The Launch Report™ – Third Quarter 2020

In this quarter’s issue of The Launch Report we have dedicated the entire issue to an interview with Fred Balda and Elaine Ford of Hillwood Communities on the topic of creating community within master planned communities.  I think that you will find the information and insights provided by Mr. Balda and Ms. Ford invaluable.

We have also included the Mid-year RCLCO Real Estate Advisors and Launch Development Finance Advisors Top Selling Master Planned Communities Infrastructure Financing Mechanisms chart outlining how the top selling master planned communities are financing their infrastructure.

Best wishes to you and yours as we move into the holiday season.

Sincerely,

Carter Froelich

Another Successful Closing – Sunstone

Sunstone (Phases I & II)
City of Las Vegas, Nevada
$18,600,000
October 20, 2020

Yield: 4.16%
Maximum Term: 29.5 years
Value-to-Lien Ratio: 4.29 to 1
Average Assessment Per Unit: $11,171
Average Assessment Lien Per Assessable Acre: $80,834
Underwriter: Stifel Nicolaus

Purpose: To reimburse the developer (an affiliate of Lennar Homes, Shea Homes and Woodside Homes) for the costs of regional roadway, water and sewer improvements related to the development of the Sunstone master planned community located in Las Vegas, Nevada.

For more information or how we may assist in the financing of public improvements related to your project, contact Carter Froelich, CPA at 1-855-970-0003 ex. 4355 or email at carter@launch-dfa.com.

The Launch Report™ – Second Quarter 2020

We are happy to present the Launch Report for the second quarter of 2020.

In this issue, Randall Lewis of the Lewis Group of Companies, provides observations on the linchpins of successful master planned community development.

In addition to the Land Advisor Organization’s Markets at a Glance, the Launch Report contains articles related to:

  • Financing Infrastructure using Builder Districts™;
  • A comparison of California’s SCIP and BOLD programs;
  • Paying for Growth in Idaho; and
  • Double Barrel Texas Public Improvement District Financing.

The Launch Report – 2Q 2020

We trust that you will enjoy this quarter’s issue of the Launch Report.

Sincerely,

Carter Froelich

The Launch Report™ – First Quarter 2020

In this issue of The Launch Report™ you’ll find an article by Tripp Davenport and Robert Rivera of FMSBonds; the premier Public Improvement District (“PID”) underwriters in the state of Texas, on the advantages of using PID’s to finance public improvements.

Launch Development Finance Advisors and RCLCO Real Estate Advisors  (“RCLCO”) provide insight on how the top 15 selling  master planned communities as identified RCLCO’s year end 2019 survey are financing their infrastructure.

Additionally, you’ll find articles related to: The Success Manual for Uncertain Times; Dispelling the Myths of Arizona Community Facilities Districts; Infrastructure Costs Post Coronavirus; Recent Texas Legislative Changes, as well as information on the Boise Housing Market.

Lastly, we provide Land Advisors Organization’s snapshots of the 4Q19’s housing statistics for selected markets.

I hope that you enjoy this quarter’s issue.

Sincerely,
Carter Froelich

The Launch Report™ – Fourth Quarter 2019

In this quarter’s publication of the Launch Report™ you will find articles and information related to:
  • Markets at a Glance – Land Advisors Organization’s residential indexes for selected markets across the US.
  • Guest Corner – An article by Hal Guggolz and Josh Cameron of the Land Advisors Austin, Texas office providing insight into what is happening in Austin’s exploding residential land market.
  • RCLCO / Launch – Financing Matrix of the Top 50 Selling Master Planned Communities.
  • California Level 1 School Fee Increase
  • Proposed CFD Law Changes in Arizona
  • SB 330 – California’s Housing Crisis Act of 2019 with a detailed SB330 outline provided by John Condas of Allen Matkins.

I trust that you will enjoy this quarter’s publication!

Sincerely,

Carter Froelich
Managing Principal

The Launch Report™ – Third Quarter 2019

Before we outline what is included in this quarter’s Launch Report™, we are happy  to announce that Launch Development Finance Advisors has merged with Land Advisors Organization (www.landadvisors.com).

The combination with Land Advisors, expands Launch’s geographic reach and provides the critical component of infrastructure financing to a national organization that can truly provide an “end-to-end solution” for investors, owners and consumers of land.

In this quarter’s Launch Report our Guest Corner author is Eric Higuchi, the Principal of Qtative. Eric has a provided a great article in relation to strategic planning as it relates to land disposition.

Also in this issue you will find special district financing review related to the Top 15 selling master planned communities as reported by RCLCO (www.rclco.com).

Other articles include, the importance of Reimbursement Agreements related to SID financings in Nevada in addition to a Developer’s Continuing Disclosure Obligations.

Naturally, we have included third quarter market information for all of the markets in which Launch and Land Advisors provide services.

Sincerely,
Carter Froelich, CPA
Managing Principal

RCLCO / Launch Financing Diagnostic of Top-Selling Master Planned Communities

Launch advisors have just completed a financial diagnostic into the RCLCO Real Estate Advisor’s Midyear 2019 Top Selling Master Plan Communities Report in order to estimate the amount of net bond proceeds being generated by special district bonds for the top 15 selling master planned communities.

On average, the top 15 communities are generating net proceeds ranging between $2,900 to $135,000 per unit with an average of $27,000. Total property taxes as a percentage of home price including special district taxes is approximately 1.64%. Click on the link below to see the full report.

Midyear 2019 Top Selling Master Plan Communities Report

Should you care to discuss our findings or how special district financing may benefit your project, contact Carter Froelich at carter@launch-dfa.com

The Launch Report™ – Second Quarter 2019

In this issue of The Launch Report™ you’ll find a compelling article by Gregg Logan of RCLCO Real Estate Advisors (“RCLCO”) on how demographic trends are up-ending the housing market but simultaneously creating opportunities for developers who are in tune with this aspect of market dynamics.

Launch Development Finance Advisors provides our insights on how the Top 50 Master Planned Communities as identified in RCLCO’s mid-year 2019 survey are financing their infrastructure.

We also provide an overview of the Public Improvement District statute that was recently passed by the Utah legislature which we anticipate will be the “go to” financing vehicle for master planned developers and builders in Utah.

This issue also discusses the ramifications of recent changes to New Mexico’s Public Improvement District statute that impacts the governance of districts and the ability of developers to maintain control of the Districts through the critical financing period.

Lastly, we provide Land Advisors Organization’s snapshot of the second quarter’s housing statistics for selected markets.

Sincerely,

Carter Froelich, CPA

Managing Principal

The Launch Report – 1Q19

Launch Development Finance Advisors logo


In this quarter’s Launch Report we address the issue of reducing ever increasing infrastructure costs.

Greg Vogel, CEO of Land Advisors Organization, this issue’s guest writer, explores what he has dubbed as “the $250 (per front foot) problem”.

We have also included examples of how to offset $250 (front foot) of costs, as well as recent financing transactions and local market insights from the Land Advisor’s Organization.

Best,

Carter Froelich, CPA

Managing Principal

Marana Adopts a New CFD Policy

The Town of Marana (“Town”) adopted a new CFD policy (“Policy”) at its regular Council Meeting on June 4, 2019.

2019 Amended CFD Policy FINAL

The highlights of the Policy include:

A. Two Tiered CFD Structure

  1. Standard Infrastructure CFD – To be used for development projects that do not have large regional infrastructure items. In this instance the preferred financing source will be General Obligation Bonds.
  2. Extraordinary Public Infrastructure CFD – To be used for projects that have large regional infrastructure items.
  • a.  Extraordinary CFD’s will have the ability to use both General Obligation Bonds and Special Assessment Bonds.
  • b. Extraordinary Public Infrastructure includes: Traffic Interchanges, water reclamation facilities, water treatment campuses and similar regional infrastructure.

B. Increase in the General Obligation Bond Authorization period from 7 years to 15 years or 75% development of lots.

C. CFD Application Fee of $15,000 and $50,000 deposit.

D. Requirement for the maintenance of $100,000 in cash or letter of credit to fund operations and maintenance costs until such time as the $0.30 operations and maintenance tax exceeds $100,000 per year.

E. Requirement that Applicant fund $2 million of coverage for CFD Directors and Officers Insurance.