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Wednesday, May 14, 2008

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Your Personal Preserve

On the edge of one of the last small communities in Ada County, lies a preserve. Beyond the cookie cutter subdivisions and farmland, Denali Heights preserves the true meaning of neighborhood - in style. Come and...

  • Cool off in the COMMUNITY POOL
  • Schedule your next party in the CLUBHOUSE
  • Stroll down the quiet tree lined street
  • Rest on a park bench
  • Take the kids to play in the CITY PARK across the street
  • Enjoy the seclusion of the grassy burms

Come and create a personal preserve on your own SPACIOUS LOT*.

*Lot sizes range from approximatley 1/4 acre to over 1/2 acre and start from aprox. $80,000.
  Homes starting in the low $300,000s
  

Community Progress
More Than A Planned Community, Denali Heights is a Bellwether For Kuna's Future
Main / Community Connection  

For most Treasure Valley residents, mention of the name Kuna conjures up images of pastoral bliss a haven for urban escapees who prefer not to see who lives next door, while living out the fantasy of the landed gentry. A stereotype to be sure, but one that has up to very recently been valid.

But all this is changing. Today, fields of grain are giving way to subdivisions of starter homes as rising housing prices fuel the "westward migration" of Boise families looking for their dream home. For landowner Burke Scholer, this was a concern. It wasnt that he wanted to keep residential development from changing Kunas rural character. Quite the opposite. He wanted to ensure that the average property tax contribution from new development would pay for the infrastructure expansion that new residents would create.

In short, Scholer wanted to see the creation of a higher-end community that would respect the sense of open country that attracted people to Kuna, while making sure that property values would offset the attendant costs of development. Now into his 70s, Burke Scholer wanted to try his hand at residential development. The result is Denali Heights, a name inspired by trip to Alaska that he and his wife had recently made.

Filling a Gap

The difference between Denali Heights and other developments taking shape in Kuna is immediately obvious when you visit the community. Homes are spread out along broad, tree-lined streets that cover 40 acres. When completed, the community will have 83 homes, giving each lot an average size of a third of an acre. This stands in stark contrast to a more typical density of 120 homes or more for a subdivision of similar size. "Kuna has been starving for something like this," says Brandon Hunt, sales manager for Denali Heights. "We are filling a gap between starter homes and ranch acreage. People can take a step down in terms of land, and a step up in terms of style and finish work. We think its a good trade off."

Another feature that sets the new community apart for any other development in Kuna is its recently completed pool and clubhouse. "These are really gorgeous community amenities," says Hunt. "Not only are they unique for Kuna, but you would rarely find anything like this in a development the size of Denali Heights.

Surprisingly, Denali Heights isnt the brainchild of some local or out-of-state developer, but the inspiration of a local landowner and retired hydrologist for the state, Burke Scholer. In 1999, Scholer purchased a ten-acre plot of land from relatives with the intention of building a home. In the process, he looked around at other developments taking place in Kuna and realized, along with many of his neighbors, that the value of their properties would suffer if Star was dominated by starter home communities.

The Denali Heights Story

In 2003, after completing their own home, Scholer and his wife began investigating the process of creating a subdivision, and hired a local consultant to help them. One of the concerns Scholer faced was the potential for opposition that other subdivisions were then receiving from neighbors. In the hopes of getting others on board with his vision of a higher-end residential community, Scholer completed a preliminary plat and invited local residents over to his home to share his plans. "They were most concerned about being surrounded by little subdivisions, but when I told them that we would have large lots and strict CC&Rs that would make it a high-end neighborhood, they embraced the project." The concern, Scholer quickly discovered, was less about the size of the lots and more about the quality of the homes.

For Scholer, this concern extended beyond individual property values. "On a broader level, the long-term problem for Kuna with lower-end housing is that by the time you take away the homeowners exemption, the tax base is very small," Scholer notes. "But new families moving in add demands to the infrastructure, such as schools, roads and sewage."

Bolstered by the positive response from his neighbors, Scholer moved forward with a preliminary plat map that initially called for 112 lots, based on the advice of consultants who recommended this number for optimal profitability. Anticipating resistance from Kunas Planning and Zoning, Scholer had the plat map redone based on 83 homes, and in early 2005 the preliminary plat map was approved with very little opposition and the hunt for lenders began.

In 2005, finding a lender for the project was far easier than finding construction partners in the midst of a housing boom. It took Scholer and his associates until fall 2005 to finalize construction contracts. "It was later than we wanted," Scholer recalls. But the challenges were only beginning.

Hitting Snags

Infrastructure construction moved forward throughout 2006, with strong support from Kuna city engineer Kevin Shreve. By October of that year, Denali Heights had progressed to final plat and was ready to sell lots. It was at this point that Scholer discovered that the City of Kuna would not allow bonding to be effective for the as yet uncompleted landscaping work. "We had 25 lots spoken for at that time," says Scholer, and we were trying to get enough landscaping done to meet the minimum standards."

This however, was a minor challenge compared to the Citys decision to withhold approval of lot sales pending an upgrade of the municipal sewage treatment system.

The City proposed that developers pay the up front costs of a new sewage lift station. "We paid $400,000 for 25 sewer connection," says Scholer. "Fortunately, this was the initial number of lots we had committed to build, but one of the other developers dragged their feet, with the result that when the time came to activate the new system we couldnt hook on. In the meantime, the City was turning down our building permits." Scholer responded by hiring attorneys to force the city to relent, but it wasnt until January 2007 that the permits came through. In the meantime, interest charges on the loans Denali Heights had taken out were costing Scholer $1,500 a day, and the project had a note coming due with the lenders.

While Scholer admits to having some anxious moments (lasting about two years!), looking back he acknowledges several factors that kept the project afloat. One was the strong support that Denali Heights enjoyed with Kunas Planning and Zoning Committee. Another factor was the enthusiasm for the project on the part of the buyers themselves. To meet its financial obligations in the face of timetable setbacks, Denali Heights was able to collect purchase prices on 16 of the 25 lots under its development even before permits were finalized. In addition, Scholer credits the professionalism and flexibility of Idaho Mutual Trust in working with Denali Heights.

Gaining Momentum

As of July 2007, Denali Heights has sold roughly half of its available lots. An architectural control committee ensures design consistency among a number of different builders. All homes must observe a 25-foot setback, single story homes must be a minimum of 1,800 square feet and two-story homes must be a minimum of 2,400 square feet. To avoid "boxiness," 60 percent of two-story home square footage must be on the ground floor. The front elevation of each home must be 50 percent stucco, rock or brick, or some combination of these materials. In addition, Denali Heights CC&Rs impose a color palette for esthetic continuity.

Ultimately more important for Kuna than the esthetic appeal of Denali Heights is the type of homebuyer the community is attracting. "Were seeing a lot of young career couples," says Scholer. "Denali Heights is definitely brining higher income and more professional people into the Kuna area." For a retired hydrologist who took on the role of developer to protect the long-term value of his own home, Burke Scholer couldnt be happier with this result.

Posted by Brandon Hunt at 8/17/2007 3:57 PM Permalink | Trackback
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