Re: Iron Stone Cohousing Proposal

[abigail weinberg]

Dear Liaison Group:

Below is an email from Ann that she asked me to forward to be read before our call tomorrow.

I am very sorry that Pesha and Bob won't be on the call, but glad that Melissa, Vanessa and Janet will be.  We will take good notes.

Here is the number: (712) 775-7000    Access Code: 778648#  (Thanks Vanessa!)

Until Tomorrow,

Abby

 Hello all --

Before we meet tomorrow, Jack and I want to give you our take on the Cohousing Proposal Andrew submitted just before Thanksgiving.

In this report on the analysis of the proposal we are starting from the position that Andrew is:

1.  A stand up guy
2.  An expert in his business and in the market
3.  A straight talker

Andrew believes the budget shows this project to be about 30% out of line w/ the market in Mt. Airy. Andrew's main concern is that the project may not appraise.  And ... even if it did appraise, future resales would be very difficult if not impossible.  He believes the loan to value ratio to be untenable.

After analyzing the budget Andrew submitted, Jack does not see that there is any outstanding number or break out cost(s) for this project design which could lower the cost 30%.  (A like-kind facility recently priced here in DC also ran around $150-175 /sf hard costs) 

I concur.

Even if you could convince Andrew that you could raise the initial money it seems clear that he doesn't believe this is a viable project for this property.

However ...the VERY good news is ...  he does remain interested in cohousing and suggests two alternatives:  renovate a warehouse or convert an existing apartment building.

What next?  Here are some possibilities.

1.  Have Onion Flats take a look at the budget Andrew submitted and check the numbers.  (Another pair of fresh eyes.)
2.  Radically alter the current design plan to the basic apartment building design that was the least expensive of the three designs covered at the workshop weekend.  (Basic does NOT mean unattractive!) Not 100% sure this would gain the 30% needed but it could be close. This would be a good question to put to Andrew.
3.  Buy the land outright from Andrew for $1.2 million (minimum!)
4.  Follow up with Andrew up on his implied interest in another, more appropriate site.

This is the place where the group needs to make deep choices.  Is it of supreme importance that the community is built at this site or is it possible to create your community at another site?  What's working in your favor is having someone w/ intimate knowledge of the Philly area who seems interested  and who might very well do a site search for you.  

Priceless.

We know you are disappointed and maybe very frustrated.  It's hard to get this kind of news.  And yet, it's also very positive.  Andrew wants to prevent a failed project AND he wants to stay involved.

We suggest that we (Jack and Ann) and Abby talk w/ Andrew ASAP.  

Let's not lose momentum.  Keep moving forward.  You will have your cohousing community -- it just may not be at this particular site but you will have it if you stay on the critical path.

It will happen -- it's just a change in venue -- not in your community.

Talk to you on Thursday at Noon via Vanessa's conference line.

Onward!

Best --

Ann Zabaldo
Takoma Village Cohousing
Washington, DC
Principal, Cohousing Collaborative, LLC
Falls Church VA
703-688-2646

[vaness32]

Thanks for this folks,

 

Very helpful.  I forgot about my swim class on Thursdays so I won't be able to join the call tomorrow.  Also, I can't make the evening meeting but look forward to attending the Sunday sessions again when dance ends this week.

 

Vanessa

 

Vanessa L. Lowe

Home: (267) 323-2787

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[JANET E BOYS]

Hey Abby,  I read Ann's memo and I am wondering why we will be paying them for a call tomorrow that I do not see as necessary.  Why don't we just speak with Andrew and maybe Onion Flats.  Do we need Ann and Jack for that?

Janet

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Janet Boys

(215) 849-4316

[Abigail Weinberg]

I think we need the call I order to be perfectly clear on the implications of this proposal before we bring it to the rest of the group.  I am assuming that a significant portion of Thursday's meeting will be spent discussing CC's analysis and want to make sure we represent it as accurately as possible.

I also think we should use the call to get clear on exactly what we can expect from Cohousing Collaborative for the remainder of out current contract with them...

(Btw - I'm not sure whether Ann is getting the working group emails.)

Abigail Weinberg ~ 734-474-6958 ~ abbywe...@alum.barnard.edu

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[JANET E BOYS]

Abby,  

While it is good to make things clear, it looks like they cannot or will not help to cut back on our pitch proposal.  I agree that came in about 30% too high for us to manage.  I just do not see what they will add at this point.  We do not have to use all 50 hours do we? 

Did you ever send Ann and Jack the things that I proposed we change? - unit size, number of units, fewer staircases, less expensive medicine cabinets, no hydraulic gate, no geothermal, - but we would need more expensive windows. While I know that decreasing the number of units does not reduce unit cost, reducing the size of the units does.  

They probably do not know how much Andrew paid for the land and almost doubling that cost and then adding 9% is too much to ask of us.  I will be asking Ann why the cost of the land should be a minimum of over $1 million!

I know that Ann is not on the working group.  That is why I only sent it to the working group.  

Warm cheers,  

Janet