Builders Out Look 2014 Issue 4

Builders utlookwww.elpasobuilders.com 2014: issue 4

Freddie Mac: Over half of metros continue to improve

Brena Swanson @ HousingWire.comThe housing market is recovering, and

although it is at a slower pace than lastmonth, more than half of the top 50 metroareas continue to record improvingtrends.

According to Freddie Mac’s newesthousing metric, the national FebruaryMulti-Indicator Market Index value standsat -3.11 points, down from -3.08 inJanuary, indicating a weak housingmarket overall.

However, on a year-over-year basis,the U.S. housing market has improved by0.67 points, and the 3-month trend showsan improving housing market.

This is compared to the nation’s all-time MiMi low of -4.49 in November 2010when the housing market was at itsweakest.

MiMi merges four economic indicators -- purchase applications, payment-to-income, current on mortgage andemployment -- with data from multiplesources, including Freddie’s dailybusiness with more than 2,000 mortgagelenders across the country.

“Despite a slowdown over the wintermonths, the housing market continues toshow improvement in most states,although at a somewhat slower pace,"Freddie Mac Chief Economist FrankNothaft said." And while not all the MiMiindicators are trending in a betterdirection–in particular, home-purchaseapplications have weakened in manyareas-- gains in local employment andloan performance have really helpedmany markets across the country,especially those that were hardest hit."

GSEs lower expectations on housing marketFannie, Freddie revise sales, construction forecasts downward

The government-sponsored enterprisesare lowering their housing expectations for2014, citing shrinking inventory andtightened credit standards among otherreasons.

Freddie Mac lowered its forecast forhome sales to 5.5 million, down about100,000 sales from the prediction at thestart of 2014.

“Tight inventory may pose a significantchallenge for home buyers in manymarkets across the country, which mayresult in higher home prices and salesbeing lower than expected,” said FreddieMac chief economist Frank Nothaft.

Doug Duncan, chief economist forFannie Mae, says he now believes thatnew-home construction will hit 1.5 millionhousing units this year, which is 50,000fewer than the original forecast from thestart of 2014.

“We have downgraded our housingforecast slightly due to a lackluster salespicture,” Duncan said.

Digital Risk's CAO Tom Showalter saysthat the market is currently experiencing

friction as a result of economic factors likerising home prices, stagnant income levels,and investor participation in themarketplace, and that this friction will keepthe housing market from revving up in2014.

"You know what happens in an enginewhen you get too much friction and the carjust doesn't rev as fast? It’s one of thosefriction-based arguments rather than a'catastrophic change' based argument.What I’m saying is that there is so muchfriction here; the friction from the

regulators, the friction from the lenders,friction from the borrowers (medianincomes aren't going up, coming up withdown payments are tough, they aren't surethe house is priced correctly) every one ofthose reasonable propositions is a sourceof friction," Showalter said.

This friction in the market is shrinkingretail appetite, as investor demand slows.

"What I’m seeing is that the investor isexiting and now you have to start seeingthe influx of the retail buyer. The investorsare gradually leaving the market as pricesrise, and the retail buyer is waiting in thewings. There are some markets, like Miamiand San Francisco that are driven byoutside factors, but markets like St. Louisand Omaha and parts of California andNevada that aren't driven by structuralfactors that are unique and powerful, theyare going to suffer the friction as the retailbuyer struggles to get back into themarketplace," Showalter said.

Showalter notes that "as they get intothis excessive friction situation, where in anormal environment for every 10 people

that are thinking about doing a deal, wherethe normal turn rate is 6 in 10, the turn ratebecomes 3 or 4 in 10. This is what’shappening in the country, we are makingthe average home seller nervous, theaverage home buyer nervous."

While this stress on the market will likelyslow growth in the coming quarters ahead,Showalter notes that there will be no majorcollapse.

"I don't see things dropping off a cliff likeit did when the meltdown occurred becausethis is a different kind of problem. It will beso hard to get it to climb at a high rate -because there is just too much drag," hesaid.

There is some upside, however."One thing I do see happening as the

prices start to drop and as median incomesdon't necessarily drop is that you are goingto see the affordability index start to go up.So more people will be able to buy a home,the question is how many fish will bite onthat bait," Showalter said.

The Android version of the Build El PasoInspection app is now available in the playstore. The City Development Departmentunveiled its first iPhone compatible mobileapp for inspection requests – the Build ElPaso Inspection app.

“Between our efforts and the City [of ElPaso’s] IT team and our partners atCityGovApp, we are extremely pleased tooffer the public an easier and faster way torequest much needed inspections on theirbuilding projects,” states Mathew McElroy,director of City Development.

For the past few months, CityDevelopment along with the Department ofInformation Technology Services has beenworking with CityGovApp, Inc to develop amobile application for inspection requests.

The Build El Paso Inspection app will

allow users to view their issued permit andrequest inspections on thesepermits. Build El Paso Inspectionwill dramatically increase theturnaround process fromassigned permits to inspections.

“Right now most inspectionsare scheduled manually whichis time consuming forcontractors and staff,”describes Victor Morrison-Vega, deputy director ofBuilding & DevelopmentPermitting (formally BuildingPermits & Inspections) – adivision of City Development.“This mobile app willeliminate the middle-manand immediately take therequest for an inspectionand upload it directly into our system.”

Build El Paso Inspection is available fordownload for all iPhone users.

About a month ago, the CityDevelopment Departmentunveiled its first mobilephone app, compatible onlywith iOS, for inspectionrequests – the Build El PasoInspection app. Now Build ElPaso Inspection app isavailable for all smartphonesvia Apple and Google Playstore.

“Between our efforts and theCity [of El Paso’s] IT team andour partners at CityGovApp, weare extremely pleased to offerthe public an easier and fasterway to request much neededinspections on their buildingprojects,” states MathewMcElroy, director of City

Development.The Build El Paso Inspection app was

developed with commercial and residential

developers in mind; however, anyone cantake advantage of its convenience. Theapp will allow users to view their issuedpermit and request inspections on thesepermits. Build El Paso Inspection willdramatically increase the turnaroundprocess from assigned permits toinspections.

“These mobile apps will eliminate themiddle-man and immediately take therequest for an inspection and upload itdirectly into our system,” shares VictorMorrison-Vega, deputy director of Building& Development Permitting under City

Development.

For more information about El Paso’s CityDevelopment Department, visit elpasotexas.gov/city-development. Like them on Facebook atfacebook.com/ElPasoCityDevelopment or follow themon Twitter @EPCityDev. For more information about ElPaso’s City Development Department, visit

elpasotexas.gov/city-development

Local inspection appnow available

Scores are in: Top improving states and metros

5 most improving states month-over-month:

South Carolina (+0.14)Louisiana (+0.7)Ohio (+0.07)Tennessee (+0.05)Nevada (+0.07)

5 most improving states year-over-year remain unchanged:

Florida (+1.87)Nevada (+1.65)California (+1.08)South Carolina (+0.96)Texas (+0.93).

On the metro level, the five mostimproving metro areas month-over-month:

Charlotte, N.C. (+0.10)Columbus, Ohio (+0.09)Nashville, Tenn. (+0.07)New Orleans, La. (+0.07)Las Vegas, Nev. (+0.05) (tied)Memphis, Tenn. (+0.05)Miami, Fla. (+0.05).

From one year ago, the most improving metros remainedunchanged:

Miami (+2.33)Orlando, Fla. (+1.91)Las Vegas (+1.64)Riverside, Calif. (+1.60)Tampa, Fla. (+1.49).

For first place, the top ranking stateand metro are:

State: North Dakota at -0.48Metro: San Antonio at -1.27

So which states soared and which tanked?

2 Builders Outlook 2014 issue 4

If you have digging or excavation work to do, remember to call 811 at least 48 hours in advance.

Natural gas and other utility lines may be buried a few feet deep. By calling 811, utility crews can mark locations of underground lines at no charge. The markings are done in paint and will eventually wash away. Marking line locations can help prevent you from accidentally damaging a natural gas line or another utility line.

Always call before you dig. It can help keep you and your construction crew safe, and failing to do so can result in a $1,000 fine.*

* Texas Utilities Code 251.201 Civil Penalties

Stay safe. Call before you dig.

President’s Message |

El Paso Disposal

772-7495

32014 issue 4 Builders Outlook

Frank

Torres

President,El Paso Association of Builders

Showroom: 2131 Missouri

915 • 533 • 6045 fax • 533• 6096

Thomas R. Brown, Owner

Thank you for a great golf outing!The association held its annual spring golf tournament, something Ray and

Sam call a “pachanga”, a party and not so much real tournament. I think thisyear we had a real tournament because some of our players turned in superscores. That’s great because we were worried that the weather wouldn’tcooperate, but as all of you who went the weather was great. Horizon GolfCourse is in pretty good shape considering it only reopened about a year ago.Jeff Gates is the general manager and head pro at the course and he and hisguys have done a really good job getting the course in shape. My regular golfpartners have played Horizon for some months now and we’ve seen some prettygood improvement.

Our tournament couldn’t happen without the help of our friends and fellowmembers, who take out sponsorships and advertising on the course. This yearour lead sponsor was StrucSure Home Warranty. Scott Whisenant has reallybrought us a great relationship and I want to thank him for doing so. He not onlybrought his company to us but he’s also going to be involved down the road inat least two other events this year. Thanks StrucSure and thanks Scott. To ourentire group of tee box advertisers, thanks. Joe Bernal thank you for your holein one sponsorship. I didn’t win it and neither did anyone else. Someday we’llgive the $10,000 away so keep coming.

Our general meeting was great with the general manager of the new El PasoChihuahuas Brad Taylor as the speaker. Brad was so optimistic about El Pasoand so optimistic about the team that he really brought that excitement to thegroup. If the Chihuahuas can capture that excitement from the boss then it willbe a good season for the team. I hope that all of you who attended agree thatBrad is a welcome addition to our city. I hope we have him back at some timethis year.

Finally we have had a generous offer from our builder member Don Rassettefor a potential parade site. Things being as they are in our business we hopethat the association can hold a Parade this year, but we need to know if it willwork for all of those interested. If you were involved in the meeting on thisplease let Ray know if you are in or out, so that we can get going either way.Thank you Don and Cheryl for your generous offer.

The International Conference of

Shopping Centers has been busy in

other parts of the country over the last

few decades. El Paso meanwhile

wasn’t on the radar. That all changed

as the local association took the bull by

the horns and brought a conference to

El Paso that has been the talk ever

since. Bob Ayoub from MIMCO and

Tina Wolfe from HUNT Companies

were the two persons who headed up a

great team to bring attention to the El

Paso market. Rather than continue

with a “pobrecito” (poor me) attitude

these two told industry leaders that El

Paso is on a renaissance and that

NOW is the time to make the move

here. The event was supported heavily

by local real estate developers anxious

to showcase their properties and ideas.

Deal making was at the center of the

talks, while a few big announcements

were made at the event. An informal

meet and greet was held at the

Fountains at Farah and the reception

was well attended. Host Paul Foster,

developer of the center welcomed

guests. The following day the

conference began at the Double Tree

Hotel. The top floor conference center

provided the best view of the new

Southwest University Park from high on

top. The home of the new AAA El Paso

Chihuahuas sparkled with the newly

planted grass and was a show stopper.

In addition the work being done at San

Jacinto Plaza (Basic IDQ) and other

downtown work was clearly visible.

Inside the meetings were broken up

into several topics beginning with an

overview of public projects. Speakers

included Fort Bliss, the City of El Paso

and TXDOT representatives. TXDOT

talked about the multibillion dollar work

being done on I-10 and Loop 375 along

with other work connecting the new rail

yard at Santa Teresa.

The second group discussion was on

an overview of Regional Projects like

the Union Pacific yard; the Medical

Center of the Americas (Emma

Schwartz); and what’s new in the

Mesilla Valley region of Las Cruces to

the state line. The keynote speech was

given by the Director of Employer

Initiatives from the Texas Governor’s

office, Mr. Arron Demerson. He spoke

of the commitment from the his office to

El Paso adding that for too long the

state dismissed El Paso for other

communities along I-35. The third

group round table involved El Paso

Development Update from a panel

including W. Claiborne Gallagher, Rick

Amstater, Bill Caparis, Doug Schwartz,

Justin Chapman and me. We

discussed the local real

estate/development market and in my

set I was asked to provide information

on residential growth, problems, and

challenges. The final discussion group

brought in outside interests including

representatives from Jimmy Johns

Gourmet Sandwiches; Le Duff America

(Le Madeline restaurants); AT&T

Mobility; TopGolf entertainment; and

the senior director for real estate for

Walmart.

I told the April general meeting about

some of the big things coming to El

Paso in the very near future that I was

able to discern from the conference.

There is significant interest in El Paso

as more barriers are taken down. In

particular restaurants are finding El

Paso as underserved and that’s why

they’re interested in coming. Chipotle

found out what can happen as did

Sprouts when it expanded. The new

Le Madeline set all-time records for a

grand opening week. I pointed out that

retailers including H&M could lead us

to get an HEB grocery store or even a

Trader Jacks or Whole Foods. El Paso

has an underground economy that is

visible on Friday and Saturdays as

restaurants and bars fill up. The

Medical Center of the Americas is the

economic driver for the next 50 years,

in my humble opinion. Our reliance on

Fort Bliss will remain strong but El

Paso will diversify and provide untold

opportunities to those willing to

challenge the main stream. Proof lies

in the work done by Bob Ayoub and

Tina Wolfe. They are visionaries who

love El Paso and are willing to share

her with outsiders. I am proud to have

represented the residential market at

the conference and hope that I will

have a chance to do so again.

Perspective

Ray Adauto,

Executive

Vice President

EPAB


Commercial group stages El Paso conference;

El Paso shines with opportunities


Housing Starts Rise

2.8 Percent in March

Led by a 6 percent rise in single-family

starts, nationwide housing production rose

2.8 percent above an upwardly revised

February rate of 920,000 to a seasonally

adjusted annual rate of 946,000 units in

March, according to newly released figures

from HUD and the U.S. Census Bureau.

“We see improving signs of new-home

construction as we move into the spring

buying season,” said Kevin Kelly, chairman

of the National Association of Home

Builders (NAHB) and a home builder and

developer from Wilmington, Del. “The

strongest recovery is in the Northeast and

Midwest, where builders were hampered

by severe winter weather earlier in the

year.”

“Today’s report is in line with our

forecast of a gradual strengthening in the

housing sector in 2014,” said NAHB Chief

Economist David Crowe. “However,

several uncertainties including tight credit

conditions for home buyers and erratic job

growth are making builders cautious about

getting ahead of demand.”

Single-family housing starts rose 6

percent to a seasonally adjusted annual

rate of 635,000 units in March, while

multifamily starts fell 6.1 percent to

292,000 units.

Regionally in March, combined single- and

multifamily housing production rose

strongly in the Northeast and Midwest with

gains of 30.7 percent and 65.5 percent,

respectively, but fell 9.1 percent and 4.5

percent in the South and West,

respectively.

Overall permit issuance fell 2.4 percent

to 990,000 units in March. The Northeast

and Midwest posted gains of 33.3 percent

and 26 percent, respectively, while the

West was unchanged and the South

posted a 17.1 percent decline.

Builder Confidence

Holds Steady in April

Builder confidence in the market for

newly built, single-family homes rose one

point to 47 in April from a downwardly

revised March reading of 46 on the

National Association of Home

Builders/Wells Fargo Housing Market

Index (HMI) released today.

“Builder confidence has been in a

holding pattern the past three months,”

said NAHB Chairman Kevin Kelly, a home

builder and developer from Wilmington,

Del. “Looking ahead, as the spring home

buying season gets into full swing and

demand increases, builders are expecting

sales prospects to improve in the months

ahead.”

“Job growth is proceeding at a solid

pace, mortgage interest rates remain

historically low and home prices are

affordable,” said NAHB Chief Economist

David Crowe. “While these factors point to

a gradual improvement in housing

demand, headwinds that are holding up a

more robust recovery include ongoing tight

credit conditions for home buyers and the

fact that builders in many markets are

facing a limited availability of lots and

labor.”

Derived from a monthly survey that

NAHB has been conducting for 30 years,

the NAHB/Wells Fargo Housing Market

Index gauges builder perceptions of

current single-family home sales and sales

expectations for the next six months as

“good,” “fair” or “poor.” The survey also

asks builders to rate traffic of prospective

buyers as “high to very high,” “average” or

“low to very low.” Scores from each

component are then used to calculate a

seasonally adjusted index where any

number over 50 indicates that more

builders view conditions as good than

poor.

The HMI index gauging current sales

conditions in April held steady at 51 while

the component gauging traffic of

prospective buyers was also unchanged at

32. The component measuring

expectations for future sales rose four

points to 57.

The HMI three-month moving average

was down in all four regions. The West fell

nine points to 51 and the Midwest posted

a four-point decline to 49 while the

Northeast and South each dropped two

points to 33 and 47, respectively.

Editor’s Note: The NAHB/Wells Fargo

Housing Market Index is strictly the

product of NAHB Economics, and is not

seen or influenced by any outside party

prior to being released to the public. HMI

tables can be found at nahb.org/hmi.

More information on housing statistics is

also available at housingeconomics.com.

NAHB Supports

Senate Bill that

Addresses ‘Patent

Trolls’

The National Association of Home

Builders (NAHB) is calling on the Senate to

advance the Patent Transparency and

Improvements Act of 2013 (S. 1720),

legislation that would significantly improve

the U.S. patent process and stop patent

abuse.

Small business owners in home building

and scores of other industries across the

nation are increasingly being attacked by

patent trolls who are indiscriminately

issuing threatening letters to companies

alleging patent infringement.

“This is little more than a coercion tactic

intended to force companies to enter into a

licensing agreement or risk litigation,” said

NAHB Chairman Kevin Kelly, a home

builder and developer from Wilmington,

Del. “S. 1720 would improve the patent

process and protect businesses and

individuals who are the target of dubious

claims.”

Fighting to stop patent trolls and fix

patent laws, NAHB is a member of the Main

Street Patent Coalition, a national, non-

partisan coalition of organizations that are

dedicated to stopping patent abuse from

trolls by encouraging Congress to pass

comprehensive, common sense patent

reform legislation.

Senate bill S. 1720 would help put an end

to bad-faith demand letters that are hurting

jobs, stifling innovation and threatening

small business owners with protracted,

expensive patent infringement lawsuits.

The legislation makes clear that sending

fraudulent or materially misleading demand

letters in connection with the assertion of a

patent is an unfair and deceptive trade

practice that may be targeted by the

Federal Trade Commission.

The Senate Judiciary Committee is

expected to consider the bill in the near

future.

Industry News

TEXAS BUILDER OF THE YEAR

2013

A W A R D E D

We build so you can GROW

By Ben Keough The graybeard of high-end design is

increasingly déclassé. Here's what's

coming to force it into retirement.

For years, granite has been the go-

to material for high-end countertops.

Despite its expense, weight, and

ubiquity, it still remains the countertop

of choice.

But at EuroCucina 2014, there was

a huge variety of granite alternatives

on display. From stainless steel to

tempered glass, from ceramic to

wood... we’ve seen the future of your

kitchen, and it’s not granite.

Tempered GlassGerman design house Leicht

showed off a lovely tempered glass

countertop in a number of its model

kitchens. The thick, translucent

material is tough and has a pleasant

tactility, while still remaining easy to

clean. According to company reps, it’s

also available in a huge variety of

colors.

CeramicsLeicht also made use of ceramic

counters, which one representative

described as the “closest thing you

can get to indestructible.” The material

is scratch-resistant, easy to clean, and

cool but not cold to the touch. And the

dark gray finish we saw paired

beautifully with the wooden surround.

Nanotech MaterialsThe most unusual alternative

countertop we saw at EuroCucina

came from Italian designer Arrital,

courtesy of Arpa Industriale. Referred

to as a “nanotech matte material,” the

Fenix NTM countertop is anti-

reflective, anti-fingerprint, self-healing,

and soft to the touch without being...

well, soft. It felt great under our hands,

and looked great in Arrital’s modern

kitchens.

WoodWe saw solid wood and wood-

finished countertops everywhere at

the show, often contrasting with or

overlaid on a stone or synthetic

material. Everything from mahogany

and ebony to light pine and bamboo

was used, and often paired with

matching cabinetry to create a

minimalist yet warm look. In some

cases, wood was even paired with

granite, though that was less

common.

At least one of Snaidero's

EuroCucina kitchens featured an

overlapping combo of wood and

stone.

Arrital also mixed wood with

synthetic finishes to interesting effect.

Leicht also got in on the wood-and-

stone game... and even mixed in a

little granite. Cheeky!

Rossana eschewed granite and

paired its dark wood countertop with

luxurious marble.

Something went wrong when

fetching the photos. Please try again.

Stainless SteelLook, stainless is nearly as played

out as granite. In fact, we just ran a

whole story about why

it’s probably a terrible idea to

overdose on gleaming silver in your

kitchen. But plenty of designers at

EuroCucina made a virtue out of this

particular vice and made stainless

countertops look fresh and new again.

In addition to its nanotech finish,

Arrital showed off plenty of stainless

Italian designer Rastelli showed off a

huge stainless countertop at

EuroCucina.

TileWhen it comes to countertop

finishes, tile is pretty old school. It’s a

style that’s generally beholden to a

certain era or area—both of the places

I lived in Santa Fe had them, for

instance. At least one designer at

EuroCucina is aiming to bring them

back. Minacciolo’s Minà multi-function

island employs a beautiful mosaic tile

top with subtle hues of red and

orange.

Ben is an experienced industry

journalist, now managing news and

features for Reviewed.com. Most recently

hailing from the vast wilds of the American

southwest, he is an avid photographer who

is deeply disturbed by the lack of wide

open landscapes in Boston.


ProPertytaxreduction• Over 25 years of experience in property tax

valuations and real estate appraisals

• Property tax services throughout the USA

• Specializing in commercial, industrial, vacant land

• Residential and personal property valuations

PTP Valuation ServicesMark Salazar

1551 Montana, suite 204,

El Paso Texas 79902

915-542-3815 fax 915-542-0612

95% success rate

in achieving

Alternate materials growing in counter top popularity

72014 ISSUE 4 Builders Outlook

Builders utlook on the scene |Spring Golf Tourney

The 2014 Spring Golf Tournament,sponsored by StrucSure Home Warranty,was played at Horizon Golf andConference Center on April 16. Despitedire predictions of very gusty winds andblowing dust the day turned out to bepicture perfect in more ways than just theskies.

Twenty five teams showed up for the golfand fun that this tournament is known for.Guests were signed in by Margaret andher cast of volunteers from theProfessional Women’s Council. Thewomen sold mulligans to help support theirscholarship program and a good amountwas collected for that effort. Each teammember was handed a goodie bag thatwas described by our sponsor ScottWhisenant as “better than the bagshanded out by other associations”.Numerous items in the bag ranged fromtowels to lip balm, cookies, crackers orcandy bars, fig newton’s, and more. Thegolfer was then given a sleeve of CallawayHEX golf balls courtesy of the EPAB.

The golf course hadn’t seen anassociation event in over 10 years. Itbrought back some very good memoriesfor some of our players. Rudy Guel toldthe Outlook that the day turned out well. “Iam so impressed with the way this funtournament turns out, and it’s because ofthe hard work you guys put into it,” Guelsaid. “My team and I had a terrific time.The course was good, the beer was verycold, the meal was great and the serviceterrific,” he continued. Sam Shallenberger,the tournament chair was equallyimpressed. “The service we got fromMoonlight Bar and Grill, and the HorizonGolf guys was awesome,” Sam said. “I cantell you that back in January when westarted to look at the course for thetournament we weren’t all that sure, butthe results speak for themselves. It wasgreat!”

Our thanks go to Jeff Gates, the GeneralManager and pro for Horizon Golf andConference Center. He and his staff madeeveryone feel comfortable and welcomed.Jeff told the Outlook that he was gratefulfor the associations business. “I reallywant to thank Ray and Sam for choosingus and allowing us to host the tournament,”Gates said. “While we’re still some monthsaway from being at our best this year thecourse has really come a long way,” hesaid. The course fairways were in decentshape and the greens a little rougher thana course that has been in constantsupervision. Horizon was abandoned for along time and up to a year ago the coursegreens didn’t exist. “We have put a greatdeal of work into this course, getting thepro shop stocked, finding ways to returnthe club to its original greatness,” Gatessaid. “It will be a real gem soon, and weinvite your members and guests to comeout and try us,” he told us.

The team of Chris Montiel, HenryTinajero, Chris Elguea and Lane Harristook first place with a sizzling 54. Theywon Taylor Made RBZ drivers for theirefforts. The second place went to the teamfrom Texas Gas headed up by Mica Shortand included the Mayor of Horizon CityWalter Miller. Third place went to WestStarBank team headed up by Armando Avila.Andy Arroyos won the closest to the targeton the fairway, sponsored by Stewart Title,while long drives were won by ShaneDuncan, sponsored by Sierra Title andVincent Quintana, sponsored bySouthwest Land Development. The drinkcarts were staffed and sponsored byHUNT and Pioneer Bank; the dinnersponsor was HUNT Communities. A$10,000 hole in one contest wassponsored by Employee Benefits of ElPaso while the beverage Tinas (washtubs)were compliments of AT&T Mobility.

el paso development news

A new eatery has been added to the

lineup of the Fountains at Farah shop-

ping center in East El Paso. Grimaldi’s

Pizzeria, an Arizona-based pizza and

calzone chain, will be located in the

Promenade lifestyle section of the cen-

ter.

It will be the 11th Texas location for the

restaurant chain, which has a total of 32

locations throughout the United States.

“Our team searches the country for

the best restaurant sites, and we’re excit-

ed about opening our eleventh location

in Texas,” said Joey Ciolli, president and

chief executive officer of Grimaldi's

Pizzeria, in a press release.

“We see a lot of opportunity in El Paso

and we are excited to be a part of The

Fountains at Farah property. Guests will

feel comfortable, enjoying our coal-fired

brick oven pizza, all at a great price.”

Grimaldi’s credits its coal-fired ovens

at its restaurants for its success. The

ovens are designed and built by hand

and weigh in at 25 tons each, using 100

pounds of coal per day. This creates

heat of up to 1,200-degrees within the

oven, allowing for a “crispy and smoky

thin crust.” In recent years, Grimaldi’s

has been named “best pizzeria” by the

Zagat Survey.

In addition, a chemist will be hired to

ensure the water used in making the

dough at the Fountains at Farah location

will “re-create” the water used at the

chain’s Brooklyn location, to ensure the

dough tastes exactly the same, accord-

ing to the press release.

Aside from pizzas and calzones, the

restaurant will offer fresh salads and

desserts.

The Fountains at Farah opened last

fall, and the Promenade shops area is

slowly filling in. Two other restaurants,

Kona Grill and La Madeleine Country

French Café, are currently under con-

struction and should open soon.

No opening date has been announced

for Grimaldi’s Pizzeria (www.grimald-

ispizzeria. com).

The City of El Paso has provided

updates on three public park projects cur-

rently underway around town. The parks

are just three in a myriad that will see

improvement projects in the coming

years, many of which are funded by the

2012 Quality of Life bond initiative

approved by voters.

Fiesta-Balboa Park on the West Side is

the closest to completion. This project

has transformed vacant properties near

Mesa Street into a pocket park that

includes amenities such as a basketball

court, play equipment, benches, and

landscaping.

Homes that once occupied the proper-

ties were severely damaged in the infa-

mous storm that caused severe flooding

in El Paso in 2006. For years, only con-

crete slabs showed a hint of the homes

that once sat there.

Black Stallion LB Construction of El

Paso was awarded the park project last

year. Fiesta-Balboa Park should open in

the coming weeks.

Further east, in Central El Paso, the

brand new Radford Park is also showing

concrete signs of progress as sidewalks

have been added along Radford Street

and park paths are being set. The nearly

three-acre park is located just south of

the Pershing Gate to Fort Bliss.

New amenities for the planned park

include two playground areas, one for

toddlers and one for school-age children,

bike racks, sidewalks, and lighting.

According to the site plan, paths will

meander through the park, which is locat-

ed on a somewhat-sloped property. Two

sports courts will be located in the south-

west quadrant of the park, including one

that can be used for hard-court soccer or

basketball.

Medlock Commercial Contractors of El

Paso was awarded the contract by the

City in December, with completion tenta-

tively set for August 2014.

And a project to improve Armijo Park in

South El Paso should start next month,

according to a public meeting held last

week. About half of the park should be

affected.

Construction crews will replace a play-

ground area with new equipment, make

improvements to sidewalks and paths,

install new trees, and make lighting

improvements. The project was awarded

to Kaizen Construction Service of El

Paso last month.

Work on the Armijo Park project should

be completed by August 2014.

Retail Buzz: Grimaldi’s Pizzeria to Open at ‘Fountains’

Improvements Continue at El Paso Public ParksFiesta-Balboa, Radford, and Armijo Parks See Progress

The interior of a Grimaldi’s Pizzeria, from the restaurant chain’s website. A new

location will open at the Fountains at Farah this year. (www.grimaldispizzeria.com)

Recently installed playground and athletic equipment at the

new Fiesta-Balboa park. (City of El Paso)

Before the upcoming Brio RTS begins to

steal Sun Metro headlines, El Paso’s

mass transit system has just added 22

buses to its regular fleet. The new buses

will replace other units currently being

retired.

The new units are 2014 New Flyer

Xcelsior models, 40-foot buses which will

be powered by compressed natural gas.

The Xcelsiors offer better fuel economy,

low floors, LED interior lighting, and a

more aerodynamic design.

A new feature may help passengers

using mobility devices, such as wheel-

chairs, board and exit the bus units more

quickly. The “rear-facing wheelchair-

securement” option will not compromise

passenger safety, according to a Sun

Metro press release. The current “forward

facing” option will still be available.

The units that will be retired, which date

from 1991, have driven over one million

miles. Most units will be stripped of

usable material that can be sold for scrap,

though some units will be retained for

training purposes.

The new buses are paid in part by

Federal Transit Administration grants.

They will be rolled out over the next few

months.

Sun MetroBrings 22 New Buses toIts Fleet

ALong before ground is broken on the

newest neighborhood in El Paso’s Upper

Valley, developers and City officials held

their second public meeting discussing

and drawing ideas for the 120 acre

development on Wednesday, April 2,

2014.

UV120, a local land development part-

nership, is holding the meetings in coor-

dination with the City of El Paso’s

Planning Division to get the public’s feed-

back on how the future neighborhood

should be designed, what amenities it

should include, and how the land plan

should be laid out.

During the first meeting, which was

held January 30, 2014, officials showed

participants different general images in

the categories of housing, thoroughfares,

commercial, parks & open space, civic

buildings, amenities, and canal-scapes.

Attendees used stickers to indicate which

version of each category they preferred.

Generally, participants chose images

that resemble current themes throughout

the Upper Valley, including elements

such as trees, open space, and agricul-

ture, especially in the categories of parks

& open space, amenities, and thorough-

fares.

In the category of amenities, the top

image was one depicting an outdoor café

along a waterway dotted by waterfowl.

The second-ranked choice was an image

showing an outdoor open space shaded

by many trees and suggesting an agricul-

tural market setting.

For housing uses, participants showed

a desire to include various housing types,

tending toward lower density homes.

Some attendees did show a preference

for an uptick in density along a main thor-

oughfare.

Participants really liked the idea of a

main street lined with shops and eateries

for the property. The top four choices in

the commercial category all showed this

similar theme. The options showing lots

of pavement, a parking lot and a wide

surface street, received the fewest votes.

Officials also gave meeting attendees a

chance to choose which was their

favorite among the layouts of existing

neighborhood plans in other cities. A con-

ceptual master plan for a neighborhood

in Humboldt County, California, was the

top choice, with a plan from Gilbert,

Arizona, just behind in close second.

Both plans showed a mix of uses with a

focus on open space.

City and UV120 officials will use the

next meeting to get clarification on resi-

dential and commercial densities and

styles, and the preferred design of thor-

oughfares throughout the property. No

timeline has been provided for the even-

tual development of the 120 acre proper-

ty, which is currently used for agriculture.

It is located on the southeast corner of

Artcraft

Image1: These were the most and

least liked images for commercial spaces

during the charrette in January. (City of

El Paso)

Image 2: The 120-acre property sits

among neighborhoods transitioning from

agricultural uses to residential uses.

Builders Outlook Issue 4.2014

Content provided by

El Paso Development News

visit: elpasodevnews.com

2nd Charretteto be Held forUpper ValleyPropertyFindings from FirstCommunity DesignMeeting Released‘

Two New Eateries Open at ‘Fountains’Craze, La Madeleine Latest to Open Doors

Two new eateries are the latest to

open in the Promenade lifestyle section

of the Fountains at Farah shopping cen-

ter in East El Paso. La Madeleine

Country French Café and Craze Yogurt

Lounge have opened their doors at the

center.

La Madeleine, a franchise venture

of local businesspersons Paul Foster and

Alejandra de la Vega Foster, specializes

in fresh-baked baguettes, bold espres-

sos, and delicate pastries. The restaurant

offers breakfast, lunch, and dinner and is

open daily from 6:30 a.m. to 10:00 p.m.

The eatery opened its 4,500 square

foot location on April 3, 2014. It includes

features such as wood floors, hearth fire-

places, rustic beams, custom-built seat-

ing areas, and a wine room. The wine

room includes a 100-year-old reclaimed

fireplace.

The La Madeleine spot at the

Fountains is at the western end of the

Promenade area, to the southwest of

Nordstrom Rack. La Madeleine

(lamadeleine.com) has 63 locations

throughout the United States, mostly in

Texas.

On the opposite end of the

Promenade, Craze Yogurt Lounge is now

serving frozen yogurt after opening on

March 29, 2014. The shop is located in

one of the conservatory-like mini-struc-

tures in the middle of the Promenade,

near a Verizon store.

This is the third location for Craze

(crazeyogurt.com) which also has loca-

tions on the West Side and in Far East El

Paso. Craze opens daily at 11:00 a.m.

Restaurants still to come include

Kona Grill, a “modern American grill and

sushi bar,” and recently-announced

Grimaldi’s Pizzeria, specializing in pizzas

and calzones baked using a coal-fired

oven. Kona Grill is scheduled to open

this spring with Grimadli’s opening up

later this year.

A national sports pub chain will open a

new location in West El Paso this sum-

mer. The Tilted Kilt, a Celtic-themed

restaurant and bar whose servers wear

Scottish kilts, will open its sixth Texas

location in the Sun City.

"Tilted Kilt is ecstatic to be opening this

new location in El Paso and continue to

expand across the market," states Teo

Regalado, the Tilted Kilt franchise owner

in El Paso, in a press release.

"The Tilted Kilt concept continues to flour-

ish and grow as people seek more con-

venient, casual dining options with a

unique ambiance, innovative menu

options and unbeatable hospitality."

According to the press release, the sports

pub’s theme will combine “Celtic décor,

humorous and slightly bawdy limericks

and sexy cast members with great food,

drinks and a fun entertaining atmosphere.”

Diners can expect traditional pub food

such as fish and chips as well as “cre-

ations” like a Pub Fried Egg Burger and

Gaelic Chicken. The eatery will also spe-

cialize in “beers from around the world.”

The chain currently has 94 locations in

North America, with 20 more in develop-

ment. The concept was developed in 2003

at the Rio Hotel in Las Vegas.

The first El Paso location will open up at

955 Sunland Park Drive, west of Interstate

10, near the Holiday Inn Sunland Park

and Bob-O’s Family Fun Center. There

are plans for an additional two El Paso

locations in the works. No opening date

has been revealed, though it should be

sometime this summer, according to the

press release.

Tilted Kilt to Openin West El Paso’

Chain Brings SportsPub Experience withScottish Twist

House-HoldSpending

By Elliot Eisenberg,Ph.D., GraphsandLaughs,LLC

Before the Great Recession,household wealth peaked at $68.8trillion or $254,600 per person. If thatseems like more money than you have,it’s because wealth isn’t evenlydistributed. The rich have much more ofit than the poor. As a result, back in2007 the median family had wealth ofjust $126,000 while the average familyhad $584,000. Then the recession hit,house prices plunged, stock marketscratered and household wealth hit a lowof $56.6 trillion in 2009. Since thenstock markets around the world havestaged a remarkable recovery andhouse prices have been steadilyrecovering. As a result, householdwealth now stands at $80.7 trillion,almost $12 trillion more than before therecession. So things have more thanrecovered, right? Not quite.

Since 2007 there has been inflationand the US population has grown by 20million people. As a result, inflation-adjusted per capita wealth is now$254,000, just a shade less than it wasbefore the Great Recession. So we areat least back where we were before therecession hit, right? Not so fast. Theproblem is that the asset price recoveryhas been profoundly unequal and thathas caused the distribution of wealth tochange dramatically. And that has hugeimplications for the economy.

Homeowner equity hit $10 trillion lastquarter, and while way up from a low of$6.3 trillion in 2011, it’s nowhere nearthe pre-recession high of $13.4 trillion.By contrast, equities have soared andare now worth almost $23 billion, waymore than their pre-recession high of$18.3 trillion. The economic kicker isthat equities are primarily owned byupper-income households, while homeequity is the major source of wealth foreverybody else. This means that whilethe rich are roughly $5 trillion wealthierthan they were before the recession, allother households are about $3.5 trillionpoorer. And while the upper classesspend more when their wealthincreases, it’s nothing like the increasein spending that occurs when the rest ofthe population feels better off.

A huge chunk of middle classspending is the result of tapping intohome equity via cash-out refinancing.Regrettably, despite rising home pricesmany households are still under water,credit remains harder to get than everbefore, and many households nowhave mortgages with extremely lowinterest rates and are simply unwillingto tap into their home equity. As aresult, mortgage equity withdrawal hasnearly stopped. After peaking at $320billion in 2006, it was just $32 billion lastyear, a decline of almost $300 billion,and that is the highest it’s been since2010!

In addition to the rich, another groupthat has done well is older Americans.

Families headed by someone under 40have on average recovered only one-third of their lost wealth, but familiesheaded by someone middle-aged orolder have recouped all their losses asmore of their wealth is in stock and lessin housing. And regrettably the middle-aged and the elderly, like the wealthy,are less likely to spend their capitalgains than younger middle classfamilies.

As a result of the profoundly unevenwealth recovery, spending on luxurygoods has done very well but firms thatrely on middle class spending are notenjoying nearly as much of arenaissance. For that to change wageswill have to start rising.

Elliot Eisenberg, Ph.D. is President of

GraphsandLaughs, LLC and can be

reached at [email protected].

His daily 70 word economics and policy blog

can be seen at www.econ70.com.


The Economy

years

E L P A S O

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Tony Zimbelman, a small home builder

and general contractor from Wichita, Kan.,

testified at a recent Occupational Safety

and Health Administration (OSHA) public

hearing against a proposed rule to regulate

workers’ exposure to crystalline silica.

In February, NAHB asked OSHA to

withdraw the proposed rule, and instead

treat it as an advance notice of a proposed

rule. Doing so would allow the agency time

to collect more data and determine how

best to align the rule with current

construction industry practices.

As written, the proposed rule drastically

lowers the permissible exposure limit (PEL)

of silica dust workers can be exposed

to; requires impractical medical surveillance

of construction industry workers; mandates

extensive and costly recordkeeping

processes; and places restrictions on

certain construction site work practices,

which do not align with existing safety

procedures.

Zimbelman said that he and many other

small builders and trade contractors find the

rule difficult to understand, and don’t feel

the compliance requirements make sense

for the residential construction industry.

“After reading through the proposed

language and Table 1 a number of times, I

am still not sure what to do to comply,” he

told OSHA officials.

As an example, Zimbelman pointed out

that the procedures and engineering

controls listed in Table 1 do not specifically

address all construction tasks, especially in

home building. Table 1 in OSHA’s proposed

rule contains the required silica control

methods for construction operations.

“Our deck builders hand mix concrete for

setting deck posts, which takes about an

hour. Because Table 1 does not address

this specific task, will these contractors be

required to conduct exposure assessment

and monitoring to determine if their workers

are exposed to silica above the permissible

exposure limit,” he queried.

“This monitoring is complex, time

consuming and costly,” he continued. “In my

experience, trade contractors are currently

not conducting exposure testing and these

small employers would definitely have to

hire an outside industrial hygiene firm to do

this.”

Zimbelman also noted that silica controls

requiring a continuous water source might

not always be feasible in home building.

Most new construction sites are not hooked

up to a water source for two to three months

after construction begins.

“The local municipality controls when

water service is provided, and it is often

delayed well into the construction process,”

he said.

One of the largest issues with the

proposed rule, Zimbelman added, was

simply convincing workers that the

regulations and compliance measures are

necessary.

Zimbelman said he could easily point to

facts and data related to falls and the need

for fall protection requirements, but because

OSHA has yet to provide information

showing a direct correlation between

silicosis deaths resulting from residential

construction work, workers may not believe

there’s a real threat.

Kansas Builder Testifies at OSHA Silica Hearing: Rule Just Doesn’t Work for Residential Construction

Advertise your business to the home building industryThe Builders Outlook is the official publication of the El Paso Association of Builders. Our award winning

monthly newspaper is the only publication to target El Paso home builders and related businesses.

Widely distributed throughout the city and available to readers online, the Builders Outlook is an important

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Of the approximately 350 metro

markets nationwide, 59 returned to or

exceeded their last normal levels of

economic and housing activity,

according to the National Association

of Home Builders/First American

Leading Markets Index (LMI), released

today. This represents a net gain of 11

metros year over year.

The index’s nationwide score ticked

up to .88 from a March reading of .87.

This means that based on current

permit, price and employment data,

the nationwide average is running at

88 percent of normal economic and

housing activity. Meanwhile, 28

percent of metro areas saw their score

rise this month and 83 percent have

shown an improvement over the past

year.

“I think the big news here is that

regions outside of the energy states

continue to gain ground,” said NAHB

Chief Economist David Crowe. “It’s a

promising sign to see areas like Los

Angeles and San Jose joining the top

ten largest MSAs showing a recovery.

We still expect 2014 to be a strong

year for housing and to aid in the

overall economic recovery. The job

market continues to mend and with

that we will see a steady release of

pent up demand of buyers.”

Baton Rouge, La., continues to top

the list of major metros on the LMI,

with a score of 1.42—or 42 percent

better than its last normal market level.

Other major metros at the top of the list

include Honolulu, Oklahoma City,

Austin and Houston, Texas, as well as

San Jose, Calif. and Harrisburg, Pa.—

all of whose LMI scores indicate that

their market activity now exceeds

previous norms.

“Things are getting slowly better

overall,” said NAHB Chairman Kevin

Kelly, a home builder and developer

from Wilmington, Del. “And with the

housing market now entering the

spring buying season, the fact that the

nation’s economy is headed in the

right direction is a very promising

sign.”

“Stronger employment numbers

seemed to be the driving force this

month—an important factor to the

recovery of our economy,” said Kurt

Pfotenhauer, vice chairman of First

American Title Insurance Co., which

co-sponsors the LMI report.

Smaller metros showing recovery

continue to be dominated by the

middle of the country experiencing an

energy boom. Odessa and Midland,

Texas, boast LMI scores of 2.0 or

better, with their markets are now at

double their strength prior to the

recession. Also at the top of the list of

smaller metros are Bismarck, N.D.;

Casper, Wyo.; and Grand Forks, N.D.,

respectively.

The LMI shifts the focus from

identifying markets that have recently

begun to recover, which was the aim of

a previous gauge known as the

Improving Markets Index, to identifying

those areas that are now approaching

and exceeding their previous normal

levels of economic and housing

activity. More than 350 metro areas

are scored by taking their average

permit, price and employment levels

for the past 12 months and dividing

each by their annual average over the

last period of normal growth. For

single-family permits and home prices,

2000-2003 is used as the last normal

period, and for employment, 2007 is

the base comparison. The three

components are then averaged to

provide an overall score for each

market; a national score is calculated

based on national measures of the

three metrics. An index value above

one indicates that a market has

advanced beyond its previous normal

level of economic activity.

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MAY 14BOARD MEETING

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JUNE 11BOARD AND GENERAL MEETING

EL PASO CLUB

RENEWALS |


A big hello to all !!!! I hope everyone

had a HAPPY EASTER. I would have

to say the golf tournament was a huge

success based on all the comments we

have received. The food and service in

and outside the club house was first

rate. The golf course for only being

open for around five or six months was

as good as to be expected. The

fairways were in great shape but the

greens have a ways to go. The course

was closed for over two years and I

think Jeff Gates and his staffs have

done a good job getting it to where it is.

Give it a few more months and it will be

top notch.

I would like to thank everyone who

participated and especially those of you

that volunteered their time and effort to

make this tournament a big success.

Everything was sold out so our

membership again proves why we are

among the most successful

associations in El Paso.

See you soon, remember we have

Bowling coming this summer.

Sam ShallenbergerWestern Wholesale Supply

Associates Council

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� execuTive oFFicerS

Frank Torres – President

GMF Custom Homes

edgar montiel – vice President

Palo Verde Homes

carlos villalobos – Secretary Treasurer

Palo Verde Homes

Sam Shallenberger – Associates chair

Western Wholesale

edmundo Dena - immediate Past President

Accent Homes

ray Adauto – executive vice President

El Paso Association of Builders

Jay Kerr -Attorney of record

� couNciL/commiTTee cHAirS

Associates council

Sam Shallenberger

Build PAc

Randy Bowling

Desert Green Building council

Javier Ruiz

Land use council

Sal Masoud

Young Designer Award

John Chaney

remodelers council

Rudy Guel

membership retention

Mike Santamaria, Greg Bowling

Finance committee

Carlos Villalobos

Women’s council

Lorraine Huit

� ADviSorY To THe BoArD

J. Crawford Kerr, Attorney, Firth, Johnston

& Martinez

� BoArD oF DirecTorS

Beverly Clevenger, Automated Division 6 Builders, Inc.

Leti Navarette, Custom Dream Homes

Kathy Parry, Hunt Communities

Edgar Garcia, Bella Vista Custom Homes, Inc..

Bud Foster, Southwest Land Development Services

Juanita Garcia, ICON Custom Home Builder, LLC

Walter Lujan, DAWCO Home Builders

Joey Najera, Joseph Custom Homes

Rigo Mendez, Mission Homes

Nick Bombach, Casas de Leon, LLC

Lydia Mhouli, Crown Heritage Homes

JJ Vasquez, Pacifica Homes

Dan Ruth, Millenium Homes

Ken Wade, El Paso Building Materials

Ruben Orquiz, MTI Ready Mix

Kathy Carrillo, Pioneer Bank El Paso

Henry Tinajero, WestStar Bank

Chuck Gabriel, Carpets West

Ted Escobedo, Snappy Publishing

John Chaney, Passage Supply

Joe Bernal, Employee Benefits of El Paso

Linda Troncoso, TRE & Associates

Orlando Rodriguez, Mass Media Advertising, Inc.

Bret Thompson, Foxworth Galbraith Lumber

Chris Worm, City Bank Texas

Sal Masoud, Del Rio Engineering

2013 Builder member of The Year

Edmundo Dena

Accent Homes

2013 Pat cox AwardSam Shallenberger

Western Wholesale Supply

2013 Associate of The YearWestStar Bank

Larry Patton, Burt Blacksher

and Henry Tinajero

Honorary Life members

Wayne Grinnell

Don Henderson

Chester Lovelady

Cliff C. Anthes

Anna Gill

Brad Roe

Rudy Guel

E H Baeza

Past Presidents

committed to Serve

ePAB mission Statement:

The El Paso Association of Builders is a

federated professional organization representing

the home building industry, committed to

enhancing the quality of life in our community by

providing affordable homes of excellence and

value.

The El Paso Association of Builders is a

501C(6) trade organization.

© 2014 Builder’s Outlook

is published and distributed for the

El Paso Association of Builders

by Ted Escobedo, Snappy Publishing

[email protected]

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Builders utlook

Documents

Builders Out Look 2014 Issue 4