Post on 14-May-2017
Builders utlookwww.elpasobuilders.com 2014: issue 4
Freddie Mac: Over half of metros continue to improve
Brena Swanson @ HousingWire.comThe housing market is recovering, and
although it is at a slower pace than lastmonth, more than half of the top 50 metroareas continue to record improvingtrends.
According to Freddie Mac’s newesthousing metric, the national FebruaryMulti-Indicator Market Index value standsat -3.11 points, down from -3.08 inJanuary, indicating a weak housingmarket overall.
However, on a year-over-year basis,the U.S. housing market has improved by0.67 points, and the 3-month trend showsan improving housing market.
This is compared to the nation’s all-time MiMi low of -4.49 in November 2010when the housing market was at itsweakest.
MiMi merges four economic indicators -- purchase applications, payment-to-income, current on mortgage andemployment -- with data from multiplesources, including Freddie’s dailybusiness with more than 2,000 mortgagelenders across the country.
“Despite a slowdown over the wintermonths, the housing market continues toshow improvement in most states,although at a somewhat slower pace,"Freddie Mac Chief Economist FrankNothaft said." And while not all the MiMiindicators are trending in a betterdirection–in particular, home-purchaseapplications have weakened in manyareas-- gains in local employment andloan performance have really helpedmany markets across the country,especially those that were hardest hit."
GSEs lower expectations on housing marketFannie, Freddie revise sales, construction forecasts downward
The government-sponsored enterprisesare lowering their housing expectations for2014, citing shrinking inventory andtightened credit standards among otherreasons.
Freddie Mac lowered its forecast forhome sales to 5.5 million, down about100,000 sales from the prediction at thestart of 2014.
“Tight inventory may pose a significantchallenge for home buyers in manymarkets across the country, which mayresult in higher home prices and salesbeing lower than expected,” said FreddieMac chief economist Frank Nothaft.
Doug Duncan, chief economist forFannie Mae, says he now believes thatnew-home construction will hit 1.5 millionhousing units this year, which is 50,000fewer than the original forecast from thestart of 2014.
“We have downgraded our housingforecast slightly due to a lackluster salespicture,” Duncan said.
Digital Risk's CAO Tom Showalter saysthat the market is currently experiencing
friction as a result of economic factors likerising home prices, stagnant income levels,and investor participation in themarketplace, and that this friction will keepthe housing market from revving up in2014.
"You know what happens in an enginewhen you get too much friction and the carjust doesn't rev as fast? It’s one of thosefriction-based arguments rather than a'catastrophic change' based argument.What I’m saying is that there is so muchfriction here; the friction from the
regulators, the friction from the lenders,friction from the borrowers (medianincomes aren't going up, coming up withdown payments are tough, they aren't surethe house is priced correctly) every one ofthose reasonable propositions is a sourceof friction," Showalter said.
This friction in the market is shrinkingretail appetite, as investor demand slows.
"What I’m seeing is that the investor isexiting and now you have to start seeingthe influx of the retail buyer. The investorsare gradually leaving the market as pricesrise, and the retail buyer is waiting in thewings. There are some markets, like Miamiand San Francisco that are driven byoutside factors, but markets like St. Louisand Omaha and parts of California andNevada that aren't driven by structuralfactors that are unique and powerful, theyare going to suffer the friction as the retailbuyer struggles to get back into themarketplace," Showalter said.
Showalter notes that "as they get intothis excessive friction situation, where in anormal environment for every 10 people
that are thinking about doing a deal, wherethe normal turn rate is 6 in 10, the turn ratebecomes 3 or 4 in 10. This is what’shappening in the country, we are makingthe average home seller nervous, theaverage home buyer nervous."
While this stress on the market will likelyslow growth in the coming quarters ahead,Showalter notes that there will be no majorcollapse.
"I don't see things dropping off a cliff likeit did when the meltdown occurred becausethis is a different kind of problem. It will beso hard to get it to climb at a high rate -because there is just too much drag," hesaid.
There is some upside, however."One thing I do see happening as the
prices start to drop and as median incomesdon't necessarily drop is that you are goingto see the affordability index start to go up.So more people will be able to buy a home,the question is how many fish will bite onthat bait," Showalter said.
The Android version of the Build El PasoInspection app is now available in the playstore. The City Development Departmentunveiled its first iPhone compatible mobileapp for inspection requests – the Build ElPaso Inspection app.
“Between our efforts and the City [of ElPaso’s] IT team and our partners atCityGovApp, we are extremely pleased tooffer the public an easier and faster way torequest much needed inspections on theirbuilding projects,” states Mathew McElroy,director of City Development.
For the past few months, CityDevelopment along with the Department ofInformation Technology Services has beenworking with CityGovApp, Inc to develop amobile application for inspection requests.
The Build El Paso Inspection app will
allow users to view their issued permit andrequest inspections on thesepermits. Build El Paso Inspectionwill dramatically increase theturnaround process fromassigned permits to inspections.
“Right now most inspectionsare scheduled manually whichis time consuming forcontractors and staff,”describes Victor Morrison-Vega, deputy director ofBuilding & DevelopmentPermitting (formally BuildingPermits & Inspections) – adivision of City Development.“This mobile app willeliminate the middle-manand immediately take therequest for an inspectionand upload it directly into our system.”
Build El Paso Inspection is available fordownload for all iPhone users.
About a month ago, the CityDevelopment Departmentunveiled its first mobilephone app, compatible onlywith iOS, for inspectionrequests – the Build El PasoInspection app. Now Build ElPaso Inspection app isavailable for all smartphonesvia Apple and Google Playstore.
“Between our efforts and theCity [of El Paso’s] IT team andour partners at CityGovApp, weare extremely pleased to offerthe public an easier and fasterway to request much neededinspections on their buildingprojects,” states MathewMcElroy, director of City
Development.The Build El Paso Inspection app was
developed with commercial and residential
developers in mind; however, anyone cantake advantage of its convenience. Theapp will allow users to view their issuedpermit and request inspections on thesepermits. Build El Paso Inspection willdramatically increase the turnaroundprocess from assigned permits toinspections.
“These mobile apps will eliminate themiddle-man and immediately take therequest for an inspection and upload itdirectly into our system,” shares VictorMorrison-Vega, deputy director of Building& Development Permitting under City
Development.
For more information about El Paso’s CityDevelopment Department, visit elpasotexas.gov/city-development. Like them on Facebook atfacebook.com/ElPasoCityDevelopment or follow themon Twitter @EPCityDev. For more information about ElPaso’s City Development Department, visit
elpasotexas.gov/city-development
Local inspection appnow available
Scores are in: Top improving states and metros
5 most improving states month-over-month:
South Carolina (+0.14)Louisiana (+0.7)Ohio (+0.07)Tennessee (+0.05)Nevada (+0.07)
5 most improving states year-over-year remain unchanged:
Florida (+1.87)Nevada (+1.65)California (+1.08)South Carolina (+0.96)Texas (+0.93).
On the metro level, the five mostimproving metro areas month-over-month:
Charlotte, N.C. (+0.10)Columbus, Ohio (+0.09)Nashville, Tenn. (+0.07)New Orleans, La. (+0.07)Las Vegas, Nev. (+0.05) (tied)Memphis, Tenn. (+0.05)Miami, Fla. (+0.05).
From one year ago, the most improving metros remainedunchanged:
Miami (+2.33)Orlando, Fla. (+1.91)Las Vegas (+1.64)Riverside, Calif. (+1.60)Tampa, Fla. (+1.49).
For first place, the top ranking stateand metro are:
State: North Dakota at -0.48Metro: San Antonio at -1.27
So which states soared and which tanked?
2 Builders Outlook 2014 issue 4
If you have digging or excavation work to do, remember to call 811 at least 48 hours in advance.
Natural gas and other utility lines may be buried a few feet deep. By calling 811, utility crews can mark locations of underground lines at no charge. The markings are done in paint and will eventually wash away. Marking line locations can help prevent you from accidentally damaging a natural gas line or another utility line.
Always call before you dig. It can help keep you and your construction crew safe, and failing to do so can result in a $1,000 fine.*
* Texas Utilities Code 251.201 Civil Penalties
Stay safe. Call before you dig.
President’s Message |
El Paso Disposal
772-7495
32014 issue 4 Builders Outlook
Frank
Torres
President,El Paso Association of Builders
Showroom: 2131 Missouri
915 • 533 • 6045 fax • 533• 6096
Thomas R. Brown, Owner
Thank you for a great golf outing!The association held its annual spring golf tournament, something Ray and
Sam call a “pachanga”, a party and not so much real tournament. I think thisyear we had a real tournament because some of our players turned in superscores. That’s great because we were worried that the weather wouldn’tcooperate, but as all of you who went the weather was great. Horizon GolfCourse is in pretty good shape considering it only reopened about a year ago.Jeff Gates is the general manager and head pro at the course and he and hisguys have done a really good job getting the course in shape. My regular golfpartners have played Horizon for some months now and we’ve seen some prettygood improvement.
Our tournament couldn’t happen without the help of our friends and fellowmembers, who take out sponsorships and advertising on the course. This yearour lead sponsor was StrucSure Home Warranty. Scott Whisenant has reallybrought us a great relationship and I want to thank him for doing so. He not onlybrought his company to us but he’s also going to be involved down the road inat least two other events this year. Thanks StrucSure and thanks Scott. To ourentire group of tee box advertisers, thanks. Joe Bernal thank you for your holein one sponsorship. I didn’t win it and neither did anyone else. Someday we’llgive the $10,000 away so keep coming.
Our general meeting was great with the general manager of the new El PasoChihuahuas Brad Taylor as the speaker. Brad was so optimistic about El Pasoand so optimistic about the team that he really brought that excitement to thegroup. If the Chihuahuas can capture that excitement from the boss then it willbe a good season for the team. I hope that all of you who attended agree thatBrad is a welcome addition to our city. I hope we have him back at some timethis year.
Finally we have had a generous offer from our builder member Don Rassettefor a potential parade site. Things being as they are in our business we hopethat the association can hold a Parade this year, but we need to know if it willwork for all of those interested. If you were involved in the meeting on thisplease let Ray know if you are in or out, so that we can get going either way.Thank you Don and Cheryl for your generous offer.
The International Conference of
Shopping Centers has been busy in
other parts of the country over the last
few decades. El Paso meanwhile
wasn’t on the radar. That all changed
as the local association took the bull by
the horns and brought a conference to
El Paso that has been the talk ever
since. Bob Ayoub from MIMCO and
Tina Wolfe from HUNT Companies
were the two persons who headed up a
great team to bring attention to the El
Paso market. Rather than continue
with a “pobrecito” (poor me) attitude
these two told industry leaders that El
Paso is on a renaissance and that
NOW is the time to make the move
here. The event was supported heavily
by local real estate developers anxious
to showcase their properties and ideas.
Deal making was at the center of the
talks, while a few big announcements
were made at the event. An informal
meet and greet was held at the
Fountains at Farah and the reception
was well attended. Host Paul Foster,
developer of the center welcomed
guests. The following day the
conference began at the Double Tree
Hotel. The top floor conference center
provided the best view of the new
Southwest University Park from high on
top. The home of the new AAA El Paso
Chihuahuas sparkled with the newly
planted grass and was a show stopper.
In addition the work being done at San
Jacinto Plaza (Basic IDQ) and other
downtown work was clearly visible.
Inside the meetings were broken up
into several topics beginning with an
overview of public projects. Speakers
included Fort Bliss, the City of El Paso
and TXDOT representatives. TXDOT
talked about the multibillion dollar work
being done on I-10 and Loop 375 along
with other work connecting the new rail
yard at Santa Teresa.
The second group discussion was on
an overview of Regional Projects like
the Union Pacific yard; the Medical
Center of the Americas (Emma
Schwartz); and what’s new in the
Mesilla Valley region of Las Cruces to
the state line. The keynote speech was
given by the Director of Employer
Initiatives from the Texas Governor’s
office, Mr. Arron Demerson. He spoke
of the commitment from the his office to
El Paso adding that for too long the
state dismissed El Paso for other
communities along I-35. The third
group round table involved El Paso
Development Update from a panel
including W. Claiborne Gallagher, Rick
Amstater, Bill Caparis, Doug Schwartz,
Justin Chapman and me. We
discussed the local real
estate/development market and in my
set I was asked to provide information
on residential growth, problems, and
challenges. The final discussion group
brought in outside interests including
representatives from Jimmy Johns
Gourmet Sandwiches; Le Duff America
(Le Madeline restaurants); AT&T
Mobility; TopGolf entertainment; and
the senior director for real estate for
Walmart.
I told the April general meeting about
some of the big things coming to El
Paso in the very near future that I was
able to discern from the conference.
There is significant interest in El Paso
as more barriers are taken down. In
particular restaurants are finding El
Paso as underserved and that’s why
they’re interested in coming. Chipotle
found out what can happen as did
Sprouts when it expanded. The new
Le Madeline set all-time records for a
grand opening week. I pointed out that
retailers including H&M could lead us
to get an HEB grocery store or even a
Trader Jacks or Whole Foods. El Paso
has an underground economy that is
visible on Friday and Saturdays as
restaurants and bars fill up. The
Medical Center of the Americas is the
economic driver for the next 50 years,
in my humble opinion. Our reliance on
Fort Bliss will remain strong but El
Paso will diversify and provide untold
opportunities to those willing to
challenge the main stream. Proof lies
in the work done by Bob Ayoub and
Tina Wolfe. They are visionaries who
love El Paso and are willing to share
her with outsiders. I am proud to have
represented the residential market at
the conference and hope that I will
have a chance to do so again.
Perspective
Ray Adauto,
Executive
Vice President
EPAB
4 Builders Outlook 2014 issue 4
Commercial group stages El Paso conference;
El Paso shines with opportunities
52014 issue 4 Builders Outlook
Housing Starts Rise
2.8 Percent in March
Led by a 6 percent rise in single-family
starts, nationwide housing production rose
2.8 percent above an upwardly revised
February rate of 920,000 to a seasonally
adjusted annual rate of 946,000 units in
March, according to newly released figures
from HUD and the U.S. Census Bureau.
“We see improving signs of new-home
construction as we move into the spring
buying season,” said Kevin Kelly, chairman
of the National Association of Home
Builders (NAHB) and a home builder and
developer from Wilmington, Del. “The
strongest recovery is in the Northeast and
Midwest, where builders were hampered
by severe winter weather earlier in the
year.”
“Today’s report is in line with our
forecast of a gradual strengthening in the
housing sector in 2014,” said NAHB Chief
Economist David Crowe. “However,
several uncertainties including tight credit
conditions for home buyers and erratic job
growth are making builders cautious about
getting ahead of demand.”
Single-family housing starts rose 6
percent to a seasonally adjusted annual
rate of 635,000 units in March, while
multifamily starts fell 6.1 percent to
292,000 units.
Regionally in March, combined single- and
multifamily housing production rose
strongly in the Northeast and Midwest with
gains of 30.7 percent and 65.5 percent,
respectively, but fell 9.1 percent and 4.5
percent in the South and West,
respectively.
Overall permit issuance fell 2.4 percent
to 990,000 units in March. The Northeast
and Midwest posted gains of 33.3 percent
and 26 percent, respectively, while the
West was unchanged and the South
posted a 17.1 percent decline.
Builder Confidence
Holds Steady in April
Builder confidence in the market for
newly built, single-family homes rose one
point to 47 in April from a downwardly
revised March reading of 46 on the
National Association of Home
Builders/Wells Fargo Housing Market
Index (HMI) released today.
“Builder confidence has been in a
holding pattern the past three months,”
said NAHB Chairman Kevin Kelly, a home
builder and developer from Wilmington,
Del. “Looking ahead, as the spring home
buying season gets into full swing and
demand increases, builders are expecting
sales prospects to improve in the months
ahead.”
“Job growth is proceeding at a solid
pace, mortgage interest rates remain
historically low and home prices are
affordable,” said NAHB Chief Economist
David Crowe. “While these factors point to
a gradual improvement in housing
demand, headwinds that are holding up a
more robust recovery include ongoing tight
credit conditions for home buyers and the
fact that builders in many markets are
facing a limited availability of lots and
labor.”
Derived from a monthly survey that
NAHB has been conducting for 30 years,
the NAHB/Wells Fargo Housing Market
Index gauges builder perceptions of
current single-family home sales and sales
expectations for the next six months as
“good,” “fair” or “poor.” The survey also
asks builders to rate traffic of prospective
buyers as “high to very high,” “average” or
“low to very low.” Scores from each
component are then used to calculate a
seasonally adjusted index where any
number over 50 indicates that more
builders view conditions as good than
poor.
The HMI index gauging current sales
conditions in April held steady at 51 while
the component gauging traffic of
prospective buyers was also unchanged at
32. The component measuring
expectations for future sales rose four
points to 57.
The HMI three-month moving average
was down in all four regions. The West fell
nine points to 51 and the Midwest posted
a four-point decline to 49 while the
Northeast and South each dropped two
points to 33 and 47, respectively.
Editor’s Note: The NAHB/Wells Fargo
Housing Market Index is strictly the
product of NAHB Economics, and is not
seen or influenced by any outside party
prior to being released to the public. HMI
tables can be found at nahb.org/hmi.
More information on housing statistics is
also available at housingeconomics.com.
NAHB Supports
Senate Bill that
Addresses ‘Patent
Trolls’
The National Association of Home
Builders (NAHB) is calling on the Senate to
advance the Patent Transparency and
Improvements Act of 2013 (S. 1720),
legislation that would significantly improve
the U.S. patent process and stop patent
abuse.
Small business owners in home building
and scores of other industries across the
nation are increasingly being attacked by
patent trolls who are indiscriminately
issuing threatening letters to companies
alleging patent infringement.
“This is little more than a coercion tactic
intended to force companies to enter into a
licensing agreement or risk litigation,” said
NAHB Chairman Kevin Kelly, a home
builder and developer from Wilmington,
Del. “S. 1720 would improve the patent
process and protect businesses and
individuals who are the target of dubious
claims.”
Fighting to stop patent trolls and fix
patent laws, NAHB is a member of the Main
Street Patent Coalition, a national, non-
partisan coalition of organizations that are
dedicated to stopping patent abuse from
trolls by encouraging Congress to pass
comprehensive, common sense patent
reform legislation.
Senate bill S. 1720 would help put an end
to bad-faith demand letters that are hurting
jobs, stifling innovation and threatening
small business owners with protracted,
expensive patent infringement lawsuits.
The legislation makes clear that sending
fraudulent or materially misleading demand
letters in connection with the assertion of a
patent is an unfair and deceptive trade
practice that may be targeted by the
Federal Trade Commission.
The Senate Judiciary Committee is
expected to consider the bill in the near
future.
Industry News
TEXAS BUILDER OF THE YEAR
2013
A W A R D E D
We build so you can GROW
By Ben Keough The graybeard of high-end design is
increasingly déclassé. Here's what's
coming to force it into retirement.
For years, granite has been the go-
to material for high-end countertops.
Despite its expense, weight, and
ubiquity, it still remains the countertop
of choice.
But at EuroCucina 2014, there was
a huge variety of granite alternatives
on display. From stainless steel to
tempered glass, from ceramic to
wood... we’ve seen the future of your
kitchen, and it’s not granite.
Tempered GlassGerman design house Leicht
showed off a lovely tempered glass
countertop in a number of its model
kitchens. The thick, translucent
material is tough and has a pleasant
tactility, while still remaining easy to
clean. According to company reps, it’s
also available in a huge variety of
colors.
CeramicsLeicht also made use of ceramic
counters, which one representative
described as the “closest thing you
can get to indestructible.” The material
is scratch-resistant, easy to clean, and
cool but not cold to the touch. And the
dark gray finish we saw paired
beautifully with the wooden surround.
Nanotech MaterialsThe most unusual alternative
countertop we saw at EuroCucina
came from Italian designer Arrital,
courtesy of Arpa Industriale. Referred
to as a “nanotech matte material,” the
Fenix NTM countertop is anti-
reflective, anti-fingerprint, self-healing,
and soft to the touch without being...
well, soft. It felt great under our hands,
and looked great in Arrital’s modern
kitchens.
WoodWe saw solid wood and wood-
finished countertops everywhere at
the show, often contrasting with or
overlaid on a stone or synthetic
material. Everything from mahogany
and ebony to light pine and bamboo
was used, and often paired with
matching cabinetry to create a
minimalist yet warm look. In some
cases, wood was even paired with
granite, though that was less
common.
At least one of Snaidero's
EuroCucina kitchens featured an
overlapping combo of wood and
stone.
Arrital also mixed wood with
synthetic finishes to interesting effect.
Leicht also got in on the wood-and-
stone game... and even mixed in a
little granite. Cheeky!
Rossana eschewed granite and
paired its dark wood countertop with
luxurious marble.
Something went wrong when
fetching the photos. Please try again.
Stainless SteelLook, stainless is nearly as played
out as granite. In fact, we just ran a
whole story about why
it’s probably a terrible idea to
overdose on gleaming silver in your
kitchen. But plenty of designers at
EuroCucina made a virtue out of this
particular vice and made stainless
countertops look fresh and new again.
In addition to its nanotech finish,
Arrital showed off plenty of stainless
Italian designer Rastelli showed off a
huge stainless countertop at
EuroCucina.
TileWhen it comes to countertop
finishes, tile is pretty old school. It’s a
style that’s generally beholden to a
certain era or area—both of the places
I lived in Santa Fe had them, for
instance. At least one designer at
EuroCucina is aiming to bring them
back. Minacciolo’s Minà multi-function
island employs a beautiful mosaic tile
top with subtle hues of red and
orange.
Ben is an experienced industry
journalist, now managing news and
features for Reviewed.com. Most recently
hailing from the vast wilds of the American
southwest, he is an avid photographer who
is deeply disturbed by the lack of wide
open landscapes in Boston.
6 Builders Outlook 2014 issue 4
ProPertytaxreduction• Over 25 years of experience in property tax
valuations and real estate appraisals
• Property tax services throughout the USA
• Specializing in commercial, industrial, vacant land
• Residential and personal property valuations
PTP Valuation ServicesMark Salazar
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El Paso Texas 79902
915-542-3815 fax 915-542-0612
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in achieving
Alternate materials growing in counter top popularity
72014 ISSUE 4 Builders Outlook
Builders utlook on the scene |Spring Golf Tourney
The 2014 Spring Golf Tournament,sponsored by StrucSure Home Warranty,was played at Horizon Golf andConference Center on April 16. Despitedire predictions of very gusty winds andblowing dust the day turned out to bepicture perfect in more ways than just theskies.
Twenty five teams showed up for the golfand fun that this tournament is known for.Guests were signed in by Margaret andher cast of volunteers from theProfessional Women’s Council. Thewomen sold mulligans to help support theirscholarship program and a good amountwas collected for that effort. Each teammember was handed a goodie bag thatwas described by our sponsor ScottWhisenant as “better than the bagshanded out by other associations”.Numerous items in the bag ranged fromtowels to lip balm, cookies, crackers orcandy bars, fig newton’s, and more. Thegolfer was then given a sleeve of CallawayHEX golf balls courtesy of the EPAB.
The golf course hadn’t seen anassociation event in over 10 years. Itbrought back some very good memoriesfor some of our players. Rudy Guel toldthe Outlook that the day turned out well. “Iam so impressed with the way this funtournament turns out, and it’s because ofthe hard work you guys put into it,” Guelsaid. “My team and I had a terrific time.The course was good, the beer was verycold, the meal was great and the serviceterrific,” he continued. Sam Shallenberger,the tournament chair was equallyimpressed. “The service we got fromMoonlight Bar and Grill, and the HorizonGolf guys was awesome,” Sam said. “I cantell you that back in January when westarted to look at the course for thetournament we weren’t all that sure, butthe results speak for themselves. It wasgreat!”
Our thanks go to Jeff Gates, the GeneralManager and pro for Horizon Golf andConference Center. He and his staff madeeveryone feel comfortable and welcomed.Jeff told the Outlook that he was gratefulfor the associations business. “I reallywant to thank Ray and Sam for choosingus and allowing us to host the tournament,”Gates said. “While we’re still some monthsaway from being at our best this year thecourse has really come a long way,” hesaid. The course fairways were in decentshape and the greens a little rougher thana course that has been in constantsupervision. Horizon was abandoned for along time and up to a year ago the coursegreens didn’t exist. “We have put a greatdeal of work into this course, getting thepro shop stocked, finding ways to returnthe club to its original greatness,” Gatessaid. “It will be a real gem soon, and weinvite your members and guests to comeout and try us,” he told us.
The team of Chris Montiel, HenryTinajero, Chris Elguea and Lane Harristook first place with a sizzling 54. Theywon Taylor Made RBZ drivers for theirefforts. The second place went to the teamfrom Texas Gas headed up by Mica Shortand included the Mayor of Horizon CityWalter Miller. Third place went to WestStarBank team headed up by Armando Avila.Andy Arroyos won the closest to the targeton the fairway, sponsored by Stewart Title,while long drives were won by ShaneDuncan, sponsored by Sierra Title andVincent Quintana, sponsored bySouthwest Land Development. The drinkcarts were staffed and sponsored byHUNT and Pioneer Bank; the dinnersponsor was HUNT Communities. A$10,000 hole in one contest wassponsored by Employee Benefits of ElPaso while the beverage Tinas (washtubs)were compliments of AT&T Mobility.
el paso development news
A new eatery has been added to the
lineup of the Fountains at Farah shop-
ping center in East El Paso. Grimaldi’s
Pizzeria, an Arizona-based pizza and
calzone chain, will be located in the
Promenade lifestyle section of the cen-
ter.
It will be the 11th Texas location for the
restaurant chain, which has a total of 32
locations throughout the United States.
“Our team searches the country for
the best restaurant sites, and we’re excit-
ed about opening our eleventh location
in Texas,” said Joey Ciolli, president and
chief executive officer of Grimaldi's
Pizzeria, in a press release.
“We see a lot of opportunity in El Paso
and we are excited to be a part of The
Fountains at Farah property. Guests will
feel comfortable, enjoying our coal-fired
brick oven pizza, all at a great price.”
Grimaldi’s credits its coal-fired ovens
at its restaurants for its success. The
ovens are designed and built by hand
and weigh in at 25 tons each, using 100
pounds of coal per day. This creates
heat of up to 1,200-degrees within the
oven, allowing for a “crispy and smoky
thin crust.” In recent years, Grimaldi’s
has been named “best pizzeria” by the
Zagat Survey.
In addition, a chemist will be hired to
ensure the water used in making the
dough at the Fountains at Farah location
will “re-create” the water used at the
chain’s Brooklyn location, to ensure the
dough tastes exactly the same, accord-
ing to the press release.
Aside from pizzas and calzones, the
restaurant will offer fresh salads and
desserts.
The Fountains at Farah opened last
fall, and the Promenade shops area is
slowly filling in. Two other restaurants,
Kona Grill and La Madeleine Country
French Café, are currently under con-
struction and should open soon.
No opening date has been announced
for Grimaldi’s Pizzeria (www.grimald-
ispizzeria. com).
The City of El Paso has provided
updates on three public park projects cur-
rently underway around town. The parks
are just three in a myriad that will see
improvement projects in the coming
years, many of which are funded by the
2012 Quality of Life bond initiative
approved by voters.
Fiesta-Balboa Park on the West Side is
the closest to completion. This project
has transformed vacant properties near
Mesa Street into a pocket park that
includes amenities such as a basketball
court, play equipment, benches, and
landscaping.
Homes that once occupied the proper-
ties were severely damaged in the infa-
mous storm that caused severe flooding
in El Paso in 2006. For years, only con-
crete slabs showed a hint of the homes
that once sat there.
Black Stallion LB Construction of El
Paso was awarded the park project last
year. Fiesta-Balboa Park should open in
the coming weeks.
Further east, in Central El Paso, the
brand new Radford Park is also showing
concrete signs of progress as sidewalks
have been added along Radford Street
and park paths are being set. The nearly
three-acre park is located just south of
the Pershing Gate to Fort Bliss.
New amenities for the planned park
include two playground areas, one for
toddlers and one for school-age children,
bike racks, sidewalks, and lighting.
According to the site plan, paths will
meander through the park, which is locat-
ed on a somewhat-sloped property. Two
sports courts will be located in the south-
west quadrant of the park, including one
that can be used for hard-court soccer or
basketball.
Medlock Commercial Contractors of El
Paso was awarded the contract by the
City in December, with completion tenta-
tively set for August 2014.
And a project to improve Armijo Park in
South El Paso should start next month,
according to a public meeting held last
week. About half of the park should be
affected.
Construction crews will replace a play-
ground area with new equipment, make
improvements to sidewalks and paths,
install new trees, and make lighting
improvements. The project was awarded
to Kaizen Construction Service of El
Paso last month.
Work on the Armijo Park project should
be completed by August 2014.
Retail Buzz: Grimaldi’s Pizzeria to Open at ‘Fountains’
Improvements Continue at El Paso Public ParksFiesta-Balboa, Radford, and Armijo Parks See Progress
The interior of a Grimaldi’s Pizzeria, from the restaurant chain’s website. A new
location will open at the Fountains at Farah this year. (www.grimaldispizzeria.com)
Recently installed playground and athletic equipment at the
new Fiesta-Balboa park. (City of El Paso)
Before the upcoming Brio RTS begins to
steal Sun Metro headlines, El Paso’s
mass transit system has just added 22
buses to its regular fleet. The new buses
will replace other units currently being
retired.
The new units are 2014 New Flyer
Xcelsior models, 40-foot buses which will
be powered by compressed natural gas.
The Xcelsiors offer better fuel economy,
low floors, LED interior lighting, and a
more aerodynamic design.
A new feature may help passengers
using mobility devices, such as wheel-
chairs, board and exit the bus units more
quickly. The “rear-facing wheelchair-
securement” option will not compromise
passenger safety, according to a Sun
Metro press release. The current “forward
facing” option will still be available.
The units that will be retired, which date
from 1991, have driven over one million
miles. Most units will be stripped of
usable material that can be sold for scrap,
though some units will be retained for
training purposes.
The new buses are paid in part by
Federal Transit Administration grants.
They will be rolled out over the next few
months.
Sun MetroBrings 22 New Buses toIts Fleet
ALong before ground is broken on the
newest neighborhood in El Paso’s Upper
Valley, developers and City officials held
their second public meeting discussing
and drawing ideas for the 120 acre
development on Wednesday, April 2,
2014.
UV120, a local land development part-
nership, is holding the meetings in coor-
dination with the City of El Paso’s
Planning Division to get the public’s feed-
back on how the future neighborhood
should be designed, what amenities it
should include, and how the land plan
should be laid out.
During the first meeting, which was
held January 30, 2014, officials showed
participants different general images in
the categories of housing, thoroughfares,
commercial, parks & open space, civic
buildings, amenities, and canal-scapes.
Attendees used stickers to indicate which
version of each category they preferred.
Generally, participants chose images
that resemble current themes throughout
the Upper Valley, including elements
such as trees, open space, and agricul-
ture, especially in the categories of parks
& open space, amenities, and thorough-
fares.
In the category of amenities, the top
image was one depicting an outdoor café
along a waterway dotted by waterfowl.
The second-ranked choice was an image
showing an outdoor open space shaded
by many trees and suggesting an agricul-
tural market setting.
For housing uses, participants showed
a desire to include various housing types,
tending toward lower density homes.
Some attendees did show a preference
for an uptick in density along a main thor-
oughfare.
Participants really liked the idea of a
main street lined with shops and eateries
for the property. The top four choices in
the commercial category all showed this
similar theme. The options showing lots
of pavement, a parking lot and a wide
surface street, received the fewest votes.
Officials also gave meeting attendees a
chance to choose which was their
favorite among the layouts of existing
neighborhood plans in other cities. A con-
ceptual master plan for a neighborhood
in Humboldt County, California, was the
top choice, with a plan from Gilbert,
Arizona, just behind in close second.
Both plans showed a mix of uses with a
focus on open space.
City and UV120 officials will use the
next meeting to get clarification on resi-
dential and commercial densities and
styles, and the preferred design of thor-
oughfares throughout the property. No
timeline has been provided for the even-
tual development of the 120 acre proper-
ty, which is currently used for agriculture.
It is located on the southeast corner of
Artcraft
Image1: These were the most and
least liked images for commercial spaces
during the charrette in January. (City of
El Paso)
Image 2: The 120-acre property sits
among neighborhoods transitioning from
agricultural uses to residential uses.
Builders Outlook Issue 4.2014
Content provided by
El Paso Development News
visit: elpasodevnews.com
2nd Charretteto be Held forUpper ValleyPropertyFindings from FirstCommunity DesignMeeting Released‘
Two New Eateries Open at ‘Fountains’Craze, La Madeleine Latest to Open Doors
Two new eateries are the latest to
open in the Promenade lifestyle section
of the Fountains at Farah shopping cen-
ter in East El Paso. La Madeleine
Country French Café and Craze Yogurt
Lounge have opened their doors at the
center.
La Madeleine, a franchise venture
of local businesspersons Paul Foster and
Alejandra de la Vega Foster, specializes
in fresh-baked baguettes, bold espres-
sos, and delicate pastries. The restaurant
offers breakfast, lunch, and dinner and is
open daily from 6:30 a.m. to 10:00 p.m.
The eatery opened its 4,500 square
foot location on April 3, 2014. It includes
features such as wood floors, hearth fire-
places, rustic beams, custom-built seat-
ing areas, and a wine room. The wine
room includes a 100-year-old reclaimed
fireplace.
The La Madeleine spot at the
Fountains is at the western end of the
Promenade area, to the southwest of
Nordstrom Rack. La Madeleine
(lamadeleine.com) has 63 locations
throughout the United States, mostly in
Texas.
On the opposite end of the
Promenade, Craze Yogurt Lounge is now
serving frozen yogurt after opening on
March 29, 2014. The shop is located in
one of the conservatory-like mini-struc-
tures in the middle of the Promenade,
near a Verizon store.
This is the third location for Craze
(crazeyogurt.com) which also has loca-
tions on the West Side and in Far East El
Paso. Craze opens daily at 11:00 a.m.
Restaurants still to come include
Kona Grill, a “modern American grill and
sushi bar,” and recently-announced
Grimaldi’s Pizzeria, specializing in pizzas
and calzones baked using a coal-fired
oven. Kona Grill is scheduled to open
this spring with Grimadli’s opening up
later this year.
A national sports pub chain will open a
new location in West El Paso this sum-
mer. The Tilted Kilt, a Celtic-themed
restaurant and bar whose servers wear
Scottish kilts, will open its sixth Texas
location in the Sun City.
"Tilted Kilt is ecstatic to be opening this
new location in El Paso and continue to
expand across the market," states Teo
Regalado, the Tilted Kilt franchise owner
in El Paso, in a press release.
"The Tilted Kilt concept continues to flour-
ish and grow as people seek more con-
venient, casual dining options with a
unique ambiance, innovative menu
options and unbeatable hospitality."
According to the press release, the sports
pub’s theme will combine “Celtic décor,
humorous and slightly bawdy limericks
and sexy cast members with great food,
drinks and a fun entertaining atmosphere.”
Diners can expect traditional pub food
such as fish and chips as well as “cre-
ations” like a Pub Fried Egg Burger and
Gaelic Chicken. The eatery will also spe-
cialize in “beers from around the world.”
The chain currently has 94 locations in
North America, with 20 more in develop-
ment. The concept was developed in 2003
at the Rio Hotel in Las Vegas.
The first El Paso location will open up at
955 Sunland Park Drive, west of Interstate
10, near the Holiday Inn Sunland Park
and Bob-O’s Family Fun Center. There
are plans for an additional two El Paso
locations in the works. No opening date
has been revealed, though it should be
sometime this summer, according to the
press release.
Tilted Kilt to Openin West El Paso’
Chain Brings SportsPub Experience withScottish Twist
House-HoldSpending
By Elliot Eisenberg,Ph.D., GraphsandLaughs,LLC
Before the Great Recession,household wealth peaked at $68.8trillion or $254,600 per person. If thatseems like more money than you have,it’s because wealth isn’t evenlydistributed. The rich have much more ofit than the poor. As a result, back in2007 the median family had wealth ofjust $126,000 while the average familyhad $584,000. Then the recession hit,house prices plunged, stock marketscratered and household wealth hit a lowof $56.6 trillion in 2009. Since thenstock markets around the world havestaged a remarkable recovery andhouse prices have been steadilyrecovering. As a result, householdwealth now stands at $80.7 trillion,almost $12 trillion more than before therecession. So things have more thanrecovered, right? Not quite.
Since 2007 there has been inflationand the US population has grown by 20million people. As a result, inflation-adjusted per capita wealth is now$254,000, just a shade less than it wasbefore the Great Recession. So we areat least back where we were before therecession hit, right? Not so fast. Theproblem is that the asset price recoveryhas been profoundly unequal and thathas caused the distribution of wealth tochange dramatically. And that has hugeimplications for the economy.
Homeowner equity hit $10 trillion lastquarter, and while way up from a low of$6.3 trillion in 2011, it’s nowhere nearthe pre-recession high of $13.4 trillion.By contrast, equities have soared andare now worth almost $23 billion, waymore than their pre-recession high of$18.3 trillion. The economic kicker isthat equities are primarily owned byupper-income households, while homeequity is the major source of wealth foreverybody else. This means that whilethe rich are roughly $5 trillion wealthierthan they were before the recession, allother households are about $3.5 trillionpoorer. And while the upper classesspend more when their wealthincreases, it’s nothing like the increasein spending that occurs when the rest ofthe population feels better off.
A huge chunk of middle classspending is the result of tapping intohome equity via cash-out refinancing.Regrettably, despite rising home pricesmany households are still under water,credit remains harder to get than everbefore, and many households nowhave mortgages with extremely lowinterest rates and are simply unwillingto tap into their home equity. As aresult, mortgage equity withdrawal hasnearly stopped. After peaking at $320billion in 2006, it was just $32 billion lastyear, a decline of almost $300 billion,and that is the highest it’s been since2010!
In addition to the rich, another groupthat has done well is older Americans.
Families headed by someone under 40have on average recovered only one-third of their lost wealth, but familiesheaded by someone middle-aged orolder have recouped all their losses asmore of their wealth is in stock and lessin housing. And regrettably the middle-aged and the elderly, like the wealthy,are less likely to spend their capitalgains than younger middle classfamilies.
As a result of the profoundly unevenwealth recovery, spending on luxurygoods has done very well but firms thatrely on middle class spending are notenjoying nearly as much of arenaissance. For that to change wageswill have to start rising.
Elliot Eisenberg, Ph.D. is President of
GraphsandLaughs, LLC and can be
reached at Elliot@graphsandlaughs.net.
His daily 70 word economics and policy blog
can be seen at www.econ70.com.
10 Builders Outlook 2014 issue 4
The Economy
years
E L P A S O
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Tony Zimbelman, a small home builder
and general contractor from Wichita, Kan.,
testified at a recent Occupational Safety
and Health Administration (OSHA) public
hearing against a proposed rule to regulate
workers’ exposure to crystalline silica.
In February, NAHB asked OSHA to
withdraw the proposed rule, and instead
treat it as an advance notice of a proposed
rule. Doing so would allow the agency time
to collect more data and determine how
best to align the rule with current
construction industry practices.
As written, the proposed rule drastically
lowers the permissible exposure limit (PEL)
of silica dust workers can be exposed
to; requires impractical medical surveillance
of construction industry workers; mandates
extensive and costly recordkeeping
processes; and places restrictions on
certain construction site work practices,
which do not align with existing safety
procedures.
Zimbelman said that he and many other
small builders and trade contractors find the
rule difficult to understand, and don’t feel
the compliance requirements make sense
for the residential construction industry.
“After reading through the proposed
language and Table 1 a number of times, I
am still not sure what to do to comply,” he
told OSHA officials.
As an example, Zimbelman pointed out
that the procedures and engineering
controls listed in Table 1 do not specifically
address all construction tasks, especially in
home building. Table 1 in OSHA’s proposed
rule contains the required silica control
methods for construction operations.
“Our deck builders hand mix concrete for
setting deck posts, which takes about an
hour. Because Table 1 does not address
this specific task, will these contractors be
required to conduct exposure assessment
and monitoring to determine if their workers
are exposed to silica above the permissible
exposure limit,” he queried.
“This monitoring is complex, time
consuming and costly,” he continued. “In my
experience, trade contractors are currently
not conducting exposure testing and these
small employers would definitely have to
hire an outside industrial hygiene firm to do
this.”
Zimbelman also noted that silica controls
requiring a continuous water source might
not always be feasible in home building.
Most new construction sites are not hooked
up to a water source for two to three months
after construction begins.
“The local municipality controls when
water service is provided, and it is often
delayed well into the construction process,”
he said.
One of the largest issues with the
proposed rule, Zimbelman added, was
simply convincing workers that the
regulations and compliance measures are
necessary.
Zimbelman said he could easily point to
facts and data related to falls and the need
for fall protection requirements, but because
OSHA has yet to provide information
showing a direct correlation between
silicosis deaths resulting from residential
construction work, workers may not believe
there’s a real threat.
Kansas Builder Testifies at OSHA Silica Hearing: Rule Just Doesn’t Work for Residential Construction
Advertise your business to the home building industryThe Builders Outlook is the official publication of the El Paso Association of Builders. Our award winning
monthly newspaper is the only publication to target El Paso home builders and related businesses.
Widely distributed throughout the city and available to readers online, the Builders Outlook is an important
advertising medium for any business that want to reach this valuable market.
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12 Builders Outlook 2014 issue 4
Of the approximately 350 metro
markets nationwide, 59 returned to or
exceeded their last normal levels of
economic and housing activity,
according to the National Association
of Home Builders/First American
Leading Markets Index (LMI), released
today. This represents a net gain of 11
metros year over year.
The index’s nationwide score ticked
up to .88 from a March reading of .87.
This means that based on current
permit, price and employment data,
the nationwide average is running at
88 percent of normal economic and
housing activity. Meanwhile, 28
percent of metro areas saw their score
rise this month and 83 percent have
shown an improvement over the past
year.
“I think the big news here is that
regions outside of the energy states
continue to gain ground,” said NAHB
Chief Economist David Crowe. “It’s a
promising sign to see areas like Los
Angeles and San Jose joining the top
ten largest MSAs showing a recovery.
We still expect 2014 to be a strong
year for housing and to aid in the
overall economic recovery. The job
market continues to mend and with
that we will see a steady release of
pent up demand of buyers.”
Baton Rouge, La., continues to top
the list of major metros on the LMI,
with a score of 1.42—or 42 percent
better than its last normal market level.
Other major metros at the top of the list
include Honolulu, Oklahoma City,
Austin and Houston, Texas, as well as
San Jose, Calif. and Harrisburg, Pa.—
all of whose LMI scores indicate that
their market activity now exceeds
previous norms.
“Things are getting slowly better
overall,” said NAHB Chairman Kevin
Kelly, a home builder and developer
from Wilmington, Del. “And with the
housing market now entering the
spring buying season, the fact that the
nation’s economy is headed in the
right direction is a very promising
sign.”
“Stronger employment numbers
seemed to be the driving force this
month—an important factor to the
recovery of our economy,” said Kurt
Pfotenhauer, vice chairman of First
American Title Insurance Co., which
co-sponsors the LMI report.
Smaller metros showing recovery
continue to be dominated by the
middle of the country experiencing an
energy boom. Odessa and Midland,
Texas, boast LMI scores of 2.0 or
better, with their markets are now at
double their strength prior to the
recession. Also at the top of the list of
smaller metros are Bismarck, N.D.;
Casper, Wyo.; and Grand Forks, N.D.,
respectively.
The LMI shifts the focus from
identifying markets that have recently
begun to recover, which was the aim of
a previous gauge known as the
Improving Markets Index, to identifying
those areas that are now approaching
and exceeding their previous normal
levels of economic and housing
activity. More than 350 metro areas
are scored by taking their average
permit, price and employment levels
for the past 12 months and dividing
each by their annual average over the
last period of normal growth. For
single-family permits and home prices,
2000-2003 is used as the last normal
period, and for employment, 2007 is
the base comparison. The three
components are then averaged to
provide an overall score for each
market; a national score is calculated
based on national measures of the
three metrics. An index value above
one indicates that a market has
advanced beyond its previous normal
level of economic activity.
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14 Builders Outlook 2014 issue 4
A big hello to all !!!! I hope everyone
had a HAPPY EASTER. I would have
to say the golf tournament was a huge
success based on all the comments we
have received. The food and service in
and outside the club house was first
rate. The golf course for only being
open for around five or six months was
as good as to be expected. The
fairways were in great shape but the
greens have a ways to go. The course
was closed for over two years and I
think Jeff Gates and his staffs have
done a good job getting it to where it is.
Give it a few more months and it will be
top notch.
I would like to thank everyone who
participated and especially those of you
that volunteered their time and effort to
make this tournament a big success.
Everything was sold out so our
membership again proves why we are
among the most successful
associations in El Paso.
See you soon, remember we have
Bowling coming this summer.
Sam ShallenbergerWestern Wholesale Supply
Associates Council
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� execuTive oFFicerS
Frank Torres – President
GMF Custom Homes
edgar montiel – vice President
Palo Verde Homes
carlos villalobos – Secretary Treasurer
Palo Verde Homes
Sam Shallenberger – Associates chair
Western Wholesale
edmundo Dena - immediate Past President
Accent Homes
ray Adauto – executive vice President
El Paso Association of Builders
Jay Kerr -Attorney of record
� couNciL/commiTTee cHAirS
Associates council
Sam Shallenberger
Build PAc
Randy Bowling
Desert Green Building council
Javier Ruiz
Land use council
Sal Masoud
Young Designer Award
John Chaney
remodelers council
Rudy Guel
membership retention
Mike Santamaria, Greg Bowling
Finance committee
Carlos Villalobos
Women’s council
Lorraine Huit
� ADviSorY To THe BoArD
J. Crawford Kerr, Attorney, Firth, Johnston
& Martinez
� BoArD oF DirecTorS
Beverly Clevenger, Automated Division 6 Builders, Inc.
Leti Navarette, Custom Dream Homes
Kathy Parry, Hunt Communities
Edgar Garcia, Bella Vista Custom Homes, Inc..
Bud Foster, Southwest Land Development Services
Juanita Garcia, ICON Custom Home Builder, LLC
Walter Lujan, DAWCO Home Builders
Joey Najera, Joseph Custom Homes
Rigo Mendez, Mission Homes
Nick Bombach, Casas de Leon, LLC
Lydia Mhouli, Crown Heritage Homes
JJ Vasquez, Pacifica Homes
Dan Ruth, Millenium Homes
Ken Wade, El Paso Building Materials
Ruben Orquiz, MTI Ready Mix
Kathy Carrillo, Pioneer Bank El Paso
Henry Tinajero, WestStar Bank
Chuck Gabriel, Carpets West
Ted Escobedo, Snappy Publishing
John Chaney, Passage Supply
Joe Bernal, Employee Benefits of El Paso
Linda Troncoso, TRE & Associates
Orlando Rodriguez, Mass Media Advertising, Inc.
Bret Thompson, Foxworth Galbraith Lumber
Chris Worm, City Bank Texas
Sal Masoud, Del Rio Engineering
2013 Builder member of The Year
Edmundo Dena
Accent Homes
2013 Pat cox AwardSam Shallenberger
Western Wholesale Supply
2013 Associate of The YearWestStar Bank
Larry Patton, Burt Blacksher
and Henry Tinajero
Honorary Life members
Wayne Grinnell
Don Henderson
Chester Lovelady
Cliff C. Anthes
Anna Gill
Brad Roe
Rudy Guel
E H Baeza
Past Presidents
committed to Serve
ePAB mission Statement:
The El Paso Association of Builders is a
federated professional organization representing
the home building industry, committed to
enhancing the quality of life in our community by
providing affordable homes of excellence and
value.
The El Paso Association of Builders is a
501C(6) trade organization.
© 2014 Builder’s Outlook
is published and distributed for the
El Paso Association of Builders
by Ted Escobedo, Snappy Publishing
ted@snappypublishing.com
El Paso • Texas • 79912 915-820-2800
6046 Surety Dr. El Paso, TX 79905
915-778-5387 • Fax: 915-772-3038
Greg Bowling
Kelly Sorenson
Mark Dyer
Mike Santamaria
John Cullers
Randy Bowling
Doug Schwartz
Robert Baeza
Bobby Bowling, IV
Rudy Guel
Anna Gil
Bradley Roe
Bob Bowling, III
E. H. Baeza
Hershel Stringfield
Pat Woods
� TAB STATe DirecTorS
Randy Bowling
Greg Bowling
� NATioNAL DirecTorS
Bobby Bowling IV.
Demetrio Jimenez
NATioNAL ASSociATioN oF
Home BuiLDerS
(800) 368-5242
TexAS ASSociATioN oF
BuiLDerS
(800)252-3625
www.elpasobuilders.com www.epbuilders.org
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