2013.03.05 EDA Work Session PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
. WORK SESSION •
TUESDAY, MARCH 5, 2013
6:30 P.M.
CRYSTAL CITY HALL
CONFERENCE ROOM A
Call to order
2. Roll call
3. Discuss 2013 lot marketing tactics *
4. Other business
5. Adjournment
* Materials attached
02/28/13 GAEDA\Agendas\2013\03.05 ws.docx
MEMORANDUM
FROM: John Sutter, City Planner/Assistant Community Development Director ONO
DEPARTMENT HEAD REVIEW: Patrick Peters, Community Development Director
DATE: February 28, 2013
TO: Anne Norris, Executive Director (for March 5, 2013 EDA work session)
SUBJECT: Discuss 2013 lot marketing tactics
Please see the attached matrix of lot marketing tactics.
All of the shaded tactics are ongoing or newly implemented for 2013, and have been
previously discussed with the EDA, except for the following:
Join BATC and do direct-mail to its members:
• The Builders Association of the Twin Cities (BATC) is the trade association representing
homebuilders in the greater metro area (screen print attached). They have approximately
550 builder members.
• The only way we can get their builder member mailing list is for the EDA to join BATC. The
EDA would be accepted as a non -builder member because we have lots for sale.
• The annual membership cost would be $645.
• As a member, at no additional charge we could get on the BATC lot list (example
attached). The list wouldn't have each lot, just "Crystal" with some generic lot info and my
contact info.
• As a member, for $37.50 we can buy mailing labels for the 550 homebuilder members.
• Each mailing would also cost approximately $253 in postage (USPS first class)
• The bottom line cost for the EDA would be $645 annually plus approximately $300 per
mailing.
Staff would intend to do a BATC mailing in March, and potentially more mailings later in the
season depending on the results of the March mailing. EDA discussion on this new tactic is
requested, including not only whether to join BATC, but also how many mailings to do in 2013.
PAGE 1 OF 1
2013 Lot Marketing-
Tactics
arketing
Tactics Without Shading are Not Recommended
TACTIC
DESCRIPTION
PROS
CONS
IN SHORT...
No change m fhe
Crystal is a niche market anyway,
We sold 14 lots m 2012 9 of them
Stay the course ;
currently listed lot
EDA keeps lot paces where they
maximizes ultimate revenue per =
at market este the market is
EDA can 4hold out for-
`, r.
tettertlmes
paces;_ ,
slowly sfrengthenmg , .
�
T
Staff negotia(es p�ceetlucfions
� a
on case bycase basis (how long
EDA has owned the lot other
#
lots/activity nearby urnque lot
chaactenstics exceptional
Selec#ive F
gyahties of the builder's,prop6sal)
We'may be able to hit the'sweet
n , E ,
i ` �, r;
negottated pace
staff'must present rationale for
spot' with accelerated absorption
Let's give it a try and
MIN ctions from
EDA`board review and approval at
of lots without sacnf cmg too much
,.
Will reduce EDA revenue
see d it helps move
listed lot paces_ ,
iotsale.hearing . _ .'
revenue U
somewhat
more lots; ,
Significantly reduces ultimate
revenue per lot; may attract
Even if successful,
builders with a lower -quality
the EDA would be
Reduce lot prices
EDA reduces lot prices to try and
May start a snowball effect and
product; regional market forces
'Winning" a race to
across the board
increase builders' interest
"unstick" the market
too powerful to be "unstuck"
the bottom
rlitely cabs from
&tear
Ongoing,(raay neetl .+
j ' . $
"L'ot for sign's with City Hall
Def generate
mter�ested parties who might riot
nor�nalwear occasional
vandalism in 2009,iheyacost
replace the signs
4
Sale"
uvebsite
know
$1;000 ofiz0�ri,,,
o ,;
�014j, ;_y� �:�
Signs ,� a < �,
phone, number and _otherwise
of the program,,.
for-a�batc�i x,„, ,
m � � _.. .
EDA has a list of, X60 interestetl
These are people orbui�ders'wro
T,oes�4�`mai m s er 'ear
haveevrousl€ex }ressed
s t x ;' , .
{4
Drrect=marl tot
aaa<cost of less than $100 elr
inin `our lots (can t get
fLterest
-, r H
(
ty ;Newslettera�Cable Channels
,� ` ;�
Noneibutfreemed(a�isspoSadic
Ongoing„except
Free media /
12 & 16 Sun- Post news=City
, . s
No cash cost fo city easy to �
Crargslis� m 2010 and alli�
Crargsl st(not worth
wefnetl
we time
,;
hassle), �1
ativertisrng „; „
Website Craigslrst, ;etc f
update,y #,;, 3e ,
got was spam/wasted > . ;the
.._.. a,..
5
A wider audience, but is it the right
audience? (general public vs.
Its a high cost / low
Advertising (pay)
Star Tribune, Sun Post, etc.
Reach a wider audience
builders)
value proposition
' ' f
`
No better wayfto reach bund !Mph
f { �1 r
t
Le)'s try r m 2013
y
kix R 1 � �l5 'S..
Join $ATCgand
� L f. V i^” 3 �-
EDANtoms Builder's Assoaatron of
9...r `�t .� � l '''1'`..'S
and near the Twin Cities metro x
4
;:
Cgst$645 annuat4membershrp
and see i rt helps , ,;
,
�
do d1}}1�r.est mail to ,the
...h
Twin Cities (BTC) to get
area, woultl`also get on BATC sa
fee plus .$300 each time we,do a,
.-
how many marlmgs
�fi4Nk�fY
�
�50 burltlers �
avarla6�e
� �,�..�<_
do?
its members �
rnailmg hst of
Irst of lots ,�, r#
mailing ^, �,_� _ � ., r „�,,,:
should we -
�.
NO sure W many
r
$
fi -
people%bidders look for lots on the
l
r t
IVILS�pergot cost 300/ earYY+
� Y
,
Trying rt with our x '
orti thg„MLS (no
=
EDA lots will show up on JVILS';
�
�f the bwlder is t
CDBG funded l*ot.at
k
-coin
�
00 commission
a;realtor., �
Zane
realtor)y • • s �,, �
Home Avenue _,,, , r , , ,;, ,,,
searches „ ; ,, : � .represented
by , r , t•, G, :4330
Probably not worth
the commission;
Listing agreement with a full-
adds a layer
List lots for sale
service realtor to sell EDA lots;
EDA lots will show up on MLS
Paying -6% commission on lot
between EDA &
w/ realtor
includes MLS
searches; realtor connections
sale price
builders
Groes builders a Ion er enod of
9 P
Builder buys option �6-months for
time to find `a homebuyer for the
We've been do►ng ;
$50Q)j,,when'ready toudd
new house has the effect of
fhis since 2010 and rt
Sell options ori
submits house plan for EDA
getting some of our lots on the
Builders may be reluctant to
defimtely helped
lots ”; • ... • :; =hearing
and approval. „MLS
7 r
without EDA expense:or ask
s ,end $ to "lock,m”-a_lot
�P.
drive lotsales •-: ,
Cost of building then maintaining
& staging; paying 6% commission
EDA picks a highly visible lot,
on sale price; market risk if it
selects house plan, bids & hires
doesn't work; competing with other
We might get more
contractor to build house, then
May get people and builders to
builders' houses on other EDA
interest in EDA lots,
uses the listing, showings and
look at EDA lots; a finished model
lots; would break the EDA's
but costs/risks
Build model
open houses to market the other
home should sell more easily than
longstanding tradition of leaving
probably outweigh
home
lots and generate interest
a vacant lot
homebuilding to the private sector
benefits
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ME'-
ILDERS ASSOCIATION OF THE TWIN CITIES
evelopers Council
(P) 651-697-1954 .(F) 651-697-7599
LOOKING FOR LOTS?
Great Lots Now Available
Carver
Carver Ridge
3
C
105,900-119,900
Gestach & Paulson Const.
Chanhassen
Lake Harrison
1
C
279,900
David Gestach
952-448-3332
Centerville
Peltier Lake
1
O
139,000
Gonyea Company
Eden Prairie
Serenity
8
C
139,000-249,000
Dave Gonyea
Maple Grove
Prominence Creek
55
C
170,000-319,000
612-990-7000
Maple Grove
Whispering Creek
36
O
169,000-259,000
Plymouth
Woodcrest
54
C
109,000-179,000
Jordan
Timberline Business Park (office/industrial)
5
O
131,000-265,000
Hartman Communities
1-20 acres (can be
Mayer
Hwy. 7 & 25 (retail)
divided)
O
19,400
Terry Hartman
10 acres -wooded
Mayer
Acreage/investment
land only
O
199,000
952-368-4547
Victoria
Residential Developemnt
120 acres
O
call for pricing
Waconia
Pine Business Park (office/industrial)
4
O
299,900-699,900
Edina
Parkwood Knolls/West Ridge Farm
10
O
379,900-579,000
Carl M. Hansen Companies
Carl Hansen 952-912-9895
Big Lake
Norland Park
6
O
19,900
Homes Plus Designers/Builders, Inc.
Hanover
Crow River Hts E 3rd
1
O
29,900
Tim 763-428-8200
www.homesplusinc.com
Blaine
Naples Marketplace (commercial)
6
O
see builder
Hokanson Companies
Buffalo
30 acres
12,000/acre
Roger Hokanson
Lino Lakes
Turnberry Crossing
17 double lots
see builder
763-784-4792
Lino Lakes .
9.50 acres (zoned multiple)
see builder
Lake Elmo
Whistling Valley
8
O
250,000-300,000
Kootenia Builders, Inc.
Lino Lakes
Oakwood View
3
O
120,000-150,000
Bob Eibensteiner
North Oaks
Rapp Farm
3
O
225,000-350,000
651-248-8636
Bloomington
The Bluffs on Sans Pierre
15 SF villa lots
O
230,000-350,000
L.A. Laukka Development
Lakeville
Spyglass
22
O
87,000-109,000
Peter Jarvis 952-896-1971
Gorda Olsen 612-816-0839
SF = single-family TH = townhome MF = multi -family Page 3
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