffs – SAD development agreement
1987 – Max Kiehne, VCPOA Pres. Delivers Petroglyph Rock to City Hall steps
1991 – Petroglyph National Monument was born
City attitude – “no building west of the Monument”

1999 – VCPOA decides to incorporate
2000 – 2001   – First House Built in Volcano Cliffs Subdivision
City passes regulations to prevent future single home development

2000– 2004   –   Legacy Inc. buys 250 acres of about 550 contiguous lots from a single owner to develop La Cuentista Subdivision

• 160 Acre Tract purchased from VCI & Frandsen to form Vista Vieja/Montecito

• Mayor Chavez built Universe forced traffic through Boca Negra Canyon – community reaction negative

2004 – 2005  – Councilor Cadigan supported SAD 227
Build Unser redirected traffic out of the canyon
Cadigan angry about Dust and home building

2005 – 2006  – Councilor Cadigan’s Moritoriums Denied development and Prevented construction of Unser

• Passed Volcano Heights Sector Development Plan

• Took some owners property without compensation
• Devalued other owners property requiring:
• Native Vegetation to be used for landscaping
• Grading limitations that could cause house flooding
• Conservation Easements that would have taken more than 50% of each lot – as much as 85%
• Clustering and Development Envelopes which restricted building options
• Deed Restrictions that would have made lots unmarketable
• Building Height Restrictions that limited all large lot single family to one story

2005 – Multiple lawsuits combined into 2
Inverse Condemnation suit and Zoning suit

2007 – Multiple efforts to mediate/many attorney meeting

2008 – December Judge remanded the VHSD Plan

2009 – Councilor Cadigan still in office no plan progress

2009 – October WE helped elect
Councilor Lewis and Mayor Berry

2010 – January; Council Passes Lewis bill to fund Unser
Feb/Mar; City Planning begins to work with owners on the Volcano Cliffs sector Development Plan

• October; SAD 227 owners form the Molten Rock Neighborhood Association

• November; Ground Breaking for Unser Blvd

VCSDP hearings before the Environmental Planning Commission

2011 – Volcano Cliffs Sector Development Plan
Council Approved May 2 @ 11:20 PM

        See the plan HERE.

Making Our Property Useable

Options for Developing our Property:

• Each Individual Builds whenever they want – City Regs require drainage, paving etc. – cost prohibitive
• Lot owners get together and aggregate their lots so they can afford roads and utilities.
• Checkerboard pattern because free riders won’t participate
• Higher cost for those who do participate
• Will have to arrange private financing
• Developer buys your land and sells developed land to home builders
• Effort to aggregate contiguous lots is very high
• Developers don’t want checkerboard grouping of lots
• IF – Will buy land for cents on the dollar because they will assume the risks of aggregation, engineering & construction
• Reality – they’ll go elsewhere & buy large parcels – lower cost per acre & design subdivision from a “clean slate”
• Special Assessment District or Infrastructure Development Zones
• Many owners – all paying their fair share of costs
• Government financing available
• Consistent standards result in a Quality Community

• Special Assessment District 228 progress
• Work with AMAFCA, ABCWUA, Municipal Development
• Council Passed Resolution 1 – March 7, 2011
• Council Passed Resolution 2 – September 7, 2011

• Stars are Aligned for Volcano Cliffs Property Owners
• Mayor Berry supports private property rights
• Council Favors property owners’ rights 5 to 4
• City Legal department concerned about Zoning suit
• Unser Blvd will be completed by Spring
• Wilson and Company is fronting SAD engineering costs
• Construction costs are expect to still be low
• The economy and real estate market are improving

The time is right for SAD 228

Looking Toward The Future

• Albuquerque Population projected to increase by 300,000 over the next 10 years – 30,000 a year = 10,000 family units (source: Albuquerque Chamber of Commerce)

• 2008 to 2018 Employment Percent Growth
• Annual Projected Change – 13.5%

• New Mexico Unemployment Rate has improved from 8.6% Nov 2010 to 6.6% Aug 2011

• Hanley Wood housing 360 Survey reveals 29 percent of renters and 19 percent of homeowners are considering buying a home in the next two years. (17 Oct 2011)

• ABQ Home sales up 20% for September! – Realty Times (14 Oct 2011)  The number of properties going under contract in ABQ continue on an accelerated track. For the past four months now the number of homes going into a pending status has realized a 20% - 30% increase over the same month of the previous year.

• US Housing Starts Jump 15%, hit 17 month high – E-Trade Washington Market Watch (19 Oct 2011)

SAD Assessments and Owner Options

Build a Home – Assessment and prepaids are paid off and wrapped into a mortgage. Credits for prepayments of water hook-up and paving fees reduce impact fees at the time of building.

Sell Lot(s) –      Assessments and prepaids can be assumed by the buyer or can be paid off and include din the total purchase cost. Cash, Real Estate Contract 20% down, or Bank Loan 30+% down

Trade lot(s) –    VC owners outside of SAD 228 who may want to build in the Petroglyph Estates (SAD 228) that own lots outside could do a tax deferred 1031 exchange.

SAD 227 and SAD 228 Comparison based on 1/3 acre lot and 2500 sf house:

Notes:

1. SAD  227 ($9M construction) is about half of SAD 228 ($19M construction estimate).
2. Expect to get good construction pricing due to current economy and size of project.
3. SAD 228 does not have a capitalized interest and assessments will start during construction.
4. Note the SAD 227 and 228 interest rates and terms – the VCPOA negotiated a 15 yer on 228 and the interest rate is 1 lower that 227
5. Note that SAD 227 did not have as much right-of-way to acquire and lots cost much less then, plus the rock was generally 10-12’ deep in 227.
6. Rock is much shallower in SAD 228 with many more rock outcroppings which will require more special equipment for digging.
7. No city park (2 plus acres) or open Space Trails or gateway were required in 227 but are required in 228.

SAD 228 Support as of 11-8-11
The summary report below shows the support for SAD 228 from owners of 69.3% of the platted lots in the SAD 228 area. The VCPOA volunteers continue to communicate with owners to garner even more support. If this SAD were being approved under the petition method the minimum requirement is 66.6% support. This SAD is, however, being approved through the provisional method that the City has almost always used. The VCPOA outreach effort continues and has received additional support, both written and verbal, that has not yet been included in this report.
The Map on the next page shows the specific lots supporting shown in green. There are a few protestors, show in red, and a solution for these protestors has been included in the “Tabulation of Estimated maximum Benefit Protests” submitted to the City Council on October 5, 2011.
There are property owners who own lots outside of SAD 228 that would be willing to trade their lot(s) for a lot in SAD 228 so they can build sooner, if SAD 228 owners would be interested in doing a 1031 tax deferred exchange

Status of Special Assessment District, SAD 227 as of 12 November 2011

• SAD 227 has 268 Lots in three units (Unit 2, Unit 5 and Unser Cliffs)
• Four new houses built in the past year & inquiries with plans for 2 more
• Thus far, ther are 71 buildings on 71 separate lots, 27% built-out
• 69 buildings are occupied (two are FOR SALE)
• 2 buildings are unoccupied without For Sale signs
• Last year 11 houses unoccupied with 8 of these under construction
•  
• The Architectural Control Committee (ACC) has Covenant problems with about 11 buildings.
• There are six issues that cause problems:
• Private Open Space
• Building Height
• Exterior Lighting
• Set-Backs
• Debris
• Roof Mounted Mechanical Systems Screening
• The ACC job is an “ON-GOING” effort to get compliance with the above six issues and review new applications.

• Molten Rock Neighborhood Association (MRNA) was created just prior to the last VCPOA annual meeting and is in good standing with the City.

• MRNA has synchronized its membership year with the VCPOA membership year for better logistics. This required a bylaws change in May 2011.

• MRNA has created a web site (www.moltenrock.org) that includes the minutes of all approved MRNA Board meetings.

• MRNA organized a National Night Out event on August 2, 2011.

• At the VCPOA’s request, MRNA has agreed to facilitate working with the ACC to better document its operating procedures and to disseminate information regarding its existence and the content of the covenants and restrictions to the present and prospective homeowners.

• MRNA had an annual meeting per the bylaws on September 13, 2011 and the Board elected in 2010 was asked to continue, which the Board has agreed to do.

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