BuildingTrends Nov2008

November 2008

BUILDING trends

Your Local Resource for Construction News

Isaac Bratkovich President of Isaac Construction

Individual Spotlight: David Morrell and Paul Mabile: Furnishing Lake City Association News: FHBA’s Paul Thompson Brings Upbeat Message to CCBA Industry News: Don’t Overlook FHA as a Viable Option

From the Publisher November 2008 Publisher Advantage Publishing Inc. Scott Costello 4140 NW 37th PL, Suite D Gainesville, FL 32606 Gainesville: 352-372-5854 Ocala: 352-368-1707 Scott@advantagepublishingInc.com www.advantagepublishinginc.com

Advertising Sales Manager Kyle Lindsey Kyle@advantagepublishinginc.com Advertising Sales Andrea Huegel Andrea@advantagepublishinginc.com Managing Editor Holly Christensen Holly@advantagepublishinginc.com Editor David Greenberg David@advantagepublishinginc.com Public Relations Erica Blake Erica@advantagepublishinginc.com Staff Writers Attiyya Anthony Kelly Bornemann Anjalee Khemlani Ju’lia Samuels Copy Editor Marcia Greenberg Design Kevin Sheehan

As you can see by the cover and the name, we are now Building Trends. After five years, we have separated from the team at Building Edge to have the opportunity to create a totally independent publication for the residential building industry in North Central Florida. As I have said and written many times in the past, this magazine is for and about you. We have asked, and will continue to ask about how to make this magazine more of what you want and need. So the best thing about this change is that if you make a suggestion that makes sense for us as a community and industry, we can implement it without any thought or concern about what another authority somewhere else might think of it. We also now have complete control to make sure that we can deliver what you expect. We expect a smooth transition and look forward to your feedback.

As you read this, we are well into the Parade of Homes™ season. It is one of my favorite times of year because we get to see all the fine work being produced by some of the great builders in North Central Florida.

We wrote an advance article about the parades in Marion, Alachua and Columbia counties last month, and, as always, we will cover the parades, and report back to you about all the great homes and innovations and the level of traffic and activity.

All signs point to increased activity, in part because of some of the actions the federal government has taken in the last few months to help the building industry. One of the builders who understands the significance of the federal actions is Isaac Bratkovich. So the timing of this cover story could not be better. We are pleased to be able to again feature Lake City’s Isaac Construction on the cover. He is still a great custom builder. In this article, he talks about some of the things he is doing to turn the government’s actions into benefits for his homebuyers. That makes sense because it has always been Isaac’s philosophy to provide quality and value.

We also include some Association News articles about ongoing activities at our local builder associations, as well as Industry News pieces with information that could be vital to you. And our Individual Spotlight this month takes a slightly different turn, as we feature two people – relatives no less – who by working together, provide a great service to builders and homeowners in the Lake City area. Brothers-inlaw David Morrell and Paul Mabile run the show at Morell’s Home Furnishings and Morrell’s Cabinetry & Flooring. They have seen their community grow and change over the last 25 years, and they and their businesses have done the same.

Next issue, we are back in Ocala, as we feature third-generation builder Chris Luetgert and Luetgert Development Corporation.

We are in the process of reserving covers and spotlights for 2009. If you would like to nominate someone to be featured, please contact me today.

Until Next Month,

Ad Design Kristine Bowser Photographer David Johnston

Scott Costello Although every precaution is taken to ensure accuracy of published materials, Building Trends cannot be held responsible for opinions expressed or facts supplied by its authors.

Copyright 2008, Building Trends Magazine. All rights reserved. Reproduction in whole or in part without written permission is prohibited.

BUILDING trends

Your Local Resource for Construction News

November 2008

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Contents Publisher’s Column

3

Industry News

6

Industry News

7

Cover Story

8

Indianapolis Maintains Title of Nation’s Most Affordable Housing Market for 12th Consecutive Quarter

Don’t Overlook FHA as a Viable Option

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Isaac Construction: It’s a Great Time to Build

By David Greenberg Photography by David Johnston

Association News

15

Individual Spotlight

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In the News

18

Association News

20

Jake’s Corner

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Realtor Perspective

22

Association News

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Government News

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FHBA’s Paul Thompson Brings Upbeat Message to CCBA

David Morrell and Paul Mabile: Furnishing Lake City

Gainesville Builder Barry Bullard to Chair Gateway Bank Advisory Board Bryan Zecher Named Arthur Rutenberg Homes Franchisee

BANCF Holds Member Mixer and Silent Auction

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“How Do I Make This Buyer’s Market Work in My Favor?”

MCBIA Casino Night: A Respite from the Storm

Alachua County Increases Impact Fees – Again

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Industry News

Indianapolis Maintains Title of Nation’s Most Affordable Housing Market for 12th Consecutive Quarter

Indianapolis maintained its standing as the most affordable major U.S. housing market for the 12th consecutive time in the second quarter of 2008, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).

Nationwide, homes became more affordable for the third consecutive quarter, with the HOI rising to and almost matching the highest level since the second quarter of 2004.

“Today’s HOI reading shows that 55 percent of all new and existing homes that were sold during the second quarter were affordable to families earning the national median income of $61,500,” said NAHB President Sandy Dunn, a builder from Point Pleasant, WV. “Several factors combined to increase housing affordability nationwide. There was a marginal rise in mortgage rates, which still remain near the historically low levels of a few years ago, family income nationwide held steady and lower house prices.”

The NAHB/Wells Fargo HOI is a measure of the percentage of homes sold in a given area that are affordable to families earning that area’s median income during a specific quarter. Prices of new and existing homes sold are collected from actual court records by First American Real Estate Solutions, a marketing company. Mortgage financing conditions incorporate interest rates on fixed- and adjustable-rate loans reported by the Federal Housing Finance Board.

In Indianapolis, 91.6 percent of homes sold in the second quarter were affordable to families earning the area’s median household income of $65,100. Also near the top of the list for affordable major metros this time around were Youngstown-Warren-Boardman, OH-PA.; Detroit-Livonia-Dearborn, MI.; Warren-Troy-Farmington Hills, MI.; and Grand Rapids, WY in that order.

One smaller metro market (fewer than 500,000 people) outranked all others in terms of housing affordability during the second quarter of 2008. This was CantonMassillon, OH, where 96.7 percent of all homes sold in the period were affordable to families earning that area’s median household income of $54,600.

Florida runs the gamut in terms of affordability. For the most part, the state’s 6

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Restrictive building regulations in Gainesville make affordable housing projects, like this one in Portland, OR, difficult to build. As a result, Gainesville ranks poorly among comparable Florida communities in terms of affordable housing.

attractive coastal areas are the least affordable in terms of national ranking, with some exceptions. The Gainesville market’s rank was 115 based on median income, compared to a 97 for Ocala. The most affordable area of the state is Pensacola, followed by Tallahassee, the MelbourneTitusville area and Jacksonville. The least affordable area is Miami, coming in with a 218 national ranking, followed by the Naples-Marco Island (194).

Gainesville business leaders have long argued that restrictive building codes make the area far less affordable than comparable communities. It would appear that the NAHB data justifies those concerns.

New York-White Plains-Wayne, NY-NJ was the nation’s least affordable major housing market. This was the first time a major housing market outside of California was designated the least affordable since the HOI’s inception in 1991. In the New York market, 11.4 percent of new and existBUILDING EDGE Magazine

ing homes sold during the second quarter were affordable to those earning the area’s median family income of $63,000.

Other major metros at the bottom of the housing affordability chart included San Francisco-San Mateo-Redwood City, CA.; Los Angeles-Long Beach-Glendale, CA, Miami-Miami Beach-Kendall, FL.; and Nassau-Suffolk, NY, in that order.

Among metro areas smaller than 500,000 people, the five markets at the bottom of the affordability chart were San Luis Obispo-Paso Robles, CA; Ocean City, NJ; Napa, CA; Santa Cruz-Watsonville, CA; and Salinas, CA, respectively.

Please visit www.nahb.org/hoi for tables, historic data and details.

www.BuildingTrendsMagazine.com

Industry News

Don’t Overlook FHA as a Viable Option

By Suzanne C. Palkovic

In today’s economy, diversity in mortgage options is important. Since conventional mortgages have become much more difficult to obtain because of the number of sub-prime mortgages written over recent years, FHA financing is rapidly becoming the “financing of choice.” It recently became more attractive when HUD raised the mortgage limits. Effective March 2008, temporary FHA loan limits can reach as high as $729,750 (maximum amounts vary by area). Compare that new maximum to the maximum from 10 years ago which was a mere $197,621.

Savvy builders everywhere are giving FHA buyers another look. More and more mortgage lenders and real estate professionals are encouraging their builder clients to offer FHA as a financing option with the sale of their homes. More prospective homebuyers will qualify which potentially means more homes will be sold.

That is music to everyone’s ears in today’s economy. Unfortunately, what many of these professionals, including the builders, do not realize is, if the builder and construction plans were not pre-approved by HUD, then a 10-year written, insured warranty is required

by HUD and/or the mortgage company before the home can be financed and closed with an FHA mortgage.

“Because Preferred Builders Warranty (PBW ) and its 10-year warranty are HUDaccepted, we are receiving an influx of calls inquiring about a 10-year warranty for upcoming closings,” says PBW Vice President of Sales, Lynn Nelson-Probst.

PBW Account Executive, David Kinney, is hearing statements such as “no inspection out of city limits,” “did not know we needed a 10-year warranty,” and “I need a warranty to go to closing.” Some have even heard, “We closed (insert date already passed), and now we found out we need a warranty.”

PBW is thrilled to accommodate and provide the warranties for these closings.

However, there are underwriting requirements that must be followed, one of which is the homes cannot be closed or occupied www.BuildingTrendsMagazine.com

prior to the builder’s approval in the PBW warranty program.

Nelson-Probst notes, “Our message is clear. If you are building homes with sales prices within FHA’s limits, which is very likely, do not overlook FHA as a viable option. Builders should not wait until an FHA buyer signs a contract on one of your homes.”

PBW has been in the warranty industry since 1981. Its knowledge and experience can help building professionals move to closings swiftly, while also adding value to properties with the inclusion of a 10-year warranty. Regardless of financing, this gives the buyer confidence in the new home’s integrity.

Preferred Builders Warranty offers 10-year warranties exclusively to Florida builders. Addressing marketing concerns specific to the Sunshine State, PBW tailors the 10-year warranty to meet those unique needs. PBW covers structural defects for all 10 years, a major perk to builders in this litigious society. In 2000, PBW became an affiliate of Residential Warranty Company, LLC (RWC), which enabled PBW to offer more diversity in its

program offerings to members. The result of this alliance is a warranty program with more options for coverage, more benefits and more services than any other warranty provider in the country.

For more information about PBW or RWC, please call 1-800-247-1812 ext. 2149 or visit the website at www.rwcwarranty.com.

Suzanne C. Palkovic is vice president of marketing for Preferred Builders Warranty.

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Cover Story

Isaac

This beautiful Isaac Construction estate home features a Mediterranean look enhanced by stucco and stone details.

It is a great time to build a home. That’s more than a marketing slogan.

At least one local builder – Isaac Bratkovich of Isaac Constriction in Lake City 8

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believes that, with everything that is currently in place in the building industry, he has never seen a better time to build.

Bratkovich started Isaac Construction,

LLC in 2000, after working with other builders when he finished high school in 1996.

He has quickly earned a reputation as one of the top custom-home builders in Lake www.BuildingTrendsMagazine.com

Construction It’s a Great Time to Build

by David Greenberg photography by David Johnston

City and the surrounding area. As a result of his experience and tenure, Bratkovich has seen some of the dramatic changes that have occurred in the industry in the last decade. www.BuildingTrendsMagazine.com

“Despite what people read and see on the news, it is not all doom and gloom,” said Bratkovich. “There continues to be steady work.”

A few years ago, during the building boom, the market favored the builders, he says. While home values were high, builders had enough work to pick and choose.

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The fine details in this dining room include the oval recessed ceiling, lighting, and a bank of windows overlooking the pool.

“Before, people were buying during the frenzy of 2005,” he said. “There was a lot of buying pressure, and that created an advantage for builders. Now we have come full circle, and we are coming back to affordability.”

As a result, market conditions have changed some of that, and the reality is that things now favor the homebuyer, he added.

“That’s the underlying theme here,” said Bratkovich. “That’s why this is a great time to be thinking about a home, addition or other new project. We have seen home prices stabilize, and in some places, come down from the numbers of a few years ago.

We have also seen the cost of subcontractor 10

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labor stabilize. Additionally, interest rates remain very good, and that might change in the near future.”

Adapting to Changes

But, says Bratkovich, builders who build a good product, and are adapting to the changes, are still getting work.

And, he says, they should be taking advantage of what Congress and President Bush have done.

The Housing and Economic Recovery Act of 2008 includes some significant aspects designed to stimulate the housing industry.

One of the most significant features of the

legislation is the first-time homebuyer tax credit, designed to stimulate buying, reduce supply and stabilize prices.

Also, the legislation enables the FHA to respond with greater flexibility to the needs of borrowers, and play a greater role in the mortgage market. The FHA also now has the ability to insure up to $300 billion of mortgages to refinance loans in danger of foreclosure.

Further, the law reforms the regulation of Fannie Mae and Freddie Mac, bolstering both by permanently increasing the conforming loan limit to help buyers in highcost markets, and by temporarily expanding its line of credit to them. The law will permawww.BuildingTrendsMagazine.com

The beauty of this home comes from the creative use of stone work, along with the architectural design of the roof lines.

With its custom-built cabinets and solid-surface countertops, this is a kitchen with great functionality. It also looks out onto the dining room and pool. nently increase the cap on the size of mortgages guaranteed by Fannie and Freddie to a maximum of $625,500 from $417,000. The U.S. Treasury can purchase an equity stake in the companies through the end of 2009. It also puts in place a stronger regulator for the two government-sponsored enterprises.

Finally, the law creates a mortgage-revenue bond program and a low-income housing tax credit.

“Add this legislation to what is already happening, and I am looking forward to the future of the housing market,” said Bratkovich.

Bratkovich is working with local banks to produce great packages for homebuyers www.BuildingTrendsMagazine.com

that will take into consideration what is available with the legislation.

“If people are looking for a new home, this will be hard to pass up,” he said. “It is almost too good to be true. This is really an opportunity for builders. There are sales features that builders all across the country should be using.

I’m using it as a sales tool to get people in the door. I see it as an incredible incentive for me as a builder. But it is a tremendous benefit for the homebuyer. People can get much more for their money per square foot. It has not been this way for a long time. If I was a buyer, with this legislation, home prices and interest rates, I would be buying right now. To pass this by would be somewhat foolish.”

Working with Homebuyers

And Bratkovich believes that like him, other builders will be ready to work with homebuyers.

“I’m excited about it,” he said. “I can help my homebuyers design some great, state-of-the-art homes.”

But he says that one thing should not change – and it will not at Isaac Construction.

“Quality is still what drives us at Isaac Construction,” said Bratkovich. “That will not change. Building a quality product is our top priority in every home – whether it is a first-time, starter home or that dream home.

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Even in a small kitchen, the layout is key to a highly functional kitchen.

No matter the size, we build every home the same way.”

That’s a philosophy Bratkovich learned from his father, and later continued as he worked as a framer for other builders before starting Isaac Construction.

“I spent many years out in the field – learning the trade,” he said. “I have experience with the entire process – from the foundation and frame, to construction, punch out and warranty. Because I still stay involved every step of the way, I know when a home is built correctly. Since I am there for the entire process, I know in the end that I have built a quality home.”

Today, Isaac Construction can be working on as many as 20 or 30 homes at one time. While project managers have taken some of the workload from Bratkovich, he still has his hand involved in every step.

Bratkovich is personally involved with every customer on estimation, design, preliminary selections and every step prior to permitting. Then the project managers take over, but Bratkovich still stays up to speed on every home.

“If there are any concerns, I am involved immediately,” he said. “Because I am kept informed, and I visit all the sites on a regular basis, I can step in, and resolve any issues quickly.”

But in terms of day-to-day activities it is the project managers, who have been 12

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trained by Bratkovich, who run the operation at each site.

Bratkovich brings in the punch-list crew prior to completion of the home.

Generally, a few weeks before the home is done, that crew starts to go over things with the homeowner. By doing it this way most things can be fixed before completion of the home. Once that’s done, Bratkovich finishes the job.

At the Start and Finish

“When the homeowner is in the home and satisfied, I come out with a gift package and a survey,” he said. “It is important for me to know what worked, where there were problems, and how we can improve. No matter how busy I get, this makes sure that I am there at the beginning and at the end.”

It may seem complicated to do things that way, but Bratkovich says he knows no better way to build a home for someone.

“People trust us to do the right thing,” he said. “This is a tremendous investment.

It’s the way that I have been taught.”

Trust and quality have been the trademarks of Isaac Construction from the very first home, which he built for Danny and Suzanne Edwards in June 2000.

“We were moving from a large home in South Florida,” said Suzanne Edwards. “We were looking for someone who would pro-

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vide quality. We wanted someone who would listen to what we wanted and get it the first time. We needed someone who was going to listen. We knew Isaac had built before with other builders, and this would be the first one under his own company. We talked to him a lot, and found that he had good quality people working with him. I noticed one interesting thing after they started working for us.”

“When we had issues come up, we would get Isaac’s attention, and explain the problem,” she said. “He would make it the way we wanted it. Having experienced hurricanes, we wanted to build a www.BuildingTrendsMagazine.com

The disappearing doors allow traffic to flow from the family room to the patio and pool deck – perfect for entertaining.

home that met those standards. Once we explained what we wanted and why, Isaac built what we wanted and we paid for it.”

She added that it was also pleasing to see Bratkovich and his crew on the job early in the morning and still on the job late at night.

“I remember the roofer being on the job in November and December,” she said. “I recall it was late in the evening, and it was cold, maybe in the 30s. But they were out there getting the job done.

It was certainly unique to find a builder that would take such good care of us. We wanted something that was going to be our retirement home. We got it, and now www.BuildingTrendsMagazine.com

we don’t plan on moving again. We would recommend Isaac to anyone, and we have on several occasions.”

The same level of service is offered whether it is new home construction or a remodel, which is what Isaac Construction did for Richard and LeAnne Mills.

The project, an $80,000 job, was of significant size.

“We tried to hire three different contractors who never showed up,” said LeAnne Mills, who is a Lake City Realtor. “We saw an ad for Isaac. We called him, and he came out that afternoon. That evening, we agreed on a price for what we wanted, and we hired him. He was there the next morning at 8

a.m. I can tell you as a Realtor, that getting them to show up is half the battle. But Isaac did more than just show up. He was always on top of the job; making sure it was being done the way we wanted it.”

One of the differences between remodeling and building new is that the contractor is working in your home. But that was never a problem, said Mills.

“His guys were in and out of my home for three months on a daily basis,” she said. “We knew right away that it was OK to have them around our children. The other nice thing is that they cleaned up after themselves. In the end, Isaac wanted to know that I was completely satisfied. I’ve built new homes before,

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and was never able to get the builder out at the end. I was very impressed with the quality of the work. We were considering building new before we did the work. His remodeling work was so good, that we stopped considering a new home. We didn’t have to build. In my opinion, he is the best builder in the area.

I ended up being a Realtor and now a broker.

I have customers ask me for builders a lot, and I always promote him.”

A Great Reputation

Building with quality has earned Bratkovich a great reputation, and, as a result, his business has grown quickly. He started in 2000 from a home office with two employees, a van and his tools.

He’s moved twice from that home office, and today Isaac Construction operates out of a state-of-the-art showroom and office, and has a team of subcontractors that are as serious about their craft and as dedicated to building a quality home as Bratkovich.

The facility includes offices for Bratkovich and his staff and a showroom that really displays the work done by the subcontractors. The showroom allows homebuyers to put their hands on things, and get a real picture of what it will be like in their home.

That includes everything from plumbing, to electrical, to doors and windows, to the roof.

“Now when I bring a customer here for the first time, they can look around, and get some ideas,” he said. “They see everything first-hand, right here in the showroom. We can work on preliminary plans, and create a budget that works for them. That’s why this showroom is here, and that’s why it works. We are creating a one-stop shop.”

That creates a sense of loyalty between Bratkovich and his subcontractors.

“One of the most important things I did as I grew was to develop relationships with a core group of subcontractors,” he said. “I certainly wouldn’t have what I

have today without my subs. They do things the same way I do. Many of my subs are the same people I have dealt with from the beginning.”

One of those subcontractors is Mike Conner of Conner Electric. For Conner, working with Bratkovich makes perfect sense.

“We were actually referred to him by a plumbing contractor he still uses too,” said Conner. “The way Isaac builds, that was our philosophy before we ever met him. So it is nice that our business models fit each other.

It has been worthwhile and productive to work with Isaac. I look to be with him for many years to come.”

So with quality as the theme, and a very positive view about the future of the industry, Bratkovich will continue to do what he has been doing so successfully since 2000 – building great custom homes.

He is maintaining his focus on highend, custom homes in Columbia, Suwannee, Hamilton, Madison, Jefferson, Alachua, Gilchrist and Dixie counties.

“This can be a great time for the industry,” he said. “The time is right, and all the factors are in place. At Isaac Construction, we are ready to build that quality dream home for you.”

To learn more about Isaac Construction, LLC., go online to www.isaacconstruction. com, or call (386) 719-7143.

The design of this dining room features several architectural details, including custom lighting, soffits, chair rail and columns.

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www.BuildingTrendsMagazine.com

Association News

FHBA’s Paul Thompson Brings Upbeat Message to CCBA

By David Greenberg

If there’s a message in the homebuilding industry these days, it is that things are getting better, and that’s the message that Paul Thompson brought to the Columbia County Builders Association (CCBA) during one its recent luncheons.

Thompson, the Florida Home Builders Association (FHBA) senior vice president, stated up front that he was bringing a positive message.

“When people ask you how your business is going,” he said, “you should tell them it is incredible. Just don’t say if it is incredibly good or incredibly bad.”

The industry still has challenges before it, said Thompson, but he expressed clear optimism about the future.

“We still face the problem of excess inventory and the subprime mortgage crisis,” he said. “But we cannot afford to ignore the first-time homebuyer. Right now, there is a crisis of confidence out there among homebuyers. The media has played a large role in that. They continue to perpetuate a negative message.”

But, he said, the National Association of Home Builders (NAHB), helped get the national housing-stimulus bill through Congress.

“That was the start,” said Thompson.

“A lot more needs to be done. We need to make sure that the banks do not get too tight with lending. That would seriously hurt the housing industry long term.

We need Fannie Mae and Freddie Mac to maintain their strength.”

He says things have changed, and as an industry, building has to change with it.

“We’re in a new reality,” said Thompson.

“It can no longer be business as usual. We need new ideas and a redefined game plan.

Business may not be where we want it right now, but it is going to get better.”

Thompson also briefed the CCBA members in attendance about other issues being monitored by FHBA. That included the recent successful effort to create opportunities statewide for communities to take advantage of affordable housing funds if they lower impact fees.

www.BuildingTrendsMagazine.com

He indicated that another area that still needs work is the effort to deal with property insurance and property taxes.

“Governor Crist started on that,” he said, “but we still have problems in those areas.”

Thompson then focused on all the current green-building initiatives, and why it was so important for homebuilders to participate in that area.

“There is a good reason for homebuilders to seek professional certification in green building,” he said. “There are always trends in our industry, and that is the current one. But in this case it is happening because the homeowners want it.

As homebuilders, you need to do whatever it takes to be more competitive, and this is something that does that.”

Thompson closed his remarks with some brief comments about the needs for more skilled workers in construction.

“A lot of young people are not opting into the construction trade,” he said. “That is something we have to change.”

Finally, he talked about the benefits of membership in the association.

FHBA’s Paul Thompson gestures while speaking to CCBA members at a recent luncheon in Lake City.

“Our association makes us unique,” he said. “We come together for the common good of our members. You do it here locally, we do it at the state, and it is done nationally. We can’t solve our industry’s problems individually, but we can together. And in dealing with the problems we are going through now, it is more than saving our industry. When housing comes back, our economy will come back with it.”

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Individual Spotlight

David Morrell and Paul Mabile: Furnishing Lake City

By David Greenberg

David Morrell and Paul Mabile have

Morrell’s started 44 years ago by seen Lake City change a lot over the Wayne Morrell, David’s father. Initially, it years. And the two men have an excel- was a backyard business and a sideline lent vantage point from which to observe for the elder Morrell. He started out buythe changes. Morrell and Mabile operate ing salvage from the mobile-home plants, Morrell’s Home Furnishings and Morrell’s and selling it.

Cabinetry & Flooring.

“The business grew,” said David Morrell.

“Lake City has changed a lot in the “My parents had four children – me and last 25 years,” said Mabile, Morrell’s gen- three sisters. At some point, they were all eral manager. “It used to be a much more actively involved. But they have all gone off rural community. It has grown a lot, and I to raise families. Paul married my youngest think the change has been a positive one. sister, Rhonda.”

Today, it is a good-sized community in

David Morrell has been with the busiwhich to live.” ness for 29 years, and was involved in the

A growing community means more transition about 25 years ago from salvage homes needing more furniture. Morrell’s, a to new home furnishings. Mabile joined 14 member of the Columbia County Builders years ago.

Association (CCBA), works closely with

Today, Morrell’s features cabinetry from homebuilders and homeowners in order KraftMaid, Marsh, Kemper and Kitchen to meet all their needs when it comes to Compact, as well as flooring, including carfurnishings, flooring and cabinetry. pet, wood, laminate, vinyl, ceramic tile and

“Our business has adapted to the more. They can furnish any home – from a changes in the community,” said Morrell, starter to high-end, luxury homes. who supervises the warehouse operation

It is often suggested that it is hard and deliveries. “For one thing, we have for family members to work together, but reduced stock. We used to keep a tremen- Morrell and Mabile say that is not the case dous amount of inventory on hand. But with them. today consumers are a lot choosier, and

“That’s why we keep our offices about they have so many options. They may want 200 yards apart,” Mabile said with a laugh. something that you don’t have in stock. So “We really work smoothly together. We we do a lot of special-order work to get exactly what they need.”

Being able to change and adapt is critical, said Mabile.

“There used to be only two or three floor-covering players here,” he said. “Now, there are 10 or 12. That’s stiff competition.

In order to meet that challenge, we aligned ourselves with Floors To Go, a buying group that enables us to be much more competitive in our pricing.”

each have our responsibilities, and we work together successfully to achieve the same goal – keeping the customer satisfied. We strive to provide excellent services. Our goal is to offer a valuable product at fair prices.”

In order to achieve those goals, especially with builders and homebuyers, Morrell’s has brought on Todd Morgan, to concentrate on client relations in the cabinetry and flooring division.

“Todd’s focus is on the building industry,” said Mabile. “He works directly with the people building homes and the contractors who are working with them.

His addition to the staff enables us to keep that relationship going in a positive direction. We’re very excited about him coming on. It enables us to be better at what we are doing.”

Both Morrell and Mabile say in their type of business there is little time for things outside of work. But in both cases that time is spent with family, church and hunting. Both of them enjoy deer hunting, which they say they get to do as much as possible. They also fish with Morrell’s father – an avid saltwater fisherman.

Morrell has been married 22 years to his wife, Vicki, and they have two daughters.

The showroom at Morrell’s

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David Morrell (left) and Paul Mabile

“One of my daughters is involved in rodeo, and the other loves to hunt,” he said.

“So for me, it is either hunting or rodeo and sometimes both. There are times my wife will go in one direction, and I go in the other direction.”

Morrell’s has also participated in Habitat for Humanity by providing cabinetry and flooring for homes.

And although Lake City has grown, Morrell says it is critical to keep in the forefront the philosophy taught by his parents.

“They stressed this in the beginning,” he said. “My daddy had a vision of providing good product and service for the customer.

As a result, whenever you see the Morrell name, you know we are going to take care of you. We sell to our family members, neigh-

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bors and friends, and have been doing it for three generations. We see them at church and in the grocery store. He instilled that in us, and we feel like it has paid off.”

To learn more about the products and services offered at Morrell’s, call (386) 7523910 or (800) 597-3526, visit at 461 SW Deputy J Davis Lane in Lake City, or go online to www.morrells.com.

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In the News

Gainesville Builder Barry Bullard to Chair Gateway Bank Advisory Board

Gainesville builder Barry Bullard is becoming chairman of the Advisory Board of Directors of Gateway Bank in Gainesville. Here, Bullard (second from right) is pictured with the bank’s Laude Arnaldi (left), Danny Gilliland and Meredith Kendrick.

Long-time Gainesville builder Barry Bullard is slated to become chairman of the Advisory Board of Directors of Gateway Bank, which is located in north-

west Gainesville. In addition, Bullard will also serve on the Fiduciary Board of Gateway Bank of Central Florida, pending state approval.

Bullard has been building custom homes in the Gainesville area since 1979, and has earned a reputation as one of the area’s premier builders. In addition to his building experience, Bullard has served in numerous leadership positions on community bank boards in the Gainesville area.

Gateway Bank, dedicated to local ownership and decision making, opened an office in the Metro Corp Center in northwest Gainesville earlier this year, and is planning an 8,000-square-foot building to be built in the same area. The bank is also completing construction on its second location in Town Center Crossing in Alachua. Bank officials hope to have that location open within the next 90 days.

The bank officers include Danny Gilliland, who serves as the market president, Laude Arnaldi, senior vice president of lending and Christopher Priddy, vice president in charge of credit administration. Meredith Kendrick has also joined the team, and will serve as the branch manager in Alachua. The Gainesville location is the fourth opened by Gateway Holding Co., since it began operations two years ago.

The first bank opened in Daytona Beach, followed by an Ocala bank last May and one in Sarasota in March of this year.

Gateway Bank of Central Florida is a state-chartered, FDIC bank, which is part of Gateway Financial Holdings of Florida, Inc. It maintains more than $70 million in capital at the holding company level.

Its Ocala operation asset growth ranked it among the top 10 out of the 140 U.S. banks that started in 2007.

To learn more about the financial products and services being offered by Gateway Bank, call Danny Gilliland or Laude Arnaldi at (352) 416-0330.

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Bryan Zecher Homes Named Arthur Rutenberg Homes Franchisee

Bryan Zecher Homes, Inc. has been named an Arthur Rutenberg Homes franchisee in The Oaks of Lake City and on customer-owned property throughout Baker and Suwannee counties.

Zecher described the announcement as a great opportunity.

“As a new member of Arthur Rutenberg Homes’ esteemed family of custom home Bryan Zecher builders, we at Bryan Zecher Homes, Inc. believe the best is yet to come,” he said. “We will build Arthur Rutenberg’s award-winning designs, extending to every future homeowner the same core values that have made the Arthur Rutenberg name legendary since 1953.”

Having the support of the largest franchisor of homebuilding companies in the nation means customers get the best of both worlds. They enjoy Arthur Rutenberg Homes’ history and experience, as well as the personal, friendly service of a local, custom homebuilder they’ve known for years.

The Oaks is an O’Connor Signature equestrian community located just outside of Lake City at 211 S.W. Theodore O’Connor Circle. Designed completely for horse and nature lovers by Equestrian Services, LLC, it is inspired and endorsed by renowned equestrians David and Karen O’Connor, both gold medal Olympians, and developed by local resident and developer Bradley N. Missy Zecher Dicks and Dicks Realty.

Each of the 237 lots is designed so that the owner can enjoy unobstructed views and access to at least one of the many top-of-the-line equestrian amenities within the community. There are also 346 acres of common area and a 15-mile trail system.

For more information, contact Bryan Zecher Homes, Inc., at (386) 752-6099. To learn more about Arthur Rutenberg Homes, visit www.ArthurRutenbergHomes.com, or call 1-800 ARHOMES.

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Association News

BANCF Holds Member Mixer and Silent Auction

Even though Tropical Storm Fay couldn’t make up its mind on what to do, the Builders Association of North Central Florida (BANCF) decided to go ahead with the member mixer/silent auction and it, rather than the storm, was a big hit. Despite a gloomy forecast, this year’s BANCF member mixer and silent auction had a great turnout with more than 250 members attending.

BANCF members and their guests gathered at the offices of C. Perry Construction and PPI Construction Management for an evening of great opportunities – the opportunity to get together with old friends and make new contacts, munch on fantastic food, dance to the tunes of the awesome “Builder” Band, and bid on some fantastic items during the silent auction.

Silent auction committee members worked very hard for the past three months to bring in more than 130 items for the event.

Items were mostly donated from BANCF members and area businesses, and ranged from GRU-513 7.5x5.qxd 7/27/06 5:26 PM dinners, specialty baskets, to home accessories and fine jewelry and art. (Advantage

Attendees were entertained by the Builder Band, featuring (front, left to right) Brian Leslie and longtime member and local attorney Bob Butts.

Publishing, Inc. generously donated a halfPage 1 page ad). Proceeds from the sale of auction items will help fund BANCF’s educational

and training programs that include scholarships for building construction students at UF and SFC, apprenticeship training, educa-

You cook. You wash. You dry. You save.

Receive rebates up to $750 and make your energy bills smaller by requesting natural gas. It’s the smartest decision you can make. Natural gas has lower usage costs for household appliances such as the water heater, stove and dryer and is also energy efficient and safe. Save more money for your home. To request natural gas or for current pricing information, call GRU Gas Marketing at (352) 393-1464 or visit gru.com.

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tional programs for elementary and middle school students, promotion of the dual-enrollment high school program and other activities aimed at educating students about the benefits of a career in construction. Thanks to the hard work of the committee, close to $10,000 was raised at the auction for these important programs.

Back by popular demand, the Builder Band comprised of BANCF members rocked the reception.

The event would not be possible without the help of some outstanding members. C. Perry Construction, PPI Construction Management and Scarborough Company Insurance have sponsored the event for the past six years. Special thanks to Jessica Pastore with Crime Prevention Custom Home Entertainment, who chaired the silent auction committee.

A small portion of the 250 people who attend the mixer peruse the auction items.

For more information on Member Mixers and how you can participate, please call Margie Krpan at the BANCF office at (352) 372-5649.

BANCF President Brian Leslie (left), who served as host of the mixer, examines some of the auction items with Dwaine Bush from Wells Fargo Home Mortgage.

Some of the volunteers and BANCF staff who put together the mixer pose for the camera.

Jake’s Corner

Jake Fuller appears regularly in Advantage Publishing’s magazines as our featured political cartoonist.

Originally from Lakeland, Fuller has been living in Gainesville since 1970. He is married to Laura Fuller, probably well-known to many local business leaders. They have two sons, both attending Santa Fe Community College.

His work is internationally syndicated by Artizans.com, and also appears on the websites of Jewish World Review, Irreverent View and AAEC, and in the annual publication “The Best Editorial Cartoons of the Year.”

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Realtor Perspective

“How Do I Make This Buyer’s Market Work in My Favor?”

By Thomas McIntosh

Homebuyers who educate themselves about current market conditions can find great opportunities.

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Savvy real estate investors are always busy educating themselves about the real estate market. Smart investors know there is an opportunity. “There’s blood in the streets” is always good news for someone.

In this local situation it would be overstated to use such a dramatic description of the real estate market. Clearly however, strategic thinkers could see this as a great time to improve their current housing situations.

There are two factors working in the favor of home buyers.

The first is interest rates. In Alachua County over the last few months, we’ve seen interest rates fluctuate between 5.75 percent and 6.50 percent for a 30-year fixed-rate mortgage. Historically, those are very favorable rates. Low interest rates translate into lower monthly payments for those that borrow money to buy a home, and over the long term, there is much more room for a significant rate increase than further decrease.

The second factor is the decline of home prices. In August 2007, the average price of the homes reported sold in the Gainesville MLS was $248,142. In August 2008, the average price of the homes reported sold in the Gainesville MLS was $208,953.

That indicates the average sales price is down 16 percent.

This does not mean, of course, that individual homes are worth 16 percent less today. Other factors enter into the

situation. For instance, one of the explanations is that first-time buyers now make up a larger market share and their purchases tend to be in the low to moderate range of prices. And, of course, real estate values are localized, and will vary due to factors such as neighborhood preference, school zones, the home’s amenities, etc. Still, prices have come down, there is an over-supply of inventory and the only people getting bargains are the ones who buy.

Here are two scenarios for consideration:

A hypothetical homebuyer in August 2007 contracted for the average price home and agreed to finance 90 percent of the purchase price for 30 years and pay 6.5 percent interest on the borrowed funds.

The buyer’s cash required to close is $24,814, and the buyer would be agreeing to pay $1411.58 monthly.

If that same hypothetical buyer purchased based on the 2008 average sales price and 5.75 percent interest rate, then their cash required to close would be $20,895, and they would be agreeing to pay $1097.45 monthly.

The market forces have shifted to favor a buyer. It is important to understand that you can only get these benefits if you act. At some point in time market forces will change again and we will hear people regretting they did not buy earlier.

We typically find buyers are in one of two situations. Those who must sell their current home, and those who do not have that same urgency. I encourage anyone who does not need to sell a home in order to buy one to investigate their options now. This is their market – if they act.

Someone needing to sell a home first is in a slightly more complicated position. There may be a reluctance to act because of

concerns that their current home is not worth what it once was. The typical buyer buys up in price. This generalization often applies even to those who are downsizing. If a $150,000 home has lost 10 percent of its value ($15,000), then a home that is worth $300,000 today would have previously been worth $330,000 before losing the same 10 percent of its value. By accepting a $15,000 loss on their home a savvy buyer is able to take advantage of someone else’s $30,000 loss. The person who acts in this scenario has improved their housing situation by a larger margin than was possible in years past.

If the household has stable employment and a good credit history, selling the existing house, and buying the replacement could allow someone to both increase their financial well-being and their emotional well-being.

There are two great quotes that help put these words in perspective. John D. Rockefeller once said, “Don’t be afraid to give up the good for the great.” J. Paul Getty once said, “I buy when other people are selling.”

If you wondered how to take advantage of this real estate market, I hope I’ve given you some things to consider. Consult a Realtor, and get more information for your specific situation. You may be very pleased with what you discover.

Thomas McIntosh is President of ERA Trend Realty. To learn more about the services offered by ERA Trend Realty, call (352) 225-4700 or go to www.eratrend.com.

Mortgage Rates in the Last Year

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Association News

MCBIA Casino Night: A Respite from the Storm

Members of the Marion County Building Industry Association (MCBIA) celebrated getting out after Tropical Storm Fay by gambling. But it was all in fun at the annual MCBIA Casino Night.

“The staff actually met that morning to decide whether to hold the Casino Night or not,” said Francine Johannesen, MCBIA CEO. “Everyone had been cooped up for a few days, and members could not work because of the rain. The forecast looked like it would be past us by the time we were planning to get together, so we decided to do it.”

And, she says, it was the best decision they could have made.

“People were really ready to have fun, and this was the perfect way to do it,” she said. “We’ve all be working hard. We were all able to let off a little steam for a few hours.”

Casino Night, which is always a highlight of the MCBIA calendar, was a little different this year.

“We used professional dealers and casino-night party planners,” said Johannesen.

“The dealers were dressed to the nines, and we had the whole building designed as a casino.”

Activities included six blackjack tables, craps, roulette, Texas Hold ‘em and slots.

There was even a casino showgirl present.

The evening included a silent auction with items donated by members of the community and the association. And, of course, there was the famous MCBIA horse race.

A tapas-style dinner was provided by Cabanas Catering. Live music was donated

by Color Wheel, and provided by a band called Pepper and the Salty Dogs, which included Color Wheel’s Jim Evans.

“We had about 100 people there,” said Johannesen. “It was just a great night to network, socialize and have fun.”

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The MCBIA office was the perfect place for the evening’s fun.

While people gambled, musical entertainment was provided by Pepper and the Salty Dogs.

Everyone had a great time at the MCBIA Casino Night.

(above) Judging by their smiles, it looks like these people found the right blackjack table.

Some of the attendees settled on the craps table.

Government News

Alachua County Increases Impact Fees – Again

By David Greenberg

Projects like this Walgreens would face an increase of almost $2,000 in transportation impact fees if its permits were pulled starting in January.

While other counties around the state are looking at ways to revitalize their local building industries and economy, Alachua County once again voted last month to increase transportation impact fees.

Although the increase was part of a three-year plan approved by commissioners last October, the vote was only 3-2 with two commissioners arguing that the timing of this increase is bad for the building industry, and, as a result, bad for the community’s economy.

Commissioners Lee Pinkoson and Cynthia Chestnut suggested that a delay in implementing the second phase might be healthy, given the current state of the economy.

Pinkoson and Chestnut tried to convince their colleagues to delay implementation until July of next year, to give the economy some time to recover, and suggested that if there are earlier indications of recovery, the commission could revisit the date. The 3-2 vote means the increase will begin in January.

The fees, according to a majority of the commission, are designed to have new development pay for the infrastrucLee Pinkoson ture needs it creates. The problem is that because the county has dedicated so little money to infrastructure needs during years of healthy growth, there is a deficiency. The result is traffic congestion, and voters complaining about the congestion.

To respond to those voters, the majority of the commission is trying to fix long years of inaction by punishing new development today.

With the economy the way it is, and the slowdown in the housing industry, its timing could not be worse.

Pinkoson has long been an opponent of increasing impact fees, saying that new construction has been paying its fair share for years, but the county decided to use that money in other areas, rather than earmark it for transportation infrastructure.

“This is going to put another hurdle in front of anyone who wants to stimulate business,” he said before voting against the measure.

When the impact fees were raised last year, Chestnut, was a strong supporter of that action. In fact, she opposed the recommendation that was approved to phase in the fees over three years.

Instead, she wanted the entire fee proposed by the county staffers to be implemented immediately.

The current transportation impact fee for residential property is $1,399 per 1,000 square feet, and will increase $337 to $1,736. Fees are discounted in traditional neighborhood development.

But on the commercial side, where construction has been a little healthier, some of the increases are bound to have a negative effect.

For example, the fee on a large-scale retail discount store will rise $5,954, from $9,949 to $15,903. A financial institution with a drivethru window will see its fees rise from $5,761 to $9,585, an increase of $3,824. A restaurant with a drive-thru will see similar dramatic increase, from $8,397 to $12,845, an increase of $4,448.

Don’t expect any new movie theaters to be built. The increase in impact fees for them is almost doubled, going from $5,216 to $9,954, a jump of $4,738 per screen. And it is probably good there is no big demand right now for new golf courses. The increase there is $4,480 per hole, going from $5,100 to $9,580.

The most interesting aspect of these continued increases is that the majority of the Alachua County Commission is actually in the minority. That is when it comes to looking what their colleagues all over the state are doing.

First of all, in many other counties, commissioners are reaching out to the business community, and working together. That is because officials in other counties recognize that a healthy business community means a strong economy. But here, the majority of the commission appears to be doing whatever it can to stifle growth. The result is fewer jobs and less revenue.

New residential construction will face an increase in impact fees of $337 per 1,000 square feet starting in January.

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4140 NW 37th PL Suite D Gainesville, FL 32606 Gainesville: 352-372-5854 Ocala: 352-368-1707 Scott@AdvantagePublishingInc.com www.advantagepublishinginc.com

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