Phase 2 Agreement |
|
The Vision
Heartwood Cohousing will be developed in two phases, the first phase having been already completed. Phase 2 will be designed and built in a manner consistent with the Phase 1 cohousing model. Phase 2 will be fully integrated into Phase 1, forming a single community.
Finances
Phase 1 has paid Mac and Sandy $246,300 for Phase 1’s 24 lots and share of the land. Mac and Sandy have paid $418,700 for Phase 2’s share of the land. To make the arrangement equitable for both Phase 1 and Phase 2, Phase 1 has paid for the Common Facilities listed below in the Common Land and Facilities section.
Mac and Sandy will be the developers of Phase 2. They will pay the costs (not otherwise identified in this agreement as being the responsibility of Phase 1), take the financial risk related to those expenditures, and keep the financial profits (or losses) related to the Phase 2 development. Phase 1 members will also bear risk related to the Phase 2 development due to uncertainties of the costs they are responsible for, the impact on real estate market values, and other possible unknowns.
The community will work with Mac and Sandy to revise the covenants as needed to make them consistent with this agreement and all of our community agreements to the extent legally possible. They will also create HOA by-laws as needed. A Covenants Revision Task Force will be formed for this work. It is unknown when or how many times the covenants may need to be revised during the Phase 2 development process. All costs associated with revising the covenants and creating the by-laws will be allocated between Phase 1 and Phase 2 on a per household basis.
If the development costs to be incurred by either the community or Mac and Sandy prove to be so large as to make the development of Phase 2 financially infeasible, we will explore other options for Mac and Sandy to get their money back out of the land. One of the options to be considered would be to go back to our original plan: the community keeps ownership of approximately 120 acres and Mac and Sandy sell off approximately 240 acres. If we were to pursue that option, the community would need to transfer ownership of approximately 83 acres to Mac and Sandy.
Names
The name of the community is Heartwood Cohousing. The name of the HOA is Heartwood Ranch HOA.
The Outback refers to the land to the north of the cluster, currently owned by Mac and Sandy. Upon completion of the Phase 2 development, any Outback land not developed into Phase 2 lots will be deeded to the HOA.
The names Phase 1 and Phase 2 will cease to be used following the development of Phase 2 to support integration of the two phases.
Common Land and Facilities
All open space will be shared by all Heartwood Cohousing households. The following common facilities have been constructed at Phase 1’s expense and will be available to all Heartwood Cohousing households.
County Approval Costs
Phase 1 has paid for all costs associated with obtaining County Approval for Phase 1. Phase 2 will pay for all costs associated with obtaining County Approval for Phase 2.
Phase 1 will be responsible for all government imposed road improvements up to the Phase 1 homes. Road improvements serving only the Phase 2 homes will be the responsibility of Phase 2.
Other Infrastructure
Phase 2 will pay for all Phase 2 development costs not addressed in this agreement. If it is determined that water, sewer, or other systems built by Phase 1 could also accommodate Phase 2, Phase 1 and Phase 2 will negotiate terms of such an arrangement when the situation arises.
Phase 2 Lots
Mac will work with the community in the creation of the Phase 2 lots (see Responsibility & Authority section). We will consider locating the lots within the Outback and/or the current HOA open space. We will plan to create 14 lots in Phase 2, but the actual number of lots will depend on what the County allows. These 14 Phase 2 lots do not include any lots that may be created associated with farm housing flexibility (see below). Revising the number of Phase 2 lots to be created (from 14) will require a community decision.
Additionally, the community may explore other alternatives and revise the number of lots so long as the revision alternative generates enough profit to be equivalent to 14 lots in a cluster.
Any alternatives affecting County Preliminary Plat Approval must be decided before we receive County Conceptual Approval.
Farm Housing
Mac will collaborate with N-PAT (or special task force) to create flexibility with the County for possible future farm housing. We will try to get that farm housing flexibility created as soon as possible. N-PAT (or special task force) will be responsible for exploring farm housing options. Any decision to create actual farm housing will be a community decision.
Responsibility & Authority
The community and Mac will work in a spirit of cooperation and trust to develop the second phase of our community. We will strive to meet the needs of the community, both Phase 1 and Phase 2 members, and the needs of Mac and Sandy.
Mac will be responsible for planning and oversight of the Phase 2 development. The Steering team will be responsible for planning and oversight of all community functions listed in the Teams agreement. Mac and the Steering team will coordinate as needed in scheduling community decisions related to the Phase 2 development.
Phase 1 teams will consider how resources they are responsible for will be impacted by the addition of Phase 2 and how to address those impacts.
Responsibilities and Authorities of Mac (as Phase 2 Project Manager) and Phase 2 task forces:
(see Teams agreement for definitions of Proposal Authority and Full Authority)
Revise number of lots to be developed. - Proposal Authority
Collaborate with N-PAT (or special task force) to create flexibility with the County for possible future farm housing. - Full Authority (with NPAT)
Determine location of Phase 2 lots. - Proposal Authority
Determine (with CFT) whether Phase 2 can hook up to Phase 1 water system. Determine (with CFT) cost for water system hook up. - Proposal Authority
Determine possible sharing of other Phase 2 development costs with Phase 1. - Proposal Authority
Plan and oversee Phase 2 development work (including all Phase 2 task forces). - Full Authority
Create and dissolve Phase 2 task forces as needed. - Full Authority
Consistent with our community agreements, manage all other Phase 2 development details not included in this Phase 2 Plan agreement - Full Authority
The Membership team will be responsible for managing Phase 1 & Phase 2 integration. - Full Authority
N-PAT (or special task force) will be responsible for determining the farm housing to be created. - Proposal Authority
The Covenants Revision Task Force will be responsible for revising the covenants as needed to make them consistent with this agreement and all of our community agreements to the extent legally possible. They will also be responsible for creating HOA by-laws as needed. – Proposal Authority (consistent with covenants)
Heartwood Cohousing will be developed in two phases, the first phase having been already completed. Phase 2 will be designed and built in a manner consistent with the Phase 1 cohousing model. Phase 2 will be fully integrated into Phase 1, forming a single community.
Finances
Phase 1 has paid Mac and Sandy $246,300 for Phase 1’s 24 lots and share of the land. Mac and Sandy have paid $418,700 for Phase 2’s share of the land. To make the arrangement equitable for both Phase 1 and Phase 2, Phase 1 has paid for the Common Facilities listed below in the Common Land and Facilities section.
Mac and Sandy will be the developers of Phase 2. They will pay the costs (not otherwise identified in this agreement as being the responsibility of Phase 1), take the financial risk related to those expenditures, and keep the financial profits (or losses) related to the Phase 2 development. Phase 1 members will also bear risk related to the Phase 2 development due to uncertainties of the costs they are responsible for, the impact on real estate market values, and other possible unknowns.
The community will work with Mac and Sandy to revise the covenants as needed to make them consistent with this agreement and all of our community agreements to the extent legally possible. They will also create HOA by-laws as needed. A Covenants Revision Task Force will be formed for this work. It is unknown when or how many times the covenants may need to be revised during the Phase 2 development process. All costs associated with revising the covenants and creating the by-laws will be allocated between Phase 1 and Phase 2 on a per household basis.
If the development costs to be incurred by either the community or Mac and Sandy prove to be so large as to make the development of Phase 2 financially infeasible, we will explore other options for Mac and Sandy to get their money back out of the land. One of the options to be considered would be to go back to our original plan: the community keeps ownership of approximately 120 acres and Mac and Sandy sell off approximately 240 acres. If we were to pursue that option, the community would need to transfer ownership of approximately 83 acres to Mac and Sandy.
Names
The name of the community is Heartwood Cohousing. The name of the HOA is Heartwood Ranch HOA.
The Outback refers to the land to the north of the cluster, currently owned by Mac and Sandy. Upon completion of the Phase 2 development, any Outback land not developed into Phase 2 lots will be deeded to the HOA.
The names Phase 1 and Phase 2 will cease to be used following the development of Phase 2 to support integration of the two phases.
Common Land and Facilities
All open space will be shared by all Heartwood Cohousing households. The following common facilities have been constructed at Phase 1’s expense and will be available to all Heartwood Cohousing households.
- Common House
- Greenhouse
- Workshop
- Barn & Stables
- Open Space Trails
County Approval Costs
Phase 1 has paid for all costs associated with obtaining County Approval for Phase 1. Phase 2 will pay for all costs associated with obtaining County Approval for Phase 2.
Phase 1 will be responsible for all government imposed road improvements up to the Phase 1 homes. Road improvements serving only the Phase 2 homes will be the responsibility of Phase 2.
Other Infrastructure
Phase 2 will pay for all Phase 2 development costs not addressed in this agreement. If it is determined that water, sewer, or other systems built by Phase 1 could also accommodate Phase 2, Phase 1 and Phase 2 will negotiate terms of such an arrangement when the situation arises.
Phase 2 Lots
Mac will work with the community in the creation of the Phase 2 lots (see Responsibility & Authority section). We will consider locating the lots within the Outback and/or the current HOA open space. We will plan to create 14 lots in Phase 2, but the actual number of lots will depend on what the County allows. These 14 Phase 2 lots do not include any lots that may be created associated with farm housing flexibility (see below). Revising the number of Phase 2 lots to be created (from 14) will require a community decision.
Additionally, the community may explore other alternatives and revise the number of lots so long as the revision alternative generates enough profit to be equivalent to 14 lots in a cluster.
Any alternatives affecting County Preliminary Plat Approval must be decided before we receive County Conceptual Approval.
Farm Housing
Mac will collaborate with N-PAT (or special task force) to create flexibility with the County for possible future farm housing. We will try to get that farm housing flexibility created as soon as possible. N-PAT (or special task force) will be responsible for exploring farm housing options. Any decision to create actual farm housing will be a community decision.
Responsibility & Authority
The community and Mac will work in a spirit of cooperation and trust to develop the second phase of our community. We will strive to meet the needs of the community, both Phase 1 and Phase 2 members, and the needs of Mac and Sandy.
Mac will be responsible for planning and oversight of the Phase 2 development. The Steering team will be responsible for planning and oversight of all community functions listed in the Teams agreement. Mac and the Steering team will coordinate as needed in scheduling community decisions related to the Phase 2 development.
Phase 1 teams will consider how resources they are responsible for will be impacted by the addition of Phase 2 and how to address those impacts.
Responsibilities and Authorities of Mac (as Phase 2 Project Manager) and Phase 2 task forces:
(see Teams agreement for definitions of Proposal Authority and Full Authority)
Revise number of lots to be developed. - Proposal Authority
Collaborate with N-PAT (or special task force) to create flexibility with the County for possible future farm housing. - Full Authority (with NPAT)
Determine location of Phase 2 lots. - Proposal Authority
Determine (with CFT) whether Phase 2 can hook up to Phase 1 water system. Determine (with CFT) cost for water system hook up. - Proposal Authority
Determine possible sharing of other Phase 2 development costs with Phase 1. - Proposal Authority
Plan and oversee Phase 2 development work (including all Phase 2 task forces). - Full Authority
Create and dissolve Phase 2 task forces as needed. - Full Authority
Consistent with our community agreements, manage all other Phase 2 development details not included in this Phase 2 Plan agreement - Full Authority
The Membership team will be responsible for managing Phase 1 & Phase 2 integration. - Full Authority
N-PAT (or special task force) will be responsible for determining the farm housing to be created. - Proposal Authority
The Covenants Revision Task Force will be responsible for revising the covenants as needed to make them consistent with this agreement and all of our community agreements to the extent legally possible. They will also be responsible for creating HOA by-laws as needed. – Proposal Authority (consistent with covenants)
Revised 09/14/18