Blog believes one parcel of land  located “west” of the Prescott airport is for CTEC expansion;  Board says  second parcel of land is for “student” housing project; recall Board had previously approved construction of faculty housing village of 10 units  in Prescott Valley

On June 8, 2023, the Yavapai Community College District Governing Board met in secret executive session to approve more land purchases on the west side of Mingus mountain.  The  additional land will continue the expansion of the footprint of the College on that side of the County.  As an excerpt from the formal agenda, which appears below, shows both pieces of land were identified as located in Prescott.

the conclusion of the confidential executive session, two motions were presented. The first motion involved the acquisition of property located in Prescott to the “west of the airport.” Following a second to the motion, no further discussion took place that could have enlightened residents about the expenditure. The Board unanimously voted in favor of approving the motion. (See video clip by clicking here.) 

It is suspected that the aforementioned motion pertains to the expansion of the Career and Technical Education Center (CTEC) at the Prescott airport. It is worth recalling that executives from the Community College discreetly included a last-minute request for ten million dollars in the 2023-24 budget for a vaguely worded project at CTEC. Despite the substantial nature of this request, it proceeded through the budget process in May with minimal public discussion or explanation. Remarkably, the Board members failed to pose any meaningful public questions regarding it.

The second motion on June 8, presented after the secret meeting closed and the Board returned to the public, was focused on pursuing the purchase of property designated for “student housing,” according to a comment by Board Chair Deb McCasland made just before adjourning..  Once again, after a second to the motion, no discussion occurred among the Governing Board, and the vote on the motion was unanimous. (See video clip by clicking here.)   

Unfortunately, during the public portion of the June 8 meeting, no questions were raised, depriving the public of the opportunity to gain insight and clarification about the purchases from their elected representatives. Consequently, community members are left to engage in speculation concerning the amount of taxpayer funds being allocated to these projects and whether there exists any substantiating data to support such expenditures. The lack of transparency in this regard leaves the public in a state of uncertainty and unable to make informed judgments regarding the use of their tax dollars.

A  notable observation is that these land acquisitions were not clearly deliberated upon during the public budget hearing held in May. This omission raises concerns about the transparency and inclusiveness of the budgetary process. The absence of any discussion or mention of these specific purchases during the public forum further fuels the public’s curiosity and skepticism regarding the decision-making behind these expenditures. It highlights the need for greater accountability and disclosure to ensure that the public’s voice is heard and that their concerns are adequately addressed in matters of budget allocation.

Houses built by students at the Verde Valley Campus will be transported to Chino Valley Center where it is anticipated they will have water, electrical and sewer hookups

With Yavapai Community College’s executives maintaining a high level of secrecy regarding their operations, the residents of Yavapai County and the College’s District Governing Board are left with limited information about the College’s plans and actions. Therefore, the announcement of the tiny house project during the May 16 District Governing Board meeting came as a surprise to most people.

While the available information is limited, it seems that according to the gathered information, the current plan of the College is to relocate three student-built tiny homes from the Verde Campus carpenter shop to the Chino Valley Center. These tiny homes, with an area of 200 square feet, will be made available for rent to employees at a monthly rate of $700, which includes utilities. In the event that employees do not rent them, the houses will be offered to students.

The May 16 Governing Board meeting briefly mentioned the project, but the majority of detailed information about the tiny house project became public knowledge through a news story aired on Phoenix TV Channel 3 on May 31. During the report, journalist Casey Torres provided additional details, stating that the tiny homes would be 200 square feet in size and constructed by students. Torres also mentioned that the rental cost for these houses would be $700.00 per month, inclusive of utilities.

During an interview with Channel 3 on May 31 regarding the project, Clint Ewell, the Vice President of Finance and Administrative Services, appeared to prioritize the needs of students over employees. Ewell emphasized that there are students who wish to enroll at Yavapai Community College but face challenges due to the lack of affordable housing options available to them.

Channel 3 also reported that the Community College’s goal is to have at least three tiny homes for rent at the Chino Valley Center by the spring 2024 semester.

Although not clear, it appears the three tiny houses will join three 3D cement printed houses that may eventually be completed at the Chino Valley Center.  So far though, after expending hundreds of thousands of dollars on the 3D home printing project over the past several years, the College has yet to produce one fully completed 3D house at the Chino Valley Center.  It is still working on the first one.

Yavapai Community College’s annual budget does not clearly indicate the estimated cost of the tiny house  project.

You may view a clip of the report by Ms. Torres by clicking here.  

The College released few details about numbers of apartments it anticipates leasing and subsidizing or the amount of the subsidy in its June 8, 2023, press release. The background and history of the Government subsidized 192 apartment mostly HUD financed project, which was first approved in April 2018 by Cottonwood’s City Council, has been added to this story by the Blog 

On June 8, 2023, Yavapai Community College announced it had partnered with Prescott Valley’s Fain Signature Group to rent apartments for Verde Campus/Sedona Center students and employees at a complex now under construction adjacent Highway 89A in Cottonwood.  The College released no other details regarding the number of apartments it anticipates leasing or any estimate of the amount of subsidy it would provide for those who leased them.

In the College’s press release, Brad Fain, CEO of the Fain Signature Group, was quoted as follows:  “We are excited to work with Yavapai College to design housing options for our educational institutions, their employees and students. The college and its leadership have been immensely helpful in helping us understand their challenges and how we can work together to find attainable housing solutions. The college’s collaboration in this regard will benefit all employers in the region as we begin to collaborate with industry, trades, first responders, medical professionals, as well as cities and towns to create solutions that makes sense for our communities, residents, and environment.  We are also grateful to have strong partners in the City of Cottonwood, Arizona. At every turn and every challenge, the City of Cottonwood has worked with us to find solutions to help bring housing to their community.”

Yavapai Community College President, Dr. Lisa Rhine, was also quoted in the press release. She said that “the housing availability and affordability situation in our county has reached a point where Yavapai College is losing valuable faculty, staff, and prospective students. YC will continue to identify and invest in solutions for this issue. We are thankful for the Fain Signature Group’s vision and willingness to partner with the College to create solutions.ai College. The Inspiration Apartments in Cottonwood will provide another housing option for employees and students who work at or wish to attend the College’s Verde Valley Campus or Sedona Center.”

The Blog has researched the history of the project, including funding, which appears directly below.

The idea of building an apartment complex on land adjacent highway 89A only a block or so from the Northern Arizona Health Center in Cottonwood began in April 2018. That month  the Cottonwood City Council unanimously approved a plan to rezone 9.01 acres of land situated adjacent State Route 89A from Commercial and Industrial to Planned Area Development. The Council approval allowed for the construction of a new housing development, which was called “Inspiration.”

There were initial problems  in getting the project going because of  COVID and obtaining approval from the Federal Government for funding from the Housing and Urban Development agency.  The builder, Sedona developer Bob Porter, needed a substantial amount of federal loan assistance to support construction. After struggling with HUD and COVID delays,  Mr. Porter resubmitted his development plan and partnered with the  Fain Signature Group in Prescott Valley, to begin the project. The Fain Group  had  completed a project using similar HUD funding on the west side of Mingus Mountain.

The project got underway almost three years after the area was rezoned when a groundbreaking ceremony was held in Cottonwood  on December 7, 2021. Initially it was hoped the first apartments would be ready by the spring of 2022.  However, as of June 1, 2023, the complex remains under construction and the occupancy date as yet is uncertain.  At least one set of apartments in the complex appear from the outside as nearing completion and the developer says he hopes to have occupancy of some of the apartments by July 1, 2023.

The planned development is currently described as featuring 192 units, all for lease, ranging from 694-square-foot one-bedroom apartments to 1,181-square-foot three-bedroom apartments, with the most common size being two-bedroom units. There will be garages in some of the units, and each unit will have its own balcony.

Prices for the apartments are advertised as ranging from $1,575 to $2,235.

The apartments are described as “workforce” housing.  Porter has told the local media that  the housing development is “affordable, but not in the way of capital `A’ affordable.” Porter hopes to keep prices down to make the units usable for working and middle-class tenants. He has said that the project is not classified as Affordable Housing in the official way used by the U.S. Department of Housing and Urban Development, which has strict regulations on certain housing for rental to low-income tenants.

“It’s affordable, but no tests, no subsidies,” Porter said in interviews last year.

According to local media, Porter is receiving millions in assistance from the Federal Housing and Urban Development agency (HUD). The press has reported he is receiving a 221(d)(4) loan from HUD for $37 million, representing 82% of the cost of the $45 million project.

Based on Blog research, Section 221(d)(4) is a federal program that refers to a specific provision of the United States Housing and Urban Development (HUD) Act of 1968. This section pertains to the mortgage insurance program administered by the Federal Housing Administration (FHA) under HUD.

In general, HUD insures lenders against loss on mortgages for the construction or substantial rehabilitation of multifamily properties with at least five units. The properties can be market rate, low-to-moderate income, subsidized, or single-room occupancy (SRO) housing. The loans are interest only during the construction period and have a fixed rate. The program has eligibility criteria for the properties, the borrowers, the contractors, and the third party reports. The program also requires adherence to prevailing wage standards, annual audit of operations, and limitations on commercial use and occupancy.

Porter has said that dealing with HUD added to the delays in the project. “In late 2018 and early 2019,” he said, “before we could make our final HUD submittal, we had to do quite a bit of ‘value engineering’ to reduce costs. That entire process added four to six months to our schedule. When we finally received our initial HUD approval in the spring of 2019, we were approved at a 4.65% interest rate, and interest rates were dropping sharply. So, we made the decision to resubmit to HUD in order to achieve a lower interest rate, which we were ultimately successful in doing.”

In an interview with Verde Independent reporter Vyto Starinskas published June 11,  2023, Vice President of Finance and Administrative Services  Clint Ewell provided the following additional information:    The Community College will rent 10 units, five 2-bedroom and five 3-bedroom apartments.  “We plan to sublet these apartments to our employees, and will offer them to YC students if there is not enough employee demand.”

Ewell also said the Community College is concerned about the lack of attainable housing for the workforce near the median-salary range. “We are exploring many options and would be happy to discuss possible long-term public servant housing solutions with city and town leaders,” he is quoted as saying. “We are especially concerned about public servants including college employees, K-12 teachers, firefighters, police, health care providers, etc..”