Toby's Blog

Ginn Clubs and Resorts Misses P&I Payments on $675 Million Credit Facility

Toby Tobin (GoToby.com LLC) — Wed, 02 Jul 2008 16:43:12 -0500

Signaling cash flow woes, Ginn Clubs and Resorts missed principal and interest payments on its first- and second-lien debt according to a LCD report. Lenders have agreed to not exercise remedies for 30 days but have not waived the default. The 30-day waiver on principal and interest payments was granted when Lubert-Adler agreed to kick in $5 million in cash for operations. The agreement affects only four Ginn properties.

Both the report and comments from Ginn President, Robert Gidel can be seen at the following link: Florida Real Estate Developer, Ginn Clubs and Resorts, Misses Principal and Interest Payment

Toby Tobin is a real estate commentator and Publisher of GoToby.com, the popular real estate news website for the City of Palm Coast, Flagler County and Northeast Florida. He is a licensed Florida Realtor® associated with Adams Cameron & Co.

Are You Trying to Sell Your Property or Just List it?

Toby Tobin (GoToby.com LLC) — Sun, 08 Jun 2008 11:00:44 -0500

It's said that sellers are the last ones to know the market has dropped. By most measures, the Palm Coast, Flagler County housing market peaked in the summer of 2005. Yet, 2 ½ years later, some sellers still haven't gotten the message. How can that be? It's certainly not because of the lack of media coverage.

People fall in love with their assets. They just can't believe that there isn't at least one person out there that values their property as much as they do. But after 2 ½ years, shouldn't they be waking up to reality? Here are a few things that sellers need to know:

Buyers don't care what you paid for your property.
Buyers don't care how much you think you need to break even.
Buyers don't care that your listing price is lower than the listing price of comparable properties. They care about how your listing price compares to the price at which comparable properties SOLD recently.
Buyers have lots of options. Your property is only one of several.
In a buyers market, buyers are not as anxious to make a deal as are sellers.
Carrying costs can eat you alive. If you're monthly carrying cost (interest, maintenance, insurance, association fees, etc.) is $2,500, your investment will be $15,000 higher in six months. Do you think you will get $15,000 more if you wait six months?
Think about how you would describe your property to the Property Appraiser's office in order to justify a lowered assessment. These are the reasons a buyer will offer less than you want.
Taking a loss on an investment does not make you a bad person. Even smart people make mistakes. Last year, multi-billionaire Carl Icahn offered $22 per share for WCI Communities, the developer of condos at Hammock Dunes. Today WCI trades for $1.81. But Carl got lucky. The company turned down his offer as too low.

Here are just a few examples of current local listings that I do not believe are justified by present market conditions:

Two North Riverwalk Drive Intracoastal lots in Palm Coast Plantation are listed at $379K and $375K respectively although two nearby lots recently sold for $225K and $215K.
Three adjacent Intracoastal lots on South Riverwalk are listed at $419K, $349K, and $480K. A fourth lot is listed at $299.9K and a nearby lot sold recently for $300K.
The median selling price of 52 Palm Coast lots (those platted by ITT when Palm Coast was first planned) sold since the first of the year was $30,000. The median listing price of the 1,202 lots still available is $59,045. Hello!!!
Of 39 lots listed in Ginn's Conservatory, 12 are above $300K. However, no lots have sold in that community in the past two years and there are 20 listed below $200K of which 2 are below $100K.
Two salt-water canal lots in the "C" section are listed above $450K although no similar lots have sold above $287K in the last six months.
An Intracoastal unit in Canopy Walk lists for $499K while an identical unit in the next building sold recently for $299K.

The list could go on for pages but I think you see my point. If you are serious about selling, discuss current sales of comparable properties with your Realtor® and adjust your listing price accordingly. Repeat the process at least every other week. If you are unwilling to do this, you are not seriously trying to sell your property. You are simply listing it. Your neighbors would rather you took down your sign. The properties that sell (and many more are selling today) are the ones that are competitively priced and/or attractively presented.

Toby Tobin is a real estate commentator and Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast, Flagler County and Northeast Florida. He is a licensed Florida Realtor® associated with Adams Cameron & Co.

Bobby Ginn Wins Support for Ski Resort from Minturn, Colorado Residents while Facing Mounting Challenges at Existing Developments

Toby Tobin (GoToby.com LLC) — Sat, 24 May 2008 19:53:06 -0500

In a heavy turnout on May 21st, voters in tiny Minturn, Colorado overwhelmingly (87%) supported a referendum to approve the annexation of 5,300 acres into their town. The land, located on Battle Mountain a short distance from Vail, was purchased by the Ginn Company for $32.75 million. Ginn plans to build a ski resort, including 1700 homes and condominiums, and up to two golf courses on the property.

The annexation was previously approved by a unanimous vote of the town council. However, a few locals felt that Minturn residents should have some say in the decision. This group gained enough support to force the referendum. 357 (50%) of the voters turned out to vote on the referendum compared to only 227 votes cast in April's general election.

To win local support for annexation, Ginn pledged $180 million to improve the town's infrastructure and services. Locals were also promised limited access to the resort's amenities, a concession not given by Ginn at his other private developments. Bobby Ginn has been active in Minturn lately personally lobbying residents.

While Bobby celebrates in Colorado, he faces increasing challenges at some of his other developments:

At Hammock Beach in Palm Coast, FL, the single family residential side is moving forward with several new housing starts. But while the resort gains recognition from the hospitality industry, condominium sales languish. Only a handful of units have changed hands in 2008. According to public records, none of the $million plus contracts for tower units reportedly signed at the Ginn Championship golf tournament in March has closed to date.

2007 property taxes are listed as delinquent on 128 of 337 lots in The Conservatory. 2006 property taxes remain delinquent on 52 of them. Meanwhile, several lots (originally purchased for between $329,900 and $529,900) now listed between $100,000 and $200,000 remain unsold. Ten Conservatory lots are now bank-owned (foreclosed). Fifty more are in foreclosure.

In Yacht Harbor Village, Ginn's marina community on the Intracoastal Waterway in Palm Coast, a handful of condominium units are still unsold. The building received its Certificate of Occupancy in 2006, but the lobby, restaurant, and ships store remain unfinished.

At Bella Collina, Ginn's premier resort on Lake Apopka north of Orlando, 292 of 823 properties are listed on Lake County's 2007 delinquent tax roll. Foreclosures are increasingly common there also, as they are in Tesoro, another Ginn community in Port St. Lucie and Reunion near Orlando. The planned Tesoro Beach Club was never built. Nor was the planned equestrian facility at Bella Collina.

Several lots reported as sold at a fall '07 release event at The BriarRose, a recently acquired Ginn property in Georgia, did not close. Jeff Davis, who recently headed Ginn's real estate sales division and originally developed The BriarRose is no longer with the company. BriarRose is now reportedly for sale.

A lawsuit filed last year in Michigan by disgruntled Ginn property investors has recently been assigned to a Florida jurisdiction. Ginn states that he will vigorously defend against the suit. Two additional lawsuits were reportedly filed in April by Orlando based law firms representing Bella Collina property owners. Several Ginn property owners have indicated that they have been contacted by the same law firms about similar suits the firms plan to file related to Reunion, Tesoro, and The Conservatory.

Hopefully things will go well for Bobby and the Minturn residents. But until a resurgent market arrives to lift the values of existing Ginn community properties, he will likely face continuing pressure from disgruntled property owner/investors and the lawyers who will seek them out.

Real Estate Commissions are NOT as Big as You Think

Toby Tobin (GoToby.com LLC) — Thu, 01 May 2008 18:33:32 -0500

I cannot count the number of times people have remarked to me that they believe that real estate commissions are too high. After all, why should someone pay 6% of the selling price of their property when the sales agent may have spent less than 20 hours dealing with the listing? Six percent of $200,000 is $12,000. For 20 hours of work, that's $600 per hour.

From the seller's perspective, the commission amount seems huge. But real estate transactions involve several people, each of whom gets a piece of the pie. While the pie seems big, sometimes it ends up in lots of little pieces. Let's look at the commission from that end.

Under Florida's real estate law, licensed real estate Sales Associates (agents) must work under the direction of a Licensed Real Estate Broker. Typically, agents are independent contractors, not employees of the broker. Still, the broker is ultimately responsible (and liable) for the agent's actions. Any listing agreement is between the property owner and the broker (not the agent) even though the agent secured the listing.

Sales commission distributed at closing is paid directly to the brokers. Sales agents cannot receive commission directly. The Broker, in turn, splits the commission with their agent on a negotiated percentage specified in an agreement between the broker and the agent. There is no set rule for the split, but the agent usually receives between 50% and 75% of the commission paid to the broker. Several factors determine the percentage:

Some brokers provide support services such as office space, desk, phone, office supplies, stationary, advertising, clerical assistance, administrative assistance through the closing process, computer work stations, etc. They may also subsidize some of the agent's related expenses such as E&O (Errors and Omissions) Insurance, postage or copying expenses. Such brokers usually keep a bigger slice of the pie.
Others provide little support. Some even charge a desk fee or a transaction charge for each sale. But these brokers usually give agents a larger split.
Some agents are more experienced and/or have a large stable of clients and proven track record. They typically can negotiate a better split arrangement with their broker.

Most listing brokers agree to cooperate with participating brokers, usually offering half the listing commission to the broker who's agent brings a buyer to the table. This practice helps expose the seller's property to the maximum number of potential buyers.

Let's take a simple example. Assume the selling price is $200,000 and the negotiated commission rate is 6%. In this example, the agent for the listing broker shares in 50% of the broker commission while the agent for the buyer's broker receives 70%.

**Distribution of Real Estate Commissions**
Total Commission	$12,000
Seller Broker @ 50%		$6,000
Buyer Broker @ 50%		$6,000
Seller Broker @ 50%			$3,000
Seller Agent @ 50%			$3,000
Buyer Broker @ 30%			$1,800
Buyer Agent @ 70%			$4,200
Totals	$12,000	$12,000	$12,000

Now let's add a twist. The buyers did not make the initial contact with the buyer agent. As often happens, the buyer was referred to the agent by another agent (a referring agent). In that case, the referring agent's broker and the buyer agent's broker agree on a referral fee (another commission split). Although individually negotiated, the most common referral fee is 25%. That means that if the referral results in a completed sale, the buyer broker pays 25% of the commission received to the referring broker. Each, in turn, split their share with their respective agents (buyer agent and referral agent) based on their respective commission split agreements.

Take the same example above but add the referral to the buyer's broker. The referring broker gives the referring agent 60% of any commissions. Here's what happens.

**Effect of Referrals on Commission Distribution**
Total Commission	$12,000
Seller Broker @ 50%		$6,000
Buyer Broker @ 50%		$6,000
Seller Broker @ 50%			$3,000
Seller Agent @ 50%			$3,000
Buyer Broker @ 75%			$4,500
Referral Broker @ 25%			$1,500
Seller Broker @50%				$3,000
Seller Agent @50%				$3,000
Buyer Broker @ 30%				$1,350
Buyer Agent @ 70%				$3,150
Referral Broker @40%				$600
Referral Agent @ 60%				$900
Total	$12,000	$12,000	$12,000	$12,000

It can get even more complex. Sometimes different referral brokers and agents are involved with each end of the sale, the listing and selling end. Worse yet is the situation where the buyer announces at the time they are about to sign the sales contract that they are a licensed real estate professional and they want a piece of the commission. Sometimes another agent is injected into the process to cover for the regular agent (who may be sick of out of the office). The assisting agent may feel that they contributed to the sale and should receive some compensation. Need I say more? And then there's the lender willing to approve a short sale only if the overall commission rate can be renegotiated to a lower level. Or the seller who wants the broker to absorb some of price his/her price concession.

And then there are the expenses, including but not limited to the following:

Local association dues - $336 annually
National association dues - $545 annually
Health Insurance - My premiums and co-pays average more than $1,100 per month as an individual (yes, I'm older than average)
Advertising and business cards
Postage - a 1500 piece mailing costs approximately $1500 including stationary, envelope, and postage (exclusive of labor)
Stationary and office supplies
Computers and software
Automobile expenses (including gas, insurance, maintenance, etc.)
Other association dues (Chamber of Commerce is $200)

Of the licensed real estate agents in Flagler County, FL about 1,200 are dues paying members of the local Association of Realtors®, which would classify them as active (at least in a part time sense). During the first four months of 2008, a total of 567 real estate sales transactions (all types of properties) were reported by the Flagler County MLS. The total value of these transactions was $130,733,453. At 6%, these sales would have generated $7.844 million in total commissions. Assuming agents receive, on average, 60% from their brokers, they would have collectively received commissions totaling $4.71 million. Divided equally among the 1,200 agents, each would have received a total of $3,922 in four months. And don't forget the expenses.

Seldom do people spend more money on an item than when they purchase their home. But few know much about the process and intricacies of buying and selling property; disclosures, contract terminology, inspections, title insurance, legal obligations and liabilities, pro-rating taxes, association fees, escrow, mortgage options, CCRs, deed restrictions, etc. Most also are unaware of how real estate sales people are compensated. They don't get paid to do a comparable listing analysis of your property, to list your house, to advertise and promote it, or to hold open houses. They don't get paid to search for and preview property meeting your requriements, schedule showings, or to drive you around to show properties. They only get paid IF a transaction happens.

As in any business, some of the players are not very competent while others are exceptional. Some work 7/24 while others hardly work at all. Take time to learn how to tell the difference. Then treat YOUR real estate professional as you would treat any other trusted business associate. Trust me. They will earn their commission.

I am strictly a referral agent. Whether my readers are buyers or sellers, I help them find that "right" agent. They will take good care of you while I concentrate on GoToby.com. Don't hesitate to call me (386) 931-7124.

The Lubert-Adler Connection – Where does Bobby Ginn's Development Money Come from?

Toby Tobin (GoToby.com LLC) — Wed, 16 Apr 2008 06:30:53 -0500

I just finished covering the Ginn Championship at Hammock Beach. The tournament is part of the PGA Champions Tour. This was the second year Bobby Ginn's Ocean Course at Hammock Beach hosted the event. As a response to the downturn in the real estate market, Ginn made some changes from last year. The blimp was gone. It's now owned by Direct TV. The number of volunteers was down a little; as was the compensation package they were given. The Saturday night Smokey Robinson concert was limited to Ginn Club members only.

But the tournament did not suffer a bit. By all accounts, it was even better than the inaugural tournament last year. The pros were consistent in their praise for both the venue and the atmosphere surrounding the event. And the Ginn Company reportedly sold 4 of the Hammock Beach Tower condominiums for prices between $1.4 and $1.6 million each and has contracts "working" on two more.

There are signs locally that Ginn is cutting back in response to the present real estate slump. The lobby, restaurant, and ships store of the Admiral's Cove condominium at Yacht Harbor Village in Palm Coast remain unfinished. The Gardens at Hammock Beach along John Anderson and the Intracoastal Waterway shows little signs of construction activity. And there have been staff reductions. But amid persistent rumors of Bobby Ginn's financial demise, the company keeps plugging along.

I recently uncovered some information regarding the relationship between Ginn's Company and the Lubert-Adler Fund, his long time funding source. The relationship extends beyond that of lender and borrower. An undated document attributed to Lubert-Adler, reports that they own 50% of The Ginn Company and 80% of each project. It also states that the Ginn Company is the only residential asset in the fund and is the largest component and best performing asset in the fund over the past 10 years.

Institutions reported to be investors in the fund include:

Wells Fargo
Kodak retirement plan
Duke University
Harvard University
Princeton University
Pennsylvania State Teachers fund
Ohio Police and Fire
City of Philadelphia

Since it was founded in 1997 by Dean Adler, Lubert-Adler has invested in over $15 billion in real estate assets, according to its website. The website lists several of Ginn's properties in their portfolio but there is no mention of Ginn's biggest project, Ginn Sur Mer on Grand Bahama Island in the Bahamas. Another project, The Gardens at Hammock Beach, was once funded by Credit Suisse. When they pulled their backing last year, Lubert-Adler stepped in to fill the void. Both Ginn and Lubert-Adler are private companies, making it difficult to get detailed and complete information, but the ties between the two are obviously strong and deep (as deep as Lubert-Adler's pockets). They can take the "long view" because they don't have to report to stockholders and financial analysts every three months as do WCI Communities and Centex, two large developers also active in Palm Coast.

Battle Mountain, Bobby Ginn's Billion Dollar Ski Resort Project near Vail is One Step Closer

Toby Tobin (GoToby.com LLC) — Thu, 20 Mar 2008 07:06:12 -0500

The last week of February, the Town Council of tiny Minturn, Colorado voted unanimously to annex 4300 acres of land on Battle Mountain owned by Ginn Resorts. Ginn plans to develop a billion dollar ski resort on the site. The annexation agreement includes a pledge by the developer of $180 million for improvements to the town's services and infrastructure. The 1,100 resident town's current budget is about $1.5 million.

The vote was preceded by two and a half years of planning and council meetings. Minturn, a sleepy former mining and railroad town long bypassed by Vail developers, bargained well. Ginn has pledged to:

Build affordable housing for 50 percent of the resort's future employees
Establish a scholarship fund for local kids
Provide money for Minturn to buy U.S Forest Service land within the town's boundaries
Clean up a toxic superfund site at a former mine nearby
Build a recreation center and bike path
Provide money for streets, sidewalks, lighting and water system upgrades

If additional approvals from the U.S. Fish and Wildlife Service and Environmental Protection Agency are obtained, the billion dollar project will proceed. Plans call for 1,200 acres of skiing, eight chair lifts, a gondola to link the base village to home sites and a golf course. The plan also involves construction of 1,700 luxury homes and condos worth an estimated $3.4 to $4 billion. Ginn reportedly purchased the land for $32.75 million.

The Palm Coast, Florida Housing Market May have Reached Bottom

Toby Tobin (GoToby.com LLC) — Thu, 20 Mar 2008 06:41:57 -0500

The Palm Coast, Florida housing market may have reached bottom. February stats continue a trend first noticed in January. In each month, the number of homes available for sale on MLS declined and the number of signed sale contracts increased.

My February newsletter showed that even though the number of closings in January was the lowest in several years, the number of homes for sale declined. Obviously the reason for the decline was not that homes sold. It was, in fact, because prices have reached a level where discretionary sellers decided that they would not lower their asking price to the prevailing market. Instead, they took their homes off the market. In the supply and demand world of real estate, the reason for the decline in inventory is not nearly as important as the decline itself. By the end of February, the number of unsold MLS listed homes had dropped to 2,200, down about 10 percent in just two months.

Sales are registered when a contract closes, usually 30 - 60 days after the sale contract is signed. January's low number of closings reflected the low number of sale contracts signed in November (72) and December (57). 122 sale contracts were signed in January, about the same number as in January a year ago and the highest number since April '07. The February number of signed contracts stands at 139. This number will rise over the next few days as late February contracts are reported. Also, there will be some attrition in the number as some contracts may not complete (close). Regardless, February will compare very favorably to last February's 102 signed contracts.

The effects of foreclosures on the market

For at least a year, we have been bombarded with facts and rumors about the number of homes in foreclosure. Foreclosures take time to work through the process. All foreclosures do not end badly. Sometimes, the borrower is able to catch up with payments or refinance, either with their current lender or with another. Eventually many properties do come back to the banks. "Eventually" happened just a few months ago when an increased number of bank owned properties entered the market.

In February '07, only one of the MLS reported home sales in Flagler County was bank owned. Even as late as October '07, the number of bank owned homes sold was only 4. In both January and February this year, bank owned properties represented 20 percent of the homes sold. Banks do not want to own property. When they find themselves in possession of foreclosed property, they market it aggressively (low prices) to assure that they move quickly. This accounts for the drop in median selling price from $209,500 in October '07 to a low of $161,500 in January. It also is the reason so many sellers withdrew their homes from the market. The median selling price for Flagler homes in February actually rose slightly to $169,000.

Painful as it is, it's good for the market. Bank owned homes that sold in February were "on the market" an average of only 95 days before a sale contract was signed. This compares to 158 days for non-bank owned properties sold that month. The median selling price for bank owned homes in February was $160,000, slightly below the overall median of $169,000. Indicating that financing is still available, 17 of the 139 February contracts actually closed the same month. The 103 homes closed in February represent the highest monthly number of completed sales since August '07.

The Parade of Homes (March 1 - 16), kicks off the traditional peak selling season for the area. The process of flushing the market of "distressed sale" homes has already begun. The numbers of pending sales for single family Flagler County homes stands at 254, more than double the number of only a few months ago. The Parade of Homes should add additional momentum to the market.

Baby Boomers and Reverse Mortgages, another Perfect Storm for Lenders

Toby Tobin (GoToby.com LLC) — Thu, 21 Feb 2008 11:41:33 -0600

Since the subprime loan sector is shut down, the mortgage industry is looking for new products to sell, products with less risk and with a broad appeal. With the baby boomer generation reaching retirement, the industry will find the perfect product in the reverse mortgage. Many have heard about reverse mortgages, but most don't really know what they are.

With a standard "forward" mortgage, a buyer borrows money to be used to purchase a home. It is also known as a "declining debt" loan. The loan amount is equal to the purchase price minus any down payment. At the onset, the down payment represents the total equity the owner has in the home. Amortized monthly payments made to the lender consist of both interest and principle. As the principle is paid down, the owner's equity rises. It also increases as the property appreciates over time. The loan amount declines while equity increases. When the final payment is made, the loan balance is zero and the owner's equity equals the current value of the home.

Just as when you look into a mirror, your right hand appears to be your left hand, a "reverse" mortgage is a mirror image of a forward mortgage. In the beginning, the homeowner has equity. This equity is used to get cash. With a reverse mortgage, the owner makes no payments. Interest accrues to the balance of the note. This is why reverse mortgages are also known as "rising debt" loans. The loan is repaid when the house is sold or the homeowner dies. Any sale proceeds in excess of the loan balance go to the owner or owner's estate.

With either type of loan, the borrower maintains title to the property.

The proceeds of a reverse mortgage are typically received as periodic payments, but can also be received in a lump sum or as a credit line against which the owner may draw as needed. Proceeds may be used for any purpose. They are commonly used to pay off an existing mortgage, to fund home repairs, to pay for long term care insurance, or to pay off debts. The loan balance increases with each cash payment to the homeowner and as interest accrues. Unlike a forward mortgage where income is a key determiner for approval, a reverse mortgage approval depends on the amount of equity and the owner's age. The older you are (you must be at least 62) and the more equity you have, the more cash you can get. Since the owner makes no payments, income is not required.

The loan amount can never exceed the value of the home. The home's value represents a non-recourse limit. The lender cannot take recourse against the owner or the owner's heirs for any deficiency that results when the sale price is less than the loan balance. With a reverse mortgage, the declining equity may be partially or totally offset by appreciation in the property's value. Monthly loan advance - $1,000iginal home value - $200,000

Why is the mortgage industry likely to exploit the reverse mortgage market? There are trillions of dollars locked up in homeowner equity and an aging population. Unlike subprime mortgages whose risks become apparent during the initial years of the life of the loan, reverse mortgage risk is back-ended. Risk becomes evident only later in the loan's life when the loan balance approximates the property's value.

Notes of caution:

Beware of efforts to sell reverse mortgages for the sole purpose of buying another financial vehicle. In one case a salesman talked an 80-year-old lady into getting a reverse mortgage to fund a deferred annuity. Annuities typically provide the seller with a high commission but may not make payments for years. She would have had to wait until her 100th birthday to see a cent of her money.
Loan costs are high. AARP reports that a 74 year-old borrower with a $300,000 home (equity) would pay about $30,000 in fees. This is likely to come down as more competitors enter the market.

As with any major financial decision, be informed, ask questions, and seek qualified advice. And educate your parents.

Toby Tobin is a real estate commentator and Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast, Flagler County and Northeast Florida

Bobby Ginn’s $3.7 Billion Ginn Sur Mer Project in the Bahamas is Ahead of Schedule

Toby Tobin (GoToby.com LLC) — Thu, 21 Feb 2008 11:35:14 -0600

Amid an anemic domestic market and news of other developers facing financial crisis, Ginn Resorts presses on with their Ginn Sur Mer project at West End, Grand Bahama. The company released details on the project's progress at a press tour in late January. Bobby Ginn and John Davies, senior vice president of development offered their comments.

When built out, Ginn Sur Mer will include 4,400 condominium and hotel units, centered on a 20-story tower, 870 single family residences, Jack Nicklaus and Arnold Palmer signature golf courses, two large marinas able to handle mega-yachts, a casino, swimming pools and water park facilities, a beach club, salon and spa, restaurants, shops, and a private airport featuring a 5,500 foot runway and on-site customs. Sales are benefiting from favorable foreign exchange rates and the increased interest in the Bahamas. (site map)

Of the $3.7 billion budgeted for the project, the developer has spent about $150 million.
About 70% of the 2,000-acre site has been cleared over the past two years.
Ginn Sur Mer should be operational in five years in its core facility with amenities and real estate sales continuing to go on for years. Construction of 375 units is expected to begin in early summer of this year.
In many places, elevations were increased by up to ten feet, using fill from canals dug throughout the site. Canals are being constructed much deeper than necessary for boating traffic in order to obtain the added fill.
The several thousand acre site, contaminated in some spots by a former developer, will be properly drained and filled back in. Wetlands will be restored and environmental debris cleaned up.

"The first vertical construction you are going to see are the condominiums, the bungalows at the core," said Davis. "Later next year, you'll start to see our residences being built. It's going to be about nine months to a year to get all the utilities and the roads into where people can start building on the lots. We've sold well over 200 lots at this point and we have a lot of people who want to start building right now."

When discussing the company's commitment to the growth and development of the West End, Grand Bahamas economy, Bobby Ginn said, "There is a trickle down effect. Thousands of units in this property will be sold to people who are going to take possession of not only the piece of property they've got but also the community they've got, and the effect of that is a lot of jobs."

The project currently employs 230 Bahamians. At the peak of construction, this number is expected to grow to 3,700. More than 4,000 permanent jobs will be created.

Toby Tobin is a real estate commentator and Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast, Flagler County and Northeast Florida

Lower assessments and higher property taxes - it can happen in some Florida counties next year.

Toby Tobin (GoToby.com LLC) — Wed, 21 Nov 2007 12:09:43 -0600

Palm Coast, FL - I had an interesting meeting with Jay Gardner, Flagler County's Property Appraiser a few days ago. Our discussion dealt, in part, with Palm Coast and Flagler County's declining property values and the effect the decline might have on individual property taxes next year. Many counties in Florida will experience the same problems next year.

The Property Appraiser's job is to determine each property's just (market) value. To do this, his staff examines sales of "comparable" properties. By state law, each year's tax roll is determined by sales the previous year. Thus, each property's just value for the 2007 tax roll is based solely on comparable sales in 2006. Most of the decline in property values occurred since the first of this year so the effect will not be felt until the 2008 tax year. Following are some examples of Flagler County's declining property values.

In January 2006, the median price for a Palm Coast lot (exclusive of salt water canal lots) was $77,000. By the end of 2006, it had dropped to $62,500. In the most recent three months, the median sales price was down to $40,000.
The January 2006 median sale price for a single family residential home was $252,250. It dropped to $229,500 by December. It was $209,500 last month.

With your property's just value dropping, you might think that your property taxes will go down as well. Not if you are homesteaded. Your property record indicates four different values:

Just value - roughly approximating market value
Assessed value - generally lower than just value for homesteaded properties because increases in assessed value are limited to the increase in the consumers' price index (CPI) or three percent, whichever is less. For non-homesteaded properties, the assessed value equals the just market value.
Exempt value - $25,000 for homesteaded properties. Other exemptions may also apply.
Taxable value - assessed value minus exempt value.

The table below shows my house (homesteaded) compared to my house without the homestead exemption. We moved into our home in 2001, so the homestead exemption applied as of January 2002.

**Homestead vs. Non-homestead Valuation**
	Homesteaded	Non-homesteaded
Just Value	$399,901	$399,901
Assessed Value	296,321	399,901
Exempt Value	25,000	0.00
Taxable Value	271,321	399,901

The assessor does not set the tax rate. He only determines the total taxable value of all property for each taxing district in the county. The various taxing districts (county and city) determine their individual budgets. Each district's millage rate is derived by dividing their budget by the total taxable value (within the district).

Over the past seven years, homesteaded property owners have been shielded from the huge increases (442%) in both city and county budgets. That's because the huge budget increases were matched by huge increases in the total taxable value, both from increases in the value of existing non-homesteaded property and from new construction.

**Flagler County Taxable Value**
Year	Taxable Value
2000	$2,756,505,596
2001	3,210,315,937
2002	3,745,981,194
2003	4,553,698,418
2004	5,785,625,646
2005	7,932,905,478
2006	10,958,081,820
2007	12,184,917,324

In a simplified example, let's assume that next year's budgets are the same as this year. If everybody's taxable value dropped by the same percentage, the result would be no change in your tax bill. That's because the millage rate would rise so that everyone would be paying the same amount as this year. The real world is not a simplified example, however.

The taxable value of a non-homesteaded property will drop by the same amount as its just value, which also equals the assessed value.
For homesteaded property, assessed value can still increase up to 3% even while just value falls as long as it remains equal to or less than the just value . Your taxable value and taxes can rise even though your propery is declining in value.

How would a 10% decrease in overall assessed value effect homesteaded vs. non-homesteaded prooperties? Let's look at my house again to see. Note that the assessed value can rise by 3%.

**Homestead vs. Non-homestead after Just Value Decrease**
	Homesteaded	Non-homesteaded
Just Value	$359,911	$359,911
Assessed Value	305,211	359,911
Exempt Value	25,000	0.00
Taxable Value	280,211	359,911

The homesteaded taxable value rose while the non-homesteaded taxable value dropped. Even if the millage rate remained unchanged, my taxes would increase. For the millage rate to remain unchanged, the city and county would have to decrease their budgets by 8 - 10%. This is unlikely. Thus, we homesteaders can probably look forward to a combination of increased millage rate (taxes) and reduced government services. This might be what it takes for government officials to realize the importance of an industrial and commercial tax base.

Toby Tobin is Editor & Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast and Flagler and Volusia counties in Northeast Florida

PMI, The Mortgage Industry’s Dirty Little Secret

Toby Tobin (GoToby.com LLC) — Tue, 30 Oct 2007 09:22:18 -0500

Private Mortgage Insurance (PMI) has long been touted as a benefit that allows borrowers to purchase property with less than a 20% down. But who is the real beneficiary of PMI? We are all told that PMI is insurance that pays the lender if we default on our mortgage. While true, this does not tell the whole story. There is a lot that we are not told.

If PMI is a condition of a mortgage, here is what the lender must disclose:

As part of a "good faith" estimate of closing costs, the lender must provide an estimate of the PMI premium.
At closing and annually thereafter, the lender must notify the borrower of available cancellation options. In most cases, PMI may be cancelled when the mortgage is paid down to 80% of the lower of the selling price or the original appraised value. It will usually be cancelled automatically when the amortization of the loan takes the mortgage balance down to 78%.

Among the things most people do not know:

The borrower is not a party to the mortgage insurance policy. The lender does not have to disclose either the name of the insurer or the amount of the insurance purchased. Yet the buyer typically is responsible for the premiums.
Lenders can purchase protection for up to 30% of the mortgage amount without disclosing to the buyer any more than the premium. For example, you buy a $200,000 home with a 10% down payment of $20,000, financing the balance with an $180,000 mortgage. The lender can protect up to 30%, or a total of $54,000, with mortgage insurance with the buyer paying the premium.
The PMI insurer can pay anyone along the transaction line for services rendered that either reduce the risk of the loan or reduce the insurance company's expenses. This implies that they can pay commissions to the lender. Understand that it comes out of your pocket.
The monthly premium for most PMI is fixed. In other words, as the balance of the mortgage declines, presumably along with the risk to the lender, the borrower continues to pay the same premium based on the risk assessment at the time the loan was originated.
While many lenders will consider allowing the buyer to cancel PMI when the value of the property rises so that the 80% loan to value ratio is achieved, they are under no obligation to do so. In my experience, the lender required that I pay for an appraisal done by an appraisal company selected by the lender. Also, the borrower must usually provide proof there is no second mortgage on the property. Cancellation may require a waiting period and a good payment history.
The lender can purchase PMI, for which they pay the premiums, without notifying the borrower. Funds for these premiums may come indirectly from the borrower in points or increased interest.

PMI premiums are not insignificant. I looked at a loan statement for one of my recent investment properties. On a loan of approximately $200,000, the monthly principal and interest payment was $1,124.93. The monthly PMI was $163.53, or 15% of the P&I. Yet I never knew how much insurance this was buying or from whom. Had I carried this property the 10 or so years requried to reduce the mortgage balance to 78% of the purchase price, I would have paid over $19,000 in PMI premiums (nearly 10% of the original loan amount).

In the many recent articles on the subject, borrowers are urged to contact their lenders immediately when they run into financial trouble or feel they will be unable to keep their mortgage payments current. They stress that working out an arrangement with your lender is far better than going through foreclosure. Even if foreclosure is inevitable, industry sages recommend working with the lender to facilitate a "short sale," where the selling price is less than the mortgage amount, thus avoiding the stigma of a foreclosure.

Do you think the fact that the lender is protected with a PMI policy will make them more or less likely to work with the borrower? Why would they offer the buyer extended or more favorable terms or allow a short sale when they need only foreclose to collect their insurance? Isn't it ironic? You could have paid thousands for coverage that helped pit your lender against your best interests. "A banker is someone who will loan you an umbrella, but who wants it back when it rains," said my father.

Toby Tobin is Editor & Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast, Flagler County and Northeast Florida

Amid a Lousy Real Estate Market, Law Suits, and Rumors, is Bobby Ginn Imploding? Not from My Viewpoint.

Toby Tobin (GoToby.com LLC) — Thu, 04 Oct 2007 19:26:28 -0500

October 4, 2007 - Palm Coast, Florida - Over the past few months, things in Bobby Ginn's world seem to have been disassembling. Bobby now faces a total of seven law suits; two related to his real estate empire and five to his personal foray into and embarrassing exit from NASCAR racing. Some property owners at The Conservatory at Hammock Beach, mostly investors, are rattling sabers because they find themselves unable to flip lots purchased at the market's peak. Ginn has a new president, Robert Gidel, who, not coincidentally, has very close ties to Lubert-Adler, Ginn's longtime funding source (story). Gidel will be responsible for all aspects of the day-to-day management and operation of Ginn Resorts. Most recently, Credit Suisse pulled back its financial support for The Gardens at Hammock Beach, his latest Intracoastal golf community in Flagler County. And sales at projects under development are sluggish, a dramatic departure from the former days of "pre-sold with a waiting list."

This flood of unwelcome news, fueled in part by a lack of solid communications coming from the Ginn organization, caused a lot of consternation among Ginn club members, property owners and Ginn watchers. But communications have started to flow and, from where I sit, things look a lot better than the impending train wreck forecast by Ginn detractors.

Lubert-Adler stepped in to take over funding for The Gardens (story). In fact, Ginn has renewed activity there, taking a look at fine tuning development plans to allow a phased opening better suited to today's market conditions. Lubert-Adler's relationship with Ginn goes back much further than Ginn's relationship with Credit Suisse. They better understand the long term development cycle of large projects and the interruptive effects of intervening market conditions. They have supported the recent acquisitions of Bulow Shores (story), a prime Intracoastal property near the Gardens and the BriarRose Community near Atlanta (story).

Communications have begun to flow. Ginn met with Conservatory property owners (story) and began measures to enhance marketability of their properties. These measures include temporary incentives (offsets towards club dues and property owner's association fees) to encourage residential construction. Bobby Ginn recently communicated directly with club members and property owners (story) to update them, including the announcement of the new president and additions at other executive level positions. Most importantly, he stressed that construction activity continues at all Ginn projects. And finally, three months after his appointment, a press release yesterday announced Robert Gidel as the new President of Ginn Resorts.

I'm not trying to put a pretty face on things. The market is really tough. In the past, Ginn could rely on buyers drawn from the community of real estate investors and speculators, many of whom had profited in early Ginn projects. With quick appreciation no longer likely, they have moved to the sidelines. He will need to learn how to sell to a totally different buyer - the end user, the person who will actually build a house and live on the property. Unlike the investors, these buyers cannot be counted on to follow Bobby from one development to the next.

There will also be much pain and many personal tragedies. The Conservatory will long be cited as the benchmark of what can happen at the top of the market, when irrational exuberance creates prices that are too high and when speculative investors cannot find buyers willing to pay yet higher prices. The music stopped and there were no chairs. I visited The Conservatory today. There are yet no resale transactions. The market has not found a price level where buyers are willing to step in, but this development has a lot going for it. The golf course and soon to be completed clubhouse are magnificent. Once the market determines the true value (price) of the lots, transactions will start to happen. Though narrow, all lots are well positioned with nice views. The Conservatory is a fiber optic community. The property owner's association fees include, phone, data cable, security monitoring, landscape maintenance, and irrigation. This will be a nice place. Unfortunately, most of the people who build here will pay less for their lots than the people from whom they buy them.

I imagine there were some "come home to Jesus" meetings between Bobby and his financial backers. If so, these meeting succeeded to the extent that they played a roll in Bobby's retreat from NASCAR, the appointment of a new president with vast industry experience and ties to Lubert-Adler, the new marketing and sales management team, and a comprehensive communications strategy to assure property owners and quiet rumors. Bobby remains the face of the company as Chairman and CEO as well as its visionary. With his attention refocused on executing his vision, backed by a solid management team and committed financial backers, things in Bobby Ginn's world may start looking up. Let's all hope so. The contributions of Bobby Ginn's developments, sporting events, and charitable giving to the Flagler County economy are immeasurable.

Toby Tobin is Editor & Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast and Flagler and Volusia counties in Northeast Florida

Sawmill Creek in Palm Coast, Florida

Toby Tobin (GoToby.com LLC) — Sat, 15 Sep 2007 19:32:29 -0500

Sawmill Creek, approved as a planned residential community of over 1000 acres, is in the final planning and permitting stages. Sawmill Creek is located in the northwestern section of Palm Coast Park, west of US 1 south of I95 and north of Matanzas Woods Pkwy. The Planned Unit Development (PUD) agreement for Sawmill Creek allows for 1,469 residential units (single family and town homes, 50,000 square feet of neighborhood retail and office space, a 10-acre park and space for a school. A Jim Furyk designed golf course will be included in the first phase of the development. Michael Beebe is co-designer of the course. Construction may begin as early as mid-2007. The golf course is expected to be completed by the end of 2008.

The developer is Lowe Destination Development Palm Coast North, LLC, a branch of Lowe Destination Development, which is, in turn, a subsidiary of one of the nation's leading real estate services companies, Lowe Enterprises. Lowe has a long history in Palm Coast, developing several properties including Grand Haven (now being developed by LandMar), Ocean Hammock, and the Ocean Hammock Golf Club (sold to Centex and now owned by The Ginn Company). At one time, Lowe also owned and operated Cypress Knolls, Pine Lakes, Matanzas Woods, and Palm Harbor golf courses, as well as the Palm Coast Resort. Lowe is actively seeking plan approvals for other commercial projects in Palm Coast.

Concept Development Plan

Toby Tobin is Editor & Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast and Flagler and Volusia counties in Northeast Florida

Palm Coast Park, a Multi-Use Flagler County Development

Toby Tobin (GoToby.com LLC) — Sat, 15 Sep 2007 18:38:47 -0500

Palm Coast Park is a 4,700 acre multi-use development stretching along a 6 mile segment of US Rt 1 in the City of Palm Coast, with development tracts available for commercial, including big box retail; light industrial; business park and various types of residential, including single-family and multi-family. The site extends from Palm Coast Parkway to Old Kings Rd along US Rt 1.

Development approvals are in place for the following land use entitlements:
Residential - 3,600 units
Commercial/Retail - 800,000 sf
Office - 800,000 sf
Industrial - 800,000 sf
Institutional - 100,000 sf

The first residential homes within the project area will be started in late 2006. The developer, Palm Coast Holdings, projects a 15 year build-out for Palm Coast Park. Bisected by US Rt 1, Palm Coast Park boasts 10 miles of Rt 1 frontage, with easy access to I95, both north and south. Rail access on the west side of the property enhance the prospects of attracting commercial development. As with Palm Coast Holdings other major project in Flagler County, Town Center, this project offers a combination of residential and business locations organized with a neo traditional downtown.

Two developers of residential property have acreage under contract. LandMar Group, the developer of Grand Haven selected tract 5, the land east of RT 1 and north of the Matanzas golf course. Under the terms of the sales contract, LandMar Group will pay approximately $7.5 million for the property. The sale is expected to close in stages over the next three years, with the first phase expected to close by the end of 2006. LandMar plans to build a 500 to 600 unit residential development on the site, tentatively named Grand Woods.

The second residential developer to step in is LDD Palm Coast North, LLC, a branch of Lowe Destination Development, which is, in turn, a subsidiary of one of the nation's leading real estate services companies, Lowe Enterprises. Lowe plans to create an upscale residential golf course community named Sawmill Creek. The development will include 1,459 residential housing units, a championship golf course, and neighborhood retail and office space, along with a community park and school site. Sawmill at the Park will be marketed by Lowe to both baby boomers and primary residents. Under the contract, the land will be purchased in four phases, with closings to occur in 2007 through 2009. Lowe has opted for the northern portion of Palm Coast Park west of Rt 1 (tracts 6 - 10 and 16).

Tract 1 will be developed by Parc Vue Communities as an affordable condominium project.

Palm Coast Holdings has begun infrastructure improvements for a commercial site on the west side of Rt 1, opposite Matanzas Woods Pkwy.

The Palm Coast Park Community Development District has issued special assessment bonds totaling $31.8 million to fund all master infrastructure improvements at Palm Coast Park. Bond proceeds of $26.3 million will be used for construction of environmental, traffic mitigation and infrastructure improvements, including utility extensions, roadways, parks, drainage, recreational facilities, landscaping and a multipurpose trail system. Development costs funded by ALLETE Properties, the parent company of Palm Coast Holdings, will be minimal. The 4,700-acre development is located in Flagler County, Fla. At June 30, 2006, pending land sales totaled $64 million and included the rights to develop approximately 2,500 residential units and the rights to build up to 50,000 square feet of commercial space.

Toby Tobin is Editor & Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast and Flagler and Volusia counties in Northeast Florida

City of Palm Coast Approves Contingent Agreement to Acquire Palm Harbor Golf Course from Centex

Toby Tobin (GoToby.com LLC) — Fri, 14 Sep 2007 16:51:31 -0500

September 6, 2007, Palm Coast City Council unanimously approved an agreement to accept Centex's contingent donation of the Palm Harbor golf course. As disclosed in earlier articles, Centex desires to amend the existing Development Orders (DO) for the Harborside Inn and Marina to enhance the property's marketability. The requested changes were not detailed at last night's council meeting but previous information meetings disclosed that Centex was looking for the following changes to the Development Orders to gain additional flexibility:

Downsize the two remaining condominium buildings
Optionally allow the condo/hotel to be a standard hotel
Extend the DO by a period of two years

The requested DO changes have been submitted to the city for review and processing according to existing procedures. The agreement stipulates that the transfer of title to the city will take place within 30 days following the approval of the DO changes. If the changes are not adopted, the agreement may be terminated by Centex at their sole discretion.

Palm Coast plans to renovate the golf course and operate it as a municipal facility. The agreement also allows the city to lease the practice range property. However, Centex maintains ownership as well as the right to develop it in the future in accordance with a PUD agreement.

In a phone interview, City Manager Jim Landon disclosed that the Develoment Order changes have already been filed. They essentially include the above items. There are two separate Development Orders, one for the resort/marina side and the other for the golf course side. The proposed term extension will be five years from adoption. Since the DOs are about 2 1/2 years old, this will constitute a 2 1/2 year extension. The requested changes include, by request of the city, provisions to promote the earliest construction of a hotel. As ordinance amendments, they will be reviewed by the planning department on Sept. 19 followed by a first reading by city council on Oct. 2 and a second reading on Oct. 16.

Toby Tobin is Editor & Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast and Flagler and Volusia counties in Northeast Florida

Ed Burr, LandMar Founder and CEO Resigns

Toby Tobin (GoToby.com LLC) — Fri, 14 Sep 2007 10:51:11 -0500

LandMar CEO, Ed Burr, was unsuccessful in a recent attempt to negotiate his purchase of Crescent Resources' controlling interest in the company he founded in 1987, so he has decided to leave. Burr will be replaced by Dan Kohlhepp, president of Crescent Resources' commercial division. Details of Burr's offer to Crescent were not made available.

LandMar develops communities primarily in the southeast U.S. as well as in Texas and Arizona. They are one of Flagler County's largest developers with several projects:

Grand Haven - LandMar purchased the Grand Haven development from the original developer, Lowe Enterprises when it consisted of fewer than 200 homes. Today, it has nearly sold out Grand Haven's 1904 properties. The Grand Haven Golf Club is owned by Crescent Resources and operated by Hampton Golf.
Grand Landings - A new development located south of the Flagler County airport, this community will boast a stadium court tennis facility. Plans also include a Pilot's Club and a fly-in community.
Grand Reserve - Still in the permitting process, this residential community will straddle Roberts Road east of Colbert Lane, adjacent to the old Lehigh Cement Plant.
Grand Woods - Part of the Palm Coast Park, a large multi-use development along US route 1, this planned 500 - 600 home residential community borders the Matanzas golf course.
The Grand Club - Three golf courses, The Pines Course, Matanzas Course, and Cypress Course are owned by The Grand Club LLC, which shares the same Jacksonville address with LandMar. These courses are also operated by Hampton Golf.

Crescent Resources, based in Charlotte, N.C., was once the real estate arm of Duke Energy Corp. Duke Energy has since shed its controlling interest in Crescent Resources (story), which currently operated as a joint venture with Duke Energy, Morgan Stanley Real Estate Fund and the company's management.

Toby Tobin is Editor & Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast and Flagler and Volusia counties in Northeast Florida

Ginn Company Purchases Bulow Shores – Intercoastal Property Once a Centex Project

Toby Tobin (GoToby.com LLC) — Tue, 11 Sep 2007 08:20:06 -0500

In April, I heard that Bobby Ginn purchased the Bulow Shores development from Centex Destination Properties (CDP). I contacted a Ginn spokesperson to confirm the story. He said he would check it out and get back to me. He never did, so I posted it as a rumor. Well, now it's news.

Locator Map

According to public records, Ginn Bulow Shores LLC purchased the property from The Von Bulow Corp in April. Centex was marketing the project but had not completed the purchase of the property. I understand they had accepted reservation deposits. The 243.9 acre tract sits astride John Anderson running to the Intracoastal Waterway on the east and Bulow Creek on the west. Records show the sale price was $14.5 million. This amount likely does not include payments between Ginn and Centex.

The Gardens at Hammock Beach, a large private golfing community, also being developed by Ginn, is a short distance north of Bulow Shores. Two developments so proximate and sharing amenities will be an advantage for the Ginn marketing team. The first phase of The Gardens was released this spring. Since then, only fourteen lot sales have been recorded on the Property Appraiser's website, reflecting the changing market. This is a far cry from Ginn properties that sold out in one day only a few years back.

Toby Tobin is Editor & Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast and Flagler and Volusia counties in Northeast Florida

City of Palm Coast Approves Several Town Center Projects, Including a Boutique Hotel and an Exclusive Mixed-use Condominium Project

Toby Tobin (GoToby.com LLC) — Mon, 10 Sep 2007 19:38:51 -0500

August 27, 2007 - Palm Coast, Florida -Flagler County's the residential real estate market flounders but the commercial side shows strength. A few projects, such as the CVS on SR100 at John Anderson, have been put on hold. Epic's much anticipated multiplex movie theater/retail complex is apparently being set back. Informal discussions have taken place, but formal plans have yet to be submitted to city planners. Meanwhile, progress on the Town Center front is becoming apparent.

The final site plan for Golden Gate was approved. Golden Gate is a "boutique" hotel, with 80 plush guest rooms, meeting rooms, a fine dining restaurant, and shops. It will be located on Central Avenue, across from Central Park within Town Center's urban core.
City Center, a mixed-use complex with offices, retail space, a bank, and a stand-alone restaurant has been given final site plan approval. The restaurant will be sited overlooking City Center Lake, also within the urban core.
Another project receiving final site plan approval is Brookhaven; a single family (attached) residential community of 4-plex and 5-plex units. Brookhaven is located on lot 24, which runs between the east side of Bulldog Drive and Town Center Blvd. The site does not front SR100. A building permit valued at $807,606 was issued August 25th for the construction of Brookhaven's clubhouse.
City Place is another project that has received final site plan approval as part of the urban center core. City Place is mixed-use condo development featuring four architecturally unique buildings and a free-standing pavilion.
Developers of a Hilton Garden Inn anticipate final site plan approval on September 19th. They hope to commence construction near the northwest corner of SR100 and Town Center Blvd. in December.
McDonalds plans a new restaurant along the SR100 side of Palm Landings, the large scale retail center anchored by Target. They will be submitting their final site plan soon. The new store will be unique in design and signage, not their usual prototype store.
National City Bank will soon begin construction of a branch bank near the new Belle Terre Publix. The site is on the northeast corner of Belle Terre and Market.

Final site plan is only one of the several steps which a development project must pass, but it is nearly the last. Only a building permit is required for commencement of construction.

Toby Tobin is Editor & Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast and Flagler and Volusia counties in Northeast Florida

Ginn Resorts Enters Georgia Real Estate Market With Acquisition of BriarRose Community

Toby Tobin (GoToby.com LLC) — Thu, 16 Aug 2007 07:41:48 -0500

August 16, 2007 - Palm Coast, Florida - Ginn Resorts projects within Flagler County include Hammock Beach, The Conservatory, Yacht Harbor Village, The Gardens, and Bulow Shores. The Celebration, Florida based resort and real estate developer announced yesterday that it acquired the real estate holdings of Atlanta based developer, BriarRose Land Company. BriarRose Land Company is currently developing the BriarRose Hamlet, a 1,879-acre private country estate and club community located in the Oconee River Valley near White Plains, GA, 15 miles from Lake Oconee and Greensboro, GA. The Lake Oconee area is one of the fastest growing real estate markets in the southeast and is home to several upscale second home and resort communities.

"We are fortunate to have the opportunity to again work with Jeff Davis and his team with the acquisition of this picturesque property," said Bobby Ginn, chairman and CEO of Ginn Resorts. "It has always been our plan to expand to Georgia but only with the ideal location and community concept. The BriarRose will create a club lifestyle that preserves and protects the true nature of the countryside."

BriarRose Land Company Founder and CEO, Jeff Davis said, "Having the BriarRose become part of the Ginn Resorts family is extremely gratifying for me. Ginn Resorts has set a new standard for the lifestyle experience and club amenities that it delivers to its owners and members. And I look forward to teaming with Bobby Ginn as we both continue to make the BriarRose vision a reality." As part of the acquisition, Davis has accepted the position of president of Ginn Real Estate Company and will be overseeing the sales and marketing efforts of the company's nine communities.

The appointment of Davis to head sales and marketing follows by one month the arrival of Robert Gidel as the new Ginn Company President. Both moves signal a strategy to add to the depth of the Ginn management team. At the same time, the BriarRose acquisition signals that Ginn is still on the move, albeit selectively.

Upon completion, the BriarRose is planned to have significant amenities situated in a spectacular natural setting and with all the services of an upscale destination resort. The planned amenities include championship golf, equestrian facilities, spa/fitness, casual and fine dining restaurants, pool, tennis facilities, hiking and biking trails and recreational fields.

For information about the BriarRose community, please contact the BriarRose Story Center at (866) 763-7673, or visit http://www.thebriarrose.com/.

Toby Tobin is Editor & Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast and Flagler and Volusia counties in Northeast Florida

Sea Colony

Toby Tobin (GoToby.com LLC) — Thu, 09 Aug 2007 20:49:57 -0500

Sea Colony is a unique gated oceanside community located in the Hammock area of Flagler County, just north of the upscale Hammock Dunes, Ocean Hammock, Hammock Beach developments. Unlike its luxury neighbors to the south, Sea Colony is a quiet, laid back community of smaller homes, most less than 2,000 square feet. It offers a lovely beach, a community clubhouse and pool overlooking the Atlantic Ocean. Several small lakes offer great views, privacy, and fishing. Biking trails and county parks are close by. Described best as a quiet retreat, Sea Colony is situated just 15 minutes from St. Augustine near Palm Coast.

What makes Sea Colony particularly attractive is the value. 2006 and 2007 sales of non-oceanfront homes have typically been for less than $400K. The community is well landscaped and the homes well maintained. All sites are within walking distance to the beach.

Toby Tobin is Editor & Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast and Flagler and Volusia counties in Northeast Florida.

Town Center at Palm Coast - Mixed-Use Development

Toby Tobin (GoToby.com LLC) — Fri, 03 Aug 2007 16:11:57 -0500

Town Center is the largest and most significant real estate development underway in Flagler County, FL. Sited on 1500 acres north of SR 100 between I95 and Belle Terre Parkway, it combines business, residential, parks, government, and retail in a multiphase plan expected to be completed about 2020. Palm Coast Holdings, a subsidiary of Allete Properties, is the developer. Site work that began in the Spring of 2005 is nearing completion. The project is divided into 30 separate development tracts.

<Virtual Tour> <Tract Map>

Development approvals are in place for the following land use entitlements:

Residential - 2,500 units.
Commercial/Retail - 3,400,000 sf.
Office - 1,400,000 sf.
Lodging - 480 rooms.
Movie theater - 2,400 seats.
Nursing home - 240 beds.
Institutional - 625,000 sf.

There are currently 23 projects in various stages of planning and permitting:

Perimeter Commercial:

Publix anchored shopping center located at the primary Town Center entrance at Belle Terre Parkway. Developed by North American Properties, Inc of Cincinnati, it consists of the 80,000 sf Publix plus an additional 35,000 sf of available retail space. Open.
Federal Trust Bank.
Peoples First Bank.
Harbor Federal Bank.
Office condo project consisting of 6 buildings that total 40,000 sf.
Retail "Power Center" of up to 435,000 sf anchored by national big box retailers and smaller specialty retailers. The first to commit is Target. Target will construct one of their large format SuperTarget stores. A March '08 completion date is planned. Other retailers committed are PetsMart, Linens n Things, TJ Max n More, Michaels, and Ross Dress for Less
Mini-storage project consisting of 80,000 sf of personal storage space.
Mixed-use project with professional office space, up to 160 hotel rooms and an opportunity for a restaurant.

Urban Core:

Mulit-screen Epic Cineplex with adjacent retail village.
Mixed-use project with 100,000 sf of office, retail and restaurant space available for lease and for sale.
Boutique Hotel with 80 rooms and a fine dining restaurant.
Mixed-use project with 24,000 sf of office and retail space, and 100 luxury residential units.
Mixed-use project with 23,200 sf of retail commercial space, 40,100 sf of professional office space. The site plan also includes a 6,000 sf pad for a lakefront restaurant and a bank building with drive-thru lanes.
A two-phase mixed-use project that will include 300 residential condominiums, 30,000 sf of first floor retail space and 10,000 sf of office space.
Allure European Health Spa.

Medical Office:

A medical complex with 82,000 sf on Phase 1 and an additional 80,000 sf in future phases. This profect will be mostly owner-occupied by a group of local physicains.
A 16,000 sf retail and office center.
A 15,000 sf office/medical center.
A 27,000 sf office/medical condo project.

Residential:

An adult oriented residential project with 135 duplex/fourplex type units.
A residential project of up to 630 units that will offer condominiums, town homes and patio homes. This project will be built in phases. {November 11. 2006 - ICI Homes recently bought the first of three parcels of land in the town center for $3.1 million. ICI plans to build 196 residential units on it. It's the first of three phases of development that will cost a total of about $12 million and lead to the construction of 775 residential units - the largest number of units by a single developer in the Town Center.}
An independent living senior housing project consisting of 125 units.
Portofino Grande at Town Center luxury townhouse project with 124 units named . Units are 3 and 4 story with private elevators and rear entry to car garages. Three unit plans are being offered - the Verona <floor plan>, the Modena <floor plan> and the Lugano <floor plan> featuring - Luxurious floor plans, private elevator in each unit, hardwood floors, top of the line Italian cabinetry, granite and marble countertops. Multi-zoned, climate controlled air conditioning system. 2-car garages in every unit, private entry with winding staircase takes you to the 2nd level with an oversized living room, a balcony and a fireplace. There is an Italian kitchen with granite countertops and high-end appliances. The 3rd level consists of an oversized master suite with balcony, marble top vanities in master bath, and spacious walk-in closets.

Toby Tobin is Editor & Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast and Flagler and Volusia counties in Northeast Florida.

Hammock Beach - Luxury Oceanside Resort - Private Golfing Community

Toby Tobin (GoToby.com LLC) — Fri, 03 Aug 2007 15:59:32 -0500

Hammock Beach was the first of The Ginn Company's developments in Flagler County. Ginn purchased property from Lowe Destination Properties, the same folks that developed Ocean Hammock. It is located along the Atlantic shore in an unincorporated area known as The "Hammock.''

Hammock Beach has 213 single family homesites but the jewel of Hammock Beach is the 12-story resort condominium called The Club at Hammock Beach. The Club at Hammock Beach boasts two fine restaurants, a state of the art fitness center and spa, and a $6M swimming complex. This club and its amenities are available only to property owners and their guests. Many of the condos are in Ginn's rental program which operates the facility as a full service hotel. Property owners in Ginn's other Flagler projects, have the option to join the Club at Hammock Beach. As well, Hammock Beach property owners may join the other Ginn amenities such as the Tom Watson designed course at the Conservatory. In early 2007, Ginn purchased the Ocean Hammock Golf Course, which surrounds Hammock Beach, from Centex Destination Properties. This addition rounds out the amenity rich Ginn property. In March 2007, the course hosted the inaugural Ginn Champion Tournament.

The original structure was completed in 2003. Five floor plans range from 1782 SF to 3385 SF. Two additional towers are nearing completion as of 2007.

Toby Tobin is Editor & Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast and Flagler and Volusia counties in Northeast Florida.

Hammock Dunes - Exclusive Private Golfing Community

Toby Tobin (GoToby.com LLC) — Fri, 03 Aug 2007 15:52:50 -0500

Hammock Dunes is a private, gated community located on 997 acres along 1 1/2 miles of beach front in Flagler County, Florida. The upscale community combines estate homes, luxury oceanfront condominiums and two championship golf courses. In addition, a 2 1/2 mile long island in the Intracoastal Waterway affords the venue for Island Estates, a sub-community of luxurious homes, most in the $million plus category.

The equity club consists of two golf courses. The Tom Fazio designed Links Course is located on the barrier island within the Hammock Dunes compound. The Rees Jones Creek course is located among pristine creeks and marshes on the west side of the Intracoastal Waterway.

Most new development consists of luxury oceanfront condominiums developed by WCI.

The condominiums include:

Portofino - 58 condo units with private elevators, guest suites, and pool, billiards room, home theater.

Cambria - 60 condo units with 2 expansive penthouses from 2,340 SF to 3,283 SF. Amenities include a billiards room, humidor, wet bar, guest suites, grand theater, wine room, golf simulator, pool, fitness center, and luxurious spa.

Savona - 35 residents with use of Portofino amenities.

Casa Bella - total residents in three unit buildings, one condo per floor.

La Grande Provence - 2 mid-rise buildings, each with two parking floors and 8 stories of residences

Le Jardin - 26 penthouse size residences, exquisite appointments, sculpted gardens

Toby Tobin is Editor & Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast and Flagler and Volusia counties in Northeast Florida.

Grand Haven - Gated Golfing Community in Palm Coast, Flagler County, Florida

Toby Tobin (GoToby.com LLC) — Fri, 03 Aug 2007 15:45:12 -0500

Nestled along the West side of the Intracoastal Waterway in Palm Coast, Grand Haven is a residential gated community of homes in the $250's to $1 million plus range. Chose from Intracoastal, lake, golf course or preserve fronted homes and home sites. Homesites range from $90K for interior lots to $500-750K for Intracoastal sites. Live side by side with osprey, eagles, herons, egrets, gators, and deer. Sighting of Florida panther, bobcat, wild boar, and otter have also been reported. Launches from Cape Canaveral are often visible.

A private highly rated Jack Nicklaus signature golf course with a beautiful clubhouse winds through the complex. The course is the focal point of the complex, however only one third of the residents are golfers. A Village Center offers 7 hartru tennis courts, a fitness center, a large heated pool, bocce, croquette, a meeting/card room, and a café/deli. A second Village Center has been completed. Several community activities are organized by the Village Center staff. A walking/jogging trail follows the Intracoastal Waterway for the entire length of the development. An adjacent county park with a boat ramp offers convenient access to the Intracoastal Waterway.

Originally developed by Lowe and purchased by LandMar Group (a division of Cresent and ultimately Duke Power), Grand Haven has been developed in stages since the late 90's by opening a succession of "villages." Newly opened villages have build-out requirements that insure rapid development, resulting in an immediate sense of community. Grand Haven has proven to be a great place to live. The steady increase in property values has also made Grand Haven popular to investors.

Grand Haven consists primarily of single family homes along with a mixture of town homes and condominiums. Covenants restrict short term rentals ensuring the residential nature of the community. While most residents are in the 50 - 75 year age bracket, there are several young families. School buses are a common site.

Planned as a 1900 unit Planned Unit Development (PUD), Grand Haven is nearly built out. The final phase, Wild Oaks, has sold nearly all of its estate sized lots. Infrastructure work continues with the first home construction started in late 2006. Also, the second and final phase of the Riverview Condominiums, consisting of 48 units, began construction in August 2006. Situated adjacent to the Golf Clubhouse, they will be completed by 2008.

Toby Tobin is Editor & Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast and Flagler and Volusia counties in Northeast Florida.

Developer Bashing - A Florida Pastime

Toby Tobin (GoToby.com LLC) — Sun, 29 Jul 2007 20:03:44 -0500

But let those who have not taken out a home equity loan, made possible by the handsome increase in the value of their home, cast the first stone.

Palm Coast, Flagler County, Florida - One of my readers posted the following comment to a recent article about Sawmill Creek, a gated, golfing community currently under development by Lowe Destination Development. He questioned the sanity of developers. Here are his comments and my reply.

Comment Title: "Why More Private Communities"

Comment: "In all of your conversations and research has anyone made any sense as to why the persistent focus on these ‘upscale' communities in this area? From what I understand, none of them have filled. And as you reported, the Conservatory seems to be a ‘bust'. What is the thought process? It appears that some people have in their heads that this will be a luxury area (which it is not, and does not ever seem that it will be) and no one can tell them differently. It's amazing to me. What world are these people living in? And quite frankly, they appear to be much of what is holding your industry back by driving price up with ‘speculation' and destroying the price of golf (or the courses themselves . . . Palm Harbor). What is going on?"

First, thank you for your comments. Your views that developers are responsible for many of our problems mirror those of many Palm Coast and Flagler County residents. But these views are founded less often on facts and knowledge than on opinion, emotion, and perhaps, a little wealth envy. Let me address the comments:

The comments on upscale communities are simply untrue. Nearly all Flagler's gated communities are doing well, Plantation Bay, Palm Coast Plantation, Grand Haven, Hammock Dunes, Island Estates, and Hammock Beach, to name a few. Sure, there are still some vacant lots in each, but there are also vacant lots in every section of Palm Coast, from A-Z.

"This place" will not be a luxury area any more than are most other Florida coastal areas. But it will have a luxury component, concentrated along the coast and the Intracoastal Waterway. This is just too great a place to live and retire to be ignored. Miles of beaches, water frontage, and a wonderful climate will continue to draw more affluent buyers. These are the buyers your "developers" have targeted with upscale communities. Upscale buyers like upscale communities. Affluent buyers like luxury communities. Even Flagler's most expensive communities are still very affordable when measured against other warm climate coastal alternatives.

I never reported that The Conservatory was a "bust." Some, perhaps many, of the original purchasers will suffer losses. But I believe it will ultimately be a successful community. It won't be as successful as Reunion, the Orlando area development on which it was modeled. The location, near the high school, away from the water, and far from Disney, will continue to work against it. Its lots will not demand the same price as lots nearer the beach or on the Intracoastal Waterway. People who eventually build in The Conservatory will likely erect more modest homes than originally envisioned for the community. They will also likely to purchase their lots at prices below the original offering prices. Eventually demand and supply (the market) will dictate this price. It will not be dictated by the developer.

Developers do not create speculators any more than casinos create gamblers. Casinos are built because gamblers already exist.Developers are not solely responsible for driving up prices. They are simply responding to demand, including demand from speculators. It's the excess of demand over supply that drove prices up (2001 - 2005), just as the excess of supply over demand caused prices to drop (2005 - 2007). The median price for single family residential homes in Flagler County dropped 17% over the past 18 months. Are you as willing to give developers credit for this as you are to blame them for the prior increases?

When a home buyer considers a purchase, they are looking not only at the price of the house. They are also looking at the total cost of housing, which is effected by interest rates, taxes, and insurance. Florida housing was the unlikely recipient of two-years of successive hurricanes. That's never happened before and probably won't again any time soon. But demand dampened and insurance rates skyrocketed. Developers had nothing to do with this.

Let's not overlook the roll played by local government in the cost of housing increase. Our elected officials were quite happy to enjoy the bounty of increasing property values and new construction. They've been able to engage in profligate spending while bragging that taxes have remained in check. Homesteaded properties (where the voters live) have even seen a slight decrease in property taxes. But the property tax on newly purchased homes, commercial, and rental property increased dramatically; again, not the builders' fault. Look at what has happened to Flagler County Government spending since year 2000, according to charts presented at a recent county budget workshop:

The county's population increased 83%
The county Operating Budget grew by 440%
The county expenditure per resident increased 192%
Individual county employee wages (including fringe benefits) grew 72%, from $31,800 to $54,800

These increases happened in spite of the fact that the City of Palm Coast, where most of the population lives, was born and, as a result, has taken over some of the services previously provided by the county.

The city budget has likewise grown at a rate out of proportion to the increase in population. Did you know that $18,000 dollars of the cost of every new home built in Palm Coast is the result of impact fees (read taxes), for transportation, fire and rescue, parks, schools, water & sewer, storm water, and more. That makes every home in Palm Coast less affordable. And because the majority of the fees are fixed and do not vary with the value of the home, they are overly punitive to prospective buyers of affordable workforce housing. We're talking about our first responders, our teachers, our service providers, our building trades, our retail employees (but apparently not the average county employee). Also, if Palm Coast's proposed Land Development Code is adopted as presently drafted, it will not only diminish commercial and industrial development chances, but it will also increase the cost of housing.

Our local government should be using more of its resources to encourage commercial and industrial development. Flagler County currently draws less than 1% of its revenue from its nearly non-existent industrial tax base. 25% to 30% is considered ideal. Unless they fix this, the residential property tax will really take off. The save out homes amendment restricts increases in assessments but does not prohibit increases in the millage rate. Also, if Palm Coast's proposed Land Development Code is adopted as drafted, it will not only inhibit future commercial and industrial growth chances, it will also increase the cost of housing.

I'm not writing to defend developers. They are not all without blame. But to paint them all with the same brush, and to blame them, at the exclusion of all others, for the present situation is not only wrong. It's just not fair.

I didn't intend to ignore the comments about golf. While we have an inalienable right to life, liberty, and the pursuit of happiness, I cannot find a specific reference to an inalienable right to affordable golf.The condition in which Centex left the Palm Harbor Golf Course is unacceptable. But I'll bet the resulting municipal golf course will be more affordable than Centex's planned Jack Nicklaus makeover would have been. And there is another public course under construction north of Bunnell on US1 - by a developer who is responding to demand and trying to make a living.

Toby Tobin is Editor & Publisher of GoToby.com, the popular real estate news, information, and analysis website for the City of Palm Coast and Flagler and Volusia counties in Northeast Florida.