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FW: Call to action for Trendwe_
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Barbara Nightingale
From: Leslie Locke
Sent: Thursday, July 20, 20068:01 AM
To: AI Scalf; Barbara Nightingale
Subject: FW: Your assistance, please
Importance: High
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From: Jim Boyer[SMTP:BAYSIDERS@cABLESPEED,cOM]
Sent: Wednesday, July 19, 2006 5:41:55 PM
To: Pat Rodgers; Phil Johnson; David Sullivan
Subject: Your assistance, please
Importance: High
Auto forwarded by a Rule
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Please review the attached document and help us in supporting a positive venture for the future of
our community.
Thank You,
Jim Boyer
Port Ludlow
LOG ITEM
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7/20/2006
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AMENDMENT TO PORT LUDLOW DEVELOPMENT AGREEMENT
JUNE 2006
Port Ludlow Associates, LLC (PLA) has submitted a proposal to Jefferson County to
amend the existing Port Ludlow Development Agreement dated May 1,2000. A copy of
the proposed amendment is available from either PLA or Jefferson County.
The specific and singular purpose of the proposed amendment is to accommodate the
TrendwestlWorldMark (Trendwest) timeshare project on Tract E, or the "old log dump"
site. The proposed development plans for the Trendwest project are the same as originally
proposed in 2005. A copy of the development proposal including architectural
renderings, development restrictions, site plans, etc. is also available from PLA.
There are many benefits to the Port Ludlow community, to Jefferson County and to other
interest groups if the Trendwest project is developed.
Some ofthe benefits are summarized accordingly:
A ONE TIME direct benefit to Jefferson County, and indirectly to Port Ludlow residents,
of taxes generated from construction and sales of the Trendwest project is estimated to be
$510,000.
NEW Annual tax benefits to Jefferson County, and to Port Ludlow residents, from
property and sales taxes are estimated to be $413,000.
NEW Annual revenues would flow into Port Ludlow, Port Hadlock and Port Townsend
to support area businesses, employment levels, and activities as well as provide
significant new sales taxes estimated to be $8,000,000.
Trendwest would create 40 NEW jobs with an estimated $1,000,000 in NEW local
payroll. Trendwest employees would receive health and retirement benefits.
A NEW golf facility would be constructed with the proceeds received by PLA from the
sale of Tract E.
Approximately 35 acres of land in the MPR would not be developed. The development
cap of 2,250 residential units remains in place.
The time frame to develop the balance of the residential units on PLA owned land would
be reduced by approximately 31/2 years.
Trendwest owner profiles are similar to Port Ludlow resident profiles.
Estimates and assumptions as to how these NEW benefits would impact Port Ludlow and
Jefferson County are itemized below:
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AMENDMENT TO PORT LUDLOW DEVELOPMENT AGREEMENT
JUNE 2006
Port Ludlow Associates, LLC (PLA) has submitted a proposal to Jefferson County to
amend the existing Port Ludlow Development Agreement dated May 1,2000. A copy of
the proposed amendment is available from either PLA or Jefferson County.
The specific and singular purpose of the proposed amendment is to accommodate the
Trendwest/WorldMark (Trendwest) timeshare project on Tract E, or the "old log dump"
site. The proposed development plans for the Trendwest project are the same as originally
proposed in 2005. A copy of the development proposal including architectural
renderings, development restrictions, site plans, etc. is also available from PLA.
There are many benefits to the Port Ludlow community, to Jefferson County and to other
interest groups if the Trendwest project is developed.
Some of the benefits are summarized accordingly:
A ONE TIME direct benefit to Jefferson County, and indirectly to Port Ludlow residents,
of taxes generated from construction and sales of the Trendwest project is estimated to be
$510,000.
NEW Annual tax benefits to Jefferson County, and to Port Ludlow residents, from
property and sales taxes are estimated to be $413,000.
NEW Annual revenues would flow into Port Ludlow, Port Hadlock and Port Townsend
to support area businesses, employment levels, and activities as well as provide
significant new sales taxes estimated to be $8,000,000.
Trendwest would create 40 NEW jobs with an estimated $1,000,000 in NEW local
payroll. Trendwest employees would receive health and retirement benefits.
A NEW golf facility would be constructed with the proceeds received by PLA from the
sale of Tract E.
Approximately 35 acres ofland in the MPR would not be developed. The development
cap of 2,250 residential units remains in place.
The time frame to develop the balance of the residential units on PLA owned land would
be reduced by approximately 31/2 years.
Trendwest owner profiles are similar to Port Ludlow resident profiles.
Estimates and assumptions as to how these NEW benefits would impact Port Ludlow and
Jefferson County are itemized below:
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NEW NEAR TERM REVENUES GENERA TED FROM CONSTRUCTION AND
SALES
The agreed upon purchase price of the Trendwest project property is $3,600,000. The
excise tax anticipated from the property sale is 1.8% or $64,000.
Estimated costs to construct the 120-unit project to include a recreation facility,
landscaping, trails and other related amenities are $16,000,000. Jefferson County sales
taxes are levied on construction at a rate of 8.4%. This would generate new sales tax
revenues of $1,344,000.
Construction costs of the new golf facility are estimated to be $3,600,000. This would
generate new sales taxes of $302,400.
Jefferson County receives 30% of excise and sales taxes generated in the county. The
total excise and sales taxes generated from this transaction are estimated to be
$1,710,400.
Jefferson County's projected new net taxes from construction and property sales of this
project are estimated to be in excess of $51 0,000.
NEW ANNUAL COUNTY PROPERTY AND SALES TAX REVENUES
The current county property tax rate is $10.82 per $1,000 evaluation. Based on a
valuation of$16,000,000 the Trendwest project would generate new annual county
property taxes of $173,120. Based on the increased valuation of a new $3,600,000 golf
facility, property taxes on this facility would increase annually by $38,952.
The total new annual county property taxes are estimated to be $212,072.
Property taxes fund a variety of community services such as schools, fire protection and
emergency services, hospitals, libraries, county government, roads, parks and others.
Compared to permanent residents and considering the short-term nature of timeshare use,
it is unlikely there would be any significant additional usage impacts on most of these
servIces.
New annual sales tax revenues generated by expenditures from Trendwest
owner/occupants are estimated to be $672,000. Please refer to the next paragraph below
for details. ("New Trendwest Owner Revenues")
Jefferson County's portion (30 %) of these new sales taxes would be $201,600.
Jefferson County's total new annual property and sales taxes generated by this project are
estimated to be $413,000.
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NEW TRENDWEST OWNER REVENUES FLOWING INTO PORT LUDLOW AND
AREA- WIDE BUSINESSES
A recent Price Waterhouse study on timeshare projects, similar to the Trendwest project
proposed for Port Ludlow, indicated a typical unit represents $214 a day, per unit, in new
revenues for the surrounding area. A 120-unit project, with an annual occupancy rate of
85%, would generate approximately $8,000,000 annually in local revenues.
These new revenues would not be possible without the Trendwest project.
These new revenues would be generated from expenditures at local restaurants, grocery
stores, shops, entertainment venues, tourism and sight seeing activities, and recreational
opportunities to include boating and golfing etc.
These new revenues should substantially and beneficially impact all service companies in
Port Ludlow, Port Hadlock and Port Townsend. The Trendwest project would create new
jobs, provide a stronger economic base for existing businesses and provide the economic
incentives for new businesses to consider opening operations in Port Ludlow and
Jefferson County.
Tourism dollars tend to circulate throughout a community several times before leaving
the area. Tourism experts estimate each tourism dollar turns over 5-7 times in the
community in which it was spent before eventually leaving.
In real dollars the local impact of the new revenue generated by Trendwest could be as
much as $40,000,000.
NEW LOCAL JOBS
Combined construction costs of the Trendwest project and the new golf facility are
estimated to be $19,600,000. Labor costs are typically 50%-60% oftotal construction
costs; for these projects approximately $10,000,000. It is likely some of the contractors or
subcontractors needed to construct these projects would be hired from the local area.
Trendwest estimates the completed project would require 40 full-time equivalent
employees to include managers, supervisors and service employees. The estimated annual
payroll cost is $1,000,000. Trendwest also provides employee benefits including medical
and dental insurance and a 401k plan.
NEW GOLF FACITITY
Randy Verrue, representing PLA, has committed to use the entire proceeds from the
Trendwest purchase toward construction of a new golf clubhouse. PLA is making the
commitment to expand and modernize the golf facilities to enhance member/owner play
and to bolster daily golf rounds. It is estimated Trendwest owners/occupants would
generate 50-60 new daily rounds of golf.
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This level of increased play is required for maintaining the golf course and for providing
necessary improvements to include additional drainage and irrigation system upgrades.
Without providing a means to supplement the current level of play the golf course will
continue to lose money. New outside revenues would mitigate the need to increase fees to
existing members/users.
LESS ENVIORNMENT AL IMP ACTS THAN OTHER DEVELOPMENT MODELS
A residential development cap imposed on single and multi-family dwellings limits
build-out to 2,250 units in the Port Ludlow Master Plan Resort (MPR). There are
approximately 400 dwelling units remaining to be developed prior to reaching this limit.
The 120 Trendwest units would be deducted from this number. While build-out to the
limits of the cap could be permitted throughout a wide area of Port Ludlow's 2000 acres,
clustering development to minimize the footprint of the community's build-out is the
most assured way to maximize the balance of open and undisturbed land.
Tract E, if developed as originally zoned, would accommodate approximately 45-50
substantially larger homes than the 120 smaller units planned within the Trendwest
project. The balance ofthe 70-75 allowable units would then have to be constructed on
other sites throughout the MPR.
If the 70-75 allowable or displaced residential units from Tract E were to be developed in
a similar way as PLA's most recent complexes, Olympic Terrace 1 & 2, the additional
land required to develop would be approximately 35 acres. The infrastructure of roads,
homes, driveways, etc would be approximately 8 acres. Approval of the proposed
Trendwest project effectively protects these approximately 35 acres from becoming
developed land.
EXPEDITED COMPLETION OF THE PORT LUDLOW DEVELOPMENT
For the past several years, the market absorption rate for new homes developed by PLA
has been approximately 30-35 dwellings annually. Using this absorption rate, the
Trendwest project would reduce Port Ludlow's build-out schedule by approximately 3 Y2
years.
TRENDWEST OWNER PROFILE
Trendwest owner demographics compare favorably with those of Port Ludlow residents.
The majority of Trendwest owners would come from the Pacific Northwest. 87% of
Trendwest owners have a net worth in the top 1I3rd ofthe U.S and 89% own their homes.
The average age is 51. Many Port Ludlow residents are current owners in Trendwest.
The Trendwest project would be owned free and clear of all monetary encumbrances.
Owners would be obligated to pre-pay property maintenance costs assuring an enduring
and first class resort facility for the future.
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Trendwest has committed to developing the Port Ludlow project in accordance with the
"Port Ludlow Master Planned Resort Declaration of Covenants, Conditions and
Restrictions", recorded August 4,2000, following several years of negotiations with the
Port Ludlow Village Council as "Grantee" to the agreement.
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