HomeMy WebLinkAbout12.18.12 Hawthorne Garden Apts Permit FeesCity of Chubbuck
Design Review
December 18, 2012
Applicant: Jeff Hawkes, Scott Harris of SHJH, LLC.
Address: 4555 Burley Drive, Chubbuck, ID 83202
Present: Steve Smart, Mayor England, Paul Andrus, Randy Severe, Tom Holmes, Ray Griffin, Eric King. Secretary: Nelli Simmons
PROJECT REQUIREMENTS
Jeff Hawkes and Scott Harris are here today.
Today’s meeting is to discuss permit fees for a 150 unit multifamily housing project called Hawthorne Garden Apartments at 4170 Hawthorne Road.
Hawkes handed copies of e-mails and a summary of those correspondence to the board. Hawkes and Harris were of the understanding that the fees had been decided in an e-mail on December
16, 2011. A Building Permit Fee of $22,814 and a Plan Review Fee of $14, 829. Those amounts were submitted to HUD by Hawkes and Harris.
Steve stated that the building fees were based on an estimated cost of construction at 5 million dollars. This number was provided by the developer as proposed cost of construction.
When the plans were submitted and reviewed 12 million dollars appears to be a more accurate estimate of the building cost based on the most current construction cost data base.
Hawkes explained with HUD financing each line item has a total and HUD does not let the contractor move money from one line to another. Hawkes is concerned that the total he thought
the permits were going to be has been doubled.
Griffin had a copy of the plans that list the total square footage of the apartment building at 193,000. An earlier number of 145,000 square feet had been provided when requesting a
cost for building plan review fees.
Holmes commented that the City only has the drawings to go by when calculating the permit totals.
The City is receiving approx 8 public record requests a week. If this project is investigated the City can’t defend fees based upon the low 5 million dollar cost. The plans you gave
to the City are what Griffin had to base his totals on.
Mayor would like to have a discussion with City staff before coming to a decision. Hawkes and Harris were excused.
There was a general discussion regarding the pros and cons of the building permit fee amounts and the impact on the city, particularly in regard to consistency with our codes and policies.
It was concluded that, in the spirit of economic development, that we could accept the fees shared in the email from Smart to Hawkes, dated December 16, 2011. It was also concluded
that we are justified in asking them
for additional fees, if they can pull them out of the project budget. There was general consensus on this position. However, Holmes pointed out that this approach is a departure from
city regulation and policy that has risk of future problems.
After the discussion with staff Hawkes and Harris were invited back into the conference room.
Mayor England stated the City wants them to proceed with the project. There is justification on both sides that if possible to come to a middle ground on this permit fee. The City is
willing to accept the figure which was very early in the project but consider that the City will need to be able to defend the decision and it would be easier if a compromise could
be met.
Smart asked for a break down on the construction costs.
After looking at the HUD loan paperwork Hawkes found that approx 9 million dollars is the cost for the permitted construction costs. Smart asked to please consider our public scrutiny
and compromise.
Hawkes and Harris will discuss and get back with the Mayor.
Minutes from today’s meeting were e-mailed to jhawkes@hawkes-holding.com on 12.21.12