WEBVTT 00:00:00.000 --> 00:00:03.040 Ever wonder what really happens behind the scenes 00:00:03.040 --> 00:00:05.379 in construction, real estate, and development? 00:00:05.559 --> 00:00:08.220 We pull back the curtain on the new home construction 00:00:08.220 --> 00:00:11.060 industry, the real estate market, and the trends 00:00:11.060 --> 00:00:14.080 shaping it all. Discover the stories, insights, 00:00:14.279 --> 00:00:16.219 and expertise behind the process of building 00:00:16.219 --> 00:00:19.620 a new home. Join us for Trust the Process podcast, 00:00:19.760 --> 00:00:22.460 and let's build something great together. Welcome 00:00:22.460 --> 00:00:25.460 back to Trust the Process, podcast where we talk 00:00:25.460 --> 00:00:28.420 about the real estate world, new home construction, 00:00:28.640 --> 00:00:31.800 the housing industry, and everything in between. 00:00:32.540 --> 00:00:35.560 Today we are going to talk about a couple of 00:00:35.560 --> 00:00:38.780 upcoming projects that we have. So we've talked 00:00:38.780 --> 00:00:40.600 to you guys over time about a couple of the things 00:00:40.600 --> 00:00:43.000 that we've been doing. We have upcoming projects 00:00:43.000 --> 00:00:45.820 that are just getting started. And so those had 00:00:45.820 --> 00:00:48.380 a meeting with the Henderson City of Henderson 00:00:48.380 --> 00:00:51.939 last week. And so updating on those, just kind 00:00:51.939 --> 00:00:56.100 of introducing those two projects to, to our 00:00:56.100 --> 00:00:58.859 listening audience as they will become conversation 00:00:58.859 --> 00:01:02.460 over time. Right. And then using using that to 00:01:02.460 --> 00:01:04.540 tell a story. Absolutely. Right. To say this 00:01:04.540 --> 00:01:06.420 is the these are the things we interact with, 00:01:06.840 --> 00:01:10.400 with a case study versus an anecdote. So and 00:01:10.400 --> 00:01:13.540 we had some, boy, we had some good anecdotes. 00:01:13.719 --> 00:01:17.959 I didn't want to do an answer. So we have two 00:01:17.959 --> 00:01:20.920 new subdivisions, in addition to our serene subdivision, 00:01:21.219 --> 00:01:23.200 and they are very near each other. They're both 00:01:23.200 --> 00:01:26.430 in the Henderson jurisdiction. Uh, one is a five 00:01:26.430 --> 00:01:29.189 home and one was originally supposed to be a 00:01:29.189 --> 00:01:32.709 23 home subdivision of town homes and that has 00:01:32.709 --> 00:01:36.189 been whittled down substantially. Uh, as a result, 00:01:36.290 --> 00:01:38.409 well over time, but then as a result of last 00:01:38.409 --> 00:01:40.810 week's meeting, it really got whittled down. 00:01:41.230 --> 00:01:45.329 Yes. So, so this is a somewhat small two acre 00:01:45.329 --> 00:01:48.349 parcel infill, meaning that there's their neighborhoods 00:01:48.349 --> 00:01:51.299 and communities. completely surrounding it it's 00:01:51.299 --> 00:01:54.579 on an improved street uh surrounded by a new 00:01:54.579 --> 00:01:56.219 home construction community that was about four 00:01:56.219 --> 00:01:58.519 or five years old and then one from the 90s all 00:01:58.519 --> 00:02:00.719 the infrastructure is there but it's a really 00:02:00.719 --> 00:02:05.579 small parcel zone for religious facilities oh 00:02:05.579 --> 00:02:07.920 is it yeah so we ended up with it but we bought 00:02:07.920 --> 00:02:10.729 it from the city of henderson by way of one other 00:02:10.729 --> 00:02:12.389 owner. So someone bought it from the city, Anderson, 00:02:12.789 --> 00:02:14.669 and then we bought it from them over the span 00:02:14.669 --> 00:02:16.509 of a couple of years. It's kind of all transpired. 00:02:16.710 --> 00:02:19.069 So we're in the land acquisition phase right 00:02:19.069 --> 00:02:21.849 now. So that's that part's been done and secured. 00:02:22.069 --> 00:02:25.490 And then what we're doing now is submitting for 00:02:25.490 --> 00:02:27.949 our initial zoning to say, okay, well, we don't 00:02:27.949 --> 00:02:30.270 want it to be a religious facility, we're going 00:02:30.270 --> 00:02:33.030 to make it into housing development. And our 00:02:33.030 --> 00:02:36.490 initial plan that we laid out with the civil 00:02:36.490 --> 00:02:39.689 engineers was well received. They said, okay, 00:02:39.789 --> 00:02:41.509 we're fine with you pulling this out of the master 00:02:41.509 --> 00:02:44.289 plan. Does not have to be a religious facility. 00:02:44.849 --> 00:02:46.530 We're good with you doing residential usage. 00:02:46.960 --> 00:02:50.319 Now you abide by the residential usage rules. 00:02:51.860 --> 00:02:54.340 And so much residential around there. I'm surprised. 00:02:54.340 --> 00:02:56.780 It's all been anything. Yeah. And so we weren't 00:02:56.780 --> 00:02:58.819 really surprised that it would that it would 00:02:58.819 --> 00:03:01.479 go that way. What I think is that maybe along 00:03:01.479 --> 00:03:04.280 that southern part of that street Horizon Ridge 00:03:04.280 --> 00:03:08.860 drive, it probably was all various public uses. 00:03:08.860 --> 00:03:11.039 And then this developer switched to residential 00:03:11.039 --> 00:03:14.020 and slowly. We're now we're the last one that 00:03:14.020 --> 00:03:16.990 is is a that's called a semi public use. Okay. 00:03:17.169 --> 00:03:20.270 Or PS classification and our zoning code. So 00:03:20.270 --> 00:03:23.009 because we're asking for any type of zoning change, 00:03:23.530 --> 00:03:26.270 they can pretty much demand anything of us because 00:03:26.270 --> 00:03:29.569 we're not abiding by the prescribed rules. Therefore 00:03:29.569 --> 00:03:31.849 they don't have to abide by the prescribed rules. 00:03:32.169 --> 00:03:34.849 Now, all this costs you about $20 ,000. I mean, 00:03:34.949 --> 00:03:37.789 you've got to get the topography done, the actual 00:03:37.789 --> 00:03:40.789 site boundaries. You have, you retain a civil 00:03:40.789 --> 00:03:43.810 engineering firm to do that. And they draw it 00:03:43.810 --> 00:03:46.340 up. They get the exact dimensions and everything 00:03:46.340 --> 00:03:48.680 based off the survey. And then they take their 00:03:48.680 --> 00:03:50.539 knowledge of the codes and say, okay, we're going 00:03:50.539 --> 00:03:54.219 to put a 33 foot wide street in here. And I kind 00:03:54.219 --> 00:03:57.000 of came up with the conceptual map of how I wanted 00:03:57.000 --> 00:03:59.780 it to go based on the parcel size. And I wanted 00:03:59.780 --> 00:04:01.460 to create some good lots in there instead of 00:04:01.460 --> 00:04:02.939 just running a street right down. And then you 00:04:02.939 --> 00:04:05.500 have homes cornering a busy street. I wanted 00:04:05.500 --> 00:04:08.259 to pull in and L around, and then everyone kind 00:04:08.259 --> 00:04:11.219 of lives off of that cul -de -sac. So that part, 00:04:11.259 --> 00:04:13.939 I kind of started start your engines and then 00:04:13.939 --> 00:04:17.100 they ran with it and then use their knowledge. 00:04:17.160 --> 00:04:19.100 And I have rudimentary knowledge, elementary 00:04:19.100 --> 00:04:21.920 knowledge, I should say, of zoning. I know that 00:04:21.920 --> 00:04:23.819 certain zoning classifications have minimum lot 00:04:23.819 --> 00:04:25.759 sizes, I know roughly how big a cul -de -sac 00:04:25.759 --> 00:04:29.300 is and how big your right aways have to be, setbacks, 00:04:29.439 --> 00:04:31.199 I know things like that. But there's a lot of 00:04:31.199 --> 00:04:33.019 technicality and a lot of nuance to the zoning 00:04:33.019 --> 00:04:37.379 laws as well. So what they do is take this and 00:04:37.379 --> 00:04:39.199 get what's called a tentative map, take all that 00:04:39.199 --> 00:04:41.379 information that I mentioned and draw a tentative 00:04:41.379 --> 00:04:45.459 map. And we have our first CPR, which you need 00:04:45.459 --> 00:04:47.920 CPR after that. That's not what it stands for. 00:04:48.220 --> 00:04:50.519 Comprehensive Planning Review. And that's about 00:04:50.519 --> 00:04:53.620 a three week process. By the time you get it 00:04:53.620 --> 00:04:56.100 submitted, the city reviews it, that's a 10 day 00:04:56.100 --> 00:04:58.079 period. And then they issue you back your comments. 00:04:58.139 --> 00:05:00.160 So you submit it on a Monday. You usually have 00:05:00.160 --> 00:05:02.180 your comments back the following Friday. So I 00:05:02.180 --> 00:05:04.360 shouldn't say three weeks, but by the time you 00:05:04.360 --> 00:05:06.459 draw it, submit it, get your comments back, it's 00:05:06.459 --> 00:05:09.699 about three weeks. And then they have those submittals 00:05:09.699 --> 00:05:13.160 every three weeks. So you get your notes back 00:05:13.160 --> 00:05:16.360 and then you schedule a meeting with the city 00:05:16.360 --> 00:05:19.620 the following Monday. So they get us our comments 00:05:19.620 --> 00:05:23.339 back on Thursday and said it was a three page 00:05:23.339 --> 00:05:25.279 PDF. Then we can maybe put it up on the screen. 00:05:25.420 --> 00:05:30.259 It was astoundingly tedious. And it had things 00:05:30.259 --> 00:05:33.699 as simple as all garages must be 22 feet deep 00:05:33.699 --> 00:05:36.279 and have an electric car charger. which station 00:05:36.279 --> 00:05:38.339 anyway, which is what we would do anyway. And 00:05:38.339 --> 00:05:40.500 now there is new code where you have to have 00:05:40.500 --> 00:05:42.500 electric car chargers, but we've had a 22 foot 00:05:42.500 --> 00:05:44.339 garage, deep depth code in the city of Henderson 00:05:44.339 --> 00:05:46.699 for many, many years before I was even home builder. 00:05:47.100 --> 00:05:49.339 So, but they put it in there. It's one more thing 00:05:49.339 --> 00:05:51.139 that kind of crowds it out. It's what the market 00:05:51.139 --> 00:05:52.939 would require. So the market would require anyway, 00:05:54.420 --> 00:05:55.839 except you want to be able to fit your car in 00:05:55.839 --> 00:06:00.120 some storage and yeah, exactly. So it was, that's 00:06:00.120 --> 00:06:04.970 just one small example of You know that the tediousness 00:06:04.970 --> 00:06:06.850 that comes with this type of plan of you because 00:06:06.850 --> 00:06:08.430 you're sifting through all those things and saying 00:06:08.430 --> 00:06:10.170 okay That's a given that's a given. Of course. 00:06:10.290 --> 00:06:11.949 I'm gonna do that Of course me that and buried 00:06:11.949 --> 00:06:15.329 in there was we want the cul -de -sac to be 100 00:06:15.329 --> 00:06:19.930 foot diameter not 86 86 is the code Room for 00:06:19.930 --> 00:06:23.189 the street. So the so we call it a 43 radius. 00:06:23.269 --> 00:06:27.310 Okay, so 86 total in diameter. They wanted 100 00:06:27.310 --> 00:06:32.699 They want a 10 foot That's why. Oh, you want 00:06:32.699 --> 00:06:36.079 to know why? Because the people that requisition 00:06:36.079 --> 00:06:41.800 acquired a sewage maintenance truck that must 00:06:41.800 --> 00:06:44.100 be the size of a locomotive, because it needs 00:06:44.100 --> 00:06:46.660 a 100 foot diameter cul -de -sac. So we're in 00:06:46.660 --> 00:06:49.600 this meeting, and the city. That's why they want 00:06:49.600 --> 00:06:52.500 that. They want 100 foot turning radius or 100 00:06:52.500 --> 00:06:55.300 foot deck for one truck for one truck that might 00:06:55.300 --> 00:06:58.430 need to get up there in 20 years. And mind you 00:06:58.430 --> 00:07:00.649 that all of the other cul -de -sacs in the city 00:07:00.649 --> 00:07:03.550 are designed by that old coat. So I would argue 00:07:03.550 --> 00:07:05.769 the problem is with the truck, nothing, cul -de 00:07:05.769 --> 00:07:08.649 -sac. No, that's so true. You would think. So 00:07:08.649 --> 00:07:11.050 when you, when you put your map to the city, 00:07:11.310 --> 00:07:13.069 it goes to every single department, department 00:07:13.069 --> 00:07:17.050 of public works, which is water, sewer, uh, and 00:07:17.050 --> 00:07:19.149 the energy doesn't touch it at that, at this 00:07:19.149 --> 00:07:22.620 juncture yet. Um, city planning, building and 00:07:22.620 --> 00:07:24.779 standards, those types of entities are all looking 00:07:24.779 --> 00:07:27.220 at it. So I want to say there were about 12 people 00:07:27.220 --> 00:07:30.220 in that meeting. And everyone had a comment. 00:07:30.220 --> 00:07:31.779 And the reason they're in that meeting is because 00:07:31.779 --> 00:07:34.899 they're responsible for I think there were 50 00:07:34.899 --> 00:07:36.939 something comments. So maybe this one person 00:07:36.939 --> 00:07:38.600 is responsible for eight of them. This other 00:07:38.600 --> 00:07:40.740 person is responsible for 10 of them. So you 00:07:40.740 --> 00:07:42.939 can see why when one person and building standards 00:07:42.939 --> 00:07:45.699 looks at and goes, well, he better make sure 00:07:45.699 --> 00:07:48.990 he does 22 foot garage steps. That in there, 00:07:49.389 --> 00:07:51.170 you know, it's that's kind of how they're thinking 00:07:51.170 --> 00:07:55.149 This is only tentative maps. Oh, so there's homes 00:07:55.149 --> 00:07:59.069 are not designed yet. Okay, so It's people just 00:07:59.069 --> 00:08:00.750 putting in their two cents, right? They someone 00:08:00.750 --> 00:08:03.290 that feels like they have to contribute so they're 00:08:03.290 --> 00:08:05.009 you better make sure there's 22 foot garage steps 00:08:05.009 --> 00:08:07.050 Yeah, okay. I know that I can't get a building 00:08:07.050 --> 00:08:08.990 permit without that but okay can't sell the houses 00:08:08.990 --> 00:08:12.170 without that but aren't I was gonna go 14, but 00:08:12.170 --> 00:08:16.270 Everyone had a Fiat or a moped or something So, 00:08:16.270 --> 00:08:18.550 um, they send it back and you're going through 00:08:18.550 --> 00:08:20.750 it. So you're going through each person and they're 00:08:20.750 --> 00:08:23.029 saying that, you know, so we get to the cul -de 00:08:23.029 --> 00:08:26.370 -sac comment and the planner said, oh, this must 00:08:26.370 --> 00:08:28.810 be a fire requirement. And the fire chief is 00:08:28.810 --> 00:08:31.430 like, ah, no, we were good with the standard 00:08:31.430 --> 00:08:34.610 86 diameter is completely fine with us. We designed 00:08:34.610 --> 00:08:36.470 for a hook and ladder. So the biggest fire truck 00:08:36.470 --> 00:08:38.330 ever. I feel like the fire truck would be bigger 00:08:38.330 --> 00:08:42.080 than you would wonder. So Yeah. Yeah. Apparently 00:08:42.080 --> 00:08:45.120 I want to see this sewer truck because also these 00:08:45.120 --> 00:08:47.039 cul -de -sacs accommodate 18 wheelers because 00:08:47.039 --> 00:08:49.399 you can have, I'm sure you've seen 18 wheelers 00:08:49.399 --> 00:08:51.179 delivering furniture and think about you get 00:08:51.179 --> 00:08:52.940 a furniture delivery. It's going to come on an 00:08:52.940 --> 00:08:54.960 18 wheeler. Yeah. They get in and out of cul 00:08:54.960 --> 00:08:56.120 -de -sacs. They get in and out of cul -de -sacs 00:08:56.120 --> 00:08:57.419 all the time. So what does a sewer truck look 00:08:57.419 --> 00:08:59.659 like? I really want to know. I'm just afraid 00:08:59.659 --> 00:09:01.279 to Google sewer trucks and get sponsored ads 00:09:01.279 --> 00:09:08.639 from Peterbilt. So little comments like that. 00:09:08.679 --> 00:09:12.139 And then Zoning says we're going to enforce the 00:09:12.139 --> 00:09:14.919 10 foot landscape buffer on each side. The code 00:09:14.919 --> 00:09:18.679 actually says only if you're up zoning from the 00:09:18.679 --> 00:09:21.080 adjoining parcel. The adjoining parcel is a town 00:09:21.080 --> 00:09:23.100 home community on this side. This doesn't need 00:09:23.100 --> 00:09:27.379 a 10 foot landscape buffer. That property to 00:09:27.379 --> 00:09:32.179 the west of me is an RS6 zoning. So we're RSA. 00:09:32.320 --> 00:09:34.700 So technically we're up zoning. Fine. That's 00:09:34.700 --> 00:09:36.000 all right. We'll do a 10 foot landscape buffer. 00:09:36.320 --> 00:09:37.659 And he said, no, we want a 10 foot landscape 00:09:37.659 --> 00:09:41.179 buffer. And just on both sides. RS6 versus RS8, 00:09:41.279 --> 00:09:43.159 what is the classification, the differential? 00:09:43.600 --> 00:09:47.980 So most of it is density, but it's also dictates 00:09:47.980 --> 00:09:52.779 lot size. So RS6, you have to have a 6 ,000 square 00:09:52.779 --> 00:09:54.980 foot home site. RS8, you have to have a 4 ,000 00:09:54.980 --> 00:09:57.639 square foot home site. When you click into RS8, 00:09:58.080 --> 00:10:00.820 it triggers community elements. So community 00:10:00.820 --> 00:10:05.529 parks. and then different setback rules for the 00:10:05.529 --> 00:10:07.610 individual homes. So basically it'll just have 00:10:07.610 --> 00:10:09.909 a different feel. The neighborhood, an RS6 neighborhood 00:10:09.909 --> 00:10:13.269 will have a different feel to an RS8. So we were 00:10:13.269 --> 00:10:15.169 shooting for RS8 and we thought we could fit 00:10:15.169 --> 00:10:17.870 our community element in there. More homes. I 00:10:17.870 --> 00:10:20.269 would have fit more homes, but oddly enough it 00:10:20.269 --> 00:10:22.730 would have been eight homes, even though RS8 00:10:22.730 --> 00:10:24.169 zoning would have allowed me to go all the way 00:10:24.169 --> 00:10:27.230 up to for this parcel could have been 15. So 00:10:27.230 --> 00:10:31.169 it's eight homes per acre. Okay. So eight homes 00:10:31.169 --> 00:10:33.590 breaker and you have to satisfy the other elements. 00:10:33.590 --> 00:10:37.090 So if you hit something else, like the community's 00:10:37.090 --> 00:10:40.669 park space, you're not going to hit the RSA. 00:10:40.730 --> 00:10:42.429 You're going to have to sacrifice a lot because 00:10:42.429 --> 00:10:45.350 it's a multiplier. Every lot requires 500 square 00:10:45.350 --> 00:10:48.490 feet of open space. Some common element, not 00:10:48.490 --> 00:10:50.730 open space. There's a distinction, a common element. 00:10:51.350 --> 00:10:53.769 And the trick is, is that, and this gets into 00:10:53.769 --> 00:10:55.590 why we kept losing lots. Every time I talked 00:10:55.590 --> 00:10:59.480 to the city, I'd leave a lot. So, okay, now you're 00:10:59.480 --> 00:11:02.539 taking 10 feet off of a 400 foot parcel. We're 00:11:02.539 --> 00:11:06.940 losing 4 ,000 square feet of the lot of the total 00:11:06.940 --> 00:11:09.500 undeveloped parcel. And it's on this site too. 00:11:10.100 --> 00:11:11.980 It is, it is a whole lot really. So we're losing 00:11:11.980 --> 00:11:16.000 a lot here and now it's 10 foot strip. So you're 00:11:16.000 --> 00:11:18.919 probably not losing a lot in its entire, it's 00:11:18.919 --> 00:11:21.840 10 foot strip. So you're probably not losing 00:11:21.840 --> 00:11:24.909 a lot in its entirety, but you are Now this lot 00:11:24.909 --> 00:11:27.330 would have been a 45 knots, 35, cause you had 00:11:27.330 --> 00:11:29.509 to lose 10 feet. Well, now if it wasn't at least 00:11:29.509 --> 00:11:31.929 120 feet deep, now it doesn't fit the size requirement. 00:11:31.970 --> 00:11:35.370 So you kind of rendered this lot useless because 00:11:35.370 --> 00:11:39.590 it doesn't meet the minimum. So you, your common 00:11:39.590 --> 00:11:42.230 element also is not satisfied by your landscape 00:11:42.230 --> 00:11:45.549 buffer and any other kind of easements or anything 00:11:45.549 --> 00:11:48.450 does not satisfy your land, your common element. 00:11:48.590 --> 00:11:52.389 So it's all of those requirements plus a common 00:11:52.389 --> 00:11:55.049 element. And the common element has to be usable. 00:11:55.850 --> 00:11:57.990 So they want some sort of sidewalk in there, 00:11:58.090 --> 00:12:00.690 some sort of greenery park, whatever. And I'm 00:12:00.690 --> 00:12:03.029 all for that. I get it. But is it a little out 00:12:03.029 --> 00:12:06.309 of context for an eight or nine or 10 home subdivision 00:12:06.309 --> 00:12:09.129 to have a 4 ,000 square foot park? That's not 00:12:09.129 --> 00:12:12.350 a usable park. At 4 ,000 square foot, for context, 00:12:12.409 --> 00:12:14.529 if you think of when you look from the air, a 00:12:14.529 --> 00:12:16.450 cookie cutter neighborhood, you'd say, boy, those 00:12:16.450 --> 00:12:18.129 homes are all on top of each other. Those lots 00:12:18.129 --> 00:12:20.029 are usually 4 ,000 square feet. So what are you 00:12:20.029 --> 00:12:22.649 going to do with that park that's 35 feet wide 00:12:22.649 --> 00:12:25.730 by 120 feet deep? Yeah, you would be forgiven 00:12:25.730 --> 00:12:27.789 to just not even realizing it's there. You could 00:12:27.789 --> 00:12:30.129 live on that street and not even think of that 00:12:30.129 --> 00:12:31.730 as a park because it's not going to look like 00:12:31.730 --> 00:12:33.509 a park to you. It's going to look like emptiness. 00:12:34.230 --> 00:12:35.789 And we'll landscape it and make it look nice, 00:12:35.789 --> 00:12:37.809 but it's not going to be a place where your kids 00:12:37.809 --> 00:12:41.879 can go play catch. So and ultimately you have 00:12:41.879 --> 00:12:44.840 city parks and actual legitimate fields and that's 00:12:44.840 --> 00:12:47.360 how I look at it is that if they were That in 00:12:47.360 --> 00:12:48.919 my opinion there should be some sort of waiver 00:12:48.919 --> 00:12:51.320 if you're within a quarter mile of a major city 00:12:51.320 --> 00:12:54.580 park That requirement should be waiting. It's 00:12:54.580 --> 00:12:57.620 not it should be it should be a thing Yeah, exactly. 00:12:57.620 --> 00:12:59.759 I'm sure with all my sway should they're sure 00:12:59.759 --> 00:13:03.730 they're gonna love to hear that Yeah, so And 00:13:03.730 --> 00:13:05.429 I get it. Again, best laid plans. We've talked 00:13:05.429 --> 00:13:08.009 about this 101 times. The best laid plans. Everyone, 00:13:08.129 --> 00:13:10.110 oh yeah, we should have more parks. Oh, the home 00:13:10.110 --> 00:13:11.529 shouldn't be on top of each other. Okay, well 00:13:11.529 --> 00:13:13.629 you can't have your 8K Canadian too. Ultimately, 00:13:14.070 --> 00:13:18.129 development is a capitalist endeavor and landowners 00:13:18.129 --> 00:13:19.809 don't generally care because there's just not 00:13:19.809 --> 00:13:21.570 enough land sellers. There might be a lot of 00:13:21.570 --> 00:13:23.090 landowners, but there's not enough land sellers 00:13:23.090 --> 00:13:25.690 at any given time. So they don't really care. 00:13:25.909 --> 00:13:28.409 They're just finding, they're capturing a lot 00:13:28.409 --> 00:13:30.429 of the profit that's baked into the home that 00:13:30.429 --> 00:13:32.190 you're buying at the end of the day. They got 00:13:32.190 --> 00:13:35.340 that money. I got a portion of it, but they're 00:13:35.340 --> 00:13:37.620 getting it. They're pulling forward those gains 00:13:37.620 --> 00:13:41.200 now. A lot of times the landowners are paid on 00:13:41.200 --> 00:13:44.399 next year's home prices. And I don't want to 00:13:44.399 --> 00:13:47.519 do that, but I have to. So when you look at a 00:13:47.519 --> 00:13:49.919 major publicly traded company, which I've known 00:13:50.519 --> 00:13:53.659 I lovingly calling them tonnage builders. Tonnage 00:13:53.659 --> 00:13:56.919 heard from my friend Howard at BDG. He called 00:13:56.919 --> 00:13:58.659 it a tonnage builder. And I really liked that 00:13:58.659 --> 00:14:00.960 they're building in tonnage. So what they're 00:14:00.960 --> 00:14:03.299 doing is they're looking at a seven or 8 % price 00:14:03.299 --> 00:14:05.659 appreciation, cut it in half just to be safe. 00:14:05.840 --> 00:14:07.840 So when they're doing all of their math on these 00:14:07.840 --> 00:14:11.100 neighborhoods, they're looking at not this year's. 00:14:11.100 --> 00:14:13.120 So when they're penciling it out, they think 00:14:13.120 --> 00:14:14.980 those homes can sell for 800 ,000, but they think 00:14:14.980 --> 00:14:16.620 there's going to be four or 5 % appreciation. 00:14:16.860 --> 00:14:18.789 They're now going to say Okay, do all the math, 00:14:18.889 --> 00:14:22.450 but with $840 ,000 South's prices, because there's 00:14:22.450 --> 00:14:25.210 such a shortage of actual available land, they 00:14:25.210 --> 00:14:26.509 want to be the most competitive, they want to 00:14:26.509 --> 00:14:28.129 make sure they're looking at it in the most competitive 00:14:28.129 --> 00:14:31.429 way, so that they don't keep losing out to other 00:14:31.429 --> 00:14:35.190 nationwide tonnage builders. And that's unfortunately 00:14:35.190 --> 00:14:38.090 how I have to think as well. Certain areas are 00:14:38.090 --> 00:14:39.690 different when there's a lot of land available, 00:14:39.769 --> 00:14:41.990 like in South Shore Country Club, I can pick 00:14:41.990 --> 00:14:43.950 up lots all day long and kind of does become 00:14:43.950 --> 00:14:45.769 a race to the bottom because if I can find five 00:14:45.769 --> 00:14:49.980 or six equal lots, I can probably find the most 00:14:49.980 --> 00:14:53.000 motivated seller of those five. And then six 00:14:53.000 --> 00:14:54.279 months later, when I'm ready to acquire another 00:14:54.279 --> 00:14:56.919 lot, I can find the most motivated seller of 00:14:56.919 --> 00:14:59.620 those four plus whatever else came onto the market. 00:15:00.100 --> 00:15:03.840 So if land sold like that acreage for subdivisions 00:15:03.840 --> 00:15:06.740 sold like that, it would be a lot easier to negotiate. 00:15:06.840 --> 00:15:09.340 But because there's not enough land sellers or 00:15:09.340 --> 00:15:12.019 anything available at any given time, you're 00:15:12.019 --> 00:15:14.019 just stuck with what they want for the land. 00:15:14.039 --> 00:15:17.440 And usually it's 20 % higher than what you would 00:15:17.440 --> 00:15:20.039 normally expect. So I guess my point is, is that 00:15:20.039 --> 00:15:22.759 it's not up to the land seller to worry about 00:15:22.759 --> 00:15:24.480 zoning. It would be nice if they said, Hey, you're 00:15:24.480 --> 00:15:26.659 making the value of my land. If you can sell 00:15:26.659 --> 00:15:29.600 this line for 13 homes versus eight and have 00:15:29.600 --> 00:15:31.299 to go to the expense of building a park and all 00:15:31.299 --> 00:15:33.480 these other components to go into it. I have 00:15:33.480 --> 00:15:35.399 to pay less for land or get more for the houses 00:15:35.399 --> 00:15:38.460 and or make less. And if you're making less, 00:15:38.539 --> 00:15:40.220 if enough people are making less, enough people 00:15:40.220 --> 00:15:42.259 exit the space and then home values go up anyways, 00:15:42.360 --> 00:15:43.860 you have a supply issue, which is what we're 00:15:43.860 --> 00:15:46.000 in right now. We're we're in that still from 00:15:46.000 --> 00:15:48.740 2009. In my opinion, we're still in that mode 00:15:48.740 --> 00:15:51.559 where we're enough small builders get out of 00:15:51.559 --> 00:15:53.740 the game. And you're left with the big tonnage 00:15:53.740 --> 00:15:55.779 builders who are publicly traded and only care 00:15:55.779 --> 00:15:59.289 about next quarter's returns. My you know, to 00:15:59.289 --> 00:16:01.830 circle back to my my point is that it's not that 00:16:01.830 --> 00:16:03.309 I don't want to do those things. It's not that 00:16:03.309 --> 00:16:05.850 I that I don't believe in little community parks. 00:16:05.950 --> 00:16:07.490 It's not that I don't believe in wish I could 00:16:07.490 --> 00:16:09.269 do 6000 square foot home sites. I wish I could 00:16:09.269 --> 00:16:10.950 do all those things and still deliver an affordable 00:16:10.950 --> 00:16:13.629 product. Unfortunately, the nature of the beast 00:16:13.629 --> 00:16:16.110 is not that we're paying almost $1 million for 00:16:16.110 --> 00:16:18.929 this. We will have almost another million dollars 00:16:18.929 --> 00:16:21.950 in engineering. infrastructure, the cul -de -sac, 00:16:22.190 --> 00:16:25.389 everything, the grading sits on a hillside and 00:16:25.389 --> 00:16:27.769 it's a mess. It's going to be a lot of work to 00:16:27.769 --> 00:16:31.870 get these things kind of ready. Easily. Easily. 00:16:31.909 --> 00:16:33.529 It might even be a little bit more. So it may 00:16:33.529 --> 00:16:38.590 be 21 or 215. So you can see when that is the 00:16:38.590 --> 00:16:42.090 numerator, I want to minimize the lot cost by 00:16:42.090 --> 00:16:45.649 maximizing the denominator, i .e. the total amount 00:16:45.649 --> 00:16:49.220 of home sites. So I go into it thinking, Okay. 00:16:49.360 --> 00:16:51.100 Can we get townhomes in here? Let's just say 00:16:51.100 --> 00:16:54.000 2 .3 million divided by 23. I'm into a hundred 00:16:54.000 --> 00:16:57.220 thousand dollars per pad or door. Okay. Very 00:16:57.220 --> 00:16:58.879 doable in that area. Cause even a townhome would 00:16:58.879 --> 00:17:01.379 still sell for five or $600 ,000 if I did them 00:17:01.379 --> 00:17:03.460 right. So then I'm starting there at a hundred 00:17:03.460 --> 00:17:06.240 thousand dollars. Amazing. That's let's do it. 00:17:06.700 --> 00:17:08.880 So you take it down to, okay. Then we started 00:17:08.880 --> 00:17:11.180 getting a little nervous because we were worried 00:17:11.180 --> 00:17:14.640 about selling 23 townhomes without And we would 00:17:14.640 --> 00:17:16.400 have the common space and all those requirements. 00:17:16.960 --> 00:17:18.759 Now that makes sense to have a little bit more 00:17:18.759 --> 00:17:21.220 space. You do. I mean, and I wouldn't. So that 00:17:21.220 --> 00:17:23.579 actually, that's why I aborted that deal. Not 00:17:23.579 --> 00:17:26.460 because or that that that strategy, because I 00:17:26.460 --> 00:17:28.420 didn't believe I would want to live in that. 00:17:28.539 --> 00:17:30.339 I didn't want to live in that product. Yeah, 00:17:30.559 --> 00:17:32.380 I wouldn't want to live in a 23 home town home 00:17:32.380 --> 00:17:35.240 community with zero amenities. We could have 00:17:35.240 --> 00:17:36.940 satisfied the open space, we could have done 00:17:36.940 --> 00:17:40.319 it. But then where do you go? Do you build a 00:17:40.319 --> 00:17:43.440 pool? Did you gate it? What do you do? Do you 00:17:43.440 --> 00:17:45.500 do dog park? What are you going to do there? 00:17:45.880 --> 00:17:48.799 So then by the time I factored all that in, it 00:17:48.799 --> 00:17:50.839 just didn't seem like I could get a product that 00:17:50.839 --> 00:17:52.519 I liked. So I said, okay, let's flip to single 00:17:52.519 --> 00:17:54.480 family. At that point, I thought we could maybe 00:17:54.480 --> 00:17:56.980 technically, legally, if we went R6, we could 00:17:56.980 --> 00:17:59.619 have gotten about 15 home sites in there. And 00:17:59.619 --> 00:18:01.559 of course, assuming they satisfied everything 00:18:01.559 --> 00:18:03.440 else, I thought, okay, let's start from 15 and 00:18:03.440 --> 00:18:06.359 work our way back. This is before I even retained 00:18:06.359 --> 00:18:10.470 my engineer. It wasn't even on the radar. I was 00:18:10.470 --> 00:18:12.750 laying it out in my I have rudimentary software 00:18:12.750 --> 00:18:15.829 that runs like cat and I was laying it out and 00:18:15.829 --> 00:18:18.609 I could not get a comfortable map. So then I 00:18:18.609 --> 00:18:20.190 was trying to avoid messing with the mountain 00:18:20.190 --> 00:18:22.130 side too. So I said, okay, let's not mess with 00:18:22.130 --> 00:18:25.029 the mountainside. Let's take out a whole nother 00:18:25.029 --> 00:18:26.809 side. That's a hillside overlay. We kind of talked 00:18:26.809 --> 00:18:28.809 about that in the previous episode. They would 00:18:28.809 --> 00:18:30.789 want more surveys. And then of course it's just 00:18:30.789 --> 00:18:32.650 a lot more work, maybe some blasting. It would 00:18:32.650 --> 00:18:35.970 have been a lot of work. And I said, I didn't 00:18:35.970 --> 00:18:37.609 want to go through that. It just didn't pencil 00:18:37.609 --> 00:18:40.069 out for to go from because I knew I was going 00:18:40.069 --> 00:18:42.849 to get around eight or nine. So do I really want 00:18:42.849 --> 00:18:46.869 to go to 12 or 13 but spend another $700 ,000 00:18:46.869 --> 00:18:49.609 in blasting and site work and every home still 00:18:49.609 --> 00:18:51.769 costs even the town homes would have cost me 00:18:51.769 --> 00:18:55.430 a water tap fee and reclamation fees and all 00:18:55.430 --> 00:18:58.470 these other per home site fees would have been 00:18:58.470 --> 00:19:00.549 a little higher. Even though your lineal sewer 00:19:00.549 --> 00:19:02.150 pipe and all that would have been roughly the 00:19:02.150 --> 00:19:04.509 same because everything's so much closer, you 00:19:04.509 --> 00:19:06.890 still get a surcharge for every single door you 00:19:06.890 --> 00:19:11.619 add into the infrastructure. So when I reverse 00:19:11.619 --> 00:19:13.799 course and said, let's go single family, let's 00:19:13.799 --> 00:19:16.779 not disturb 24 ,000 square feet of hillside. 00:19:16.819 --> 00:19:19.420 And I'm only working with a hundred thousand 00:19:19.420 --> 00:19:24.059 square feet of total parcel. So I lost another 00:19:24.059 --> 00:19:27.259 25 % of the parcel to not touch the hillside. 00:19:27.440 --> 00:19:28.759 As a town home, I would have had to touch the 00:19:28.759 --> 00:19:31.180 hillside, but it made sense to get 23 townhomes 00:19:31.180 --> 00:19:32.259 in there. It would have made sense. It would 00:19:32.259 --> 00:19:36.599 have been enough doors to make sense. So we dial 00:19:36.599 --> 00:19:40.079 that back. We preserve the slope. We've now lost 00:19:40.079 --> 00:19:42.339 a quarter of our, of what I paid a million dollars 00:19:42.339 --> 00:19:45.640 for. So now I lost 250 grand, but that will make 00:19:45.640 --> 00:19:47.160 the neighborhood more beautiful. You're going 00:19:47.160 --> 00:19:48.559 to pull into the street. You're going to see 00:19:48.559 --> 00:19:50.500 the foothill of a mountain. It's going to be 00:19:50.500 --> 00:19:51.599 a small neighborhood, but boy, it's going to 00:19:51.599 --> 00:19:53.059 be pretty special. It's going to feel like a 00:19:53.059 --> 00:19:54.680 nice little enclave. So I thought let's go that 00:19:54.680 --> 00:19:57.019 route. And then let's maximize what we have. 00:19:57.400 --> 00:20:00.160 So we did a LIDAR map. This is at this point 00:20:00.160 --> 00:20:01.819 where I pulled in the engineer. Let's do a LIDAR 00:20:01.819 --> 00:20:04.119 map and figure out where exactly that slope ends. 00:20:04.259 --> 00:20:06.400 Where's the toe of that mountain? And then we'll 00:20:06.400 --> 00:20:08.420 go from there. We could probably cheat it and 00:20:08.420 --> 00:20:10.960 go five foot up the slope and just hope that 00:20:10.960 --> 00:20:12.940 the city doesn't trigger a hillside overlay. 00:20:13.119 --> 00:20:14.640 It's all about that little kind of fine line. 00:20:14.740 --> 00:20:17.339 Well, we could push back five feet and then maybe 00:20:17.339 --> 00:20:19.859 the back of their backyards would kind of start 00:20:19.859 --> 00:20:21.779 sloping up and then they would have a view fence. 00:20:22.140 --> 00:20:25.640 This would still be pretty nice. But again, I 00:20:25.640 --> 00:20:27.240 didn't want to push it too much So let's just 00:20:27.240 --> 00:20:29.299 go right to that hillside and then go five feet 00:20:29.299 --> 00:20:31.460 past it right to the toe of the mountain and 00:20:31.460 --> 00:20:32.799 go five feet I gotta get a little bit of a win 00:20:32.799 --> 00:20:36.160 here. So So we do all that we lay everything 00:20:36.160 --> 00:20:38.119 out and then that's where we got to where we 00:20:38.119 --> 00:20:41.119 were for our early April submission Which was 00:20:41.119 --> 00:20:44.599 about three weeks ago So we submit that map that 00:20:44.599 --> 00:20:47.359 has ten homes and I was really really comfortable 00:20:47.359 --> 00:20:50.059 and I knew There was probably gonna be a comment 00:20:50.059 --> 00:20:52.519 on the common area space, but I also thought 00:20:53.120 --> 00:20:56.339 can we do a waiver standards can we because sometimes 00:20:56.339 --> 00:20:58.339 if it's a small you could maybe go to city council 00:20:58.339 --> 00:21:00.119 and say can I get a waiver standards it's only 00:21:00.119 --> 00:21:02.839 10 homes it's all connected you know to the main 00:21:02.839 --> 00:21:05.900 grid can you let the people walk to the city 00:21:05.900 --> 00:21:08.180 park is that okay and maybe just see how they 00:21:08.180 --> 00:21:10.519 felt about it and at that point we would have 00:21:10.519 --> 00:21:13.319 been into each home site for about 190 000 because 00:21:13.319 --> 00:21:14.500 it would have it would have cost a little bit 00:21:14.500 --> 00:21:18.559 less to do to do these uh um 10 homes instead 00:21:18.559 --> 00:21:20.079 of 23 so I thought okay we're probably going 00:21:20.079 --> 00:21:24.259 to be at around let's just call it 1 .9. So I 00:21:24.259 --> 00:21:25.599 thought, okay, we're going to 10 homes, we're 00:21:25.599 --> 00:21:27.619 at 190 ,000. But now we've got beautiful single 00:21:27.619 --> 00:21:29.279 family home sites, they're narrow lots, they're 00:21:29.279 --> 00:21:31.220 35 foot wide, but they're deep and you can put 00:21:31.220 --> 00:21:34.299 a nice 2300 square foot product in there, which 00:21:34.299 --> 00:21:35.640 on new construction in that area is probably 00:21:35.640 --> 00:21:39.480 around an $800 ,000 house, maybe 750 to be conservative. 00:21:40.140 --> 00:21:42.140 So that still really works. You know, you're 00:21:42.140 --> 00:21:44.559 at 200 ,000 per home site, we'll water down the 00:21:44.559 --> 00:21:46.099 actual homes themselves a little bit and see 00:21:46.099 --> 00:21:47.839 how much we can push the market. Bottom line 00:21:47.839 --> 00:21:51.400 is the project works. So we send that in, all 00:21:51.400 --> 00:21:53.769 the comments. What really nailed us were the 00:21:53.769 --> 00:21:57.589 10 foot setbacks and the cul -de -sac. And then 00:21:57.589 --> 00:21:59.150 they said, unless you want to apply for a waiver 00:21:59.150 --> 00:22:02.170 of standards, we want a 47 foot wide street where 00:22:02.170 --> 00:22:04.990 we had drawn a 37 foot wide street, which is 00:22:04.990 --> 00:22:08.250 technically in the code. So the street is short 00:22:08.250 --> 00:22:09.890 enough where it doesn't have to be wide because 00:22:09.890 --> 00:22:12.230 the thought is that it's only 10 households. 00:22:12.390 --> 00:22:14.430 And you're going slowly up there. You're going 00:22:14.430 --> 00:22:17.670 slow and really cars comfortably in a parking 00:22:17.670 --> 00:22:20.900 lot probably only have 18 feet between stalls. 00:22:21.119 --> 00:22:23.680 This is twice that. Maybe you'd form an HOA that 00:22:23.680 --> 00:22:25.799 didn't allow street parking on one side of the 00:22:25.799 --> 00:22:28.259 street just so it didn't get too crowded. But 00:22:28.259 --> 00:22:30.500 again, it was like 10 homes and there was a lot 00:22:30.500 --> 00:22:32.859 of blank space because of that cul -de -sac and 00:22:32.859 --> 00:22:34.839 it was just a lot of dead space without you. 00:22:34.859 --> 00:22:36.259 There's going to be enough parking here. Every 00:22:36.259 --> 00:22:38.259 home is going to have a two car deep, you know, 00:22:38.279 --> 00:22:41.339 two car wide driveway, one car deep, obviously 00:22:41.339 --> 00:22:43.819 a 22 foot deep garage as we know, which can fit 00:22:43.819 --> 00:22:51.319 about nine cars. So we we had a you know something 00:22:51.319 --> 00:22:53.920 I felt comfortable with and they that that that 00:22:53.920 --> 00:22:57.180 three pages worth and She was very blunt with 00:22:57.180 --> 00:23:00.420 me and she's been really great My my contact 00:23:00.420 --> 00:23:02.259 at the city and she said I'll be honest with 00:23:02.259 --> 00:23:04.819 you the climate right now You don't want to go 00:23:04.819 --> 00:23:06.759 for a waiver of standards Just the people that 00:23:06.759 --> 00:23:09.019 are composing the City Council the people in 00:23:09.019 --> 00:23:10.880 the Planning Commission said it's just probably 00:23:10.880 --> 00:23:14.200 not a good idea unless you want to sit and At 00:23:14.200 --> 00:23:15.980 that point is when you probably would retain 00:23:15.980 --> 00:23:18.650 a lawyer because you would have a lawyer represent 00:23:18.650 --> 00:23:21.190 you to go through the waiver of standards and 00:23:21.190 --> 00:23:23.470 to kind of get those things solidified and negotiated 00:23:23.470 --> 00:23:26.069 with the city of Henderson. I don't want to go 00:23:26.069 --> 00:23:28.609 that route because here's the bottom line. If 00:23:28.609 --> 00:23:30.569 I give them what they want, I thought, okay, 00:23:30.569 --> 00:23:32.190 we're going to go down to eight lots. We're just 00:23:32.190 --> 00:23:34.269 going to give them the community space. We're 00:23:34.269 --> 00:23:36.329 going to give them the 10 foot on this side. 00:23:36.509 --> 00:23:38.509 We will argue the 10 foot on the town home side, 00:23:38.710 --> 00:23:40.150 but that's not a waiver of standards. That's 00:23:40.150 --> 00:23:42.890 just an interpretation. We helped. So I said, 00:23:43.049 --> 00:23:45.339 okay, if we do that, We can get everything in 00:23:45.339 --> 00:23:48.039 here and the lot is very irregular now that we've 00:23:48.039 --> 00:23:50.180 kind of avoided that mountain So what we were 00:23:50.180 --> 00:23:52.960 gonna do is do a 10 -foot path down to the open 00:23:52.960 --> 00:23:55.440 space in here You wouldn't see the open space 00:23:55.440 --> 00:23:58.000 You'd see a little Paseo kind of a pathway weave 00:23:58.000 --> 00:24:00.319 through maybe do some landscape lights and I'll 00:24:00.319 --> 00:24:02.740 have it open up under a 4 ,000 square foot park 00:24:02.740 --> 00:24:06.299 and Everything was great. We had eight home sites 00:24:06.509 --> 00:24:09.450 And this is last weekend, last Thursday. So I'm 00:24:09.450 --> 00:24:11.109 sitting here going, we have some really irregular 00:24:11.109 --> 00:24:14.130 lots, but we have eight. So let me start designing 00:24:14.130 --> 00:24:16.849 a product that can go on these. We talked that 00:24:16.849 --> 00:24:19.609 day. We actually did. Yeah, we did a little thought 00:24:19.609 --> 00:24:22.269 we had had it kind of well dialed in. I mean, 00:24:22.269 --> 00:24:24.329 I know you were feeling after, you know, sitting 00:24:24.329 --> 00:24:25.970 on the council meeting, you kind of felt like 00:24:25.970 --> 00:24:30.609 you had a good gauge on it. And since then, well, 00:24:31.210 --> 00:24:34.980 it did. So I spent the In a few days, we talked 00:24:34.980 --> 00:24:38.240 on, we talked on Thursday, I think. Yep. So Friday 00:24:38.240 --> 00:24:40.359 I'm saying, okay, I have some office time and 00:24:40.359 --> 00:24:42.599 Saturday I have some office time. I'm going to, 00:24:42.599 --> 00:24:44.859 I have to before we send this map off because 00:24:44.859 --> 00:24:48.000 the cutoff is today for the new map to be submitted. 00:24:48.180 --> 00:24:50.940 So I said, I have to make sure that I did tell 00:24:50.940 --> 00:24:54.680 my engineer run with this map and Monday submit 00:24:54.680 --> 00:24:56.359 it along with all the other paperwork and all 00:24:56.359 --> 00:24:59.440 the other answers to the three page PDF, get 00:24:59.440 --> 00:25:02.079 it ready and get it teed up. And I'm going to 00:25:02.079 --> 00:25:03.900 start working on the houses just so that I can 00:25:03.900 --> 00:25:07.339 get excited about this product before we get 00:25:07.339 --> 00:25:09.579 too far down the road. And I rack my brain. I 00:25:09.579 --> 00:25:11.299 had two lots out of the eight that were only 00:25:11.299 --> 00:25:13.420 70 feet deep, but they were wide. And if you 00:25:13.420 --> 00:25:16.019 think you got to be 20 feet off the curb, a 22 00:25:16.019 --> 00:25:18.619 foot deep driveway, I'm never going to let that 00:25:18.619 --> 00:25:22.779 down. And then your garage is now the entire 00:25:22.779 --> 00:25:25.220 length of that. You can't get any house behind 00:25:25.220 --> 00:25:27.480 that because the garage plus the setback is already 00:25:27.480 --> 00:25:30.450 42. You have to be 15 feet off your rear wall. 00:25:30.509 --> 00:25:33.829 So now you're at 57. The entire lot's only 68 00:25:33.829 --> 00:25:36.250 deep. What room is 11 feet behind the garage? 00:25:36.269 --> 00:25:38.410 You see how challenging that would be. And then 00:25:38.410 --> 00:25:40.670 the lot itself was irregular and you're limited 00:25:40.670 --> 00:25:43.990 by a five foot side setback at the narrowest 00:25:43.990 --> 00:25:47.190 point. So then it ended up with this really weird 00:25:47.190 --> 00:25:50.289 house and I was feeling okay about it and I got 00:25:50.289 --> 00:25:52.549 down to my fifth iteration. I thought, okay, 00:25:52.730 --> 00:25:54.950 this one I like. and then the lot next door to 00:25:54.950 --> 00:25:56.769 it five and six were very similar and I thought 00:25:56.769 --> 00:25:59.049 if I can mirror it and maybe make it work and 00:25:59.049 --> 00:26:00.670 it didn't by the way but I got was able to get 00:26:00.670 --> 00:26:02.750 something under five that worked and it wasn't 00:26:02.750 --> 00:26:05.190 nearly as painful as six and then I designed 00:26:05.190 --> 00:26:07.890 two different products for the other two lot 00:26:07.890 --> 00:26:10.049 types so we have three of one lot type and then 00:26:10.049 --> 00:26:12.029 three of the other and two of the really regular 00:26:12.029 --> 00:26:15.269 ones so I designed I did all this and it was 00:26:15.269 --> 00:26:18.769 Sunday at 11 Saturday night at around 10 30 and 00:26:18.769 --> 00:26:20.930 I may or may not have some help from Kim Crawford, 00:26:21.109 --> 00:26:23.369 some Sauvignon Blanc. There was an empty bottle 00:26:23.369 --> 00:26:26.170 on my desk, let's face it. And I was feeling 00:26:26.170 --> 00:26:28.089 so good about somebody, I don't know, it was 00:26:28.089 --> 00:26:31.130 Kim. So there was an empty bottle of Kim Crawford 00:26:31.130 --> 00:26:33.130 on my desk and I felt really good about it. I 00:26:33.130 --> 00:26:35.410 don't like a lot five and six, but I love the 00:26:35.410 --> 00:26:37.170 other product that we're gonna put on the other 00:26:37.170 --> 00:26:38.609 six. And five and six will still sell, they'll 00:26:38.609 --> 00:26:40.930 be fine. They back them out and they're gonna 00:26:40.930 --> 00:26:42.710 have other features that are redeeming qualities. 00:26:42.910 --> 00:26:45.099 They're smaller than I wanted. They were kind 00:26:45.099 --> 00:26:46.839 of irregular, kind of weird floor plans, but 00:26:46.839 --> 00:26:49.059 I use that to make them unique and kind of interesting. 00:26:49.799 --> 00:26:53.359 So Sunday morning, I'm getting up and I, I make 00:26:53.359 --> 00:26:56.619 my coffee and I go sit down at my desk and boot 00:26:56.619 --> 00:26:59.380 up my computer. And the first thing on my computer 00:26:59.380 --> 00:27:02.960 is that map again. And as I have my coffee like 00:27:02.960 --> 00:27:07.660 this, like tomorrow we'll submit good. And I 00:27:07.660 --> 00:27:10.059 zoom my computer wakes up and I look at the monitor 00:27:10.059 --> 00:27:15.980 and you can believe this out. What? I completely 00:27:15.980 --> 00:27:19.380 missed that we drew it. I missed it. Two other 00:27:19.380 --> 00:27:21.599 engineers missed it. And the engineers admin, 00:27:21.599 --> 00:27:24.839 admin person missed it. We didn't calculate it 00:27:24.839 --> 00:27:28.119 right. We drew it with the 36, the 3575 of open 00:27:28.119 --> 00:27:31.099 space because we had kind of wavered back and 00:27:31.099 --> 00:27:32.460 forth. And he said, do you want seven or eight? 00:27:32.500 --> 00:27:34.480 And so let's go to eight. If we do seven, it's 00:27:34.480 --> 00:27:36.079 a different zoning classification and to be lower, 00:27:36.160 --> 00:27:38.380 we don't need a park at all. If we do seven, 00:27:38.400 --> 00:27:41.960 because then we follow the RS6. So we go to RS8. 00:27:42.279 --> 00:27:44.700 but with eight homes, not seven. And I think 00:27:44.700 --> 00:27:46.900 in his mind and in my mind, I knew we were doing 00:27:46.900 --> 00:27:51.700 eight houses, but 500 times eight is 4 ,000, 00:27:51.819 --> 00:27:56.900 not 3 ,500. And I have a degree in biochemistry 00:27:56.900 --> 00:27:59.619 and pharmacology. He has a master's in engineering 00:27:59.619 --> 00:28:02.180 and probably a bachelor's too. And I'm sure there's 00:28:02.180 --> 00:28:05.180 other engineers. And none of us got that math. 00:28:05.319 --> 00:28:08.240 We all missed it. And we agonized over this Monday, 00:28:08.240 --> 00:28:09.819 Tuesday, Wednesday, we had a three hour meeting 00:28:09.819 --> 00:28:13.029 on Wednesday, finalized it. Thursday I say, okay, 00:28:13.069 --> 00:28:14.710 this is good. Go ahead and go for it. Because 00:28:14.710 --> 00:28:16.730 Wednesday we had some revisions and he said Thursday 00:28:16.730 --> 00:28:18.849 morning I'm going to have you two revisions, 00:28:18.970 --> 00:28:21.269 one with seven lots and one with eight. Seven 00:28:21.269 --> 00:28:22.809 is going to be our six. You're not going to need 00:28:22.809 --> 00:28:24.190 a park at all. You're going to lose a lot, but 00:28:24.190 --> 00:28:26.470 they're going to be better, better lots. Eight 00:28:26.470 --> 00:28:27.529 is going to have this, but you're going to be 00:28:27.529 --> 00:28:28.970 satisfied to figure out if you like it and tell 00:28:28.970 --> 00:28:31.670 me which one. So that's why I said. go with eight 00:28:31.670 --> 00:28:33.430 before I even really looked at it, but I'll figure 00:28:33.430 --> 00:28:36.029 out a product that'll work there. So I guess 00:28:36.029 --> 00:28:38.710 we're both thinking seven with RSA. We just weren't 00:28:38.710 --> 00:28:41.710 thinking. But after two days of agonizing over 00:28:41.710 --> 00:28:44.109 the plans, I had my coffee and the first thing 00:28:44.109 --> 00:28:45.829 they boots up and it was zoomed in on the common 00:28:45.829 --> 00:28:49.349 area, almost comedic, like cinematic. And it 00:28:49.349 --> 00:28:53.509 zooms in and the screen lights up and I 3575. 00:28:55.049 --> 00:28:58.490 I'm gonna calculate. It's not 500 times eight. 00:28:58.809 --> 00:29:01.640 That's 500 times seven. So after all that, I 00:29:01.640 --> 00:29:03.900 had to scrap it all. And then I agonized over 00:29:03.900 --> 00:29:06.420 that map for another two hours on Sunday morning. 00:29:07.000 --> 00:29:10.839 There is no way. And we'll put the map over the 00:29:10.839 --> 00:29:13.420 screen. I want people to see how irregular it 00:29:13.420 --> 00:29:16.339 was because we're limited by 4 ,000 square feet 00:29:16.339 --> 00:29:19.579 of open space and every single lot has to be 00:29:19.579 --> 00:29:22.519 at least 4 ,000. The lots around the common space 00:29:22.519 --> 00:29:25.359 were exactly 4 ,000. The lots over here were 00:29:25.359 --> 00:29:28.599 4 ,500, 4 ,300. We had room to spare. We had 00:29:28.599 --> 00:29:31.440 it. We had the square footage. But then we were 00:29:31.440 --> 00:29:33.299 limited by the frontage because there's also 00:29:33.299 --> 00:29:37.099 a code that says how wide lots have to be. So 00:29:37.099 --> 00:29:40.140 yes, we could have shrunken those lots to 4 ,000, 00:29:40.140 --> 00:29:41.799 but it would have come at the expense of their 00:29:41.799 --> 00:29:43.660 width because we would have had to shift everything 00:29:43.660 --> 00:29:46.220 over this way. We couldn't rob from behind them. 00:29:46.980 --> 00:29:49.839 We had to shift them. The common element has 00:29:49.839 --> 00:29:52.240 to all be continuous. So it has to touch. We 00:29:52.240 --> 00:29:53.720 couldn't just rob from some of them and make 00:29:53.720 --> 00:29:56.119 a common element here to satisfy it. And it has 00:29:56.119 --> 00:29:58.759 to be usable. It can't be part of a slope. So 00:29:58.759 --> 00:30:01.660 it was just checkmate, checkmate, checkmate, 00:30:01.680 --> 00:30:04.039 checkmate, checkmate. And that's how it felt. 00:30:04.539 --> 00:30:07.579 And then the common area has to be at least 30 00:30:07.579 --> 00:30:10.099 feet wide. So we already have to apply for a 00:30:10.099 --> 00:30:12.420 waiver of standards on that 10 foot Paseo that 00:30:12.420 --> 00:30:14.180 was going to walk in. But he thought you're going 00:30:14.180 --> 00:30:16.200 to be able to get it because you're only walking 00:30:16.200 --> 00:30:19.420 100 feet, 10 feet wide. We'll draw a nice landscape 00:30:19.420 --> 00:30:22.039 planet and it will open up and you see it. But 00:30:22.039 --> 00:30:23.819 believe it or not, those Paseos are usually 30 00:30:23.819 --> 00:30:26.700 feet wide. They just look small and scale 10 00:30:26.700 --> 00:30:28.759 feet is pretty narrow. That's half of a garage. 00:30:28.819 --> 00:30:31.140 It's pretty narrow. I wasn't loving that, but 00:30:31.140 --> 00:30:32.799 it was it was the best I could do with what I 00:30:32.799 --> 00:30:35.440 had. So it was, I was already worried about that 00:30:35.440 --> 00:30:36.880 because then you'd argue. Well, can't you just 00:30:36.880 --> 00:30:40.819 make a strip of land on the side? Make that your 00:30:40.819 --> 00:30:43.240 common area element. Great. That's awesome. But 00:30:43.240 --> 00:30:45.259 it's got to be 30 feet wide. You can't just make 00:30:45.259 --> 00:30:49.500 a, a seven foot park, a seven foot by 400 foot 00:30:49.500 --> 00:30:52.359 park gave a little bit of that common area. to 00:30:52.359 --> 00:30:54.500 each home except right to be connected. They 00:30:54.500 --> 00:30:56.799 have to all be connected. Exactly. So it was 00:30:56.799 --> 00:30:59.240 a puzzle. In fact, I had it cut out a little 00:30:59.240 --> 00:31:01.720 paper doll cutouts. You know, I was moving around 00:31:01.720 --> 00:31:04.160 like if I move this here, move this. No, if I 00:31:04.160 --> 00:31:06.019 move this here, move this. No, move this here. 00:31:06.079 --> 00:31:08.200 No. So there's a couple things. The street being 00:31:08.200 --> 00:31:11.019 wider took from us because that took from these 00:31:11.019 --> 00:31:14.619 lots. The cul de sac being 14 feet wider took 00:31:14.619 --> 00:31:16.519 enough square footage from this lot that we could 00:31:16.519 --> 00:31:18.569 have you know, given some to the common element. 00:31:19.269 --> 00:31:22.089 And then they the one of the last comments was 00:31:22.089 --> 00:31:25.089 we want a five foot wide setback around the entire 00:31:25.089 --> 00:31:27.630 cul -de -sac. We don't want to just on half of 00:31:27.630 --> 00:31:29.589 it. And there's there's gray area in the code 00:31:29.589 --> 00:31:31.829 that would have said, yeah, we could there's 00:31:31.829 --> 00:31:32.930 a gray area, the code that said we could have 00:31:32.930 --> 00:31:34.670 sidewalk just on one side, because there's only 00:31:34.670 --> 00:31:36.450 four homes on this side. If you want to get to 00:31:36.450 --> 00:31:38.170 the sidewalk, you can cross your cul -de -sac 00:31:38.170 --> 00:31:40.250 get to your sidewalk and be inside the network 00:31:40.250 --> 00:31:41.890 of sidewalks that take you to the rest of the 00:31:41.890 --> 00:31:44.410 city. Conversely, you could go on this side of 00:31:44.410 --> 00:31:46.089 the cul -de -sac, just walk down your street 00:31:46.089 --> 00:31:48.910 on the block top. Eight people live on that street. 00:31:49.150 --> 00:31:51.569 It's a 47 foot wide street. The cars can get 00:31:51.569 --> 00:31:54.170 around you. They wanted a sidewalk on both sides. 00:31:54.910 --> 00:31:57.549 The beauty of it is lot square footages, setbacks 00:31:57.549 --> 00:31:59.890 are measured from the back of the sidewalk. So 00:31:59.890 --> 00:32:01.710 not only did we lose 14 feet with the cul -de 00:32:01.710 --> 00:32:04.130 -sac, we lost another five feet with the sidewalk. 00:32:04.809 --> 00:32:08.130 We lost from 33 to 47. We lost five feet as well. 00:32:08.400 --> 00:32:10.940 and that takes away. So now when you look at 00:32:10.940 --> 00:32:13.500 this map and we'll put it up on the screen, it 00:32:13.500 --> 00:32:17.279 looks like 30 % of it is asphalt. Skullsack is 00:32:17.279 --> 00:32:19.309 massive. It's only eight homes. cul -de -sac 00:32:19.309 --> 00:32:22.609 is massive. The street is wide. You've got anything 00:32:22.609 --> 00:32:26.109 about every hard surface sucks up heat. Oh my 00:32:26.109 --> 00:32:28.710 gosh. And in Vegas, that's just a huge deal. 00:32:29.250 --> 00:32:31.650 It's a heat sink. It's a convection oven. It 00:32:31.650 --> 00:32:33.750 is. You've walked out to a parking lot and you 00:32:33.750 --> 00:32:35.650 feel that heat radiating even eight o 'clock 00:32:35.650 --> 00:32:38.130 at night when the sun's down. It's like a brick 00:32:38.130 --> 00:32:41.369 oven. It just radiates. So I'm looking at this 00:32:41.369 --> 00:32:44.109 map and thinking instead of having rooftops, 00:32:44.109 --> 00:32:47.490 which are radiant by nature, instead of having 00:32:47.490 --> 00:32:49.819 landscape even desert landscaping with maybe 00:32:49.819 --> 00:32:53.200 some vegetation, some ground cover, that's heat 00:32:53.200 --> 00:32:56.079 absorbing by nature, heat reflecting. We have 00:32:56.079 --> 00:32:59.680 asphalt and sidewalk to make our city more sustainable. 00:33:00.359 --> 00:33:02.519 Because these are sustainability standards. If 00:33:02.519 --> 00:33:04.019 you read, I don't want to make any enemies of 00:33:04.019 --> 00:33:05.339 the city of Henderson. I love the city of Henderson, 00:33:06.160 --> 00:33:09.480 especially the people. They are amazing. I wish 00:33:09.480 --> 00:33:12.500 I did more in Henderson. I want to build as many 00:33:12.500 --> 00:33:14.299 50 foot cul -de -sacs in my career as I possibly 00:33:14.299 --> 00:33:17.250 can. Did you hear me? You heard me wrong. I don't 00:33:17.250 --> 00:33:20.569 want fool for you. They're loving. Yeah. Within 00:33:20.569 --> 00:33:22.329 the first 20 words of the Henderson mission statement 00:33:22.329 --> 00:33:25.730 is the word sustainable. There is absolutely 00:33:25.730 --> 00:33:27.509 nothing sustainable about all of that aspect. 00:33:27.509 --> 00:33:29.890 The criteria they're requesting is not sustainable. 00:33:30.589 --> 00:33:33.170 There are so many interests that the person who 00:33:33.170 --> 00:33:35.349 really wants a sustainability or the livable 00:33:35.349 --> 00:33:37.309 city or the breathable city or the walkable city. 00:33:37.589 --> 00:33:40.990 You look at what makes people feel not safe walking. 00:33:41.150 --> 00:33:44.119 It is boulevard width. There's science to this. 00:33:44.200 --> 00:33:47.180 There's a formula that how wide the avenue is, 00:33:47.380 --> 00:33:50.380 how tall the nearest structure is, and how much, 00:33:50.480 --> 00:33:52.539 if there's a break of trees between you and the 00:33:52.539 --> 00:33:55.599 street, tells the walkability score to say, that's 00:33:55.599 --> 00:33:57.099 how people are comfortable. If you ever feel 00:33:57.099 --> 00:33:59.019 like, ah, it feels like I don't want to walk 00:33:59.019 --> 00:34:00.599 across that parking lot. It's because it's too 00:34:00.599 --> 00:34:02.740 much horizontal space. Right. You don't know 00:34:02.740 --> 00:34:05.519 what could be lurking. Right. I mean, more space, 00:34:05.660 --> 00:34:08.420 you do feel... You feel less secure. Yeah. And 00:34:08.420 --> 00:34:11.019 cars drive faster. That is a science. Cars drive 00:34:11.019 --> 00:34:14.440 faster on wider... avenues and boulevards. So 00:34:14.440 --> 00:34:17.920 that's why, you know, we have these massive, 00:34:18.260 --> 00:34:21.000 non walkable cities, we're watching it in real 00:34:21.000 --> 00:34:23.219 time, you're going to be sitting in your driveway. 00:34:23.440 --> 00:34:25.519 And your neighbor is one if you're on either 00:34:25.519 --> 00:34:27.599 side of that cul -de -sac, your neighbor is 100 00:34:27.599 --> 00:34:30.480 feet of asphalt, 100 feet of asphalt from you. 00:34:31.099 --> 00:34:34.219 The street I grew up on. I measured it on I went 00:34:34.219 --> 00:34:37.780 on the satellite imagery. The street that I grew 00:34:37.780 --> 00:34:43.130 up on was 18 feet wide. East Coast narrow streets 00:34:43.130 --> 00:34:45.710 and our homes were set way far back from the 00:34:45.710 --> 00:34:48.489 road So we would play rollerblades and bikes 00:34:48.489 --> 00:34:51.949 on our 60 -foot driveway the homes got the space 00:34:51.949 --> 00:34:54.449 Imagine if that same city was designed today 00:34:54.449 --> 00:34:58.469 the street would be three times that width And 00:34:58.469 --> 00:34:59.929 I will tell you we had a lot of great times on 00:34:59.929 --> 00:35:01.690 that street and cars drove slow on that street 00:35:01.690 --> 00:35:04.329 We felt comfortable on our bikes with that street 00:35:04.329 --> 00:35:07.440 get dropped off the bus. He just felt Comfortable 00:35:07.440 --> 00:35:09.840 so that long driveway where you played that was 00:35:09.840 --> 00:35:13.400 your childhood memories. Yeah is Now that's taken 00:35:13.400 --> 00:35:16.480 out of the street and this is all now We're 20 00:35:16.480 --> 00:35:18.719 feet off the street and now you get to live instead 00:35:18.719 --> 00:35:21.519 We had a grassy front yard East Coast but a grassy 00:35:21.519 --> 00:35:23.659 front yard You're playing building snowman in 00:35:23.659 --> 00:35:26.400 the winter and planting trees in the spring and 00:35:26.400 --> 00:35:28.440 a lot of great memories in that yard And the 00:35:28.440 --> 00:35:32.679 home was set back for you just felt better And 00:35:32.679 --> 00:35:34.820 we've given that to roads now because there might 00:35:34.820 --> 00:35:36.840 be a sewer truck that in 30 years needs to go 00:35:36.840 --> 00:35:39.260 down there. That sort of truck won't even be 00:35:39.260 --> 00:35:41.539 on the road by that point. These are not going 00:35:41.539 --> 00:35:43.539 to need an email. So I don't want to, it's not 00:35:43.539 --> 00:35:45.480 a mail truck that goes up there every day. This 00:35:45.480 --> 00:35:48.860 is a sewer maintenance truck that might never 00:35:48.860 --> 00:35:50.780 ever go on that call the sec ever. There's a 00:35:50.780 --> 00:35:52.920 chance that it never goes there. That is always 00:35:52.920 --> 00:35:55.460 a possibility. it's not like fire where well 00:35:55.460 --> 00:35:56.719 fire there's a pretty strong chance i know one 00:35:56.719 --> 00:35:58.719 will be there but maybe someone has a yes you 00:35:58.719 --> 00:36:00.440 hope but but you want them to be you want to 00:36:00.440 --> 00:36:02.300 be able to get there yeah i'll for now get a 00:36:02.300 --> 00:36:04.059 bigger truck to be able to be more efficient 00:36:04.059 --> 00:36:06.760 in their firefighting then great we'll support 00:36:06.760 --> 00:36:09.880 that absolutely but this is this feels like a 00:36:09.880 --> 00:36:12.360 that they built something that isn't even going 00:36:12.360 --> 00:36:14.059 to be practical. It's not even practical. Yeah, 00:36:14.280 --> 00:36:16.440 99 % of the cul -de -sacs are that size or smaller 00:36:16.440 --> 00:36:19.199 because the codes were smaller before. So a better 00:36:19.199 --> 00:36:22.139 driver or the better or someone, you know, got 00:36:22.139 --> 00:36:24.280 some kickbacks from someone who bought the extra 00:36:24.280 --> 00:36:27.380 large sewer truck. So it's been interesting to 00:36:27.380 --> 00:36:29.900 watch a play out in real time. Why are cities 00:36:29.900 --> 00:36:32.219 like the way they do? Why are homes cost the 00:36:32.219 --> 00:36:35.340 way they do? So now, these few little rules on 00:36:35.340 --> 00:36:39.000 the rulebook, we lost. I mean, effectively, we 00:36:39.000 --> 00:36:41.760 lost. We went from 15 to now we're down to seven 00:36:41.760 --> 00:36:43.760 because technically, if we didn't have to worry 00:36:43.760 --> 00:36:45.480 about that hillside overlay, I could have made 00:36:45.480 --> 00:36:48.260 that neighborhood work. So now instead of 15 00:36:48.260 --> 00:36:50.739 families living in there, or maybe even 23, but 00:36:50.739 --> 00:36:53.420 let's just say 15 single family. Now you're down 00:36:53.420 --> 00:36:56.340 to seven. And guess what? I'm not going to just 00:36:56.340 --> 00:36:58.940 make less. I'm going to build a more luxurious 00:36:58.940 --> 00:37:01.360 home because now my lots are much larger. Now 00:37:01.360 --> 00:37:03.829 I don't have to build a park. Great. I mean, 00:37:03.829 --> 00:37:06.329 I want to but I don't want my books to have it 00:37:06.329 --> 00:37:08.250 in their yard anyway. I mean, it's nice to have 00:37:08.250 --> 00:37:09.570 a park if you want to walk your dog down there. 00:37:09.570 --> 00:37:11.610 But if you do have you want you want to be able 00:37:11.610 --> 00:37:13.210 to put your own pool and you want the course 00:37:13.210 --> 00:37:17.090 you want the privacy and what ultimately what 00:37:17.090 --> 00:37:20.309 ultimately happens though, is that because I 00:37:20.309 --> 00:37:23.869 can only fit seven onto a $2 million land development 00:37:23.869 --> 00:37:26.949 deal. Now the homes have to get bigger. So the 00:37:26.949 --> 00:37:29.110 yards don't actually get bigger homes get bigger 00:37:29.110 --> 00:37:31.650 because I sell square footage. I don't really 00:37:31.650 --> 00:37:34.150 sell land. Ultimately, at the end of the day, 00:37:34.250 --> 00:37:36.309 no matter what people say, they're buying square 00:37:36.309 --> 00:37:39.750 footage. So I sell square footage. So therefore, 00:37:40.250 --> 00:37:43.250 I could have either sold 2200 square feet times 00:37:43.250 --> 00:37:45.309 eight, or I can sell that same amount of square 00:37:45.309 --> 00:37:47.349 footage divided by seven. So the homes are going 00:37:47.349 --> 00:37:48.650 to get bigger. Trust me, I was already working 00:37:48.650 --> 00:37:50.769 on the schematics for some of them. They take 00:37:50.769 --> 00:37:53.940 up as much of the lot. Yeah. Because I have to 00:37:53.940 --> 00:37:57.199 now build a 35 to 3 ,800 square foot home that's 00:37:57.199 --> 00:38:00.360 going to sell for 1 .5, 1 .6 million in order 00:38:00.360 --> 00:38:02.159 to make this project work. That's why the market 00:38:02.159 --> 00:38:05.599 is so top heavy because of these rules. But the 00:38:05.599 --> 00:38:09.039 bottom line is the interests don't know that 00:38:09.039 --> 00:38:12.619 or care. They just say, oh, my job is to make 00:38:12.619 --> 00:38:15.619 sure that the sanitation truck can turn around 00:38:15.619 --> 00:38:17.219 here. That's his job. He's not doing anything 00:38:17.219 --> 00:38:19.699 wrong. Right. Fire. My job is to make sure the 00:38:19.699 --> 00:38:22.690 city's safe from fire. Great. Planning. Our job 00:38:22.690 --> 00:38:24.190 is to make sure that the city standards that 00:38:24.190 --> 00:38:26.610 have all been agreed upon by city council and 00:38:26.610 --> 00:38:28.190 voters and people that put the mayor in office, 00:38:29.170 --> 00:38:31.650 the population at large, the standards that these 00:38:31.650 --> 00:38:33.929 people have told us indirectly that they want 00:38:33.929 --> 00:38:36.510 to live in, that's my job. Their job is not to 00:38:36.510 --> 00:38:38.389 preserve the real estate market. But is there 00:38:38.389 --> 00:38:40.510 no consideration for lifestyle that will be happening 00:38:40.510 --> 00:38:42.949 there? They think this is lifestyle. This is. 00:38:43.230 --> 00:38:45.809 That's what they think. Because there's so many 00:38:45.809 --> 00:38:47.909 moving parts to development into cities, you 00:38:47.909 --> 00:38:50.300 know, to city planning, I should say. that there's 00:38:50.300 --> 00:38:53.159 no one sole arbiter of it. There's no one person 00:38:53.159 --> 00:38:55.619 that sits there like Oz behind the curtain and 00:38:55.619 --> 00:38:58.460 says, you know, get your Tin Man and get your 00:38:58.460 --> 00:39:01.780 dog. There's no one that is in charge of that. 00:39:01.920 --> 00:39:03.780 It's a committee basically, more or less. I mean, 00:39:03.780 --> 00:39:06.780 it really is. It's a committee of people. Is 00:39:06.780 --> 00:39:09.199 there not some rule book that they It is. But 00:39:09.199 --> 00:39:12.300 that's the thing is that when when most of these 00:39:12.300 --> 00:39:14.980 are rules, but there's always usually a waiver 00:39:14.980 --> 00:39:17.099 process or something, you could fight it. But 00:39:17.099 --> 00:39:19.539 you don't want to go With this with the zoning 00:39:19.539 --> 00:39:22.380 change and about nine waivers of standards. Yeah, 00:39:22.500 --> 00:39:24.460 I told my engineer that I said we are gonna pick 00:39:24.460 --> 00:39:27.000 one or two waivers That's it. I don't want to 00:39:27.000 --> 00:39:28.960 go with them and go to them and say oh by the 00:39:28.960 --> 00:39:31.360 way I know I already asked to not have to do 00:39:31.360 --> 00:39:34.320 any park space can also do narrower streets Can 00:39:34.320 --> 00:39:36.820 I also not do a sidewalk can also not do a cul 00:39:36.820 --> 00:39:39.059 -de -sac? That's what your sanitation person 00:39:39.059 --> 00:39:41.199 wanted now. I'm gonna get none of them. So it's 00:39:41.199 --> 00:39:42.460 like a little kid Do you want to stay up till 00:39:42.460 --> 00:39:45.780 10? And ask nicely or do you want to go for midnight 00:39:45.780 --> 00:39:47.940 and also ask for ice cream too and also has to 00:39:47.940 --> 00:39:50.880 go to the park tomorrow and also So I think that 00:39:50.880 --> 00:39:53.860 you know that was the path of listers that are 00:39:53.860 --> 00:39:55.940 going to That are going to influence what you 00:39:55.940 --> 00:39:57.579 can sell who your buyer will be what they would 00:39:57.579 --> 00:39:59.400 pay how much home They're gonna get how much 00:39:59.400 --> 00:40:01.300 that's really what it came down to is that I 00:40:01.300 --> 00:40:03.780 didn't want that fight because this project will 00:40:03.780 --> 00:40:07.179 probably pencil better and Make me lose less 00:40:07.179 --> 00:40:09.920 sleep by doing seven luxury homes versus ten 00:40:09.920 --> 00:40:12.789 more middle -market homes I'm already more excited 00:40:12.789 --> 00:40:14.630 about it, because that's what our company does. 00:40:14.630 --> 00:40:17.789 Anyway, we build premium. So this is in our real 00:40:17.789 --> 00:40:21.190 house. This is what we do. So now this product 00:40:21.190 --> 00:40:23.590 will be congruent with what we're used to doing. 00:40:24.070 --> 00:40:26.750 And I'm excited about it. And by the way, so 00:40:26.750 --> 00:40:28.889 is the Excel spreadsheet with a performer on 00:40:28.889 --> 00:40:32.309 it where it says, Oh, oh, oh, if you sell everything 00:40:32.309 --> 00:40:36.110 for 1 .5, that is a that is a great project. 00:40:36.449 --> 00:40:40.250 That's a very good project. Way better. So then 00:40:40.250 --> 00:40:42.130 I guess that answers my question. Had you known 00:40:42.130 --> 00:40:43.809 that these obstacles would be in your future, 00:40:43.909 --> 00:40:45.789 would you still have moved forward with the purchase? 00:40:46.210 --> 00:40:50.010 And it's yes. I mean, had I known, I was already 00:40:50.010 --> 00:40:53.150 mentally prepared for it because I knew it was 00:40:53.150 --> 00:40:55.230 going to be a long shot. I didn't necessarily, 00:40:55.909 --> 00:40:58.969 and by the way, here's the other thing. I'm choosing 00:40:58.969 --> 00:41:01.510 to cave on these things. I could fight these 00:41:01.510 --> 00:41:04.389 things. I could spend two or three years, make 00:41:04.389 --> 00:41:07.969 my case. And just develop for the sake of developing 00:41:07.969 --> 00:41:09.829 and say, I don't care how much blasting is. I 00:41:09.829 --> 00:41:11.429 don't care how much hillside overlays. Cause 00:41:11.429 --> 00:41:14.610 I blast the 23, 24 ,000 square feet of hillside. 00:41:15.030 --> 00:41:17.050 I can fit whatever I want to in here. I could 00:41:17.050 --> 00:41:20.230 do a rockery wall. You know, those beautiful 00:41:20.230 --> 00:41:22.849 Boulder retaining walls. I could do a wall like 00:41:22.849 --> 00:41:26.269 that. I could really get creative here. I could 00:41:26.269 --> 00:41:28.570 do a ton of site work. I could fight the city 00:41:28.570 --> 00:41:30.670 too on certain things. And I could probably get 00:41:31.079 --> 00:41:32.880 my 15 homes in there and they would probably 00:41:32.880 --> 00:41:35.960 all be luxury homes. But my interest is let's 00:41:35.960 --> 00:41:38.280 get into this project. Let's develop it. Let's 00:41:38.280 --> 00:41:40.420 move on to the next one. This is not my end all 00:41:40.420 --> 00:41:43.079 be all. This is not my opus. I'm not here to 00:41:43.079 --> 00:41:46.579 make this little hillside on Horizon Ridge, a 00:41:46.579 --> 00:41:48.880 15 home subdivision. I don't make it seven. Right? 00:41:49.039 --> 00:41:51.599 I'll leave 23 ,000 square feet on fin of you 00:41:51.599 --> 00:41:54.780 know, preserve hillside and we'll move on. I'm 00:41:54.780 --> 00:41:56.380 not going to fight on the common area element. 00:41:56.480 --> 00:41:57.980 I'm going to reduce the zoning. I'm not going 00:41:57.980 --> 00:41:59.239 to fight on the street with I'll give them a 00:41:59.239 --> 00:42:03.699 street with Right? So that's kind of, I was prepared. 00:42:03.699 --> 00:42:06.340 And I think that's why I cave so easily because 00:42:06.340 --> 00:42:08.260 quite frankly, I had already run numbers going 00:42:08.260 --> 00:42:09.900 all the way down to seven. I never went below 00:42:09.900 --> 00:42:13.599 seven because I thought you six is really challenging. 00:42:13.599 --> 00:42:16.340 That's going to be really tough because now you're 00:42:16.340 --> 00:42:18.280 hitting maybe 2 million. And then now it needs 00:42:18.280 --> 00:42:22.480 to be gated. Now it needs to have maybe a better 00:42:22.480 --> 00:42:24.619 level of finish or whatever. There are certain 00:42:24.619 --> 00:42:26.260 things that aren't going to matter to a 1 .2 00:42:26.260 --> 00:42:30.130 or mattering to 2 million. So an area can carry 00:42:30.130 --> 00:42:31.989 anything between there. I mean, there are some 00:42:31.989 --> 00:42:33.710 like we've talked about before. There are homes 00:42:33.710 --> 00:42:36.750 within a stone's throw that are there's 10, $15 00:42:36.750 --> 00:42:39.230 million homes that are behind guard gates. But 00:42:39.230 --> 00:42:42.650 that zip code has some of the most expensive 00:42:42.650 --> 00:42:44.809 homes in the city. Actually, I think it does. 00:42:44.849 --> 00:42:47.590 I think that zip code is the most expensive zip 00:42:47.590 --> 00:42:49.510 code. If I had to look, I'd have to verify it. 00:42:49.809 --> 00:42:51.949 But I'm just looking at what's in there. There's 00:42:51.949 --> 00:42:54.170 multiple country clubs in there. There's multiple 00:42:54.170 --> 00:42:56.730 enclaves of very wealthy people and celebrities 00:42:56.730 --> 00:43:00.050 that that the top point zero one percent of our 00:43:00.050 --> 00:43:04.269 city has outside of that, you really could build 00:43:04.269 --> 00:43:09.110 any any level between there. And I mean, trust 00:43:09.110 --> 00:43:13.150 me, I've laid awake and I thought I just do a 00:43:13.150 --> 00:43:16.849 little blister or a little knuckle of four insanely 00:43:16.849 --> 00:43:19.769 luxury custom homes that are two and a half million 00:43:19.769 --> 00:43:22.090 dollars. I mean, it'd be risky, but it would 00:43:22.090 --> 00:43:25.409 be good. I could technically do that. I think 00:43:25.409 --> 00:43:28.039 it would carry it. Cause you'd find that buyer. 00:43:28.659 --> 00:43:30.260 You'd find somebody for them. You only have to 00:43:30.260 --> 00:43:33.139 find four of them in a city of 300 ,000. They'd 00:43:33.139 --> 00:43:34.820 move slowly. They'd be different. Cause if you've 00:43:34.820 --> 00:43:36.280 got two, if you've got two and a half million 00:43:36.280 --> 00:43:37.480 that you could put into a home, you'd rather 00:43:37.480 --> 00:43:39.179 be behind the guard. You'd rather be with that. 00:43:39.219 --> 00:43:41.219 I mean, there, there is that, that trade -off 00:43:41.219 --> 00:43:42.739 that somebody would make. I don't know. Cause 00:43:42.739 --> 00:43:45.019 I guess there's people who don't want to. There's 00:43:45.019 --> 00:43:48.039 a seat for every house. So I mean, or a nice 00:43:48.039 --> 00:43:50.380 forever seat in this situation. So I think it's, 00:43:50.400 --> 00:43:51.820 I mean, I'm, I'm still very excited about the 00:43:51.820 --> 00:43:54.719 project. It's just interesting to me that to 00:43:54.719 --> 00:43:56.659 watch it unfold in real time. That's the bottom 00:43:56.659 --> 00:43:58.940 line is that, wow, this is why cities look the 00:43:58.940 --> 00:44:00.760 way they do. And this is why an older neighborhood 00:44:00.760 --> 00:44:02.119 has different charm than a newer neighborhood, 00:44:02.619 --> 00:44:04.400 because they're not, they don't have a hundred 00:44:04.400 --> 00:44:06.800 foot cul -de -sacs. That's why a newer neighborhood 00:44:06.800 --> 00:44:09.559 might feel soulless. It's so much road, it's 00:44:09.559 --> 00:44:12.000 so much street. And people will say, builders, 00:44:12.219 --> 00:44:13.719 you know, they don't build like they used to, 00:44:13.840 --> 00:44:15.320 it doesn't feel the same, it doesn't have that 00:44:15.320 --> 00:44:17.400 same charm. And they're right. But they don't 00:44:17.400 --> 00:44:19.420 know the backstory as to why it isn't necessarily 00:44:19.420 --> 00:44:22.440 that you had some greedy idea to build less houses 00:44:22.440 --> 00:44:25.019 and put in more street. No, there are these these 00:44:25.019 --> 00:44:27.400 rules. Trust me. I don't want to do and they'll 00:44:27.400 --> 00:44:29.960 see, you know, I can already imagine people coming. 00:44:29.960 --> 00:44:31.699 I've got more luxury homes. Everything's luxury. 00:44:32.099 --> 00:44:34.980 Yeah, just the nature of the beast. Or we can 00:44:34.980 --> 00:44:37.559 just not do them because it's that it would be 00:44:37.559 --> 00:44:39.679 I can't do seven entry level homes on that. I 00:44:39.679 --> 00:44:42.579 just can't. There's just I would be doing it 00:44:42.579 --> 00:44:46.000 as a charity. I couldn't do it. I tried, but 00:44:46.000 --> 00:44:48.219 can you just put more basic product on there 00:44:48.219 --> 00:44:51.219 and give people really nice lots and really nice 00:44:51.219 --> 00:44:54.659 homes? And I would lose money on it. And it's 00:44:54.659 --> 00:44:56.800 a good story. I mean, the story, the backstory 00:44:56.800 --> 00:44:59.219 and how we got here is really interesting and 00:44:59.219 --> 00:45:02.260 things that people don't really think about any 00:45:02.260 --> 00:45:05.400 of that. Right. How we got here. Right. Well, 00:45:05.460 --> 00:45:07.840 that's it. That's that one. And I bored the audience 00:45:07.840 --> 00:45:09.340 enough. I'm not going to get into other projects, 00:45:09.400 --> 00:45:11.119 but there's been some funny stuff. Nothing as 00:45:11.119 --> 00:45:15.550 egregious as that. So And obviously it's a project 00:45:15.550 --> 00:45:18.289 we'll continue talking about, but interesting 00:45:18.289 --> 00:45:21.289 to see how we have gotten to where we are and 00:45:21.289 --> 00:45:25.809 still lots of headway to be made. I mean, I haven't 00:45:25.809 --> 00:45:28.030 even resubmitted. So yeah, well, it's technically 00:45:28.030 --> 00:45:29.929 today. So hopefully they got it in. I don't know. 00:45:30.170 --> 00:45:32.190 And then the funny thing is to look at it where 00:45:32.190 --> 00:45:36.059 another eight to 12 months before. we've got 00:45:36.059 --> 00:45:38.039 six more months of just approval process then 00:45:38.039 --> 00:45:39.519 we got six months of civil improvement plans 00:45:39.519 --> 00:45:41.559 and then we got six months of developing the 00:45:41.559 --> 00:45:44.219 site and then i got to build the houses so very 00:45:44.219 --> 00:45:47.679 long process very very long horizons yeah and 00:45:47.679 --> 00:45:49.539 i know you've talked about that upstream this 00:45:49.539 --> 00:45:51.900 is the upstream yeah and then you're hitting 00:45:51.900 --> 00:45:53.679 a moving target because you don't even know what 00:45:53.679 --> 00:45:56.159 they're going to let you put there or what you're 00:45:56.159 --> 00:45:57.500 able i shouldn't say what they're going to let 00:45:57.500 --> 00:46:00.000 you because there are rules there are waivers 00:46:00.000 --> 00:46:02.400 i don't want to make it out to be some monster 00:46:02.400 --> 00:46:05.489 where they're saying I'm picking my fights though 00:46:05.489 --> 00:46:08.429 and saying, eh, I don't want to do that. I don't 00:46:08.429 --> 00:46:10.769 want to go for nine waivers because I'm going 00:46:10.769 --> 00:46:12.989 to get none of them or two of them. And what 00:46:12.989 --> 00:46:14.730 works for you, what works for your business plan, 00:46:14.929 --> 00:46:16.889 what works for the level of stress. That's a 00:46:16.889 --> 00:46:21.489 good way to put it. You have your own, that's 00:46:21.489 --> 00:46:23.150 what makes Trust Home Builders who they are, 00:46:23.309 --> 00:46:25.429 right? You have your standards and the fights 00:46:25.429 --> 00:46:27.809 you're willing to put in on. That's right. For 00:46:27.809 --> 00:46:30.190 you are most important, the builder to the community 00:46:30.190 --> 00:46:32.530 that you're putting together. And what I'm passionate 00:46:32.530 --> 00:46:35.070 about, I'm passionate about. turning, getting 00:46:35.070 --> 00:46:37.449 these projects up and running and going and sold 00:46:37.449 --> 00:46:39.510 and done before I'm worried about when I get 00:46:39.510 --> 00:46:41.570 to put there. I didn't inherit this from great 00:46:41.570 --> 00:46:45.630 grandma. I have a vision for this lot. There's 00:46:45.630 --> 00:46:48.570 going to be other parts. It's exciting. I don't 00:46:48.570 --> 00:46:49.909 want to spend it as a negative thing. It's actually 00:46:49.909 --> 00:46:52.849 been really great. I'm very excited about it 00:46:52.849 --> 00:46:56.349 and it's been enjoyable to go through the process. 00:46:57.579 --> 00:47:00.139 And, you know, keep kind of the pivot, right? 00:47:00.539 --> 00:47:03.300 Okay, we're gonna pivot. Actually, the pivots 00:47:03.300 --> 00:47:06.019 are fun. They are. Now I'm challenged again. 00:47:06.619 --> 00:47:08.579 Yeah, now I want to go back in my software and 00:47:08.579 --> 00:47:10.500 say, well, what kind of luxury product can they 00:47:10.500 --> 00:47:13.250 put there? That's still exciting. Yeah, absolutely 00:47:13.250 --> 00:47:15.130 excited. I'll be excited to see what kind of 00:47:15.130 --> 00:47:17.329 progress we put there. We'll see. We'll keep 00:47:17.329 --> 00:47:19.769 watching and we'll keep you informed as we go. 00:47:20.090 --> 00:47:22.289 Thanks for joining us on another episode of Trust 00:47:22.289 --> 00:47:25.010 the Process Podcast and we will see you next 00:47:25.010 --> 00:47:28.769 time. Thanks. Bye -bye. Thanks for tuning into 00:47:28.769 --> 00:47:31.289 the Trust the Process Podcast. Make sure to follow 00:47:31.289 --> 00:47:33.809 us on Spotify to stay in the loop with the latest 00:47:33.809 --> 00:47:36.469 insights, project updates, and everything in 00:47:36.469 --> 00:47:38.030 between. See you next time.