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Home My WebLink AboutItem #07 Ocoee Crown Point PUD Letter of Intent - Taylor Morrison HomesS florido AGENDA ITEM COVER SHEET Contact Name: Contact Number: Meeting Date: April 1, 2014 Item # 1 Reviewed By Craig Shadrix Department Director: (407) 905 -3111 City Manager: Subject: Ocoee Crown Point PUD Letter of Intent — Taylor Morrison Homes ISSUE: Should the Honorable Mayor and City Commission continue forward with Taylor Morrison contract to purchase part of the Crown Point PUD? BACKGROUND: At the December 17, 2013, city commission meeting, staff presented the City Commission with the City Manager's top three respondents: i) Taylor Morrison, ii) Frontdoor Communities, and iii) Meritage Homes for further interviews with staff. The Commission also added Elevation Development as an alternate if one of the respondents dropped out. The City Manager and his designees conducted interviews with the top respondents. After the interviews, Frontdoor Communities withdrew their name from consideration and a subsequent interview with Elevation Development took place. The City Commission directed staff to proceed forward with Taylor Morrison Homes as the number one selected proposal after seeing the presentation. DISCUSSION Since that time, staff has met several times with representatives of Taylor Morrison Homes and several issues have become apparent. First, the housing market has slowed. Second, this lull in the housing market has apparently affected the type of product that Taylor Morrison forecasts as economically feasible given their purchase offer ($9.9 million). During a recent meeting they presented product for the 50 foot lots that did not come close to meeting the requirements of the solicitation. Staff identified this as a "threshold issue" and asked that they go back and try to make the product come as close as possible to meeting the solicitation requests (elevated front porch, recessed garage, etc.). During the most recent meeting, Taylor Morrison provided sketches (attached) that met the requirements, but informed staff that the new designs would only be feasible if the City discounted lots at a rate of an additional $20,000 per lot. RECOMMENDATIONS: Staff recommends the Honorable Mayor and City Commission end negotiations with Taylor Morrison Homes without prejudice and solicits letters of intent at such time as the market commands better prices and products. Attachments: 1. Standard Purchase and Sales Agreement, survey and copy of binder deposit from Mr. Mitchell. 2. Offer letter and copy of deposit check from Mr. Somwaru. Financial Impact: The city would gain from the sale of the property, plus the city would gain yearly tax revenue from Mr. Somwaru's business; the property is located in the City's CRA. Type of Item: (please mark with an x') Public Hearing For Clerk's Dept Use: Ordinance First Reading Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda X Commission Approval X Discussion & Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney o d N/A Reviewed by Finance Dept. N/A Reviewed by () N/A 2 Taylor to yIor 9 6 9 6 Wood row nn o r r i s o n ^1 Communities Homers lnaplrad by You Monorch • Introductions • Maurice Johnson - North Florida Division President • Greg Clark - VP of Land • Who is Taylor Morrison? • Central Florida Master Planned Communities • Our Vision for Crown Pointe • The Taylor Morrison Difference • Our Crown Pointe Offer • Questions 2 TaylorMorrison • Born out of the 2007 merger of Morrison Homes (founded 1905) and Taylor Woodrow (founded 1921) • 2012 National Builder of the Year (Builder Magazine) • April 2013 - Largest IPO in the homebuilding industry's history • Strong Balance Sheet • $2.7 billion market capitalization • $420 million cash on hand (as of 613012013) • $680 million total equity • Closely held by Oaktree Capital ($80B capital under management) and Texas Pacific Group ($56B) • Currently, 15 active communities in the Orlando MSA • Committed partner to our municipalities, customers, employees, and vendors TaylorMorrison 9 T8v es Dar. Lake r W build where_y want to live P and Perk a 4 TaylorMorrison _ .... �7 :% Highland Ranch (Clermont) 5 TaylorMorrison Overlook at Hamlin (Horizon West) �+les► fr�lrl+r�'1"Wrld 4 i' r' r t ��'�'�'` • 5389f4t3S'i�' �srrytAdi.irt- nA...r��:.,er LEGEND NOD ld. `A. Ft LO Q am bv: so FT lam L2 ACAS IAte" Uyn 1 Am WROM Lon asxn Steeple Chase (Heathrow) ob."& AS A► Woodland Park (Hunter's Creek) TaylorMorrison Taylor Morrison relies on on -going analysis to monitor trends and opportunities: • We have identified Ocoee as a high - growth area in Central Florida • Location provides excellent access to work via SR 429 • Good schools • Close proximity to West Orange Trail and other public recreation sites • Close proximity to shopping, dining, and health services TaylorMorrison What Taylor Morrison envisions for the Crown Pointe site: TaylorMorrison What Taylor Morrison envisions for the Crown Pointe site: • Master - planned community • Crown jewel of Ocoee with name recognition throughout Central Florida • Selection of Taylor Morrison's best selling and award winning floor plans • Natural amenities of the site: West Orange Trail and views of Lake Apopka • Community design that will encourage walking and outdoor play • Community amenities: pool, cabana, playgrounds, passive parks 0 TaylorMorrison Crown Pointe - A Unique Community Taylor Morrison Creativity x r fns - ' � , WC,..� , i i r 6 Crown Pointe - A Unique Community 4f Typical Taylor Morrison Buyer. • Recognizes quality construction and design • Appreciates a more prestigious streetscape • Desires to be closer to work, shopping, and leisure • Values safety and excellent schools • Expects community amenities and services Crown Pointe Buyer will: • Be willing to pay for quality construction and design • Appreciate a sense of community • Prefer the convenient location • Place a strong value on quality of life CROWN POINTE BUYERS ARE TYPICAL TAYLOR MORRISON BUYERS! 12 TaylorMorrison Proposed Average Selling Prices: 50's (SFT: 1,700- 2,200): From $240,000 to $290,000 60's (SFT: 2,400- 2,900): From $280,000 to $320,000 70's (SFT: 3,200 - 5,000): From $350,000 to $450,000 13 TaylorMorrison FIRST FLOOR 14 TaylorMorrison 15 TaylorMorrison 7 ,900, o o ,6 TaylorMorrison FIRST FLOOR 17 OFEMOM 4 M 1 1* TL," 3 IS VAT W 13 03 3 AM ok TaylorMorrison A* -"W Monroe 0 • Purchase Price - $9 000 • Deposit — 10% • Inspection Period — 60 Days • Closing Date — Earlier of Final Engineering Permit approval or December 15, 2014 • Architectural Standards — To be finalized during contract phase. However, representative plans are included in this presentation. W TaylorMorrison Questions and Answers 20 TaylorMorrison a J c Streetscape taylor 40' Product morrison . -i� Streetscape a 40' Product taylor mornson L �)b :4 BSB