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4. UHome UCity Green Homes <br />A few weeks ago, staff learned that the construction company that was <br />scheduled to build our green homes in the northeast quadrant, BOA <br />Construction, closed its doors. Richard Reilly, who was the COO and is our <br />primary contact, was as surprised as the rest of the construction industry. The <br />development team (Arcturis, WU and U City) are hoping that Richard, who has <br />great experience building LEED platinum homes that are affordable, will be able <br />to assemble a team to do the construction. So that we can remain on schedule <br />Arcturis contacted several home builders and asked them to submit proposals to <br />take on the builder role. We should know who will fill BOA Construction’s place <br />shortly after the first of the year, we are interviewing three firms that submitted <br />proposals last Friday. We are also working hard to find a bank and appraiser on <br />board with the green homes concept for the neighborhood. The price point in <br />Sutter Heights (taking into consideration some foreclosures) is quite low <br />(between $50k and $100K) and may present a very difficult hurdle for our <br />potential buyers in getting construction lending. The first five homes will be our <br />most challenging. Finding a bank and appraiser that are willing to lend buyers up <br />to $200,000 is our most immediate challenge. Having more buyers in the <br />pipeline will have a dramatic effect on the appraisals, so keeping the buzz going <br />is critical. The architecture studio will move forward as we continue to resolve <br />the financing issue. Once we have architectural drawings attracting buyers will <br />be much easier. <br />Council has indicated their desire to move forward in acquisition of additional <br />properties. As outlined in Ms. Eastman’s Memo dated November 19, 2009, <br />there are seven properties that are the most attractive in pursuing. The first two <br />are actually owned by adjacent homeowners. They are particularly desirable <br />because they are also adjacent to existing lots that the City owns and is <br />developing. The costs of development of those lots will be reduced if they can be <br />done at the same time as our first five. These lots would require negotiation with <br />the landowners. Comparable sales in the area are less than $5,000. Purchase <br />could be completed in FY 10 if funds were made available. <br />The next five lots that are candidates for acquisition are five lots owned by the St <br />Louis County Trustee. They are desirable because there would be no acquisition <br />cost (simply an ordinance and $27 for recording fees) and depending on the <br />state of their titles, clearing title should be relatively easy as was the first five. <br />Clearing title, assuming no liens, should cost about $2000 per property. <br />($10,000) Because of the mechanics of the transfer, monies could be budged for <br />FY 11. No additional monies for these properties are needed in FY 10. <br />Before Council proceeds with either category of purchases, we have ordered <br />preliminary title work to determine whether the seven properties contain any <br /> <br />