New Pool in Founders Village - 2010

Early in the development of Daybreak, Kennecott Land had plans to create a beach club that would be situated just outside Founders Village along the shore of Oquirrh Lake. This deal fell through for a number of reasons and residents of Founders Village felt like a promise had been broken. When Kennecott Land announced that a new pool was to be constructed in Eastlake Village, many residents were pleased with the new amenity, but still wanted something similar to be located in Founders Village.

After months of relaying this concern to the HOA and KL, a meeting between a group of homeowners and Kennecott Land has resulted in a plan to build a pool similar to the Eastlake Village pool in Founders Village. The pool will be located next to the Daybreak Community Center (DCC) and has several financial advantages.

The first advantage is that the pool will not need to be designed again as the plans are already in existence. Using these plans saves homeowners an estimated $150,000 dollars. By locating it next to the DCC, there is a possibility of restructuring the showering facilities there to be of use by the patrons of the pool. Local Health Department approval will be needed in this case, but if executed correctly this proposal could save up to $300,000. A final cost advantage is that a variety of firms will be bidding on the project. While this may not seem like a change from other projects, many residents have noted local companies that could construct the pool at a much lower cost than what the Eastlake Pool commanded.

The economic conditions in the construction industry may also be to our advantage as they have become slightly more competitive in recent months. While the swimming pool was discussed at length, the most important product of this meeting was a proposal to transition ownership of the DCC to Daybreak homeowners. Currently Daybreak homeowners are in a 20 year lease agreement for use the DCC with Kennecott Land. The current lease rate is about $270,000 per year. However, under the current agreement this lease will increase to $335,000 per year in 2010. This essentially adjustable rate lease would leave Daybreak Homeowners without ownership of the DCC in the end. The proposed plan is that the homeowners finance the DCC through essentially a mortgage. Attendees of the meeting went over the numbers with the Chief Financial Officer of Kennecott Land and this deal could save homeowners an estimated 6.7 million over 20 years and we will have ownership of the DCC with a pool in Founder’s Village.

Here is a timeline for upcoming events related to this proposal:

• Dec 16th Daybreak BOD meeting
• Jan – HOA will process reserve fund analysis
• Feb – Pool Committee meeting with KL to go over layout and specifics
• Feb – Notices sent to residents of BOD meeting to decide on the proposal
• Mar – BOD Meeting - Residents voice concerns – measure voted on by BOD May (2010) – Founders Village Pool opens on Memorial Day weekend

This proposal could benefit all residents of Daybreak, but especially those in Founders Village. The deal will probably be to the benefit of Kennecott Land as they will be able to free up capital. Specific financial information (terms of the loan, comparative analysis, etc) will hopefully be forthcoming so that homeowners can make an informed financial decision for the future of Daybreak.

First-time Home Owners in Daybreak

I have talked to a lot of potential first-time home owners in Daybreak. You see them all the time. They are walking through the parks, at the visiting center, walking out of the model homes, and driving slowly while their heads swivel looking at the houses. These prospective buyers have been passed up by the whirlwind of appreciation that has lifted the Utah housing market in the last 5 years. If these couples had been old enough or bought at the right time, then they would have nearly 100,000 in equity to put down on their new house in Daybreak. As it is they can barely make a 3% down payment. For the most part, these seem to be honest hardworking people who just missed the boat. Many of them can no longer afford some of the town homes in Daybreak let alone an actual house. Because of this we will see a dramatic shift in the demographics of Daybreak. The main difference will be between Eastlake and Founder's Village.

Founder's village contains those original residents of Daybreak. These families bought their homes when the starter homes were going for the mid 100s. At the time you could buy a house with an income of just over 40,000 a year. Yes, two teachers together could easily afford to live in Daybreak. The down payment required was half what it is now. These "starter" homes are now selling between 265 and 330. Well out of the price range of the aforementioned teachers. These young families moved in at the right time. The 1100 kids that go to Daybreak Elementary are a testament to the demographics of Founder's Village. Eastlake on the other hand might be altogether different. Are young families still moving into Eastlake? Yes they are, but not near as many. Are these possibly teachers or blue collar workers? Not unless they were able to get in on the equity from the housing boom. No, these will be families that have already owned homes for a few years or have high incomes relative to the average income in Utah. Essentially these families are more likely to be established and have older kids. This will bring a whole new demographic to Eastlake. Instead of toddlers running around in the splash pool you might find teenagers running around the new swimming pool or lake.