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Monday, November 17, 2008

University Healthcare at Daybreak

Kennecott Land released a statement today about a new medical care facility that will be built right here in Daybreak. While this facility is not as massive as the hospitals located near the University of Utah or in Murray, the statement indicates that the facility will only be the first phase of a medical “campus” to be built in the coming years as Daybreak is built to completion.

This first phase will feature a 150,000 square ft. building that will be situated on about 10 to 15 acres. To get a perspective of the size of this first facility, the Rio Tinto Corporate Center that presently stands next to Oquirrh Lake is 175,000 square ft. So it will be a little smaller, but not much. Within this space the University plans to incorporate primary and specialty care along with radiology. They will also have a pharmacy and vision care center there as well. Not a bad start to what will be a regional medical center.

Future plans include an expansion of the campus that will take up to 50 acres to be situated near TRAX and the Mountain View Corridor. This future medical campus will include a full-service hospital, surgery and imaging center and an AIRMED base. From my perspective this facility and future campus will be a major boost to Kennecott Land’s Daybreak plans. Having quality medical care nearby is an attractive proposition to the massive demographic wave of baby boomers. These are people who will need medical care close at hand and will move to a neighborhood like Daybreak to be near it. Hundreds of workers will be employed and will be spending their lunch breaks at nearby cafes and might decide that it would be nice to be able to walk to work. While many of the workers will be support staff, other employees will include doctors, nurses, technicians and managers. Professionals that will seek a nice neighborhood nearby to live in.

All of these benefits along with the impact it will have on the local economy and tax base has convinced me that this move is a true stroke of genius by Kennecott Land. However, as I have mentioned in earlier posts, this medical facility will need to be integrated into the community seamlessly. This can be accomplished with good planning and design of which Kennecott Land has certainly demonstrated so far with Daybreak. Hopefully this trend will continue. However, I can’t help but notice a peculiar yet increasingly common sequence of events in this case. First Kennecott donates a mass of money to support the new Utah Museum of Natural History at the University of Utah and now the University plans its new regional care facility to be in Daybreak. Of course we have seen this with many other capital projects in which Rio Tinto has an interest. You scratch my back and I will scratch yours.

Monday, November 3, 2008

East / West Mobility - The 114th South Corridor

If you live in in the Southwestern portion of Salt Lake County (South Jordan, Herriman, Riverton) and commute, then you probably already know how difficult it can be to drive eastward toward I-15 in the mornings and back again after work. This East - West mobility issue has been a problem for decades. While different roads have been widened to help alleviate traffic, it has always been too little to late.

For Daybreak residents, this new corridor will provide a straight line connecting the community to the largest transportation artery in Utah. This aspect of the plan definitely gets a thumbs up from me. However, to accomplish this, we will be displacing long-time residents of South Jordan. That is the price of progress, but I consider it a costly one. While many may argue that building another road is not the answer, I would have to disagree. This simply provides another option and relieves the congestion on 106th and 123rd. This road will accomodate the current population with TRAX and the Mountain View Corridor addressing future population growth.

Construction could begin as early as late November 2008 with a completion date of fall 2010. Construction will widen the road from four lanes to five, add bike lanes and sidewalks as well as a bridge over Union Pacific and Utah Transit Authority tracks near the Jordan River. The road will connect to I-15 using the usual interchange seen on 106th and 123rd.

Early Light Academy Enrollment to Begin


The Early Light Academy, a new charter school in Daybreak opening in fall 2009, will begin the enrollment process in combination with a parent information night on Thursday (Nov.6) at 7:00 pm. This free session, open to the pubic, will be held at the Daybreak Community Center. In addition to learning about the enrollment and lottery process, parents will have the opportunity to meet the Early Light Academy’s governing board and their chosen team of experts
including Academica West, Atlas Architects, and K12 Inc.

Granted approval by the Utah State Board of Education, the public school will accept kindergarten through eighth grade during its first year, adding the ninth grade in Fall 2010. At full capacity, total enrollment will be at 750 students. Classroom size will not exceed 25 students.

Sunday, November 2, 2008

Trees for Daybreak


The street that I called home when I was a child was lined with trees. Any memory that I have while playing in my neighborhood includes these long-lived giants. They were planted long before I was born and will probably outlive me even if I live to be 100. The shade they gave during the hot summer months, the brilliant colors and piles of leaves in the fall, the climate and peace of mind that they provided was more valuable than any other amenity. Sara Ebenreck said that trees outstrip most people in the extent and depth of their work for the public good.

Considering these memories, I am glad that the landscape plan for Daybreak calls for the planting of 100,000 trees among the 4200 acres that will eventually make up the whole of the community. It is one of the major reasons that I moved here. Most of the trees in Daybreak are just getting started, but given time will grow to be the same green sentinels that I enjoyed in my old neighborhood.

This transformation will dramatically affect every aspect of life in Daybreak. For example, one of the main underlying philosophies of Daybreak is conservation and smart growth. We are building homes that are energy efficient, planting water-wise plants and reducing runoff among other things. All of these efforts will be reinforced by the planting of trees.

  • "The net cooling effect of a young, healthy tree is equivalent to ten room-size air conditioners operating 20 hours a day."—U.S. Department of Agriculture
  • "Landscaping can reduce air conditioning costs by up to 50 percent, by shading the windows and walls of a home." — American Public Power Association
  • "The planting of trees means improved water quality, resulting in less runoff and erosion. This allows more recharging of the ground water supply." —USDA Forest Service

Trees help the environment in more direct ways as well. Especially in Utah, the temperature underneath a tree can be much cooler. By using trees in our neighborhoods, we moderate the heat-island effect caused by the heat radiated by pavement, buildings, and other hardscapes. The quality of the air we breathe is improved by trees as the leaves filter dust and other particulates. Trees also absorb other pollutants such as carbon monoxide, ozone, sulfur dioxide and recycle it into oxygen.

One of the most interesting affects trees have is on your pocketbook. Besides saving money by lowering energy costs, trees can increase the value of your property. A house with mature trees can be worth 5 to 20 percent more than homes of similar size and quality.

But when will these benefits be realized? While the full benefits will not be realized for at least a generation, proportioned benefits will be realized along the way. Depending on the growth rate of the variety of trees planted in Daybreak, some will take much longer. I personally look forward to a fall day 20 years from now when the trees are turning colors and the children are crunching the leaves under their feet. If you have any other reservations about planting trees in Daybreak, then just look at the two pictures below. The same street photographed at different times (no digital manipulation) one with trees and one without. Which street would you rather live on?


Wednesday, October 29, 2008

Daybreak Housing Market


The Salt Lake Tribune reported today that homes in the Salt Lake Valley have returned to 2006 levels. According to the median home prices in our zip code (84095), they are correct. If you look at a graph of median home values it is easy to see that we have peaked and that values have decreased since the second quarter of this year. With home values now on the decline, Daybreak, like all other areas, is experiencing a record number of foreclosures. These foreclosures are for every type of property from condos/town homes to 5,000 square ft. single family homes. So now we ride the downhill slippery slope. But how fast and for how long will the market decline? If you can answer that question, then you will probably become a millionaire soon. The market is always unpredictable. However, looking at common sense factors can help establish a good prediction.

One of the largest factors that needs to be considered is Daybreak's success. Daybreak has been steadily increasing its already large share of the new home market. Last year Kennecott Land boasted that for every 10 houses sold in the salt lake valley, one of them was located in Daybreak. This has now increased to one out of every seven new homes. Why? In a market where buyers can be picky, they are choosing a differentiated product. You cannot find a community like Daybreak anywhere else. Another factor to think about is the 7,500 tax credit for new home purchases. The deadline for this credit ends next summer. Buyers will want to take advantage of this for all of the reasons I stated in my previous post on the subject and will not want to miss it.

A third reason is the Village Center. I know, it is definitely late in becoming a reality, but now I can see the skeleton of a retail building being constructed every time I pass Oquirrh Lake. Once this part of Daybreak is finished I expect demand will increase even more. For those of you not familiar with the predominant religion/culture here in Utah, you should not factor out the new temple being built in Eastlake. This like everything else in Daybreak is arriving later than expected, but when complete it will definitely be a major attraction for LDS buyers.

While there are many expensive homes in Daybreak, you can find plenty of affordable options. Most buyers have found themselves priced out of the market, but with options in the 180 to 220 range, some of those buyers will consider Daybreak their best option. Another attraction is that unlike many developments, these townhomes and condos are interspersed with more expensive homes creating a community of variety instead of a mass of town home/condo clones.

Utah as a whole has always been behind the national trend. This would suggest that we have further to go before we see prices increase in a steady fashion. However, Utah's economy is better than most and has not had to wait while congress takes action. Instead, measures were already in the works to boost the housing market long before Utah arrived in a foreclosure "danger zone."

Given these conditions I am betting that Utah and Daybreak especially will have a slower decline that will not last as long as other areas of the country. Especially those homes that are in the low to mid 200s. A local realtor who calls himself Utah Dave brings up an interesting point for those buyers who are looking to upgrade their home. He reasons that while the market for starter homes is still fairly stable, the market for larger, more expensive homes has gone down quite a bit. The old adage "buy low sell high" could apply here. Sell your starter home at a decent price and buy your upgrade at a considerable discount. Not a bad idea.

For those of you who follow this blog regularly you will have noticed that I took a rather long break from writing any posts. I did this for two main reasons: my work has recently taken up much more of my time. I have also been working on integrating a new feature into this blog that will be very informative once complete. Stay tuned...

Saturday, August 16, 2008

What is in a Name?

Most streets in Utah follow the grid system and are therefore generically named with numbers. It is only when you have entered the residential neighborhoods that you start to see names for the streets. Is it easy to name a street? Not if you live in a valley as big as ours. Each time a development is planned, its founders must struggle to find names that have not already been used somewhere else in the valley. The names must be submitted and go through several different entities to assess if the name is unique and practical. Most of the names submitted are rejected.

Some developers will get creative with their street names. This can be a good or a bad thing. Some will create theme neighborhoods. Names like oak circle, pine street, maple lane, and a dozen other trees will find their way onto the street signs. In the neighborhood just South of the University of Utah you will find that many of the streets are named after ivy league schools. You will find Cornell, Harvard, Princeton, and Yale for example. They can also get corny with the names as well. Apparently there is a neighborhood in California that named its streets after Star Wars characters. Vader Avenue anyone?

Some names are clever, Hemming Way, Ubinaranda Circle, and Willbea Road. Others just make you shake your head. How would you like to live on Finally My Way? So when I started to see words that I had never heard of before on the street signs in Daybreak, I thought that I would look up their meaning.

In Daybreak, a few of the street names are actually French. Mille Lacs means “thousand lakes” and Lac Vieux means “old lake.” Of course many of the names in Daybreak seem to be the average type of names that you would expect of a new development: Cold Canyon, Warm Canyon, Cool Canyon. However, there is a theme that most Daybreak streets have in common. Most of them are named after lakes or towns in the Midwest and Southern portions of the U.S. Degray? Lake Degray, Arkansas. Greer’s Ferry? Greers Ferry, Arkansas. Dardanelle? Dardanell, Arkansas. Coralville? Coralville, Iowa. In fact, most of the names seem to be concentrated in Arkansas, Illinois, Iowa, Missouri, California, Oklahoma, Michigan, Maine, Minnesota, and Oregon. Why? Who knows, maybe some of the planners of Daybreak left a small imprint of themselves by naming the streets after places in which they grew up or have fond memories. I can only guess. If someone knows, then please comment and enlighten us all. In the meantime I encourage you to look up the street you live on. You might find something hidden in plain sight.

Saturday, August 9, 2008

Daybreak Down Payment Option: First-Time Home Buyer Tax Credit

While Utah has so far enjoyed a relatively small decline in the residential real estate market, many other states have not fared so well. With the strict standards in place for mortgage qualification and the lack of plentiful buyers home values have dropped quite rapidly. In light of this crises, the US government has made efforts to intervene and boost the economy. One of the facets of their efforts is the First-Time Home Buyer Tax Credit. For those who would like to purchase a home in Daybreak any time soon: listen up.

The First-Time Home Buyer Tax Credit is not an actual tax credit. A tax credit is when the government either reduces your tax liability or increases your tax return dollar for dollar. The name sounds like it is free money. It is not free money. However, this does not mean that you should not consider using this program. The First-Time Home Buyer Tax Credit is actually an interest-free loan. You pay the loan back via your taxes for the next fifteen years. At this point you may be asking - is it worth it? My answer is definitely yes.

If you understand the time value of money you will know that a dollar in 1993 was worth more than a dollar now in 2008. Why? Because it had more buying power. It could buy you more bread, electricity, even gas. (Actually then it could buy you about one gallon) That was 15 years ago. In short, while you will have to pay every cent back to the government in the next 15 years you will gain a lot of value with this deal.

The maximum amount that you can qualify for is 10% of the value of the home you intend to buy with a cap of $7500. So if you buy a home in Daybreak you will qualify for the full amount. You can even use the tax credit as a down payment for your new home if you work it right. You get the benefit of the tax credit after you file right? Yes, however, right now FHA financing requires a minimum down payment of 3.5%. On a $250k purchase that is $8,750. The FHA allows a buyer to borrow money from family for down payment. This means that a first time buyer could borrow the down payment from relatives, make a home purchase, then use the tax credit to pay back all or a portion of the borrowed funds.

If your still not sure, consider this: assuming an interest rate of 7%, the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. If you are still a little worried about the housing market in Utah consider this: if it goes down further and you are forced to sell, then you will not have to pay back the government for the tax credit "loan." So if you are on the edge, it would probably be a good idea to jump off before the July 1st, 2009 deadline.

Two Creeks in Herriman, Utah: A Disaster in Density

In an earlier post I mentioned housing density and how it impacts the surrounding community. The main point of the article was to show that density in and of itself is not a bad thing. However, if a dense development is not properly planned and located, it will almost certainly have a detrimental effect on the community.

When writing that article, I was not aware of the aspirations of a developer to build a high-density rental development in Herriman. Considering the proximity to Daybreak, this development will almost certainly affect those residents of Founders Park Village. Daybreak as a whole will be affected by this new development as the new high school for the area will be located adjacent to the development.

The new development will be called Two Creeks. Miller Timbergate Associates LLC appeared before the Herriman City government to gain approval for the first two phases of the project: Timbergate and Farmgate. These two phases will be dense. At around 20 units per acre, this will truly be the densest development around. Even Daybreak following the concept of new urbanism cannot claim densities as high as this development. Even if densities get higher in Daybreak in the future, they will be integrated into the community with a transect style of planning. Two Creeks is located near homes that are not even close to the planned density of nearby developments. Imagine your home next to multiple 4 story, 32 unit complexes. The Two Creeks plan suggests that the developer wants to develop his land his way without regard to the surrounding community in a piecemeal fashion that really doesn't fit.

The estimated population of the two approved projects is 1,696 people. With this many people, traffic is a real concern. However, this development will be located next to the proposed path of the Mountain View Corridor. By doing this, much of the traffic from the development will likely be dissipated. Not a bad idea right? Most local governments are in cooperation through Envision Utah to put higher densities next to the transit corridors. One problem with this plan is that it assumes that the Mountain View Corridor will be built and that when it is built that it will not be a toll road. If it is a toll road, I cannot imagine many of the residents of Two Creeks utilizing the road. TRAX is nearby, but these residents will be made to cross not only 118th South, but also the Mountain View Corridor to access it. Unless significant infrastructure is put in place to make this crossing safe, you will see additional problems. It will just be easier for them to hop in a car and drive. The location of this development, on the fringe of Salt Lake County, should also be a consideration as the price of gas would prevent the necessary long commute for many of these residents. Most of which are calculated to not have substantial financial means.

The traffic problem will only be exacerbated by the fact that the new area high school will be located literally within feet of the development. I wonder if all of the sports facilities that come along with the high school will be perceived as amenities for Two Creeks. Also, with the concentration of a lower socio-economic population you will have dual working parents and transient families. With many of the parents gone, I can imagine quite a few students hanging out in Two Creeks without supervision after school.

The single worst part of this development is that it will concentrate thousands of citizens of a lower socio-economic class. As stated in an earlier post about density this can cause a multitude of problems. Crime and social disruption will increase in this area with such a large concentration. This cluster will enable all of the myths that are associated with a higher-density development to have an opportunity to come true.

I have it from a good source that these units are meant for government Section 8 housing. The Section 8 program allows those who qualify to pay rents that are adjusted to their income. 30% of their income goes to rent. For example, if a low-income family made 1500 dollars per month they would spend about 450 dollars for rent each month. The government covers the rest. This program can truly help those in need, but the idea is to spread those who are on the program over a wide geographic area not concentrate them. We already have Section 8 families in our community, but they are dispersed.

So why is this happening and why now? With the housing market being in doubt there are many people waiting out the market in hopes to buy when the market starts to go up again. Other people cannot afford a mortgage as the new lending criteria prevents them from qualifying. So what do these people do? They rent. With Utah’s strong economy, there are more people moving to the valley in search of jobs and many will opt to rent for a variety of reasons. All of this combined has pushed monthly rents up 10% in the last year alone. The rental market is starting to look really attractive to a lot of investors. I would not be surprised to see a lot of developments pop up in various communities that are high density and haven’t been integrated properly. That is why people need to be more involved at the local government level about what happens in their community. I believe the Sunstone residents (just to the west of Daybreak) would agree with me as they seem to have attended the relevant meetings and have even appealed the approval of Two Creeks. Hopefully this mess will be stopped before it is too late.

Saturday, August 2, 2008

Utah Obesity and Daybreak

The University of Utah recently released a study that compares rates of obesity with where people live. This study concluded that people who live in older neighborhoods are significantly thinner than residents of the newer suburbs. Most of these older neighborhoods were built before 1950, but considering the amount of building during the depression and the war, you will find that many of these neighborhoods had homes built in the first and second decade of last century. It was during this time that mixed-use communities were still legal before the separate zoning of commercial and residential. A prime example is the Yale / Harvard area of Salt Lake City. With village centers at 13th South and 17th East, 15th South and 15th East, and another nearby at 9th South and 9th East, most people can walk to the necessities of life. Schools are right in the middle of the neighborhood as well.

This study adds to the growing amount of literature linking obesity to non-walkable suburbs. People find it easy to say Americans are lazy and gluttonous, but the fact is that many U.S. communities simply are not designed for walking. Utah suburbs discourage walking because they are not very safe for pedestrians. Simple attributes such as sidewalks or traffic calming devices are not present. Another discouraging factor is when walking in a cul-de-sac you literally have to walk through a maze of secondary streets to reach most destinations. The only real direct route is to cut through yards. In the traditionally designed suburb, most destinations are not even within an easy walking distance of the homes. All of these factors play a role in discouraging pedestrians. This new study indicates that this active lifestyle is simply easier to achieve in communities that are walkable.

Virtually everything American society has done for the past 100 years has made it easier for us to be lazy. Early concerns about this were shown by the government with fitness and health campaigns being introduced in the early fifties. Currently, it is estimated that 17.1% of US kids Ages 2-19 Are Overweight. This sedentary lifestyle that correlates with obesity does not necessarily stop in childhood. This lifestyle is carried on to adulthood where almost two-thirds of all adults are overweight or obese. It is passed down through the generations, but this is not done solely by genetics. If you are overweight your child has a 40% greater chance of being overweight or obese. With so many opportunities to exercise in Daybreak, it is time that parents be an example to their children and lead a healthy lifestyle.

While Daybreak is cited in this study as being a model of healthy residential development, the study is only referring to the Daybreak that is planned. In an earlier post I talked about walkability in Daybreak. Daybreak is currently not a walkable community. This status will only change once the village center is up and running. With the giant district behemoth shopping center outside the gates, it will be difficult to entice residents out of their cars to visit local shops.


Tuesday, July 29, 2008

The Salt Lake Parade of Homes

The Salt Lake Parade of Homes officially opens this weekend and four of the thirty homes are in Daybreak. I have always enjoyed attending the parade of homes because you can find so many great ideas for when you remodel or build a home. Of course, if you talk to a friend of mine that attended the parade last year, then you will hear a little depression in the tone he uses to explain how great the homes were. He gets depressed because he compares these fully-upgraded homes to his humble abode. My suggestion: do not go unless you are truly looking to buy or are looking for ideas.

Daybreak has participated in the parade in the past, but the “star” home has never been located in Daybreak. The “star” home is the 10,000 square ft mansion that has luxury amenities and a great room so big that you could play basketball in it and fit 20 to 30 spectators. However, the Daybreak homes do provide a breath of fresh air when compared to the rest of the homes in the parade. First and foremost they do not feature a beige stucco exterior. In contrast they feature classic architecture with reasonable space defined for human scale. Massive two-story entryways that dominate the facade are not found in Daybreak.

Daybreak is a community that will let you do very little to the outside of your home. HOA restrictions are fairly strict. However, the inside of your Daybreak home is where personal style can really be displayed. Whether you want leopard print wallpaper or distinctly traditional decoration in your front room is completely within your discretion. So pop into a few of the homes featured in the Parade of Homes. While most of the exteriors look the same I have found that the interiors are finely decorated by interior designers who do not utilize a mass production style equal to the exterior. These interiors are well worth the time and expense.