1. White Springs Farm
Development Plan
Upper Providence Township,
Montgomery County, PA
Matthew T. Caffrey
Drexel University
Real Estate Development REAL 568
March 12, 2011
2. Table of Contents
Project Summary…………………………………………….. 3
o Property Information
o Zoning
o Proposed Lots
Market Analysis…………………………………….. 7
o Strategic Location
o Demographics
o Regional Economy
o Housing Market
o Desirable Amenities
o Comparable Communities
o Net Market Analysis
Project Narrative ……………………………………. 16
o Physical Site Characteristics
o Base Map
o Yield Calculations
o Site Plan
o Design Concept
Development plan …………………………………… 23
o Acquisition
o Approvals and Entitlements
o Financial Analysis summary
Marketing Plan ……………………………………… 25
Appendices
o Pro-Forma
o Fees
o Schedule
o Relevant Zoning Ordinances
2
3. Project Summary
Property Information
86.02 Acres
335 Mennonite Rd.
Upper Providence Township
Montgomery County
Parcel ID: 61-00-03637-00-1
Spring-Ford School District:
Zoning
Interchange Office 3 (IO-3) Zoning District which permits a mix of residential and non-
residential uses that will enhance and replicate traditional village development.
Residential uses are permitted uses within the IO-3 district under strict circumstances. The
property must be at least 40 acres, have at least 500 feet of frontage on a road classified as a
collector, and must be at least 2,000 feet from an Arterial Road.
Both parcels are at least 40 acres, located at least 2,000 feet from an Arterial road, each have at
least 500 feet of frontage on a collector road (Arcola), As a result, each parcel can utilize a
higher density (3.25 units per developable acre). Furthermore, because the southern parcel has
frontage on a limited access highway (Route 422), the density can be even higher (5.25
units/developable acre).
While the Residential Use Group (RUG) is a permitted in the IO-3, application of this use into
this zoning district will require Conditional Use Approval in addition to Preliminary and Final
Approval.
Proposed Lots
120 Single-family attached
o Typical Product Dimensions: 26’ wide and 32’ wide Towns
o Average Lot Depth: 100 ft.
194 Condominium units
o Typical area of 850 sf
Served by public sewer and public water
3
4. Site Photos
Northern parcel, future location of townhouse development; intersection of Arcola Rd.
and Mennonite Rd.
Northern parcel, future location of townhouse development; potential wetlands in the
mid-ground, Providence Town Center in the background
4
6. Southern parcel, future location of multifamily condominiums; Route 422 in the background
Southern parcel, future location of multifamily condominiums; Providence Town Center in the
background
6
7. Market Analysis
Strategic Location
White Springs Farm (the Property) is located in Upper Providence Township, Montgomery
County, PA and serves as a bedroom community to Philadelphia, King of Prussia, Reading, and
West Chester, PA.
The property consists of two parcels (approximately 46 and 40 acres respectively) which are
bisected by Arcola Road, and located at the intersection of Mennonite Road and Arcola Road.
The properties are visible from Route 422, with access to the highway at the Collegeville
Interchange less than one (1) mile away. The closest major intersection is at Route 29
(Collegeville Road) and Arcola Road approximately one-half mile away.
A major selling point of White Springs Farm will be its easy access to major roadways. This
will translate into quick commutes to the employment, shopping, and recreational centers of
Montgomery and Chester Counties.
White Springs Farm has easy and convenient access to Route 29 and Route 422, translating into
a quick commute to nearby employment centers, including Collegeville-Oaks and King of
Prussia-Valley Forge. From Route 422 residents will have convenient access to many of the
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8. region’s major highways including: Route 100, which allows for easy access to major
employment centers in Chester County, including Exton and Malvern, the Schuyllkill
Expressway (Interstate 76) and The Pennsylvania Turnpike (I-276) providing access to
Philadelphia to the East and Reading to the West, and, the Northeast Extension and the “Blue
Route” (I-476) for points North and South.
Distances and drive times to major population and employment centers are detailed below:
Distance to Area Destinations
City/Employment Center Miles Drive Time
King of Prussia, PA 11.2 16 Mins.
Norristown, PA 11.2 22 Mins.
Plymouth Meeting, PA 14.8 29 Mins.
West Chester, PA 19.8 34 Mins.
Horsham, PA 25.8 45 Mins.
Philadelphia, PA 29.5 39 Mins.
Reading, PA 32.2 41 Mins.
Doylestown, PA 40 52 Mins.
Allentown, PA 44.1 63 Mins.
Trenton, NJ 52.5 64 Mins.
Harrisburg, PA 89.1 1 Hr. 47 Mins.
Atlantic City, NJ 90.6 1 Hr. 49 Mins.
Baltimore, MD 102 2 Hrs. 16 Mins.
New York, NY 115.8 2 Hrs. 10 Mins.
Washington, DC 140.3 3 Hrs. 4 Mins.
Source: www.mapquest.com
Population
According to the Delaware Valley Regional Planning Commission (DVRPC), municipalities
located within the 422 Corridor are projected to experience the greatest population increases
within Montgomery County. This is a continuation of past trends of residents that are moving
further from areas such as Philadelphia and its surrounding suburbs, where developable land is
scarce thereby increasing home prices. The DVRPC is anticipating that residents will maintain
the trend of seeking more affordable housing options along the 422 Corridor where developable
land is in greater supply, the network of highways provides residents with the ability to commute
to employment centers, and employers have more options to relocate to suburbs.
Upper Providence Township is expected to be one of the faster growing municipalities, ranking
2nd among municipalities in Montgomery County with an estimated population increase of 6,918
residents by 2020 (an increase of 69%).
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9. Estimated Population Change
Municipality 2000 2005 2010 2015 2020 Absolute Change % Change
Limerick Township 13,535 16,506 17,944 19,304 20,590 7,055 65.7%
Upper Providence Township 15,395 18,391 19,772 21,077 22,313 6,918 69.0%
New Hanover Township 7,365 9,000 10,672 12,253 13,749 6,384 53.6%
Skippack Township 9,915 12,416 13,503 14,531 15,504 5,589 64.0%
Lower Providence Township 22,390 24,900 25,975 26,991 27,952 5,562 80.1%
Franconia Township 11,525 12,200 13,505 14,739 15,906 4,381 72.5%
Source: Delaware Regional Planning Commission
According to the Upper Providence Township Comprehensive Plan and the Delaware Valley
Regional Planning Commission: “Using the 2.63 persons per household number determined
with the 2007 housing and population data, and the projected population of the Township by
2020, there will need to be an estimated 2,629 new dwelling units.”
REGIONAL ECONOMY
Employment
Residents of White Springs Farm will be within a short commute of the largest employment
centers in Southeastern Pennsylvania, especially those located in Montgomery and Chester
Counties.
Montgomery County is the largest employment center in the Delaware Valley. In fact,
employment in the County increased by more than 60% from 1990 to 2000, when more than
42,000 high-paying jobs were created. Many of the companies responsible for this increase are
located along the Route 422 Corridor in Collegeville-Oaks, adjacent to White Springs Farm and
King of Prussia-Valley Forge, about a 15-minute drive from White Springs Farm.
The Collegeville-Oaks area along Route 422 is one of the fastest growing commercial centers in
all of Southeastern Pennsylvania. Large corporations such as Wyeth, Glaxo Smith Kline, Quest
Diagnostics, and Iron Mountain either maintain their corporate headquarters or have a large
presence in Collegeville. SEI Investments, a large financial services firm, has its headquarters in
nearby Oaks.
As the economy continues to improve, more major companies can be expected to follow the lead
of these companies. Collegeville and Oaks currently have about 3 million square feet of office
and lab space. This will increase to 4.5 million square feet once all committed projects are built.
In terms of office space, this area now rivals and will soon surpass the other Montgomery
County employment centers; Conshohocken and Horsham-Willow Grove.
King of Prussia-Valley Forge is an even larger employment center, straddling both Montgomery
and Chester Counties. This area hosts such giants as Lockheed Martin and Vanguard. King of
Prussia, in Montgomery County, has grown from just 5,000 jobs in 1960 to more than 50,00 in
2008. In fact, at its height King of Prussia had almost two jobs for every one resident. In total,
the King of Prussia-Valley Forge market boasts 16.3 million square feet of office space.
The Exton-Eagle Area, located in Uwchlan Township and West Whiteland Township, about 30
minutes from White Springs Farm, is one of the largest employment centers in Chester County.
The Oaks Corporate Center has over 1.17 million square feet of office, flex, warehouse, and
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10. retail space in 26 buildings. The Eagleview Corporate Center features over 435 acres of
commercial space.
Malvern, also a 30-minute drive from White Springs Farm, has also become a major
employment center, especially for the biotechnology industry. Employment in Malvern is
centered in The Great Valley Corporate Center. This 650-acre office park is home to over 350
local, national, and international companies. Vanguard, the large investment management firm,
and Ikon Office Solutions, the world’s largest independent distributor of office equipment, both
maintain their headquarters in Malvern.
Montgomery and Chester Counties offer jobs in many high-paying and fast-growing fields.
Historically, employment growth in both of these Counties has been robust. According to
forecasts by the Delaware Valley Regional Planning Commission, the two Counties will see a
combined addition of nearly 50,000 jobs by 2010. Health care and pharmaceuticals are the
dominant industries of these
Counties, as can be seen in the table below:
Largest Non-Governmental Employers - 4th Quarter 2009
Montgomery County
Ra Employer City No. of Employees Industry
nk
1 Merck & Co. Inc. West Point 12,000 Pharmaceuticals
2 Abington Memorial Hospital Abington 4,917 Health Care
3 Allied Barton Security Services King of Prussia 4,500 Security
4 Northwestern Human Services, Inc. Lansdale 4,000 Outpatient Mental
5 Lockheed Maring Corporation King of Prussia 3,700 Technology
6 Unisys Corp. Blue Bell 3,400 I.T.
7 AETNA Life Insurance Company King of Prussia 3,000 Health Insurance
8 Citizens Bank Norristown 3,000 Financial Services
9 Mercy Health System Conshohocken 3,000 Health Care
10 Propoco Inc. Plymouth Meeting 3,000 Facilities Support
11 MDS Pharma Services King of Prussia 2,871 Testing Laboratories
12 Home Depot, USA Inc. Lansdale 2,500 Retail
13 IKEA US, Inc. Plymouth Meeting 2,400 Retail
14 Quest Diagnostics Collegeville 2,321 Health Care
15 Holy Redeemer Health System Huntingdon Valley 2,068 Health Care
Sources: Select Greater Philadelphia, Greater Philadelphia Chamber of Commerce, 2010. Major Employers Directory. Philadelphia
Business Journal, 2010. Book of Lists 2010. Dun and Bradstreet, 2010. Selectory Database for the Greater Philadelphia Region.
10
11. Largest Non-Governmental Employers - 4th Quarter 2009
Chester County
Rank Employer City No. of Industry
Employees
1 The Vanguard Group Valley Forge 8,500 Investment management firm
2 SunGard Data Systems Wayne 2,500 Computer and software services
3 Tyco Electronics Newtown Sq. 4,000 Software & Hardware
4 QVC West Chester 2,800 Electronic retail merchandising
5 Siemens Medical Solutions Malvern 2,000 Medical technologies; healthcare
information systems
6 Devereux West Chester & Berwyn 1,500 Mental Health Services
7 Unisys Malvern 1,500 Technical solutions and software
8 Telespectrum Berwyn 1,300 Telemarketing Services
9 Wyeth Frazer 1,250 Pharmaceutical testing laboratories
10 Paoli Hospital Paoli 1,100 General medical & surgical hospital
11 Brandywine Hospital Coatesville 975 General medical & surgical hospital
12 Chester County Hospital West Chester 975 General medical & surgical hospital
13 Communications Test Design West Chester 950 Telecommunications, repair and
14 Centocor (a J & J company) Malvern 820 Pharmaceutical manufacturing
15 Cephalon West Chester 800 Pharmaceutical manufacturing
Sources: Select Greater Philadelphia, Greater Philadelphia Chamber of Commerce, 2010. Major Employers Directory. Philadelphia Business Journal,
2010. Book of Lists 2010. Dun and Bradstreet, 2010. Selectory Database for the Greater Philadelphia Region.
Income
Prodigious job growth and easy access to the major transportation networks of the Delaware
Valley led to Montgomery County having the second-highest median household income in
Pennsylvania and the 67th highest in the entire nation in 1999. At $60,829, the County’s median
household income was approximately 52% higher than the median for Pennsylvania during the
same time.
The median household income in Upper Providence Township in 2009 was $ 100,794, which is
higher than that of Montgomery County and higher than the median of the surrounding
Townships.
Compared with the other municipalities located along the 422 Growth Corridor, Upper
Providence ranks 2nd for highest median household income; ranking behind Lower Providence
which is immediately adjacent to Upper Providence albeit further east.
Median Household Income
Municipality 1999 2009 Absolute Change % Change
Lower Providence Township 74,902 105,463 30,561 141%
Upper Providence Township 85,660 100,794 15,134 118%
Skippack Township 78,043 100,758 22,715 129%
New Hanover Township 70,789 85,833 15,044 121%
Limerick Township 73,296 82,546 9,250 113%
Franconia Township 67,209 76,096 8,887 113%
Source: US Census
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12. Household incomes in Upper Providence Township are even more impressive when examined in
greater detail: 67.1% of households had an income greater than $75,000 and 50.5% had an
income greater than $100,000 in 2009.
Housing Market
The housing market of Upper Providence Township and Northwestern Montgomery County is
driven by rapid population growth and a limited supply of new housing along the Route 422
Corridor.
As population and jobs have exploded along Route 422 in Montgomery County, housing prices
have risen and the supply of developable land has dwindled. High home prices in the areas
immediately surrounding the Route 422 employment centers have forced people to look further
north for housing.
Thus, the major growth areas for new housing are currently located in Northwestern
Montgomery County, Northeastern Chester County, and Southeastern Berks County. Due to
convenient access to major roads, these areas have become bedroom communities to the major
employment centers located along Route 422 and Route 100.
This trend has led to rapid population gains in Northwestern Montgomery County. For example,
Limerick Township, which borders Upper Providence Township to the west, experienced
population growth of an astounding 143% from 1990 to 2004. This demand for new housing led
to increased competition for developable land that is appropriately zoned for housing and has
access to public utilities.
Upper Providence Township is no exception and at present appears to have a dearth of
developable tracts of land, particularly land suitable for single-family attached and multi-family
housing. The Comprehensive Plan, which was adopted by Upper Providence Township in the
Fall of 2010, specifically addresses the lack of multi-family and attached housing products and
lists determining how to best provide zoning to permit the development of some of the remaining
IO-3 land as multi-family, as detailed within the Land Use Plan as a High Priority item for the
Board of Supervisors, and Planning Commission.
Housing Permits Issued - Upper Providence Township
Year: 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
SF-Detached 171 149 117 242 170 225 106 114 47 10
SF- Attached 103 - - 108 36 75 61 58 47 16
Other - - - - - - - - - -
Total: 274 149 117 350 206 300 167 172 94 26
Source: Upper Providence Township Comprehensive Plan
Area Amenities
Shopping
Residents of White Springs Farm will have convenient access to shopping opportunities in the
region. Most notably is the newly constructed Providence Town Center which is within walking
distance to the property, and may be connected by a network of walking and bike paths. The
12
13. promenade-style shopping center will consist of 740,000sf of retail and dining, anchored by a
Wegman’s Supermarket, features a mix of casual and convenient dining options including: P.F.
Chang’s, Olive Garden, Elevation Burger, and Q’Doba. Additionally, the center has a variety of
junior-box retail stores such as: Best Buy and Raymour & Flanagan, and in-line shopping stores
such as Five and Below, Olly Shoes, Pearle Vision, Staples, and PetSmart.
Regional shopping experiences will also include the King of Prussia Mall, which is one of the
nation’s largest malls with nearly three million square feet of retail space, within a 20-minute
drive of White Springs Farm.
Recreation
Upper Providence Township has made outdoor Recreation and important component of the
Municipality, specifically addressing the need for additional walking trails within the
Township’s Comprehensive Plan. Presently, Upper Providence boasts one of the best walking
trails in the region – the Schuylkill River Trail – and have identified portions of White Springs
Farm as an opportunity to network with the Schuylkill River Trail to further enhance the walk-
ability of the Township and the residents’ experience.
Other large parks in the area include French Creek State Park, Evansburg State Park, and the
Valley Forge National Historical Park.
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14. Comparable Communities:
There are no comparable townhome or multi-family communities that are actively selling within
Upper Providence Township; in fact there are currently zero (0) comparable communities that
are actively selling within a five-mile radius of the property.
The closest comparable community is the Riverwalk at Royersford which is located further west
along Route 422 near the Royersford/Limerick interchange. The community opened in 2006 and
consists of a total of 98 homes, of which 96 are currently sold. The starting prices for the
remaining two homes in Riverwalk at Royersford are $217,000. The less desirable location and
school district, coupled with a very challenging economy have clearly had an adverse impact on
the sales at Riverwalk, however with a much better location (Collegeville interchange), with
greater amenities, a better school district, and an improving economy, White Springs Farm is
poised to have a higher prices and greater volume of sales on a monthly basis.
Other comparable communities in the general vicinity include Hanover Square in Pottstown
being offered by Cornell Homes, Coddington View in Pottstown and Biltmore Estates in
Skippack which are both being marketed by TH Properties (THP). Given the inferior location
Hanover Square and Coddington View and the public relations issues that THP has experienced
during the economic downturn, these communities are being offered at lower price points to
attract customers.
Community Municipality Type Beds Baths Starting From Price: Sq.Ft. Builder
Biltmore Estates Harlesyville (Skippack Twp.) Townhomes 3 2.5 $215,900 - $224,990 1790 - 1846 TH Properties
Hanover Square Pottstown Townhomes 3 2.5 $149,900 - $210,990 1712 - 2137 Cornell Homes
Coddington View Pottstown Townhomes 3 2.5 $174,990 - $194,990 1825 - 2357 TH Properties
Longview Townomes (32) Trappe Townhomes
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15. Recent Settlements:
As a result of the imbalance between supply and high demand for homes in Upper Providence
Township, prices for resale homes in the area and the volume of transactions are very
encouraging. Within the past 90-days, there have been twelve (12) recent settlements of existing
homes in the Collegeville area. Prices for condominiums range from $245,000 to $262,500 and
the median price for fee-simple townhouse units is $267,000.
Price Address Type Beds Baths Sq.Ft. Price/SF Age Settlement Date
$ 245,000.00 160 Royer Dr. #3102, Collegeville Condo 2 2.5 1,636 $ 149.76 12 1/11/2011
$ 246,000.00 127 Farmington Ct., Collegeville Condo 3 2.5 1,848 $ 133.12 12 2/7/2011
$ 262,500.00 411 Nottingham Ln, Collegeville Condo 3 2.5 2,000 $ 131.25 7 12/30/2010
$ 267,000.00 4007 Greenes Way Cir, Collegeville Townhouse 3 2.5 1,874 $ 142.48 15 1/20/2011
$ 207,000.00 344 Jefferson Ct., Collegeville Townhouse 3 2 1,520 $ 136.18 24 1/18/2011
$ 265,000.00 158 Lattice Lane, Collegeville Townhouse 2 2 1,971 $ 134.45 8 12/21/2010
$ 275,000.00 126 Lattice Ln, Collegeville Townhouse 3 2.5 2,113 $ 130.15 8 1/24/2011
$ 294,101.00 8 Norhsam Way, Collegeville Townhouse 3 2.5 2,500 $ 117.64 10 12/22/2010
$ 274,875.00 206 Yale Ct., Collegeville Townhouse 4 4.5 2,657 $ 103.45 13 12/20/2010
$ 156,500.00 130 LaFayette Ct., Trappe Townhouse 3 2.5 1,520 $ 102.96 26 1/25/2011
Net Market Analysis:
As previously noted, population in Upper Providence Township is expected to increase by
approximately 2,540 people by 2020, or 254 people each year. Using the rate of 2.63 persons per
household, that would result in the addition of 96 new dwellings each year.
Currently there are zero (0) single-family attached or multi-family communities that are actively
selling new construction in the Township. Furthermore, per the Montgomery County Planning
Commission, currently there are zero (0) housing development projects proceeding through the
Township approvals process either. There is a fully-approved 32-unit townhouse community in
nearby Trappe Borough that is currently being offered for sale by Longview Associates. If built,
these homes, while in a less desirable location, would be in direct competition with White
Springs Farm and therefore diminish the potential Net Market analysis. Additionally, there are
three single-family communities that are actively selling in area: Claymont, which is a single-
family detached community offered by Michael Anthony Homes with homes starting from the
mid-$300,000s; Edgehill, which is a luxury community offered by Bentley Homes with homes
starting from the upper $00,000s, and Regency Hills at Providence, which is a luxury Active
Adult community with homes starting from the upper $300,000s.
Even with other competing homes in the area, White Springs Farm should command a higher-
than-normal percentage of the market-share of new home buyers in the Township because of the
attractive price points, diversity of product type, local amenities and access to the highway. On
the conservative-side, it is estimated that of the 96 new homes per year, 50% will purchase from
White Springs Farm for a total of at least 48 new homes per year (4/month).
15
16. Project Narrative
Physical Site Characteristics
Currently, the White Springs Farm property is being used for agricultural purposes, and is
actively being farmed. The majority of the property is free-and-clear of wooded vegetation,
wetlands, steep slopes, or rock outcrops. The property has accessible frontage on Mennonite
Road and Arcola Road with inaccessible front on Route 422.
Site Map
While the property appears to be highly developable, upon further inspection there are some
areas of concern that may reduce the developability of the project. While there are no identified
wetlands on the property, after reviewing the Pennsylvania Soils Map there is the presence of
hydric soils. Hydric soils alone do not classify as a wetland, however hydric soils in conjunction
with wooded vegetation and a water source typically result in the classification of wetlands. As a
result, a sizable band of the property has been deemed un-developable due to the combined
presence of water (the stream), wooded vegetation, and hydric soils.
16
17. Never-the-less, of the original 86.02 Acres that comprise the property, approximately 74 Acres
are still developable. The delta between Gross and Net Developable includes wetlands and their
respective buffers, along with areas that will be dedicated as Ultimate Right-of-Way.
Based on the site calculations for developable area, in conjunction with the maximum yields
determined by the zoning ordinances for the IO-3 Zoning District, it was calculated that the
maximum yield for new homes is 120 Townhouse units (located on the Northern Parcel) and 194
Condominium/Multi-family Units on the Southern Parcel as evidenced on the corresponding
table.
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18. SITE CALCULATIONS - TOWNHOMES SITE CALCULATIONS - CONDOMINIUMS
Gross Acreage: 46 Acres Gross Acreage: 40 Acres
Wetlands/Hydric Soils: 6 Acres Wetlands/Hydric Soils: 2 Acres
Ultimate ROW: 3 Acres Ultimate ROW: 1 Acres
Net Developable: 37 Acres Net Developable: 37 Acres
Residential Use Group: 3.25 Units per Dev. Acre Residential Use Group: 5.25 Units per Dev. Acre
Total Yield: 120.25 Units Total Yield: 194.25
Total Yield: 120 Homes Total Yield: 194 Units
Phase I 56 Units
Phase II 64 Units
Project Total: 314
With an ultimate design comparable to the conceptual layout provided herein.
The design concentrates dwelling units into their respective neighborhoods while providing vast
areas of open space that can be used for private use by the residents and public use by the
community at large. Per the ordinances, a minimum of 50% of the community can be covered by
18
19. impervious surface, of which only 25% can be of building coverage. In addition to meeting the
ordinance requirements to provide sufficient pervious surface and open space, the quality of the
resulting community is vastly improved.
The layout for the property is the quintessential suburban neighborhood, which helps to
transition between the existing single-family homes and the retail and commercial center.
However, there is the possibility to take on a more urban atmosphere if the township and its
residents preferred. In lieu of that approach, however, the concept used would be reminiscent of
the townhomes and multi-family units depicted herein.
Design Concept: Townhomes Elevations
19
20. The townhome units will be start from 1,600 square feet (with an unfinished basement) and
offer 3 Bedrooms, 2.5 Baths . A four bedroom, 3 bathroom model may be introduced as well.
20
21. Design Concept: Condonimiunms Elevations
Note: per the Township ordinances, the maximum building height for multi-family units is 35’.
To best meet this requirement, the multi-family units shown on the sketch plan consist of two-
stories with a 12-units per floor. The image shown is a 3-story building with 8-units per floor,
and may not be permissible by the ordinances. As such, the image shown is for architectural style
purposes only and may need to be altered to accurately reflect the units built.
21
22. Design Concept: Condominium Floor plans
The typical condominium unit will be approximately 800 square feet and feature 1 BR, 1 Bath; a
2 BR, 2 BA model will also be available.
22
23. Development Plan
Property Acquisition
White Springs Farm is currently owned by an LLC of the same name, which shares a mailing
address with the regional homebuilder McKee Group. At present time, McKee does not appear to
have any plan submitted to the Township for the development of this property. It is not
uncommon for land developers to by-pass the Multiple-List Services and Real Estate Brokers
that have “hot leads” on properties, and instead rely on providing unsolicited offers to the
landowners expressing an interest in acquiring their land. Although the property is currently
owned by a developer, that does not mean that the process of acquiring this land and providing
an unsolicited offer, would be any different.
According to Montgomery County Property Records, the assessed value of the property is
$2,124,000. The most recent transaction for this property was in 2000, when the property was
purchased for $2,275,000.00. As such, the negotiated Purchase Price that would suit the
development plans illustrated herein would be approximately $4,825,000; which represents a
200% increase in the original price paid.
Land Acquisition Loan: 1 2
Acqusition Costs: $ 4,825,000.00 Initial Balance: $ 2,412,500.00 $ 2,379,194.50
LTV (50%): $ 2,412,500.00 Payment: ($165,993.00) ($165,993.00)
Debt: $ 2,412,500.00 Interest Portion: $132,687.50 $130,855.70
Duration: 30 years fixed, 10-year balloon Principal Contribution: $33,305.50 $35,137.31
Rate (5.5%): ($165,993.00) Ending Balance: $ 2,379,194.50 $ 2,344,057.19
Approvals and Entitlements
To further expedite the process, the intent for this development would be to apply the property as
Planned Residential Development which according to the PA Municipalities Planning Code can
achieve “Tentative Preliminary Approvals” at the sketch plan level. This will enable the project
to achieve Final Approvals significantly faster than the traditional approvals process and
additionally, by holding initial conversations with the township at an early stage, the
development plan can be best tailored to reflect the desires of the Township and the community.
This may include providing more Open Space than what is shown in exchange for higher
density, or creating a layout for the community that reflects a Neo-Traditional Design or a more
urbane feeling.
The property is served by public sewer and water, of which sufficient capacity of each should be
available from the Municipal Utility service or private provider.
Financing Plan
The development schedule for the property has loans. The first is a land acquisition loan to cover
the cost of acquiring the property ($4,825,000) after obtaining Preliminary Approvals, of which
it is assumed the developer will have to put up a sizeable amount of equity ($2,412,500) to
achieve a loan-to-value rate of 50%.
23
24. However, because the property will be acquired prior to being able to construct, the developer
will have to carry the costs of the property until a permanent or construction loan can be obtained
prior to construction. The schedule calls for construction to begin within one (1) year of closing
on the property. The second loan financing this development uses a 30-year amortized mortgage,
with a balloon payment of the balance due after 10-years, to cover the cost of site improvements,
construction costs, and repays the initial loan to cover the land acquisition costs. A detailed pro-
forma is included herein.
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25. Marketing Plan
By offering various price points and product types, with a primary focus on first-time home-
buyers, the community should meet its ambitious sales goals. In particular, the marketing
strategy would attract to young urban professionals that are currently renting that are looking for
affordable home ownership opportunities that is pedestrian friendly with high walkability to
neighborhood amenities. Additionally, the multi-family/condominium component will be
attractive to homeowners that prefer to have little-to-no maintenance requirements. As such, the
Condominium units will have a Condo Association, while the Townhouse community will most
likely have a Home Owner’s Association, but only if the market demands one. The starting sales
price for the 1BR, 1BA units will use a loss-leader of approximately $175,000 with the
expectation of averaging at least $196,000 for all units, exclusive of upgraded finishes and
appliances. The community anticipates selling six homes per month throughout the development
lifespan, and will adjust pricing accordingly to maintain that sales pace.
It is expected that sales of the condominium units will commence with the opening of the project
and will continue through the anticipated 32 month life of the project, using the price of the units
to either stimulate or slow-down sales as necessary. The townhouse community will be
developed in two phases, with a lower point for the first phase to help establish the community,
and a higher price point for the second phase which will help to further amortize the
development costs. Homes in the first phase will feature a loss leader of $265,000 per month,
with a pace of selling four homes per month with an average sales price of approximately
$276,000 for the duration of Phase I, exclusive of upgraded finishes and appliances. Similarly,
homes in the second Phase of the townhouse development will be expected to sell four homes
per month with an average price of $310,000 exclusive of upgrades.
Although it is not depicted on the sketch plan, a community center may be an attractive amenity
to offer residents if the market demands it; however the proximity to the nearby LA Fitness
Center may make such a community feature superfluous.
A development schedule is included herein.
An alternative approach to the construction of the community in its entirety, would be to partner
with a national home builder, such as NVR or Richmond American Homes (MDCH), who would
have an interest in acquiring the lots and selling homes with a rolling-option. In this
circumstance, the developer of the property would furnish and complete all improvements to the
infrastructure, thereby creating “finished lots” that are suitable for home construction. The
homebuilder would be contractually obligated to buy a minimum of lots per quarter at a set price
until the project is built-out.
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29. Approvals, Inspections, and Site work Costs
Inspections Costs - Townhomes Inspections Costs - Condos General Sitework Costs Est. Cost Total Per Unit
Wetlands Delineation $ 525.00 Wetlands Delineation $ 525.00 Survey (per lot) $ 1,200.00 $ 153,600.00 $ 489.17
Bog Turtle Habitat $ 525.00 Bog Turtle Habitat $ 525.00
Phase I Audit (Soil Test) $ 2,100.00 Phase I Audit (Soil Test) $ 2,100.00
Clearing & Grubbing (per Acre) $ 4,000.00 $ 160,000.00 $ 509.55
Survey & Topo $ 10,500.00 Survey & Topo $ 10,500.00 Field Mowing (per Acre) $ 70.00 $ 4,900.00 $ 15.61
Legal Representation $ 3,125.00 Legal Representation $ 3,125.00 Site Earthwork (per Acre) $ 10,000.00 $ 400,000.00 $ 1,273.89
Conceptual Sketch Plan $ 1,600.00 Conceptual Sketch Plan $ 1,600.00 Building or Barn Demolition (each) $ 18,000.00 $ 18,000.00 $ 57.32
Base Map Preparation $ 525.00 Base Map Preparation $ 525.00 Erosion Control (per Acre) $ 1,250.00 $ 50,000.00 $ 159.24
Geotechnical Analysis $ 3,700.00 Geotechnical Analysis $ 3,700.00
Basin Construction (per Acre) $ 35,000.00 $ 140,000.00 $ 445.86
Subtotal Inspections: $ 22,600.00 Subtotal Inspections: $ 22,600.00
Per Unit $ 188.33 Per Unit $ 116.49 Grading Subtotal: $ 926,500.00 $ 2,950.64
Approvals Costs - Townhomes Approvals Costs - Condos Storm Sewer $ 950.00 $ 298,300.00 $ 950.00
Engineering - Site $ 16,200.00 Engineering - Site $ 16,200.00
Engineering - Additionals $ 6,500.00 Engineering - Additionals $ 6,500.00
Sanitary Sewer (Gravity Pipe) $ 950.00 $ 298,300.00 $ 950.00
Engineering - Water & Sewer $ 5,400.00 Engineering - Water & Sewer $ 5,400.00
Amdinistrative Costs (Prints) $ 3,500.00 Amdinistrative Costs (Prints) $ 3,500.00 Pump Station (each) $ 190,000.00 $ 190,000.00 $ 605.10
Engineering - Legal $ 5,400.00 Engineering - Legal $ 5,400.00 Water Distribution $ 950.00 $ 298,300.00 $ 950.00
NPDES Testing $ 2,200.00 NPDES Testing $ 2,200.00 Sewer & Water Subtotal: $ 786,600.00 $ 2,505.10
Filing Fees - Municipal $ 1,100.00 Filing Fees - Municipal $ 1,100.00
Filing Fees - County $ 550.00 Filing Fees - County $ 550.00
Paving - 30' roadway with Curb &
Filing Fees - Conservation District $ 550.00 Filing Fees - Conservation District $ 550.00
County Conservation - Clean Water $ 550.00 County Conservation - Clean Water $ 550.00 Sidewalks $ 2,750.00 $ 863,500.00 $ 2,750.00
County Conservation - E&S $ 1,100.00 County Conservation - E&S $ 1,100.00
Municipal Escrow - Cost Fees $ 10,800.00 Municipal Escrow - Cost Fees $ 10,800.00 Landscaping $ 400,000.00 $ 1,273.89
Review - W&S Escrow $ 2,200.00 Review - W&S Escrow $ 2,200.00 Miscellaneous (Street Lights, etc…) $ 400,000.00 $ 1,273.89
Legal Descriptions $ 550.00 Legal Descriptions $ 550.00
Subtotal: $ 800,000.00 $ 2,547.77
DEP Planning Module Review $ 250.00 DEP Planning Module Review $ 250.00
Recording Fees $ 350.00 Recording Fees $ 350.00 Sitework Subtotal: $ 2,513,100.00 $ 8,003.50
Contingency $ 5,400.00 Contingency $ 5,400.00 Contingency (5%) $ 125,655.00 $ 400.18
Subtotal Approvals: $ 62,600.00 Subtotal Approvals: $ 62,600.00 Sitework Total: $ 2,638,755.00 $ 8,403.68
Per Unit: $ 521.67 Per Unit: $ 322.68
General Construction Costs Total Per Unit
Inspections & Approvals Total: $ 85,200.00 Inspections & Approvals Total: $ 85,200.00
Per Unit $ 710.00 Per Unit $ 439.18 Townhome $ 9,000,000.00 $ 75,000.00
Condominium $ 9,700,000.00 $ 50,000.00
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30. Project Schedule
03/11 04/11 05/11 06/11 07/11 08/11 09/11 10/11 11/11 12/11 01/12 02/12 03/12 04/12 05/12 06/12 07/12 08/12 09/12 10/12 11/12 12/12 01/13 02/13 03/13 04/13 05/13 06/13 07/13 08/13 09/13 10/13 11/13 12/13 01/14 02/14 03/14 04/14 05/14 06/14 07/14 08/14 09/14 10/14 11/14 12/14 01/15 02/15 03/15 04/15
Site Acquisition
Negotiate Contract
Due Diligence Period
Settlement
Site Inspections
Survey (Metes & Bounds)
Wetlands
Flood Plain
Topography
Phase I - Soils
Title Report
Sketch Plan Review
Preliminary Plan Design & Engineering
Planning Commission
PennDOT
Army Corps of Engineers
Sewer Authority
Water Authority
Board of Supervisors
Final Plan Approval
Architectural Design
Planning Commission
Board of Supervisors
Phase I - Townhomes
Clearing & Grubbing
Exacvation
Basins
Roads
Sewer & Water
Sales
Phase II - Townhomes
Clearing & Grubbing
Exacvation
Basins
Roads
Sewer & Water
Sales
Condominiums
Clearing & Grubbing
Exacvation
Basins
Roads
Sewer & Water
Sales
30
31. Zoning Ordinances
IO3 – Interchange Office 3
Legislative intent; tract requirements.
(1) In expansion of the statement of community development objectives contained in § 182-2 of
this chapter, it is hereby declared to be the intent of this section with respect to the RUG Use
Group to establish reasonable controls and standards of performance for multifamily dwellings in
those areas of Upper Providence Township where the existing community presence or planned
extension of sewer and water facilities would most readily accommodate the intensity of
residential dwelling types permitted in the Township, for the benefit of the residents of the
development and in furtherance of the general welfare of Upper Providence Township.
(2) The RUG Use Group shall be applicable to those tracts of property which meet all the
following criteria:
(a) The entire tract is located within the IO-3 Zoning District;
(b) The entire tract is at least 2,000 feet from the center line of a road classified as an arterial
road on the Upper Providence Township Ultimate Rights-of-Way Map;
(c) The tract has frontage of at least 500 feet on a road classified as a collector road on the
Upper Providence Township Ultimate Rights-of-Way Map; and
(d) The tract is at least 40 acres in size.
Permitted uses. In an RUG Use Group, by conditional use when authorized in accordance with
§ 182-204, a building may be erected, altered or used and a lot may be used or occupied for any
of the following uses and no others:
(1) Buildings which contain any combination of attached dwellings and two-story multifamily
dwellings. These dwellings may be open market communities and age-restricted active adult
communities.
(2) No-impact home-based business in accordance with standards set forth in § 182-21.3 herein.
(3) A principal use permitted herein may be constructed on the same lot with another permitted
principal use(s).
(4) Home occupations, provided that all the requirements of § 182-21.4 herein shall be met.
C. Residential Use Group regulations. The following regulations shall apply in the RUG Use
Group:
(1) General regulations.
(a) Ownership. The tract of land to be developed shall be in one ownership or shall be the
subject of an application filed jointly by the owners of the entire tract, and it shall be agreed that
the tract will be developed under single direction in accordance with an approved plan.
(b) Sewer and water facilities. The tract of land shall be served by public water facilities and
public sewer facilities deemed acceptable by the Board of Supervisors, upon recommendation of
the Township Engineer.
(c) Development plan. The application for conditional use shall be accompanied by a traffic
impact analysis consistent with the requirements of § 182-120E, a community impact analysis
consistent with the requirements of § 182-120I, and a sketch plan complying with the sketch plan
requirements of Chapter 154, Subdivision and Land Development. Within one year following the
32. grant of conditional use approval, the applicant shall file a plan or plans showing the detailed use
of the entire tract, which plan or plans also shall comply with all requirements of Chapter 154,
Subdivision and Land Development, and other applicable ordinances, unless these ordinances are
relaxed in accordance with § 182-120D herein. The plan shall clearly designate the proposed
use(s) of each area of tract.
(d) Development stages and permits. The development of a tract, carried out in either a single
phase or in stages, shall be executed in accordance with a development agreement. The owner,
developer and Township shall enter into said agreement embodying all details regarding
compliance with this article to assure the binding nature thereof on the overall tract and its
development, which agreement shall be recorded with the final development plan.
(2) Development regulations. The following development regulations shall be followed by all
proposed developments within the RUG Use Group:
(a) Utilities. All utility lines (electrical, telephone, etc.) shall be placed underground.
(b) Height regulations. The maximum height (as defined in § 182-24) of buildings or structures
erected or enlarged with the RUG Use Group shall be a maximum of 35 feet. Accessory
buildings shall not exceed one story or 25 feet; however, a clubhouse building shall not exceed
30 feet.
(c) Parking regulations. Parking requirements for the RUG Use Group shall be as follows:
[1] For the residents of each dwelling unit, not less than two off-street automobile parking
spaces shall be required. The required spaces, when they are not an integral part of the building
design, shall be arranged within a court or separate parking area(s). If one or more parking
spaces are provided within a garage for that unit, the off-street area in front of the garage may
also be counted as a parking space.
[2] If a clubhouse or common facility is provided, parking for that facility will be provided
pursuant to the requirements for a private meeting room or place of private assembly pursuant to
§ 182-179B(1)(a).
[3] For guest parking, the applicant shall demonstrate that there is sufficient on- and off-street
parking available. If this cannot be demonstrated to the Township's satisfaction, visitor parking
shall be provided at the rate of 1/2 parking space per unit, in addition to the parking as required
in Subsection C(2)(c)[1] above. If centrally located with respect to the majority of dwelling units,
clubhouse and common facility parking spaces provided pursuant to Subsection C(2)(c)[2] above
may be used in calculating the number of visitor parking spaces provided.
[4] No parking area of three or more cars shall be located closer than 25 feet to a perimeter
property line or to an ultimate right-of-way line of any abutting road classified as a limited-
access highway on the Upper Providence Township Ultimate Rights-of-Way Map, nor closer
than 50 feet to the right-of-way line of any other abutting road. This provision shall not apply to
parking for resident access adjacent to mailbox facilities provided within the community.
[5] In parking areas storing 10 or more cars, not less than 10% of the area devoted to parking
facilities shall consist of interior parking lot landscaping. As a requirement in the RUG Use
Group, such landscaping shall be designated on a separate landscape plan as set forth in § 182-
120C(2)(h) below and in accordance with Chapter 154, Subdivision and Land Development, of
the Code of the Township of Upper Providence.
[6] When conditions warrant, the use of reserve parking is encouraged. The requirements of
§ 182-180 of this chapter shall be applicable.
(d) Signs. Signs shall be permitted subject to the requirements of Article XIX of this chapter.
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33. (e) Access. Provision shall be made for safe and efficient ingress and egress to and from public
streets and highways serving the RUG Use Group residential development without causing
undue confusion or interference with the normal traffic flow.
(f) Common areas and facilities. The provision of certain facilities serving the entire
development, such as parking lots, interior pedestrianways, driveways or alleys, lighting
facilities, landscape planting areas, buffers, open space and recreation facilities, etc., is hereby
encouraged and may be located either on individual lots or in common areas. In cases where they
are provided in common areas, provisions satisfactory to the Board of Supervisors must be made
for their perpetual maintenance and care. The use of these facilities may be restricted to the
residents of the development, where practical, and may be maintained by the developer, a
homeowners' association or similar entity. In addition to the foregoing, RUG developments shall
provide the following facilities for the general public:
[1] Bus stop for mass transit, or area set aside for future bus stop for mass transit, if there is not
existing bus service to the tract; and
[2] Public walkways connecting the community to the surrounding properties and connecting
the surrounding properties with each other.
(g) Lighting facilities. Lighting facilities shall be provided as needed and arranged in a manner
which will protect the highway and neighboring properties from unreasonable direct glare or
hazardous interference of any kind. Lighting facilities shall be required for the safety and welfare
of the residents of the development and shall be installed by the developer at his expense and
shall be in accordance with the provisions of Chapter 154, Subdivision and Land Development,
of the Code of the Township of Upper Providence, § 154-40.
(h) Landscaped planting. A separate landscape plan shall be submitted as part of the land
development approvals, stipulating buffer and street tree landscaping proposed in connection
with the development of RUG Use Group residential units.
[1] Shade trees shall be provided along street frontage occupied by an RUG Use Group
residential development in accordance with the requirements of Chapter 154, Subdivision and
Land Development, of the Code of the Township of Upper Providence.
[2] Buffer area. A permanent landscaped planting area of at least 15 feet in depth, designed for
filtering from view any uses which are adjoining and contiguous to the development, will be
provided. In addition, this buffer will be applied to street frontages where the rear of dwellings
face the street. All required buffers shall comply with the evergreen and deciduous percentages
of a Type 3 buffer pursuant to § 154-36D(5)(e) of Chapter 154, Subdivision and Land
Development, of the Code of the Township of Upper Providence.
(i) Design standards. The architectural design standards set forth in § 154-36.2 shall apply,
where relevant and practical.
(3) Density and dimensional requirements.
(a) The following maximum density shall apply in the RUG Use Group:
[1] For residential dwellings, the maximum permitted density shall be:
[a] 5.25 dwelling units per developable acre for tracts abutting a road classified as a limited-
access highway on the Upper Providence Township Ultimate Rights-of-Way Map; and
[b] 3.25 dwelling units per developable acre for all other tracts.
(b) Building coverage: maximum of 25%.
(c) Impervious coverage: maximum of 50%.
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34. (d) Setback from property lines and streets. A building setback of 100 feet shall be provided
along the right-of-way for any feeder road where residential uses occur on the opposite side of
the road and along the rear property line of residential lots. A building setback of 50 feet shall be
provided from collector, arterial, and limited-access highways and all other property lines.
(e) Building separation.
[1] Distance of 30 feet between buildings containing attached dwellings or multifamily
dwellings.
[2] Setback of 20 feet from internal private streets and alleys for fronts, sides, and rears of
buildings.
[3] Setback of 15 feet from parking spaces that are either perpendicular or parallel to buildings.
(f) Building length. The maximum length of any residential building shall be 155 feet.
D. Plan modifications. The Board of Supervisors may grant modifications from the specific
requirements herein, and those of Chapter 154, Subdivision and Land Development, provided
that the spirit and intent of this article and the statement of community development objectives
contained in § 182-2 are observed and that the overall densities specified herein are maintained.
34
