Las Lomas - Scarborough Lane Development

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O R G A N I Z A T I O N
A N D
Q U A L I F I C A T I O N S
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Table of Contents
Statement of Qualifications .................................................................................................................... 1
Profiles ............................................................................................................................................................ 2
Team Capabilities ........................................................................................................................................ 6
Local Participation & PSB Program Requirements ...................................................................... 13
Overall Financing Capabilities .............................................................................................................. 14
Completed/Current Projects .................................................................................................................. 15
Creativity in Structuring Public/Private Arrangements .............................................................. 19
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Statement of Qualifications of Scarborough Lane Development, Inc.
for the El Paso Water Utilities Public Service Board – March 30, 2007
Scarborough Lane Development, Inc. is pleased to present its qualifications to the El Paso Water Utilities Public Service Board, for the
development of the proposed Northeast El Paso master-planned community at the foothills of the Franklin Mountains. This presentation
provides background, capabilities and intentions of Scarborough Lane Development, Inc. for the development of this project, and our
commitment to respecting the land and the quality of life of future residents. As in all of our previous developments, our mission is to
create an innovative, unique product observing the integrity of the land, the future homeowners, our neighbors and the community.
Organizational Strength and Capacity
Scarborough Lane Development, Inc. and financial partner Paul Foster lead a team comprised of Carter & Burgess Engineers,
Quantum Engineering, Bank of the West - El Paso, Bohannon Development Corporation and Anderson Hanson & Blanton Marketing,
Advertising & Public Relations. This team of experienced professionals has the demonstrated track record and capabilities to plan,
manage and complete a master-planned development through its entire life cycle from concept to final completion. Our core team of
Scarborough Lane Development, Inc., Carter & Burgess and Anderson Hanson & Blanton has worked together on major successful
projects over the past 20 years. Together we have a demonstrable track record of residential real estate developments that protect the
environment, enhance the economic development of the cities in which they are located and provide a superior quality of life for
residents who live in these innovative communities. Scarborough Lane Development’s core strengths of project management and
development are complimented by land planning and infrastructure design of Carter & Burgess and marketing expertise of Anderson,
Hanson and Blanton. Our team is strengthened by the addition of our local development partners: Paul Foster, providing equity capital,
Quantum Engineering, providing local engineering expertise and planning, and Bohannon Development Corporation, providing multifamily development, construction and financing expertise.
Scarborough Lane Development, Inc. 16380 Addison Road Addison, TX 75001 972-380-5900 Fax 972-380-5960
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Profiles
Paul Foster, President and CEO
Paul Foster has served as Western Refining, Inc.’s President and CEO since forming the Company in 1997. His professional
experience has been primarily in the oil and refining business, encompassing all facets of the industry.
After graduating from college, Mr. Foster worked for Southern Union Refining Company, Pride Refining Company and
KPMG Peat Marwick. In 1990, he was hired to start up an Arizona marketing operation for El Paso Refinery (EPR). After
EPR filed for bankruptcy in 1992, Refinery Holding Company (RHC) was formed to acquire and operate the assets.
Mr. Foster became Vice President and General Manager of Border Refining Company and was responsible for managing
the activities of RHC. Mr. Foster then formed Western Refining, Inc. in 1997, and subsequently purchased RHC in 2000.
Western Refining is publicly traded on the New York Stock Exchange and is one of El Paso’s leading businesses.
Mr. Foster holds a BBA in accounting from Baylor University, and is a Certified Public Accountant (CPA).
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Profiles
James R. Feagin, President
Mr. Feagin, a well-known name in Texas real estate development circles, has successfully initiated and completed an impressive
number of developments over the last ten years, including direct brokerage activity. His roles in real estate development include
investor, principal and project manager. Mr. Feagin directs the development activities from acquisition through development,
operation and sale of single-family, multifamily and commercial projects.
Brokerage Activity
• Almost 30,000 acres of raw land valued at $500 million acquired and sold for single-family, multi-family, commercial
and/or mixed-use purposes.
• Sale of over 15,000 residential lots valued at $425 million during the same period. Brokerage activity was located exclusively
in Texas, primarily in the Dallas/Fort Worth Metroplex.
Development Activity
• Experience includes single-family residential, multi-family residential, commercial and mixed-use property.
• Mr. Feagin’s role in development activities includes Scarborough Lane Development, Inc. (owner), Republic Property
Group (affiliate), Landmark Interests (owner), James R. Feagin Company (owner), and RCS Investments (affiliate).
• Total costs of these developments exceed $170 million with projected revenues of more than $300 million. All the projects
have resulted in an actual/projected internal rate of return of at least 20 percent and some range upward to over 100 percent.
The above summary excludes pre-1990 projects including the 6,250-acre Stonebridge Ranch master-planned community
where Mr. Feagin’s involvement began in the mid-80’s brokering raw acreage purchases. His involvement continued through
the infrastructure period that installed roads, utilities, parkland, golf facilities, swim club and the first villages or subdivisions
in the initial 3,500-acre portion of the community.
Stonebridge Ranch is the largest master-planned community in the Dallas/Fort Worth area, the first major development of
its kind in North Texas and a highly successful project that made national news through its founder (RCS) and subsequent
owners, including Mobil Land Development.
Mr. Feagin is a licensed real estate broker and a graduate of Texas Tech University (BBA Real Estate Finance).
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Profiles
Jack T. Tate, Vice President
Mr. Tate oversees finance, construction management and operations for development projects. His diversified experience
includes infrastructure construction and rehabilitation, general construction, real estate joint ventures, oil and gas exploration
and production and pipeline construction and management. His experience includes involvement as a general partner in more
than 100 limited partnerships.
Mr. Tate is a graduate of the University of Texas at Austin (BBA Accounting) with more than 25 years of diversified financial
and operational experience as Chief Financial Officer or similar capacities for Santa Fe Snyder, Placid Oil Corporation and
American Exploration. He earned his Certified Public Accountant designation during his tenure at Price Waterhouse.
Bruce D. Browne, Director of Business Development
Mr. Browne is responsible for the financial and feasibility analyses of projects and brokerage opportunities for both acquisitions
and sales. He prepares or coordinates the economic analysis, purchase contracts, lot sales contracts and project financings for
the projects. Additional duties include due diligence and feasibility analysis on potential land acquisitions.
A graduate of Texas Tech University (BBA Marketing), he has more than 18 years of real estate brokerage and management
experience. Prior to joining this group, Mr. Browne was Vice President of Realty Capital Corporation with responsibilities for
financial and feasibility analysis of projects, construction management, site planning and property management from 1989 to 1997.
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Profiles
Ryan Burkhardt, Controller
Mr. Burkhardt oversees project budgeting, accounting, administrative organization and monthly operations and financial
reports. His public accounting experience at Ernst and Young focused on real estate clients including Trammel Crow.
He is a graduate of Texas Tech University (MS Accounting) and is a Certified Public Accountant.
Reid Wilson, Project Manager
Mr. Wilson is the project administrator and completes/compiles construction schedules, budget updates, accounting, sales
reports and monthly operations and financial reports. He has more than ten years of experience in real estate accounting
and asset management for single-family projects and light industrial. He is a graduate of Texas A&M University (BBA
Accounting) and previously worked for Crow Holdings and MacFarlan Real Estate Services.
Joe Rivera, Market Analyst
Mr. Rivera has coordinated the market analysis of the single-family residential market in the Dallas/Fort Worth Metroplex
for the last ten years. He maintains a database of more than 590 subdivisions in 24 different cities throughout the Metroplex.
Data is obtained through physical on-site reviews of each subdivision on a 70-day rotation and from monitoring the planning
and zoning activity in each of the 24 cities.
This database includes the number of lots, new home starts and future lots. Information is available by lot size, house size,
builder, price range and geographical location. Specific market analyses are prepared for each market, outlining sales activity,
velocity, turnover, quantity of months supply remaining, etc.
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Team Capabilities
Carter & Burgess
In recent years Carter & Burgess has emerged as the standard bearer of excellence in engineering, architecture and planning. Founded
in 1939 in Fort Worth, Carter & Burgess has grown to rank among the nations top planning and engineering firms. The company’s
evolution into an industry icon can be directly tied to several leadership initiatives:
• Its highly renowned ability to assemble multi-disciplinary projects teams that provide specialized attention and service
• A combined staff resource of more than 3,000 professionals in 36 offices throughout the nation
• Six decades of practice resulting in a solid foundation of experience and technical expertise
• One unified message from top to bottom of our corporate body – integrity, excellence and quality
The foundation of Carter & Burgess’ successful Texas operations may be attributed to its focus on successful land development based
on sensitivity to the land and an understanding of the monetary value of time. It has built a reputation for providing prompt service
and creative, cost-effective design solutions to clients through teamwork and multidisciplinary capabilities.
The firm provides a full range of services to assist in developing property, from single-phase projects to master-planned communities –
proven with the portfolio of highly applauded projects listed below. Services include:
• Fully coordinated land development services
• Ensured success through partnership with developers, land owners, brokers, end users and government officials
• Projects that proceed quickly and efficiently via experience with the development process and our relationships with local officials
• Widespread local resources in Austin, Dallas, Fort Worth, Houston, San Antonio, Las Vegas and Phoenix to name a few
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Team Capabilities
Carter & Burgess (continued)
Carter & Burgess’ wide range of service areas include:
• Land Development
• Surveying
• Urban Design and Planning
• Management and Specialized Services
• Retail and Distribution
• Environmental
• Facilities
• Design Visualization
• Transportation
• Acoustics, Theater, and Audio/Visual Systems
• Public Works
• Geographic Information Systems
• Construction Management
Key practice areas focus upon single-family, multi-family, commercial/mixed use, corporate campus, business parks, industrial sites,
resorts and recreational complexes. This diversity of projects is matched with a similar diversity of capabilities and expertise:
• Site selection
• Surveying & construction staking
• Planning and zoning
• Landscape architecture
• Theming
• Wetlands
• Feasibility studies
• Permitting
• Environmental site assessment
• Flood studies & permitting
• Utilities & infrastructure planning
• Traffic engineering
• Engineering
• GIS
• Platting
• Development information management
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Team Capabilities
Carter & Burgess (continued)
Team leaders include:
Scott Bussell, P.E., Unit Manager, Home Development - Dallas, TX
Mr. Bussell offers diverse experience in the management of land development and public works projects. Responsible for roadway,
water and wastewater, storm water management and traffic projects, including signal networks, he oversees projects for land and site
development, master planning and capital improvement programs. His in-depth knowledge in regulatory compliance and codes is
applied to the highly successful design and development of commercial and residential developments.
Bryan Powell, P.E., Senior Project Manager, Land Development - Dallas, TX
Mr. Powell specializes in design and management of land development projects. His diverse experience in the design and construction
of water distribution systems, wastewater collection systems, drainage systems and roadway facilities is a key factor in our solid reputation
of success. Mr. Powell has managed several master-planned communities including the design, planning, and entitlements.
Brian Adams, ASLA, Senior Planner, Urban Design and Planning - Dallas, TX
Mr. Adams’ particular expertise in urban design, as well as site design of public spaces, parks, and gardens, results from years of experience
as a designer and project manager in high profile projects both locally and nationally. He has managed all phases of design from analysis to
construction implementation on award-winning projects that include major urban design and mixed-use projects, campuses and regional
and urban parks.
Chris Patterson, AICP , Planning Manager, Land Development - Dallas, TX
Mr. Patterson is responsible for master planning and designing land development properties, including master-planned communities
and residential communities with preliminary golf course layouts and landscape architectural themes. He produces due diligence
reports, land-use plans, rezoning narratives, lotting and building footprint studies and sees projects through the entitlement process
into preliminary and final platting. Projects range from hundreds up to several thousands of acres.
Chuck Haynes, ASLA , Senior Landscape Architect, Urban Designs and Planning - Dallas, TX
Mr. Haynes headquarters at Carter & Burgess Urban Design & Planning studio in Dallas. He provides vast experience in single-family
residential design and his work reflects an intimate, detailed design approach. Past project work follows a broad range spanning from
commercial, educational, hospitality, industrial, and religious to multi-family and single-family residential.
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Team Capabilities
Carter & Burgess (continued)
Carter & Burgess knows El Paso well, as noted through these successful local projects: Chipita Park Road Bridge Replacement,
Curtis Road Safety Improvements, IH-10 and Loop 375 (Americas Interchange).
Completed master-planned community projects similar to the El Paso master-planned community include this partial list:
• Travis Ranch (Dallas)
• La Villita (Las Colinas, Texas)
• Trophy Club (D/FW Metroplex)
• Trinity Falls (McKinney, Texas)
• Aventerra (Southlake, Texas)
• Villages of Mustang Creek (Waxahachie, Texas)
• Country Lakes Master Plan (Argyle, Texas)
• Bear Creek Ranch (Lancaster, Texas)
• Lincoln County Master Plan (Mesquite, Texas)
• North Las Vegas Master Plan (Las Vegas, NV),
• Orchards of Highfill (Highfill, Ark.)
• Ladera (Maricopa County, AZ)
• Sun Valley Villages (Buckeye, AZ)
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Team Capabilities
Anderson Hanson & Blanton
Anderson Hanson & Blanton is a full-service advertising, marketing and public relations agency specializing in Residential Marketing.
Since 1986, Anderson Hanson & Blanton has built an impressive set of credentials based on the solid professional experience of its staff,
quality of work and most importantly, results. The corporate clientele Anderson Hanson & Blanton has worked with represents numerous
service and product categories, including residential and commercial real estate, healthcare, package goods, banking, retail, tourism,
restaurants and telecommunications.
Ana Blanton
Ms. Blanton has worked in the public relations/advertising field since 1991 and joined Anderson Hanson & Company in l994. She was
named Vice President in l996 and became an agency partner in 2003.
Specializing in residential and commercial real estate, Ms. Blanton directs some of the agencies largest accounts resulting in numerous
national, state and local awards for outstanding marketing. Other areas of expertise include the retail, high-tech and healthcare industries.
Fluent in Spanish, Ms. Blanton created Anderson Hanson & Blanton’s Hispanic Marketing Division to help home builders and developers
target the Hispanic market. She established “Primera Casa”, the first Hispanic Home Buyers School sponsored by the HBA of
Greater Dallas.
Prior to joining Anderson Hanson & Blanton, she was the marketing coordinator for Trendmaker Homes. She also worked for Boswell
Byers, one of the top real estate advertising agencies in Houston.
Ms. Blanton holds a B.A. in Journalism/Public Relations from Texas State University.
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Team Capabilities
Quantum
Quantum Engineering Consultants, Inc. is a professional civil engineering firm offering services to both public and private sector clients
throughout West Texas and Southern New Mexico.
“We combine the capabilities of a major technical firm with the personalized services of a small office,” says Robert Gonzales, P.E.,
President and Principal in Charge. A resident of El Paso who earned his degree in civil engineering at the University of Texas at
El Paso, Mr. Gonzales’ roots are deep here, and his professional experience and networks are equally entrenched in southwest Texas.
His leadership team includes Gilbert Saldana Jr., P.E., Senior Design Engineer and Resident Project Representative; and Ernesto Salcido,
EIT, Junior Design Engineer and Resident Project Representative. “Our project approach emphasizes client involvement, project
requirements, regulatory compliance, economic feasibility and timely completion,” notes Mr. Gonzales.
Additionally – and importantly – Quantum has strong knowledge and recent design experience of Smart Growth/New Urbanism types
of development, an intimate knowledge of the City of El Paso’s Design Guidelines, and an excellent performance record on engineering
projects of similar size and complexity.
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Team Capabilities
Bohannon Development Corporation
Bohannon Development Corporation’s professional mandate is to serve two customers: their investors and their property residents.
“Our job is to bring the different needs and motivations of both into balance,” is the professional philosophy of Tom Bohannon,
President/CEO, and his team of highly respected leaders.
The Bohannon management team, headquartered in El Paso for over 25 years, includes Robert Munsterman,, Senior Vice President,
who brings a strong construction background to his work; Sam Creighton, Vice President of Property Management, a development,
financing and property management professional; and Dan B. Dawes, Vice President of Development, whose background brings
strengths in real estate and commercial finance.
Most importantly, the team as a whole has a history in the Southwest and a vested interest in the best possible future for the land and
the people. “Quality is our fulcrum and our people provide the leverage to achieve and maintain the balance – resulting in success for
all involved, and particularly for the end-user – the residents.
Success stories in El Paso alone include Las Ventanas Apartments, Puerta Villa Apartments and The Pointe Apartments plus even larger
projects in Los Angeles, Tucson, Colorado Springs, Vail and Beaver Creek, Colorado.
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Local Participation
Financing for this project is based in El Paso with significant development resources also expected from the El Paso area. The principals include:
• Equity – Paul Foster, an El Paso community and business leader, will provide the equity capital for the project. Mr. Foster is committed to the design and development of a
project that respects the land, the community and the culture of El Paso.
• Debt Funding – Bank of the West – El Paso has a strong interest in providing financing for this project.
• Local development partner – Bohannon Development Corporation based in El Paso provides design, development, financing and construction of multifamily housing in the
Southwest Region.
• Engineering team – Quantum Engineering (Led by Robert Gonzales)
• Residential construction labor and sub-contractors – El Paso’s local home-building community and contractors are projected to provide the single family residential
construction and development infrastructure capacity. Our historical relationship with regional and national builders will provide additional capacity, if required. We fully expect
the majority of the single family construction to be provided by local builders.
PSB Program Requirements
Scarborough Lane Development, Inc. is aware of the Historically Underutilized Business initiative and is involving our team of firms to specifically target this initiative. We are
committed to employing local services and suppliers, including minority and female-owned businesses. Our team includes Quantum Engineering and Anderson Hanson and Blanton
based on their experience and qualifications. These firms may also qualify for this initiative.
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Overall Financing Capabilities
As is typical in the Real Estate Industry, a single-asset, single-purpose entity will be created between Scarborough Lane Development, Inc.
and Paul Foster to purchase and develop the targeted property. Paul Foster, and his related entities, will provide the equity for this
project. Bank of the West - El Paso will provide the remaining financing. Mr. Foster and the Bank of the West - El Paso have worked
together for many years financing projects in the El Paso area.
Scarborough Lane Development, Inc. has financed many large projects of the size and scope presented here. A recent example of a
current project is Travis Ranch; with $115 million of total financing and $75 million funded to date.
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Completed/Current Projects
Scarborough Lane Development’s Recent Development Projects
Travis Ranch Development, Kaufman and Rockwall Counties, Texas. This 2,400 acre master-planned community 20 minutes
from downtown Dallas was a working ranch until our purchase in May 2002. The site had no water or sanitary sewer service.
Three Municipal Utility Districts (MUDS) were formed to finance the water, sanitary sewer, and storm drainage infrastructures.
City of Dallas approved the plats for initial phases of more than 3,400 single-family residential units. The first four phases of 1,288
lots are complete along with the spine road, a 3.5 acre amenity center and seven acres of green space and landscaping. More than
$6.6 million in MUD reimbursements have been received.
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Completed/Current Projects
DeSoto Ranch, Desoto, Texas. A 217-acre master-planned development with single-family, multi-family, schools and parks. A planned-development ordinance was
obtained for 50-foot single-family lots, estate lots and the first multi-family zoning in DeSoto since the early 1980s.
• Phase 1, consisting of 116 single-family lots, was completed in seven months in early 2002.
• The second phase of 135 single-family lots was completed in six months during 2003.
• The third phase of the single-family site (estate lots) was completed in 2002.
• The multi-family tract consists of 600 units with 282 units completed in late 2002 with the remaining paper units sold in 2004.
• Additionally, an elementary school site was developed for the DeSoto Independent School District including off-site improvements
such as access roads, water, storm drainage and sanitary sewage.
ELEMENTARY
SCHOOL
FUTURE
DEVELOPMENT
PHASE I
PHASE II
MASTER PLAN
DESOTO RANCH
DESOTO, TEXAS
March, 20, 2007
Drawing name: I:\PLA\Jake\Desoto Ranch\EXHIBITS\LAND PLAN\3.20.07\COLOR.dwg
Plotted on: Mar 20, 2007 - 3:35pm
0
100 200
400
800
NOTE: This plan is diagrammatic only and is intended to show potential
configuration. This plan is only conceptual and is not based upon a detailed
survey of existing site conditions such as property limits, subsurface conditions,
limits of trees, topography, utilities, easements, etc. March 20, 2007
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Completed/Current Projects
Lone Star Addison Office Park, Addison, Texas. A multi-acre commercial project with six planned office buildings (three of which
are complete), project began in 2005 and included site planning and development as well as construction of the office buildings.
Hidden Creek, McKinney, Texas. This 45-acre tract was developed into 142 single-family lots including 33 lots with creek frontage.
Project started in January 2000 and was completed in August 2000. All lots are sold.
Somerset, McKinney, Texas. Part of Stonebridge Ranch, this master-planned community is surrounded by the new West Ridge Golf
Course. The 20-acre development includes 99 lots with almost half overlooking the golf course. Completed in August 2001; all lots sold.
Summer Glen, McKinney, Texas. This village, part of Stonebridge Ranch’s renowned master-planned community, is surrounded by
the new West Ridge Golf Course. The 13-acre development has 73 lots with all but 12 backing up to the golf course or a greenbelt
area. Project completed in July 2001; all lots sold.
Polk Street, DeSoto, Texas. Construction of a six-lane street tapering to a four- lane divided thoroughfare for the City of DeSoto.
Completion in January 2002 was ahead of schedule and substantially below budget.
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Light Ranch
Completed/Current Projects
McPherson Ranch, Fort Worth/Tarrant County, Texas. A 226-acre tract initially located in the ETJ of Fort Worth. The partnership
simultaneously zoned and annexed the property into the City of Fort Worth in October 2001. Zoning includes a total of 804 singlefamily residential lots consisting of 660 50-foot lots, 144 60-foot lots and 2 commercial tracts. In February 2002, the residential portion
was sold to a major production builder. The remaining 32 acres of commercial is zoned for uses to accommodate a major grocery tenant
and pad sites.
Lakes of Bird Fort, Arlington, Texas. This 1,843-acre tract was re-zoned for 1,950 50-foot single-family residential lots, 150 acres of
community service/retail and 161 acres of light industrial. The city agreed to form a Tax Increment Reinvestment Zone to reimburse
the developer for extraordinary development costs.
Light Ranch, Collin County, Texas. This 1,200-acre tract is southwest of Celina, Texas and consists of 365 acres of commercial and
light industrial and 2991 single family lots. A Municipal Utility District was formed for reimbursement of development of water and
sanitary sewer costs including a sanitary sewer plant pump stations and elevated water storage. Additionally, we worked with Collin
County and the North Dallas Tollway on the alignment of the North Dallas Tollway extension and dedicated 75 acres within the
property for the Tollway extension.
Lakes of Bird Fort
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Creativity in Structuring Public/Private Arrangements
Scarborough Lane Development Corporation has the demonstrated ability of working with public entities for creative financing of public infrastructure.
Accomplishments include creation and/or completion of the following:
• Four Municipal Utility Districts (Collin County MUD No. 1 and Kaufman County MUDs No. 5, 6 and 7)
• A Tax Increment Reinvestment Zone (with Tarrant County and the city of Arlington)
• A Fresh Water District (Harris, Montgomery and Liberty Counties in progress)
• Working relationship with six cities, six counties, two regional water districts and the State of Texas to finance infrastructure
projects and meet the requirements of both the public entities and our development
• Funded projects with a 24-inch water main, 24-inch sewer main, lift station, water storage and pumping facilities, as well as regional
interceptor and processing participation
• Sale of $9,030,000 of bonds with applications in progress for an additional $9,545,000
We remain actively involved in development and funding activities in all but two of these districts.
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M A S T E R - P L A N N E D
P L A N N I N G
A N D
V I S I O N
The Villages
OF LAS LOMAS
C O M M U N I T Y
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E L
P A S O ,
T E X A S
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VISION AND PLANNING
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ORGANIZATION AND QUALIFICATIONS