By September 11, 2015

Circle Mountain Ranch Annexation: A Done Deal?

UPDATE 3/7/17: Anthem Circle Mountain Home Construction Begins — The wet winter caused “up to five weeks delay in construction progress” during construction of road beds, which require “long drying times,” said Phil Turner, vice president of land for Pulte.

Original Story from Sept. 11, 2015:

Messina

By Karen Goveia–

Anthem’s proposal to annex 202 new homes in the future Circle Mountain Ranch subdivision appears to be a slam dunk for Pulte Homes and the Anthem Community Council.

Residents heard more about Pulte’s intent to partner with Lennar Homes to develop the land north of the Daisy Mountain Post Office along 43rd Avenue during the first of two community meetings Sept. 9. Pulte, who retains declarant rights to annex land within a 25 mile-radius of Anthem’s boundaries, does not need Council or community approval to proceed with annexation.

More than 50 residents attended the presentation by Pulte representatives including a slide show unveiling potential home designs and floor plans of both builders. Pulte emphasized the financial benefits the Anthem community stands to gain as a result of the move—an increase in revenue to the operating and reserve funds of ACC and Parkside HOA, and a capital contribution to the community’s enhancement fund for each new home sold.* (In the past, enhancement fund transfer fees were levied only on resale homes.)

But the real shocker―which silenced a vocal crowd which voiced frustration at times about the negative impact the deal might have on the community’s already over-crowded amenities―was Pulte’s announcement of its intention to relinquish its declarant rights to annex property once buildout of the Circle Mountain Ranch project was complete. Such an agreement would leave any future annexation to the discretion of Council.

“It is clear they will build the project…” one resident said. “[Pulte is] giving up their declarant rights… That is worth gold.”

Annexation is Crucial for Pulte “The financial portion of [the partnership between Lennar and Pulte] does not work for us if it’s not part of Anthem and it never would,” said Phil Turner, VP of land for Pulte.

The deal appears to be worth gold as a legal agreement has already been drafted, despite the fact that Lennar has not even finalized purchase of the property. Council has the topic on its Sept. 16 meeting agenda for board approval, even though it is not required to execute the deal. A Council staff memo to the board of directors dated Sept. 10 recommends approval of the annexation agreement. The memo states, “The reality is that residents of this new development are highly likely to use Anthem amenities and attend Anthem events, whether or not they are a part of Anthem, thus burdening those assets. It seems unfair for existing Anthem residents to bear costs associated with this additional use without a contribution from this new community.”

What this means financially:

  • Anthem would receive a capital contribution to the community’s enhancement fund at the closing of each residential lot sale. Council would get one-quarter of one percent of the base price charged by the builder, not including added upgrades or premiums. (That total would be a mere $180,000 based on an average home price of $350,000.)  
  • Anthem Parkside would receive approximately $39,000 in additional HOA dues per year.
  • Anthem Council would receive approximately $166,000 in additional assessments per year.

Final Community Meeting
on Annexing Circle Mountain Ranch
6 p.m., Monday, Sept.14
Anthem Civic Building
3701 W. Anthem Way

Anthem Community Council
Board of Directors Meeting
(to approve annexation)
6:30 p.m., Wednesday, Sept. 16
Anthem Civic Building
3701 W. Anthem Way

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