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Tough sell, Sterling Lakes seeks change in plans
(by Sali McSherry - November 25, 2009)
Tough sell, Sterling Lakes seeks change in plans
By SALI McSHERRY
Forest City Enterprises, which said it is having a difficult time selling residential lots and townhouses in Sterling Lakes in Pepper Pike, presented a new phasing plan for a portion of the development last week.
Last summer, Forest City pitched the concept of a skilled nursing and rehabilitation center on the eastern portion of Sterling Lakes, on the south side of Brainard Road, but did not gain support from the city. The new plan maintains the residential zoning of the property.
The developer is seeking to increase the number of townhouses in a portion of "the Point," which is south of relocated Brainard Road and separate from the other part of the development. But neighbors at the Point told City Council last week that they oppose the proposal.
Currently, the area is approved for 93 units, William Sanderson, of Forest City, told council. The company wants to increase the number to 132, beginning with three-story townhouses that would be narrower than was approved in the development agreement. The units would be a different type of product and cost less than the existing units, at a price between the low $200,000s and low $300,000s, he said. The company would build in phases and depending on the market and how many units actually were built, decrease the number of units to be built in the future at Sterling Lakes because, according to the development agreement with the city, a maximum of 285 units can be built.
The Point, which is the area south of Brainard Road that backs up to Village Square Shopping Center and is adjacent to Interstate 271, has six units that are sold and occupied, and eight built on speculation that are unsold, Mr. Sanderson said.
Pepper Pike Law Director Christopher Gibbon said those changes would require amending the development agreement and concept plan between the city and Sterling Lakes.
Mayor Bruce Akers asked Mr. Sanderson for a summary of his presentation and the variances he was requesting.
After council reviewed that information, Mr. Gibbon said, it could send it to the planning commission for a recommendation and then it would go back to council.
Councilwoman Gail Mayland asked Mr. Sanderson why Forest City did not wait until the economy recovered before making a decision on the type of units to build.
Mr. Sanderson said Forest City is carrying the cost of taxes, maintenance, interest and costs associated with the homeowners association, and it is a heavy load. Sit and wait would be "disastrous for us," he said. The company wants to be proactive, and by building less expensive units that a percentage of buyers could afford, it would give the project "momentum."
The Point resident Dennis Burnside, who is opposed to the higher density of units, said it would be an increase of over 30 percent. Not only are residents concerned about parking issues and increased traffic, he said, but it would also change the integrity of the community tremendously and affect property values. Some of the units purchased were upwards of $460,000, he said.
It was about buying into a concept promised by Forest City and now the game has changed, Mr. Burnside said.
The Point resident Kelly Carleton, who owns a loft-townhouse unit, which was priced in the low $300,000s, said the company has done a poor job in care-taking and landscaping of the grounds and that there are piles of dirt. The area at the model unit is not presentable, she said.
Councilman-elect Scott Newell asked if there were any other options for Forest City.
Mr. Sanderson said the company possibly could consider auctioning existing units but that was not part of the current plan.
Mr. Sanderson asked to be on the agenda for the next planning commission meeting so Forest City could move forward with plans pending council's decision on the changes. According to a letter to the city, Forest City has a contract with national builder Pulte Homes, contingent upon the amending of the development agreement with the city.
Mr. Akers said it would be meaningless for Mr. Sanderson to present his case to the commission because the proposal could change after council initially reviews it and Forest City would not be any further along in the process, he said.
Historically, Pepper Pike has a reputation for not giving variances easily. Changing the development agreement would take thorough examination, Mr. Akers said.
Councilwoman Paulette Morganstern said that it's not up to the city to fix Forest City's mistakes.
Councilman Allan Krulak, who is employed by Forest City, recused himself from the meeting during the company's presentation.
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