pages: CityCouncil/2010-06-01.pdf, 18
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CityCouncil | 2010-06-01 | 18 | are $2.5 million to $7.7 million per acre; comps suggest between $2 million and $5 million; EPS requested information that would substantiate land prices as a percent of unit prices; SunCal provide one comp from southern California; EPS believes the combination of assumptions is overly optimistic. Councilmember/Board Member/Commissioner Matarrese requested clarification on Mr. Brown's comments regarding EPS's assumption of $860,000 for a small house versus $1.1 million house. Mr. Musbach stated that he couldn't make sense of the issue; SunCal concludes that figures are lower than EPS by applying the average pricing across all product types, which is not legitimate. Councilmember/Board Member/Commissioner Matarrese stated that he needs an answer regarding whether or not numbers are real; back calculating the cost per square foot of an $860,000 house results in a $1.4 million house instead of a $1 million house; requested clarification of the matter. The Deputy City Manager - Development Services responded a more detailed analysis would be provided. Mr. Musbach stated per square foot costs obscure house size and quality differences; bigger houses will have lower per square foot prices. Councilmember/Board Member/Commissioner Tam stated the project would never pencil out by looking at just single-family homes; the Measure A compliant plan would not be financially feasible because it would not support the level of public amenities called for in the Master Plan; the Master Plan calculations were across all different housing types. Mr. Musbach stated EPS took all homes prices in Alameda and looked at that relative to Bayport; Bayport homes command a premium of 22%; EPS could have started with a single-family home and ended up with a smaller differential premium of 10% or 15%; EPS forecasted home prices in Alameda as a whole and then applied the premium to get an estimate of what the cost for what single-family homes are for Alameda; SunCal's argument is that since EPS started with a number for all housing that is for sale, then EPS should compare that price to SunCal's average price across all product types in the project, which includes townhouses and condominiums, which drops SunCal's average price way down. The Deputy City Manager - Development Services stated the Bayport premium relates to the fact that it is new construction and predominately single-family homes. Councilmember/Board Member/Commissioner Tam stated EPS is stating that Bayport Special Joint Meeting Alameda City Council, Alameda Reuse and Redevelopment Authority, and 7 Community Improvement Commission June 1, 2010 | CityCouncil/2010-06-01.pdf |