Palm Bay Land Development

Paving the Way for Progress and Prosperity
Concept by
Contact: Ike Heckler Jr. 321-693-8545
[email protected]
Track Record
Over the past 30 years I have owned and managed various businesses, all with increasing success , ranging from the music
industry, the computer consulting industry, owning a software firm, and securing corporate sponsorships for my NHRA drag
racing company.
My father, who was in the Pennsylvania land development business for over 60 years, taught me how to secure large parcels of
land, work with the municipalities getting it subdivided, installing the sewer, water, and roads, and then selling the lots to the
builders. Dad even had me on a dozer at 3 yrs old so naturally I can operate just about any piece of equipment which saves a lot
of money on our projects.
From 1998 to 2003 I worked with Dad in developing and marketing Brooke Run, a 110 lot subdivision located in Pennsburg, PA
with 1/2 acre lots with central water and sewer and 2500 sq ft semi-custom homes that started in the mid $200s
In 2003 I then started my own land development company, IH Land Development, in the beautiful Pocono Mountains where we
secured investor and bank funding to engineer and develop a 10 acre parcel called Tranquility Woods at Marshalls Creek.
Tranquility Woods at Marshalls Creek in Smithfield Township in Monroe County is an 11 lot subdivision on 1/2 acre lots with
public sewer & water (where we partnered with Shawnee Mountain) with 2500 sq ft semi-custom homes in the upper $300s.
The project was engineered in 2003, and approved, built and sold out with a gross profit of over $400,000 in 2004.
Over the past 8 years while the Florida economy recovered, I have done computer consulting and drag raced while Premier
Properties of the Space Coast purchased these lots where we will be building our semi-custom homes. With DR Horton
building 220 homes in Bayside Lakes and Stillwater Construction starting to build on the scattered lots and the Palm Bay
Parkway and I-95 Micco interchange becoming a reality, the timing is perfect to start building on the scattered lots and “Pave
the Way for Progress and Prosperity !!
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Background
•
We have formed Palm Bay Paradise Homes LLC, a real estate investment company, where Premier
Properties of the Space Coast, Inc. is the Managing Partner and we are currently seeking $1 million of
private equity funding that will be used for:
1. building up to 100 semi-custom 3 bedroom, 2 bath, 2 car garage homes ranging from 1800 sq ft to
2,300 sq ft with optional enclosed custom pool & spa in Unit 30 starting in the upper $100s
2. buying additional lots in Unit 30 for future development
3. helping to pave the scattered lots roads in Unit 30
•
All of our presently owned and future lots in Unit 30 have failed or failing roads (major potholes and
patches) and this is a concern for our investors, our builders, our bankers, and home buyers
•
As you know, GDC originally cut these roads in during the creation of Port Malabar over 40 years ago with
little or no base beneath the roads and using an inferior asphalt mixture. As such, many of these roads need
to be re-paved to make the new homes we (and other builders) are building appealing to the home buyer.
Some need to be paved for the 1st time
•
Project success will require “out of the box” thinking and some ordinances will have to be “tweaked” or
new ones created and some old definitions may have to be changed to new ones.
•
Our proposal to pave the scattered lot roads involves the home builder with NO COST to the taxpayer and
NO COST to the City of Palm Bay or Brevard County.
•
In a nutshell, each home builder on a scattered lot would have to pave 2 lots worth (160 lineal feet) of
failed or failing road OR pay the current residential traffic impact fee before they would receive final
approval and their Certificate of Occupancy
Project Success Reasons
•
The builder can absorb the extra cost of paving the roads, due to the higher home sale price
paved roads will create; and the Buyer will pay the increased sale price to have brand new
roads.
•
Where the roads are paved, ALL LOTS and ALL HOMES will appreciate in value, not just where
the new homes are constructed.
•
As more new homes are constructed and more roads paved, the appraised values of BOTH the
lots AND the new and existing homes will increase which will make it easier for buyers to get
mortgages. People will also be able to more easily sell their existing home and maybe move up
to a new and larger home.
•
The increased appraised value of the scattered lots and the new AND existing homes, will also
generate additional permitting fees, impact fees, and tax revenue for the City of Palm Bay and
Brevard County.
•
Premier Properties of the Space Coast, Inc. could function as a City of Palm Bay Consultant and
assist with
• Establishing the location and operation of the temporary asphalt plant
• Training the builders and asphalt sub-contractors on the new pave process, pave
specifications and inspection criteria
• Training the building department on the revised permit application and CO checklist
• Helping with the actual pave inspections and tracking the paves per builder
Rising Tide Floats All Boats
Will increase Value and Revenue for
Vacant Lots
New Homes
Existing Homes
City of Palm Bay
Brevard County
Nearby Businesses
Scattered Lot Appraisal Analysis (CMA)
•
•
•
•
2 mile radius from subject property being appraised (ie: new 2,000 sq ft 3/2/2 home)
Residential sales of similar sq ft homes during the last 6 months are included in the CMA
The only CMAs that will qualify (since NO scattered lot building is occurring right now) is the DR Horton
sales in the Bayside Lakes Amberwood and Wellington communities and they are selling a 1,752 sq ft
3/2/2 for $157,990 and a 1,970 sq ft 3/2/2 new home for $169,990
These are perfect CMAs since the new homes in Unit 30 (with paved roads) will start around $170,000
(keep in mind that the DR Horton sales prices are base prices, add about $20,000 for upgrades and lot
premiums)
DR Horton CMAs
Subject Property
Palm Bay Paradise Homes Prime Home Sites
Legal Desc Address
Acrea Lot Size Zoning
ge
0.2 125' x SRE 1800
4 85'
sq ft min
Sewe Water Amenities
r
septi well corner lot with
c
canal buffer,
future City Water
septi well corner lot,
c
future City
Water
septi well future City Water
c
Unit 30 Lot 2801 Fitzpatrick
1
Ave Palm Bay
Block 1411
Unit 30 Lot 2801 Lakeland
0.2 125' x SRE 1800
21
4 85'
Ave Palm Bay
sq ft min
Block 1381
Unit 32 Lot 1143 SW
0.2 125' x RS2 1200
7
4 85'
Harlingen Rd
sq ft min
Block 1557 Palm Bay
Unit 46 Lot 1374 Martinez St
0.2 125' x RS2 1200 septi City City Water available
Palm
80' 30 forsqour
c example
10
ft min
Wat of
WeBay
will use our 2 lots 3in Unit
illustrative
Block 2025
“Paving the Way for Progress and Prosperity”er
But first we need a BIG supply of asphalt close by…….hmmmmmm
Note: We are selling the lots in Unit 32 and Unit 46 to concentrate our
home building in Unit 30 exclusively
Temporary Asphalt Plant* – decreased trucking and asphalt costs
Needs New Paving
Needs New Paving
Needs Re-Paving
Needs New Paving
Needs Re-Paving
(good use of the “compound”)
Needs Re-Paving
* Asphalt plant can also be used to help build Southern Parkway and I-95 Micco Interchange
and will also produce 1B, 2B, fine stone, and other materials needed to pave the dirt and
gravel roads
NOTE: If the proposed location does not work, the City of Palm Bay owns many large
parcels within the “compound”. Ranger Asphalt also has a shuttered plant in Grant we could reactivate or
possibly move to the “compound”.
Palm Bay Scattered Lots New Home Construction
(road paving sequence)
First Home
1. Our builder starts building new home
on corner lot.
2. Before we can get our CO builder has
to pave 2 lots worth of roads in front
of our lot (as shown) OR pay impact
fee.
3. City inspects road construction as per
their pave requirements.
4. After pave approval, builder receives
CO and new homeowner moves in.
5. Unit, Lot, and Block of start & end of
pave (PAVE ID) is added to building
permit and inspection date and
approval date are filled in.
Palm Bay Scattered Lots New Home Construction
(road paving sequence)
Second Home
1. Our builder starts building new
home on corner lot (Lakeland).
2. Before we can get our CO builder
has to pave 2 lots worth of roads in
front of our lot (as shown) OR pay
impact fee.
3. City inspects road construction as
per their pave requirements.
4. After pave approval, builder
receives CO and new homeowner
moves in.
5. Unit, Lot, and Block of start & end
of pave (PAVE ID) is added to
building permit and inspection
date and approval date are filled
in.
Palm Bay Scattered Lots New Home Construction
(road paving sequence)
New Builder
Lets say another builder sees the new
construction and new roads going in
and wants to build on Lot 1 next to our
first new house.
But the roads are already paved 2 lots
worth on the east side of the lot – no
problem, the builder just paves 2 lots
worth on the north side (as shown)
Subsequent builders start paving
where the other builder stopped
Value Multiplier Effect
By paving approx 570 lineal ft of road,
we now have 10 lots with brand new
roads with increasing home and lot
values !!
Project Implementation
(1st new home)
Pave ID: 30_1411_1_30_1411_2
Building & Permitting (builder, lot info already on permit)
• Start Pave: Unit 30 Block 1411 Lot 1
• End Pave: Unit 30 Block 1411 Lot 2
• Inspection Date: 5-6-2014 Approval Date: 5-9-2014 (failed the compaction test)
----------------------------------------------------------------------------------------------------------
Final Approval AND Certificate of Occupancy are NOT issued until pave is approved OR impact fee paid
Actual Paving
Objective would be to have multiple builders (or same builder) pulling permits for several lots in a
row so they could “follow each other” when the paving occurs
• This will produce a smoother pave with less seams and also reduce the overall cost of that pave
for the asphalt sub. We suggest a tar seam so next pave can tie in easily.
• In actuality, some builders will buy up several lots in a row so they can keep the paver going to
decrease overall costs and to get their impact fee credit when they pull the permit on the other
lots that they have paved. Neighbors may even pay paver to keep going (it has happened)
Scattered Lot Only
Start Pave: Unit
End Pave: Unit
Impact Fee Credit ? Yes/No
Pave ID:
Lot
Lot
Inspection Date:
Approval Date:
Block
Block
To track pave
•
City of Palm Bay traffic impact fee receipt OR approved scattered lot pave
(please see Ordinance 2014-999999)
New pave ordinance
Brevard County and Palm Bay EXISTING Permitting and
Impact Fees (ie: 2,000 sq ft home under air, septic & well)
Brevard County Fees
1.
Impact Fees
a) Correctional -----------$ 71.99
b) EMS -------------------- 38.65
c) Library------------------ 63.84
d) Solid Waste------------ 160.00
e) Education-------------4,445.40
----------------------------------------
Total Impact Fees
2.
3.
4.
City of Palm Bay Fees
485
150
75
$710
--------------------------------------------Total County Fees $5,489.88
Total City of Palm Bay Fees $7,447
-------------------------------------------$12,936.88*
Impact Fees
a) Traffic -------------------$4,353
b) Parks --------------------- 788
c) Police -------------------44
d) Fire ----------------------- 324
-----------------------------------------
Total Impact Fees
$4,779.88
Septic Permit-----------------Potable Well Permit---------Irrigation Well----------------
Total Permit Fees
1.
2.
$5,509
Permits
a) Building--------------- $1,700
199
b) Driveway-------------c) Lot Drainage--- -----39
-----------------------------------------
Total Permit Fees $1,938
So instead of the home selling for $170, 000
the builder has to price it out of the
appraisal market at $190,000…..and buyer
*Before any dirt is turned, builder is already
“out” $13,000 dollars and must make that up still has no roads.
in the sale price of the home.
Brevard County and Palm Bay PROPOSED REVISED
Permitting and Impact Fees
(ie: 2,000 sq ft home under air, septic & well)
Brevard County Fees
City of Palm Bay Fees
1.
1.
Impact Fees
a) Correctional -----------$ 71.99
b) EMS -------------------- 38.65
c) Library------------------ 63.84
d) Solid Waste------------ 160.00
e) Education-------------4,445.40
----------------------------------------
Total Impact Fees
2.
3.
4.
Total Permit Fees
Proposed Revised Impact Fees
$4,779.88
Septic Permit-----------------Potable Well Permit---------Irrigation Well----------------
485
150
75
$710
--------------------------------------------Total County Fees $5,489.88
Total City of Palm Bay
PROPOSED REVISED Fees $1.894 or $4,071**
-------------------------------------------$7,383.88* or $9,560.88*
* Now the builder can afford to pave 2 lots worth
of road since the new higher home price will
absorb that cost
Impact Fees
a) Traffic -------------------$ 0 or $2,177** for 2 yrs
b) Parks --------------------- 788
c) Police -------------------44
d) Fire ----------------------- 324
-----------------------------------------
2.
$1,156 or $3,333**
Permits
a) Building--------------- $ 500 – flat fee for 2 years
b) Driveway-------------199
c) Lot Drainage--- -----39
-----------------------------------------
Proposed Revised Permit Fees $738
So now the home can sell for $170, 000
and it will now appraise due to the newly
paved roads and nearby CMAs (DR Horton)
** depending if the builder decides to PAVE
or PAY the impact fee
Projected Scattered Lot Revenue
(without paved roads)
Assumptions
1. City impact fee stays $4,353
2. City building permit fee stays $1,700
3. Building a 2,000 sq ft ua, 3/2/2 with septic and well
2014 – 2017
Taxes: $111,038
Impact Fees: $578,445
Permit Fees: $203,490
2014 – 2017
Taxes: $120,488
Impact Fees: $501,900
Permit Fees: $74,550
Projected Scattered Lot Revenue
(with paved roads)
Assumptions
1.City impact fee lowers to $2,177 for 2 yrs
2.City building permit fee lowers to $500 for 2 yrs for ANY
sq ft home
3. Building a 2,000 sq ft ua, 3/2/2 with septic and well
4.Southern Parkway & I-95 Micco interchange construction
is accelerated now that the impact fee money can be used
to aquire right of ways and fund construction !!
2014 – 2017
Taxes: $750,825
Impact Fees: $2,366,430
Permit Fees: $523,980
2014 – 2017
Taxes: $814,725
Impact Fees: $3,393,800
Permit Fees: $504,100
St Johns Heritage/Palm Bay Parkway
Ellis Road interchange
426905-3 I-95 INT @ ELLIS RD /ST JOHNS HERITAGE PKWY
About
This new interchange will align with St. Johns
Heritage Parkway on the west and Ellis Road
on the East
Phase:
Design
Work Type:
Interchange
Construction
Length:
1.01Mi
City:
•Melbourne
County:
•Brevard
ROW:
$ 10,389,000
Construction:
$21,134,813
St Johns Heritage/Palm Bay Parkway
Micco Road interchange
426904-3 New Interchange @ SJHP/Palm Bay Parkway north of Micco Road
About
I-95 Interchange @ St Johns Heritage Parkway/Palm Bay Parkway north of Micco Road.
The contract will perform survey, geotechnical investigation, develop plans to a level so that
Right-of-way can be identified and permits can be acquired. Work also includes assisting in
the development of a Request for Proposal for a design/build contract that will follow.
Phase:
Design
Work Type:
Construction
Length:
1.12Mi
City:
•Palm Bay
County:
•Brevard
Road:
•I-95
Estimated Costs
ROW:
Donated
Your New Palm Bay Scattered Lot Builders
Builder Feedback
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When will construction start on the Southern leg of the Palm Bay Parkway ?
When will construction start on the Micco I-95 interchange ?
Straight pave vs intersection cost concern – can an intersection count as a 2 lot pave ?
A small builder already has a small profit margin – paving cuts that margin lower
Can City waive an impact fee in exchange for us paving the roads?
Can City pave main roads (ie: Lakeland, Madden) and we pave side streets ?
Can we just put down 1 coat like “airport mix” ? (ie: relieving the City of final coat)
What are the City’s specifications for paving the road
• How wide a pave?
• How thick the pave?
• What paving material is acceptable?
What is the City’s inspection criteria ?
• Compaction test?
• Materials test?
• Depth test?
• Who do we call for inspection?
What will the City require for the seams ?
We need to be released from all liability since the City owns the roads
The City needs to repair and maintain roads after we pave them.
What asphalt subs can we use?
Can we use our own equipment to pave the roads?
Can we pave more than 160 lineal feet?
Paving the Way for Progress and Prosperity
Palm Bay City Council Implementation Steps
1. Change the residential traffic impact fee ordinance definition so that the revenue can now be
used
1. to repair failing/failed roads or pave existing dirt or gravel or “grassphalt” roads
2. to pave new roads (ie: Southern Palm Bay Parkway, I-95 Micco Road interchange)
3. to secure Right of Way acquisition for future road improvements (ie: Southern Palm Bay
Parkway)
2. Create or change the Ordinance that lowers the residential traffic impact fee to $2,177 for a
period of 2 years
3. Create a new Ordinance that states “Any builder constructing a single family residence on a
lot that is not in a subdivision or planned unit development, shall be required to EITHER pay
the current traffic impact fee OR pave a minimum of160 lineal feet of road by 20 feet wide as
per construction specifications from the City of Palm Bay before builder will be issued a Final
Approval and a Certificate of Occupancy. The location of the 160 lineal feet by 20 feet of
paving shall either
1. be immediately in front of the lot where the single family residence is being constructed
and run North, South, East, or West for a continual distance of 160 lineal feet OR
2. If the road in front of the lot is already paved, then start of pave shall occur at the closest
completed pave starting at that seam and then run North, South, East, or West for a
continual distance of 160 lineal feet .”
4. Create or change the Ordinance that lowers the residential building permit fee to $500 for a
period of 2 years for ANY sq ft home
The new Palm Bay Parkway and I95 Micco interchange will provide
quick access to all new scattered
lot homes !!
Click the picture to do a "flyover"
showing the parkway routes,
interchanges, and exits !!