Some clouds this evening will give way to mainly clear skies overnight. A stray shower or thunderstorm is possible. Low 81F. Winds SE at 10 to 15 mph..
Some clouds this evening will give way to mainly clear skies overnight. A stray shower or thunderstorm is possible. Low 81F. Winds SE at 10 to 15 mph.
Plans to build a 350-plus unit manufactured housing development on nearly 40 acres on the north side of Lake Havasu City cleared the first of several hurdles on Tuesday.
The City Council voted unanimously to approve a request by Havasu-based North American Assets to change the future land use designation of 39.54 acres located immediately northeast of Lowe’s from “employment” to “high density residential.” Waylon Gates, with North American Assets, told the council that this is the first step in the zoning process for the development called Villages at Victoria Farms. Now that the land use designation has been changed, the developers plan to seek a rezone of the property from to a manufactured housing district.
Gates said the plans for the manufactured housing development are still being finalized, but planning should be able to move a little more quickly now that the land use designation has been approved. Currently, Gates said the idea is to create between 350 and 400 residential units on the property located between Victoria Farms Road and Chenoweth Drive. The units will be a mix of sizes from 400 square foot one bedroom “tiny” manufactured homes, scaling up to four bedroom manufactured units. The development is also expected to include some RV spaces that will allow family or friends visiting the development’s residents to stay nearby.
Gates told the council that the goal of the development is to provide housing at a lower-than average cost, while still offering a quality community that the residents can be proud of. Gates said the plan is to make it a gated community with lots of additional amenities for the residents like resort-style pools, pickleball and bocce ball courts, dog parks, barbecues, and a clubhouse.
James Gray, CEO of the Partnership for Economic Development, spoke in support of the request during Tuesday’s meeting. He told the council that sharing the cost of such amenities is a good way to make the cost more affordable for residents. Gray also said the developer’s plans to continue to own the land, is another way to make the cost of housing more affordable due to the high cost of land within the city limits.
Gates said the development plans to sell the manufactured homes to the residents, who would then rent the land from the owners of the property - who would also manage the development. He said rents are still being worked out, but the plan is for the average rent to be between $600 and $650.
Gates also introduced Evan Bernstein to the council. Bernstein is a founding partner of Castle Park Investments, which Gray said is planning to invest a total of $22 million in the development. Gray explained that a major part of what makes the investment work is because it is in an opportunity zone which will give Castle Park Investments some tax benefits if it develops and holds the property for 10 years.
Bernstein told the council that the idea of the project is to provide housing for workers in Lake Havasu City. He said the goal is to offer prices such that the mortgage payment for the manufactured home and the rent for the lot it sits on are about the same price combined as a similar sized single family rental elsewhere in the city.
Lake Havasu Association of Realtors president elect Gunner Mitchell told the council that the association supports the project.
The development is in Epcor’s water service area, but it would be on Lake Havasu City’s sewer system. City Manager Jess Knudson said the development would require an investment into sewer infrastructure in the area. Knudson told the council it would be up to them to decide if that is an expense the city is willing to take on, share the cost, or require the cost to be covered by the development. Public Works Director Greg Froslie noted that the one of the city’s influent pump station is surrounded by the development, which could make it a little easier than normal to bring sewer to the property.
The council had a wide ranging discussion about the proposed development prior to unanimously approving the requested future land use designation.
Mayor Cal Sheehy kicked off the discussion by asking about the timeline of the development. Gates said once the property is rezoned and the developers obtain all the proper permits from the city, the first phase of the two phase development would take about 12 months to construct. Gates also noted that because the development plans to use manufactured homes, residents would be able to start moving in quickly after the development receives its certificate of occupancy.
Sheehy also asked about short term rentals in the development, and how those would be handled by management. Gates said there may be some short term rentals, especially for the planned RV spaces within the development. He said the developers aren’t ready to rule out homeowners renting out their manufactured homes at this point, but he said that likely wouldn’t be a sticking point for the development moving forward if that was a requirement from the city.
A local resident also brought up the fact that the development would be close enough to the airport that it would likely have aircraft taking off or coming in for a landing flying fairly low overhead and creating noise. Gates said the developers are aware of that, and they plan to make sure that any prospective buyers are also aware of the airports impact prior to purchasing.
“It is going to have to be addressed,” Gates said. “It will be in our interest to let people know, in no uncertain terms, that there is air traffic noise there. It doesn’t help us to own the project and have tenants that are upset that we didn’t tell them what is going on. They will want to move out, and part of the advantage of this type of structure is they can easily leave if they want.”
Councilmembers Jim Dolan and David Lane both said they had some doubts over whether the proposed development would actually end up being purchased by workers in Havasu. They noted that the lower-than average price would be just as attractive to Californians looking to purchase a second home in the community. Lane suggested including in the Covenants, Conditions and Restrictions a requirement that the homeowner live in the house for more than half of the year.
Bernstein told the council that as the property owners and managers of the Villages, they will have the ability to put restrictions on things like short term rentals, and said it would likely be in their interest to do so. Bernstein noted that from a purely financial perspective, the investors would not make any additional money on any short term renting that occurs in the development. He also said other residents in the neighborhood would likely rather not live next to a short term rental either, and the business will only succeed if the residents enjoy living there. He said they are not ready to say for sure that there won’t be any short term rentals allowed in the community, but he said they would consider including restrictions like the ones suggested.
“We may allow them, and we are not going to say right now that we are absolutely not going to allow them,” Bernstein said. “But we will have the power to set rules and regulations to make sure they are done the right way.”
Councilmember Nancy Campbell said she believes those types of issues should be up to the developer to work out, and didn’t think the City Council should be looking to place additional restrictions on developers regarding how they should run their business.
“These conversations we are having right now is what keeps developers away from us,” Campbell said. “I’m focused on how to get developers in here. You have one that is making a substantial investment next to an airport, and they have a risky business plan. It may or may not work, but it’s not on the city government to have to deal with it – it’s on them. I guarantee that if they have all their owners selling their units and moving out they will definitely change their model moving forward.”
Dolan told the developers that much of the conversation during the public hearing isn’t necessarily directly at them, but rather is part of a larger discussion on Havasu’s struggles with adequate affordable housing for workers.
“This is the closest thing I’ve seen to affordable housing,” Dolan said of the Villages plans. “I hope that we can take all of this in, and maybe you can utilize some of this too.”
Email notifications are only sent once a day, and only if there are new matching items.
Your comment has been submitted.
There was a problem reporting this.
From 400 square feet up to 4 bedrooms. What is with builders/investors trying to turn Havasu into a tiny home community.
I have said this before, a manufactured home development [Mobile Home Park] may not turn out well in Lake Havasu City. Why one may ask. Well the primary reason is that manufactured [mobile] homes are not permanently affixed to a foundation and are therefore NOT treated as real property. They are treated more like personal property like a car where value decreases over time.
On the other hand if the homes were Modular Homes permanently affixed to a foundation even in a mobile home park, they become real property and traditionally gain in value over time. Mobile Homes do not traditionally gain in value. I want our labor force or any investor to have every opportunity to live the American Dream by buying a home and seeing it increase in value over time. Modular Homes affixed to a foundation traditionally go UP IN VALUE over time. Which would you prefer; increasing home value over time or depreciating home value? Which would Real Estate agents prefer to list and help sell; depreciating property or increasing valued properties? Which would investors prefer; an increasing asset value or a decreasing asset?
Both Manufactured Homes and Modular Homes can be affordable and very comfortable homes to live in. The only real difference is one you rent the space forever and end up with a pocket full of WORTHLESS rent receipts and the other you expect it to grow your investment over time. The Modular Home attached to a foundation like a traditional home INCREASES in value. A Modular Home also allows homeowners to build equity and real estate agents are more willing to invest their time in a Modular Home sale instead of a Mobile Home - they just are. Mobile Homes can be here today and gone tomorrow.
I can not stress this point enough and have live in both types of housing. It becomes painful after some period of time to make monthly rental payments for the land your Mobile Home sits on. While not mentioned in the News-Herald article, the electrical, water and sewer connections are NOT traditionally owned by the power company or the city but rather the rental or investment company. That means you traditionally pay an additional cost or fee every month for those services on top of the standard rates paid by other city residents This usually comes as a percentage charge on top of the regular rate for the services.
I sincerely hope reason and good judgment prevails in the end. Three hundred new homes to buy on RENTED land doesn't make much sense for our community. And for about 10 years while the initial investment firm is involved I am quite sure the mobile home part will look very attractive to a new investor. But what assurances will there be after the 10 years? Who will be around to enforce the HOA, CC&R' sand/or park rules and regulations if any? Will the City then be charged with ensuring the facility is maintained or will it be somepark manager who will let it deteriorate. Will the park manager have pride of ownership or just become a rent collector?
We are in an extraordinary time which seems to promote the building of anything. But remember that economic slowdowns do happen at some periodic interval and values do fluctuate with time. From a low point to the high point Modular Homes affixed to a foundation perform just like a traditional stick built home. A Manufactured Home DOES NOT. It can be here today and gone tomorrow. It is after all mobile. A Modular Home builds equity and pride of ownership. Mobile Homes do not. Which would you prefer? Fill a park with Mobile Homes and HOPE it is maintained after 10 years or Modular Homes affixed to foundations? Which would you prefer as a resident of Lake Havasu City?
How can you have "affordable housing" when you have amenities that must be taken care of? Help me understand, we have manufactured homes renting the dirt they sit on plus separate CC&R? monthly payments which never go down, only up. How is this classified as 'affordable'?[huh][unsure][scared]
Campbell owns an concrete company with her husband, we should expect her to want the protect her business, She can't make a living selling cigars on main street.
Not noted in this article is that adjacent commercial properties uphill on Chenoweth include areas where LP gas truck are stored, which have a minimum distance from habituated structures as a Safe Haven when parked overnight. Putting the development right up to these areas with a zoning change could adversely affect local small businesses.
So Comrade Campbell doesn’t think that the city council shouldn’t have a say on future development on our city? What is a city council supposed to do, represent it’s citizens or the developers?
RD, This is Waylon Gates, I watch the comments and feedback on as many forums as I can to better understand the public's opinion as well as better understand the needs and wants of our community. As a general rule I do not engage, however I want to say thank you for your comment which addresses a very real and valid concern that I have not specifically considered. I want to ensure you and the general public that we have been working closely with all of the neighboring parcels and businesses to ensure that we aren't imposing on their operations. Based on your feedback I will be reaching out directly and specifically to the LP businesses in the Chenoweth area to make certain that our proposed design takes these concerns into consideration. Thank You
What will you do to protect people from accidents associated with living in the flight path of the airport? Seems the location of the development is the worst place for a high density community.
Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language. PLEASE TURN OFF YOUR CAPS LOCK. Don't Threaten. Threats of harming another person will not be tolerated. Be Truthful. Don't knowingly lie about anyone or anything. Be Nice. No racism, sexism or any sort of -ism that is degrading to another person. Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts. Share with Us. We'd love to hear eyewitness accounts, the history behind an article.
With the start of the school year on Thursday, ASU Havasu is entering its tenth ye…
Property taxes will remain steady this fiscal year, after a vote by the county’s g…
KINGMAN – Mohave County Treasurer-elect SueAnn Mello shared her duties and outlook…
We're always interested in hearing about news in our community. Let us know what's going on!