Bundoran Farm Interview - Pt. 2 with David Hamilton

By Brant Meyer | May 8, 2009

bundoran-meadowCan you give me a brief background of how you got involved in development, and more specifically with Bundoran Farm?

Well, I’m an architect by trade.  And when I was in school up in Boston, I ran the real estate forum at the University which got me involved in the Urban Land Institute.  I started acting as an advocate to get these two sides - Architects and real estate professionals - to start working together.  As an architect back in those days, there was almost a stigma attached to working with real estate development - now it’s fairly common to have that as part of your practice, but I’d say financial literacy is still a weak point for most design professionals.  Being an architect, it was really frustrating not having any input in the things that would define a project before I even got involved - business plan decisions, zoning, urban planning policy and comprehensive plans.  As a result, I got interested in becoming more involved in the processes that took place before it got to the architects table - and that led me into development and fostering a more integrated approach between development and design professionals.

What makes this type of integration possible now, when it wasn’t before?

A big part of it has been ULI, and people like our partners who were one of the early developers using New Urbanism.  That’s one flavor of development where a lot of developers saw that there was actually value in design.  Historically, a lot of real estate developers have looked at a project solely in terms of cost - whereas with New Urbanism, good design can be deployed in a way that actually creates value.

How did you specifically get involved with the Bundoran Farm project?

I lived in Charlottesville for about a year after I left Grad School - and met my wife here, then went on to a fairly orthodox architectural internship.  Meanwhile, a mentor of mine, who’s a board member at Qroe Development, keeps calling every year or so.  He said, “There’s this guy I know who you ought to meet”.  That was Bob Baldwin Sr., and that started my relationship with Qroe.  I eventually joined Qroe’s team and Bundoran came as part of that association.  Because of the size of this project, and its distance from our home base (Boston), we realized fairly quickly we would need someone on-site.  Having lived here before, I was the logical choice.  I’ve been here for more than two years, and love it.

We’ve talked with Bob and Joseph about the vision of preservation development and its specific market dynamics… can you give us a brief overview of how it works in terms of operations and management?

At Bundoran, we have a kind of hybrid structure.  The Property Owners’ Association, The Farm Committee, The Farm Manager and the greenbelt systems.

POA - The POA does everything normal HOA’s do.  General community governance, maintenance of common elements like roads and signs - pretty standard Homeowner Association stuff.  But it also has this other set of responsibilities that are a little peculiar to this type of project.  One of the issues is the nature of common areas.  There is no “common area” per se.  The association does not technically own much, if any, land.  Owners own their lots.  But on those lots, they can only build in a very specific area.  The rest of the lot is theirs, but has limited uses and has a deeded greenbelt to all owners in Bundoran.  Generally speaking, all property is divided among private owners.  An easement is placed over all the land except your actual building area.  The area on your lot in which you can build is like a private island in a sea of easements.  All of that easement land is managed in common, and all owners have access to any of the land under easement.  

Farm Management Committee: This is a 5 person committee with a required makeup.  One local person with agricultural experience.  That could be someone like a former farm bureau president.  One person has to have environmental science or forestry experience.  Third and Fourth members are homeowners.  We want them to have representation, but make sure we have experienced people at the same time.  The final member is from our non-profit foundation, and that person’s job is to take the long view. The committee’s purpose is to evaluate agricultural opportunities, see how current leaseholders are using land, and make recommendations to the POA Board.  In order for the Board to not take the recommendation, it would need to have a super majority.  What’s real importance to this structure is having that expertise on the committee  - you don’t want issues to come up that people are seeing for the first time. 

Farm Manager: This is the person who’s responsible for the day to day operation of the farm. He’s appointed by the Farm Committee and is an employee of the Association.  Part of the draw of Bundoran is offering a rural/farm experience without being bogged down with the day to day management of such a large piece of land.

To whom are those easements granted?

Let me give you an example.  Let’s take Lot X.  Let’s say it’s 27 acres.   Read More »

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Bundoran Farm Interview - pt. 1 - Joseph Barnes

By Brant Meyer | May 6, 2009

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If you follow development, you need to know about Bundoran Farm.  Here’s part one of two interviews I did with members of their development team.  This one is with Joseph Barnes, Development Director for Celebration Associates.  Enjoy!

Joe, can you give us a little bit of your background and how got involved with Bundoran Farm and Qroe Development?

I began in architecture, getting my undergraduate at UVA and moving on to get my masters at Princeton.  After that I practiced in New York for about four years but eventually got tired of just drawing pretty pictures for my clients all day.  I thought that if I could combine an architect’s sensibility with a businessman’s mentality I could have a better chance on creating places that had a real positive impact on the built environment. That brought me back to Charlottesville to get my MBA.  Once I got out of Darden, I started working for Disney Development Company on the Town of Celebration. That started my relationship with Charles Adams and Don Killoren, the two founding principals of Celebration Associates, who headed up the community development efforts for The Walt Disney Company.  After a few years away from Celebration, Charles offered me an opportunity to join Celebration Associates and the chance to move back to Charlottesville.  I was back about two months when Bob Baldwin Sr. (of Qroe Development) called about a project they had in the area that was a little bigger than they were used to handling alone.  That led to a joint venture and was the beginning of my association with Bundoran Farm.

What’s your specific role in the project?

I’m the Development Director.  I deal with things from community governance, marketing, design, and the overall community outreach.

Were you familiar with Qroe’s model of preservation development?

I was aware with preservation development generally but not their specific approach.  So, the first thing I did was a lot of research.  And once they started laying out their approach, it made a lot of sense.  Some of the same principles of preservation and resource mapping they were using were identical to the ones we were using at the Homestead Preserve.  With preservation development, it’s a different first step.  Rather than going in and saying, “How many houses can we put on this piece of land?” you say, “What do we need to preserve and protect?”

In terms of market specifics, what differentiates customers who choose the preservation development model vs. more traditional development?

Well, the first thing is location.  You have to be in a place where people value preservation.  And honestly, that’s not everywhere.  The thing that’s great about Charlottesville/Albemarle is people move here because of the desire for the natural and preserved landscapes.  So we knew there were people here who would value what we were offering.  Many of the people that move here can live anywhere in the world.  And they’re looking for a place that has the qualities of natural beauty, diverse population, cultural opportunities and the small town feel.

How does the rural character of Bundoran Farm differentiate itself from going and buying 50 acres in the country?

Well, there are a lot of people that want to live in the country.  The daunting thing is two parts: What’s going to happen to the land around you and who’s going to maintain it?  On a much larger scale, it’s a bit like having a swimming pool in your backyard.  I’d love to have it there to look at and enjoy, Read More »

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a 14 acre chance to get it right…

By Brant Meyer | March 11, 2009

I know this one will be a long time coming but, the Daily Progress reports:,

“Martha Jefferson Hospital officials are entering an exclusive negotiating agreement with a North Carolina-based developer to shape the future of the hospital’s 14-acre site, a prime tract in downtown Charlottesville.”

The hospital should be completely moved to its Pantops location by 2012, which leaves a big chunk of prime real estate for redevelopment in the heart of the city.  For a blog attempting to cover development, I don’t think there are many projects that could have a bigger impact.  The ramifications affect the city tax base, number of residents, increased commercial activity and as the paper teases…. a grocery store?  I’m sure there are a few urban planners out there that could run with the impact of a grocery store in a sidewalk lined walkable area.

With all the things to consider, and the project still in its formative stage, here’s my thought:  What immediate question comes to mind?

I have to confess what mine was, “What’s it going to look like?”.  With all of my exposure to development, issues as a city resident, and general seeker of angles on development - my base reaction is ” I wonder what it will look like…”.  I was talking to a developer from the northeast and he was surprised at how that seems to be the first question that people ask down here.  Evidently, that’s not the norm everywhere.  Intellectually, I realize that it’s the least important question.  So what’s the most important?

What comes to your mind when you think of the Martha Jefferson project?  What do you think’s the most important issue?  Are both answers the same?

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In the works…

By Brant Meyer | February 9, 2009

Sometimes real life and blogging clash and as a result, blogging loses.  Hence, my brief absence from cyberspace.  The hiatus is over and here’s a list of upcoming posts:

  • Preservation Development - 3 part interview with the developers behind Bundoran Farm
  • Performance Bonds - brief tutorial of the who, what, when, where and how
  • Lenders due diligence - when the numbers add up but the project doesn’t
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The House of Cards

By Brant Meyer | January 26, 2009

It looks like the previous post couldn’t have been more timely.  Rather than speculating on all the “what if’s?” we can just watch it all unfold in real time.  From the Daily Progress:

A lawyer for the Four Seasons at Charlottesville Community Association Inc. said the group filed a lawsuit Jan. 14 in Greene County Circuit Court against M&T Trust Co., North Charlottesville Development LLC and K. Hovnanian’s Four Seasons at Charlottesville LLC.

Mark A. Moorstein, who is representing the community association, said the group wants to be sure what will happen to the association and common areas under the ownership of M&T.

I’ll tell you what is going to happen - whatever can happen, that will allow the bank to get this loss off its books.

Posted in HOA's, Legal | Tagged , , , | 3 Comments

Unfinished Business - What happens when a developer bankrupts? Interview with Cheri Lewis

By Brant Meyer | January 19, 2009

unfinished-development

With all the news of builders going out of business and questions of what happens to those left behind - I wondered how this translated to development.  What if not just your homebuilder, but the developer of your community goes out of business?  What then?  I sat down with Cheri Lewis: a great local attorney and one of our current City Planning Commissioners.  Here’s what she had to say.

Can you give us a background of the specialty of your practice and how you came to be in that field?

I  describe my practice as real estate and business planning and transactions. I like to help clients who want to buy a business or bring in investors, or sell a business,  and take them from the planning stages to operational stages. I’ve been in Charlottesville since 1991.  Right out of law school, I actually started working for a real estate development firm who subsequently went under in 1990, during the last real estate market “trough.”  Those who haven’t experienced this cycle before are in for a “good show.”  When I arrived in Charlottesville,  I worked for a local law firm for three years and then started The Closing Company. I ran that for 11 years, sold it to LandAmerica, then a Fortune 500 company and started my own practice three years ago.

So lets get right to it, What happens when a bank forecloses project wide on developer financing?

Two things can happen.  A lender can foreclose and take a deed in lieu, which means they’re not only taking over the debt but also the risk.  They’re also taking on the equity, even if it’s negative equity.  The problem with this option is that banks don’t want to be developers.  If it’s a huge project with a long turnaround time, they may put their people on the board of the HOA.  They might have some type of arrangement where they keep the developer on as well.  But I doubt the bank would want to be directly involved for a protracted period of time.  Not their bailiwick

The second option Read More »

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HOA primer - Developer do’s and dont’s

By Brant Meyer | January 16, 2009

Give me 5 people who’ve lived in a HOA and I’ll show you 4 who’ve had a horrible experience.  Without getting into aspects of human psychology and group dynamics - most of the problems spring from lots of little mistakes that compound to make huge problems down the road.  Here are 11 things you can do to equip your project for success. siteplan

  1. Don’t set dues too low - You can always lower them, but most HOA documents cap the maximum increase per year (usually around 10%).  If you set them too low in the beginning, owners can spend years trying to catch up in 10% increments.
  2. Have budget reflect all expenses - Don’t wait until you’re phased out of the project to add everything to the budget.  Example: Condo developer keeps dues artificially low by paying building insurance out of pocket and leaving it off the budget.  When he leaves, the owners are saddled with a $50,000 annual increase in operating expenses.  It’s fine to pay for stuff out of pocket - but list it on the budget.  At least then you get credit for footing the bill.
  3. Hire professional management FROM THE BEGINNING - Prevention is much easier than remediation.  Do yourself a favor and get out of the way when it comes to Community management.  Focus on developing and let management manage.  There is already an inherent conflict of interest with developer controlled communities - give the owners and yourself a healthy degree of seperation
  4. Use “Secret Shoppers” for your Sales Team - While I managed communities - the #1 cause of complaints arose from a homeowner having false expectations because of what a Realtor promised.  If your townhouse backs up to a sediment pond, it’s not a “lake view”.  “My Realtor said dues were $100 per year, not per month!” Too bad - you’re still on the hook.  Send in some prospective buyers and make sure your sales team are echoing the same vision as the development team.  Mis-communication here, can lead to frustration, anger and lawsuits.
  5. Consider your amenities vs. your scale - here’s a previous post on this one
  6. Give out a one page “summary sheet” with your disclosure packet - Nobody is going to read a 200 page binder full of legalise.  I could barely stand it when it was my job to read them.  Do everybody a favor and attach a one page summary of the most pertinent HOA information.  Among other things, this should include: the dues rate, requisite capital contributions, most common covenants (i.e. not pets off leash or cars on cinder blocks) and contact information for developer, builder and management company.  For extra credit - add a simple flow chart showing responsibilities for each of those entities
  7. Draft HOA documents from scratch - DO NOT CUT AND PASTE! - I had a really fun conversation with an owner who bought a condo unit unseen.  They called to ask about the pool operations.  Problem was, there wasn’t a pool.  “Well, there’s 3 pages in my disclosure packet talking about the pool”.  It takes some balls to cut and paste your HOA doc’s from another development.  And it takes a real moron to not even proof read it.  Every community is different and  it’s documents should be as well.
  8. Use an experienced real estate lawyer AND management company when drafting the documents - You wouldn’t hire a tax attorney to represent you in a criminal case, so don’t use the family lawyer to draft your HOA documents.  Also, realize that lawyers write documents from the perspective of what’s defensible in front of a judge - not from what’s practical to manage on a daily basis.  Involve your management company in the process of drafting documents.  Otherwise, you’ll end up with a highly defensible, but completely impractical set of documents.
  9. Put your customers to work - Why?  You need them to invest in the community beyond their property lines.  The biggest complainers are the ones that view the development as their lot and everything else positively or negatively affecting it.  By asking an owner not only to participate, but be responsible for certain aspects of community development - you are forcing them to expand their ownership to the entire community.  delbocavista
  10. Mark the boundaries - plat the development in a way that makes sense.  If you look at many of our state lines, they follow easy to identify natural characteristics.  Rivers, mountains, canyons.  In a development, there should be readily identifiable divisions between private and common property.  Good markers are sidewalks, trails, curbing and landscaping.  If you bisect an acre of grass with a private/common property line - how do we know where it begins and ends?  The result - half mowed lawns, dogs being walked on private property, and liability questions
  11. Set the tone - It’s not what you say but how you say it.  As the developer, you’re the parents and the owners are the kids.  You provide the leadership, tone and expectations.  If you come to meetings unorganized and misinformed - owners will act out.  If you act civilly and respond appropriately - so will the owners.  You have to make clear what type of behavior is unacceptable.  Don’t believe me - go to an HOA meeting and then go to a City Council meeting.  Big difference.  The difference is that you know the format at the council meeting.  You know what is acceptable and you know what is unacceptable.  And they’ll enforce it if you cross the line.  I’m not saying you need to have a 3 minute timer for public comment - but you need to set the tone early, stick to it and enforce it.
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Harnessing the Data

By Brant Meyer | January 15, 2009

If you’re developing communities, you’re in the business of creating value.  But so are your competitors.  How do you create more value than they do?

Couple of ways.  The most obvious is price.  Providing the same value for less money.  This is a tough battle to win and is most effective on large scales.  This would be your NVR/Ryan Homes approach.  They know that it takes exactly 287 pieces of sheetrock for Model X, and if the subcontractor uses anymore, he ends up paying for it.

Another avenue is innovation.  This has a high upside but it’s riskier because there is no precedent.  But, being the first mover means you get to set the agenda.

The area where you could make a real impact - is harnessing data.  The world is incredibly connected.  The information you need is probably already floating around in cyberspace.  You need to be able to aggregate it, interpret it and most importantly: apply it to your business.  For homebuilders - there’s a great resource at www.guildquality.com.  I was referred to the site by Joe Barnes, the development manager for Bundoran Farm (subject of a future post).  Guild Quality is a “Customer satisfaction surveying and reporting for quality-minded building and real estate professionals”.  They’re in the business of collecting data and giving you the tools to interpret it.  If you go to the site, there are two builders from the Charlottesville area using them - Gaffney Homes and Upstream Construction.  Where are the rest of the builders connecting with their customers?  How about our developers?

What data are you collecting?  In todays world it’s not just a competitive advantage - it’s a prerequisite.

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What is the Urban Land Institute?

By Brant Meyer | January 14, 2009

uli_logo4Before I started this blog, I did a lot of research looking for organizations where development professionals network, share ideas and further best practices.  The only thing I found was the Urban Land Institute.  According to it’s mission statement:  “The mission of the Urban Land Institute is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide.”

What struck me was that I had never heard ULI mentioned by any of the developers I’ve worked with in the past.  Why?  If ULI purports to be the leader in responsible land use, then why weren’t Charlottesville Developers involved?  I wanted to find out.

Enter Tim Davey.  I had the chance to meet Tim last year at ULI Richmond’s Christmas event.  As of January 1, he’s the Chairman of the Richmond District Council for ULI.  Here’s what he had to say:

Tim, what exactly is ULI?

It’s a national and now international organization founded, run and joined by people that care about responsible land use.  It has grown into a formidable resource focused on educating people, rather than advocating or lobbying for anything.  Though it has a national focus on educating about land use, it has started district councils to have more of an impact on a local level.

In terms of membership, what types of professionals join the organization?

What’s fascinating about ULI, is that unlike most other real estate focused organizations, the people who are members of ULI are actually the ones developing properties or owning the properties that are being developed.  In addition to some of the best developers, we also draw some of the most insightful public sector people who are working to solve issues relating to transit oriented development, redevelopment and brownfield development.  I was in San Francisco for a national ULI meeting and sitting next to me was a Mayor of a town in California.  He was there trying to learn just as much as I was.

Can you give us a background of your work experience and how you personally got involved in ULI?

I’m a civil engineer with Timmons Group.  I’ve worked in our Read More »

Posted in Interviews, Professional Development, ULI - Urban Land Institute | Tagged , , , , , | 2 Comments

The World of “Should”

By Brant Meyer | January 13, 2009

“Should” has nothing to do with what is or what will be.  And as a developer, the “is” is the only thing you can control.  It’s the only thing to which you can respond.  Time in + Should = Zero value out.  Time in + Is = value for all.

  • Do you say “should” to your vendors?  “He shouldn’t have done that” produces value only for yourself.  It’s descriptive but not instructive.
  • Do you say “should” to your employees?  “You should be able to handle it”.  Are you telling me that you believe in me or that I’m incompetent if I fail?
  • Do you say “should” to your investors?  “That shouldn’t be a problem” would be better served by saying, “It won’t be a problem” or “I have no idea if it will be a problem”
  • Do you say “should” to your customers?  “It should be completed by the end of the week”  and if it isn’t complete will you follow up with “It should’ve been”.

Stop using the word “should” for a day.  See what happens.  Look. Listen. Watch.  Your relationships should… make that, will change.

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