First Phase of Construction Management
Please comment here on your experiences and progress, on the first phase of your Construction Management Project for developing and constructing the best and highest use improvement for the hillside property assigned.
For references, please use the texts:
Masters of the Game
Construction Management
After some thought with regards to the conversation between Dr. Chopra and Louis Killabrew and the current economic conditions I believe that more thought needs to be given to rental as well. Maybe not low income rental but market rate rental. No matter what residentials project is done LEED certification should not be an issue due to the close proximity of mass transit, grocery and shopping all within walking distance. That said this project has a chance to be an example for other responsible developers throughout the country. With concentration on extreme energy efficiency we have the chance to market this project as Chattanooga’s premier rental adress. With sheek, contemporary design with lots of natural lighting, beautiful city views, a mountain setting and as near zero energy as we can make it and just 2 miles from downtown.
Concentration should be on large property tax breaks from both the city and county, grants from local foundations, and low interest loans, grants etc from TVA and the EPB and federal energy tax credits. This coupled with the outright ownership of the land should easily be enough to equity to make this project financable even given the current conditions of the “finance” market. Building these units townhome style instead of condo or apartment style will give us more options in the future. We could either sell these units individually when economic times are better or sell the entire complex to an investor group when fully leased.
Good thinking, Paul. PC
After our meeting on February 2nd the team has decided to move forward with option 2 green town homes for purchase. It was decided that we would not include the purchase of additional parcels. Elevator shafts will be installed and elevators will be offered to customers as an add on. A model would be built on the Mountian Creek Road parcel which will later be leased as office space. The road and utilities will be installed only to the first building site. Corey will begin compiling the report, Dr. Chopra will set up a meeting with his contact at CHA to continue to explore option 1 and Paul will begin talking with excavators, finding plans etc.
Corey and I have posted an rough list of tasks to work from on black board.
Hi Paul:
Great ideas to consider.
I wonder if you can prepare a relative comparative table (based upon the preliminary information you have) with pros and cons for each of the ideas:
Initial investment (very rough)
Relative risks
Relative returns on investment (this will be extremely rough at the persent)
Complexity of Permits, etc.
Paperwork for Governmental grants etc.
Complexity of construction
Lead time to break ground
Time for project payback
Time for project completion
Other factors that you might consider important
Keep up the good work.
Best wishes,
PC
This week I have reflected on highest and best use of this site. I have come up with the following idea’s:
1. Given the current federal goverment administration, their goals, and the rustic site, a residential tax credit project using both income and energy housing credits. This type of development would be LEED Certified and would incorporate sound building practices such as sealed attic spaces, Geo Thermal HVAC, Solar water heaters, LED lighting, dual flush commodes, energy saving appliances, water saving fixtures, bamboo and cork flooring etc. This would serve two purposes. First this would create the first “rental” green development in this area. Second if you use the low income tax credits, low income people who never would have thought about or incorporated energy efficient items in their homes, would see the benifit first hand and spread the word “just how much money” you save in your utility bills even if the reduced carbon footprint and other factors are not completely understood.
Tax credits are given based on the density of site, type of development, and percentage of low income tenants. After they are awarded they are sold on the open market to large american corporations such as Exon for 80-90 cents on the dollar. So say you recieve 3 million in tax credits, you would recieve 2.4 million in cash to fund your project. With a development like this you could not only recieve tax credit money but grant money on the federal and local level.
2. A mixed use development with single family “Green Homes” , townhomes single story townhomes built to “universal standards”, and two small commercial buildings flanking the enterance to the property.. The highest point of the property could be leveled out into a small Point Park, incorporating a picnic area, “viewing gazebos” and a playground. Streets would be complete with light sidewalks. In order to make this economically feasable I believe you would have to purchase the two large undeveloped adjacent parcels.
3. A residential development with a twist. Once again “Green Homes” with attached home offices or studios. These offices or studios would have seperate entrances. Given that such a large portion of the population is now self employed or have a home business on the side, why not create a development with the correct zoning for lawyers, accountants, massage therapists, artists, etc. to be able to wake up, and go to work without the one hour of travel time. This would reduce the enviromental effects of the cars they drive and allow them to spend more time with their family.
Food for thought.
Comment from PC: Very appetizing indeed!