Abby townhome project faced with delays

A developer who promised to build townhouses on Abbotsford’s north side has missed an Aug. 1 deadline to break ground on the project, opening up the potential for another developer to come in with a new plan for city officials to consider.

Noel Felix of Straight Shot Investment Group asked members of the city’s planning commission last Wednesday for more time to speak with his contractor and get a revised budget in place after a spike in construction costs caused him to delay the start of his project in the Schilling Subdivision.

Earlier this year, Felix signed an agreement with the city to purchase 11 lots, at $1 per lot, along Swampbuck Drive and Porcupine Drive. In exchange, he agreed to build a total of 11 townhomes with four to six units per building, over a period of three years.

Since he failed to start construction by Aug. 1, as specified in the contract, planning commissioners said he is in breach of his contract and the city is free to explore other options for developing the land in between the Northside Apartments and the Sportsmens Addition.

DPW Craig Stuttgen told the commission that another developer is interested in building low-income apartments in that area, which would require the city to rezone the property. That would undoubtedly create a backlash from residents in the Sportsmen’s Addition, who have consistently opposed more apartments in that area. “All I’m telling you is that there is somebody else looking at it,” Stuttgen told the commission.

Commissioner Jim Jakel said the city should stick with its original plan to have Straight Shot develop townhomes, even if the project has been delayed.

“I think we should ride it out with him,” he said. “I think we should give him a chance.”

Felix said his goal is to get the project started “ASAP” because his company is already spending money on the development. He said he was getting together with his contractor the Monday following the meeting to discuss a revised construction budget. The idea of changing the zoning in Schilling Subdivision again did not sit well with commission president Mason Rachu, who recalled the controversy surrounding a previous rezoning effort to allow for more Northside Apartments.

“I’m definitely not in favor of rezoning those lots for apartments,” he said. “I don’t think I want to go through that again.”

At the same time, Rachu said he’d be willing to consider new proposals from other developers besides Straight Shot who are ready to build townhomes or houses on the subdivision lots.

“If somebody’s ready to go, I’m going to consider it,” he said.

Stuttgen said the city could always grant Straight Shot an extension by amending the contract and setting a new start date.

“Otherwise, you’re agreeing to let him hold onto that property and we can’t market it for three years,” he said.

Felix said he let former city administrator Dan Grady know in July that his project was not going to start by Aug. 1 and he wanted to have a meeting with the planning commission at that time, but it didn’t happen. Since he first made plans for building townhomes in Abbotsford, he said the cost of construction has doubled.

“So, basically, the cost I was going to sell these at, it’s going to cost me more than that to build,” he said. “So, I said ‘Well, hold the train. We’ve got to evaluate what’s going on.’” Felix said he also had a problem with his realtor not doing enough to market the townhomes to potential buyers. The realtor was supposed to put up signs on the highway and on the lots themselves, and he also promised to develop a website, but none of that happened, he said.

“I gave him as much time as I could, and I asked him to give me a contract release,” he said. “I said ‘This isn’t working.’” Felix said he has been interviewing new realtors and working on ways to lower the construction costs, with a plan to pre-sell as many buildings as possible. He said they are focusing on the six-plexes at first, since they can be rented out and still produce profit.

These type of issues and delays are not uncommon for a project like this, Felix said.

“I’ve been doing this for quite awhile on a smaller scale, and I can give you story after story of problems I’ve run into, sometimes at the beginning, sometimes at the end,” he said. “It’s my job to tackle those problems, figure out how to work through them and make the project work. I’ve been successful in doing that 99 percent of the time.”

Still, Rachu said he considers the contract with Straight Shot “void” until Felix commits to a new start date for the project.

“The longer he waits to give us a time, that gives anybody else who’s interested time to say ‘Hey, I want to build there,’ right?” he said.

In response, Felix offered to start construction by the end of 2021 in order to keep the contract in place.

“We will start building something by the end of the year,” he said.

“That’s two months,” Jakel said. “Is that realistic?”

To prove that he’s serious about building, Stuttgen said Felix should obtain a building permit, and put a backhoe in the ground “with the intent of pouring concrete for a slab.” He doubted this was possible.

“If youpicktwomonthsfromnow,we’ll be sitting here again in two months,” he said.

Rachu said he wants to see a revised plan from Felix, detailing how he plans on starting and finishing the project, before granting him an extension.

“Personally, I don’t feel comfortable committing,” he said. “We don’t really have any information at this point.”

Jakel expressed confidence that Felix would complete the project as originally promised.

“I think it’s going to happen,” he said. “I just think you need to get your ducks in a row.”

Low-income apartments

While commissioners ruled out the Schilling Subdivision as a place for lowincome apartments, they also wanted to help find a different location within the city for them to be built.

Stuttgen said the apartments being proposed are similar to the ones built by Impact Seven at the end of Eighth Street near the Abbyland Foods sausage plant. He thought that same area would be the best fit for the newly proposed apartments.

“The problem is, we don’t own that land,” he said.

When asked if the city had any other areas available for the apartments, Stuttgen mentioned land to the west of the Northside Apartments currently owned by Ken Christiansen. He said he spoke to Christiansen, who is not willing sell any of his land at this point.

Commissioner Scott Christiansen said he would also talk to his father about possibly selling the land.

“I don’t think it’s no forever,” he said.

Stuttgen said the developer has until the end of December to apply for funding for the apartments, and in the meantime, the city will try to help him find a location.

“We’ll investigate it,” he said. “We’ll have another meeting when this gets further along.”

_ The commission approved a new certifi ed survey map for 308 W. Pine St. and 302. W. Pine St. The lot line between two existing parcels was adjusted to provide more of a buffer area for a shed on the edge of the property.

_ Commissioners discussed different ways of marketing land in the city’s new industrial park on the newly extended Opportunity Drive. Stuttgen suggested the city work with the Clark County Economic Development Corporation, which would require the city to start paying its annual dues of $3,000 again. The commission also authorized Stuttgen to get a contract ready from realtor Tony Morice at NAI Pfefferle, who expressed interest in marketing the industrial park land.

Commissioner Gerry Anders said some recently cleared land on the north end of Colby, right along STH 13 and STH 29, could prove to be a competing attraction for developers.

“We’ve got competition right across the interchange,” Anders said.