pages: PlanningBoard/2017-01-23.pdf, 9
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PlanningBoard | 2017-01-23 | 9 | Staff Member Thomas said their financial expert is present and can begin to address those questions. James Edison, financial consultant for Alameda Point, said every acre developed at Alameda Point has to carry $1Million of infrastructure. He said affordable housing does not carry their infrastructure costs and that burden gets shifted to the remaining units. He said they assumed that the workforce housing would be affordable by design, by making them smaller units. He said the cost of homes is a function of square feet. He said a larger unit is more profitable than a smaller unit. He said there is no land cap here, but there is a unit cap. He said they came up with the 10% number for workforce housing by trying to balance all the different factors that will burden any development at the site. Board Member Sullivan said it would be nice to understand the anatomy of the costs to build different units. Board Member Knox White asked if there had been an analysis of what the dollar tradeoffs are for different levels of additional square feet per unit. Mr. Edison said they could come up with a marginal extra value analysis. He said that the Master Infrastructure Plan is dominated by big ticket items like the levee. He said this means than the savings by building the units in a smaller area are marginal because of things like the levee have to be built the same way in either case. Board Member Curtis asked if the infrastructure costs are priced per unit or allocated based on the square footage of each unit. Mr. Edison said the MIP is based on the acreage. He said a lot of the work has to be done sitewide. He said the last piece is a residual value analysis which gives you a per unit value. He said the main constraint for Main Street is the unit count. Board Member Curtis said the high costs of infrastructureconstruction is why these units have such a high price. Board Member Sullivan said perhaps we should build some $2-3 Million homes to help support the starter units. Board Member Zuppan asked what the cost is per unit for going beyond the 1425 unit cap. Mr. Edison said that it was $50,000 per unit. Board Member Zuppan asked if that number was negotiable. Approved Minutes Page 9 of 15 Planning Board Meeting January 23, 2017 | PlanningBoard/2017-01-23.pdf |