Building Industry Association
of San Diego

BIA San Diego and BIA Riverside are combining forces to host a “Meet the Builder Event” on July 16th, from 4:30 PM – 7:30 PM at Ponte Winery in Temecula.  This joint event is benefitting from a huge curiosity factor.  The two BIA Association never before held an event.  The registration shows we are going to sell out.  Over 38 building and development companies are participating.  Don’t miss out.  I hope to see you there!

To register:

http://www.biasandiego.org/eventsupcoming.php?key=60

Thank you to all the volunteers who showed up yesterday afternoon at the city of San Diego Land Use and Housing Committee in support of the adoption of two critical agenda items that will help stimulate the industry.  The J.O.I.N. Campaign is pleased to report that by a vote of 3-1, Council Members Todd Gloria, Tony Young and Kevin Faulconer voted in support to defer impact fees and extend the life of a host of entitlement permits. 

The entire City Council will next vote on the same jumpstart measures, presumably next month.  You will be notified of the date.  Clearing the Land Use and Housing Committee was a critical step toward getting our largest city to finally offer the industry a chance to recover.

We owe our success in no small part to the turn out of nearly 60 industry representatives. Also because of you, a last-minute attempt by Councilmember Sheri Lightner to delay action on the measures was thwarted. Councilmember Lightner ultimately voted against both measures. 

While this victory yesterday is a critical step, we will need at least one hundred volunteers when the matter goes before the full city council next month.  We fully expect that the no-growth lobby will come out in full force.  This is BIA’s number one issue.  If we win at city hall in San Diego, we will gain more relief elsewhere in the region.  We cannot stress enough the importance of your support when we call on you for action.

Also, we are equally pleased to announce that yesterday evening, the Oceanside City Council voted in support of extending the life of a series of permit and mapped entitlements for another year.  The council also accepted amendments by BIA that will streamline the extension process.  Here too, the J.O.I.N. Campaign and the volunteers who showed up in support made the difference.

J.O.I.N. owes its success to the dedicated industry volunteers who have rallied together in defense of the building industry.  Thank you again for answering the call.

BIA member since 1968, Aaron Kolkey, of Cameo Development has recently undergone heart surgery, and is home recovering.  He was BIA President in 1984 and inducted into our Hall of Fame in 1997.  He and his family have been a member of this association since 1957 under their original company name of DASS Construction.
Kolkey has been a champion of our industry and an ardent supporter of the association.  We wish him a speedy recovery!

Since water is a critical issue for the building industry, CEO Borre Winckel made sure the industry’s views on water issues were well understood during a recent water summit at the County Water Authority.  He made it very clear that your industry has tirelessly supported both energy and water conservation for new construction and reinforced that we will continue to do so.

Winckel squarely addressed public concerns about future water supplies for new development while the existing community is forced to conserve.  He pointed out how new development is not water thirsty (new construction accounts for less than ½ of one percent of total water demand every year, and that whether new development occurs or not, as population growth continues, water usage will grow unless we implement water conservation across the board. 

“The argument that new construction should be halted to save water is just a red herring designed to distract us all from the real issue that water is critical to our economic future.  We all have a responsibility, existing and new users alike, to use it wisely,” said Winckel.

Other key points delivered to educate decision makers on your industry’s pro-active water conservation behavior included:

We actively supported and promote new drought tolerant landscape standards for the entire state, reducing outdoor water usage by 30 to 50% over current practices.

We support more aggressive outdoor water conservation efforts, desalination, water recycling and water reuse, including “indirect potable reuse.

Under the most severe water shortage restrictions, we agree to a voluntary water offset program for new development.

We supported code requirements for an additional 20% reduction in indoor water use by 2011.

Winckel stressed that water policies moving forward should be mutually beneficial, and cautioned if they “make it punitive, an industry that already lost 30,000 employees will hemorrhage to the point of no return.”  READ COMPLETE REMARKS

Artisan Design Group won the Gold Award at The Nationals 2009 for “Best Model between $ 650,000-999,000″ for the SkyVue Loft model.  Located at the Smart Corner Residential Tower, developed by CJUF Smart Corner, LLC – this SmartLoft design combines the use of green products and maximizez square footage to allow for the space to adapt to potential homeowners needs.  Featuring a State-of-the-art kitchen and bath, custom cabinetry and divider systems–this home Is form meets function, offering nearly endless options to choose from.  http://www.artisandesigngroup.net/SkyVueLoft.html

Kurt Bruskotter

Black Mountain Ranch, LLC’s Kurt Bruskotter was recently appointed to the position of Assistant Vice President at Black Mountain LLC. The licensed landscape architect has played a critical role in the development of Del Sur since 2005 and has recently achieved LEED Accredited Professional certification from the United States Green Building Council. He is responsible for implementing the design, construction, operations and maintenance solutions necessary for ongoing sustainability at Del Sur.

“Kurt has been key to many of the LEED-rated processes already in place and benefiting homeowners at Del Sur, including water conservation efforts and drought-resistant landscaping,” said Maas. Bruskotter was also lead landscape architect for the Del Sur Ranch House, which achieved LEED Platinum designation from USGBC.

Cordova by Brookfield

Brookfield Homes announced a “a flurry of new home sales” in the last three weeks of April.  14 new home sales were recorded at five San Diego and Riverside County neighborhoods.

“The sales pace is increasing as a result of federal and state tax credits that can give taxpayers as much as $18,000 in credits,” said Lora Heramb, vice president of sales and marketing for Brookfield Homes San Diego/Riverside division. “For those who qualify, this is a unique opportunity, especially when combined with historically low interest rates.”

CLB Partners, Inc. announced that 1Mission, a mixed-use residential/retail project that blends a historic block in Mission Hills with a new five-story residential mid-rise, received the 2009 “Architectural Restoration” Award from the City of San Diego’s Historical Resources Board. The Architectural Restoration award is the fourth major award for the project, which was originally known as Paseo de Mission Hills. It has already earned tributes from San Diego Architectural Foundation, SOHO (Save Our Heritage Organization), and the Urban Land Institute.

Del Sur announced new phases underway by Davidson Communities and Shea Homes.  Framing is under way for eight single-family detached homes at Kensington at Del Sur, while Phases 3, 4 and 5 construction is moving briskly at the attached courtyard living community at Mandolin at Del Sur by Shea Homes.

At the new-home neighborhood Kensington at Del Sur, final phase construction is now under way, with expected completion at the end of summer, according to the builder, Davidson Communities. A selection of final phase homes has been released for sale. The stylish homes at Kensington will be priced from the mid $700,000s.

Kensington at Del Sur homes range from approximately 2,660 to 3,156 square feet and offer three to four bedrooms plus bonus room. Adding to the incentive to buy a new home now are state and federal tax credits for up to $18,000 for eligible new-home buyers. For more information, call 858-756-2208 or visit www.DavidsonCommunities.com.

With prices starting in the high $400,000s, Mandolin by Shea Homes is the only planned condominium community at Del Sur. The five floor plans span 1,643 to 2,333 square feet and showcase the best qualities of attached-home living, including private rear yards, gourmet kitchens with islands, a fireplace, and balcony or patio. For information, call 858-832-1368 or visit www.sheahomes.com.

Front Row: Kim Hardtke, Joanmarie Ehman, Erin Skitt, Erika Kruse, Jenna Langley, Lindsay Brown, Kevin Nolen, Jolanta Campion, Lesley Kolb

Grubb & Ellis|BRE Commercial

It also announced that Chris Hobson, Dave Odmark, Barry Hendler, Rick Reeder, Mike Erwin, Frank Wright, Andy La Dow and Tim Winslow of Grubb & Ellis|BRE Commercial were recently honored among the Company’s top producers at Grubb & Ellis’ Circle of Excellence Awards.
 
Grubb & Ellis|BRE Commercial brokers ranked among the most successful brokers in the nation, with Hobson being named the top affiliate broker companywide and Odmark taking the number two spot.  Hendler was recognized as the number five affiliate broker companywide.
 
Hawthorne Caterpillar® is offering large incentives to purchase used equipment through a 30 working-day Dutch Auction.  In a Dutch Auction, the price of the items are decreased a fixed amount daily.  Additionally, Hawthorne has teamed up with Cat® AccessAccount to offer customers gift certificates for those who act early. 

According to Steve Sager, Vice President of Sales and Rental, “Hawthorne is embracing the One-Team, One Goal” mentality and partnering with our customers to help them through these difficult times in preparation of the jobs that are coming.  Hawthorne’s employees are committed to provide exceptional customer service and this is a fun, out-of-the-box approach to provide value.  For this program, we provide warranties on select items, special financing on approved credit, and free delivery anywhere in San Diego County.” 

The auction began on May 18, with an on-line preview period available beginning Monday, May 11 at http://auction.hawthornecat.com. The auction will terminate at close of business day on Friday, June 26.  Caterpillar® and allied products will be made available and all items will be sold on a first-come, first served basis.  For more information, please contact Craig Baker, Hawthorne’s Assistant Used Equipment Manager at 858-674-7131 or at cbaker@hawthornecat.com.  Interested parties can place their bid by via website http://auction.hawthornecat.com or via fax at 858-674-7170. 

Landscape Development Inc. announced that Richard De Palma, ASLA, Principal of the firm’s Northern Design Division, and Tiffany Leo, CISEC, Erosion Control Project Manager, have achieved LEED Accreditation. Landscape Development is now offering LEED consultation to clients and continues to be on the forefront of energy efficient design.

Additional Landscape Development staff is gearing up for the LEED exam. After 12 weeks of extensive training and studying as a team, eight more managers are set to take the exam in June. By certifying multiple managers in LEED training, Landscape Development, Inc. is further able to provide our clients with the LEED expertise and knowledge in the green industry they need.

Landscape Development, Inc. is a premier, full service company, offering design build, construction, maintenance, erosion control and now LEED consultation and services.

New Pointe Communities, which helped many fire survivors rebuild their homes, announced that it  will donate $1,000 to RB United for every additional home he rebuilds for fire survivors.  Previously known as the Rancho Bernardo United Coalition, RB United is a long-term recovery center for fire affected areas that assists fire-impacted San Diego families and communities. 

“As a long-time San Diegan and North County resident, the devastation reeked by the recent fires hit very close to home for me, in more ways than one,” said Sandstrom. “I have the good fortune to have a skill set that is very valuable to people who have lost their homes to fires, and I feel like it’s the right thing to do to donate a portion of any profit I earn going forward to RB United.”

Pacific Business Centers (PBC), the leading provider of on-demand offices announced that it has signed an eleven-year lease agreement with Newport National Corporation to open a brand new office business center this summer at Ventana Real, the most prestigious Class A office building development in Carlsbad.  Ventana Real is a three building, Class A office park located at 2173, 2175 and 2177 Salk Ave. in Carlsbad. Upon completion of the final building, scheduled for October 2009, it will total 218,530 square feet.

Richard Marshall Fine Flooring, a leading maker of hand-crafted hardwood flooring, was selected as the wood flooring of choice for Hermosa Pointe Homes, a groundbreaking green point rated townhome project in Hermosa Beach.

Hermosa Pointe Homes is using the nationally accredited “Build it Green, Green Point” rating system to develop this project where a number of key building materials must meet strict green rated criteria to earn “green points.” 

Shea Homes’ April and May sales reports indicate higher numbers of qualified buyers are making their way to new home neighborhoods.  Forty eight homes sold in the first two months of the second quarter, and June appears to be starting strong as well.

“We had eight sales the first week of June, and the number of visitors to the model homes was up by 17 percent,” according to Vanessa Linn, vice president of sales and marketing for Shea Homes. “We haven not seen a jump like this all quarter long.  ”Among San Diego’s biggest builders, Shea Homes (www.SheaHomes.com) has 114 net sales and 52 closings year-to-date. According to Linn, current low interest rates and the incentives of federal and state tax credits have inspired action in prospective buyers.

San Diego has limited land for housing. The federal government has tightened the rules on lending.  Credit markets are tighter then ever. The government continues to increase its regulatory stranglehold on new development. We have high inventory (although it is decreasing), many builders have left San Diego or are no longer in business, and home prices have plummeted.  Unemployment levels are skyrocketing.

Some may think this is the worst situation imaginable for home builders and all associated trades, vendors, suppliers, etc.  Yet, some, especially those who have been here before, view it as just another day at the office and look to the future.  So in what direction is San Diego’s housing future headed? Many say upward, as in vertical.   READ MORE

The City of San Diego Land Use and Housing Committee will take up multiple industry issues at its June 17, 2009 hearing.  The committee will consider extending the life of tentative maps , development permits and construction permits for an additional year. The extensions are necessary to keep projects viable during the economic downturn rather than have them expire and force projects to start the process all over again. This would give new life to maps and permits set to expire in July and provide much needed breathing room while Sacramento continues to process AB 333 which would grant an additional two year map extension. 

The committee will then take up a proposed increase in project processing fees for its Development Services Department. It’s been 5 years since DSD conducted a comprehensive fee study and the result will be increases in most categories.  We’re crunching the numbers right now, but the industry is urging cities not to raise fees in the midst of the biggest recession since the great depression.   Mark your calendar for 2:00 p.m. on Wednesday June 17th and join your BIA colleagues in the debate at city hall.  This is another JOIN Campaign related effort.  

Below are some examples of the fee changes in the City of San Diego.

Single Family-Production Current:  $1,632,  Proposed: $2,410

Industrial-50,000 sq.ft. Current:  $16,635,  Proposed: $30,771

Office-50,000 sq.ft. Current:  $35,983,  Proposed: $35,338

Retail-100,000 sq.ft. Current: $49,444,  Proposed: $69,425