T h e Ti d e w a t e r
The official magazine of Tidewater Builders Association
SOLD!
September/October 2009
Charity House sells during open house
TMHC honors its winners
Homearama Issue
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The Tidewater
Vol. 56, Number 7 The mission of Tidewater Builders Association is to improve the climate for affordable housing; promote the growth and development of the shelter industry; promote excellence and professionalism among members through education and networking opportunities; and support and enhance the community through charitable projects. OFFICERS: Pete A. Kotarides, president; William H. Halprin, vice president; James E. Jackson, associate vice president; Charles J. Miller II, treasurer; S.L. “Sam” Cohen, secretary; Steven E. Lawson, appointee; Edward R. Sadler, immediate past president BUILDER DIRECTORS: Richard L. “Tuck” Bowie, Scott G. Brooker, Christopher J. Ettel, Dennis M. Graf, Pete O. Kotarides, Steven E. Lawson, Lucky C. Peterson, Stephen B. Quick IV ASSOCIATE DIRECTORS: G. Robert Aston Jr., J. Gregory Dodd, Thomas W. Dye, Scott M. Gandy, Brenda K. Reid, Samuel G. Scott, H. Mac Weaver II, Edward O. Yoder DIRECTORS EMERITI: Edward P. Brogan, William J. Fanney, Richard D. Guy, Doyle E. Hull, Frederick J. Napolitano, Richard E. Olivieri, John H. Peterson Jr., The Honorable Owen B. Pickett, Julian Rashkind, Stanley Waranch, Howard M. Weisberg, Wendell A. White
pages 7-13
Features 4
Editor ......................................................Sara Steil
Can you hear us now? TBA members are working hard to ensure the building industry is heard on issues affecting the business.
CHIEF EXECUTIVE OFFICER: Channing A. Pfeiffer Managing editor.............................. Mary Prier, APR
About 1,200-plus visitors ascended on Culpepper Landing, the site of Homearama, on Aug. 22 and 23 for a sneak peek at the showcase homes under construction. The event garnered leads for the builders, as well as an increase in traffic to Culpepper Landing. For more Homearama coverage, please see pages 7-13.
7-13 Homearama heads back to Chesapeake Everything you need to know about Homearama 2009, from the Preview Party, showcase homes, Charity House and more.
Advertising sales .................................... Kim Powers Leigh Ann Sirmans Production coordinator ....................... Stella Council Adviser ........................................... Sandra Amidon
18-21 TMHC gets a roaring reception
Graphic Artist ................................... Diane Trumbull
Tidewater Multifamily Housing Council’s annual banquet goes under the big top to honor this year’s top performers.
Copyright: 2009; all rights reserved. No permission to reprint unless expressly given by Tidewater Builders Association. The Tidewater Builder is published for all TBA member firms through the $15 subscription price, which is included in the annual membership fee. Opinions expressed by contributing columnist are not necessarily those of this publication.
The Tidewater Builder is published monthly, January through December, by Tidewater Builders Association, located at 2117 Smith Ave., Chesapeake, VA 23320. Editorial deadline is 5 p.m. on the 1st of the month preceding publication. Advertising deadline for copy and insertion order is p.m. on the 10th and for camera-ready ads, 5 p.m. on the 15th of the month preceding publication. All advertising is subject to current rates, copies of which can be obtained from the Special Events/Membership/Marketing Division, 420-2434. The magazine reserves the right to determine the suitability of any advertising or editorial copy, and all real estate advertising is subject to the Federal Fair Housing Act of 1968, which makes it illegal to advertise any preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin, or an intention to make any such preference, limitation or discrimination.
Departments 2
President’s Pen
22
Counsel’s Insights
5
Headliners
24
Shop Talk
15
Shades of Green
26, 27 Membership Update
17
Builder Services Success Story
28
Advertisers’ Index Events Calendar
About the cover: Among the visitors to the Homearama preview open house were Jim and Valerie Harvey of Chesapeake. The couple purchased the Homearama Charity House from builder Herb Watson, far right. The proceeds will benefit The Children’s Hospital of The King’s Daughters. SEPTEMBER/OCTOBER 2009
1
President’s Pen
Is it time to get rid of that “old debt”? Free legal consultations for TBA builders
W
e’ve heard a lot of talk about helping homeowners whose homes are now worth less than what they owe on them. The federal government has even gotten involved with encouraging lenders to work out these loans with buyers. What we have NOT heard is much talk about how to help builders who purchased lots and/or financed new home construction that is now worth less than their loans. Many of them may also still be indebted to subcontractors and suppliers who helped to build these inventory homes. As builders, we are passionate about our products, our craftsmanship, our customer service and our reputation. But when it comes to solving business problems created by the economy, some of us need help to see the situation clearly. That’s where TBA’s general counsel, Grig Scifres, is stepping in. He has offered to meet individually with interested builders to discuss strategies to pursue — and pitfalls to avoid — when seeking to restructure bank or vendor indebtedness. And he has offered to provide this service for free to TBA builder members. Grig has handled workouts, debt restructures and business bankruptcy matters for more than 25 years, including several previous economic downturns. As co-chair of the financial services team at Williams Mullen law firm in Virginia Beach, Grig focuses his practice primarily on financing, creditors’ rights, commercial and real estate law. He has been recognized by Best Lawyers in America for Banking, Virginia Super Lawyers for Banking and Virginia Legal Elite for Bankruptcy/Creditors Rights. He cares about the industry and knows many of the builders personally and professionally. While Grig may not be able to solve everything in these meetings, he will be able to help builders to see more clearly and possibly remove some of the emotion and inertia that can result when the situation can seem overwhelming. Grig says in these cases, the worst thing you can do is nothing and that basically, if you owe more than the property is worth — you can’t get through that without help from your lenders. At some point, you have to deal with difference between current value and current debt. Grig sees builders who are getting by month to month and hoping for better times without taking decisive action to restructure their debt. The problem with this approach, says 2
SEPTEMBER/OCTOBER 2009
Grig, is that sooner or later, the money is likely to run out. His focus is on avoiding costly and emotionally draining litigation and working out solutions with lenders. He’ll ask builders to think about how they will get their business to a point where it can generate positive cash flow going forward and at the same time, consider how to deal with “old debt.” One builder member who met with Grig reports that within days of his meeting, he put several of Grig’s recommendations into action. The builder reports that Grig “came up with things that as a builder you typically wouldn’t think of. “Some of the things I thought I was doing right were things I shouldn’t have been doing. We came up with a plan to change the way I was approaching things and doing things,” said the builder. For more advice from Grig, check out his column on page 22. Or, see the sidebar below with the times and dates of his availability to meet. In the meantime, TBA will continue to strive for ways to add relevance and value to our members during this slow recovery. It’s important to remember that we are all in this together — builders, bankers and suppliers. Together we will get through to the better times ahead. Hang in there,
Pete A. Kotarides
Free Debt Restructuring Consultations If you would like a one-hour consultation with TBA General Counsel Grig Scifres, schedule a time with Dee Fain at 305-9017 or dfain@tbaonline.org. Available dates/times: Fri., Sept. 18, 8:15–11:45 a.m. Mon., Sept. 21, 1:30–6 p.m. Mon., Sept. 28, 8:15 a.m.–1:15 p.m. Wed., Sept. 30, 1:30– 5:30 p.m.
2009
Cornerstone Foundation Members Thank you to the following companies for their support of the shelter industry: Diamond
$10,000
Platinum $5,000
Virginia Natural Gas Dominion Virginia Power Fulton Bank/Fulton Mortgage TowneBank
The Ainslie Group SunTrust Real Estate Finance Group Bank of America Tidewater Home Funding Beach Ford Inc. The Virginian-Pilot Sykes, Bourdon, Ahern & Levy P.C. Bank of Hampton Roads Williams Mullen William E. Wood & Assoc. Kotarides Builders Napolitano Homes Clark Whitehill Enterprises Inc. Area Builders of Tidewater Inc.
Wells Fargo Monarch Bank/Monarch Mortgage Superior Equipment Sales Inc. Cox Communications Columbia Gas of Virginia
Gold $2,500
Terry/Peterson Cos. Hearndon Construction Corp. Ashdon Builders Inc. L.R. Hill Custom Builders Inc. Miller Custom Homes Joey Corp. Greenbrier Lighting Associated Development Real Estate Information Network Inc. Gateway Bank & Trust Co. Reese Smith Construction iLevel by Weyerhaeuser The Closet Factory
SEPTEMBER/OCTOBER 2009
3
Issues and Actions
Members make their (our) voices heard By Mary Prier, APR
S
ome members of Tidewater Builders Association have been busy this summer speaking up for the industry on a number of critical issues that could have a major impact on builders and developers.
Mandatory sprinklers: Do as I say, not as I do
The public hearing in Richmond was packed with those for and against making fire sprinklers a mandatory component of every new home built in Virginia. When it was his turn to speak, past TBA President Jeff Ainslie asked those in favor to stand. The fire marshals and sprinkler manufacturer representatives on hand stood to be counted. He then asked those who have sprinklers in their own homes to remain standing — all but one took their seats. Ainslie was joined on the speaker’s platform by builder Bobby Tyler and backed by a contingent of other builders from Hampton Roads, including incoming Home Builders Association of Virginia President Michael Newsome. Newsome pointed out that the industry is not against added cost at the expense of safety, but that it has already incorporated numerous safety measures that have dramatically reduced the risk from fires. The Board for Housing and Community Development voted 9 to 2 to change the mandate to an option in the proposed 2009 Virginia Uniform Statewide Building Code Update and to include a methodology for the installation of sprinklers for those who choose them. This was the first step in the process, but a big step for the housing industry. A final vote will be taken on the issue in March.
Money down the drain? New stormwater regs
Meanwhile, public hearings are under way on proposed new rules governing stormwater runoff. A group of civil engineers analyzed the effects of applying the new regulations to previously designed projects. Their results revealed that it would cost a lot more money to build homes and commercial buildings with no significant improvement to the Chesapeake Bay. The industry maintains it’s being disproportionately affected by the proposal in relation to the effect it has on pollutants. The HBAV has submitted a counterproposal that would assess fees on the industry to help offset the cost of cleaning 4
SEPTEMBER/OCTOBER 2009
up the bay. Thanks to Andy Herr, vice president of land development for Terry Peterson Cos., who coordinated the analysis, as well as the following contributors: Bob Cosby, AES Consulting Engineers; Chris Parker and Michelle Virts, Timmons Group; Mike Hess, Miller Stephenson and Associates; Mike Bumbaco, Kerr Environmental; Ted Miller, Kimley Horn and Associates; Scott Davis, Vanasse Hangen Brustlin Inc.; and Kelly Holloman, Landmark Design Group. The Department of Conservation and Recreation is evaluating more than 3,000 public comments. A special meeting of the Soil and Water Conservation Board is set for Oct. 6 to vote on the regulations.
Stimulating the economy with home buyer credit
TBA leadership has also been voicing support of a national initiative to extend the $8,000 federal first-time home buyer tax credit, which is set to expire on Nov. 30. Personal meetings have been held with Congressional representatives Randy Forbes, Glenn Nye and Bobby Scott to ask them to extend the credit for another year and to make it available to all home buyers. The National Association of Home Builders maintains that if Congress extends the tax credit program, it would spur 383,000 additional home sales, and create nearly 350,000 jobs.
Chinese drywall saga continues
The NAHB Chinese Drywall Task Force met with Congressional representatives who serve on the Chinese Drywall Caucus in an ongoing effort to resolve unanswered questions about the product, reported TBA past President John Ainslie. The product, imported from China from 2004-08, is believed to contain high levels of sulfur that emit foul odors and corrode copper components in the home. The task force is working with various building health and forensic scientists to develop an inspection and remediation protocol to effectively identify and remediate the problem. The goal is to have these standardized protocols accepted and endorsed by a government agency, such as the Consumer Products Safety Commission. Meanwhile, a class-action lawsuit in Louisiana is expected to act as a precedent in determining liability.
Headliners Put on your dancing shoes and follow the yellow brick road
Get set to enjoy an evening “Somewhere over the rainbow” at the annual Builders Ball and installation of officers, set for Friday, Dec. 4, at the Virginia Beach Oceanfront Hilton. The event will feature a sit-down dinner and the installation of Bill Halprin as 2010 president of Tidewater Builders Association. Halprin is senior vice president of S.L. Nusbaum Realty Co. and past recipient of the Tidewater Multifamily Housing Council’s Executive of the Year Award. Get out your ruby red slippers (or your dancing shoes) and come out for an evening of fun, friends, fine food and the Top 40 sounds of the six-piece band, Fast Forward. Sponsorship opportunities are still available and reservations cost $75 per person. A block of rooms is being held for reservations at $129 a night. For more information, contact Stacey Turner at 305-9042 or sturner@tbaonline.org.
HBAV installation coming to Virginia Beach
The Home Builders Association of Virginia is heading to Virginia Beach for the installation of our 2010 state president, Michael Newsome of Clark Whitehill Enterprises Inc. Newsome is a TBA past president and current chairman of the TBA Scholarship Foundation. In lieu of a formal event, Newsome will celebrate his installation with a luncheon at the Virginia Beach Oceanfront Hilton on Thursday, Nov. 12, which offers a panoramic view of the oceanfront. The installation luncheon will kick off with a gathering at 11:30 a.m., followed by a meal at 12:30 p.m. The installation ceremony will begin at 1:30 p.m., immediately followed by a dessert reception. Tickets cost $40 per person. Make your reservations by contacting HBAV at 804-643-2797 by Nov. 2.
Strength in numbers
Help build a stronger association in the fall membership drive Nov. 18-19. Not only can you win great prizes, but you’ll also network with other members and enjoy post-drive festivities. Get on a recruitment team now by contacting Stacey Turner at 420-2434 or sturner@tbaonline.org.
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Call Miss Utility at before you dig. Allow required time for marking. Respect the marks. Excavate carefully.
This message brought to you by the Virginia State Corporation Commission SEPTEMBER/OCTOBER 2009
5
J`kk`e^ fe k_\ ]\eZ\ Zflc[ Zfjk k_\ _fd\ Ylp\i The following guest column was published in The Virginian-Pilot on Wednesday, July 29, 2009. ing 1.5 to 1.8 million units, a trend that makes us believe I’ve been in the housing industry more than there is pent-up demand from people waiting on the sidelines 50 years and I’ve seen a lot of ups and downs. for better economic conditions. One thing I know for certain is that no one Our economists at NAHB predict that by 2013, our popknows how long a buyer’s market will last. ulation will include 83 million people in the 25-44 year age Usually, when we get into a downturn, range — the prime home buying age. These growing housepeople wait too long to make a decision and holds will create additional demand. end up buying when prices and interest rates are Locally, our builders did not create a huge inventory of unincreasing. By Frederick J. sold homes as they did in some other markets. With today’s As you pointed out in “From glum to glimNapolitano Sr. mer, market remains rough” ( July 23, 2009), a tight financing, they are not developing land or building many additional inventory homes. When the number of indicators, such as indemand for new homes exceeds our supply, creasing sales volumes and prices, are pointing there will be a gap and prices will increase. to a possible bottom in the Hampton Roads Our builders conOur builders construct houses, but when housing market. struct houses, but families move in, they become homes. Most Your assumption it’s likely to remain a when families move people still want to own a place they can call buyer’s market “for some time” could persuade home. They want the “white picket fence” in, they become potential home buyers to lose out on the opwhere they can raise their family and become portunities available in today’s local housing homes. Most people part of a community. market. still want to own They will realize long-term benefits For those who have secure employment and a place they from home ownership, such as deductible the financial resources, it’s a good time to buy. can call home. mortgage interest and growing equity each I believe we are currently bouncing along Fred Napolitano Sr. month, as well as an increase in value over the bottom of the housing market. Prices time. could go down more, but it would be a gamble We proved in the ’80s that our industry to wait. could get more people back to work in a Today’s interest rates are as low as anyone short period of time than any other industry because of our can remember. They may fluctuate from week to week, but no tremendous ripple effect. Suppliers and subcontractors as one knows when they’ll just continue to increase. The same is well as landscapers and even furniture companies enjoy the true of inflation. We know it will come back; it’s just a matter spin-off benefits from a healthy housing market. of when. We can help tackle unemployment by getting the housing An $8,000 tax credit for those who haven’t owned a home industry back on track, and spreading the word that now is a in three years expires Nov. 30. This is like the government good time to buy. giving you $8,000 to buy a home. When I presided over the National Association of Home Frederick J. Napolitano Sr. is a past president of the National Builders (NAHB) in 1982, it was one of the worst periods Association of Home Builders and a member of its Hall of Fame. on record for the industry. Interest rates for home mortgages He has served on the Fannie Mae, Freddie Mac and Federal Home were at 17 percent. Unemployment was about 11 percent. Loan Mortgage Corp. advisory boards and chaired the Federal Still, people bought more than 1 million units representing Home Loan Bank Advisory Council. He is also a past president all types of housing. Even in that market, people wanted and of Tidewater Builders Association and chairman of the board of Pembroke Enterprises and Napolitano Homes, as well as a partner needed a home. in Terry/Peterson Development Corp. He is also recipient of the This year, we’re on track to sell only about 500,000 units TBA Stanley Award for lifetime achievement. nationally, whereas a typical year would see the industry mov6
SEPTEMBER/OCTOBER 2009
Presented by
Make yourself at home
Homearama details:
Oct. 3-18 noon-9 p.m. Sun.-Thurs. noon-10 p.m. Fri. & Sat. COST: $10 general admission $8 TBA member advance tickets $7 TBA member (more than 20 tickets) $6 TBA member (more than 50 tickets) $5 TBA member (more than 100 tickets)
Join us at the preview party. Tickets are on sale now for this year’s Homearama Preview Party, which is business casual, at Culpepper Landing in Chesapeake on Friday, Oct. 2. Enjoy the “Taste of Virginia” cuisine, courtesy of Farm Fresh catering division Fresh Events, and spirits, courtesy of Afton Mountain Winery, while listening to the sounds of Skip Friel & The Resonators. And don’t forget to visit the Charity House, built by The Walters Company Inc. Gates open at 6 p.m. and the awards ceremony starts at 6:30 p.m. on Friday, Oct. 2, at Culpepper Landing, Chesapeake.Tickets cost $50 prior to Sept. 18 and $55 afterward. Proceeds to benefit The Children’s Hospital of The King’s Daughters.
Discount coupons and more information at www.homearama.tv
Order your tickets online at www.tbaonline.org or call 420-2434
Join us at Homearama 2009, where 12 custom showcase homes create a streetscape reminiscent of Main Street America, with classic interpretations of traditional architectural styles. It’s Tidewater Builders Association’s annual “buy now” campaign designed to stimulate interest in housing in all price ranges. Homearama, now in its 28th year, returns to Chesapeake for the 15th time, this year at Culpepper Landing near Deep Creek. As usual, the event showcases the latest in home design and innovation, including: s The area’s first certified EasyLiving Home s A customized modular home, constructed in a factory and assembled on site
s The Chesapeake House, with products and décor that reflect the city’s culture and heritage s The Christmas House and The Thanksgiving House, with ideas for holiday decorating s The Green House sponsored by Virginia Living magazine, with energyefficient features s The Man Cave, sponsored by DIY Network and Cox Communications, offers visitors a chance to win their own man cave makeover Don’t miss dates: s Oct. 5: Military Appreciation Day – buy one, get one free admission with a valid identification card
s Oct. 5: A Taste of Chesapeake, sponsored by Columbia Natural Gas and HR Magazine, from 5:30-7:30 p.m., will allow guests to sample cuisine from Chesapeake restaurants s Oct. 6 and Oct. 13: “Two for Tuesdays” offers two-for-one admission with a Cox Communications invoice s Oct. 7: Realtors Day – free for realtors showing a business card, with breakfast from 9:30-11 a.m. s Oct. 17: “Kidarama” from noon2 p.m. features children’s activities from The Children’s Hospital of The King’s Daughters s Oct. 19: The Homearama Furniture Sale from noon-6 p.m., allows visitors to come back to purchase their favorite furnishings and décor
SEPTEMBER 2009 SEPTEMBER/OCTOBER 2009
1 7
Homearama 09
4
1
The “bright idea” House Built by Simpson Builders Inc. Howard, Mary-Dolph and Page Simpson
The lindsay Built by Vintage Homes T.E. Jones
2,542 square feet, 4 bedrooms, 2 baths, with 1 half bath
1,784 square feet, 3 bedrooms and 2 baths, with 1 half bath
5
2
SECOND FLOOR
The elizabeth: T C H Built by The Widener Corp. Erin Widener Speckhart
The dover Built by Vintage Homes T.E. Jones
2,414 square feet, 3 bedrooms and 2 baths, with 1 half bath
2,380 square feet, 4 bedrooms and 3 baths
3
82
6
The thanksgiving House Built by Definitive Homes Inc. Mike Brunick and John Reddecliff
The crow’s nest Built by Next Level Group L.L.C. Sam Cohen and John W. “Chip” Iuliano
2,502 square feet, 3 or 4 bedrooms and 3 baths
1,847 square feet, 3 bedrooms and 2 baths, with 1 half bath
SEPTEMBER 2009 SEPTEMBER/OCTOBER 2009
Homearama 09
10
7
morningside manor Built by Next Level Group L.L.C. Sam Cohen and John W. “Chip” Iuliano
The sydney lambert:
T B A C H T C’ H T K’ D
Built by The Walters Company Inc., Herb Watson 3,600 square feet, 5 bedrooms and 4 baths, with 1 half bath
2,866 square feet, 4 bedrooms and 3 baths, with 1 half bath
8
11
SECOND FLOOR
The elderberry: A C T Built by WATAB Construction Corp. William “Bill” Brice
The whitaker: W H Built by SGB Homes Scott Brooker
3,011 square feet, 4 bedrooms and 3 baths
2,898 square feet, 4 bedrooms and 3 baths, with 1 half bath
9
The easyliving home Built by The Walters Company Inc. Herb Watson 3,500 square feet, 5 bedrooms and 4 baths, with 1 half bath
12
The walnut cottage:
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Built by Stephen Alexander Homes Alex, Stephen and Steve Quick 3,444 square feet, 5 bedrooms, 4 baths, with 1 half bath SEPTEMBER 2009 SEPTEMBER/OCTOBER 2009
39
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On a hot August day, 6-year-old Sydney Lambert wielded a child-size shovel to take part in a tree planting ceremony to dedicate the Homearama home that bears her name. A few weekends later, a Chesapeake couple visiting the site during a Dusty Boots open house fell in love and bought the home. The proceeds from the sale of this special Homearama home will be contributed to The Children’s Hospital of The King’s Daughter, which served as a home away from home for Sydney when she was an infant battling cancer.
Built by veteran Homearama builder Herb Watson of The Walters Company Inc., the Charity House, named “The Sydney Lambert,� will be among the 12 showcase Homearama homes at Chesapeake’s Culpepper Landing from Oct. 3-18.
AgR\SgĂ‚a ab]`g In 2004, Sydney’s stomach became very distended and her mother rushed Sydney to a nearby hospital where a large growth was discovered in her abdomen. She was sent to CHKD, where surgeons discovered that the tumor had burst, spilling malignant cells into her stomach. Sydney underwent chemotherapy, which meant periodic eight-day hospital stays over six months. Treating babies with cancer requires an extensive team of professionals who focus on children, something that’s usually found only at children’s hospitals. During the six months in and out of CHKD, Sydney stayed on track developmentally. “She learned how to walk when she was in the hospital. I’d walk behind her, pushing her IV pole,â€? Kim Lambert said. “You’re so excited and so happy it’s over, but it’s bittersweet because you’re leaving behind all these great people who’ve taken care of your child – and you,â€? she said.“When Sydney got sick, I felt so blessed to have these incredible people and CHKD right here, so we didn’t have to travel out of state during the months Sydney was being treated.â€? Now Sydney is thriving. She loves gymnastics and cheerleading, and according to her mother, “never stops talking.â€? “You don’t know how to thank them enough other than to show them what a great kid she’s become,â€? Kim said. “You just want those wonderful people to know, ‘Hey look, all your work paid off, look at her now.’ â€?
BVS AgR\Sg :O[PS`b On Aug. 4, Sydney was the guest of honor at the tree planting ceremony to dedicate The Sydney Lambert. She was joined at the ceremony by her family, Tidewater Builders Association President Pete A. Kotarides; Chesapeake Mayor Alan Krasnoff; Culpepper Landing
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survivor this morning, and last year, we had a young man who has been in the hospital every year of his life,� said Watson about his affiliation with CHKD.“And he’s getting better all the time.� As for Sydney,“she is a lovely young lady,� said Watson.“I’m just amazed. Her parents are so lucky and fortunate to have the organization such as CHKD and to have their children so healthy.� CONTRIBUTORS: 5IJT IPNF XPVME OPU CF QPTTJCMF XJUIPVU UIF HFOFSPTJUZ of all the subcontractors and suppliers donating their skills and products. A big thanks goes to the following donors: Archimages
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Homearama 09
A modular experience Builder introduces a green modular home to Homearama
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Homearama 09
Easy to live in‌ today and tomorrow Hď?Żď?ď?Ľď?Ąď?˛ď?Ąď?ď?Ą ď?˘ď?ľď?Šď?Źď?¤ď?Ľď?˛ ď?˘ď?˛ď?Šď?Žď?§ď?ł ď?Śď?Šď?˛ď?łď?´ Eď?Ąď?łď?šLď?Šď?śď?Šď?Žď?§ Hď?Żď?ď?Ľ ď?´ď?Ż Hď?Ąď?ď?°ď?´ď?Żď?Ž Rď?Żď?Ąď?¤ď?ł 1)050 $0635&4: 0' 8*/%40/( 1301&35*&4
By Sara Steil Imagine never having to retrofit your home to meet your changing family and physical needs. Now imagine that those upgrades to your home, which is also more accessible, can cost little to nothing since they were incorporated into the home when it was built. That’s the basis for the EasyLiving House, designed by veteran Homearama builder Herb Watson of The Walters Company Inc. Aď?˘ď?Żď?ľď?´ ď?´ď?¨ď?Ľ ď?°ď?˛ď?Żď?§ď?˛ď?Ąď? The EasyLiving Home program is operated by a nonprofit coalition of organizations committed to making homes livable for everyone, including the AARP, Home Builders Association of Virginia, Virginia Housing and Development Association and Virginia Board for People with Disabilities. According to EasyLiving Home project coordinator Rhonda Allison, an EasyLiving home is “a visitable home.â€? “Anyone can visit you whether they have a wheelchair, a walker or a baby stroller that needs to come in,â€? she said. “Anyone can come in and be comfortable in your home.â€? Aď?Łď?Łď?Ľď?łď?łď?Šď?˘ď?Šď?Źď?Šď?´ď?š Though you may be healthy now, there may come a time in the future when you or a family member may have limited mobility. An EasyLiving home takes this into account and groups the most essential living areas on the first floor to make it easy to move about, as well as move heavy items without having to navigate stairs and doorways. “You should be able to function in
your home,â€? said Allison. “What people don’t realize is how versatile an Easy Living Home is.â€? Aď?˘ď?Żď?ľď?´ ď?´ď?¨ď?Ľ ď?¨ď?Żď?ď?Ľď?ł To be considered an EasyLiving Home, the house must meet the following criteria: s 3TEP FREE ENTRANCE AND THRESHOLD OF no more than ½ inch from a driveway, sidewalk or other firm route into the central living area. s ! MINIMUM OF INCHES OF CLEAR passage space for every interior passage door on the main floor and the exterior door that provides a step-free entrance. s 4HE MAIN mOOR HAS NO LESS THAN ONE bedroom, a kitchen, entertainment area and one full bathroom with sufficient maneuvering space. “It doesn’t matter if you’re a person with disabilities‌ or a person who enjoys the ease of carrying groceries into a house with a zero-step entrance – access is for everyone‌â€? said Teri Barker, Virginia Board for People with Disabilities. For more information about an Easy Living Home, visit www.easylivinghome.org.
Beauty and functionality merge in EasyLiving House For Homearama builder Herb Watson, building the EasyLiving Home at Culpepper Landing was a way to merge beauty with unforeseen circumstances. “We need to plan for our eventual demise, as well as being able to accommodate for everything that may happen in life,â€? said Watson. That’s the idea behind his EasyLiving house. More importantly, it’s a home that will not need to be refitted to accommodate your family’s changing needs. It will also be the first EasyLiving Home in Hampton Roads and will join only three other EasyLiving certified homes in the state. The EasyLiving House features five bedrooms, and four and a half baths, as well as a gallery that will “overlook an English garden with a concrete water feature.â€? The first floor has a “magnificent master suite with a terrace overlooking raised gardens,â€? said Watson. In addition, the master bath is wider for maneuverability and is equipped with a sunken shower and pedestal sinks. Ceramic tile, a freestanding tub and magnificent dĂŠcor complete the bathroom. The 3,500-square-foot home has multiple rooms of hardwood flooring, has been equipped for an elevator and also features an interior fire suppression system. SEPTEMBER2009 2009 SEPTEMBER/OCTOBER
137
Advertorial
Mixed-use projects are picking up steam Current demand is keeping land-planning service busy By Esther Diehl Turner Land Planning Solutions
L
and Planning Solutions, LPS, is a multifaceted planning firm based in Suffolk that specializes in conceptual design, rezoning, preliminary and final engineering, project management, landscape and architectural design. Melissa Venable, the principal of LPS, graduated from the University of Maryland with a degree in landscape architecture and planning and gained a formidable amount of experience working in the Washington, D.C., metropolitan area before coming to Hampton Roads. The professionals at LPS form a team with more than 50 years of plan-
The thoughtful consideration of the current buyer’s needs, as well as the projected needs of future generations, leads LPS to create spaces that are not only attractive and impressionable but long lasting, too. ning and engineering experience. As a result of today’s market, LPS has found itself working on a wide variety of projects, often reconfiguring previous iterations of land plans, as well as adjusting the product size and elevation to better fit the current demand. Over
Landscape Architecture Land Planning Engineering 757 935 9014 www.landplanningsolutions.com
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SEPTEMBER/OCTOBER 2009
the past few months, LPS has observed a noticeable increase in sales, which seems to have a direct correlation to a project’s pricing and location. Unique projects with a mix of housing styles and commercial uses have continued to sell due to their variable products and pricing. Mixed-use projects like Culpepper Landing, the 2009 Homearama site, have continued to generate activity. LPS currently is working as a member of the Architectural Review Team for Culpepper Landing, as well as having designed the sales center, clubhouse, neighborhood entry feature, park play area and the private residential landscape and courtyard designs for the Vintage Homes sites. LPS also is revising the plan for the Mercantile District and creating attractive elevations for the commercial buildings that will blend with the existing homes and enhance the neighborhood. The design process for LPS is an exercise that considers many variables, not just a simple “make-it-fit” philosophy. The thoughtful consideration of the current buyer’s needs, as well as the projected needs of future generations, leads LPS to create spaces that are not only attractive and impressionable but long lasting, too. When considering a home purchase, the buyer takes a moment to ask himself, “Could I live here? Will my children be happy here? What about my grandchildren?” The team at LPS asks themselves these questions everyday and has heard some of their most successful clients do so as well. When response to current financial needs is combined with research and study for future demand, LPS has found creating places can be highly sought after.
Shades of Green
By Fred Sayers, L&F Landscaping
Earth-friendly landscaping on display at Homearama
I
have enjoyed working with plants for years. As a youngster, I worked with my grandfather in propagation of English Boxwoods and other plants. I did several design jobs and installs for friends before going into business and now I am the landscaper for Culpepper Landing. I have seen firsthand some major changes that it has undergone in the past year and a half. I take a personal interest in my properties and the upkeep on them, and with the size and elements surrounding Culpepper Landing, the project is a constant underAs a recipient of the Elizabeth River Project River Star Award, Culpepper Landing is adopting taking.
While the waste and blowing winds surrounding the property have put those plans temporarily on hold, I am researching several other grinding machines that are made for the sole purpose of grinding construction debris into finer mulch for rough areas of landscaping. Recycling in landscaping doesn’t stop there, either. Instead of discarding spent annual flowers, we are recycling those, too. First, we allow the flowers to dry out. Then, we till and reuse them in new or existing beds. We will also be splitting and transsustainable measures, such as using pervious planting some of the perennials in most In the landscaping materials in the driveways and native plant speof our beds throughout the property as Since Culpepper Landing is an Eliza- cies in the landscaping. they mature since perennials will multiply beth River Project River Star Award rethroughout the years. cipient for its 150-acre conservation area, I am using natural and Did you know that aside from a nicer looking lawn, grass environmentally friendly products in the landscaping. The Elizaclippings also can be recycled? beth River Project is an organization aimed a reducing pollution We regularly bag the grass clippings and then spread them in the Elizabeth River. on the bare areas around Culpepper Landing to help keep the Given the surrounding wildlife and conservation area, dust down. At a later point, we will make a compost area for Culpepper Landing is adopting sustainable measures when clippings, so that we can use them for repairing the damaged possible, such as using pervious materials in the driveways and turf areas. organic fertilizers and native plant species in the landscaping. Several months back, we even had someone leaving bags The use of native plants means that they will adapt to and of leaves in the back streets of Culpepper Landing. It seemed grow hardier because they are original to the climate. Such that every Monday morning I was finding 15-20 bags of leaves plants include numerous varieties of holly’s, maples, oaks, river or yard debris. Looking at it as a positive note, I would collect birches, roses and azaleas. the bags; dump the contents out and till it into the ground on One such organic fertilizer that we are using on the turf one of the back lots. As a result, it will be ready for use in our areas throughout Culpepper Landing is corn gluten. Corn new beds in a few months. gluten is a product developed by the University of Iowa that offers a non-toxic, yet effective alternative to traditional, chemical-based products for weed control. Since the corn gluten acts as a pre-emergent, Culpepper Landing has few weeds. Additionally, my crew mows no less than 3½ inches in height to help conserve moisture and therefore reducing the frequency of turf watering and weed germination. Air, light and water are essential to growth and if any of those components are missing, the growth will be stopped.
Recycling
Recycling isn’t limited to your household items. In fact, there are several ways in which I am incorporating recycling into the landscaping at Culpepper Landing. With all of the new construction under way at the development, I wanted to try using recycled wood scraps as mulch.
Limited use of chemicals
Though we are using a natural product in the landscaping, we do employ our own spray technicians for chemical spraying, when necessary. I have seen way too many situations were overspray or misused spray gets into the soil and does damage. Fred Sayers is a member of Virginia Nurseryman and Landscapers Association. L&F Landscaping offers landscaping services, in addition to pavers, mulching, aeration, sodding, light irrigation repairs and power raking. For more information, contact Sayers at 757-4032883 or fresay@msn.com.
The Green Building Council meets on the first Thursday of each month and is open to anyone interested in Green Building. The next meeting will be at 9 a.m. on Oct. 1, in the TBA boardroom. SEPTEMBER/OCTOBER 2009
15
Being a part of the community. It takes more than having a branch here. ! 20. 3511024*/( 052 3$)00-3 "/% -0$"- "243 40 )5."/*4"2*"/ $"53&3 )"3 " -0/( 42"%*4*0/ 0' 4",*/( "/ "$4*6& 20-& */ 4)& $0..5/*4*&3 7)&2& 7& %0 #53*/&33 00% $02102"4& $*4*9&/3 &2)"13 #54 40 53 *4 3 +534 1"24 0' #&*/( " (00% /&*()#02 0 :/% 054 7)"4 0110245/*4*&3 "2& 7"*4*/( '02 805 "4 $"-- 6*3*4 53 0/ 4)& 7&# "4 $0. 02 6*3*4 8052 /&"2&34 :/"/$*"- $&/4&2
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SEPTEMBER/OCTOBER 2009
TBA Home & Flower Show selected for national series Tidewater Builders Association’s MidAtlantic Home & Flower Show has been selected for USA Exposition’s “National Home and Garden Show Series™” for 2010, a designation with the potential to attract national marketing support. It is one of 30 of the nation’s top independent home shows joining forces with USA Expositions, a Clevelandbased marketing company, to launch PremierHomesShows.com and the national series as a vehicle to combine their resources and their reach. “It can be difficult for an organization with one or two events to compete against large consumer show companies for marketing dollars from national manufacturers and retailers,” said TBA President Pete A. Kotarides. “A series like this levels the playing field for independent show producers, including associations like ours.” The local event joins those from Seattle, Pittsburgh, St. Louis, Houston and others in this collaborative effort to gain access to national companies. “This premier 30-show portfolio provides a collective media expenditure/sponsorship benefit of $5 million and direct access to more than 1.5 million show attendees,” said Brian Roggenburk, president of USA Expositions. Only one show in each market was selected, he added. “The shows we selected were based on quality exhibits, quality gardens, attendance, promotions and advertising and the overall experience for show visitors.” The series has partnered with Better Homes and Gardens to provide a full-year subscription to online ticket buyers during 2010 and will pursue automotive and home improvement partnerships for the local events. The Home & Flower Show is set for Feb. 5-7 in the Virginia Beach Convention Center. For more information on how you can participate, call (757) 4202434 or visit www.tbaonline.org.
Builder Services Success Story
Builder in limbo after zoning change Jackson
Party impacted: J.F. Jackson III General Contractor Advocate: Jack Jackson Issue: Jackson purchased five lots in 2001; however, new city zoning in 2006 left him unsure of the value of his lots. Wanting to develop the land, Jackson turned to Builder Services for help in determining how his lots could be developed in compliance with the new zoning. Resolution: Builder Services was able to locate the proper code for Jackson’s lots. With the new zoning ordinances, Jackson ended up with more lots. Jackson was able to supply his surveyor with the
correct information s to move forward. Comment: “Without the proper information, I would have ended up with one lot instead of two,” Jackson said. If something were to arise, I would definitely use Builder Services. They are probably the best source in town and they’re a lot cheaper than a lawyer. Plus, they know what they are talking about and if you get it from them, it’s correct.” If you or your company has a building or development issue you would like help resolving or a question you need answered, contact Builder Services Specialist Patrice Kyle at 305-9015, or pkyle@tbaonline.org.
Top brands. Low prices. Factory authorized service. Experienced people. What did we miss?
Ed DeVries and Tom Huxtable. Sales professionals at East Coast Appliance Builder Direct. Hopefully we didn’t miss a thing. Because we’ve done everything we can to serve architects, builders and contractors. We even have a separate showroom just for you. And we’re equipped to serve everything from custom homes to multi-family projects. When your next project is ready for appliances, call us. We won’t miss a thing. ! 3OUTH 7ITCHDUCK 2OAD s 6IRGINIA "EACH 6! s SEPTEMBER/OCTOBER 2009
17
And the winners are... TMHC annual banquet goes under the big top to honor top performers
By Sara Steil The 25th year of Tidewater Multifamily Housing Council’s Associates’ Showcase, Awards Banquet and RAM Graduation on July 23 was nothing less than fun-filled. The largest annual banquet for TBA kicked off the evening “under the big top” with the Associates Showcase where Carousel Signs and Designs Inc. took home the award for Best in Show. After hors d’oeuvres, cocktails and networking at the trade show, the participants got down to business and awarded several TMHC members and communities for their efforts, and recognized the winners of the TMHC Olympics.
Jamie Fisher of Ripley Heatwole Co. took home The Apartment Book’s Leasing Consultant of the Year Award.
John Davis, center, of Lawson Realty Corp. took home the honor of the Gordon A. Poole Regional Property Manager of the Year Award.With Davis are TBA President Pete A. Kotarides and TMHC Chairwoman Debbie Gordon.
Jocelyn Fetzer, publisher of
The Peggy B. Cowan
Hampton Roads Apartment
Property Manager
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of the Year Award went
2009 Associate of the Year
to Amy Thompson, of the
for her work supporting
Lawson Realty Corp.
the Tidewater Multifamily Housing Council.
SEPTEMBER 2009 18 2 SEPTEMBER/OCTOBER 2009
More than 600 TMHC members and guests participated in the festivities, which went late into the evening at the Virginia Beach Convention Center.
merit aWARDS t t Merit Awards were presented to seven individuals for their outstanding performance in the industry throughout the year. Caroline Forehand, S.L. Nusbaum Realty Co.’s multifamily marketing director, was named 2009 Multifamily Executive of the Year. Forehand began her career in the multifamily industry as a lifeguard and has since worked her way from property management to marketing. She “maintains a high standard of excellence for the company and maintains the company’s excellent reputation,” said William Halprin, senior vice president of S.L. Nusbaum Realty Co. “She works tirelessly to maintain an efficient and effective team and helps to support and assist all of the communities.” Forehand lived up to her award and was not able to make the festivities, as she was working on a property out of state. Jocelyn Fetzer, publisher of Hampton Roads Apartment Book, was honored as the 2009 Associate of the Year for her work supporting the Tidewater Multifamily Housing Council. “We can always count on Jocelyn to volunteer her time and talent in our many activities,” said Sharon HamiltonTaylor of Lawson Realty Corp.“In addition, her work with the 3Ms Committee has helped to make it a success each year.” Debbie Gordon was awarded the Chairwoman’s Plaque for her efforts in leading the TMHC Council for 2008 and 2009.
Additional 2009 Merit Awards winners include: s Gordon A. Poole Regional Property Manager of the Year Award, John Davis, Lawson Realty Corp. s Peggy B. Cowan Property Manager of the Year Award, Amy Thompson, Lawson Realty Corp. s The Apartment Book’s Leasing Consultant of the Year Jamie Fisher, Ripley Heatwole Co. s 2009 Maintenance Supervisor of the Year Rick Zimmer, Lawson Realty Corp. s Rebecca Hughes/Sam Shetsul Maintenance Employee of the Year Award, Trent Church, Lawson Realty Corp.
AWARDS OF EXCELLENCE t tIn addition to Merit Awards, the winners of the 2009 Awards of Excellence were also presented to outstanding properties in South Hampton Roads based on criteria including the year of the property’s completion, signage, maintenance and landscaping. With 94 communities vying for recognition, the 2009 Awards of Excellence first-place winners, presented by TMHC Chairwoman Debbie Gordon, include: s Communities completed as of 2001 and after Belmont at Greenbrier, Kotarides Property Management s Communities completed between 1996 and 2000 Mill Creek Apartments, Ripley Heatwole Co. Inc. (contnued on page 20)
SEPTEMBER 2009 2009 SEPTEMBER/OCTOBER
3 19
1
2
3
4
From left to right: 1) Missy Yeary and Jay Foley of Carousel Signs celebrate their Best in Show Award for their display at the Associates Showcase. 2) Heritage Woodworks’ Anne Harvard Smith, Gordon Harrison and Jake Bradshaw kick off the Associate Showcase festivities in costume. 3) TMHC members were ushered into the greatest show on earth with popcorn and goodie bags from The Apartment Book. 4) Entertainment included a local street performer making the rounds on stilts.
s Communities completed between 1991 and 1995 Taylor Pointe Apartments, S.L. Nusbaum Realty Co. s Communities completed between 1986 and 1990 Mission College Apartments, S.L. Nusbaum Realty Co. s Communities completed between 1981 and 1985 Holly Point Apartments, Drucker & Falk LLC s Communities completed between 1976 and 1980 Kingsbridge Apartments, Lawson Realty Corp. s Subsidized communities Park Terrace Apartments, S.L. Nusbaum Realty Co. s Renaissance Awards for communities completed in 1971-75 Wellington at Western Branch, S.L. Nusbaum Realty Co. s Renaissance award for communities completed in 1966-70 Colonial Arms Apartments, S.L. Nusbaum Realty Co. s Renaissance Award for communities completed in 1961-65 Colony Point, S.L. Nusbaum Realty Co. s Renaissance Award for communities completed in 1960 and before Archer’s Green Apartments, Signature Management s Adults/Senior Housing The Orchards at Belleville Harbour, S.L. Nusbaum Realty Co. s Adults/Senior Housing completed before 1995 Old Donation Apartments, Ducker & Falk LLC
RAM graduates lined up “Under the Big Top” in preparation of being awarded their certificate of completion. 4 20SEPTEMBER 2009 SEPTEMBER/OCTOBER 2009
ram school grads t tThe2009 banquet, which also drew more than 600 members and guests, also honored the 42 graduates of TMHC’s Registered Apartment Managers, RAM, program. The graduates completed a 40-hour basic RAM training program in on-site management, the first step to acquiring the RAM designation, a Department of Housing and Urban Development approved certification program administered through the National Association of Home Builders. The graduates, by company, are: s Bonaventure Realty Group LLC: Steve Meilleur and Yvonne M. Walters s Frye Properties: Kelly Y. Brunson and Sandra A. Matthews s Clark Whitehill Enterprises Inc.: Russell A. Bryson and Phillip S. Lewis s Great Atlantic Real Estate/Property Management: Christa Gilbert and Jeff Pillow s Kotarides Property Management: Jeffrey G. Garlock; Rebekah Kantowski; Michael A. Kniskern; Chantal Reed; Cortney Schulte and Angela Underwood s The Lawson Cos.: Shira Ali; Kimberly Petrice Boone, Chantel Brace; Jamie Brown; Janice Butler-Harris; Cecilia Luz Collins; Emma Rosemary Cruz; Kimberly P. Dickerson; Thomas Formisano; Hope Hallaman;
Emcee Chris Dembitz, center, awarded Ripley Heatwole Team 2 the first-place award for their sweat and tears at the annual TMHC Olympics.
big thanks to our sponsors and exhibitors:
s s s s
s s
Rosvellann Diones Jackson; Aisha Miller and Christina Speight Montgomery Meredith Construction Co.: Page G. Lea Jr. Norfolk Development & Housing: Aline E. Rogers Ripley Heatwole Co. Inc.: Salesha Lankford; Brittany Murray and Rebecca Walker S.L. Nusbaum Realty Corp: Tonya Renee Dudley; Thomas Goodwin; Taylor Hughes; Yashana Purvis; Myra L. Silvera; Melisa Skinner and Jessica Studeny W.H.H. Trice and Co.: Colleen Garland and Dawne Langston Dessirrae Johnson
olympic winners t tThetmhc winners of the TMHC Olympics, which were held on June 12 at the annual TBA Festival in the Park, were also announced. They were: First place: Ripley Heatwole Team No. 2 Second place: Breeden Company Team No. 2 Third place: Great Atlantic Real Estate/Property Management Team No. 2
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Lawson Realty is proud of our Merit Award winners! MERIT AWARDS: Regional Property Manager of the Year: John Davis Property Manager of the Year: Amy Thompson, Ghent Village Apartments Maintenance Supervisor of the Year: Rick Zimmer, Ghent Village Apartments Maintenance Employee of the Year: Trent Church, Forest Cove Apartments
Apartment Book American Furniture Rentals Inc. Appliance Warehouse Apartments.com Carousel Signs & Designs Inc. Causey Contracting Inc. Central Wholesalers Inc. Coinmach First Atlantic Restoration Inc. Floorcrafters George G. Lee Co. Inc. Hampton Roads Security Corp. HD Supply Heritage Woodworks LexisNexis Resident Data Move.com ODU Off-Campus Housing Service Performance Plumbing Sentorian Investigations & Executive Protection Verizon Enhanced Communities Virginia Housing Development Authority Wilmar Young’s Flooring
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Lawson Realty is proud of our Awards of Excellence winners! PROPERTY AWARDS: Communities Built between 1976-80: Kingsbridge Apartments (Winner!) Greenlakes Apartments (2nd runner up)
Subsidized Communities: Hunters Point (1st runner up) Renaissance Communities Built between 1971-75: Harpers Square (1st runner up)
SEPTEMBER2009 2009 SEPTEMBER/OCTOBER
5 21
Counsel ’s Insights
Access to capital and debt restructuring
By C. Grigsby Scifres
A
ccess to capital is essential to the viability of any business. Current economic and market conditions have limited the availability of traditional sources of capital for builders. Many have questioned whether financing is available even for good deals that meet conservative underwriting standards. This column will provide a few observations on accessing debt capital and restructuring business indebtedness. Market and regulatory pressures on financial institutions have changed the landscape for builder financing. Financial institutions have pressures on
Cash is your key survival tool. Do not waste it by funding a business that no longer can maintain a positive cash flow and be successful.
their balance sheets and loan portfolios that cause them to reduce exposure to residential real estate. These pressures include a need to grow interest and fee income and deposits. Renewals of existing credit facilities will include increased pricing, rate floors and current appraisals of collateral. Builders would be well advised to be more proactive participants in the process of valuing lot and completed home inventory.
Contact me on how you can save 22% off your monthly bill.
Jesse James BUSINESS AC C OUNT EXECUTIVE for
Tidewater Builders Association
757.572.5813 j e ss e. j ame s @ spr i nt . c om t "DU OPX MJNJUFE UJNF PGGFS
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SEPTEMBER/OCTOBER 2009
Consider asking to meet with the appraiser to provide input on value and market conditions. Ask which comparable sales are being used and make sure that any distressed sales are excluded. Suggest comparable sales that the appraiser should consider. In certain circumstances, it also might make sense to select an appraiser from the lender’s approved list and engage him as your own consultant. A key requirement of accessing capital and negotiations with any creditors is accurate and up-to-date financial reports. Make sure your financial reports, both business and personal, are current and accurate (including balance sheet, income statement and cash flow projections). If there have been any accounting irregularities, fix them. Make sure that your cash flow projections are credible. All tax filings and payments should be done on time, without exception. If your company lacks the internal capability to accomplish these things, then engage a capable CPA. Take a thorough, objective look at your business model and operations. If you are not generating positive cash flow (excluding the carrying costs of stale inventory), then your business model needs to be fixed. Only inject cash when you have restructured your business operations and your debt and balance sheet so that you can maintain a positive cash flow for the next 18 to 36 months, even if market conditions do not improve. Cash is your key survival tool. Do not waste it by funding a business that no longer can maintain a
positive cash flow and be successful. Addressing stale inventory, and the related carrying costs, is a central challenge facing developers and lenders alike. Evaluate whether you (and your lenders) would be better off finding the fastest way to convert inventory to cash rather than following the traditional sale process. Absorption times, coupled with declining values, require an aggressive strategy. Because it’s likely that values are less than the debt-encumbering inventory, you need to involve lenders as participants in a solution. Here are a few guidelines to consider when restructuring business debt. r Be prepared for meetings, be conservative in your proposals and do not agree to unrealistic proposals or unachievable deadlines r If you draw a line in the dirt, then mean it — do not get caught bluffing r Remember that positive cash flow is paramount — profit and loss are irrelevant r Do not try to solve problems one at a time — you will run out of assets r Understand the tax consequences of your strategy and the potential value of tax losses r Perception and credibility are key – your creditors must trust you, believe that you want to help fix the situation and believe that you are capable of fixing the situation r Understand as best you can the objectives of your lenders and any key vendors — determine what the creditor representative needs to recommend or accept your proposal
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By Mary Prier, APR
As investigators try to determine the source of problems with drywall imported from China, a task force appointed by the National Association of Home Builders is on the case. TBA past President John Ainslie is one of 10 stakeholders chosen for the group, which will determine how NAHB can best advocate on behalf of members dealing with Chinese drywall problems. The task force will also be a resource for the Consumer Product Safety Commission, the lead agency investigating Chinese drywall. Ainslie, president of production at Ainslie Group and a builder developer in Hampton Roads since 1984, also serves on the Virginia State Building Codes Technical Review Board, an appointment from former Gov. Mark Warner. Drywall imported from China from 2004 to 2008 is believed to contain high levels of sulfur and/or other contaminants that emit foul odors and corrode
r In most situations, existing ownership and management are better off having someone else negotiate the deal for them. If you cannot negotiate or sell the deal, then get someone else who can. Scifres, a partner in Williams Mullen, is Tidewater Builders Association’s general counsel. For additional information, contact Scifres at gscifres@williamsmullen.com or (757) 473-5370. SEPTEMBER/OCTOBER 2009
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Shop Talk JES wins top industry awards
Helen Dragas, center and CEO of The Dragas Cos., will become the first company honored by Habitat for Humanity with its “Dream Builder Award.”
Dragas honored for work in workforce housing
Habitat for Humanity of South Hampton Roads, Habitat SHR, named The Dragas Cos. the first recipient of its “Dream Builder Award,” which honors individuals, organizations and companies that continually commit time, resources, leadership and vision to the advancement of affordable workforce housing in South Hampton Roads. “The Dragas Companies has proven that it is possible to build beautiful homes that working families can afford to buy, and they have proven that affordable housing can be profitable,” sid Paul Shelton, president of the Board of Directors of Habitat SHR. Helen Dragas, the president and CEO of The Dragas Cos., will be presented the award at Habitat SHR’s 5th annual Tool Box Bash on Oct. 10, at the Virginia Beach Convention Center. For more information on the Tool Box Bash, call 6400950 or visit www.toolboxbash.org.
love where you live
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JES, a regional foundation repair company, recently won seven awards at the Basement Systems/Foundation Supportworks International Convention, in Hartford, Conn. Among the awards received were several honors for being ranked the No. 1 and No. 2 dealer among the Top 50 Foundation Supportworks and Basement Systems dealers in the world. JES also was recognized as a member of the Foundation Supportworks Visionary Club for contributing to the development of the national network of Foundation Repair Contractors. JES specializes in foundation and structural repair, basement waterproofing, crawlspace moisture control, basement finishing systems and home remodeling.
Amidon named to board of Home and Garden Show Executives International
Sandra Amidon, staff vice president of Homearama, Home Shows and Special Projects at Tidewater Builders Association, was elected to serve on the board of diAmidon rectors of Home & Garden Show Executives International, HGSEI. HGSEI was formed in 1955 to promote excellence and professionalism in home and garden shows. Its members represent more than 50 consumer events across the country designed to provide exhibitors with cost-effective sales and marketing opportunities through person-to-person contact. Amidon produces the annual Mid-Atlantic Home & Flower Show at the Virginia Beach Convention Center, now in its 30th year, and the annual Homearama showcase of homes, now in its 28th year.
TBA member among the top pool and spa builders nationwide
Dominion Pools, in conjunction with Siska Aurand Landscape Architects, were honored with five national ASAP Awards of Distinction for Region 2 during 2008-09. Gold and silver awards were given in the categories of pools 2,000 square feet and over and well as 2,000 square feet and under. They also received the top honor of the Gordon W. Rudd Award of Excellence, which is presented annually to recognize and reward the most beautiful and creative installation of pools and hot tubs across the Region 2 area, which includes Virginia, Maryland, Delaware, and the Outer Banks of North Carolina. There were more than 90 entries in the Gordon W. Rudd Awards of Excellence competition.
TBA member joins Tech alumni
MSA, P.C. President and CEO Robert S. Miller III, P.E., FNSPE was named to the Virginia Tech Via Department of Civil and Environmental Engineering Academy of Distinguished Alumni. Miller is a 1967 graduate of Virginia Tech’s Civil Engineering program. MSA, P.C. is a regional consulting firm specializing in environMiller mental sciences, development planning, land surveying, civil and environmental engineering and landscape architecture. To submit items for Shop Talk, e-mail the items to Sara Steil at ssteil@tbaonline.org or by fax at 420-5539.
Get the home loan you need from the bank you trust. Hampton Roads Office 757.493.6100 One Columbus Center, Suite 240 Viginia Beach, VA 23462 http://mortgage.bankofamerica.com/aleciahfisher Bank of America, N.A., Member FDIC Equal Housing Lender Š 2009 Bank of America Corporation. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. 00-62-0118D 06-2009 AR72208
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Welcome new members ASSOCIATES Bath Fitter/Snyder Home Services Inc. Baths; kitchens Joe Raab .......................... (757) 857-1126 www.snyderhomeservices.com Blackwater Electric Co. Inc. Electrical subcontractors Kimberly L. Hart................ (757) 549-9422 www.blackwaterelectric.com Bonded Builders Warranty Group Additions; insurance (general/home warranty/workers’ comp) Joe Pushak ...................... (703) 582-7727 Concrete America Concrete Ben Hughes ..................... (757) 739-3252 DbD, LLC Architect/building designers; construction management; space planning; project management Dana Franson ................... (516) 456-5423 www.designbydana.com Daves Agency, State Farm Insurance Insurance (general/home warranty/workers’ comp); mortgage/financial companies John C. Daves, Jr. ............ (757) 547-3500 www.johndaves.com
Fehr Mark Inc. Building materials; decks; fences Mark Harrison ................... (570) 739-4422
Streamline Exteriors Inc. Siding; Windows Aaron Bell ......................... (757) 897-6590
Granicrete of Hampton Roads, LLC Counter tops; decorative concrete; flooring Denise Kilgore .................. (757) 966-6826 www.granicretehr.com
Tidewater Realty LLC dba Exit Realty Consultants Real estate Deborah M. Williams......... (757) 227-3444 www.exitrealtyvirginiabeach.com
Majestic Marble & Glass Baths; glass products/mirrors; kitchens; marble (cultured & imported), stone, granite Bobby Medlin ................... (919) 865-3000 www.gomajestic.com Orkin Pest Control Exterminating Caitlin Kalafsky ................. (757) 460-2466 Pinkston Geothermal HVAC/mechanical subcontractors; other services; water & sewer system supplies/ well drilling Jeff Stagg ......................... (804) 749-1964 http://www.fox43tv.com/generic/news/ Premier Appraisal Group Inc. Real estate appraisals Evan Richardson .............. (757) 212-3660 www.pagnorfolk.com ServPro of Chesapeake/ServPro of Hampton Allen Alewine .................... (757) 523-9700 www.servproofchesapeake.com
Tye & Associates LC, Alan Equipment rental/sales Patrick Dorn ..................... (703) 560-7011 www.alantyelifts.com
BUILDERS Bill Ore Builders Builders/developers; home automation; home theater; Structured wiring Les Ore ............................ (757) 431-1210 www.hometheatersbydas.com Kroll Enterprises Inc. Builders/developers Jeff Kroll ........................... (757) 430-8382 MG Homes LLC Builders/developers Kevin Maume .................. (757) 631-6100
HERE TO STAY ASSOCIATES Adalay Bay Advance Mortgage Advance Title & Abstract Aegean Pools Inc. American Insulation Service LLC Ampmor Electric Corp. Anthony & Sylvan Pools Appliance Warehouse Atlantic Community Management Corp. Atlantic Elevators of Virginia Babb Inc., Jason Bay Shore Construction Becraft Plastering Inc. Built to Last CBN Land Development Central Plumbing & Heating Inc. Chesapeake Bay Cabinet Company Chesapeake Bay Contractors Cintas Clark Roofing & Siding Inc. Coastal Pest Control LLC Crestline Realty Corp. Custom Closets & Interiors Custom Home Designs Inc. 26
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Custom Stone Company Inc. Diamond Hill Plywood Dickerson & Smith Law Group Donahoe & Associates Inc., Stephen D. Envision/Elchin Construction Inc. Ferrellgas Floyd’s Tree Service Great Atlantic Real Estate/Property Management Great Bridge Builders Greenbrier Lighting Griffin, Pappas & Scarborough PC Hayden Custom Homes HBAV Benefits Group HD Supply Heritage Bank Hibbs, Inc., Evan C. Horton & Dodd ICI Paints Indoor Air Systems Inc International Tile & Marble Ltd. Jennings Paint Co. Landworks Unlimited Lawrence Painting Corp. Lawrencevill Brick Masonry Supply Lowery Construction Loyola Enterprises Inc.
McCallum Testing Laboratories Inc. McGeein Inc./McGeein Construction Co. Mid Atlantic Fire Protection Mid South Building Supply Midgett Inc., RL Mill End Carpet Shop Mosaic Tile Co., The Move.com National Housing Corp. Newell Lawn Service LLC Norbord Norfolk Redevelopment & Housing Authority Outdoor Designers Precision Spinal Care Inc. Priority Chevrolet/Priority AutoGroup Pristine Pools LLC Quality Enterprises Quality Stone Concepts REICO Kitchen & Bath RSVP Publications Savant Living Sicash/Palms Associates Sign Works Sinnen-Green & Associates Solar Services Southern Tile Distributors Inc.
Big Picture
TBA President Pete A. Kotarides, center, confers with TowneBank Mortgage representatives Mike Poole, left, and Ben Newell, right, after the Builder Breakfast forum. The event sponsors told builders about a new reverse to purchase mortgage program that allows buyers over the age of 62 to purchase a new home without taking on a monthly mortgage payment. Lindsey Rosson, right, tops off a hot dog with relish. Homearama subcontractors were treated to hot dogs, chips, cookies and more, courtesy of Fairway and MidSouth Building Supply Inc., at Culpepper Landing on Aug. 4.
Sprint/Nextel Taylor Plastering Inc., Scott Tidewater Block LLC Tidewater Insulators LLC Tidewater Interior Products Tidewater Interior Wall & Ceiling Inc. Tidewater Mortgage Services Inc. Tres Amigos Vanasse Hangen Bustlin Inc. Virginia Beach Community Development Corp. Virginia Service Company Inc. WAVY-TV 10 Wilmar Winn Nursery Wisco Vinyl/Aluminum Corp.
BUILDERS
3MG Construction Inc. Affordable Homes LLC Anderson Builder Inc., Charlie Balance Builders Inc. Baymark Construction Corp. Belfor-USA Benson Builders Inc. BIL-MAR Construction Ltd. t/a SE Page Custom Homes
TBA President Pete A. Kotarides took part in a “confidence” TV campaign produced by Cox Communications to encourage confidence in the region’s economy. The campaign, which began on Sept. 7, features community leaders touting the benefits of living in Hampton Roads. To view the campaign, visit www.youtube.com and search for “Cox Hampton Roads Confidence Campaign.”
Blount Custom Homes Inc., RL Blue Marlin Development LLC Cape Construction Co. Inc. Crestline Homes LLC Debord Custom Homes Inc. DeFord Companies Inc. Dragas Companies, The Dragas Homes Dunleavy & Sons, T.J. East West Partners Executive Homes Corporation of Virginia Franciscus Homes Inc. GBK Builders Golden Heritage Homes LLC Graf Construction Co. Inc. Harbor Group Management Co. HDS Drywall Service Inc. Hohmann Builders J-Lynn Co. Inc., The Kres Homes L&M Contractors Inc. McQ Builders LLC MEB General Contractors Miller Builder Inc., NB Mitchell Homes Inc. Moody Development
Napolitano Homes Norfolk Building Corp. Oasis Homes LLC Ocean Bay Homes Preston Homes Inc. Princess Anne Builders Inc. Property Endeavours LLC dba SGB Homes R. Savino Custom Homes Residential Concepts Ltd. Richardson Homes Rio Vista Two S, Inc. Ripley-Heatwole Co. Inc./RH Builders Roseland Management Co. LLC Salder Building Corp. Signature Management Corp. Simpson Builders Southeastern Environmental & Construction (SENCON) Summit Construction Corp. Terry/Peterson Residential Cos TJL Enterprises WATAB Builders Waverton Associates Inc. Wendell Homes LLC Wermers Development Inc. Wirth Development Corp. Wyles Builders Inc., MJ SEPTEMBER/OCTOBER 2009
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TBA Calendar OCTOBER
1 Green Building Council meeting 2 Homearama Gala Charity Preview 3-18 Homearama at Culpepper Landing, Chesapeake 13 Remodelers Council meeting 15 Developers Council meeting 20 TMHC Associates meeting 21 TMHC Executive Committee meeting
NOVEMBER 4 5 12
13 16 17
New director orientation Green Building Council Remodelers Council meeting HBAV Board of Directors meeting/ Installation of 2010 Officers/ Hall of Fame Induction, Virginia Beach 2010 Executive Committee planning session TBA Executive Committee meeting TBA Board of Directors meeting TMHC Associates meeting
18 TMHC Executive Committee meeting
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Advertisers’ Index
BB&T ..................................................... 16 Bank of America .................................... 25 BIIA ...................................................... IBC Boxx Systems ........................................ 23 Breeden Co. .......................................... 21 Closet Factory ....................................... 25 Dominion Virginia Power ....................... 24 East Coast Appliance ............................ 17 Ferguson Enterprises .......................... IFC International Jet Charter ....................... 25
Land Planning Solutions ........................ 14 Lawson Realty Corp. ............................. 21 Miss Utility ............................................... 5 Napolitano ............................................. 24 ProSource.............................................. 23 RSVP ..................................................... 28 Spivey Rentals....................................... 28 Sprint ..................................................... 22 Superior Equipment Sales .................. BC Virginia Natural Gas .............................. 19
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