New development Rice Lake Reserve in Hugo pushes the lot size boundaries
/The new development that will be beginning construction in 2020 in Hugo is squeezed into 51.5 acres just north of Egg Lake Rd (County 8) and east of Goodview. Its not on the corner of Egg Lake and Goodview but it is just north of the wetlands that are on the corner. There area is currently 4 parcels with two homes that will be torn down.. There will be 93 residential lots built in three phases.
Here’s a link to some video of the site: Rice Creek Reserve video view
The development is being classified a planned unit development (PUD) from the city and it looks like the developer just has to make some minor changes to their plan and they will allowed to move forward. PUD’s are neighborhood plans that allow the City to allow less stringent zoning requirements in exchange for what should be a better development for the City than would be otherwise. The density isn’t changed but there are some allowances for different lot sizes. The development will be called Rice Lake Reserve and it is one parcel to the west of the Hanifil recreational fields and where the City Public Works building is located. The builder will be M/I Homes who is well know for building villa style, one level properties, such their recent local offerings in Adelaide Landing just north of 130th St N. 75% of the homes here will be single family, two story homes and 25% will be one level villas. The price point is expected to be $350,000 to $450,000 with my guess that the villas are $350k-$400k and the homes are $400k-$450k. The development is buffered from the Diamond Point East neighborhood to the north by a 90 acre wetland parcel that is about 1,200 feet in distance away. So, the homes are a lower price point for new construction. As part of the PUD approval the homes are expected to have more architectural design than would be available to build otherwise.
By approving this PUD the City is allowing the developer greater zoning flexibility by adjusting several zoning requirements:
Minimum lot width will be 55 feet instead of 80 feet
Minimum front yard setbacks will be 20 feet instead of 30 feet.
Side yard setbacks will be 7.5 feet instead of 10 feet.
Minimum lot sizes will be closer to 7,000 sq. feet instead of 10,000 sq. feet
No park in the development, just a meeting space, in exchange for a park fee of $216,000.
Overall, I am not opposed to new development. I think it is required for growth in a City, especially a growing City like Hugo. And if buyers want to purchase these homes, that is the market speaking. I am also not opposed to PUD development. It allows for a developer to add some enhancements to a project that it wouldn’t ordinarily be able to create and still be able to make a profit. The Victor Gardens and Water’s Edge neighborhoods are good examples of walking trails and some decent parks that enhance a community. However, the only advantage that the City gets in this case is a walking trail basically through the development that I think a sidewalk would have accomplished the same thing. The Park Commission stated that they don’t feel this neighborhood needs a park because there is a park in Diamond Point East and also one at Hanifil. Well, neither one of those is within walking distance for a family so I think that forces the neighborhood to be much less walkable.
The other thing is that approving a development that will be in direct competition with many of the existing home sellers in the next couple of years doesn’t help out current home owners. New construction should be more expensive to build and sell than existing homes and if the City grants zoning changes that allows a developer to build a property cheaper than it was built in the past that is very hard for existing homes. The $350k-$450k will be in direct competition with most of the homes that will be sold in Hugo in the next few years. New construction should be set at a price that is the limit for a similar sized home that is no longer new. If a buyer wants a new home, you pay this premium. If you want to pay less than that, you can buy an existing home. When zoning changes allow for a less expensive home to be built, it puts downward pressure on existing home prices. I think that is an unintended consequence for the City, but nonetheless one that happens. The DR Horton homes over in Creekview Preserve are an example of very inexpensive new construction and that definitely competes with existing home sales. Those prices have risen over $400k so if a home is priced under $400k it theoretically shouldn’t have competition from the new construction.
So, we will see if there is a market for homes that are much closer together, with smaller lot sizes and no neighborhood place for kids to play. It seems that buyers today value the house more than the lot and this will certainly be a test of that.
Here is a link to the Planning Commission Packet. Scroll down to the information on Rice Lake Reserve that starts on page 177: Planning Commission Packet
