Joining Clearwater Commons: Lot Purchases and Financial Background
June 8, 2009
The Clearwater Commons welcomes inquiries about purchasing a lot. As of this date, there are approximately 10 lots left out of 16.
Membership and Lot Purchase: Individuals joining at this stage become “members” or investors who purchase shares in the CCLLC (Clearwater Commons Limited Liability Company). Members may choose their lot in priority order of joining and are welcome to become part of the design and development process, although this is not required. Members gain the right to influence decisions through discussion and voting. Votes are cast on a per-capita basis on decisions such as site design, new members, and non-financial matters. Votes on financial matters are cast on a percent of membership basis. (The percent of membership is the amount of a member’s investment divided by the total investments in the LLC). Further information about the operations of the LLC is available in our Operating Agreement.
With the Snohomish County approval of our Administrative Site Plan for the development, the property now has legal lots. Once we record the lots with the Snohomish County Auditor we will then distribute each lot to individual ownership. Individuals and families will own their lots as in a condominium development. Owners will have exclusive right of use (subject to the covenants and restrictions of the CCLLC) of their own lot, and a non-exclusive right of use for the remaining common areas including creek, wetlands, and Native Growth Protection Area. (Approximately 5 acres of the property is preserved as Native Growth Protection Area.) In addition, all members will own and share a common house.
Costs: The CCLLC is working very hard to minimize all expenses. Members are developing this property at cost to form a community, not to make a typical developer’s profit. However, the expenses of building on a site that contains an endangered salmon stream and wetlands are significant. In addition, building green creates up front costs that are not typical with new construction, such as insulation, green roofs and nontoxic finishes. We intend to provide a range of green building choices so that owners can choose a package that is affordable.
The cost is approximately $130,000 to become a member, and to reserve a lot. $130,000 is the estimated cost of the lot plus site development costs. An additional fee for interest may be added at the time of purchase to cover costs incurred in carrying the property. Joining now provides the greatest choice in lot, price, and house selection.
Building Your House: Homeowners are expected to provide construction financing for their own homes. It may be possible for those not able to secure individual construction financing to work together to obtain financing through banks or other developers. We intend to design, permit and construct up to two standard unit types in order to minimize the architecture, engineering and construction costs to the community. Owners may work separately with the architects and builder to customize the internal aspects of their home, but the homeowner will incur the costs associated with changes to the standard plans.
Estimated costs for homes range from $450K - $525K. This is inclusive of the lot price, site development, and common house. These figures are subject to change once the site is permitted, house architectural plans are finalized, and we begin the formal bidding process.
Background: The CCLLC was formed in June 2006 to purchase and develop 7.4 acres into a low impact housing development. The land was purchased from the Taylor Development Company of Bellevue, which planned a 9-lot subdivision. The purchase price was $1.26 million (or $140,000 per lot). All of the wetlands delineations, survey and outline of utilities connections were completed before purchase. The property is zoned multi-residential and could permit up to 40 units.
The CCLLC redesigned the property as an open space condominium with approximately 2.5 acres of buildable area holding 16 lots. We designed our site plan to support our community and promote low impact development. The project was vested in December 2006, when the site plan was submitted to Snohomish County Department of Planning. (Being vested means that all county codes and restrictions (wetland areas, buffers, et al.) on the design will not change, even if county regulations do change during the building process.)
Development Team:
Project Manager: Tom Campbell (member)
Site Design and Architecture: Banyon Tree Design Studio – Chad and Lisa Port (members)
Civil Engineers: 2020 Engineering in Bellingham
Wetlands: Watershed Company – Kirkland
Traffic Engineers: Traffic Engineers Northwest (TENW)
Current Members: Stephanie Sarantos and Tom Campbell; Shawna Lee and Bob Freeman; Marilea and Arnold Lee; Chad and Lisa Port; Woody and Candace Pidcock; Martha Hurwitz and Eric Dolven; Joanne Lane; and Sharon and Matt Garrity.
Design Process: During the design process, LLC members explored ways to live more efficiently and make this project affordable to families. Analysis of other co-housing communities suggests that having more units and people to contribute to the community is desirable. In addition, multiple units defray the costs for any one unit and make each unit more affordable. Through many hours of creative design and discussion, we decided to design both shared wall (townhouse) and single family detached homes. Growth management principles also suggest that density in an urban area reduces sprawl. The site design includes 15 new units, the existing single family house near the creek and a common house with guest room, small spaces, and a large kitchen and multipurpose room. There are also plans for a community workshop, garden and storage area.
If you have questions about the financial projections or purchasing a lot, please call Tom Campbell at 206.919.7449.