SOBOBA SPRINGS:
A DEVELOPMENT ANALYSIS
by
William Henry Johnson
Bachelor of Science in Civil Engineering
University of California at Berkeley
1973
Master of Engineering in Construction Management
University of California at Berkeley
1976
SUBMITTED TO THE DEPARTMENT OF
URBAN STUDIES AND PLANNING
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF THE DEGREE
MASTER OF SCIENCE IN REAL ESTATE DEVELOPMENT AT THE
MASSACHUSETTS INSTITUTE OF TECHNOLOGY
AUGUST, 1986
William Henry Johnson
1986
The author hereby grants to M.I.T. permission to reproduce
and to distribute publicly copies of this thesis document in
whole or in part.
Signature of the author-J
Wiliianjfienry Johnson
Department of Urban Studies and Planning
August, 1986
Certified by
Gary Hack
}rofessor of Urban Studies and Planning
Thesis bpervisor
Accepted by
James McKellar
Chairman
Interdepartmental Degree Program in Real Estate Development
1
Soboba Springs:
A Development Analysis
by
William Henry Johnson
Submitted to the Center for Real Estate Development on August
15, 1986 in partial fulfillment of the requirements for the
Degree of Master of Science in Real Estate Development.
ABSTRACT
This thesis reviews the development options for a specific
site, Soboba Springs, in San Jacinto, California.
The
developer's current plans as well as alternate development
scenarios are reviewed, and proformas that reflect phasing in
response to anticipated absorption rates are used to select
scenarios.
The use of the site is shaped by existing easements,
environmental constraints, market trends, zoning regulations,
and the political structure of the community.
There are
significant off-site infrastructure costs associated with the
project, and the section on uses and sources of funds looks
at the method of public financing for these costs.
Finally, the benefits and risks to the participants of the
proposed development plan are analyzed, and an outline for a
written understanding between the City and developer is
recommended.
Thesis Supervisor: Gary Hack
Title: Professor of Urban Studies and Planning
2
ACKNOWLEDGEMENTS
Gratitude is extended to the many individuals who shared
their knowledge and perspectives and without whom this thesis
In particular, I would like to
would not have been possible.
thank the following individuals:
Thesis Advisor
--
Gary Hack
M.I.T. Faculty
--
Bernard Frieden, Michael Wheeler
Bradley Olson, Kieth Greer, Dan Tonini
The Irvine Company -D & S Company --
Peter Sidlow, Wayne Avrashow, Al Chamberlain
City of San Jacinto
Willdan Associates
---
Brian McNabb
Gary Dysart
Centre City Development Corporation --
3
Gerald Trimble
TABLE OF CONTENTS
Page
Number
TITLE PAGE
1
ABSTRACT
2
ACKNOWLEDGEMENTS
3
TABLE OF CONTENTS
4
LIST OF FIGURES
9
I.
INTRODUCTION AND SUMMARY
A.
General Statement
B.
Summary of Major Issues
C.
II.
10
1.
Earthquake and flood zones -- is the
site
suitable
for
residential
development?
12
2.
Existing
usage.
site
13
3.
Identity
of
market
-- retirement
community for the "active senior".
13
4.
Existing
trailer
park
opposition and detriment.
potential
13
5.
Phasing of development -- testing the
rates,
absorption
market,
watching
interrelated benefits of components.
14
6.
Risks of delays -developer.
the
14
1.
The current plan -- site improvement,
build first phases and sell land for
Scripps Clinic,
development by others.
shopping
facility,
care
congregate
center.
15
2.
-alternative
An
increase benefits.
1
easements
that
shape
--
to the City and
Opportunities for Development
Master
plan
to
BACKGROUND ON PROJECT
A.
The Site Context
-Location
1.
Riverside/San
4
Bernardino
1s
Counties; Hemet/San Jacinto Valley.
2.
--
Project
the
of
Description
Soboba
26
Springs; 7th Street; Butzen Property.
3.
--
Setting
Environmental
Geology;
32
Temperature; rainfall; smog.
4.
Climate
5.
Economic Growth and Trends -- Florida
Avenue - "richest street in America";
--
28
hydrology.
seismicity;
topography;
33
demand for housing and retail.
6.
Demographics --
Regional distribution of
35
population; age; household composition;
social trends; income and employment.
7.
Freeway system; Ramona
Transportation --
38
Expressway; airports.
8.
Easements that shape the site plan.
9.
Politics
--
Hemet
vs.
San
38
Jacinto
-
40
competition for land and revenue; Movers
and Shakers.
B.
History of Ownership --
D & S Company;
Daon;
Annexation from the County of
the City of San Jacinto.
C.
III.
Riverside
45
to
The Developer's Plan
1.
The Villages and Phasing.
49
2.
Critical Assumptions.
50
ALTERNATE DEVELOPMENT PLANS
A.
Market Analysis
1.
User
Profiles
community
development.
2.
Housing
--
Inventory
families;
oldsters,
participation
--
in
52
product
volume and
growth
53
of the housing stock, by location, type
of
identification
prices,
and
comparables.
3.
Retail Inventory --
Sales data in
Hemet
54
and
55
vs. San Jacinto.
4.
Inventory
Hotel/Motel
5
--
Capacity
growth of transient residential
by location, number of rooms,
amenities.
5.
Medical Services Inventory --
6.
--
Competition
Hospitals,
55
medical
services,
medical
clinics,
supply outlets.
stock,
price,
and
identification
56
proposed
of current and
assessment
on
centers
housing projects; shopping
Florida Avenue.
7.
Summary Conclusions --
opportunities,
further study.
B.
C.
D.
IV.
identify areas of
risks,
unknowns
59
for
Alternate Development Strategies
1.
The importance of the golf course.
2.
Specific
parcel.
development options
for
61
each
65
Design Criteria
1.
Site design criteria.
67
2.
Architectural design criteria.
71
Phasing of Development
1.
Be ready to sell at any time
development restrictions on land.
2.
A schedule of events.
with
71
73
SOURCES AND USES OF FUNDS
A.
The Impact of Proposition 13
75
B.
Public Financing Incentives
77
C.
1.
The Redevelopment Authority.
79
2.
Tax increment financing.
80
3.
Special assessment districts.
85
4.
Mello-Roos districts.
93
94
Private Financing Sources
1.
lending
Construction
developments; retail center.
6
--
Housing
95
V.
Developer equity -- Land acquisition/pay
down of seller financed notes.
96
3.
Investor equity --
96
4.
Investor equity -- joint venture
medical partner, banks.
5.
Private contributions --
6.
Land sales --
syndication.
with
foundations.
96
97
97
the safety valve.
ALLOCATION OF COSTS AND BENEFITS TO PARTIES
A.
VI.
2.
Proforma/Cost
Alternative
Estimate
Summary
for
each
99
1.
The developer's proforma.
2.
The city's fiscal impact analysis.
101
B.
Benefits and Risks of Development to City -Revenue to support services; quality of life;
follow through by developer.
102
C.
Risks of
and
Benefits
Developer -- carry cost;
time; diversification.
to
Development
long development
105
D.
Distribution of Costs and
Agreement:
Development
between the
understanding
Developer.
Returns -- The
written
a
the
City and
107
108
CONCLUSIONS
7
APPENDICES
Appendix 1
--
Associates
Soboba
Market Analysis:
Building permits; Comarc survey
survey;
of competition.
111
Appendix 2
--
Development Fees and List of Permits.
114
Appendix 3
--
methods of Public Assistance:
Other
Block
(Community Development
Federal
Grants, Urban Development Action Grants,
Eminent domain;
Investment Tax Credit);
Land lease; Shared land cost; Land cost
Industrial
write down; Tax abatement;
revenue bonds; Mortgage revenue bonds;
General obligation
General revenue;
guarantees/subordinated
Loan
bonds;
Tax
Lease revenue bonds;
financing;
taxes;
Special
bonds;
allocation
115
exactions
Developer
fees;
and
Rehabilitation districts.
Persons
in Hemet
and
San
124
Appendix 4
--
Influential
Jacinto.
Appendix 5
--
The Developer's Proforma.
129
Appendix 6
--
The City's Fiscal Impact Analysis.
147
8
LIST OF FIGURES
Description
Figure
Page
1
California
17
2
Los Angeles
18
3
Inland Empire
18
4
San Jacinto and Hemet
21
5
Growth Trends
23
6
Property Orientation Map
25
7
Earthquake Faults in the Valley
27
8
Flood Zones in the Valley
27
9
Claremont Fault Zone
29
10
Site Hydrology
29
11
Easements that Shape Site Design
37
12
Political Map of San Jacinto
42
13
D & S Company Annual Volume of Completed
Work
46
14
The Developer's Plan
48
15
Seven Hills Site Plan
57
16
Site Topography and Vegetation
62
17
Proposed Site Plan
64
18
Proposed Development Schedule
72
19
Illustration of Tax Increment Financing
81
20
San
of
City
Expenditures
9
Jacinto
Revenues
and
103
Soboba Springs:
A Development Analysis
by
William Henry Johnson
I.
INTRODUCTION
A.
General Statement
The instigation for the thesis topic came as a result of
in
conversations
Company
and
process
of
in
initiating a mixed-use development on a site
and
California,
Riverside County,
development
an independent assessment of appropriate
The project requires public/private negotiations to
options.
determine
The
use.
the
D & S Company is in
The Irvine Company.
the City of San Jacinto,
wanted
S
Los Angeles in late March 1986 with D &
project
and
financing of off-site infrastructure
City of San Jacinto is supportive of
development
that will increase City revenues and needed infrastructure.
Irvine
The
financing
California
impact
of
Company
for
infrastructure
covered
suggested
real
estate
several important topics
Proposition
Thus,
of
method
in
development
including
the
cities
and
13 on the ways in which
developers approach projects.
this thesis represents
an independent view of the opportunities,
presented
the
that
risks, and rewards
by development on a particular site to
city,
the
developer, and community-at-large.
The
specific project examined by this thesis is
a
462
acre site with an existing 18-hole golf course in the City of
San
Jacinto,
California.
The
parcels separated by the San Jacinto River.
Soboba
Associates
The
developer,
(a development entity including
10
three
of
project consists
D
&
S
uses
of
variety
commercial,
including residential,
components.
a
proposing
is
Company),
site
the
on
retail, and recreational
The developer is experienced in various forms of
residential construction,
departure
however, this project represents a
from previous projects both in scale and in length
of involvement.
The
City
of
San
Jacinto,
California,
will
be
instrumental in determining what gets built on the site.
The
City
evaluated
the options of either restraining growth
or
encouraging it within its boundaries and determined no action
would
lead
populace
to decline due to the low income
and
services.
the
increasing
costs
of
level
of
maintaining
city
Growth is occuring in the San Jacinto Valley, and
the City determined it should encourage this growth to
decline
and
the
and
avoid
guide the growth by determining what they
who they will support to develop it.
The City
want
of
San
Jacinto is supportive of development as a means to revitalize
the community.
One
project
support
major component of the development process for this
is the financing of the infrastructure
this
project
on
the
periphery
of
required
to
city.
the
Infrastructure includes all of the supporting services needed
for
a
project
categories.
roads.
civil
and
On-site
is composed
of
on-site
and
off-site
infrastructure includes utilities
Off-site infrastructure includes
works,
and
public
services
utilities,
needed
to
and
roads,
support
development, including schools, sewage treatment plants, etc.
11
Off-site
infrastructure
project
includes a bridge,
water,
sewer,
infrastructure
$8
million
developer
This
power,
the
fire station,
Soboba
Associates
and extension
of
and telephone lines to the site.
The
costs for this project have been estimated at
and were too costly for
in 1982,
to bear,
paper
site,
needed for
thus the site has remained
looks at what is suitable
alternative
site plans,
the
previous
undeveloped.
development
for
the
phasing of development,
and
methods of financing construction costs.
The infrastructure needed to serve this development will
also
serve other users.
The City does not have the general
to construct a bridge for a road that crosses a
funds
river
bed and has a current daily traffic volume of 3,000 trips per
day unless the construction is linked to new development.
B.
Summary of Major Issues
Earthquake and flood zones
1.
Is
the site suitable for residential development?
The
an active earthquake zone across the site
(The
presence
Claremont
of
Fault Zone) requires that no residential
areas
by
realigning open space (the golf
unsuitable
earthquake-prone
Structures
for buildings.
areas
reduce
be
This restraint has been
placed within fifty feet of a fault.
addressed
unit
the
course)
into
designed
for
risk
to
anticipated
"acceptable" levels.
The
San
Jacinto
River
portions of the site by levees.
end)
of
easement
the
restrained
is
over
this area.
12
flooding
The northern end (down slope
site is open to the stream
exists
from
bed
It is not
and
a
flood
practical
to
construct
unless
site
a levee to close this portion of the
there is provision for pumping water that collects behind the
planned
for
use to elevations that will provide safety
from
solution
The
residential
flows.
off-site
primarily from
during a rain storm,
levee
fill
to
is
suggested
areas
flooding.
easements
Existing
2.
easements restrain
existing
Numerous
shape
the site plan alternatives.
water
easements
since
they
provide
identify
development
and
sewer
and
The existing
as
restraint as well
already
utilities
in
opportunity
can be modified in response
easements
grading
plan and will have to be negotiated with the
access to
for
Easements
Riverside.
property
final
a
to
control
of
Flood
place.
County
located
between the golf course and the levee can be extinguished
by
acquisition of the property.
Identity of market
3.
Demographic
trends indicate the Hemet/San Jacinto
consists largely of a retirement population.
is
developed
preferences
for
school
as
an
adult
community,
of the occupants,
it
area
If the project
will
meet
the
as well as avoid expenditures
facilities estimated at $1.2 million by the
San
Jacinto school district.
4.
The
Existing trailer park
existing trailer park,
which is surrounded by
the
proposed development, was constructed in conjunction with the
private golf course twenty years ago.
13
The occupants of
the
trailer
park
perceive
additional development
as
diluting
their
amenity.
costs
for a bridge or other infrastructure that may
them
They
are unwilling to
as well as the new development,
without the bridge for a long time,
as
a requirement for additional
park
also
exists
boundaries,
Associates
process
and
leaves
land in question.
to
date.
benefit
development.
the
The
bridge
trailer
within
annexation
of
city
Soboba
The City is currently
In addition,
lived
and perceive the
as an island of county land
this
additional
since they have
of annexing the trailer park,
opposition
support
in
the
and there has been no
the
existence
of
the
trailer park limits the quality of adjacent development since
it is a "disamenity."
Phasing of development
5.
Although
the
Hemet/San
Jacinto area is
expanding
in
population at an annual rate greater than 7%, competition for
Phasing
housing development could expand at a greater rate.
of
development will permit construction to match
absorption
rates and avoid costly carrying costs of construction
Phasing
also
provides
an opportunity to test
adjust product to meet revised demand,
the
loans.
market,
and minimize the risk
of developing for the wrong market.
6.
Risk of delays
The schedule for land acquisition and ongoing
of
the
the
operation
golf course results in substantial cash outflows
by
schedule
is
developer.
If
the property
development
extended
by regulatory delays or community
carrying
costs
to
the
developer could
14
opposition,
make
the
the
project
and
uneconomic,
well
as
infrastructure
lose
would
city
the
as
revenues
To minimize this risk,
development.
creation
of
the
generated
by
new
a cooperative approach
between the developer, city, and community is called for.
C.
Opportunities for Development
current
The
1.
plan
first
The current plan by the developer is to build the
two
phases (called Villages) around the golf course and sell
land to builders for the remainder of the
plan
The
development.
is to sell the golf course to the city since it is
not
on
the
A
self-supporting.
Scripps
Clinic has been built
parcel on the opposite side of the river from the golf course
and
future
call
plans
for
development
congregate care center for the elderly.
of
adjacent
an
The third parcel is
zoned for commercial and residential uses, and the plan is to
sell
residential
portion
for an apartment
No
complex.
the
and
commercial portion for a shopping center
the
master
planning of the project is anticipated since it may delay the
initiation
of
development and restrict
future
development
options.
2.
An alternate proposal:
Master plan
By master planning the entire development, greater value
may
be
imputed to the project than if each
done separately.
for
the
permit
realized
site
greater
component
were
The City of San Jacinto zoning designation
is R-1 and options are
densities
available
on certain areas
than
if each area were developed individually.
15
that
will
would
An
be
R-1
requires minimum lot sizes of 6,000 square feet and
zone
density of 3.1 to 6.0 dwelling units per
overall
obtaining
Cluster Home Overlay Zone (C-H
a
an
acre.
By
for
the
Zone)
site, the net density can be raised to a maximum of ten units
acre,
per
over
55
however,
years
occupancy must be restricted to
of age,
and a
homeowners'
adults
is
association
required to maintain all common areas.
a Planned Unit Development Overlay District (PUD) is
If
established,
units
the permitted density is raised to 7.3 dwelling
per net acre with an increase to 8.0 allowable by
if
additional
common
Planning
Commission
provided
or dwelling units are clustered.
open
is
space
The common
under a PUD can be dedicated to the City
space
the
open
(subject
to
establishment of a lighting and landscape assessment district
to
finance
maintenance),
maintained by a property
owners'
association, or retained and maintained by the developer.
The absorption characteristics of the region suggest the
first
parcels
density,
and
be
this
developed
surplus
at
less
density
than
be
their
utilized
maximum
for
a
concentrated development on one site.
The Soboba Springs site has been divided into 6 areas or
Villages,
and the mainly residential development options for
each village are reviewed in detail in later sections of this
paper.
also
The
two parcels on the other side of the river
described in greater detail,
and the choices center on
retail/commercial uses or medical uses.
16
are
CALIFDRNIA
10
SITE LOCATION
Figure 1
17
LOS ANGELES
Sco.e
60 Miles
2
SITE
LOCATION
Figure 3
18
II.
BACKGROUND ON PROJECT
A.
The Site Context
1.
Location
a.
Riverside and San Bernardino Counties
east
and San Bernardino Counties are located
Riverside
of Los Angeles as shown in Figures 1, 2, and 3. National Real
site
a key
Investor magazine considers the Inland Empire,
Estate
Bernardino
convergence of San
the
at
Riverside
and
counties, to be one of the nation's burgeoning areas.
While loosely defined,
Inland
Empire
encompasses
it is generally agreed that
the
Riverside,
San
the
cities
of
Bernardino and Ontario and the land between them.
It is here
that explosive growth has been occuring in recent years,
and
the continued growth is spreading eastward into the Hemet/San
Jacinto Valley.
A
few years ago,
Chase Econometrics predicted the two-
county area would experience the highest percentage change in
population
growth in the nation and,
while that
trend
have responded to the ups and downs of the economy,
may
the boom
has continued.
While
containing
12%
of
southern
California's
population, the region has been responsible for nearly 27% of
the
area's
with commercial,
the
same
years,
home building activity in the last three
industrial and retail construction
furious pace.
keeping
The area is being fueled by
local
governments aggressively pursuing industrial development, and
a growing labor pool.
19
tax
bonds,
development
strategies
financing
various
through
increment
infrastructure
and
provided tax incentives
and
processing
permit
accelerated
have
city governments
and
County
industrial
as
such
financing
special
and
assessment districts.
Empire
Inland
The
to
seems
Orange
skyrocketing growth and good times that its neighbor,
County,
experienced
prices,
abundant
freeways
network of interlacing
a
and
infrastructure
facilities,
sewage
adequate
water,
land
low
The area has
15 years ago.
same
the
enjoying
be
and
railroads.
San
pressures
economic
from
benefitted
and Riverside counties have
Bernardino
and
higher
in
costs
land
the
neighboring counties of Orange, Los Angeles and San Diego.
prices for office development range from $40
land
found
in
in Los Angeles County;
ft.
$150 per sq.
ft.
National Real Estate Investor magazine
1986,
In March,
Orange County;
Bernardino
and $6 to $15 per
and Riverside counties.
land costs are $10 to $60 per sq.
Bernardino
development,
and
land
Angeles County;
$16 to $24 per sq.
ft.
sq.
in
San
For retail development,
ft. in Los Angeles County;
ft. in Orange County; and $3.50 to $ 10 in
$9 to $15 per sq.
San
to
Riverside
Counties.
industrial
For
costs are $6 to $12 per sq.
ft.
nearly the same in Orange County;
in
Los
and $2.75
to $5 per sq. ft. in the twin-county area.
Despite
of
the cyclical nature of housing,
the population
San Bernardino and Riverside counties jumped 20%
20
between
2600
2400
V
-b
21
-
4-
-
-
Houston
during the same period.
The
stands at
1.85
now
population
area
at 630,400.
employment
Dallas
faster than the rate of Phoenix,
and 1985,
1980
estimated
two-county
Of those jobs,
total
with
million,
or
112,300 fall in the
service sector, 110,800 in retail and 103,200 in government.
A Tale of Two Cities: Hemet and San Jacinto
b.
of
Cities
The
Hemet and San Jacinto
the San Jacinto Valley of Riverside County,
located
are
in
approximately 35
miles southeast of the City of San Bernardino and the City of
Riverside as shown in Figures 3 and 4.
Inland
the
of
outside
occuring,
is
development
Inland Empire fills in.
Empire,
however,
spill
shop,
of
the
as
Within 18 miles of Hemet, there are
These people make
Hemet
People come
the market center for central Riverside County.
to Hemet to bank,
over
and growth will continue
over 200,000 residents.
currently
This location is just
obtain medical attention, and while
in town, eat at least lunch or dinner.
City
The
of San Jacinto and Soboba Associates
project
area enjoy close proximity to major regional recreation areas
and
have
convenient access to Interstate
State Highway 10.
10
to
15
recreation
area
Highway
Both of these highways are located within
minutes from the
City's
downtown
area.
opportunities include the Idyllwild
approximately
and
15E
15 miles to the east,
Palm
Major
Recreational
Springs
43
miles to the east, San Bernardino Mountains to the north, and
beach
areas
such
drive to the west.
as Newport and Laguna within
a
one-hour
The City is also served by the Atchison,
Topeka, and Santa Fe Railroad (A.T.&S.F).
22
GRWTH
TRENPS
DAIRY
FARMS
+1
N
0
-J
S
0
SITE
LOCATION
-P
0
Commerclat
Growth
Florida Street
Residential
Growth
SCALE
1 rue
Figure 5
23
City
The
of
routes
bounded by the transportation
is
The
Sanderson Street, Ramona Expressway, and Florida Street.
Ramona
and the
section
new
of
end
in Figure 5 will be under construction by the
shown
The
northwest/southeast.
is being extended,
Expressway
Ramona
oriented
Boulevard
Jacinto
San
Main Street oriented east/west,
Street oriented north/south,
and
axes:
lies along three major
generally
City
1986.
founded in 1870, is the oldest
The City of San Jacinto,
incorporated community in Riverside County.
by
surrounded
farm
agricultural lands
and
with
have been several rapid growth periods.
continue,
the
now
San Jacinto is
the process of transition from an agricultural
and
there
During the last 30 years,
small town for many years.
years,
terrain
The City remained a stable insulated
to the west and south.
to more urban uses.
San
the
Mountains to the east and other mountainous
Jacinto
in
The community is
community
Despite the changes of the last several
increased development which is expected
to
large portions of San Jacinto are likely to remain
rural over the next 20 years.
This is particularly true
of
the hillside in the northern portion of the City.
The
City
of Hemet was founded in 1895 after water
Hemet fared
better
the earthquakes of 1899 and 1918 than San Jacinto
(which
available from the man-made Lake Hemet.
in
was
was
all
Retirees
but
levelled
twice)
and
outgrew
its
neighbor.
have flocked to Hemet due to its weather and
cheap
land prices, and they have deposited their savings locally to
24
NORTH
PROPERTY
ORIENTATION
MAP
Soboba Road
Vitlage 2
Ramona
Seventh
Street
Property
Figure 6
25
make Florida Avenue one of the richest streets in the country
in terms of bank deposits per resident of the city.
Description of the project --
2.
project site is composed of three parcels totalling
The
separated
acres
462
Springs,
Soboba
known as
and
consists of 396 acres of which 114 acres are mountainous
parcels,
former
property (23
Butzen
of
existing
are
These two parcels
San Jacinto and the river.
Street
for commercial use and 20 acres of the Seventh
zoned
the
and
acres)
Street property (43 acres) are between the
Seventh
city
the
western
The two
acres is for the 18-hole golf course.
123
in
shown
by the San Jacinto River as
eastern parcel,
The
6.
Figure
The three parcels.
property is zoned for residential use.
The
recreational
A
parcel
Springs
Soboba
existing
an
contains
course.
facility and 18-hole championship golf
manufactured housing complex owned by others is within the
boundaries of the parcel.
to
The hillside area is adjacent
the former Soboba Hot Springs Resort ( a celebrity attraction
in
1940's that was abandoned after a fire
the
a
ago),
homes,
and
an
annexed
two ranches owned by long time residents of the area,
This parcel has been
Indian reservation.
3
designated
to 6 dwelling units per
crossed
is
parcel
foot
City and is
the
into
(earthquake)
fifteen
custom
partially completed subdivision of hillside
development,
Springs
years
eight
and
by
the
for
acre.
Clarement
recently
residential
The
Soboba
Fault
Zone
protected from the San Jacinto River by
high
levee.
26
a
FLOOD
ZONE
N
8
N
27
3.
Environmental setting
a.
Land forms
south and north, and isolated island-
mountains to the east,
The valley is
much younger and softer sedimentary material.
with
filled
has
that
alluvium,
sand
rock,
eroded
surrounding mountains.
gravel
and
and
material,
as
known
the
from
down
washed
of
composed
portion of San Jacinto which is
eastern
the
in
of granite with the exception of Park Hill
composed
south
generally
Mountains and hills are
hills to the west.
like
with
valley
flat
relatively
broad,
a
by
characterized
is
setting of the Hemet/San Jacinto area
geologic
The
In the central portion of the valley
this alluvium material is 5,000 to 7,000 feet thick.
A topographic map of the region is included in Figures 7
This map clearly shows the two basic land form zones
and 8.
the
within
mountainous
and
the
the
i.e.,
area;
study
hillside
steep
broad,
north
the
area of the San Jacinto Mountains to
and
south.
flat San Jacinto valley area to the
The San Jacinto River follows the line of contact between the
and
mountains
the
valley.
The elevation
varies
from
a
maximum of 3,400 feet in the mountains to approximately 1,500
feet in the valley.
Seismic zone
b.
Jacinto
San
is
located
within
seismically active regions of California.
of
active fault zones in the area,
produce
a
potentially damaging
28
one
the
of
most
There are a number
any one of
earthquake.
which
The
could
Claremont
HYDROLOGY
Q10
= 670 cf~sCotu
0100 =1000 cfs
Ln
..
........ A
r
.....
~~~~ig
10............
THE
EARTHQUAKE
FAULT
ZIONE
Figure 9
29
Fault Zone crosses the project area as shown in Figures 7 and
9.
The
of
the
and is responsible for creation of the Soboba
Hot
main
mountains
San Jacinto Fault runs along the edge
Springs.
Structures
can
be
earthquakes of a given magnitude.
designed
to
withstand
As structures are designed
to withstand larger earthquakes, the level of risk decreases,
but the cost of construction increases.
concept
of
subjective
cost
and
hazards
an
"acceptable risk".
decision
Acceptable
based on a balancing of
the reduced
Specific
risk.
risk
the
is
a
increased
earthquake
related
ground shaking and movement;
include the following:
liquifaction;
This has lead to the
ground settlement;
and, land slides and slope
instability.
During a site investigation in July, 1986, an earthquake
of
magnitude 5.9 on the Richter scale with an
miles to the east of the site took place.
considerable ground shaking,
Geotechnical
investigations
penetrating radar,
40
epicenter
Although there was
no significant damage occurred.
are
in progress
using
ground
and results to date confirm the existence
and
of the fault within the area of the Claremont Fault Zone
no where else on the site.
c.
Hydrologic conditions
The San Jacinto area is drained by the headwaters of the
east.
This
drainage system eventually empties into Lake Elsinore.
Much
San
Jacinto
River
in
the mountains
to
the
of the San Jacinto Valley is situated at the elevations below
the
San Jacinto River and overflows may remain for weeks
months after the flood stage.
30
or
Eight significant floods have
Levees have
occurred along the San Jacinto River since 1931.
been constructed along the banks of the San Jacinto River
In 1980,
District.
Control
Flood
of Engineers and the County
Corps
Army
the
by
a portion of the levee on the city side
of the river was breached.
Recent studies by the U.S. Corps
Engineers have indicated the levees are able to contain a
of
The limits of the flood prone area are shown
100 year flood.
in Figure 8.
The Project area is outside of the flood prone
sides
due to the presence of the levees that line both
area
of the river as it crosses the project area.
There
are four points at which off-site flows enter the
systems and drainage swales can be incorporated into
culvert
landscaping
the
Box
10.
project area during rain storms as shown in Figure
plan to handle these
areas for development.
safeguard
and
flows
and are
Box culverts are expensive,
off-
The
only
recommended where they must cross roadways.
site
flow which starts in Village 2 and runs through Village
1
along
large
there
this
artificial
lake by a new culvert under
existing culvert under Main Street
The
in
the back of the levee should be diverted
is
into
Street.
Main
inadequate,
have been frequent reports of flooding of Main
front
of the trailer park during
rainstorms.
culvert will create additional expense,
it
the
and
Street
Although
will
make
more land available for use in Village 1.
The
northern
end of the golf course is at
elevation of the project,
off
the northern edge.
the
lowest
and the levee ends without closing
A flood easement to elevation
31
1566
site
flows,
edge
of
on
Due to the
has been placed on this portion of the site.
it has not been practical to close the northern
provide
To
site.
the
5 to 8 feet of fill is required in
approximately
pads,
building
usable
this
area
for Village 5.
Brush fire potential
d.
to
Due
northeast
the
the
mountains
the project area are covered with dry
of
of
most
during
conditions,
arid
in
investigation
the
summer
July,
During
months.
started
a brush fire
Road
nearby
North Mountain.
grasses
site
a
to
adjacent
on the Hot Springs property and spread
Soboba
the
to
the
up
The brush fire was contained by 250
on
the
were used as a source of water in fighting
the
fire
fighters after 15 hours of effort.
golf
course
The lakes
blaze, and airplanes dropping fire retardent also assisted.
should
consider
of a fire zone between buildings and the
mountains
of
Development
creation
the
hillside
area
(i.e., a 100 foot band of access road and low vegetation such
as ice plant that is kept well watered.
In
addition,
should be regularly trimmed of dead fronds,
trees
ingress
and
egress should be considered,
as well
palm
emergency
as
fire
hydrants along the mountain boundary.
4.
The
warm
Climate
climate
and dry,
in the Hemet/San Jacinto area tends to
and recently smog has spilled over
adjoining areas in Los Angeles.
32
from
be
the
AVERAGE TEMPERATURE
F
Max
Mean
Min
Period
HUMIDITY
RAIN
Inches
4 A.M.
4 P.M.
Noon
-------------------------------------------------------January
34.5
49.2
64.2
2.15
87
55
67
April
44.1
59.2
75.9
1.15
76
51
52
July
56.1
77.5
98.4
.10
81
31
35
October
46.7
64.8
83.4
.69
59
30
38
Year
45.1
62.4
--------------------------------------------------------
Jacinto
fruit
orchards,
and
small
community
pursuit.
Dairies,
major
a
ranches have provided
This has resulted in a
source of employment.
of
rural
has traditionally been a
agriculture being a major economic
with
48
40
76
12.51
Economic growth and trends
5.
San
80.2
preponderance
the
unskilled workers and lower socio-economic groups in
However, the composition of the Valley's economic
community.
base is moving away from agriculture.
cost
years
$68/acre-foot,
A
few
In
one
today it costs $309/acre-foot.
unionization of farm workers occurred.
ago,
water
Six years ago,
case, the Howard Rose Company, the company permanently closed
its
labor costs made production uneconomic.
the
because
after unionization occurred
nursery
increased
These trends lead to
conversion of large tracts of farm land into mobile home
parks and residential developments.
local
The
economy is currently based
on
agriculture,
trade and services primarily geared to the needs of a growing
population
incomes
of retired citizens with above average retirement
and
recreational
usually
manufacturing -vehicles.
available,
An
especially
abundant
particularly
33
for
mobile
supply
of
unskilled
and
homes
labor
and
is
semi-
skilled jobs.
ECONOMIC GROWTH AND TRENDS
1985
1984
1980
1970
1960
Year
n-------------------------------------------------
Population
County
Hemet
Jacinto
San
306,191
456,914
663,923
757,500
794,774
5,416
12,252
23,211
26,350
28,074
2,553
4,385
7,098
8,900
9,907
Taxable Sales
356,225
County
Hemet
San Jacinto
828,578 3,274,017
4,088,525
N.A.
12,013
39,920
148,251
238,614
N.A.
2,556
4,613
15,223
29,934
N.A.
Sales are in $000s
Note:
THE HEMET-SAN JACINTO LABOR MARKET AREA 1980:
San Jacinto,
Area consists of Hemet,
Gilman Hot Springs and
Idyllwild.
Area population:
Total emp loyment: 19,945
68,437
541
Agriculture, Forestry
1,123
Wholesale Tra de
Construction
1,903
Retail Trade
Manufacturing
2,386
Fin., Ins.,
Transp/Comm/Utilities
1,355
Services
5,441
Government
1,603
Source:
3,784
R eal Estate 1,809
U.S. Census 1980
Hemet
is
a well-known Southern California
growth
retirement community and a West Coast center for mobile
and recreational vehicle manufacturing.
middle
of
home
It is located in the
a productive agricultural area and is one of
principal gateways to the San Jacinto Mountains
34
and
the
recreational
The community has an active and growing retail sector.
area.
At
present,
there are three major shopping malls in
Hemet,
along with significant industrial development activity in the
Airport area.
Hemet-Ryan
a yearly cultural event depicting the early life of
Pageant,
the
Hemet is also home for the Ramona
location
Ideal weather,
Hemet Valley.
excellent
and
services help make Hemet one of the fastest growing cities in
as
and well-suited to the retired as well
County
Riverside
the active business or professional person.
Hemet is
Along with other
attracting
western
Riverside County cities,
younger
families from the counties to the north,
many
due mainly
to more reasonable housing costs there.
While the employment base has been
has
growth
continued since the majority of retirees do
further employment.
seek
demand
creates
population
limited,
Instead,
services
for
retirees
the influx of
(especially
those
not
that
are
medical related) and, jobs for the younger individuals in the
population.
In the larger region of Riverside County, population has
been increasing faster than job creation which,
Macheski,
Dennis
manager
of
the
according to
Southern
California
Association of Governments' (SCAG) development guide program,
means
of
greater
and more of a dependence on Orange and Los
Angeles
county
the
commutes
is "moving in the
direction
counties."
6.
people
to
on fixed income with governmental support and many
in
Senior
those
Demographics
citizens
range from wealthy retired
35
the
last
30
years,
the
annual
average
between.
Over
population
growth rate in San Jacinto has been between
and
with the higher rates associated with more
5.8%
Over that same thirty year period,
years.
has largely been of older individuals,
3.7%
recent
the in-migration
and it is only in the
last few years that younger families are on the increase.
Based
on
Riverside
County
population
estimates
January 1, 1985:
Hemet
28,074
Population
San Jacinto
9,907
Ethnic Background
Anglo
Hispanic
Other
84%
66%
6%
30%
10%
4%
Age Grouping
0 -
24
7%
39%
25 -
34
17%
12%
35 -
44
13%
8%
45 -
54
12%
8%
55 -
64
17%
10%
65 and Over
34%
23%
Male
44%
N.A.
Female
56%
N.A.
Under $25,000
87%
99%
$25,000 to $49,999
11%
1%
2%
0%
Sex
Income
$50,000 and Over
36
for
EASEMENTS
THAT SHAPE
SITE DESIGN
Existing
EMVD
Vater
Line
Existing
EMV D
Se
Lin
..................
... .....-.
e...
-.. ..-...
Elevation 1566
Flood Control
Easement
Flood
Control
Access
Flood
Control
Access
Figure 11
37
Transportation
7.
Ontario
AIR:
Los
International Airport (owned and operated
by
northwest,
is
Angeles International Airport) 45
by AirCal,
served
Western
United,
TWA,
PSA,
Sun
Republic,
Hemet-Ryan Airport
Airlines.
foot
4,300
owned) has general aviation facilities,
(County
American,
Airlines,
Alaska
Inland Empire,
Imperial,
Continental,
Aire,
Air Cortez,
miles
runway.
RTA bus to Riverside, Sun City and Perris.
BUS:
California
HIGHWAYS:
74
east-west,
California 79
north-
connections 12 miles west to 1-215 north-south and 13
south,
miles north to California 60 west and I-10 east-west.
Easements that shape the site design
8.
There are numerous easements affecting the site as shown
in
Figure 11,
development
and the easements that restrict the project's
potential or have been considered
in
preparing
the alternate site plans are as follows:
Riverside County Flood Control
Prior
The existing levee was constructed in two phases.
the levee protected only the existing trailer park,
to 1960,
and
which
a county flood control easement was placed on
gives
the
Flood
restrict development.
the
Control
Later,
easement was not removed,
wanting
to
easement.
Department
the
Access
easements
right
to
extended,
when the levee was
apparently due to the
be reimbursed for funds expended to
area
the
County
obtain
the
of
the
exist along the backs
levees on both sides of Main Street, and this thesis proposes
38
roads be oriented to follow these easements to
site
paved access as well as site circulation.
of
the
Street
Main
approval,
Bridge
will
The
require
construction
Control
Flood
redesign
this also creates an opportunity to
and
provide
the bridge to allow for an underpass between Villages 1 and 2
access is blocked by the existing
where
easement No.
park.
trailer
An
20 (1566 Contour Line) exists that requires all
building pads be constructed at least at an elevation of 1567
for
from flooding,
safety
and this will
affect
primarily
Village 5 which will require up to eight feet of fill in some
areas.
Althouse Property
the
Mrs.
is owned by a local resident,
levee
and
course
ten acre parcel of land between the golf
A
Looten.
Van
Mrs.
Van Looten is in her late eighties and has no desire to
sell
the
property
Villages 3 and 4 to Soboba Road.
an
for
it
or the access rights to
that
cross
She has previously rejected
offer to purchase the property which included a new house
this
around
piece
must
Site circulation
on the site.
her
of property with
proformas
are
residual
land
included
value
of
for
provision
Two
expansion if the property becomes available.
in Appendix 5
which
the property to
designed
be
future
alternate
estimate
range
from
the
$1.2
million to $1.4 million due to its vital location in blocking
development of other units to the north of it.
Eastern Municipal Water District
Sewer and water easements exist across the property that
connect
the existing trailer park and hillside properties to
39
or EMWD systems.
City
and
A well for EMWD water supply
The
sewage lift station also exist on the golf course site.
and an increase
500,000 gallon water storage tank.
to
additional
an
is expected to require
density
that
been
already
have
for an 800 unit development,
determined
double
costs
associated
and
infrastructure
a
The water tanks would be
sited on the hillside area, even though there is some concern
regarding proximity to the earthquake fault zone.
EPM Soboba
This entity controls easements relating to the
existing
landscape
easement
park
trailer
the
around
call for a ten foot
that
perimeter of the park,
to
access
home
mobile
storage areas, and a reciprocal easement to use paved streets
on
others' property in the event the main entrance
each
to
either property is blocked.
Politics
9.
from
property taxes,
sources
other
infrastructure.
the
which cut back
to Proposition 13,
Due
for
services
of
land
and
the
responsibility for all development costs,
on
Hemet
and
expansion
and
of
One of the ways to do this has been through
annexation
site,
find
cities in California have had to
pay
to
revenue
public
the developers of the land.
of
the
both on- and
off-
placement
Thus,
the Cities of
San Jacinto compete for the land that
is
around
Riverside.
The
the
City
away from Hemet and not in an area of competing claims.
Park
them
Soboba
and
unincorporated in the County
Associates
of
project site is on the side of
40
on the other hand, is between the two cities and a law
Hill,
suit is currently in progress over which city will annex this
parcel.
and Shakers:
"Movers
Trounstine
Philip
given community.
a
Christensen
a
This technique requires about three months'
analysis
gained
According
community.
suggests
Terry
of
and this paper covers only the beginning
full-time work,
an
by
method of determining who "runs the show" in
reputational
such
and
The Study of Community Power"
week
during a two
to Trounstine and
in
stay
the
"The
Christensen,
of a power structure analysis is to identify the most
object
influential people in the community -their wealth,
establish
agendas,
position,
local policies,
institute
charisma,
those who by reason of
heritage,
or
abilities
define the political and economic
and set in motion
major
projects,
and
otherwise lead or rule."
Preliminary
individuals
discussions
suggest
the
influential
in the Hemet/San Jacinto community belong to the
following key organizations:
The Hemet/San Jacinto Exchange Club
San Jacinto City Council
San Jacinto Planning Commission
Hemet City Council
Hemet Planning Commission
Riverside County Board of Supervisors
Morning Kiwanis Club
Eastern Municipal Water District
Ramona Pageant Club
Bank of Hemet
Nestee, Brudin, and Stone (Engineering and Planning)
Hemet Federal Savings and Loan
Security Pacific Bank
Inland Savings and Loan
Valley Economic Development Council
A
list
of individuals considered
41
influential
in
the
THE DPP SIT
EHSobobe
olden
Tafr IHa~omwers
i
-r(t
Asuri-
LOCAL POLITICAL
RENA
an
RENA(
C
e
/
POLITICAL MAP
OF SAN JACINTO
CALIFORNIA
Figure 12
42
Hemet/San Jacinto Valley is included as Appendix 4.
A political map of the major parties expected to bear on
Planning
Jacinto
Commission,
and
San
Local
The
Namar),
consists of the City Manager (Ross
Arena
Political
San
12.
particular project is shown in Figure
this
City
Jacinto
and is the public forum for granting approvals
Council,
The change
agreements concerning the project.
ratifying
and
of
venue from the County of Riverside to the City of San Jacinto
was
gained
been
Considerable leg work had
by annexation.
done in getting County approvals for the project prior to the
annexation,
however, the project density was targeted at 800
units and the developer was to pay for the bridge.
Now, the
City has agreed to finance the bridge, and discussions are in
progress to increase the project density.
Regional Political Arena consists of the
The
County
agencies and Eastern Municipal
influential
and
District.
Water
An
individual at the County level is Kay Cineceros,
to
representative
area,
Riverside
she
for
the County Board of Supervisors
has
expressed
interest
the
limiting
toward
Cineceros
development densities and preserving open space.
may become active in opposing the project if densities exceed
800 units or there is local opposition.
While
project,
Soboba,
there
The
is apparently no strong opposition to
the
groups:
EPM
Opposition could come from three
the owner of the existing mobile home
State Mobile Homeowners' Association;
The
existing
trailer
park
43
and,
was bypassed
park;
Golden
the Sierra Club.
in
the
original
annexation of the site to avoid opposition to the annexation.
Now, the annexation of the trailer park itself by the City is
in progress.
Historically, populated areas within the Valley
have resisted annexation (i.e.,
the
East Hemet).
Annexation of
trailer park is a mixed blessing for Soboba
Annexation
will
Associates.
remove any doubt regarding the legality
of
the annexation of the Soboba Associates land since the island
of
County
land
that is against policy
would
be
removed,
however, the City is considering rent control ordinances that
would be opposed by the land owner of the trailer
the
tenants of the trailer park want support,
to
a
regional
Homeowners'
the
organization,
Association for support,
park.
If
they can look
Golden
Mobile
State
and this
organization
the
can pressure to shift arenas for decision making back to
In
Arena.
addition,
if
project
the
Regional
Political
attempts
to exceed the 800 units previously under discussion
at the Regional Level, it may draw fire from the Sierra Club.
Since
County approvals are needed by the Flood
Roads
Departments,
for
Supervisor
and
the
these groups listen to
Kay
area,
Cineceros,
and
Control
the
County
must
care
be
exercised when exceeding previous approvals and raising local
opposition.
One
area,
individual
Clayton
influential
Record,
with
both
respected
in
financial
interests
wealthy
dairy
representing Established Power
the
may be able to
Cineceros and Namar
the Valley
(Bank
farmers of San Jacinto,
44
and
represents
Record
Valley.
in
assist.
of
and has
in
the
Record
is
is
widely
the
major
Hemet),
the
joined
the
the
in
organization
planning
land
major
(Neste,
Valley
Brudin, and Stone) because of his experience in the local and
Soboba Associates has taken the
regional political process.
and Stone to handle
Brudin,
step in retaining Neste,
right
development approvals.
History of ownership
B.
twenty
golf course and trailer park were developed
The
the
ago by Jim Miner (see Appendix 4) on land outside
years
The
Riverside.
of
San Jacinto and in the County
of
City
around the golf course and trailer park was sold to
property
course
The golf
Daon Company.
an eager Canadian investor,
was sold to an organization called the Diet Center.
Daon invested heavily in real estate throughout Southern
and
California
economic down turn in 1982-1984.
the
from
needed
were
Board
The
Supervisors.
County
the
during
thin
stretched
itself
found
At the time, key approvals
of
included
Cineceros.
and
Record
of
Board
Riverside
Cineceros was instrumental in limiting the number of units on
the
and in requiring that the developer
site
bridge
$2
worth
to
period
housing
when
to $3 million as
as
well
the
for
other
Daon
was
absorb these heavy front end costs during
the
market
for
costs
infrastructure
unwilling
million
pay
interest
depressed.
estimated at
$8
million.
rates were high and
decided
Daon
the
the
project
was
economically viable when designed for 800 housing units,
not
the
cost
of
infrastructure and land for the 800 units required prices
in
limit
set
by
the
County
45
of
Riverside.
The
80.
J
70-
D 8 S COMPANY
ANNUAL VOLUME
OF COMPLETED
WORK
504030 2010 -
n
1965
1975
1970
1980
1985
YEAR
Figure 13
46
the
Since the local market is for retirees
$180,000 range.
the
pay $80,000 to $110,000,
to
willing
not
did
project
proceed.
not fill,
did
memberships
the golf
surrounding development,
the
Without
not
could
Center
and the Diet
course
operate to golf course profitably.
1966,
Since
as
Sidlow
Peter
with
Company,
S
&
D
President, has been one of the nation's largest developers of
from apartments to condominiums to single
progressed
D&S
subdivisions.
has
undertaken
The type of projects
Figure 13.
in
shown
is
The annual value of completed work
housing.
affordable
family
Corporation
Company was owned by Rather
until two years ago when Sidlow bought out their interest.
A local resident,
for
available
and formed
acquisition
three parcels
and 7th Street
Parcel 20795,
Soboba Springs,
as
known
Bob Petkin, identified
a
as
with
partnership
D & S Company gained control
Sidlow to develop the property.
of the property in 1985 by agreeing to phased purchase of the
land
from Dayon Corporation.
outright
The golf course was purchased
The city
from the Diet Center.
subsequently
has
annexed
the property and doubled the number of housing units
allowed
on
the
resources
financial
development
the
Subsequently,
share
was
partner
in
to
carry
the
he
ownership
Petkin
was
insufficient
had
split
the
during
project
phase and brought in a private
and
Lasky,
felt
Sidlow
site.
investor,
Byron
1/3,
1/3.
1/3,
withdrew from the partnership and
acquired by Lasky.
Lasky is now
a
D&S Company as well as a 2/3 partner
47
his
50%
equity
in
Soboba
ASSOCIATES
Access
Point
y
Village 1
Figure 14
48
Associates.
developer
Byron Lasky has been a successful real estate
His projects include the first co-
in California since 1958.
op
housing project developed under Section 221 (d)(3) of the
Housing
National
Act,
development
and
several
of
sales
Tierrasanta
thousand homes in the award-winning community of
in San Diego, California, development of a 110-acre tract for
Sierra Point fronting on the San Francisco Bay to include 1.7
million square feet of office buildings, two major hotels and
related facilities including a marina.
over
$100
owns
three
Lasky has also raised
million in equity capital through syndication and
television stations in different regions of
the
between
the
U.S.
Negotiations
developer
are
currently
in
progress
the community to mitigate
and
the
environmental
impacts of the project and improve off-site infrastructure.
The Developer's Plan
C.
center,
medical
1986
is
and hotel.
The D & S development plan
of
and
as
as shown in
summarized
place
as well as a
1600 dwelling units on the site,
approximately
March
to
& S Company is currently reviewing options
D
Figure
14
follows:
Village 1
Build 70 duplex units at 900 sf each.
Village 2
Sell 445 lots at $5,000 per lot.
Village 3
Build
100
homes
(900 sf to 1000 sf) and sell
duplexes and
lots at $8,000 per lot.
49
single
family
230
Village 4
Sell 250 lots at $6,500 per lot.
Village 5
Sell 130 lots at $8,000 per lot.
Village 6
Sell
at
site
25 buildable acres for hotel
$150,000 per acre after using
a
as
source for fill in other villages.
Butzen
Property
Build Scripps Clinic
and
congregate
care facility and sell other parcels.
7th Street
commercially
acre.
in
zoned
for
is
that
section
acre
20
Sell
$100,000
per
After rezoning 18 acres currently
R-2,
R-1,
at
sell
and R-3 zones,
$40,000 per acre for apartments.
Golf Course
Realign
sell
three
the
$300,000
and
City
for
mitigation costs
and
plants
and
holes for
golf course to the
$3,000,000.
To support this development plan,
off-site improvements include:
1.
Bridge (by the City)
2.
Fire station
3.
Schools
4.
Flood control facilities
5.
Police protection
6.
Water
Storage
facilities,
pumping
distribution systems
7.
Sewer interceptor system and treatment facility
8.
Road improvements
9.
Signalized intersections
Soboba Associates allowed $340,000 to cover the costs of
50
these
infrastructure-related
items,
and
this
may
be
Using the developer's financial assumptions and
optimistic.
release schedule for lots to merchant builders, the developer
is
able
However,
to
exceed
an internal
of
return
of
20%.
this level of return requires selling over 230 lots
per year for the next five years.
indicated
rate
for
Also, there is no expense
buying back the existing memberships
golf course if it is converted to public ownership.
51
to
the
III.
ALTERNATE DEVELOPMENT PLANS
A.
Market Analysis
User profiles
1.
on the demographics and economic trends discussed
Based
in sections II.A.3 and II.A.6 and a preliminary market
by
Soboba Associates (see Appendix 1),
study
the typical user
of
the development is expected to be:
couple
Anglo
Retired
o
a
who want to own
family
home (2 bedroom/2 bath) as
home.
They
single
primary
their
are willing to pay more than $76,000
for a basic unit,
couples
and one quarter of the
are willing to pay over $100,000 to live at Soboba
Springs.
The home will be financed out of savings
or sale of their current residence, and the couple
will
more,
additionally
plus
$25,000
have a savings of
retirement income.
They will own
or
a
late model automobile.
In
addition to demographic research that
a
softer
to determining the needs of these groups is
called
the
identifies
approach
statistically
predominant groups in the market,
for.
One approach is to build consumer profiles through phone
surveys or focus groups (groups that you get together with to
informally
review product).
Try to identify who might
not
use development and why?
Get
in touch with what the community is looking for
Check with the local
communalness or nostalgia.
society/museum
--
San
Jacinto
52
has
several
--
historical
historical
Hold wine
obtain or sponsor a city-wide study.
buildings --
and cheese parties for residents of at least ten years in the
city.
Talk
"back
when".
Take lots of notes when asking questions such
living
about
etc."
eating,
regard to shopping,
here?"
Create
the
with
city
your favorite memories about the
."What are
as,
city
the
them and get an understanding of
to
Also,
"What do you like
"best
of
Jacinto"
San
This gives
development that includes selection of favorites.
you a chance to create a project that is unique, built out of
local history and images.
"Ramona"
as
such
boutique,
motel,
same
the
with
(why not locate
romantic
a
is a
There
restaurant,
on Ramona Boulevard
local history museum,
name?).
past
Use famous names out of the
good
this
in
start
direction using a book prepared based on oral histories taken
long-time
from
residents of the area --
copy in
the
Hemet
library.
Housing inventory
2.
inventory of housing units,
The
both single and multi-
family,
increased by 2,579 units during the period from 1982
through
1985
in San Jacinto and
Hemet.
During
period, the population increased by 7,672 persons.
the
same
Since the
average household number in the area is 2.16, there should be
a
pent
there
up demand for approximately 970 more units
was
pressures
no housing surplus
are
to
start
with.
assuming
Population
expected to continue at the same rate as
Inland Empire fills in.
the
The Inland Empire has been creating
over 6,000 new housing units per year.
53
The current inventory of 16,241 units in Hemet and 4,511
types
in San Jacinto is composed of the following
units
of
dwellings:
Existing
New Construction
Single Family
53 %
62 %
Multi-family
21 %
27 %
Mobile Homes
26 %
11%
As of January 1,
1986,
11% of these units were vacant,
however,
is an ambiguous statistic due to the presence
this
of a vacation or second-home market estimated at 15% based on
the Soboba Associates survey (see Appendix 1).
for existing homes are
prices
Sales
from
to
$55,000
$60,000 for two bedroom homes in San Jacinto and from $55,000
to
$130,000
In
Hemet.
areas
residential
$250,000
in
featuring
offering
Hemet,
there
homes priced from
view lots from the hills
are
suburban
to
$125,000
south
of
the
city.
3.
A
Retail Inventory
review
of sales data in Hemet and San Jacinto
shows
that Hemet receives a disproportionate amount of sales:
Number of
Stores
1984
Total
Sales
Sales
per Capita
Hemet
712
$238,614,000
$9,056
San Jacinto
224
$ 29,934,000
$3,363
Although the sales per capita in Hemet may be higher due
to higher income levels of Hemet residents,
explanation
the more
likely
is that the shopping opportunities in Hemet
54
are
and
they draw shoppers from the surrounding
areas.
The three major shopping malls in Hemet along Florida
Avenue
greater
attract
business from all over the Valley,
and there are no
comparable retail centers in San Jacinto.
Hotel/Motel Inventory
4.
In
Hemet,
(132 rooms).
and
there are 2 hotels (25 rooms) and 17
In San Jacinto,
2 motels (57 rooms).
motels
there are 2 hotels (60 rooms)
A new Travel Lodge with 100 rooms
recently opened in west Hemet on Florida Avenue with
nightly
rates of $50, and it has had 90% occupancy for its first four
months.
5.
Medical Services Inventory
Due
to
the
expected
to
play a major role in new
Valley
older
facility
satellite
where
Empire)
emanate.
medical
services
about
a
Sun City
in
fifth
of
their
(in
are
Hemet
developments.
is adding 101 beds by 1987 and
Hospital
100-room
population,
planning
the
present
a
Inland
patients
Scripps Institute is now building a facility in San
Jacinto on the Soboba Associates site, with two other private
convalescent buildings nearby.
coming aboard shortly.
centers
plan,
Hemet has two congregate care
One will offer
vacation
caring for homebound patients for a week or more while
the rest of the family can vacation,
whatever
Also,
a
Mt.
--
very
San
programs.
It
successful in Maryland and Pennsylvania
Jacinto
training program,
take a business trip or
College is now offering a
full
in addition to its already successful
appears to be the beginning of a
industry for the Valley --
health care.
55
new,
.
RN
LVN
clean
The Valley would be
an
ideal area,
which
climatewise,
requires
County's
coming
many of the new
Hemet-Ryan
and
going
professional
especially for geriatric
and
Field
by
air
medical
can be used
ambulance.
semi-professional
care
specialties.
for
medical
This
may
employment,
The
cases
attract
generating
custom housing on view-lot hillsides and good local sales and
service.
6.
Competition
The ten residential housing projects covered by a Comarc
Systems survey in March,
represent
294
1986, and summarized in Appendix 1,
units out of the 400 single family
dwellings
constructed during the period from January 1985 through March
1986.
the
All of the developments surveyed are on the floor
San
Jacinto Valley,
and none of them offer an
such as an 18-hole golf course.
at
of
amenity
The units currently selling
the greatest rate (11 units per month at Mirador
Pointe)
are mostly three bedroom homes with two bathrooms selling for
$85,000 to $95,000 and a square footage range of 1500 to 1700
sf.
This isolated development has no common areas or nearby
amenities,
and plans to construct an additional 311 dwelling
The popularity of Mirador Points stems largely
units.
from
its low price per square foot range ($53 to $59/sf) reputedly
due to low initial land costs.
Two
with
150
developments which have completed 92 homes to
date
Fairview)
have
more planned (Bel Air Estates and
sold a combined average of 3.3 units per month.
Their homes
are two and three bedroom/two bathroom dwellings ranging from
56
jjDBIOME
ATt
MA
T TE E
ME
70
0
~9
~
l46
4
SEVEN
M A S T E A
P L A N N E D
HILLS
0 E V
E L O P M E N T
Figure 15
57
962
sf
Price
to 1428 sf with sales prices of $72,000 to
per square foot range is $58
to
$74/sf.
$90,000.
Again,
no
amenities are offered.
In
aggregate,
the
top ten developments have
sold
21
homes/month with plans remaining for 587 more dwelling units.
One
Soboba
Heights,
adjacent
2800
development
to
square
is
not
on
included in
the
mountain
the
Comarc
slopes
survey,
immediately
Soboba Springs and is characterized by 2600
foot custom home construction (18
been built to date,
houses
to
have
and two were for sale during site visits
in May and July).
Another development not included in the Comarc survey is
Seven Hills.
Seven Hills is in Hemet, and the master planned
community contains an 18-hole golf course of lesser
in
terms of landscaping intricacy,
maturity of
and degree of difficulty, than Soboba Springs.
is
available on Seven Hills,
quality,
vegetation,
While no data
it is believed development
is
hampered by the image of a trailer park since the first phase
of
development was based on mobile homes.
One area of
the
development contains unfinished homes by a builder who bought
lots
the
been
from the original developer and was unable to
effort.
designed
Seven Hills does have the advantage of
complete
having
from the start to take advantage of the
golf
course view, and a copy of the site layout is shown as Figure
15.
A review of golf course competition is summarized below:
58
Initiation
Fee
Club
Monthly
Distance
Dues
Other
Very
good course
Soboba
$5,000
$125
-0-
Seven Hills
$1,750
$140
15 min
Adequate course
Cherry Hills
$2,400
$ 80
20 min
Fair course
Redlands
$6,000
$150
30 min
Very
Singing Hills
$4,000
$140
45 min
Good course
Victoria
$8,600
$145
45 min
Very good course
$17,500
$125
50 min
Very good course
$1,500
$ 75
120 min
Very good course
Lake Arrowhead
Ojai Valley
In
Palm
Springs,
30 minutes
the
away,
good course
golf
course
fees range from $5,000 to $50,000 and the monthly
initiation
dues average $180.
Summary Conclusions
7.
demand
population pressures
on demographics,
Based
for
almost 1,000 new dwelling units per year of
types in the San Jacinto Valley.
influx
of
development
demand,
San
and
Jacinto
rate
There
is
room
with
the
additional
for
meet
new
possibly more as the Inland Empire reaches
the
of
at
Valley.
least 100 units per
year
to
By aggressively marketing the
characteristics of the Soboba Springs Golf Course,
possible
all
Still, the
of new housing has not kept up
population.
a
Builders have responded to
this demand by creating up to 917 units in 1985.
construction
create
to capture a greater share of the
and sell as many as 160 units per year.
unique
it may be
existing
market
The absorption rate
of 160 units per year is a critical assumption the author
is
making, and the developer should place great emphasis both on
59
overall absorption in the Valley and in improving
monitoring
capture of the market.
But, what to sell?
Almost 40% of the market surveyed by
Associates was willing to pay more than $90,000 for a
Soboba
two or three bedroom house with two bathrooms.
While no data
existed in the Comarc survey to identify absorption rate as a
of total home price,
function
with
a price per square foot less than $65 and of
1200
square
foot
in area sold
mix
used
for this analysis is
product
of
consisting
bed/2
2
dwellings
it did appear that
quickly.
more
bathroom
a
single
least
at
Thus,
product
premium
home
family
one
or
condominium of 1200 square feet with a base price of $80,000,
and
square feet with a base price of $90,000.
2/3
of the two bedroom units,
In addition,
units.
The mix should be
and 1/3 of the three
bedroom
view premiums for lots adjacent to the
course and landscaped parkways of $30,000
golf
1350
of
3 bedroom/2-1/2 bathroom single family home
a
and
$15,000
should be charged.
Another product tested in the following proformas is the
cost
moderate
preferred
by
Soboba
Associates
of a 2 bedroom/2 bath single family home
consisting
square
product
feet
a base price of $65,000 with
and
of
945
course
golf
premiums of $20,000 and parkway premiums of $10,000.
Absorption
dwelling
units
of
per
housing units is expected to run at
thus,
year,
by
selling
fewer,
160
more
expensive homes the project may be completed more quickly and
carrying
Since no data exists to
costs minimized.
60
support
different
the
units,
rates for different sizes
absorption
proformas
in
Appendix
5
of
housing
a
uniform
assume
absorption rate of 40 units per 3 months.
More field survey
work is needed in this area.
B.
Alternate Development Strategies
1.
The importance of the golf course
private golf course covers a total of 123 acres
The
which
8.3
acres
swimming pool,
270
members
have
includes the
club
house,
and eight tennis courts.
for golf and 65 for
lots,
parking
Currently there are
tennis/swimming.
Members
paid increasing initiation fees which are currently
$5,000
is
The maximum capacity
the
variously estimated at 500 to 1000 members
for
golf and 165 members for tennis/swim.
The range of estimates
for
the golf course are considerations of the
use
by the members.
membership
Riverside.
at
of
with $100/month dues.
facility
where
of
The
frequency
The higher capacity occurs on
is
composed
of
working
lower estimate reflects the
courses
in
families
more
of
frequent
play expected in the retirement community of San Jacinto.
Approximate monthly finances are currently as follows:
Golf course fees/dues/pro shop
Administration
Restaurant
Swim/Tennis
Miscellaneous
Interest Expense
Taxes, Depreciation, Amortization
Total
The
$30,000
(10,000)
( 5,000)
( 4,000)
(10,000)
(18,000)
(13,000)
(30,000) per month
positive cash flow from golf fees is largely due to
tournaments.
If
the
golf course is reduced in size
holes, then tournament play will go elsewhere.
61
to
9
SITE
TOPOGRAPHY
1800
1760
Figure 16
62
As
golf
a
fee
If
market.
captive
the
either
initiation
The
or sale to the city.
can be increased as
$5,000
of
recouped
higher lot prices generally,
through lot premiums for views,
recreation club fees,
on
return
negative
must be
investment
the
thus
investment,
a
is
there
course,
creates
development
by
increased
membership is
a
200
members paying an average of $20,000/each, the land cost will
be quickly retired.
club
the
fees,
To attract members willing to pay higher
(rather
needs to be closed to members only
than allowing guest rates) and the facilities upgraded.
Soboba Springs 18-hole golf course with its
The
gentle
and
vegetation
Figure
in
as shown
topography
amenities such as a full health/recreation center and
hotel
constructed,
are
then a
housing in excess of $100,000 per unit.
16
If complementing
represents a unique amenity in the Valley.
resort
mature
nearby
exists
market
for
The amenity value of
the golf course comes in two forms: a) access for use, and b)
of
Soboba Associates estimates that one out
for views.
access
the
every four home owners will want to play on
and
a
development
The
value.
proportional
to
linked
of
limit
200
additional
memberships
more than 800 units may
of
lose
this
course,
indicates
amenity
hand,
may
be
to the frontage along the golf course,
and
is
view
the
premium,
quality
of
on
the
other
maintenance
of
the
course.
Increasing memberhsip beyond 500 will create greater wear and
tear
on
the
course and lower its amenity
value
for
both
players and viewers. If the golf course were sold to the city
63
PRDPDSED
SITE
PLAN
Village 5
Viltlage 1
Figure 17
64
as
existing
not only would the
by the developer,
proposed
members have to be reimbursed for their membership fees,
but
maintenance
there
would be a loss of control of its use and
which
could detract from its amenity value to the
remaining
development.
Realignment
per
hole,
of the golf course is estimated at $100,000
alternative
and this cost has been considered in
site plans.
Specific development alternatives
2.
Specific
development
alternatives for each Village
or
parcel are as follows, and the selected alternate is shown in
Figure 17.
Located along the levee, this parcel has good
Village 1
course
golf
difficult
for
but
views,
and
premium
condominium
and
housing,
family
by
considered
Alternatives
access.
this area include moderate
single
hampered
is
apartments in three and four story buildings.
Without
relocation
through
the
area,
of the
drainage
is
development
system
severly
limited.
Village
2
Adjacent to the trailer park and without golf
course views, the most appropriate use may be
for
low
and
moderate
income
recreational vehicle storage.
parkway
along
recommended.
fire
station
65
the
Along
housing
and
Landscaping a
system
is
Main Street locate
the
drainage
and 5,000 sf local
commercial
This
store.
goods
20%
the
fulfill
and
low
associated
requirement
can
area
moderate
with
to
used
be
income
Redevelopment
Agency financing of the bridge.
This is a choice location surrounded on three
Village 3
by
sides
golf
the
course.
premium
Use
housing on larger lots.
4
Village
from
a good location up slope
This
is
golf
course.
Moderate
the
housing
or premium
could go here, and the amenity value enhanced
by landscaping along the drainage parkway.
Village 5
area must be built partially on five to
This
eight feet of fill.
be
will
excellent,
Views of the golf course
to
as will access
recreational facilities.
the
Use either type of
housing.
Village
6
long views over the golf
outstanding
and
from
the
areas allowed by zoning densities
and
Valley.
other
course
Transfer
densities
go vertical with hotel or premium condominium
A
apartments.
resort hotel here would have
to be self supporting since it couldn't count
on
using the golf course or recreation
due to saturation of memberships.
club
Donate the
unusable (too steep) portions of the hillside
area to a non-profit organization such as the
Boy Scouts to create a tax write-off.
66
Butzen Property Adjacent to Scripps, carry through the health
care
theme
with
optometrists,
stores,
out-patient
dentists,
drug
services,
medical
store,
supply
elderly
housing
facilities, etc.
Seventh
Street For
the
commercial
section
close
the
to
Ramona Expressway, build a shopping center to
draw
Valley.
For the residential portion, build
apartment
density
Investigate
units,
the
On Ramona Expressway, leave room for
a motel.
high
from the east and north of
people
public
however,
legislation
is
complexes.
for
funding
recent
federal
to
expected
subsidized
tax
curtail
this
option which was popular with syndicators.
Design Criteria
C.
1.
The
image
of
setting.
Site Design Criteria
plan proposed in the thesis was guided by
site
site:
the
a liesure community
a
in
an
park-like
Following methods suggested in "Site Planning"
by
Kevin Lynch and Gary Hack, a computer design program was used
to
pile
up
series of overlays that
a
blocked
off
regions of the site unacceptable for development for
such
as excessive grade or cost,
existing
easements,
vulnerability
to
or
reasons
difficulty in acquisition,
small or irregular size,
flooding
those
storm
flows,
poor
ground,
incompatible
development, lack of access, seismic zones, and so on.
Several site visits were made at different times of
67
the
day
over a one month period to gain a personal sense of
site.
Aerial
the
photos were taken that showed the health
species
of plants,
traces,
traffic flow, erosion, and adjoining land uses.
building location and
repair,
and
activity
The
compiling
of information and images about the site lead to a
sense
the
of
site
character,
views,
unique
locations,
problems, and potential paths.
Circulation, environmental restraints and views played a
dominant
were
role in the site design.
dealt
The
numerous
easements
with by aligning circulation routes along
them.
The Claremont Fault Zone was filled by the realignment of two
golf fairways to create a view corridor from the intersection
of Soboba Road and Main Street into the green interior of the
site.
The on-site storm flows have been incorporated into a
stream
system
that
provides
opportunity
for
additional
landscaped parkways.
The
vegetation of the golf course stands
lush
stark
contrast
along
its edges.
uniqueness,
the
to
the arid mountains and dry
flood
of the golf course
in
plain
of
To emphasize and take advantage
realignment
out
this
creates
a
greeen edge along Main Street with a low site perimeter fence
that
permits views of the golf course and lakes.
The
Irvine
villages
historically
most
stable,
settlement.
Company
most
uses the
name
have tended to be the most
easily
identifiable
because
"Village"
kind
enduring,
of
human
A village includes the support uses and services
for daily and weekly use for residents in a given
68
geographic
area.
The
proposed
site plan includes a variety of
with a local market or commercial center at the
of
Main
Street
and Soboba Road,
intersection
a recreation
restaurant
between Villages 4 and 5,
supporting
services at the Scripps site,
uses,
center
a medical center
and
an
and
with
apartment
complex and shopping center on the Seventh Street parcel.
addition,
hillside
there
is
(Village
potential for a resort complex
6) that can increase
the
on
In
the
entertainment,
shopping, and dining resources of the area.
Each
component
neighbors,
and
constructed
of the site plan looks outward
yet is self contained to the point it can be
Buckley
suggests
master
planned
provide a sense of security and identity,
cohesive
its
in discrete phases.
Michael
preferred
to
physiological
theme
influences on
projected
which are
human
by a master planned
create a strong marketing image.
districts
clearly
activity.
project
A
can
Specific suggestions to be
included in the site design are:
o
plan to provide continuity
master
Coordinate
of
design areas.
o
Use tall fan palms and view corridors to link
the
site from the Club house.
o
course
to
provide both security and advertise the beauty
of
Provide
night
lighting
on the
golf
the area.
o
Minimize
maintained
developer
open
public
by
a
spaces
homeowners
that
have
association.
to
be
The
has had negative experiences in setting
69
up homeowners' associations.
for
the
associations
responsible
common
any
to
hold
difficulty
areas or facilities,
finds
that
for
There is a tendency
himself
in
in
thus
developer
maintaining
the
developer
involved in a project much
anticipated.
phased
the
over
associations
can
Since
longer
development is
several
become
years,
focal
to
be
homeowners
points
for
opposition to subsequent development.
o
Maximize number of units on golf course edge.
o
Reduce lawn areas and add arid planting to
reduce
water required for planting.
o
Fill
lying area to be built on to a
low
minimum
elevation of 1567 to get buildings above the flood
Don't
plain.
golf
expand Village 5 further into
course because it would create an island
the
of
sticking up ten to thirty feet above
the
level of the golf course and block views from
the
housing
club house.
o
Develop
a
project plant list that
includes
the
following species with lesser water demands:
Flowering
plants:
Lemon
bottlebrush,
Nerium oleander.
Foliage plants:
Hopseed bush, Yucca.
Vines:
Bougainvillea, Cape honeysuckle.
Trees:
Olive, Palms, Pines.
Ground cover:
Rosemary, Ice plant.
70
Lantana,
2.
A
Architectural design criteria
sense
of
cohesiveness can be
architectural themes are used.
o
Design
for
developed
if
common
Specific suggestions include:
hot
--
climate
wide
covered
walkways, southeast building orientations.
o
Use
Spanish theme of red tile
tan
stucco
roofs,
walls,
balconies,
ceilings,
interior
courtyards
buildings
with
fountains.
light
open
in
An
beam
public
excellent
building to use as an example is the
Pacific
Savings Bank headquarters at 19th and Newport
Beach Boulevard in Costa Mesa, California.
o
design criteria --
Seismic
design for
worst
case required by building codes.
D.
Phasing of Development
From
the very start it is important to develop a master
plan for the total project with specific site plans for
area.
the
each
If land is sold to builders or other developers during
course of build out,
established
plan
unless
require the builders to follow the
they buy the
entire
development.
Constantly test the market for all types of product,
ready
to
and
revise the program before initiating a new
phase.
If absorption is slow and carry costs become excessive,
land
for
residual
development
by
others
--
always
value to phase build out value,
compare
for
sell
land
and either sell to
other builders for build-out and early cash flow or hold
build directly.
be
and
The choice between moderate or premium units
the following phases has been made based on
71
anticipated
PROPOSED DEVELOPMENT SCHEDULE
1/716
1/86
,/8
1/87
1/89
/Q19
I/88
101
Q
I/90l
/93'
1/92
Land
Acquisition
Village 2a
200 du
Moderate
Village 3
96 du
Preiaum
BUILD
Q
ODCCUEL
O
Prem
0
-"-'-
O
BUILD
Vitloge 4a
81 du
Moderate
CCUP
OBUILD
Village 1
42 du
Moderate
Y
O
Village 4b
227 du
Moderate
BUILD
OCCUPY
O
Vitlage 2b
200 du
Moderate
BUILD
B
-D
_
O
Village 5
26 du
Preiumi
Village 6
25 oc
Scripps
20 ac
Seventh St
CCUPY
__
C ULD
0
O
D
SELL LAND DURING THIS PERIOD
UP
'
y
CLINIC
COMPL
V
Y BUILD
MEDICAL SUPPORT FACILITIES
OR SELL LAND DURING THIS PERIOD
TSELL ANYTIME AFTER REZONING
40 ac
Figure 18
72
profits
(see
Appendix
Figure 18 shows
5).
the
sequence
graphically.
The Scripps Clinic has been built as the first phase.
The
City
constructed
site
permit
The portion
of
be
the
2.
the first 200 moderate dwelling units in this area
as
least site preparation
is
second phase starting along Soboba Road and
realignment
will
to
units
residential
Village
the
progressing
This will increase population while
around toward the river.
the
200
before a bridge is built.
requiring
Build
the
will
preparation
of the golf course and site
around
The first two hundred
units
permit the City to issue tax-increment bonds and
begin
golf
course is initiated.
bridge construction.
At the same time, build congregate care
facility adjacent to Scripps Clinic.
The
third
single
premium
units
phase is Village 3 composed of 90
family
dwellings
next
to
the
of
lake.
Realignment of the golf course holes is completed during this
phase, as is rough grading of the hillside area and placement
of
and
local
phase is Village 4a with 81 moderate
units
for Villages 4 and 5.
fill
The fire station
market on Main Street are also completed.
fourth
The
across
the realigned fairways from Village
shopping
center
first
phase
goes
in
3.
now
Scripps
The
as
does
the
completion of medical related offices adjacent to the Scripps
clinic.
The
fifth
phase
is 42 units of
Village 1 adjacent to the levee.
73
moderate
housing
This phase is not
in
started
property,
allow for acquisition of the Althouse
to
earlier
and
installation of the drainage culvert across Main Street,
construction of the bridge over the San Jacinto River with an
underpass to Village 2.
The
Soboba
along
dwellings
family
phase is for the 227 moderate single
sixth
Road
in
Village
4b.
new
The
center and club house should be completed by
recreation
the
end of this phase.
housing
The seventh phase is the remaining 200 moderate
units in Village 2.
The eighth phase is the 26 high end units in Village 5.
The
last
phase
complex
apartment
is
or
hotel
the resort
development on Village
6
condominium
(the
Hillside
area).
Assume a density of 8 du/ac times 25 acres is allowed
for
total
a
6.
Village
in
second
phase
is
The
Scripps shopping center
adjoining
apartments
times
allowable
hotel
at this time along with the low to moderate income
completed
du/ac
of 200 dwelling units or rooms in a
20
acres
the center.
of
10
apartments
is
Assume a density
for a total
of
200
on the Seventh Street site due to inclusion
in
a
PUD designation.
At
the
final build out,
approximately
1266
dwelling
units will have been created on the three parcels, along with
a medical center and shopping center.
74
IV.
SOURCES AND USES OF FUNDS
A.
The impact of Proposition 13
Article
tax
property
on
limitation
a
places
which
XIII A of the State Constitution),
statewide
(now
California voters approved Proposition 13
In 1978,
revenues
the
in
following ways:
o
The
an
tax rate is limited to
property
overall
of one percent of full cash value (market
maximum
The
value) of land and improvements to the land.
among
amount raised by this tax rate is allocated
all taxing agencies as prescribed by law.
o
The only tax rate that may be applied to the value
of
property in addition to the one percent
is
a
a
of
approved by two-thirds
rate
rate,
taxing
cover
entity's voters and/or a rate sufficient to
a taxing entity's voter-approved bond indebtedness
obligations that existed prior to June 6, 1978.
o
The
property values to which the maximum rate
is
applied are limited to the full cash value (market
value)
as of the 1975-76 base year,
for:
only
increases
A
plus
two
maximum
annual
percent
adjustment for inflation in value of property; the
of
value
reassessment
improvements
any
current full market
to
property;
to
value
when
property changes ownership (is sold).
Prior
greater
to
the
revenues
infrastructure
passage of Proposition
and
were
more
for new developments.
75
13,
willing
cities
to
had
provide
After Proposition 13,
expect developers to pick up much more of
cities
front
the
end costs and also charge increased fees to the developer for
connection
For example, The Irvine Company estimates that in
fees, etc.
the
sewer
including plan check fees,
services
city
of
City
fees
processing
Irvine the regulatory
often
exceed the cost to plan and design a development.
the
In
City
to
prior
Irvine
of
13,
Proposition
infrastructure was paid for by the city and 10 to 15% of
the
This increase in
30 to 35% of the home cost.
is
cost
the improved land
Now,
home cost was in the improved land.
the
as
land component is due to inflation of land values as well
the
a
As
in infrastructure costs to the developer.
shift
result, builders' profit margins have been reduced from 10 to
20% down to 6 to 8%.
determines
the
developer
is
--
homebuyers
the
in
the
cost
of
process
of
the
not
price for units,
the
If
construction.
to
pass on the cost
cannot
they
market
to
costs
infrastructure
is to lower their profit margins in the short run
developers
since
shifting
of
impact
The
acquiring land and knows of the infrastructure costs, then he
will be willing to pay less for the land,
who
owner
will
ultimately
be
called
and it is the land
on
to
for
pay
infrastructure.
If
a
project
developer,
lowering
reasonably
available
is
the
not
economically
capital
costs to
feasible
a
revenues will support the
often the first point of attack.
76
level
for
a
where
project
is
The project's capital costs
can be lowered by reducing the size,
the
project
may
by
using
less
expensive
will not close the financial gap,
be
materials
and
However, when conventional approaches to reducing
finishes.
costs
or
scope, and amenities of
available
alternatives
to reduce capital
other
cost.
alternatives
One
of
these
is to reallocate the costs to the parties
will benefit from the development,
that
such as the community-at-
large and the future users of the development.
B.
Public Financing Incentives
One
of the affects of Proposition 13 was to effectively
prevent the authorization and sale of new general
debt secured by property taxes.
obligation
Additionally, Proposition 13
affected the ability of local governments to provide services
financed
what
by
California
cities
community
growth.
the
value
developing
have
property
tax
had to find other ways
Prior to Proposition 13,
revenues.
to
when
and maintaining infrastructure
of
unincorporated
county
support
cities weighed
of increased property taxes against the
annexation
land
cost
of
considering
into
their
After Proposition 13, cities look to developers
boundaries.
to
are now reduced
finance infrastructure costs and see annexation as a tool
for generating additional revenue.
Annexation is initiated by a city or landowners in a two
step process:
First, a submittal is made to the Local Agency
Formation Commission (LAFCO).
evaluates
terms
of
site,
and
whether
This independent county agency
annexation makes sense for
contiguous land areas and ability to
makes
a recommendation to the
77
the
city
service
commission
in
the
board
of
composed
two
county
two special district representatives, and one at-
officials,
large representative.
The decision is very political.
If there is
The second step is made at the city level.
for
support
100%
without
is
resolution
if more than 12 voters reside on
the
annexing
the
If there is
a public hearing.
the property has less than 12
and
support
and
land
the
the city adopts a resolution
then
property),
owners
the annexation by
(required
inhabitants
property
adopted
if less than 26%
100%
then
a
the
ownership
If 26% to 51% of
then an election of all
the ownership interests are opposed,
owners within the effected area is called for and a
When the property
simple majority is needed for annexation.
is
not
voters,
of
interests are opposed at a public hearing.
property
city
elected
two
supervisors,
inhabited by 12 or more voters,
procedure
a similar
is
followed.
In the case of Soboba Springs,
the property was annexed
This means it was an
exclusive of the existing trailer park.
legal
owner.
annexation approved by the land
uninhabited
rulings
leave this annexation in
since it creates an island of County land,
question,
the
this and is currently in the process
trailer
park with no opposition from the
If
the
annexation,
then
date.
challenged
residents
of
the
however,
and this has been
determined to be against policy for annexation.
recogized
Recent
trailer
The City has
of
annexing
residents
park
oppose
the annexation of Soboba Springs could
as well.
If this were to occur,
78
to
be
then the voters
of
loss
annexation,
contesting
change
favorable
the
battles
court
lengthy
in
result
could
this
amenity,
private
their
as
view the golf course
residents
in
Since the
what could be developed on the site.
determining
existing
voice
strong
a
park could become
trailer
the
within
in
density allowance gained by changing venue from the County to
the
of City support to build
loss
City,
consequently,
bridge,
the
and
Fortunately,
termination of the development.
no opposition has appeared.
redevelopment
financed
project
of
a
establishment
of
creation
project
this
for
applicable
tax
assessment
special
a
include
by
considered
vehicles
financing
public
primary
The
of
use
the
a
increment
bonds,
district,
and/or
forms
of
development
of
of
a
Other
Mello-Roos district.
public financing are discussed in Appendix 3.
The Redevelopment Authority
1.
of
One
the
areas
specific
tools for
in
a
redevelopment authority.
agency
is
the
the
establishment
A redevelopment authority is public
from
a
and can assist development by taking advantage
of
established
community
city
assisting
to
remove
"blighted"
areas
its tax-exempt status and assisting in public approvals.
In 1980, the San Jacinto Redevelopment Agency was formed
pursuant
to the Community Redevelopment Law of the State
California (Health and Safety Code Section 33000
et.
of
seq.).
The City of San Jacinto on May 3, 1983 requested the Board of
Supervisors
authorize
of
the
County of Riverside
to
designate
the San Jacinto Redevelopment Agency to
79
and
undertake
the
park.
trailer
is
development
This
area
is
not
however,
blighted,
for
revenues
to increase
anticipated
and
course
the area around the golf
of
redevelopment
its
the
Soboba Springs is contiguous to
"blighted" city as a whole.
of
the City of San Jacinto and within the territorial limits
the
of
County
the
authorized
City
Redevelopment
Agency
Redevelopment
Project.
Provisions
using
and
of San Jacinto
San
the
the
undertake
to
the
1983,
Law
of the Community Redevelopment
low-,
for very low-,
for
Jacinto
require
affordable
and moderate income
through lowering the house price,
County
Springs
Soboba
minimum of 20% of the funds raised
a
housing
17,
On May
Riverside.
families
funding infrastructure, or
lowering the rents of rental units.
Thus, the use of public
financing requires setting aside at least 20 % of the housing
units for affordable housing.
The
increment
Authority
Redevelopment
financing,
can raise
creation of Mello-Roos
funds
by
tax
or
districts,
special assessments.
2.
The
increment
Tax increment financing
San Jacinto Redevelopment Agency intends to use tax
financing as its primary source of
financing
increment
allocates
the
future
Tax
revenue.
increase
property
tax revenues due to increased property values in
specific
area
to
pay
for
bonds
to
assist
the
in
a
area's
development.
Cities
with
statutory
80
powers to
form
tax
increment
ILLUSTRATION
OF
TAX
INCREMENT
FINANCING
moniesare allocatedto
Tax increment
Agencyas it
the City'sRedevelopment
incuresdebt (debtincurredas a result
intereston
of capitalimprovements,
bonds,etc.)
X C0
At the
......--.......--
t
Additional tax
nonies allocated
to the redevelopment agency
,C
-K
- 0
CITY
COUNTY
CITY
COUNTY
SCHOOLS
SCHOOLS
SPECIAL
DISTRICTS
SPECIAL
DISTRICTS
Additionaltax
mnies allocated
to the redevelopment agency
completion
of the
projectall the
taxes generated
Additional tax
monies allocated
to the redevelDpment agency
CITY
CITY
COUNTY
SCHOOLS
SPECIAL
DISTRICTS
COUNTY
SCHOOLS
SPECIAL
DISTRICTS
revert back to
the original
allocation between
the different
juri sdictions:
CITY
X
COUNTY
SCHOOLS
SPECIAL
DISTRICTS
-C
etc.
YEAR OF
PROJECTAREA
ADOPTION
1st. YEAR
AFTER
ADOPTION
etc.
etc.
2nd. YEAR
AFTER
ADOPTION
3rd. YEAR
AFTER
ADOPTION
etc.
4th. YEAR
AFTER
ADOPTION
etc.
? YEAR
COMPLETION
OF THE
REDEVELOPMENT
PROJECT
Figure 19
81
have
districts
the
capability of
status to support development.
using
their
tax-exempt
When redevelopment activities
are successful the property values within, as well as around,
the Redevelopment Project Area will increase.
financing
Tax
increment
allocates to the city or redevelopment agency
all
property taxes resulting from increased assessments generated
within a project area as illustrated in Figure 19,
tax
increases
and
school
pledged
including
that would otherwise go to county
districts.
This
revenue stream
government
can
then
to finance interest and principle repayment of
exempt bonds.
These bonds finance public investments
can
land
include
site
relocation,
acquisition,
building
improvements,
and
be
tax-
which
demolition,
public
various
improvements within the area.
An
of
amount
independent appraisal determines the maximum
financing that will be available.
Underwriters of bonds
set a limit on the bond issue equal to one third of the total
asset value of the encumbered property.
over
An area of
dispute
the appraisal lies in whether the appraisal is based on
the future value of the fully improved lots, land value after
infrastructure completion, or unimproved land.
are treated like other kinds of bonds by
bonds
(Moody's),
Tax increment
being
rated
insured (Ambac), and issued by underwriters (Dean
Whitter).
As
available
The
a financing tool,
to
tax increment financing has
cities and counties in California since
basic authority that is provided to cities and
82
been
1952.
counties
is provided for in the State Constitution and is contained in
These
Sections 33000 et. seq. of the Health and Safety Code.
provisions permit the agency to borrow money, allow a city or
county to advance funds,
and authorize the issuance of bonds
for redevelopment purposeds.
principle
The
provision,
This provision
Section 33670 of the Health and Safety Code.
Article
implements
Constitution
XVI,
16
Section
for
the
allocation of
of financing local redevelopment
in Section 33670
contained
for
taxes
property
purposes
economically
in a
which permits the Legislature to provide,
way,
authority
California
the
of
specific
in
contained
is
however,
The
activities.
makes
projects
most
value
feasible in that it freezes the assessed
within the Project Area at the time the redevelopment Plan is
adopted
by
produced
and provides that any property tax revenue
an increase in assessed value over the frozen base may be
by
utilized
redeveloping
conjunction
with
indebtedness
is repaid,
thereafter
increment
is
the base is unfrozen and
the
paid to all of
all
When
area.
the
in
incurs
the agency to repay indebtedness it
tax
this
local
taxing
entities within the Project Area.
As
example,
an
received
various
a
project area
was
assessed
an assessed value of
to
on
$15,000,000,
the
the $10,000,000 would continue to flow
taxing
entities and the taxes
resulting
at
Area
and as a result of development the Project
$10,000,000
increased
if
taxes
to
the
from
the
$5,000,000 would flow to the Agency.
At the end of the redevelopment project life, the taxing
83
agencies
will receive tax revenues based on the new,
assessed
value in the Redevelopment Project area.
higher
The
tax
increment which was flowing to the Redevelopment Agency
now
flow
final
analysis,
revenue
Area.
lose
to all the other taxing agencies.
other taxing agencies
will
in
the
reap
the
benefits of the redeveloped and revitalized
It
the
is true that in the short term,
tax
previously
higher
the
Thus,
revenue above the
stated,
assessed
base
Project
taxing
value;
will
agencies
however,
as
they do gain the long-term benefit of
valuation of the area which
may
not
a
have
occurred without the efforts of redevelopment or the catalyst
of reinvestment of these revenues into the Project Area.
City
funding is usually split between various groups or
programs
on
a
district
is
created,
district
due to inflation is not passed on to the
The
city
district,
percentage
programs
county
basis.
the
increase in
include funding
flood
When
a
tax
revenue
for
control district,
the
increment
from
programs.
local
etc.
that
If
school
these
programs anticipate an increase in operating costs that
will
not be covered by increased operating funds (due to a ceiling
on revenues from the tax increment district), they may sue to
preserve
their tax increment and block the establishment
of
the new tax increment district.
Initial
economic impact and projections relative to tax
increment financing revenue for the Soboba Redevelopment Area
is difficult to determine without having conclusive knowledge
with
regard
to:
1)
negotiated
84
agreements
with
taxing
agencies;
2)
Project
valuation trends;
3.
Area
of
growth;
3)
assessed
tax
requires
and 4) future legislation.
Special assessment districts
Financing
approval
of
infrastructure
two-thirds
established
by
an
through
of the
district to bear the tax.
be
rate
a new
voting
public
By comparison,
within
an assessment can
agency subject to
a
protest
of
majority
of the voting population or land owners within
proposed
district.
the
parcels
of
accomplishment
parcel
so
land
that
will
of some specific
benefited
estimated
costs
a
the
The use of benefit assessments involves
establishment of an area or district
all
the
and
is
be
encompasses
benefited
public
assessed
which
by
improvement.
for
a
portion
expenses involved for
an
the
Each
of
the
established
length of time, and in an amount proportional to the parcel's
relative
benefit
as compared to the other
parcels
in
the
district.
An
starts
independent third party,
engineer,
do
gained
not represent an estimate of the
by each piece of property for the
allocation
that
having
the
ability
to
with
make
85
the legislative
certain
The
interpretation,
have the right to protest the method and
engineer,
value
development.
of benefits is an art subject to
assessment
property
incremental
is why an impartial third party is required.
owners
why
The assessments are in the form of a matrix
relative value of improvement between pieces of
and
the
assessment
out with the simplest assessment spread and sees
it doesn't work.
of
the
Property
formula
body
modifications
of
then
or
amendments to the assessment at the public hearing.
an
assessment district which are benefitted
reason,
the
within
it is necessary to include properties
Sometimes
assessment
district
properties must pay assessments.
cannot
but,
for
some
proceed
if
such
For example,
although the
existing trailer park will receive benefits from installation
of
not
the boundaries of an assessment district could
a bridge,
In such cases,
assessment district creation.
may
still
of
these properties for fear of rejection
include
the
the
district
(the
proceed if those supporters of the district
developer, the city, or some other agency) are willing to pay
the assessment upon those properties.
existed
for
The trailer park
many years without a bridge (the
has
road
asphalt
and the construction of a bridge
runs across the river bed),
appears to benefit the new development (it is a condition for
going forward), so why should the long-time residents pay for
it now?
Public
assessment
agencies
will support the establishment
an
of
district because it benefits the community in the
following ways:
o
Provides timely completion of needed infrastructure.
o
Certainty of completion (must be done within 3 years).
o
City
will manage development of infrastructure through
their own staff.
o
Requires
payment of future improvements by other
than
existing residents.
When
districts
are
formed
86
to
build
public
capital
improvements,
to
bonds are usually sold and their proceeds used
pay the cost of construction,
and incidental expenses.
term
and
right of way
acquisition,
The debt service is paid over
of the bonds from the annual installments of
principal
interest received from the assessments levied.
cases
the
fixed
assessment against each parcel is
lien
similar
approximately
interest.
level
to
an
annual
amortized
payments
The assessment liens,
the
In most
secured
by
mortgage,
of
a
with
principal
and
then, are financed through
the issusance of bonds payable over a period of
providing
the
years,
advantage to the property owners of
thus
deferred
funding for the improvements.
Assessment
features.
o
district
financing has
several
attractive
These may include some or all of the following:
Financing
costs
are relatively low
compared
to
private financing.
o
Larger
construction
possibly
projects
may
be
resulting in lower unit prices
feasible,
and
the
spreading of fixed costs over several owners.
o
Each
benefited
party pays his fair share of
the
costs.
o
Each property owner can decide if he is willing to
incur
the cost in return for the benefit he
receive.
If there isn't adequate support by
will
the
owners the project can be abandoned.
o
Piecemeal
example,
construction
can
be
avoided.
For
an entire street can be improved under a
single contract rather than relying on each
87
owner
to
improve his own frontage over a long period of
time.
There
are
also
some possible
negative
factors
that
should be considered:
o
Some
projects,
primarily
such
as
those
that
provide
a general public benefit rather than
a
special benefit to the immediate vicinity, may not
easily
lend
themselves
to
benefit
assessment
financing.
o
Many
assessment
together".
public
districts
are
hard
to
"put
If several owners and/or more than one
agency
considerable
are
time
involved in
may
be
the
project,
required
to
a
reach
sufficient consensus to proceed.
o
Some
may
additional costs are involved which
may
or
not be offset by the savings mentioned above.
These
include
costs of
preparing
the
required
report, special legal counsel, cost of issuing the
bonds, and additional public agency administrative
effort.
o
The
inherent
drawbacks
are
that
assessment
practice is not altogether streamlined,
requiring
complex administrative choreography down to minute
detail.
amounts
Assessment
bonds
are
often
and are sold to specialized
in
small
buyers,
are somewhat expensive compared to other kinds
public bond issues.
88
and
of
Assessments have a bad public
image.
in
are
The constituents find something suspicious
the legalistic notion that special assessments
not
taxes even though they
Therefore
elected
officials
feel
run
the
the
same.
risk
of
attack.
o
The
boundaries
of
the
political
jurisdiction
conducting the proceedings automatically limit the
boundaries
of
the
assessment
district
unless
consent and jurisdiction can be obtained from
the
other political jurisdictions.
Improvements
that
can be financed
through
assessment
districts include the following:
Grading
Sidewalks
Sanitary sewers
Storm drains
Street lighting
Streets
Curbs and gutters
Fire protection
Flood protection
Water supply
Gas supply
Retaining walls
ornamental vegetation
Parks
Parkways
Stabilization of land
off-street parking facilities
The evolutionary edge is assessments for fire
police
stations,
libraries,
schools,
stations,
and transit systems.
Assessment districts have also been used to acquire
improvements
and,
where
authorized,
to
pay
the
existing
annual
operation and maintenance costs of certain public facilities.
The
district is created by act or vote of residents for
89
a
specific
bonds
purpose with the power to levy taxes
for
improvements.
improvements
represents
municipality
found
a
special
long-term
float
assessments
for
loan
the
from
to the developer at interest rates below
in the conventional market.
special
and
The
and
Merchants can
those
also
use
assessment districts to pay for private improvements
services,
removal,
such as increased police protection or
the development of a pedestrian mall,
trash
and improved
lighting.
Although
financing
tax
increment is intended to be
resource
Redevelopment
to
Agency,
retire
the
debt
of
it is their intent to use
the
primary
the
Soboba
assessment
district vehicles authorized under California Law (inlieu
tax
allocation
majority
of
bonds) as the debt instrument to
of
finance
the improvements required in the Project
a
Area,
and to use tax increment revenue to retire the annual debt of
This approach is advantageous
the assesment district bonds.
for several reasons:
o
The liability of the debt is placed on the present
or
future
instead
property
owners within
of property owners-at-large,
the
district
unless
is available to retire the annual
increment
tax
debt
liability.
o
It
provides an incentive for the property
owners
to proceed with development at an accelerated rate
in
to
order
Agency
and
assume tax increment
to
liability.
90
minimize
their
flow
annual
to
the
debt
o
It
provides
financing
the
Redevelopment
Agency
with
a
vehicle which is readily marketable
in
today's economy.
o
It insures that the major project improvements are
constructed at the earliest possible time.
Inasmuch as the security for the bonds is based upon the
security
the
of the land being assessed,
the price or value
bonds will somewhat vary according to the extent of
security.
Underwriters
generally
will
take
of
the
into
consideration the following items in determing their pricing:
o
Improved versus unimproved parcels.
o
Second
home
and
resort
home
versus
primary
residence.
o
Growth pattern of area.
o
Size of parcels and number of property owners.
o
Term of bonds.
o
Zoning, land use and governmental restrictions.
o
Terrain and topography.
o
Land-locked parcels.
o
Slide protection improvements.
It
is
$2,000,000
improvements
estimated that the bridge will have
to
$2,500,000
associated
and
with
estimated cost of $8,000,000.
using
that
the
other
a
cost
infrastructure
specific
plan
have
an
Financing of the improvements
tax exempt assessment district financing would
in savings over conventional financing by a
Redevelopment
of
developer.
result
The
Authority's authorization to issue bonds is in
91
place,
and bonds will be issued after the first two
housing units are in place.
progress
hundred
The wait until development is in
is expected to result in lower bond costs and
also
provides time for a redesign of the bridge to provide through
access between Villages 1 and 2.
A
also
of
special landscape and lighting assessment district is
anticipated to pay for maintenance of the public
ways.
Special
vehicle.
assessments are a
desirable
right
financing
They are exempt from Proposition 13, no 2/3's vote
is required,
and they are not subject to the 1% property tax
limit or the GANN spending limit.
The
is
use of the 1913 Act procedures with 1915 Act
coming into more frequent use in the southern
area.
This
fund
California
procedure requires establishment of
which
the
assessment
engineer
must
bonds
a
reserve
estimate
and
structure into his engineer's report and into the assessments
on the various properties.
There
are
two
broad categories
districts are initiated.
either
owners
of
assessment
public
or in response to
deficiencies
category being by one or more developers,
portion
which
The first being by public agencies,
on their own initiative,
petitions
by
and
property
the
other
seeking to meet
of their improvement requirements by the
a
assessment
district process.
It
is
possible
improvements
with
the
for
the
developer
assessment
to
district
install
the
subsequently
'buying' the public improvements, if the developer can handle
the cash flow.
92
As a general rule, the property should increase in value
at
least
the amount of the assessment
assessment
represents
a
specific
beneficial to that property;
portion
taxes
of
because
capital
for this reason,
the principal
even though that
may be collected on his tax bill.
do
not
In
the
improvement
an assessment is not deductable from the
of the property's owner,
engineers
levied
income
assessment
practice,
assessment
evaluate the benefit-cost ratio
for
the
improvement on any particular property.
4.
Mello-Roos Districts
On January 2,
Act
of
1983, the "Mello-Roos Comunity Facilities
1982" became
effective.
This
statute
formation of community facilities districts,
are
authorizes
which districts
authorized to provide certain additional public services
or facilities to be financed through elector-approved special
taxes or funded through special taxes securing long-term debt
for construction of public facilities.
Mello-Roos districts
are not financed by property taxes.
This
District can be formed by any local agency
(City,
County, School District, Special District) for the purpose of
providing additional services or facilities secured by annual
special
for
long-term
request
written
body,
pay
taxes or facilities secured by special taxes to
or
debt.
signed
The District is formed
by two members of
either
the
by
a
legislative
a petition submitted by not less than 10%
of
the
registered voters within the proposed District boundary.
After
initiation,
the
93
legislative
body
adopts
a
Resolution
of
Intention
describing
the
facilities
indicating
the
need for a special tax to pay for the
expenses,
and
and
stating their intent
or
services
to
a time and place
fixing
hearing on the establishment of the District.
hearing,
if
fifty percent (50%) or more of
to
proceed,
be
provided,
for
a
costs
public
At the public
the
registered
voters within the proposed District or the owners of one-half
or more of the area file written protests against
(1/2)
establishment
of
the
the proceedings
District,
the
shall
be
upon conclusion of the public hearing, the
abandonded.
If,
legislative
body
determines
to
proceed,
establishing the District is adopted.
Resolution
a
Since the
Mello-Roos
District requires additional expenditures by property owners,
it
is
limited
Payments
tax
local
by the ability of
the
homeowners
to
pay.
for a Mello-Roos assessment are considered
made
and
currently
are
deductible
for
income
a
tax
purposes.
Private financing sources
C.
D&S Company has no specific hurdle rate (desired rate of
return on investment) which it uses in evaluating prospective
projects.
To obtain construction financing, D&S must show an
anticipated profit margin of 15 to 20%.
The profit margin is
calculated as follows:
Profit/Costs = (Income -
Costs)/Costs
There is no adjustment for the time value of money since
their
or
projects to date have been of short duration (one year
less).
construction
The current plan for Soboba Springs is
lending
village by village that they
94
to
plan
seek
to
construct, and to sell off land for other sites for others to
develop.
Construction lending
1.
Loan
amounts cover 80% of the total income
from the sale of the units.
prime plus 1-1/2% or 2%.
90
to
120
anticipated
Interest rates are typically at
The developer applies for the loan
days prior to the
start
of
construction
when
tentative map approval has been granted by the City (approved
with
conditions).
The loan is made on recording of the map
(vested rights),
payments.
first
and
funds are released
period,
no
significant
mobilization
back
formula
unit,
funds
are
The lender deducts interest earned against funds
loaned from the progress payments.
pay
progress
Although a land draw charge can be made during the
available.
to
against
the principal on the sale of each house
calculated
where
The developer is required
the
as 110% of the release
price
in
for
release price equals the total loan
a
each
value
prorated per housing unit.
astute
construction
consider
Hemet
such as Wells Fargo are
banks
While
utilizing
has
concentrated
over
a
lending,
financial
billion
the
known
developer
institutions in
dollars
in
should
the
also
Valley.
accounts
savings
in banks located on Florida Avenue.
their
for
There are
almost three times as many bank accounts as there are
people
in Hemet, suggesting that Hemet is a regional banking center.
Local
banks
with
significant resources and a
real
estate
development department include Hemet Federal Savings and Loan
95
Other banks with
and Inland Savings and Loan.
resources
in the community include Bank of
Savings and Loan,
considerable
Hemet,
American
Home Savings of America, and Great Western
Savings.
Developer equity
2.
It
is not anticipated debt equity can be used for
acquisition,
thus,
the front-end acquisition costs must
borne by the developer and any investors.
land
is
Daon.
covered
For
under several agreements with
example,
on
paydown
can
funding
for
be
required
a Village
obtained?
because
partnership
of
Lasky
his
and
separate
of
payment
there is a question
before
experience
is
construction
brought
was
is,
that
and
Based on the developer's schedule,
resources.
to
In addition,
whether the Daon note can be subordinated,
full
Butzen
the Daon note is at 12% with
principal at fixed times.
be
Acquisition of the
prices for individual parcels requiring
release
land
into
the
financial
equity of up
$7 million will need to be invested in the project by the
end of 1986 to cover initial land and development costs.
Investor equity --
3.
syndications
was
negative.
development plans,
changing
of
experience
previous
Sidlow's
syndication
Too
little
scale
small
with
flexibility
in
and how do you let somebody out
the deal when they have their own financial emergency?
Investor equity --
4.
A
could
joint venture
joint venture with a medical partner such as
Scripps
homeowner's
housing
be
created
that
balanced
the
investment with reserves for medical expenses,
96
i.e., provide
discounted medical service for residents of the development.
As
an
alternate,
joint venture with
provide reverse mortgages.
equity
position
over
local
banks
to
The banks would obtain increasing
time
in
the
residential
units
in
exchange for lower debt service payments.
Private contributions --
5.
Solicit
health
for
those
the
or
private
trusts.
Assist
in
of a local citizens' group to continue to
citizens.
to
contributions to studies on aging from national
organizations
formation
foundations
funds to support a public
facility
the
solicit
for
elderly
The development of a congregate care center
next
Scripps Clinic is the start of a medical center
for
the aging.
6.
Soboba
investment
more
Land sales
Associates
plans
to
create
value
for
their
by converting the land use from desert living
intensive uses,
create a master plan,
obtain necessary entitlement to do so,
develop infrastructure,
first two phases of housing,
and sell land.
construct the
The land values
will have greatly increased over their initial values due
adjoining
can
to
development.
By selling land,
Soboba Associates
shorten their length of involvement in the
project
minimize risk of hitting a downturn in the market.
be sold to match cash flow needs,
to
and
Land can
or retained to participate
in increased futures value.
Land
to
follow
can be sold to other developers with
master
plan and design
97
guidelines.
restrictions
The
Irvine
Company
carefully
by
the technique
uses
guidelines
The
Irvine
Company
builder's
proposal includes a proforma
shares
the
a
marketing
1%
product.
a
target
then The
Irvine
marketing fee at the
recorded
Company
of
time
sale
(the
Irvine
In addition, the
shares in builder profit in
excess
of
the
The Irvine Company shares 50% of the profit
excess of 8% and less than 10%,
of
the
subdivision
fee goes toward financing marketing by The
proforma profit.
excess
with
design
The land price is paid
Company of the total development project).
in
for
requests
in the increased price in proportion to
builder as soon as there is a
plus
Irvine
achieved
If the builder raises the prices of his
value of the land in the base price.
map,
issues
over the value set in the agreement,
Company
they
however,
and the sales price range of the target
profit margin of 8%.
by
sale;
to builders and specifies the planning and
proposals
units
land
control the end product and profit range
builders.
The
of
10%.
and 60% of the profit in
forward
with
five years,
then
If the developers do not go
development within a specific time,
i.e.,
Soboba Associates has an option to get ownership back for
established
right
of
price.
Soboba
Associates should retain
refusal to control other developers coming
"flip" ownership to a third developer.
98
an
first
in
to
V.
ALLOCATION OF COSTS AND BENEFITS TO THE PARTIES
A.
Proforma/Cost Estimate
The developer's proforma
1.
The developer, Soboba Associates, is familiar with short
term
projects
such
as
acting
a
as
builder
These projects are of a
preparation has been done by others.
or two year duration,
not
been as important as the overall profit to be
The
Soboba
the completion of build out may
and
versus
tail end housing sales revenue
prepared
for
that
financing
schedule
land
of
eight
take
the timing of the front end infrastructure costs
years,
proformas
realized.
From the start
project is different.
to
has
and the timing of cash flows
one
acquisition
site
where
each
component
(or
is
critical.
Village)
include an estimate of "carrying
Static
have
been
costs"
for
development that must wait to match the absorption
for each phase.
Starting a phase before there
is
enough demand to purchase the units will increase total costs
due
to the relatively high costs for
carrying
construction
financing.
The
estimates
of revenue,
costs and profits for
component are summarized as follows:
99
each
SUMMARY OF DEVELOPER'S PROFORMA
Type
Phase
Number of
Dwelling
Anticipated
Profit
Selected
Units
3E3EE=-
Moderate $ 895,000
Village 1
Yes
42
24
Premium
725,000
Village 2a
Moderate
970,000
Yes
200
Village 2b
Moderate
570,000
Yes
200
Village 3
Moderate
995,000
Village 1
Village 3
Village 4a
Village 4a
215
Premium 1,095,000
Yes
90
Moderate 1,350,000
Yes
81
Premium
45
955,000
Yes
227
Village 4b
Moderate 1,255,000
Village 4b
Premium 1,070,000
103
37
Village 5
Moderate
205,000
Village 5
Premium
245,000
Yes
26
Village 6
Premium
300,000
Yes
200
Golf Course
N.A.
-0-
Yes
-0-
Scripps/Butzen
N.A.
50,000
Yes
-0-
Seventh Street Moderate 1,340,000
Yes
200
TOTAL
*
**
$
8,070,000 *
1266 **
Total includes only selected alternates.
Total includes 950 moderate units and 316 premium units.
100
The City's proforma
2.
There are several areas in which it is desirous that the
City take an active role in supporting this project,
is
thus it
will
to estimate what the City of San Jacinto
important
gain by doing so in economic terms.
"The New Practitioner's Guide to Fiscal Impact Analysis"
by
Burchell,
Robert
David Listokin,
and
William
Dolphin
defines fiscal impact analysis as:
current, public costs and
"A projection of the direct,
revenues associated with residential or non-residential
to
growth
the
local jurisdiction(s)
this
which
in
growth is taking place."
There are several different methods which can be used to
most
appropriate
excess
estimates
of
expected
local
The Case Study approach requires
or deficient
service
with
faced
for small rapid growth cities
large complex developments.
the
The Case Study Method is
cost-revenue impact.
analyze
service
That
responses.
and
capacities
specific
is,
estimates are made of how the new development will impact the
of each governmental department.
expenditures
This
method
provides the greatest detail of analysis, however, it is time
consuming and expensive.
The
Inc.
Per
based
to
City of San Jacinto contracted
currently
Ultrasystems,
provide a less costly analysis largely based on the
Capita
on
with
Multiplier method.
preliminary
in
analysis
The following
information
received
on
the
progress and has been adjusted to reflect
101
is
study
the
development scenarios described above.
The results of the City's proforma are:
Revenues
$ 104,000
Property Taxes
Other Taxes
Licenses and Permits
Intergov't Revenues
Charges for Services
Use of Money and Property
Fines and Forfeits
Miscellaneous (EMWD)
274,000
0*
68,000
29,000
0
1,000
202,000
Total Revenue
$678,000
Expenditures
$ 46,000
INCL
148,000
11,000
80,000
General Gov't--Departmental
General Gov't--Non-Dept.
Public Safety
Public Works
Parks, Recreation, Culture
11,000
69,000
204,000
Sewer
Capital Outlay
Miscellaneous (EMWD)
Debt Service--Principal
Debt Service--Interest
10,000
7,000
$586,000
Total Expenditures
$ 92,000
Expected Annual Increase
In City Cash Flow Due to
This Project
*
In addition to the annual increase in cash flow, there
are also one-time fees generated by the project as
follows:
Property transfer tax on initial sale
Permit and Processing fees
Total One-Time Revenue
The
Fiscal
$
80,000
7,260,000
$7,340,000
Impact Analysis is based on the
method
of
calculation shown in detail in Appendix 6.
B.
Benefits and risks of development to city
The
financial
City
of
San
Jacinto
evaluated
its
projected
capability to meet the funding requirements of its
102
CITY OF SAN JACINTO REVENUES AND EXPENDITURES
1976
1977
1978
1979
1981
1980
1982
1983
1985
1984
REVENUES
Property Taxes
Other Taxes
Licenses and Permits
Intergov't Revenues
Charges for Services
Use of Money & Property
Fines and Forfeits
Miscellaneous
TOTAL REVENUES
10
t)
$104,296
104,319
16,414
348,962
37,450
11,059
11,668
431,711
$1,065,879
$127,141
130,599
20,577
388,650
45,092
25,966
6,003
581,314
$184,783
191,172
42,122
408,432
99,713
29,468
10,435
491,679
$85,814
304,070
41,926
511,667
133,372
47,847
13,369
687,308
$163,363
356,369
40,242
511,216
151,589
48,897
15,324
454,233
$190,615
286,515
60,758
924,717
179,801
78,750
23,970
94,710
$227,376
380,737
73,498
476,657
254,814
117,869
20,651
45,768
$230,442
453,401
57,750
796,044
179,625
109,682
19,179
97,461
$266,686
511,667
245,939
918,729
182,525
159,153
22,881
52,515
$378,694
571,956
268,357
696,787
222,298
238,725
12,385
58,200
$1,325,342 $1,457,804
$1,825,373
$1,741,233
$1,839,836
$1,597,370
$1,943,584
$2,360,095
$2,447,402
EXPENDITURES
Current
Gen't Gov't - Dept
Gen't Gov't - Non-Dept
Public Safety
Public Works
Parks, Rec, Culture
Sewer
Capital Outlay
Miscellaneous
Debt Service
Principal Repayment
Interest and Charges
TOTAL EXPENDITURES
NET CHANGE TO CITY
BALANCE SHEET
d
$140,998
92,029
243,600
145,358
86,464
0
0
314,133
$130,238
$222,701
136,451
447,900
194,404
108,477
4,622
0
274,458
$239,035
109,998
455,697
154,800
66,003
4,104
117,888
609,552
$231,414
143,497
321,431
137,996
64,581
10,380
255,778
386,928
71,099
650,418
264,034
67,403
43,026
92,292
310,734
$199,809
171,165
608,066
332,814
71,321
21,419
62,647
0
$183,307
15,658
642,578
305,845
118,559
49,552
182,670
0
$142,103
79,486
555,540
364,702
71,457
45,972
197,081
0
$147,445
90,932
634,969
320,472
69,133
65,084
474,791
53,615
$169,741
125,345
821,951
242,755
93,279
56,833
257,865
0
10,000
3,938
14,000
3,580
25,938
0
17,100
0
16,500
0
15,000
900
15,000
300
0
1,186
0
0
39,800
24,000
$1,774,177 $1,746,920 $1,483,141
$1,513,469
$1,036,520 $1,468,409 $1,414,951
$29,359
($143,067)
$42,853
$51,196
($5,687)
(D
C)
Note:
Data after 1980 do not include Eastern Municipal Water District under
Miscellaneous.
$356,695
$83,901
$1,457,527 $1,856,441 $1,831,569
$486,057
$503,654
$615,833
population as it currently exists,
growth"
posture
services.
and determined that a "no
would lead to stagnation and a
decline
in
Therefore, the city is interested in developments
which can provide a net economic benefit to the city.
In addition to the direct benefits of development, there
are
other
benefits that ripple through the
example,
community.
increased retail sales due to a revitalized
For
retail
area and new stores will mean more sales tax revenues for the
City.
New
residents
in
the Project Area will
increased population-based revenues.
New job
result
in
opportunities
mean less people receiving unemployment subsidies.
The impact of this development on the cities finances is
significant.
Figure
expenditure
project
data
20
shows
the
for the period 1978
City
revenue
through
1985.
will provide net positive cash flow to the
$ 92,000
per
million.
and
This
City
year in addition to the one-time fees of
This
compares
to recent City net cash
of
$7.3
flows
of
approximately $500,000 per year.
The
carry
risk
through
construction
risk,
master
the
to the City is that the
as planned,
will
not
financing
and
To mitigate
this
City can delay construction of the bridge until a
plan
has
been
started.
Redevelopment
Project
been issued to date.
Redevelopment
challenge
especially after
of the bridge has occurred.
construction
the
developer
approved
and
Although
significant
the
Soboba
has been established,
housing
Springs
no bonds
have
Since the area itself is not blighted,
Project
could be the object of
from a disgruntled group (such as an
104
a
legal
under-funded
school
It
board) based on being an inappropriate use of
funds.
is suggested the developer have his legal counsel
review
this risk with the city attorney.
Another
impact
demographics
brought
on
the
be
the
change
in
group
of
on by the addition of a new
people to the community.
will
City will
The new group,
probably retirees,
tend to make San Jacinto more like Hemet.
An increase
of 25% in the City's population due to this development could
lead to changes in the community power structure, even though
the
retirees are not as politically active in the Valley
as
younger individuals.
C.
Benefits and risks of development to developer
The
golf
included
golf
course
and
loses
money
when
carry
costs
the continued ownership and operation
course will be a drain on resources unless
are sold to recoup the investment.
golf course can be sold to the City,
may
not
unwise
for
developer
to lose
the
memberships
however,
the funds for the purchase and
the
of
Soboba Associates assumes
the
have
are
it
control
the City
would
of
its
be
major
amenity.
If
the
(absorption
especially
Return
houses
risk)
if
don't sell as
as
anticipated
then financing costs will be
compounded,
the units have been built and remain
unsold.
of housing units or land sales during escrow or
purchasers
who
default
relatively small risk.
then
quickly
a
on seller financing
is
from
usually
a
If the developed land sales are slow,
primary source of raising revenue will
105
be
delayed.
The
depth of the partners pockets (Sidlow and Lasky) is
not
known, however, staying power is assumed.
This
type of project is different than the projects D&S
Company is usually involved in.
Instead of one project which
can be completed within 12 months,
term
development
Soboba Springs is a
project that can go through two
or
long
three
economic cycles.
If the project is not master planned, the developer runs
the
risk of a change in City policy at any time
restrict further development.
phases
of
product
master
the
that cannot change to meet
approved
as
detailed
required,
design
however,
Approval
moderate
for
units
subsequent
for
the PUD,
a
total
developer
market
into
conditions.
for each
phase
Thus,
can
be
downward modification with
count
a
for Conceptual
it may be wiser
unit
a
By
increases in density at
later date are subject to opposition.
Plan
could
Early zoning approval for all
development can lock the
planning,
that
to
of
show
1400,
specific
all
with
Subdivision
Map approval at a later date.
By pursuing a diverse set of
options for individual parcels,
Soboba Associates can spread
their risks.
The environmental impact report implies there will be an
impact
on the educational system requiring $1.2 million
schools and buses.
the
with
development
for
If a covenant is placed on the deeds for
of an adults only community
in
accordance
City zoning ordinances for a Senior Overlay District --
no school age children allowed -the school system.
then there is no impact
on
Although City zoning ordinances indicate
106
it is possible to limit ages within a district and two of the
housing subdivisions surveyed in Appendix 1
comparable
have
such restrictions, there is a question whether such districts
can
stand
legal challenge based on
a
age
discrimination.
thesis does not delve into the legality of City of
This
zoning
Jacinto
ordinances,
however,
it is
San
suggested
the
The use
developer have his legal counsel review this issue.
of a PUD designation instead of Senior Overlay District
will
legal issues and require negotiation of the
$1.2
avoid
the
by the school board
requested
million
(headed
by
Clayton
Record
--
board,
the developer can point out that the development will
annually
In negotiating with the
see Appendix 4).
provide about $340,000 to the school board
school
through
County
of
Riverside ($68.0 million x 1% of property valuation x 50%
of
of
distribution
property taxes collected by the
generated) even if there are no school age children in
funds
the development.
To minimize risk, the developer wants to position itself
to
be able to get in and out quickly by minimizing up
costs
and
being prepared to sell off
improved
front
lots.
The
developer will be best positioned with a detailed master plan
and estimate of residual land value for each Village.
D.
Distribution of costs and returns
The
thesis
million,
build
could
out of the project area as proposed in
lead
to
increased
property
values
of
not counting the Seventh Street Shopping Center
the hillside resort in Village 6.
107
this
$68
or
To achieve this goal, on-
and off-site infrastructure costs are paid for directly
site
by the developer ($5.2 million),
through fees ($7.3 million),
issue
indirectly by the developer
bond
and by the City through a
for the bridge ($5 million).
the
In many instances,
fees appear to be a duplication of charges when the developer
is
the
installing
infrastructure.
project
No
of
this
magnitude has been built in the City of San Jacinto to
and
the
date,
an
creation of a master planned community provides
opportunity
the
for
City and developer
to
sit
down
and
negotiate the magnitude of fees charged, credits for off-site
of the fees generated by the project.
be
to
used
and specific use
installed by the developer,
infrastructure
widen
Main Street
and
For example, fees can
install
a
signalized
intersection at Main Street and San Jacinto Street that
benefit
new
will
the entire community as well as the residents of the
The
development.
expertise,
developer,
due
to
construction
may be the most appropriate entity to build a new
fire station on Main Street on land donated in Village 2,
if
the costs can be credited toward fees.
negotiations
Similarly,
Municipal
are
required
with
Eastern
of
Water District to finalize the magnitude
fees
and off-site infrastructure required.
The
and
details of land use,
allocation
of
between the City,
costs
infrastructure
should be worked
requirements,
out
in
detail
EMWD, and the developer, and formalized in
a written understanding.
VI. CONCLUSIONS
As noted in "Managing Development through Public/Private
108
Negotiations" by Rachelle Levitt and John Kirlin, the growing
practice of public/private bargaining raises four key issues:
an acceptable,
striking
o
realistic
enduring bargain that is
in
and has the approval of key parties
the political arena.
norms
satisfying
o
equity
groups
and
affected
that permit all
legitimacy
and
of
(stakeholders)
to
political
individuals
public
making through representation at
decision
in
participate
meetings.
political
Ensuring
o
accountability
lets
that
bargaining be perceived as an appropriate exercise
political
of
decision
making
and
as
not
inappropriate "zoning for sale."
value
Creating
o
for both the private
and
public
sectors is the key to successful bargaining.
thesis has focused on determining the
This
use
for a specific site,
to
applicable
the process outlined
other large scale
projects
is
the
where
private sectors interact to determine the
and
public
many
however,
appropriate
final
outcome.
Projects
city
of
and
and temper regulatory policies in the light of
what
learn,
local
positions
if
economics
negotiators
finance
they
can survive the problems of implementation
learn
about
development
and developers learn to operate in the fishbowl
politics and adjust their
plans
to cope with political realities.
109
and
negotiating
Success can be
achieved for both parties if:
o
The
city and developer work together to establish
project feasibility in the early stages.
Both
o
parties
are willing to consult
and
revise
agreements when circumstances change.
o
Both
become
increasingly committed to
having
a
project as they get deeper and deeper.
o
Both
show
great
flexibility
and
ingenuity
in
coming up with solutions to unexpected problems.
The
create
City
Soboba
Springs development is
value for the developer,
government,
cooperating
in
and
the
an
the users of the site,
community
as
working out a master plan
value can be enhanced for all parties.
110
opportunity
a
for
whole.
to
the
By
development,
APPENDIX 1
Soboba
MARKET ANALYSIS
Associates conducted a preliminary market
by placing a questionaire in the golf course restaurant.
results of the study (based on 78 completed forms) are:
1)
2)
What is your current residence location?
San Jacinto
32 %
Hemet
Other
38 %
30 %
What is your employment status?
64 %
36 %
Retired
Employed
3)
4)
Where is your employment located?
Hemet/San Jacinto
Riverside County
40 %
17 %
Other
43 %
Current residence:
91%
Own
9%
Rent
5)
How would your home be utilized?
85 %
15 %
Primary home
Vacation home
6)
What type of home do you currently have?
Condominium
Single family home
Mobile home
7)
8)
13 %
51 %
36 %
How many people live in your home?
One
Two
Three or more
6%
86%
8 %
Size of home desired?
1 bed/l bath
1 bed/2 bath
2 bed/2 bath
3 bed/2-l/2 bath
4
1
60
35
111
%
%
%
%
study
The
Price of home desired?
9)
Under $60,000
$61,000 to $75,000
$76,000 to 90,000
$91,000 to 100,000
Over $100,000
9%
24 %
28 %
15 %
23 %
When would you be interested in purchasing?
10)
Within six months
33 %
45 %
Six months to one year
One to two years
A
survey
22 %
of building permits in the Hemet/San
Jacinto
area gave the following data:
Single Family Housing
Multi-family Housing
No. of
Units
Cost/
Unit
No. of
Units
Value
(000's)
Value
(000's)
Cost/
Unit
28
28
Year
San Jacinto
102
101
121
14
Hemet
71
5,558
5,184
4,833
504
54
51
40
36
171
4,784
36
0
1,000
0
27
973
4,404
18,011
19,173
62
58
573
333
266
173
13,670
6,998
51
40
218
359
5,042
7,445
544
A
survey
of
14
comparable development
1985
1984
1983
0
36
1982
1985
1984
1983
1982
31
23
21
39
projects
in
the
Hemet/San Jacinto area gave the following data:
Price per
Project Name
Sq Ft
Cummulative Sales
1
2
3
4
5
Unit
Size
Remaining
Units
Single Family Detached
21 28 32 40 45 1150/1400 97
Bel Air Estates 64/70
962/1428 53
25 30 39 40 47
58/74
Fairview
33
1375/1628
72
38 59 84 83
51/55
Jacinto West
311
1431/1918
51
89
0
0
0
Mirador Pointe 53/59
0
980/1766
0
0
9 14
0
50/69
Olive Meadows
32
1042/1644
78
87
63
67
55
58/68
Sanderson Est.
992/1500 59
0
4 13
0
0
57/70
The Groves
2
1096/1490
10
4
0
0
0
58/63
Visalia Vistas
-------------------------------------------------------TOTALS
Incremental
Sales
50/74
139 189 236 300 363
--
50
112
47
64
63
962/1918
587
Project Name
Price per
Sq Ft
Attached/Townhouses
Lincoln View
55/65
57/59
Sunrise
TOTALS
Incremental
Sales
55/65
Unit
Size
Remaining
Units
0
33
0
49
0
58
13
61
28
75
1140/1628 188
1
1030/1075
33
--
49
16
58
9
74 103
16
29
1030/1628 189
sales were monitered at the ends of
Cummulative
Note:
Cummulative Sales
3
4
5
1
2
the
month with 1 = January 1985, 2 = April 1985, 3 = July 1985, 4
=
December 1985, and 5 = March 1986.
Two
of
the
developments have
allows no one under 18 years of age,
one owner to be older than 41.
age
and the other
Meadows
suitable
lot
requires
For single family
sizes range from 3500 sf to 8000 sf.
The Olive
project has ceased marketing and been unable to
for
get
had
taken
its fourth phase which is currently
being
financing.
reservations
one
None of the developments have
an amenity such as a golf course or view.
homes,
restrictions:
The
Jacinto West
revised.
113
project
APPENDIX 2 --
DEVELOPMENT FEES
the
The City of San Jacinto charges the following fees for
Soboba Springs Project:
Tentative Tract Map
13,300
Checking Final Tract Map
16,650
Off-Site Improvement Plan Check Fee
1-1/2% of
installation cost
Off-Site Improvement Inspection Fee
3-1/2% of
installation cost
General Plan Amendment
5,650
Environmental Impact Report
addition to City fees,
In
charges
District
offset
partially
fees
by
contract
cost + 25%
the Eastern Municipal
of up to $2,000 per unit
specific
developer
Water
which
payments
are
for
infrastructure needed for the project, i.e., new pump for the
sewage
station,
lift
additional
500,000
extension
gallon
of
water
water tank to be
mains,
sited
and
on
an
the
developer's hillside property.
The total estimated value for fees is roughly $5,000 per
unit
for
a
$65,000
dwelling
dwelling.
114
and
$7,000
for
a
$90,000
APPENDIX 3 --
OTHER METHODS OF PUBLIC ASSISTANCE
Federal Programs --
1.
Housing and Urban Development
Federal funding is not frequently used because there are
In cities like Irvine,
there may be difficulty in qualifying
community.
due to the relative prosperity of the
funds
for
consuming.
time
many regulations and processing is too
too
In San Jacinto, a city that needs the funds, there may not be
for
funds
enough
staffing to go
application
the
through
procedures.
Community Development Block Grants
o
Construction financing costs can be reduced by advancing
CDBG
to
funds
low- or
zero-interest
(thereby
months
expenditure).
prime
freeing
the
CDBG
low
relatively
the city has a
budgeted
projects
for
expenditures will not be constructed
CDBG
the
when
a
rate for CDBGs and when many
expenditure
to
for
developer
mortgage
construction
for
a
"interim"
for
funds
several
Because construction loans are normally pegged
rate,
which has been high and
uncertain
in
recent years, the interest paid for construction financing is
a significant capital cost.
than
market-rate
interim
Therefore,
financing can
lower
provision of
be
a
significant
subsidy.
on
Based
funds.
The
Anybody
successfully
extension
gets
county
the
cities or districts compete for these funds
proposals
submitting
system.
current population levels,
can
obtained
that
are ranked based
compete
$200,000
for
funds.
on
The
in CDBG funds for
scoring
a
City
a
to an affordable housing complex elsewhere in
115
by
has
sewer
the
City.
Urban Development Action Grants
o
The
program is used to
UDAG
fund
construction
local
projects that stimulate private investment to create jobs and
improve the tax base.
Investment tax credit (Federal)
o
tax credits (ITCs) are available for certain
Investment
expenses
of
renovation
and
and
rehabilitation
are
not
been
most
applicable to new construction projects.
2.
Eminent domain
Eminent
used
commonly
by
domain
for urban renewal and community
development.
local public agencies or
authorities,
Under this procedure,
The
development.
land
for
public agency purchases land at its
fair
state
under
operating
has
public authorities
statutes,
assemble
market value and sells it to private developers for use under
a publicly approved development plan.
domain is the authority to acquire property for
Eminent
a
purpose in the public interest.
public
Even
lightly.
agency
is
to
action,
It is
if eminent domain is exercised,
required by law to hold public
the
hearings
pay the owner fair market value,
or
is entitled.
she
property,
it
Once the city
can dispose of it through land
land costs, or land write-down.
3.
has
Land lease
116
public
on
the
and to give to
the occupant all relocation benefits and allowances to
he
used
not
which
obtained
lease,
the
shared
than
capital
or air rights leases require less initial
Land
purchase
outright
by the
lease
land
A
developer.
reduces
the amount of debt that a project must support as
portion
of the project cost as the land does not need to
The
financed.
equity
tax
favorable
which
structure,
than
a land
that
enables investment in aspects of the development
lease
consequences
--
for
in
example,
can be depreciated over 15
be
reduced,
In addition,
thereby reducing the developer's risk.
have
is
needed for the project
a
years,
the
rather
which is a deductible business expense and in
in land,
nondepreciable.
the
In additon to
on a reasonable and predictable basis.
years
over
can require that land leases escalate
Cities
conventional leases, a city can lease land with an option for
the
developer
to purchase at a later date based on
fair
a
market appraisal.
Leasing potentially offers the city two main advantages:
the ability to control the site through continual
and
share
a
appreciation
Springs,
the
in future profits through
of the property value.
ownership,
income
rental
In the case of
and
Soboba
golf course could be sold to the City and
the
club facilities leased back to Soboba Associates.
4.
Shared land costs
Shared land costs result in savings to the developer and
the
city.
preparation
For
the
example,
costs
of
land
and
site
can be shared by the public and private partners
where the developer gains a site of prime location that could
not
be purchased on the open market,
117
and the
city
obtains
much needed housing and an increased tax base.
Land cost write down
5.
Land write-downs reduce the front-end capital costs of a
project by subsidizing the difference between the actual cost
of
acqusition
General
and clearance and the cost to the
general
revenues,
Development
obligation
Block Grant (CDBG) funds,
developer.
Community
bonds,
and other local funds
might be a source of financing.
6.
Tax
Tax abatement
abatement can provide relief for overall
financing
cost of a project because a reduction in local property taxes
reduce operating expenses and result in an increase
will
operating
net
income
Because the financing
(NOI).
in
of
a
project is directly related to NOI, an increase in the amount
of
cash
can be obtained through
equity
Tax
incentive.
developments,
abatement
however,
could
it
is
be
the
used
not
a
use
for
popular
of
this
commercial
of
form
assistance.
7.
Industrial revenue bonds
Industrial revenue bonds (IRBs) are extremely helpful to
businesses that need assistance in financing the
of land,
equipment.
local
and the purchase of
Normally, the power to issue IRBs is vested in a
development
financial
have
the construction of buildings,
acquisition
authority.
The
obligation for repayment,
authority
assumes
so that a company
no
must
sufficient financial resources to ensure prompt payment
of principal and interest over the life of the loan.
118
Companies
IRBs.
derive
several advantages from
the
cost of funds provided by IRBs is
The
use
of
significantly
below that of other alternatives because the interest paid to
of
holders
income
such
taxes.
government
bonds is exempt from
federal
and
state
This exemption is technically a loan to
that is reloaned to the company.
private financing is around 12 percent,
the
When long-term
it is not unusual to
find IRB rates of roughly 9 percent.
8.
Mortgage revenue bonds
Mortgage
for
revenue
bonds (MRBs) provide initial
housing and reduce debt service obligations to
groups
through
governments,
a
form
of
interest
capital
targeted
subsidy.
through lending institutions,
Local
issue tax-exempt
MRBs, which like IRBs take advantage of lower interest rates.
State housing finance agencies have also used MRBs.
issues have been used to facilitate home ownership
some
moderate-and
the
Although
middle-income households,
encouraging
thereby
stabilization of population and in-migration in
Funds
can
be
institutions
and
rehabilitation.
precommitted
designated
Municipalities
holders of MRBs,
repay
to
builders
for
new
for
and
cities.
lending
construction
or
have a moral obligation
in contrast with the
to
municipality's
legal obligation to repay general obligation bonds.
The City of San Jacinto General Plan is currently
revised
in
accordance with State of California
The State requires housing for all sectors of the
Other
being
guidelines.
community.
cities in Riverside County have not followed the State
guidelines to provide 20% low and moderate income housing and
119
the
City
State
to
moderate
of San Jacinto is experiencing pressure
make
up this deficit by
income
providing
from
the
low
and
50%
housing for new developments
within
their
jurisdiction.
The
median
$22,125.
To
moderate
income
obtain
for
the City
mortgage
of
San
revenue bond
Jacinto
is
financing
income housing requires pricing units such
for
that
a
family
of four making 80% of the median income ($17,700) can
afford
the units.
debt
If a limit of 35% of annual
service is used,
approximately
income
for
this works back to a housing price of
$60,000 for a 10% loan with
10%
downpayment.
However, these calculations do not apply for a retired couple
who
can afford an outright purchase and have minimal
annual
earnings.
9.
Cities
General revenue
are
disinclined to use city
general
funds
or
reduced
by
special funds because:
o
General
funds
13
proposition
revenue
--
have been drastically
due to the drop in
there
is
less
to
property
tax
around,
so
go
allocation to a new use is resisted.
o
Contributions
to
the
general
existing property owners,
pressure
funds
and there is
come
from
political
to return the benefits of those funds to
than
new
City councils are reluctant to use general revenues
for
the
existing
property owners,
rather
owners.
120
land
development
affordable
prices
projects for housing unless it results
housing.
based
on
market demand.
change due to city participation,
housing
sets
The developer typically
If housing
in
prices
won't
why lower the costs to the
developer and allow windfall profits?
Instead,
cities
are
more willing to support commercial/retail development because
it increases revenue through sales taxes while demanding less
of city services.
10.
General obligation bonds
Bonds which obligate all of the taxpayers in the city to
pay
improvements targeted for a specific area
for
not
are
likely to be passed.
11.
Loan guarantees/subordinate financing
Loan guarantees/subordinate financing can be provided by
the
municipality to enable a developer to obtain
financing terms -of
e.g., extension of the amortization period
Sources
loan and reduction of the interest rate.
a
financing include CDBG and UDAG funds,
such
city
that are receiving income from UDAFs.
pledged
revenues,
for
a
guarantee,
it
is
important
If income
Otherwise,
the
entire
pledged for one development,
the
against the income,
amount of income could
which might never make a
be
claim
and the city will have no flexibility to
guarantee other projects.
12.
is
some
that
limitations be established on the amount and duration of
pledge.
of
tax increment financing, and UDAG repayments in
foundations,
cities
beneficial
Lease revenue bonds
Lease revenue bonds can be blocked by a referendum.
121
Tax allocation bonds
13.
In
Tax allocation bonds are not subject to referendum.
public revenue bond finance legislation required
California,
cities to avoid sponsoring competitive projects.
Special Taxes
14.
As an option, special taxes require a 2/3's vote and are
by Proposition 13.
authorized
and improvements,
and
of
likelihood
much
area
or if the
be obtained any other way,
cannot
uninhabited
the tough road to haul is the receipt of a
Unless the voters want something very
favorable vote.
County
can
taxes
the necessary revenues for various public facilities
provide
that
Although special
is
the land owner is anxious to
develop,
the
an
example,
the
a 2/3's vote is slim.
As
of Riverside Flood Control District
recently
(1983)
solicitied the 2/3's vote for three service areas, the result
was a defeat by a 2 to 1 margin.
Developer exactions and fees
15.
Recently
demand
for
public agencies have broadened the
extraction
for
facilities
the developer to provide
funds
which serve beyond the area of the subdivision, operation and
maintenance payments,
the subdivisions,
and such items conjectually related to
such as low income housing and other items
which serve the general needs of the Community.
The
private sector's motto is:
"You get what
for."
Increasingly popular among public officials,
public
sector analogue:
for
the
infrastructure
you
pay
is
the
"You pay for what you get."
through development fees
122
and
Paying
user
charges
long
have
been
used as a
Since Proposition 13,
infrastructure.
for
means
paying
for
public agencies have
substantially increased fees such as development and building
permission fees,
utility connection fees,
user charges, and
even questionable impact fees.
fees drive down the value of the land on the
Developers
Fees can't be passed on to the homeowner
open market.
market sets the price, not mark up over cost),
developer
therefore, the
willing to pay less for the land
is
(the
to
maintain
profit margin.
SB 1322 Rehabilitation Districts
16.
A
recently
districts
rehabilitation
districts.
redevelopment
of
majority
passed senate bill allows the formation
property
provided
they
do
In a rehabilitation
owners (not 2/3)
can
not
overlap
district,
set
of
aside
a
up
to twenty-five percent of the property tax funds to go toward
for a bond issue.
payments
funds,
rather
it
This method does not raise
new
property
tax
reallocates current use of
funds and establishes this use as a priority over other users
of funds.
123
INFLUENTIAL PERSONS IN HEMET AND SAN JACINTO
APPENDIX 4
The
individuals vital to the success of a project in the San
Jacinto
been
have
area
ranked
into
three
The
tiers.
individuals with primary importance are:
Ross
Namar,
San
manager of Hemet.
Trammel
Ford,
SJ city manager and former
Jacinto.
city
A dominant leader.
San
New SJ city
Jacinto.
member;
council
realtor.
New SJ city council member; School
Les Redding, San Jacinto.
member;
District
member Soboba Springs Country
consultant;
Club.
SJ city council member; Friday for
Mark Devine, San Jacinto.
Lunch Bunch; follower - not initiator, son of Jeff Devine.
R.J. Stevens, San Jacinto.
A long time member of the SJ city
council.
Hixson,
Richard
San
Chairman
Jacinto.
planning
SJ
commission.
Dave
Plank,
Ver
Vice chairman
San Jacinto.
SJ
planning
commission.
Ed Westal, San Jacinto.
SJ planning commissioner.
Herb Colbertson, San Jacinto.
Ray Carlson, San Jacinto.
Record,
Clayton
president
Stone;
SJ planning commissioner.
Jacinto.
director
Board;
Bank
County
owner
of
Charter
director
of Exchange Club;
Supervisors,
School
San
SJ planning commissioner.
Hemet;
of Riverside;
Nestee,
and
past
and
Brudin,
eight years on
Board
Chairman of San
of major SJ dairy;
124
member
Friday
for
of
Jacinto
Lunch
Bunch; member Soboba Springs Country Club.
Supervisors;
of
Board
County
Riverside.
Ceniceros,
Kay
recent president of SCAG (Southern California Association
of
Governments); former assistant to Clayton Record; responsible
and
preserves
in
for
requirement
county
areas;
by
bridge
for
proponent
concerned
environmentally
developer;
agriculture
Daon
of
limitations
for
influential
with
county departments.
Jeff Devine, San Jacinto.
Father of Mark Devine; realtor and
of subsidized apartment complexes in
owner
SJ;
the
behind
scenes power.
Individuals
with secondary importance to decision making
in
San Jacinto are:
John Brudin,
Hemet.
Civil engineer;
member Exchange Club;
director Bank of Hemet; Friday for Lunch Bunch; member Soboba
Springs Country Club; quiet power.
David Kelley,
Member Exchange Club;
Hemet.
citrus grower;
state legislature assemblyman; Friday for Lunch Bunch.
John
Past
Hemet.
McDonough,
president
Chairman -of the board Bank of Hemet;
Pacific
Friday
Bank;
member Valley Economic
for Lunch Bunch;
Exchange
Club;
formerly with Security
Development
Council;
member Soboba Springs Country Club;
quiet power.
Dennis
Mayer,
San
Jacinto.
President SJ Junior
College;
member Economic Development Council; Friday for Lunch Bunch.
Jim Gill, Hemet.
Owner of both newspapers in San Jacinto and
125
Hemet; member Morning Kiwanis Club; Friday for Lunch Bunch.
Don Baskett,
Hemet.
Previously no.
2 in Riverside
County
Development department; Hemet city council member; Hemet Mall
manager;
member Valley Economic Development Council;
Friday
for Lunch Bunch.
Bruce Wallis, Hemet.
of
YMCA;
Attorney; Hemet School Board; President
member of Morning Kiwanis Club;
Friday for
Lunch
Bunch.
Bob
Eichinger,
Council;
Hemet.
director
Member Valley Economic
Hemet
Development
Valley Federal Savings
and
Loan;
Friday for Lunch Bunch; member Soboba Springs Country Club.
Bill
Aldridge,
San
Jacinto.
President Eastern
Municipal
Water District; Friday for Lunch Bunch.
Jack Tangeman, Hemet.
Hemet Casting president; member Valley
Economic Development Council; Friday for Lunch Bunch.
Past president Exchange Club;
William Record,
San Jacinto.
dairy
cousin of Clayton
rancher;
Record;
director
Inland
Savings and Loan.
Dan Hollingsworth,
Club;
active
in
San Jacinto.
member Exchange
Dairyman;
fund raising for Republican
congressional
campaigns.
Jerry Uecker,
of
only
Republican
Past president Exchange Club; manager
Hemet.
stock brokerage firm in the valley
fund raiser;
director Bank
of
(Paine
Hemet;
Weber);
director
Inland Savings and Loan.
Kenneth Hyatt, Hemet.
Bank
of
Hemet;
Past president Exchange Club; director
president Hemet Insurance
Soboba Springs Country Club.
126
Service;
member
Jack
director
Automobile dealer (Ford
Hemet.
Gosch,
of
Bank
Friday
Hemet;
dealerships);
Non-
Bunch;
Lunch
for
governmental entrepreneur.
projects
a
on
Individuals
tier
third
of
relative
importance
to
San Jacinto are:
in
Head of major real
Hemet.
James
Agnew,
firm;
director
Savings and Loan;
Inland
brokerage
estate
Lunch
Friday for
Bunch; member Exchange Club.
John Culton,
Principal in Brubaker and
East Hemet.
Culton
real estate brokers; member Exchange Club.
Jim
Cox,
Donnelly;
Partner in legal firm with Dan
Hemet.
member Exchange Club.
Joe Pehl,
deals
Past president Exchange Club; CPA for land
Hemet.
and taxes of influential people in valley;
Friday for
Lunch Bunch.
Member Exchange Club; director Hemet
Hemet.
Marvin DeBrask,
Savings and Loan.
Dan Donnelly,
Past president Exchange Club; partner
Hemet.
in legal firm with Jim Cox.
Tom Broderick, Hemet.
Ken
Edwards,
Hemet Valley Hospital administrator.
Riverside.
Head
of Riverside
Head
of
Flood
County
Control District.
Leo
Flint,
Riverside.
Riverside
County
Road
Department; listens to Kay Cineceros.
An
individual
of
considerable
127
wealth
but
unknown
due
importance
lack
to
of
involvement
in
community
organizations and lack of following is:
Jim Miner, East Hemet.
Montana;
Owner of 500,000 acres in Wyoming and
major natioanl Democratic fund raiser (Ted
Kennedy
head
of
flew
to Hemet to pick up a campaign contribution);
Agra
Empire which owns and leases extensive land holdings in
valley;
Hot
original developer of Soboba Springs Golf Course and
Springs;
owns
Park
Hill - prominant location
middle of the valley for siting water tanks;
water district board.
128
in
the
son is on state
APPENDIX 5
The
DEVELOPER'S PROFORMA
following
proformas have been adjusted to
reflect
the phasing of each component through the land cost financing
No guess has been made for the rates of inflation
duration.
of either the sales price or the construction cost.
Village 1 - Moderate Housing
42
price
945
sf;
$20,000
for
family detached houses of
single
units;
at $65,000 plus fairway premium of
each unit.
Revenues
42 units @ $65,000 base price
2,730,000
42 units @ $20,000 fairway premium
840,000
less sales commission (2%)
(70,000)
less marketing (3%)
(110,000)
Land
(200,000)
Costs
Construction
42 units x 945 sf x $35/sf
(1,390,000)
On-site/Off-site ($5,000/unit)
(210,000)
Architectural/Engineering
( 30,000)
Fees/Bonds/Insurance/Permits ($5,000/unit)
(210,000)
Taxes/Title/Legal
( 20,000)
Overhead (2-1/2% construction & site)
( 40,000)
(2-1/2% construction & site)
( 40,000)
Indirect
Finance - Land (3-1/2 yrs @ 12%)
( 85,000)
Finance - Construction
1/2 yr @ 12% x 80% of Revenue
(170,000)
Contingency (5% of construction cost)
( 80,000)
Anticipated Profit
129
$
895,000
Village 1 - Premium Housing
24
units;
units
with
family detached houses of
single
which
8
1350
sf
are 3 bedrooms/2-1/2 bathroom homes of
a
base
bedroom/2
price
of $90,000 and
16
units
bathroom homes of 1200 sf with a base
of $80,000.
are
2
price
In addition, there is a fairway premium of
$30,000 for each unit.
Revenues
8 units @ $90,000 base price
720,000
1,280,000
16 units @ $80,000 base price
24 units @ $30,000 fairway premium
720,000
less sales commission (2%)
(55,000)
less marketing (3%)
(80,000)
Costs
(200,000)
Land
Construction
(345,000)
(615,000)
8 units x 1350 sf x $32/sf
16 units x 1200 sf x $32/sf
On-site/Off-site ($7,000/unit)
(170,000)
Architectural/Engineering
( 20,000)
Fees/Bonds/Insurance/Permits
(170,000)
($7,000/unit)
Taxes/Title/Legal
( 20,000)
Overhead (2-1/2% construction & site)
( 25,000)
Indirect (2-1/2% construction & site)
( 25,000)
Finance - Land (3-1/2 yrs @ 12%)
( 85,000)
Finance - Construction
1/2 yr @ 12% x 80% of Revenue
(130,000)
Contingency (5% of construction cost)
( 55,000)
Anticipated Profit
130
$
725,000
Village 1 - Moderate Housing for the Althouse Property
115 units;
price
single
945
sf;
$20,000
for
family detached houses of
at $65,000 plus fairway premium of
33 units.
Revenues
7,475, 000
115 units @ $65,000 base price
33 units @ $20,000 fairway premium
660,0 00
less sales commission (2%)
(160,0 00)
less marketing (3%)
(245,0 00)
Costs
-0-
Land
Construction
(3,805,000)
115 units x 945 sf x $35/sf
On-site/Off-site ($5,000/unit)
(575,000)
Architectural/Engineering
( 75,000)
Fees/Bonds/Insurance/Permits
($5,000/unit)
(575,000)
Taxes/Title/Legal
( 50,000)
Overhead (2-1/2% construction & site)
(110,000)
Indirect (2-1/2% construction & site)
(110,000)
-0-
Finance - Land
(780,000)
Finance - Construction
1 yr @ 12% x 80% of Revenue
(220,000)
Contingency (5% of construction cost)
Residual
land
Residual Land Value
$
value includes price for
land,
1,430,000
profit,
carrying cost of land between time of land purchase and
when market will absorb additional 115 housing units.
131
and
time
Village 1 - Premium Housing for the Althouse Property
51
units;
single
family detached houses of which
17
and
34
units
are
3 bedrooms for $90,000 base
units
are
2
addition,
bedrooms for
$80,000
price
price.
base
In
there are fairway premiums of $30,000 for 19
units.
Revenues
17 units @ $90,000 base price
1,530,000
34 units @ $80,000 base price
2,720,000
19 units @ $30,000 fairway premium
570,000
less sales commission (2%)
(95,000)
(145,000)
less marketing (3%)
Costs
-0-
Land
Construction
17 units x 1350 sf x $32/sf
(735,000)
34 units x 1200 sf x $32/sf
(1,305,000)
On-site/Off-site ($7,000/unit)
(
355,000)
Architectural/Engineering
(
60,000)
($7,000/unit)(
355,000)
Taxes/Title/Legal
(
40,000)
Overhead (2-1/2% construction & site)
(
60,000)
Indirect (2-1/2% construction & site)
(
60,000)
Fees/Bonds/Insurance/Permits
-0-
Finance - Land
Finance - Construction
1/2 yr @ 12% x 80% of Revenue
(
230,000)
Contingency (5% of construction cost)
(
120,000)
Residual Land Value
$1,260,000
Residual land value includes the price of the land, profit,
and carrying cost of land between time of purchase and time
when the market will absorb an additional 51 units.
132
Village 2a - Moderate Housing
200
price
at
units;
$65,000.
single
family detached houses of 945
Also includes 1 acre
sf;
commercial
local
site.
Revenues
200 units @ $65,000 base price
13,000,000
100,000
1 acre @ $100,000
less sales commission (2%)
(260,000)
less marketing (3%)
(390,000)
Land (1/2 of $1,170,000)
(585,000)
Costs
Construction
200 units x 945 sf x $35/sf
(6,615,000)
On-site/Off-site ($5,000/unit)
(900,000)
Architectural/Engineering
(150,000)
Fees/Bonds/Insurance/Permits
($5,000/unit) (1,000,000)
Taxes/Title/Legal
(
Overhead (2-1/2% construction & site)
( 190,000)
Indirect (2-1/2% construction & site)
( 190,000)
Finance - Land (2-1/2 yrs @ 12%)
( 175,000)
Finance - Construction
1 yr @ 12% x 80% of Revenue
(1,250,000)
Contingency (5% of construction cost)
(
Anticipated Profit
133
$
50,000)
375,000)
970,000
Village 2b - Moderate Housing
200
units;
price
single
family detached houses of
945
sf;
at $65,000.
Revenues
200 units @ $65,000 base price
13,000,000
less sales commission (2%)
(260,000)
less marketing (3%)
(390,000)
Costs
Land
(585,000)
(1/2 of $1,170,000)
Construction
200 units x 945 sf
x
$35/sf
(6,615,000)
On-site/Off-site ($5,000/unit)
(1,000,000)
Architectural/Engineering
(
Fees/Bonds/Insurance/Permits
150,000)
($5,000/unit)(1,000,000)
Taxes/Title/Legal
(
50,000)
Overhead (2-1/2% construction & site)
(
190,000)
Indirect (2-1/2% construction & site)
(
190,000)
(
385,000)
Finance -
Land (5-1/2 yrs @ 12%)
Finance - Construction
1 yr @ 12% x 80% of Revenue
(1,250,000)
Contingency (5% of construction cost)
(
365,000)
$
570,000
Anticipated Profit
134
Village 3 - Moderate Housing
215
price
units;
single
family detached houses of 945
sf;
$20,000
for
at $65,000 plus fairway premium of
118 units and park premium of $10,000 for 30 units.
Revenues
215 units @ $65,000 base price
13,975,000
2,360,000
118 units @ $20,000 fairway premium
30 units @ $10,000 park premium
300,000
less sales commission (2%)
(330,000)
less marketing (3%)
(500,000)
Costs
(1,500,000)
Land
Construction
215 units x 945 sf x $35/sf
On-site/Off-site ($5,000/unit)
(7,110,000)
(1,075,000)
Landscaping of park
( 50,000)
Architectural/Engineering
(150,000)
Fees/Bonds/Insurance/Permits
($5,000/unit)(1,075,000)
Taxes/Title/Legal
(100,000)
Overhead (2-1/2% construction & site)
(205,000)
Indirect (2-1/2% construction & site)
(205,000)
Finance - Land (3 yrs @ 12%)
(540,000)
Finance - Construction
1-1/2 yr @ 12% x 80% of Revenue
(2,390,000)
Contingency (5% of construction cost)
(
410,000)
$
995,000
Anticipated Profit
135
Village 3 - Premium Housing
90
units;
single
family detached houses of which
30
and
60
units
are
3 bedrooms for $90,000 base
units
are
2
addition,
bedrooms for
$80,000
price
price.
base
In
there are fairway premiums of $30,000 for 67
units.
Revenues
30 units @ $90,000 base price
2,700,000
60 units @ $80,000 base price
4,800,000
67 units @ $30,000 fairway premium
2,010,000
less sales commission (2%)
(190,000)
less marketing (3%)
(285,000)
Costs
(1,500,000)
Land
Construction
(1,295,000)
(2,305,000)
30 units x 1350 sf x $32/sf
60 units x 1200 sf x $32/sf
On-site/Off-site ($7,000/unit)
(
630,000)
Architectural/Engineering
(
70,000)
($7,000/unit)(
630,000)
Taxes/Title/Legal
(
50,000)
Overhead (2-1/2% construction & site)
(
105,000)
Indirect (2-1/2% construction & site)
(
105,000)
Finance - Land (3 yrs @ 12%)
(
540,000)
Finance - Construction
1/2 yr @ 12% x 80% of Revenue
(
500,000)
Contingency (5% of construction cost)
(
210,000)
Fees/Bonds/Insurance/Permits
Anticipated Profit
136
$ 1,095,000
Village 4a - Moderate Housing
81
units;
price
945
sf;
$20,000
for
family detached houses of
single
at $65,000 plus fairway premium of
36 units and park premium of $10,000 for 25 units.
Revenues
5,265,0 00
81 units @ $65,000 base price
36 units @ $20,000 fairway premium
720,0 00
25 units @ $10,000 park premium
250,0 00
less sales commission (2%)
(125,0 00)
less marketing (3%)
(190,0 00)
Land (81/308 x $900,000)
(240,000)
Costs
Construction
81 units x 945 sf x $35/sf
(2,680,000)
On-site/Off-site ($5,000/unit)
(
405,000)
Park Landscaping
(
50,000)
Architectural/Engineering
(
60,000)
($5,000/unit)(
405,000)
Taxes/Title/Legal
(
40,000)
Overhead (2-1/2% construction & site)
(
75,000)
Indirect (2-1/2% construction & site)
(
75,000)
Finance - Land (3 yrs @ 12%)
(
85,000)
Finance - Construction
1/2 yr @ 12% x 80% of Revenue
(
300,000)
Contingency (5% of construction cost)
(
155,000)
Fees/Bonds/Insurance/Permits
Anticipated Profit
137
$ 1,350,000
Village 4a - Premium Housing
45 units; single family detached houses of which 15 units are
3 bedrooms for $90,000 base price and 30 units are 2 bedrooms
for
$80,000
premiums
of
In addition,
base price.
$30,000
for
are
there
20 units plus
fairway
premiums
park
of
$15,000 for 9 units.
Revenues
15
30
20
10
units
units
units
units
@ $90,000
@ $80,000
@ $30,000
@ $15,000
1,350,000
2,400,000
600,000
150,000
base price
base price
fairway premium
park premium
less sales commission (2%)
( 90,000)
less marketing (3%)
(135,000)
Land (45/148 x $900,000)
(275,000)
Costs
Construction
15 units x 1350 sf x $32/sf
(650,000)
30 units x 1200 sf x $32/sf
(1,150,000)
On-site/Off-site ($7,000/unit)
(
315,000)
Park Landscaping
(
30,000)
Architectural/Engineering
(
40,000)
Fees/Bonds/Insurance/Permits ($7,000/unit)(
315,000)
Taxes/Title/Legal
(
20,000)
Overhead (2-1/2% construction & site)
(
55,000)
Indirect (2-1/2% construction & site)
(
55,000)
Finance - Land (3 yrs @ 12%)
(
100,000)
Finance - Construction
1/2 yr @ 12% x 80% of Revenue
(
210,000)
Contingency (5% of construction cost)
(
105,000)
Anticipated Profit
138
$
955,000
Village 4b - Moderate Housing
227
price
units;
single
family detached houses of
at $65,000 plus fairway premium of
sf;
945
$20,000
for
24 units and park premium of $10,000 for 21 units.
Revenues
227 units @ $65,000 base price
14,755,000
24 units @ $20,000 fairway premium
480,000
21 units @ $10,000 park premium
210,000
less sales commission (2%)
(310,000)
less marketing (3%)
(465,000)
Land ($900,000 - $240,000)
(660,000)
Costs
Construction
227 units x 945 sf x $35/sf
On-site/Off-site ($5,000/unit)
(7,510,000)
(1,135,000)
Park Landscaping
( 50,000)
Architectural/Engineering
(150,000)
Fees/Bonds/Insurance/Permits
($5,000/unit)(1,135,000)
Taxes/Title/Legal
(120,000)
Overhead (2-1/2% construction & site)
(215,000)
Indirect (2-1/2% construction & site)
(215,000)
Finance - Land (4 yrs @ 12%)
(315,000)
Finance - Construction
1 yr @ 12% x 80% of Revenue
Contingency (5% of construction cost)
Anticipated Profit
139
(1,480,000)
(430,000)
$1,255,000
Village 4b - Premium Housing
units;
103
single family detached houses of which
34
and
69
units
are
3 bedrooms for $90,000 base
units
are
2
bedrooms for
$80,000
price
price.
base
In
there are fairway premiums of $30,000 for 14
addition,
units and park premiums of $15,000 for 10 units.
Revenues
34
69
14
10
units
units
units
units
@
@
@
@
$90,000
$80,000
$30,000
$15,000
base price
base price
fairway premium
park premium
$3,060,000
5,520,000
420,000
150,000
less sales commission (2%)
(185,000)
less marketing (3%)
(275,000)
Land ($900,000 - 240,000)
(660,000)
Costs
Construction
34 units x 1350 sf x $32/sf
(1,470,000)
69 units x 1200 sf x $32/sf
(2,650,000)
On-site/Off-site ($7,000/unit)
(720,000)
Park Landscaping
( 30,000)
Architectural/Engineering
( 75,000)
Fees/Bonds/Insurance/Permits ($7,000/unit)
(720,000)
Taxes/Title/Legal
( 60,000)
Overhead (2-1/2% construction & site)
(120,000)
Indirect (2-1/2% construction & site)
(120,000)
Finance - Land (4 yrs @ 12%)
(315,000)
Finance - Construction
1/2 yr @ 12% x 80% of Revenue
(440,000)
Contingency (5% of construction cost)
(240,000)
Anticipated Profit
140
$1,070,000
Village 5 - Moderate Housing
37
units;
price
945
sf;
$20,000
for
family detached houses of
single
at $65,000 plus fairway premium of
25 units.
Revenues
37 units @ $65,000 base price
2,405,000
25 units @ $20,000 fairway premium
500,000
less sales commission (2%)
(60,000)
less marketing (3%)
(90,000)
Costs
(350,000)
Land
Construction
37 units x 945 sf x $35/sf
(1,225,000)
On-site/Off-site ($5,000/unit)
(185,000)
Architectural/Engineering
( 30,000)
Fees/Bonds/Insurance/Permits ($5,000/unit)
(185,000)
Taxes/Title/Legal
( 20,000)
Overhead (2-1/2% construction & site)
( 35,000)
Indirect (2-1/2% construction & site)
( 35,000)
Finance -
Land (6-1/2 yrs @ 12%)
(275,000)
Finance - Construction
1/2 yr @ 12% x 80% of Revenue
(140,000)
Contingency (5% of construction cost)
( 70,000)
Anticipated Profit
141
$
205,000
Village 5 -
Premium Housing
26 units;
single family detached houses of which 9 are
3 bedrooms for $90,000 base price and 17 are 2 bedrooms
for $80,000 base price.
premiums
In addition, there are fairway
of $30,000 for 18 units.
Revenues
9 units @ $90,000 base price
17 units @ $80,000 base price
18 units @ $30,000 fairway premium
810,000
1,360,000
540,000
less sales commission (2%)
(55,000)
less marketing (3%)
(80,000)
Costs
Land
(350,000)
Construction
9 units x 1350 sf x $32/sf
17 units x 1200 sf x $32/sf
(390,000)
(655,000)
On-site/Off-site ($7,000/unit)
(180,000)
Architectural/Engineering
( 30,000)
Fees/Bonds/Insurance/Permits ($7,000/unit)
(180,000)
Taxes/Title/Legal
( 20,000)
Overhead (2-1/2% construction & site)
( 30,000)
Indirect (2-1/2% construction & site)
( 30,000)
Finance -
(275,000)
Land (6-1/2 yrs @ 12%)
Finance - Construction
1/2 yr @ 12% x 80% of Revenue
(130,000)
Contingency (5% of construction cost)
( 60,000)
Anticipated Profit
142
$
245,000
Village 6 - Hillside
Perform
fill
for
created.
rough grading to create building pads and
use
acres
are
Assume 25 buildable
Village 5.
Obtain
zoning approval for 200
hotel/condo
units under PUD designation and sell land.
Revenues
25 acres @ $150,000/ac
$3,750,000
less sales commission (10%)
(380,000)
Land
(500,000)
Cut/Fill/Compact for Village 5
(200,000)
On-site/Off-site ($4,000/unit)
(1,200,000)
Costs
( 30,000)
Architectural/Engineering
Fees/Bonds/Insurance/Permits
(600,000)
($2,000/unit)
Taxes/Title/Legal
(100,000)
Overhead (2-1/2% construction & site)
( 30,000)
Indirect (2-1/2% construction & site)
( 30,000)
Finance - Land (3 yrs @ 12%)
(180,000)
Contingency (add'l 3 yrs land carry)
(200,000)
Anticipated Profit
143
$
300,000
Golf Course -
18 hole championship course
Revenues
200 memberships @ $20,000 average
$4,000,000
Land
(2,500,000)
Costs
(500,000)
Realignment of 4 holes
(1,000,000)
New Club House and Restaurant
$
Anticipated Profit
The
fairway
-0-
real value of golf course is in the $4,900,000
for
prices.
In
premiums
accrued
in Village
housing
addition, relieved of debt service and with greater usage due
to
build
out
of
the
development,
the
club
house
restaurant will operate at a profit difficult to estimate
this time.
144
and
at
Scripps Clinic/Butzen Property
Accurate
information
on
costs
associated
with
the
Scripps Clinic are unavailable and have been estimated.
Revenues
$3,000,000
Scripps Clinic
($300,000 annual rent capitalized @ 10%)
1,500,000
15 Acres @ $100,000/ac
less sales commission (2%)
(60,000)
less marketing (3%)
(90,000)
Costs
Land
(2,000,000)
Construction
(1,500,000)
On-site/Off-site
( 50,000)
Architectural/Engineering
( 30,000)
Fees/Bonds/Insurance/Permits
( 30,000)
Taxes/Title/Legal
( 20,000)
Overhead (2-1/2% construction & site)
( 40,000)
Indirect (2-1/2% construction & site)
( 40,000)
Finance - Land (1 yrs @ 12%)
(240,000)
Finance - Construction
1 yr @ 12% x 80% of Revenue
(350,000)
Anticipated Profit
145
$
50,000
Seventh Street
Sell
land
for
20 acre shopping center
and
20
acre
apartment complex.
Revenues
20 acres commercial @ $100,000
2,000,000
20 acres residential @ $40,000
800,000
less sales commission (2%)
(55,000)
less marketing (3%)
(85,000)
Costs
(1,070,000)
Land
Finance - Land
(250,000)
Anticipated Profit
146
$1,340,000
APPENDIX 6
THE CITY'S PROFORMA
REVENUE SOURCES
Property Taxes
o
Residential
(Number of DU's)(Average Market)(Property tax)(Fraction of )
)(property tax )
)(limitation
(Value/DU
(factor=0.01 )(revenue rec'd)
(by City=0.14 )
($68.0 million)(0.01)(0.14) = $95,000/yr
Commercial
(Number of acres)(Average Market)(Property tax)(Fraction of )
)(property tax)
)(limitation
(Value/acre
(factor=0.01 )(revenue recd)
(by City=0.14)
($6.6 million) (0.01) (0.14)
Note:
Other
through
agencies
property
taxes
=
$ 9,000/yr
funds
receiving a portion of
include County
of
Riverside,
and various special districts.
school district,
raised
the
Tax rate on
existing property increases at a maximum rate of 2%/year.
o
Other taxes
Sales and Use Tax
(Number of DU' s) (Average number) (Sales Tax )
)
(of people per )(revenue
)(per capita)
(DU = 2.1
(1266 du)(2.1)($40/person) = $106,000/yr
Sales
tax revenue per capita historically is about
$40
in San Jacinto.
Southern California Edison
Based
franchise
on
fees
historical
is
trends the
expected
to be
income
$1.10
per
generated
capita
residential uses and $9.10 per acre for commercial use.
147
by
for
(1266 du)(2.1)($1.10/person) = $ 2,924
364
=
(40 acres) ($9.10/ac)
Total
$ 3,288 say $ 3,000/yr
Cable TV Franchise fees
The fee for the city is approximately $7.00 per unit.
(1266 du) ($7.00/du) = $ 9,000/yr
Real property transfer tax
the rate of $1.10 per $1,000
at
levied
Tax
sales
of
The tax applies to the initial sale as well as resale
value.
of units.
($74.6 million)($1.10/1000) = $80,000 initial revenue
Approximately
$10,000/yr
if property is
resold
every
the
total
seven to eight years.
Transient Occupancy Tax
The
receipts
City
San
of
Jacinto receives
8%
for hotel and motel room occupancy.
of
For order
of
assume a 200 room hotel with an average
magnitude
estimate,
occupancy
of 50% and an average room rate of $50
night
per
generates $146,000 in revenue per year.
Licenses and Permits
o
Permit and processing fees
developer anticipates an average costs for
permits
$5,000 per moderate housing units and $7,000 per
premium
The
of
City permit fees average $1/sf of commercial
housing
unit.
space.
This includes approximately $1,500 per unit for
Water
District.
The one-time revenue associated with
development is:
148
the
this
(950 du)($5,000/du)
= $ 4,750,000
=
2,210,000
(316 du)($7,000/du)
300,000
(300,000 sf)($1.00/sf) =
$ 7,260,000
Total
o
Intergovernment Revenues
Motor Vehicle In-Lieu Fees
Historical
trends indicate a rate of $22.00 per
capita
with a 5% annual increase is appropriate.
(1266 du)(2.1 persons/du)($22.00/person) = $58,000/yr
Gasoline Tax
Historical trends indicate a steady annual rate of $2.00
per capita is appropriate.
(1266 du)(2.1 persons/du)($2.00/person) = $5,000/yr
Cigarette Tax
Historical trends indicate a steady annual rate of $2.00
per capita is appropriate.
(1266 du)(2.1 persons/du)($2.00/person) = $5,000/yr
o
Charges for Services
Refuse collection
Based on historical trends, residential users will bring
in
$8.50
per capita with an annual increase
of
For
20%.
commercial properties the rate is $36.00 per acre.
(1266 du)(2.1 persons/du)($8.50/person) = $23,000
1,000
=
(40 ac) ($36.00/ac)
Total
$24,000/yr
Lighting and Landscape District
The
City
currently charges $4.00 per
month
for
dwelling to maintain street lighting and public parkways.
(1266 du)($4.00/du) = $5,000/yr
149
each
Use of Money and Property
o
Not applicable.
Fines and Forfeitures
o
Historical trends indicate a rate of $0.25 per capita is
appropriate.
(1266 du)(2.1 persons/du)($0.25/person) = $1,000/yr
o
Miscellaneous
bicycle
Miscellaneous revenues include animal licenses,
special
licenses,
cleaning,
charges
other
and
police
fire
for services
fees,
weed
and
other
and
lot
revenue.
Historical trends indicate a rate of $3.50 per capita.
(1266 du)(2.1 persons/du)($3.50/person) = $9,000/yr
Special Development Oriented Charges
o
Park Fees
The
is
fee
multifamily
unit.
$120 per single family unit
This
and
time fee is included
one
$85
per
in
the
estimate for all development fees.
Water Sales (Miscellaneous)
o
For
residential units,
approximately
revenue
water
$159
per
is $27 per acre.
the average annual
dwelling
unit.
for
since the water is furnished
by Eastern Municipal Water District.
(1266 du)($159/du) = $201,000
1,000
=
(40 ac) ($27/ac)
$202,000/yr
150
is
commercial,
The applicability of charges
service is questionable,
Total
For
revenue
COST SOURCES
o
General Government
Historical
trends indicate a rate of $15.00 per
capita
for residential use, and $160.00 per acre for commercial use.
(1266 du)(2.1 persons/du)($15.00) = $40,000
=
6,000
(40 ac)($160.00/ac)
$46,000/yr
Total
o
Public Safety
Historical trends indicate the following:
Police protection
Fire protection
Building regulation
Animal regulation
$40/capita or $420/acre
$50/developed acre
$33/developed acre
$1/capita
(1266 du)(2.1 persons/du)($40.00/person)
(40 ac)($420.00/ac)
(268 ac)($50.00/ac)
(268 ac)($33.00/ac)
(1266 du)(2.1 persons/du)($1.00/person)
Total
o
=
=
=
=
=
$106,000
17,000
13,000
9,000
3,000
$148,000/yr
Public Works
Historical trends indicate the following:
Shops and corporation yards
Streets (Maintenance,
Cleaning, and Lighting)
$13/acre
$0.40/foot of road
(268 ac)($13.00/ac)
= $ 3,000
(20,000 lf) ($0.40/lf) =
8,000
$11,000/yr
Total
o
Parks, Recreation and Culture
Parks and parkways currently maintained by the city cost
$8,000/acre annually.
(10 ac)($8,000/ac) = $80,000/yr
o
Sewer
Maintenance of the city sewer systems historically costs
151
$40/acre with an annual increase of 25% in operating costs.
(268 ac)($40.00/ac) = $11,000/yr
o
Capital Outlay
Historical trends indicate the City makes annual capital
outlays for improvements of $26.00 per capita.
(1266 du)(2.1 persons/du)($26.00) = $69,000
o
For
historical
Water Service (EMWD)
the
city
owned
portion
of
the
water
system,
trends indicate a 6% annual increase in costs
of
$160/residential unit and $27/acre of commercial development.
(1266 du)($160/du) = $203,000
(40 ac) ($27/ac)
=
1,000
Total
o
$204,000
Debt Service
The City currently makes principal and interest payments
of $6.50 per person, of which 60% is toward principal.
(1266 du)(2.1 persons/du)($6.50) = $17,000
152
BIBLIOGRAPHY
1)
City of San Jacinto Zoning
Regulations,
Ordinance
340,
Adopted July 8, 1958, and amendments.
2)
"Financing Public Improvements by Special Assessments"
summary
of applicable legislation by Dan Tonini,
a
The Irvine
Company, Irvine, California, 1984.
3)
"Summary and Text of the Mello-Roos Community
of
Act
1982,
as
Amended," by Bowie and
Facilities
and
Risley
M.F.
Whipple and Co., Newport Beach and Laguna Niguel, California,
1984.
4)
"Draft
Master
Environmental
Plan,"
by
Impact
Ultrasystems
Report:
Inc.,
Soboba
Springs
California,
Irvine,
February 1986.
5)
"The New Practitioner's Guide to Fiscal Impact Analysis",
by
Robert
Center
for
David Listokin,
Burchell,
Urban
Policy
Research,
Dolphin,
and William
State
The
Rutgers,
University of New Jersey, 1985.
6)
"Movers and Shakers:
The Study of Community Power"
Philip Tounstine and Terry Christensen,
St.
by
Martin's Press,
New York, 1982.
7)
Development
"Managing
Negotiations,"
edited
Public/Private
through
by Rachelle Levitt and
John
Kirlin,
Urban Land Institute, Washington D.C., 1985.
8)
9)
"Gaining Support for Individual Projects"
"Public
Codevelopment,"
incentives
by
and
Financing
Techniques
for
Urban
Land
Gary Stout and Joseph Vitt,
Institute Development Component Series, 1982, New York, N.Y.
153
10)
Praeger Special
"Political Realities of Urban Planning,"
Publishers, New York, N.Y.,
11)
1984.
City of San Jacinto General Plan:
Environmental
Assessment
Cotton/Beland/Associates,
Praeger
Development,
Studies in International Economics and
Master Environmental
Impact
Report,
Inc.,
Pasadena,
prepared
by
California,
November, 1985.
12)
Brown
"Mello-Roos Community Facilities Act of 1982," by
and Nazarek, Irvine, California, January, 1983.
13)
Stookey,
Willdan
"Spreading Assessments and Apportionments," by
William
"The
Use of Mello-Roos" by
William
Associates, Anaheim, California, 1985.
14)
Stookey, Wildan Associates, Anaheim, California, 1984.
15)
"Tax
Increment
Financing
as
a
Tool
Community
for
Redevelopment," by Jonathan Davidson, Journal of Urban Law 56
(Winter 1979).
16)
"Water
October
Magazine,
Saving Plant Ideas," Sunset
1976.
17)
"City of San Jacinto Fiscal Impact Methodology for
Development
Evaluation
- Draft,"
by
Ultrasystems,
Land
Inc.,
Irvine, California, May 1986.
18)
"Environmental and Design Guidelines for the
Architectural
Control
Board,"
by
Gruen
Waterwood
Associates,
Huntsville, Texas, 1975.
19)
"Walnut Village East:
Village Criteria,"
by the
Irvine
Company Planning Department, Irvine, California, 1971.
20)
"Assessment Engineering," by William
154
Stookey,
Willdan
Associates, Anaheim, California, 1982.
21)
"An
Over-All
Assessment
Look
Financing,"
and General
by F.
Coverage
MacKenzie
of
Brown,
Special
Brown
and
Nazarek, Irvine, California, 1985.
22)
"Engineers'
California
Guide to Special
Council
Assessment
of Civil Engineers and
Procedures,"
Land
Surveyors,
Sacramento, California, 1986.
23)
"Community
Redevelopment
Redevelopment Law
Report:
Soboba
Springs
Plan," by Community Systems Associates,
Inc.,
Anaheim, California, 1983.
24)
"Soboba
Springs
Redevelopment
Plan,"
by
Community
Systems Associates, Inc. Anaheim, California, 1983.
25)
"Builder
Submittal Guidelines," by the Irvine
Company
Community Development Division, 1985.
26)
"National
Real
Estate Investor" magazine
issues
of
December 1985, February 1986, and March 1986
27)
"Site
Planning" by Kevin Lynch and Gary Hack,
The MIT
Press, Cambridge, Massachusetts, 1984.
28)
"Master
Plan Development" by
from a lecture, October, 1985.
155
Michael
Buckley,
notes
LIST OF INTERVIEWEES
Charles Howard
Howard Rose Company
San Jacinto, California.
Clayton Record
Neste, Brudin, and Stone
Hemet, California.
Peter Sidlow
Wayne Avrashow
Al Chamberlain
Soboba Associates
San Jacinto, California.
Brian
McNabb
Gary Dysart
Gerald
Trimble
Bradley Olson
Kieth Greer
Dan Tonini
City Planning Director
San Jacinto, California
Willdan Associates
Anaheim, California.
Centre City Development Corporation
San Diego, California.
The Irvine Company
Irvine, California.
156