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HomeMy WebLinkAboutZBA Minutes 1989-02-28 FILED TOWN OF ITHACA DP Date . ? Clerk* -. TOWN OF ITHACA ZONING BOARD OF APPEALS FEBRUARY 28 , 1989 An adjourned meeting of the Town of Ithaca Zoning Board of Appeals was held on February 28 , 1989 in the Ithaca Town Hall , 126 East Seneca Street , Ithaca , New York , at 12 : 00 noon . PRESENT : Chairman Henry Aron , Edward Austen , Joan Reuning , Eva Hoffmann , John C . Barney ( Town Attorney ) , Andrew Frost ( Building Inspector / Zoning Enforcement officer ) . ALSO PRESENT : Edwin Hallberg , David C . Auble , Daniel Forbes . Chairman Aron declared the meeting duly opened at 12 : 20 p . m . The only item on the agenda was as follows : ADJOURNED APPEAL ( FROM FEBRUARY 8 AND FEBRUARY 27 , 1989 ) OF DEER RUN INVESTORS L . P . , APPELLANTS , EDWIN A . HALLBERG , AGENT , REQUESTING A VARIANCE , UNDER SECTION 9 OF TOWN OF ITHACA LOCAL LAW NO . 7 - 1988 , AS AMENDED , " REQUIRING SPRINKLER SYSTEMS TO BE INSTALLED IN BUILDINGS IN THE TOWN OF ITHACA " SUCH THAT BUILDINGS NO . 31 THROUGH 36 AND BUILDINGS NO . 38 AND 39 , A TOTAL OF 34 DWELLING UNITS LOCATED IN PHASE II OF THE DEER RUN SUBDIVISION , MAY BE EXEMPTED FROM THE REQUIREMENT FOR THE INSTALLATION OF SPRINKLERS THEREIN . Mr . Hallberg addressed the Board and commented on the Sprinkler Law that was passed , adding , there was quite an effort from the Builders ' Association in the community and the law was rescinded for single - family and two - family detached homes . Mr . Hallberg commented that single - family attached homes were not exempted . [ Copy of Appeal attached to these Minutes as Exhibit 11 . Mr . Hallberg stated that Deer Run townhouses are sold in fee simple , single - family homes , commenting that each home has its own tax map , individual survey , and there is a three hour separation wall system between all units . Mr . Hallberg noted that the units are not apartments . [ Copy of rental restrictions attached hereto as Exhibit 2 ) . Mr . Hallberg stated that the fire wall system used at Deer Run is made by the U . S . Gypsum Company , adding , it is considered the best non -parapet system available . Mr . Hallberg offered that the system is an independent system that starts at the floor of the basement , to the peak of the roof of every house , and flares off into two directions that overlaps by 18 " . Mr . Hallberg said that the fire wall stands independently on a steel frame , noting , if one unit burns to the ground in the middle of a Deer Run building and collapses , the wall will stand on both sides of that house independently , and protect the buildings on each side . Mr . Hallberg stated that the cost of the system is very high , costing around $ 3 , 000 . 00 per unit . Zoning Board of Appeals - 2 - February 28 , 1989 Andrew Frost , Building Inspector / Zoning Enforcement Officer noted that the system- is put in because it is required by Code . Mr . Hallberg offered that the reason for installing the above was not only because of Code , those fire walls are only required in single - family homes , they are not required in multi - unit dwellings between each unit . Mr . Hallberg stated that a lot of the facilities are in place , such as water lines that were approved two years ago by the Town Engineer that called for 3 / 4 " water taps , adding , if a sprinkler system is required everything in the ground would have to be replaced with 1 " water lines , commenting , even then , there is a question about whether the pressure would be adequate to drive more than one system at a time . Mr . Hallberg said that the 3 / 4 " water taps were put in around July 1 , 1988 . Mr . Hallberg noted that in the revised figures he was not going to show that as economic hardship , because that was his problem , the law may have been in place when they were put in . Mr . Hallberg noted that , in terms of approval for Deer Run , a clustered subdivision was constructed , and the Town , by their own Subdivision Regulations quoted that they are looking for cluster subdivisions , as the Town sees the value of them in terms of using less roads , and less public facilities to be maintained by the Town . Mr . Hallberg offered that he tried to build affordable housing , and it has proved itself to be , the house prices are still under $ 100 , 000 . 00 . • [ Revised budget for the cost of including the systems attached hereto as Exhibit 3 ] . At this point , Mr . Hallberg referred to a letter addressed to him form Kenneth V . Gardner II of North East Appraisals , dated February 8 , 1989 , a copy of which is attached hereto as Exhibit 4 . Mr . Hallberg stated that he had a long conversation with Mr . Gardner as to what the system was worth , and how much would the public be willing to pay for them . Mr . Hallberg remarked that Mr . Gardner said that he would not make any adjustment , other than perhaps $ 100 . 00 for added value per sprinkler system , because the customers do not want them , they are scared of them , the insurance companies will give you $ 20 . 00 to $ 50 . 00 a year break on them . Mr . Hallberg stated that the banks he borrows money from operate on certain parameters for which they expect a return , noting , when it gets to down to 7 - 8 % it is not worth the risk for them . Mr . Hallberg noted that one of the things in the Sprinkler Law was the ability to show option . Mr . Hallberg stated that he was willing to install hand -held fire extinguishers in every bedroom , kitchen , garage , basement , and go through a fire education escape route system . Chairman Aron asked about heat sensors . Mr . Hallberg responded that he was only required to have two smoke alarms , adding , there will be hard -wired smoke alarms in every room of the house . Mr . Hallberg also said that he would offer sprinkler systems , at cost , as an option , and bill them to the customer . Mr . Hallberg offered that ® he is the only builder in Upstate New York that has fee simple , for sale , rent restricted housing that is required to build the sprinkler systems , commenting , he is competing against people who do not have to . Zoning Board of Appeals - 3 - February 28 , 1989 • Chairman Aron , commenting on Mr . Hallberg ' s remark about options , noted that the Law was not made for the matter that one can option , for sale , a sprinkler system or not a sprinkler system . Chairman Aron stated that the Law was made for a purpose - the purpose being to save lives . Chairman Aron wondered when Mr . Hallberg started construction , and whether or not he knew there was a Sprinkler Law on the books . Mr . Hallberg responded that he has been building since April 1987 , and was aware , at that time , there was not a sprinkler law in existence . Chairman Aron commented , as to the expenditures of installing sprinkler systems , there is no way that you or anyone else can put a price on a human life . Mr . Hallberg replied that he was not attempting to . Chairman Aron remarked that a smoke alarm is not the same as a sprinkler system . Chairman Aron noted that once a single - family home is sold , it is viewed by the Board as a single - standing home , however , the homes in question are attached under one roof . Mr . Hallberg stated that , at the present time , there are 13 buildings occupied at Deer Run without sprinkler systems , adding , he was approved for Phase II of the development , which is the subject 34 houses , in March 1988 . Mr . Hallberg said that he was committed to build those homes via the Homeowners ' Association , adding , the Sprinkler Law became effective July 11 , 1988 . Mr . Hallberg stated that he has to build the units , if he can afford to , adding , he is selling at fair market value right now , and he has to. give up half the profit on the project for the 34 units in • order to meet the criteria that was brought into effect after he was put in a position he could not back out of . Mr . Hallberg noted that according to engineers , the cheapest system that could be installed would be four 250 gallon oil tanks filled with water , per unit , with an emergency generator attached to the pump . Mr . Hallberg stated that he would cease building townhouses after the 34 units are completed . Mr . Hallberg remarked that , at the present time , he has Buildings # 38 , # 39 , # 36 and # 34 in the ground , adding , Buildings # 36 and # 39 are ready for sheetrock . The Public Hearing was then opened at 12 : 45 p . m . David Auble of Auble Homes , Inc . approached the Board and stated that he owns property adjacent to Deer Run , Mr . Auble commented that he had an approved site plan with attached units , but has revised the design partially because of the Sprinkler Law . Mr . Auble stated that he felt , if the law is on the books , then it should , basically , be complied with , or the law should be taken off the books . Daniel Forbes of 5 Moss Run , White Plains , NY , appeared before the Board and stated that he was affiliated with Auble Homes , Inc . Mr . Forbes said that he lives in Westchester County and they have a Sprinkler Law , adding , the law is designed to protect the person living next to you in an attached building . Chairman Aron asked if there were anyone else who wished to speak ® to this issue . No one spoke . Chairman Aron closed the Public Hearing at 12 : 49 p . m . Zoning Board of Appeals - 4 - February 28 , 1989 • Mr . Hallberg stated that he did not disagree that 50 builders could claim economic hardship , but noted , the point is , now , he is the only one left . Board member Joan Reuning interjected that she thought Mr . Hal2berg ' s point was that part of his hardship was that he is surrounded by other people who are able to build . At this point , Chairman Aron re - opened the Public Hearing at 12 : 50 p . m . Mr . David Auble of Auble Homes , Inc . spoke from the floor and stated that he still has a plan for attached houses , and if he should come before the Board , he would want the same considerations , basically , as other builders with attached houses . Mr . Auble offered that he can build attached housing more economically , as opposed to detached . There appearing to be no one else from the public who wished to speak , Chairman Aron closed the Public Hearing at 12 : 51 p . m . and brought the matter back to the Board for discussion . Eva Hoffmann , directing her question to Mr . Hallberg , wondered how far he was committed to the 34 buildings when the Law was passed . Mr . Hallberg responded that , as soon as he sold the first house in Phase II of the development , which closed in July 1988 , but it was sold in April or May of 1988 . Mr . Hallberg commented that , once that first house was sold , the common areas around the building were dedicated to the Homeowners ' Association , adding , to go in and change anything on that final plat plan to affect those would probably take close to a year ' s worth of work . Mr . Hallberg said that , as of the March 1988 approvals from the Planning Board , he was in place , noting , the project is a phased project and the next phase , which is at the end of the 34 units , is , theoretically , 104 units , noting that he would not build anymore attached units . Mrs . Hoffmann remarked that Mr . Hallberg was committed in the layout of the 34 houses , but wondered if there were a commitment as far as buying materials , and also the mortgage issue . Mr . Hallberg responded that , out of those 34 houses , seven are sold , adding , 21 houses have been sold in Phase II since March 1988 , and probably nine of the 21 had been spoken for before the Sprinkler Law became effective . Mr . Hallberg offered that six of the nine were sold between July and September 1988 . Chairman Aron inquired as to how Mr . Hallberg could substantiate the above . Mr . Hallberg stated he could submit dates of purchase offers . Edward Austen wondered how many of the water services were in before July 1988 . Mr . Hallberg answered , on the affected units , probably only four of the laterals ; the watermains with 3 / 4 " taps on them had been in since late June 1988 through August 1988 , commenting that he was not asking for exemption from that , as he took his risks and put them in . Chairman Aron wondered why Mr . Hallberg decided to ® put in 3 / 4 " mains , with Mr . Hallberg responding that he was running out of summer weather , and also they could not be exchanged for a larger diameter . Chairman Aron wondered if Mr . Hallberg ' s original Zoning Board of Appeals - 5 - February 28 , 1989 • intent was to put in sprinkler systems . Mr . Hallberg responded that his original intent was to keep building the road , and the question was , should construction be stopped right now , and 1 " water lines put in just in case the sprinkler system had to be installed . Mr . Hallberg remarked that the Town Engineer calculated that 3 / 4 " lines would be adequate . Andrew Frost commented that one head would have been sufficient for the 3 / 4 " pipe , and the pressure within that pipe . Mr . Frost said that since the rooms were larger he needed two heads , therefore , the pressure would not be sufficient to service two heads . Chairman Aron wondered if Mr . Hallberg was correctly advised by the Town Engineer and Town Building Inspector / Zoning Enforcement Officer . Mr . Frost commented that he could not speak about the discussion between Mr . Hallberg and the Town Engineer back in July 1988 . Mr . Frost noted that there had been some discussion with Bolton Point regarding the certain size of service lines required . Mr . Frost stated that the statement he made was based on engineering plans submitted from Mr . Hallberg ' s private engineer for sprinkler plans submitted with the building permit applications issued for the Phase II project . Mr . Hallberg remarked that there was no question that the larger room would have to have two sprinkler heads , the requirement was that , could 26 gallons a minute be delivered at 40 pounds pressure , adding , according to the theoretical Ridgecrest tank there would be enough pressure to run for 26 gallons a minute , and would be sufficient for two sprinkler heads . Mr . Hallberg offered that the problem was when the pipes were in the ground , commenting , no one misled him , it was just a miscalculation . Edward Austen wondered how many of the townhouses were sold , with Mr . Hallberg answering , as of this date , 54 are sold , and seven out of the 34 units are contracted for , and adding that half of the units are one - story units . Mr . Hallberg offered that the units in question are seven out of the 34 units . At this time , Chairman Aron asked the Board members whether or not they were satisfied that Mr . Hallberg has proven practical difficulties and unnecessary hardship , as this is all the Board can really consider . Joan Reuning stated that she felt , if the fact , before the Law was put into existence , could be substantiated and , in fact , all of the negotiation had been undergone , she felt that represents quite a hardship . Mr . Hallberg stated , for the record , that in Phase II there are 50 units , 16 units were completed , and building permits were drawn or applied for around July 1 , 1988 on 34 units . Mr . Austen stated that he certainly could see practical difficulty and hardship in this particular situation . Eva Hoffmann stated that she was a little concerned about the overall concept of the whole development . Mrs . Hoffmann commented that , perhaps , Phases I and II would be the only parts of the development that would be built in this way , and the rest will be single - family homes . Mrs . Hoffmann wondered if that meant that some Zoning Board of Appeals - 6 - February 28 , 1989 • of the open land would be built on , with Mr . Hallberg answering , no . Mr . Hallberg again stated that he would not build anymore townhouses , but would probably build 52 single - family homes . Mrs . Hoffmann , directing her comment to Mr . Hallberg , asked him to repeat the hardship of the case . Mr . Hallberg responded that , basically , the soft cost and the hard cost of the sprinklers for the next 34 units comes up to just shy of $ 200 , 000 . 00 , noting , the market will not pay for that ; they will make no adjustment in the appraisal for the inclusion of a sprinkler system . Mr . Hallberg said that if the market will not pay for it the developer has to pay for it , and on an anticipated profit of $ 375 , 000 . 00 , the developer has to bear $ 200 , 000 . 00 that cannot be recovered , because the banks will not increase the value of the house because of the sprinkler system . Mr . Hallberg said that the 52 % of profits going to sprinklers puts him below any acceptable bank margins that they will allow him to operate in . Chairman Aron asked Mr . Hallberg if he had a statement from the bank regarding the above comment . Mr . Hallberg answered that he would submit a statement . Edward Austen wondered what the price range of the houses were at the present time . Mr . Hallberg responded two -bedroom houses sell for $ 97 , 900 . 00 and three - bedroom houses sell for $ 99 , 900 . 00 . There appearing to be no further discussion , Chairman Aron asked • if anyone were prepared to make a Motion . MOTION by Mrs . Eva Hoffmann , seconded by Mrs . Joan Reuning : RESOLVED , that , in the matter of the Appeal of Deer Run Investors L . P . , Appellants , Edwin A . Hallberg , Agent , requesting a variance , under Section 9 of Town of Ithaca Local Law No . 7 - 1988 , as amended , " Requiring Sprinkler Systems To Be Installed In Buildings In The Town of Ithaca " , such that Buildings No . 31 through 36 and Buildings No . 38 and 39 , a total of 34 dwelling units located in Phase II of the Deer Run Subdivision , may be exempted from the requirement for the installation of sprinklers therein , the Town of Ithaca Zoning Board of Appeals find and hereby does find as follows : ( a ) that the process for the construction of these units was commenced a number of months before the Town Sprinkler Law became effective , and ( b ) that the water lines that would be required for the sprinkler system , while originally thought to be adequate from engineering studies , are apparently inadequate in terms of pressure and would require removal and replacement , and ( c ) that the overall cost of the installation of the sprinkler system in this particular instance would not be recoverable by the developer by altering the price structure of the units , and • FURTHER RESOLVED , that the Town of Ithaca Zoning Board of Appeals grant and hereby does grant a variance for the subject 34 units in Zoning Board of Appeals - 7 - February 28 , 1989 • Phase II of the Deer Run Subdivision from the Sprinkler Law requirements , subject to the following conditions . 0 1 . Receipt of a statement signed by the developer ' s lending institution indicating that the loss of profit that would be entailed by absorbing the costs of the sprinkler systems would preclude the lender from continuing to finance the project . 2 . Receipt of a list of persons who have contracted to purchase any units indicating the date the contracts for each such unit was executed . 3 . Installation of hard -wired smoke detectors for every room including the basement in each of the units . 4 . Smoke detector in the basement to be wired to the smoke detectors on the first floor and on the second floor , such that alarms will sound simultaenously . 5 . The provision of hand -held fire extinguishers of the appropriate size and type , as approved by the Town ' s Code Enforcement Officer , in kitchens , garages , basements , and every bedroom . 6 . The information requested is to be supplied to the Board no later than March 7 , 1989 . • 7 . The variance herein granted does not become effective until the Board has reviewed such information , and is satisfied with it . There being no further discussion , the Chair called for a vote . Aye - Aron , Austen , Hoffmann , Reuning . Nay - None . The MOTION was declared to be carried unanimously . ADJOURNMENT Upon Motion , Chairman Aron declared the February 28 , 1989 , meeting of the Town of Ithaca Zoning Board of Appeals duly adjourned at 1 : 44 p . m . Respectfully submitted , Mary S Bryant , Wcording Secretary , Nancy M . Fuller , Secretary , Town of Ithaca Zoning Board of Appeals . • Henry Aron , Chairman . ...' i TOWN OF I THACA FEE * $ 40 . 00 ' 126 East Seneca Street RECEIVED : - 2(�-�� .' Ithaca, New York 14850 CASH ( ) • ( 607 ) 273 - 1747 CHECK - Cp . ZONING : . 15 APPEAL - For Office Use . Only to the Building Inspector/ Zoning Enforcement Officer and the Zoning Board of Appeals of the Town of Ithaca , New York 11 Having been denied permission to I at �`-��n— �- � ►•1 f�w ►., r{�S cS Town of Ithaca Tax Parcel No . -1 i " Y . 3 as shown on the accompanying j application and/or plans or other supporting documents , for the stated reason that the issuance of such permit would be in violation of : 19 8$ I (.._acs �.� 7 , i ( seaNL"J� � Articles ) Sections ) , i i of the Town of Ithaca Zoning Ordinance , i the UNDERSIGNED respectfully submlts this Appeal from such denial and, in support of the j. Appeal , affirms that strict observance of the Zoning Ordinance would Impose PRACTICAL i DIFFICULTIES and/ or UNNECESSARY HARDSHIP as follows : 4 (Additional shieets may be attached as necessary . ) f EXHIBIT 1 i Signature of-Owner/Appellant : 4 ate : A F/ 8 f '� Signature of Appellant / Agent . Date . �! _• APPEAL TO THE TOWN OF ITHACA ZONING BOARD OF APPEALS y ' FOR VARIANCE FROM LOCAL LAW 71 1988 ;. REQUIRING SPRINKLER SYSTEMS TO BE INSTALLED IN BUILDINGS IN THE TOWN OF ITHACA BY DEER RUN TOWNHOUSES Deer Run Townhouses are attached single family houses. They are for sale on a fee simple basis. They are designed , sold , and controlled by a Homeowners Association to be owner occupied single family homes. By the Towns standards of Zoning , Taxation , Building Permit application , and occupancy . regulations , the homes at Deer Run are considered nothing but single family homes. By the State of New York Uniform Building Code the homes are considered single family, By the mortgage banks , appraisers , State Attorney General ' s Office , realtors , and tax assessors , the homes are considered nothing but single family homes. The Town Board has agreed that Deer Run Townhouses are single family homes. They have '. presently rescinded the sprinkler ordinance for all single family and two family homes which are detached and left the Zoning Board of Appeals to determine the fate of attached units. We are ? asking for variance from this ruling on the grounds of economic hardship due to four factors , redundancy in fire protection built into the construction , burden of installation cost of sprinkler systems , facilities presently in place which would have to be replaced , and economic impact of nonrecoverable expense to the buyer and developer . We would also like to address the Board on the philosophy of this development and the Town Boards response to it. , 1 . REDUNDANCY IN FIRE PROTECTION Deer Run uses a three hour seperation wall system between all units. It is a system designed and manufactured by the U . S. Gypsum Company and is in use throughout the world. It is considered the best non - parapet system available. The system uses 2 " of fire rated gypsum board erect within a steel frame which extends from the floor of the basement to the peak of the roof, At any point which one unit adjoins another , the fire wall wraps around into both units by 18 on each side. This contains any fire within the unit of origin and forces fire to "jump " over three feet of noncombustible surface in order to spread. The fire wall itself does not become any part of any ` bear.ing ' wall and no violations through it are allowed. If one unit were to burn down and collapse , the wall % is designed to stand independently on its steel frame and continue to protect. adjoining units. The system is an expensive one to construct , costing around $ 3 , 000 per home. In all if we build all of the units planned at Deer Run we would have spent approximately half a million dollars on ` fire protection which sprinkler systems would make redundant. 2 . COST OF INSTALLATION OF SPRINKLER SYSTEMS. ' The estimates we have received from installers to put in adequate sprinkler systems in the units . at Deer Run range from a low of $ 3 , 000 per unit to around $ 5 , 500 per unit. This is for the system within the structure once adequate water is brought to the house. These prices have all been contingent upon redesign of the homes to eliminate cathedral ceilings or the installers would not guarantee the pipes against freezing. EXHIBIT 1 , p In a typical building/developing environment of which Deer Run has proved itself to be . typical , , every dollar of hard cost construction adds approximately $ 1 . 38 to the end cost of a house. This factoring shows what a buildier must add to his estimates to account for interest , real estate . commissions , engineering , closing costs , legal fees , extra management to oversee additional trades , contribution to overhead , and'subcontractors profit, these all have to be taken into . account before the builder can add anything else for his profit. The resulting minimum cost therefore becomes between $ 4 , 140 to $ 7 ; 590 per unit. At present Deer Run is preliminarily approved for another 104 townhouse units, Assuming for arguments sake that costs dosnot increase for the next two years , the gross cost increase of the ordinance to Deer Run just for, sprinkler installation is between $ 430 ,560 and $ 789 , 360. If the ordinance stands as is with its effect on Deer Run , we will be ford to stop production of townhouses as soon as possible, For all practical purposes this will be at the end of Phase 11 of the development , leaving us with a total of 82 units to be built. The effected number of units which are waiting for building permits is 34 units. The cost of installing systems in those 3.4 units will be between $ 140 , 760 and $ 258 , 060 ( cost inside the unit, only ) . 3 . FACILITIES IN PLACE WHICH WOULD NEED TO BE REPLACED Deer Run had all of its engineering specifications for Phase II approved by th Town of Ithaca engineer , Bolton Point , and the Tompkins County Health Department in March of 1988. included In those specifications were the installation of 3 /4 " water laterals to the houses. Water laterals • were installed to all of the units in Phase II before the sprinkler ordinance was passed and also before we were aware of its oncoming presence, The fact we are faced with at present is that we have installed ( prior to July , 1988 ) approximately $ 50 , 000 worth of buried 3/ 4" water. i lines which have now been rendered useless by this ordinance. The cost of re- excavating those lines and replacing them ( including the taps on the mains ) is approximately $ 100 ,000 . Having relied on the Towns engineer to tell us what we needed as far as water service , the expenditure of this money alone creates a significant hardship on the project. Also in place for almost two years is the investment we have made in architecture and engineering, Given the hesitancy of the plumbing trade to guarantee a product given its present architecture , the only logical course .would be to redesign the units. The cost in dollars for this would be considerable, The more damaging effect for us would be timing. By the time we ` redesigned our houses , recieved all of the necessary approvals , and began construction amain , we would certainly lose the spring and summer real estate and construction seasons. The time spent , without work for our employees would mean the loss of their jobs. 4. COST OF NONRECOVERABLE EXPENSE TO THE BUYER AND THE DEVELOPER , ' . The real economic impact of the sprinkler ordinance . must be seen from the b rs . ers ective. A system which will add in the neighborhood of $ 9 , 824 to the cost of a home ( see chart below ). If a typical buyer takes a 90 % mortgage on his purchase , at a 10 % mortgage rate ,the increase in cost to them will be$ 1 , 035 per year . Given the qualifying ratios which banks use today ( 28 % of gross income for housing ) , the average buyer must now earn an additional $ 3 ,695 per . year to afford a house which has a sprinkler system . This represents approximately an . 8 % increase in salary for the average buyer at Deer Run . j EXHIBIT 1 i• j - i ;. According President of Northeast Appraisals the added value which a Accordln to Kenneth Gardner , sprinkler system brings to a new home is zero. Mr . Gardner tells me would not be able to make any adjustment in their appraisals to reflect this addition. If assuming that the houses are ? selling at fair market value right now , the cost of these sprinklers cannot be passed on to the consumer , leaving the developer to simply absorb the cost. In todays financial climate , the commercial banks which lend money for construction require , that the developer show they have at least"a 25 % margin in their sales prices over and above all costs , hard and soft. Construction costs have a way of not living up to prediction and the national E . average for new construction margins settles in at around 15 % . Deer Run is typical of those figures and we enjoy $ 1 1 - 12 ,000 per unit in profit. That is acceptable to most banks but bordering on marginal . If: wtried to absorb the. full cost of sprinklers in these units , we would be well below any acceptable margins required by the banks and it would not be our choice to shut down the project , but theirs. A summary of the costs associated with the 34 units .which we are seeking variance for are: E Hard Costs ( average $ 6 , 000 34 Units ) 204 , 000 s New Architecture ( specific to sprinklers ) 252000 New Engineering ( specific to sprinklers ) 52000 Replacement of 3 / 4 " water lines 1002000 i Total Cost for 34 Units 334 ,000 Per Unit Cost $ 9 , 624 Since the market will not bear the cost of sprinklers because the banks , via their appraisal services , see the systems as non - value adding items , the burden must fall on the developer . The .. economic hardship which this ordinance will place on this development in particular cannot be borne by the developer , via its lending banks operating parameters. There is simply no way to recoup the loss. The costs become astronomical if carried out beyond the 34 units in question and would only . more certainly emphasize the seriousness of the problem . Therefore we ask this Board to grant variance for at least the next 34 units at Deer Run , if not the entire project. a SUMMARY j Deer Run was developed with the intention of filling in a gap in the affordable housing market in { Tompkins County. The Town Planning Board recognized that need and encouraged the project. One of the attractive features for the project was that it is a true "cluster " subdivision , which the Town stated in its own subdivision regulations that it was seeking to attract. For long range planning purposes it makes sense , clustered projects use fewer public services and take up less land , while at the same time paying the same tax rates as scattered single family homes. . They allow for consistency in architecture , they keep themselves attractive and well maintained through mandatory homeowners associations , they tend to be very low crime areas , and they i offer affordability especially for retirees and first time homebuyers. Deer Run has been singled out as the only for sale fee simple , owner roccupied rental restricted housing in the county which will have to bear the cost of sprinklers. The best reason which the Town Supervisor could offer for inclusion of Deer Run under the ordinance was . that the I . EXHIBIT 1 i e = . possibility existed for a rental situation to develop and the control over "housekeeping" would no longer be charged to an interestd party ( the homeowner ) . This is a valid argument in that under the letter of the law in the State Building Code a builder could build attached single family homes for rental purposes and escape from some of the more restrictive multi - family construction specifications. At Deer Run , there are rental restrictions which are part of the property deed restrictions and j covenants as well as the Homeowners Association bylaws ( a copy is attached ) . These rules and regulations are imposed at the will of the developer and are far more restrictive than a detached single family home owner would have imposed on them . In the case of two family homes or t duplexes , which are generally designed and intended for nothing but rental purposes , without j benefit of mandatory ownel',, occupancy for any period of time and with no seperation wall f required , no sprinkler system is required. We agree with the necessity for sprinkler systems in public , professional , amd multiple family l buildings. The people in those buildings cannot depend on their neighbors to have as vested , or i any , sincere interest in the protection of that property. Deer Run does not suffer from that lack of interest and should not be categorized with them . ? We offer as a compromise to install hand held fire extingishers in every bedroom closet , the kitchen , basement , and the garage of every unit we build. These will be drychemical extinquishers with mountings attached permanently to the structure. We will institute a program of escape route instruction and fire extinquisher use with all new homeowners , ® hopefully with the cooperation of the Ithaca Fire Department. The costs of this ordinance would most certainly cripple a project which has livbd up to its promises to the Town and its homeowners and would certainly be the last of its kind to be built i in the area if the ordinance stands. I encourage members of the Board to visit Deer Run to see the quality of the development , inspect our fire seperation systems and meet with our personnel to have any questions answered. I will be glad to meet with anyone who is interested and you can call me , Ed Hallberg , at 272 - 8119 , i i • i i • EXHIBIT 1 r t _ a tv 1 Ii. i x ti : t z . l , 1ZOO t _� Ol 1 ARTICLE XIII t ..: 4., . staS i e • + ve rt Or'i : K '0 L PROPERTY RIGHTS : RIGHTS OF ENJOYMENT t Gtr ' r T. dd P . The , CoYnmon Areca subject to the provisions o ` Article III of the Declaration shall be liited to the use F ' �( Members and their - guests . . In the event that a Member sha ' ( ll ` lease rsa or permit another to Occupyhis home however ' the lease , , lesseek" , �, a; , occupant shall at the option of the Member , be ' . = fit`} permitted - to enjoy= : , { the use of the Common Areas in lieu of and subject to " " the �' samerr { 1 { restrictions and . itations as said Member . '� pr or occupant entitled ! to the use of the AssociationMfacilitiesBmay y V extend such g ' priv316 es to members of his family residing #' in ` his fflip �1ltt I , t S . 1r.•R t household by notifying the Secretary in writing of the names," of ,' any such persons and of the relationship of such Member , 2 ® t • +p , or occupant to such persons , r i 44 r t t . j Occup &ncy of the homes shall be restricted t Family Occupancy " which shall be defined as residentio ' . al ' ocoupancy. : , by no more than four adults all related to one another as :' either brother , sister , stepbrother , stepsister , mother father ,. husband , wife , daughter , son , stepdaughter , stepson , . together ` , 1 with nor more than four of their children , all of whom • are A' `' related to each other as brother or sister . The foregoing ` shal.l . ; {. _. . _ _ include adopted or foster children . tal of the home ' to � Person shall be in accordance with such none Family ` Occdpancyn ,? . f ` a .:„ i . . t :• 111 ` i ' • r d t f!- ; i t EXHI31T 2 i ' . . 3,. 1 , 1�3 5 Notwithstanding anything herein to . the ' contrary , common charges shall not be increased more than 10 % ' per year , or ' the percentageincrease in the Consumer Price Index for * the "preceding - twelve months , !' whichever is higher , without the affirmative vote of a majority ' of the Class ' 'A Members . , The Sponsor - shall not vote in any such ' vote . QR,,_ it 4 . Add ' tW� *Article VII anew Section 18 following Section 17 - Easements, ., and renumber the second . Section 17 � . relating ' to amendment to Section 19410 . The4new Section " 18 is as i - follows : Section 18 . Rentmalsilo ( a ) It is the intent of the developer . that the persons purchasing units in the .! development join in an effort to create and : sustain a participatory community or neighbors . To further this goal , it is 1 . understood that long - term renting and tip . subletting are . to be ' discouraced and the ` . following provisions are meant to enforce that understanding : ( i ) All owners of units , with the exception of the declarant ; must have one of their residences , if they have more than one residence , at the premises known as Deer Run Development and . t ' described oh Schedule A . ( ii ) Renting and / or subletting is 4 restricted to a cumulative period of twelve months kithin any continuous It i ldlrLv - six month perioc . Permission to. rent and / or sublet for a longer period of time must be obtained in writing from p -the board of Directors of the Association , and must specify the ; specific Lime period for which an extension is being grat: ted . I : no case , - , may the owner rent and / or sublet a ur_ it' ; E for mo . e h -wenty — fou = months cumulativeiv in anyrf _ ve- year period . EXHIBIT 22 _ '� I , r , dd fill Notwithstanding" the , above , the developer ; shall , be . allowed ., to rent one . .or .. more . 'units for akperiod not to exceed : two ,_ years; in eeach , . case from the ; date of It he issuance :of ., the original Certificate of: Occupancy . for . the : unit . being ' rented , ; proT, Iy ided that at . no _ time ; may the , , . doVeloper .. ha've . more than sixteen units rented under , this : provision at , any , one Wo 12 ( b ) Leases between the owners and tenant . s must be written and signed , andmust , , f i state among other items that : Any failure on the part of the Lessee to fully . comply with the ., , obligations . set .' forth in this � i . ., Declaration of Covenants and , } Restrictions and the By -Lawsio ` the .:. . Association constitutes , a , def atilt ., on: the y,ease ., ' and . . a , ( ii ) X11 financial obligatzons ao the Association remain the . sole s; responsibi. lity . of , the Owne _ -Lessor . 3AI I 5 . Add to Article VIII , Section p l . ( d ) at ;the end of the first sentence . of such section , . ; the 49ollowing ' words : , ; to an owner . ,, � . 6 . Add ' to Article. VIII , Section 4 , . a new heading. as follows : , f . ' 111 y{ Amendmen . Add to Article ?X , Section 3 , the following ,ttI L . IngI j L I changes .• fn ' the : first line , . after th6i words " The : ,, Association " . - add the - words , " the Town of , Ithaca . Ip EXHIBIT 2 : f - -� ` ! DEER RUN INVESTORS , L . P . 2 / 21 / 89 Dear Board Member , Since writing the appeal you received several weeks ago , we have been able to pinpoint costs of sprnkler systems more accurately. Attached is the best bid we have received for the installation of the systems , the breakout of the added cost of running larger water laterals to the houses , and a letter from Ken Gardner of Northeast Appraisals expressing his opinion of the market value of the systems. The plumber giving us the attached bid has said that he will be able to install the systems in the units we have designed with no change in architecture , and has given us a better than expected price on replacing the laterals that are already in the ground. Below please find a revised budget for the cost of including the systems in the next 34 units at Deer Run , I -lard Costs 34 Systems @ $ 3 , 229 / unit 109 , 786 34 1 " Water Laterals @ $ 750 / Unit 25 . 500 Subtotal 135 , 286 Real Cosi. Using 1 . 40 Multiplier of Hard Cost 189 , 400 ® Additional Engineering 5 . 000 TOTAL COST 194 , 400 Assuming an $ 1 1 , 000 Profit per unit , Anticipated profit for 34 Units = 374 , 000 T of Profits going to Sprinklers = 194 , 400 / 374 , 000 = 52 % If the Costs were able to be passed on then : Cost Per Unit 51718 ' Mortgage Effect Fixed Rate of 11 , 375 % = 56 . 08 / mo. 672 . 96 /yr . Additional Income Required to Qualify = 2 , 403 . 43 Although these figures are better than we had budgeted in the original appeal , they do not change our feeling towards the burden that these systems place on this project and still constitute an economic hardship which we cannot afford to bear . Thank you . Sincerely , Erwin A. Hallberg EXHIBIT 3 . N FEB 08 ' 89 1153 MCI; BUILDING Page No. of P . 1 Pages Proposal CAWFUL Industries , Inc . P . O . Box 153 SYRACUSE , NEW YORK 13208 ( 313) 474-2488 PROP094L SUBMITTED TO PHONE DATE M . C . K . Building Associates November 22 , 1988 STREET JOB NAME 221 W . Division St . Deere Run CITY, STATE AND ZIP CODE J08 LOCATION Syracuse , NY 13204 Ithaca , New York ARCHITECT DATE OF PLANSJOB PHONE ATTENTION : Bob Medi a We hereby submit specifications and estimates for: NO I1 ... ..... .... .. . ... . . .. . 0000. . . .. ..... .... , . ... ...... ... ...... ...... .............. ... ... . .... .. . . .. ..I. I.. . . .I ... .... . . The following proposal includes all necessary labor , material and IN IN ............ excavation to � excawate and replace 3 / 4 " watet � service with 111 water service , to- existing.. building - or building. partially ....constructed .. . . . . .... . . .: . . ... ... .. . . .... ..... . .. .. 1. 0000. . . .. . .. . ...... IN TOTALPROPOSAL- - - - - - - - $ 75.0 PER.- UNIT .. .. ... .. ..... 00 00 I IN 0. . . .. I I I IN I NO I. .. ... ... ...... . . ... .. I ...... 0 000 .. .. . . I ...... .. . . . 000 . 0.. . . . I IN I .... . .... 0 0 0.0 I...... .. . .. I 00 00 IN ... 0... 1. 11 ...... ..... 0000. .. ...... . . .... . t 4 1 1. . NO I IN I. IN I ON I .... ... I I NO .... . .. .4 1111. 1 1 .... III0 0 0 . .. .. ... ..... 1... 41.1.. .. . ... 7 1 IN I I I IN I I IN . .. ..... .. . . 0000. . . . . _ 0000 Mr VrupOlRe hereby to furnish material and labor -- complete in accordance with above specifications , for the sum of . Payment to be made as follows : dollars All materiel Is guaranteed to be as specified. All work to be completed In a workmanlike • manner according to standard practices. Any alteration or devlatlon from above specloca . Authoriz n aober tions Involving extra costs will be executed only upon written orders, and will become an SlgnatUre _ extra charge over and above the eetImste. All agieements contingent upon strikes, accidents or delays beyond our control, Owner to terry fire, tornado and other necessary insurance. Note: This proposal may Our workers aro tu+ly covered by workmen's Compensation Insurance, withdrawn by us If not accepted within days. Paw �1trPtttriCP I1frn�iaa�! The above prices, specifications and conditions are satisfactory and are hereby accepted . You are authorized Signature --- -- _ _. to do the work as specified. Payment will be made as outlined above , Date of Acceptance: Signature EXH �4 : . � Y= Fi B 08 ' 89 1149 ; 1°1CK BUI IPiG Page No , of pages • r voa MW GARDINER INC@ 1415 Lodi Street SYRACUSE , NEW . YORK 13208 r (315) 4224$02 PROPOSAL SUBMITTED TO PHONE DATE P JQB NAME ET DERY 221--KR,qfP DIVISION CITY, $TATE AND VP CODE JOe LOCATION JOB PHONG ARCHITECT DATE OF PLANS Wa hereby submit $pacification$ and estimates for: I If A COMPLETE SPRINKLER S'YSTEEM ACCORDINGLY TO . . . . ... .... .. . . . .. .1 .111 .. , • NE' PA 13 D FOR ONE 1111._ TOWN . HOUSE .. AT, . .ABOV E. . . PROJE , .. . _ ._ . ......... . .. . ._ 1111 1 . RISER . WITH 1111 . . . PRICE " INCLUDES -1 . . ' .. AND . . ... .. .. . . CONTROL . VALVE , ' FI, SWICTHr . _ TEST VALVE . 1111... 1111 ... �, If . , . . . 20� CHROME .. . PENDANT� OR � SIDEWALIIRESIDENTIAL MODEL E .�. .. ,... t. AKE . ,CENTRAL. ) .. . . . . . . 1111 .. . .. . ... . . . ALL ... 1111 . . �. D TO BE UL FM APPROVERflIf ..... ALL pRTNT3AA1',PRaVED BY ' ' LOCAL AUTHOkITYAVIJ J.URISTICTION .. ,.. .._. ... ... .. . ..141. 1 .. . ... . L. : .. Y .. .,. . . . . ,1111, .� .., q7... 1111. 1111 . 1111. „ ... .. . . ... . ... , 1111 � ;.f .. . , ,... ... _. .. .. u... .In.. - 1111 _ .. . �.._., ,1111 1111 ,1111 .I. .n .. ..... ...... �.. 1111 , _, 1111.._ ..., . .. � +[p� n. . , 1111 1111. . �..�..., . _.. k .. 1111.. I I P, , .. .. .... ... ... .. I . .. . o- EXCLUDED.._ FROM .. PRICEs . NO ELECTRIC ., . OR . PAINT . . _.. .. ... ... .. ............... ...I.I.... ...._.. ..... ...... ... , hereby to furnish material and I ibor — complete in a coil ante wi h above specifications , for the sura of: ' �C �GIA '. '' T /� dC`✓ ft..t� dollars ($ 32 • 00 ._.._._..._ ) . Payment to to made $s follows : / All material M guaranteed to be as speelHed. All work to be completed in a workmanilke Authorised manner according to standard practices. Any alteration or deviation from above specifics, Signature tions Involvin/ extra costs will be axeeuted only upon written orders, and will beooma an g • W1L extra charge over and above the estimate. All agreements Contingent upon strikes, eeoldente Neta: This propveal may a a 61 boeybnd our cpntrvl. Owner to carry Oiler tornado and other necessary insvrsnce. Our worker# an hilly covered by Workmen's Compensation Insurance4 withdrawn by us if not accepted within days , EXHIBIT 4 : rrepUnCt of VCOV016541 — The above prices, Specifications and conditions are Satisfactory and are hereby accepted . You are authorized Signature to do the +rant as opeci09d. Payment will be made as outlined above, Signature Date of Acceptance: FORW 114 .6 COPYRIGHT sego - Fmitacla 4M L776FITInc , a+axon mass. 01460 north East appraisals & MANAGEMENT CQ INC, February 8 , 1989 Mr . Edwin A . Hallberg President Deer Run Development whitetail Drive Ithaca , NY 14850 Dear Mr . Hallberg : I am writing in response to your recent inquiry pertaining to the value impact that sprinkler systems have on residential dwellings . It is my opinion that , while a sprinkler system would add to the cost of construction , a dollar for dollar increase in the value of the property would not be realized . More likely , the market would not pay substantially for this item since competitive properties without sprinkler systems would be available . A possible reduction in insurance premiums would be a positive at - tribute of the sprinkler system requirement . Safety is certainly an important consideration , but there is no evidence to suggest that homeowners in Tompkins County would be willing to pay for this extra cost . On the contrary , there may be greater concern for problems frequently associated with sprinkler systems such as accidental set - off . Very truly yours , NOR'T'H EAST APPRAISALS AND MANAGEMENT CO . , INC . f, Kenneth V . Gardner II President KVG/ cad EXHIBIT 4 515 West Seneca Street , Ithaca , NY 14850 [607 ] 273 - 7300