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utlook
www.elpasobuilders.com
2014: issue 1
Builder Confidence
Slips One Notch
2014 International
Builders Show
February 4-6
Las Vegas
High Performance Building Zone and
will feature top building science
experts leading a series of live,
interactive
construction
demonstrations showcasing the latest
methods, tips and tricks used in high
performance building. Demonstrations
will range from 19.2-inch and 24-inch
on center framing techniques to
advanced flashing and air sealing
methods.
More Information-Packed Master
Sessions. The number of Master
sessions offered has increased from 3
NAHB has been conducting for 25
years, the NAHB/Wells Fargo Housing
Market
Index
gauges
builder
perceptions of current single-family
home sales and sales expectations for
the next six months as good, fair or
poor. The survey also asks builders to
rate traffic of prospective buyers as
high to very high, average or low to
very low. Scores for each component
are then used to calculate a seasonally
adjusted index where any number over
50 indicates that more builders view
conditions as good than poor.
All three HMI components declined
ATTENTION BUILDERS:
Builders Outlook
2014 issue 1
ONEOK, Inc.
Texas Gas Service provides natural gas to more than 620,000 customers in the state of Texas, including customers in Austin, El Paso, the Gulf Coast and the Rio Grande Valley. Texas Gas Service is a division of ONEOK, Inc. (NYSE: OKE), a diversified energy company. ONEOK is the general partner
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www.texasgasservice.com. 2014
2014 issue 1
Builders Outlook
Presidents Message |
Frank
Torres
ElPasoDisposal
President,
El Paso Association
of Builders
Happy New Year to everybody. I would like to thank all of you members for giving
I am honored to be able to serve
me the opportunity to lead your association;
as your president for 2014. Thanks to all of you that attended the installation, and
special thanks to our sponsors, Sierra Title Company, El Paso Building Materials,
Tropicana Homes, Lawyers Title, Carefree Homes, Stewart Title, Foxworth
Galbraith and MTI Ready Mix (Tony Mullen) for sponsoring the open bar one more
year.
Special thanks for Ray and Margaret and the professional womens council for
planning, working and making the installation a successful one.
Congratulations to all the individuals and companies that received awards for
their leadership and loyalty not only to the Association but the building industry.
There are mixed feelings and predictions on what 2014 will bring to our industry.
Some experts say that 2014 will be a better year than 2013; others see it
differently, because of the adjustments we have to do to comply with the new city
codes, energy codes, impact fees, buyers qualification rules, increases on building
materials, lots availability, and so much more. Home building will be a challenge
for sure. Regardless of what the New Year will bring us we must remain united and
increase our membership. We must this and more to be successful.
At the first Board of Directors meeting, every director agreed to bring at least two
new members by April. I will extend this challenge to every member and ask you
to just one more new member. Bring them in and mentor them to success within
the association. Remember YOU are the association, it belongs to you. Help the
Association to help you and your companies, participate, be part of it, take
advantage of your membership, come to the meetings and let us know how we can
help. I also would like to invite all of you to participate on the Spring Home and
Garden Show, sponsored by the EPAB. Let me say thanks to all of you that are
displaying your services and or products at this show. It is my personal challenge
to each one of our members to get into the show. What can you do with the
thousands of potential prospects? Sell baby, sell!
On another note the IBS (International Builders Show) is coming to Las Vegas
February 4, 5, and 6. Its combined with the Kitchen and Bath show for the first
time. Should be fun and an adventure. If you haven't made reservations please
make them ASAP the show is filling up quick. See you in Vegas Baby.
772-7495
Showroom:
2131 Missouri
915 533 6045
Builders Outlook
2014 issue 1
Perspective
Ray Adauto,
Executive
Vice President
EPAB
2014 issue 1
Builders Outlook
Industry News
Housing Markets
Continue to Show
Gradual
Improvement
New-Home Sales
Post Solid Numbers
in November
6Sales of newly built, single-family
homes declined 2.1 percent to a
seasonally adjusted annual rate of
464,000 units in November from an
upwardly revised strong pace of
474,000 units in the previous month,
according to data released today by
the U.S. Department of Housing and
Urban Development and the U.S.
Census Bureau. Except for October
2013, this is the strongest sales pace
since July of 2008.
This figure is consistent with
NAHBs member surveys, which show
increasing confidence in the market,
said Rick Judson, chairman of the
National Association of Home Builders
(NAHB) and a home builder from
Charlotte, N.C. Meanwhile, the very
low supply of new homes on the
market and tight credit conditions for
home buyers show that builders are
still cautious about getting ahead of
themselves.
The previous three months for newhome sales have all been revised up,
and the final quarter of 2013 is shaping
up to be the best quarter since the
second quarter of 2008, said NAHB
Chief Economist David Crowe.
Historically low interest rates,
affordable home prices and a healing
economy are bringing buyers back into
the marketplace.
Regionally, new-home sales were
mixed in November. Both the West and
the Northeast showed improvement,
with respective increases of 31.1
percent and 15.2 percent. New-home
sales in the Midwest dropped by 26.6
percent and the South posted a 9.1
percent decline.
The inventory of new homes for sale
declined to 167,000 units in November,
which is a 4.3-month supply at the
current sales pace.
Builders Outlook
2014 issue 1
2014 ISSUE 1
Builders
Builders Outlook
TAB contracts class spells out risks and rewards for builder members
When Scott Whisenant of StrucSure
Home Warranty called to get a contracts
class going in El Paso he told Ray Adauto
that the new Texas Association of Builders
(TAB) contracts were better than ever. I
wanted to make sure that the El Paso
builder members understood that they put
themselves and their companies at risk by
not using these contracts, he told the
Outlook. When I talked with Ray we
coordinated the training with the author of
the contracts and perhaps the most
knowledgeable attorney in the field, James
Rudnicki, he continued. So it was that on
January 15 the builder members had the
updated contracts class. Builder members
came out and some brought their sales staff
with them to get a better understanding of
the protection the TAB contracts offer. I
brought my sales team with us so that they
could hear firsthand how important it is to
make sure we are protecting our position as
a builder, said Greg Bowling of Tropicana
Homes.
Randy Bowling echoed his
brothers comment. I want to know certain
things about the contracts and hearing it
from James gives me confidence in using
the contracts, he said.
Rudnicki, partner in the DFW and Austin
law firm of Bush, Rudnicki and Shelton is
considered the top authority on the TAB
contracts and home building law. I have
been involved in builder contracts for over
Board Orientation
The new members of the Board of
Directors that were healthy took a Saturday
morning board orientation class in early
January. The flu season forced a couple of
newbies to miss the meeting but they will be
brought up to date soon. The orientation
began with a breakfast meeting at I Hop
where the new board members were joined
by EPAB president Frank Torres and
immediate Past President Edmundo Dena.
The directors then moved to the EPAB office
to take part in the seminar. Topics ranged
from what is expected of the board to the
risks involved in being a board member.
The presentation was facilitated by
Executive Vice President Ray Adauto.
Those in the class included Bret Thompson,
Foxworth Galbraith Lumber; Dan Ruth,
Millennium Homes; Orlando Rodriguez, EP
Mass Media Advertising; Rigo Mendez,
Board Meeting
The first meeting of the year for the
Board of Directors was held at the
association office on January 8, 2014.
The normal topics of the association
were discussed with emphasis on a
couple of issues and the need to induct
a couple of board members who
couldnt go to the installation.
The Public Service Board issued a
report on impact fees with a
recommendation to increase the fees
by over double per lot. The board
listened to several current and past
members of the CIAC committee and
discussed the potential ramifications of
such a move. Past TAB President and
Past Chairman of the CIAC Bobby
Bowling IV gave a report and
challenged the board to fight any
increases proposed. The mere fact
that the PSB has suggested increasing
the fees is in my opinion absurd,
Bowling told the Outlook. The impact
would be catastrophic at this point given
the local building climate and increases
in other fees and regulatory charges,
he concluded.
New members were admitted to the
association and discussion was also
An artists rendering shows what a future shopping center may look like at Redd Road and S. Desert
Blvd., from the marketing brochure at www.rjlrealestate.com. (Concept designs are subject to
change.)
This site plan for a project on Paseo Del Norte (www.centergyretail.com) has been color coded to
show planned structures, in orange. Outparcels are in beige.
Bonds.
City Council will review the 2014 Public
Art Plan at its January 7, 2014, meeting
and may vote on whether or not to
approve the item.
Content provided by
El Paso Development News
visit: elpasodevnews.com
Closer Look:
Improvements
Following up on ramp improvements
made in recent years along I-10
between Airway Boulevard and Viscount
Boulevard, transportation planners now
want to tweak the ramps and lanes.
The ramps were changed two years
ago from traditional diamond interchanges to X interchanges to try and
alleviate traffic at signals along the
Gateways.
Preliminary plans include making
changes to the lanes along both
Gateway Boulevard East and West and
on Interstate 10, including possible
addition of lanes. The cost estimate is
$12 million with construction slated for
2015.
Loop 375/Spur 601 Direct
Connector
This project will add a direct connector ramp to an interchange that is quickly becoming one of El Pasos busiest
during rush hour commutes. Currently,
the intersection of Spur 601 and Loop
375, two freeways, is a traditional diamond intersection. The proposed project will create a ramp that connects
northbound Loop 375 to westbound
Spur 601.
The overall project will eventually
create a total of four direct connector
ramps, but the first is seen as the most
important by transportation officials.
Once completed, drivers will no longer
have to go through a traffic light to get
onto Spur 601.
The ramp will cost about $15 million
to build with the environmental study
and schematic design set for completion in spring of 2014. According to the
presentation given to County officials,
the project could be begin construction
earlier than the scheduled 2019 date.
I-10/Loop 375 Direct Connectors
Three ramps have been constructed
and three others are now under construction at the I-10/Loop 375 interchange in Far East El Paso. This project aims to build the final two direct
connectors at the site.
The final ramps will connect southbound Loop 375 and northbound Loop
375 to eastbound I-10. The environmental study and engineering schematics have already been completed as
part of previous ramp construction. The
project is also one that may be expedited but currently has a possible construction start in 2019.
Delta Overpass
Delta Drive near Downtown El Paso
may see additional traffic as part of the
massive Border Highway West project
which will bring new ramps to the area
near Coles Street. Transportation officials are now planning to build a Delta
Drive bridge that will take traffic over
railroad tracks.
The area of focus is to the southwest
of Bowie High School where new ramps
will take traffic to and from Loop 375
east of Downtown. The $8 million project could begin construction in 2015.
I-10/FM 1110 Bridge Replacement
The Farm-to-Market Road 1110 overpass bridge at I-10 outside of the city
limits will be replaced and widened in
this project. A brand new, six-lane overpass will be constructed. The overpass
is located at the Clint exit on the interstate and also the southern end of
Darrington Road.
Construction on the $12 million project may begin in 2015.
FM 1110 Construction/Upgrade
A related project will widen and
expand FM 1110 from I-10 to SH 20
(Alameda). Currently, the road that
meanders to the Clint area is a two-lane
thoroughfare. The project will create a
four-lane, divided arterial for approximately three miles.
The $38 million project could see
construction start in 2015.
Eastlake Boulevard/Old Hueco
Tanks
Three projects combine to affect the
same thoroughfare just outside of the
city limits. First, one of Horizon Citys
main connections to I-10 will be getting
an extra lane. Eastlake Boulevard will
be expanded from four to six lanes from
the interstate eastward to Darrington
Road. The approximately $15 million
project will stretch about 3.6 miles and
could see construction start in 2015.
Another project will expand the new
six lane Eastlake eastward and connect
it to Horizon Boulevard near Horizon
High School. The $23 million project
may also begin construction in 2015.
And on the western terminus of
Eastlake (at I-10), a project is in the
works to build a four lane road westward and connect it to North Loop.
Preliminary costs for Old Hueco Tanks
Road are $12 million with a construction
date set for 2015.
Rojas Widening
Another project outside of the city limits is the plan to widen Rojas Drive from
four to six lanes. The $4 million project
stretches from the El Paso city limits to
Eastlake Boulevard, or about 0.6 miles.
It should be ready for construction in
2015.
Greg/Edgemere Blvd. Extension
Edgemere Boulevard ends about 0.7
miles east of Zaragoza Road in Far
East El Paso. This project will extend it
another 1.7 miles, approximately, to the
east and connect it to Greg Road in the
Montana Vista area of the county. The
$1 million project could break ground in
2016.
Arterial 1
This project will create a stillunnamed thoroughfare from Eastlake
Boulevard to Pellicano Drive. The nearly two mile road will travel north and
south and will brush the western edge
of the Horizon Airport. The $7.5 million
project may see construction start in
2016.
Manuel F. Aguilera Highway
The final project on the Mobility Plans
list is to construct a non-freeway road
in the vicinity of Tornillo in the far eastern section of the county. The Manuel F.
Aguilera Highway will help ready the
area for possibly increased traffic when
the new Tornillo Port of Entry is opened.
The $17 million project may break
ground in 2015.
Financing for the $392 million worth
of projects will come from multiple
sources. The Countys approximately
$120 million comes from $72 million
generated from increased vehicle registration fees and $48 million from its
Transportation Reinvestment Zone.
The Town of Horizon is kicking in $5
million and the City of Socorro another
$9 million from their respective
Transportation Reinvestment Zones.
The remaining $258 million will come
from funds leveraged by TXDOT, the
Metropolitan Planning Organization, and
other sources, according the Plan.
The Camino Real Regional Mobility
Authority is expected to develop and
manage the majority of he projects. The
Authority was formed in 2007 by the El
Paso City Council and has helped several projects be realized in the city,
including Spur 601 and the Americas
Interchange.
10
Builders Outlook
2014 issue 1
The Economy
New mortgage
rules for this
year
By Jill Schlesinger, Tribune Content Agency
Retire Smart
2014 issue 1
11
Builders Outlook
Program Highlights
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defective, or poor workmanship in your work
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Builders Outlook
2014 issue 1
2014 Issue 1
13
Builders Outlook
www.elpasobuilders.com
www.epbuilders.org
Membership News
UPCOMING EVENTS |
FEBRUARY 4-6
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LAS VEGAS, NV
FEBRUARY 12
BOARD MEETING
11:00
GENERAL MEETING
12:00
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SODA SPONSOR |
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Courier
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915-549-4533
or
915-478-2404
11395 James Watt, Suite A-11 79936
915-633-8002
14
Builders Outlook
2014 issue 1
Associates Council
Sam Shallenberger
Western Wholesale Supply
Trends
Whats trending in hardware?
David De Rego
Hardware Specialities &
Glass Co., Inc.
Builders
utlook
www.elpasobuilders.com
www.epbuilders.org
6046 Surety Dr. El Paso, TX 79905
915-778-5387 Fax: 915-772-3038
execuTive oFFicerS
FrankTorres President
GMF Custom Homes
edgar montiel vice President
Palo Verde Homes
carlos villalobos Secretary Treasurer
Palo Verde Homes
Sam Shallenberger Associates chair
Western Wholesale
edmundo Dena - immediate Past President
Accent Homes
ray Adauto executive vice President
El Paso Association of Builders
Jay Kerr -Attorney of record
couNciL/commiTTeecHAirS
Associates council
Sam Shallenberger
Build PAc
Randy Bowling
Desert Green Building council
Javier Ruiz
Land use council
Sal Masoud
Young Designer Award
John Chaney
remodelers council
Rudy Guel
membership retention
Mike Santamaria, Greg Bowling
Finance committee
Carlos Villalobos
Womens council
Lorraine Huit
ADviSorYToTHeBoArD
J. Crawford Kerr, Attorney, Firth, Johnston
& Martinez
BoArDoFDirecTorS
Beverly Clevenger, Automated Division 6 Builders, Inc.
Leti Navarette, Custom Dream Homes
Kathy Parry, Hunt Communities
Edgar Garcia, Bella Vista Custom Homes, Inc..
Bud Foster, Southwest Land Development Services
Juanita Garcia, ICON Custom Home Builder, LLC
Walter Lujan, DAWCO Home Builders
Joey Najera, Joseph Custom Homes
Rigo Mendez, Mission Homes
Nick Bombach, Casas de Leon, LLC
Lydia Mhouli, Crown Heritage Homes
JJ Vasquez, Pacifica Homes
Dan Ruth, Millenium Homes
Ken Wade, El Paso Building Materials
Ruben Orquiz, MTI Ready Mix
Kathy Carrillo, Pioneer Bank El Paso
Henry Tinajero, WestStar Bank
Chuck Gabriel, Carpets West
Ted Escobedo, Snappy Publishing
John Chaney, Passage Supply
Joe Bernal, Employee Benefits of El Paso
Linda Troncoso, TRE & Associates
Margaret Livingston, Lawyers Title of El Paso
Orlando Rodriguez, Mass Media Advertising, Inc.
Bret Thompson, Foxworth Galbraith Lumber
Chris Worm, City Bank Texas
Sal Masoud, Del Rio Engineering
TABSTATe DirecTorS
Randy Bowling
Greg Bowling
NATioNAL DirecTorS
Bobby Bowling IV.
Demetrio Jimenez
NATioNAL ASSociATioN oF
Home BuiLDerS
(800) 368-5242
TexAS ASSociATioN oF
BuiLDerS
(800)252-3625
Bobby Bowling, IV
Rudy Guel
Anna Gil
Bradley Roe
Bob Bowling, III
E. H. Baeza
Hershel Stringfield
Pat Woods