Builders

utlook

www.elpasobuilders.com

2015: issue 4

Parade of
Homes
2015 Kick-off Event Sells Out
The spring 2015 Parade of Homes opened on April 17
with the preview party event signaling the start of the two
week Parade. Over 800 tickets were purchase to the
sold out event. The evening, while a little cooler than
normal for this time of year saw guests enjoy the newly
completed Parade Homes that are fully furnished and
decorated. The private party also included a catered
meal and full complement of adult and non-adult
beverages.
The show entrance was also glammed with the new
red carpet backdrop, a colorful wall with the builders
association and neeuhome.com logos prominently
displayed. Guests were encouraged to take a picture in
front of the curtain and utilize social media to send the
word out that they were at the party.
See and Read More> Page 7

2015: Housing Recovery Slow and Steady

Forecasters looking for pace to pick up next year
Solid employment gains, attractive mortgage
rates, a growing economy and pent-up demand will
help keep the housing market moving forward
throughout 2015 and into next year, according to
economists who participated in yesterdays National
Association of Home Builders (NAHB) 2015 Spring
Construction Forecast Webinar.
This should be a good year for housing, buoyed
by sustained job growth, rising consumer
confidence that is back to pre-recession levels and
a gradual uptick in household formations, said
NAHB Chief Economist David Crowe. We expect
2016 to be even better, due to a significant amount
of pent-up demand and an economy that will be
entering a period of reasonable strength and
consistency.
Over the past seven years, Crowe estimates the
slow recovery and uncertainty in the job and
housing markets resulted in 7.4 million lost home
sales. While some of these sales will never take
place, this does indicate how many sales were lost
as fewer households decided to move. We expect
at least some of these to return in the form of new
home sales as job and economic growth continue to
firm.
A key demographic to help jump-start this process
should come from the millennials. The share of firsttime home buyers has traditionally averaged around
40 percent, but in the aftermath of the housing
downturn it now stands at just under 30 percent.
First-time buyers are expected to provide a boost to
the housing market, as the unemployment
differential between young people and others is
shrinking, Crowe noted.
Single-Family on the Rise
Turning to the forecast, the NAHB Remodeling
Market Index, which averages ratings of current
remodeling activity with indicators of future activity,
stands at 57 in the first quarter of 2015 and has
been at or above 50 most of the past two years. A
reading above 50 indicates that more remodelers
report market activity is higher (compared to the
previous quarter) than report it is lower.
NAHB is projecting that residential remodeling
activity will increase 2.3 percent in 2015 over last
year and rise an additional 2.4 percent in 2016.

Housing demand is now

being driven by population
growth and employment
and income growth, said
Denk. We are
reconnecting to underlying
fundamentals. We really
have turned the corner.

Single-family housing production is expected to

post a 9 percent gain in 2015 to 704,000 units and
jump an additional 39 percent to 977,000 units in
2016.
On the multifamily side, production ran at 355,000
units last year, what could be considered a normal
level of production, and is expected to continue in
that range or modestly higher through 2015 and
2016.
New Home Price Growth Fastest in Coastal Areas
Focusing on new home sales, Sam Khater,
deputy chief economist at CoreLogic, said that sales
volume is weak, but pockets of strength exist.
New home price growth is fastest in the coastal
states and eight of the top 10 healthiest new sale
markets are in the Carolinas and Texas, said
Khater.
Of the top 100 new-home sale markets, Houston
leads the pack at 2,000 sales per month, followed
by Dallas and Atlanta which are running at about
half that pace. In terms of volume, the bulk of the
concentration is in southern markets.
Nashville and San Jose stand out as the fastest
growing markets, and Atlanta and San Antonio are
the best large markets, said Khater.
Only three new-sale markets are larger today than
in 2000Nashville, Oklahoma City and San
Antonio.
We Really Have Turned the Corner
Also delving beneath the national numbers, NAHB
Senior Economist Robert Denk said that the
housing recovery continues to vary by state and
region.

Housing demand is now being driven by

population growth and employment and income
growth, said Denk. We are reconnecting to
underlying fundamentals. We really have turned the
corner.
The strongest housing markets are centered in
several energy-producing states, including North
Dakota, Texas, Oklahoma, Louisiana, Wyoming and
Idaho.
The recent decline in oil prices is not hurting
housing, said Denk. We havent seen it yet. We
still expect energy output to be higher at the end of
this year than last year.
Other states exhibiting strong employment and
housing growth include North Carolina, South
Carolina, Tennessee, Washington and Colorado.
Using the 2000-2003 period as a healthy
benchmark when single-family starts averaged 1.34
million units on annual basis, NAHB is projecting
that single-family production, which bottomed out at
an average 27 percent of normal production in early
2009, will rise to 61 percent of normal by the fourth
quarter of this year and climb to 81 percent of
normal by the end of 2016.
In another way of looking at the long road back to
normal, by the end of 2016, the top 40 percent of
states will be back to near normal production levels,
compared to the bottom 20 percent, which will still
be below 75 percent.
What we are seeing, no matter what bucket you
are in, the numbers are getting better, said Denk.
Theres a broader recovery all around.

Builders Outlook

STAY SAFE.
CALL 811 BEFORE YOU DIG.
If you have digging or excavation work to do, remember to call 811 at least
two business days in advance.
Natural gas and other utility lines may be buried beneath the surface. By calling
811, utility crews can mark locations of underground lines at no charge. The
markings are done in paint and will eventually wash away. Marking line locations
can help prevent you from accidentally damaging a natural gas line or another
utility line.
Always call 811 before you dig. It can help keep you and your construction crew
safe, and failing to do so can result in a fine.*
* Texas Utilities Code 251.201 Civil Penalties

2015 issue 4

2015 issue 4

Builders Outlook

Presidents Message
Edgar Montiel
President,
El Paso Association
of Builders

Another month is in the books and

it was just as busy as the last one.
These President Messages keep
sneaking up on me. It seems that
just as soon as I hit the send button
Ray is asking me for the next one.
Since my last message, the big
ticket items that have occurred are
the
Spring
Pachanga
Golf
Tournament, our General meeting,
and the launch of the 2015 Spring
Parade of Homes. Our General
Meeting was once again sold out
and a huge success. Our guest
speakers were from the El Paso Inc.
and they offered amazing insight in
to their publication. Needless to say,
I am now a subscriber. The Spring
Pachanga on April 10th was a blast.
The weather held up nicely and
people seemed to have a lot of fun.
Our Spring Parade of Homes is

Business Opportunities Abound at EPAB

currently underway at The Village of
Rio Valley in the Upper Valley at the
corner of Westside and Borderland.
It will run through May 3rd. So far, it
has been an overwhelming
success. We had close to 600
people at the opening night party
then 1,100 on Saturday and Sunday
with the majority of those that
Sunday. That is incredible for the
builder participants as well as our
sponsors. The Parade features six
very distinctive homes that offer a
little bit of everything. Architectural
styles range from Traditional to
Transitional Prairie School to
Craftsman. The Village of Rio Valley
is unique in itself offering a
combination
of
commercial,
multifamily, and single family build
sites. The community park is
amazing with its basketball court,

play equipment, skate park, large

grassy area, and many trees.
Eventually, the community will
feature an orchard. The idea is to
work, live, and play in the same
community.
I would like to personally thank our
Immediate Past President, Frank
Torres of GMF Homes, for
coordinating this amazing event. I
ask you to buy him, and his lovely
wife, a tall cold one if you run in to
them anywhere. I would also like to
recognize Ray and Margaret Adauto
for managing the ticket booth,
opening/closing
the
event,
marketing, paying the bills, and
keeping us builders in line and on
time. This event would not be
possible without our wonderful
sponsors (Foxworth Galbraith,
Morrison, Sierra Title, Interceramic,

Lawyers Title, Whirlpool, First Light

Federal Credit Union, InterNational
Bank, and Dominguez Insurance
Agency) and amazing builders (BIC,
New Traditions, Palo Verde, Pointe,
Rio Valley, and Winton).
As far as our industry is
concerned, single family closings
were up in March, interest rates
remain low, and the reduced MIP
and loosened requirements have all
gone in to affect. All of these
continue to be catalysts for buyers
to go out and buy. Remember to
LIKE the El Paso Builders
Association Facebook page and
visit our new website when you are
perusing the internet. Thank you for
supporting your association and
best of luck to each of your
businesses.

Well Get You

Home
Your Stewart Westside home team.

Experience the service and synergy of our

Westside team. Everyone works together
to make your closing efficient, accurate
and downright enjoyable.
WEST 5500 North Desert, Suite A-2 (915) 225-8300
stewart.com/el-paso

Builders Outlook

2015 issue 4

Perspective
Ray Adauto,
Executive
Vice President
EPAB

The ability to plan and produce a

Parade of homes requires many
different elements. First and
foremost you must have an available
subdivision, a willing developer and
interest from builders. Once thats
established then everything is just a
matter of planning, reviewing the
plan, changing the plan, accepting
that the original plan isnt going to
work and then executing the
unplanned plan.
What I mean here is that you have
to have a vision, and then plan to that
vision while allowing for changes to
the plan and maybe even the vision.
Case in point is the latest edition of a
Parade. We originally had buy in
from the developer (Jack Winton and
the Winton Group) to get 8 to 12
homes in a newly established
subdivision called Rio Valley. Next
was a meeting with potential builders
who once they heard the plan either
voted to commit or left the room
never to be heard from again. Of the
original 9 builders we were able to

Successful Parade of Homes begins with a plan

give the vision to six. A winter holiday

themed Parade of Homes, with
festive holiday cheer and presents,
and Santa, and well you see that
plan went out with the Christmas
tree. Couldnt quite get everyone on
board. So we moved it to March,
scrapped that, and ended up with a
do or die date of April 18- to May 3.
Do or die, not the best words for a
planner, but we had to put up or shut
up. We put up as did these
magnificent six builders and the
developer.
Our meeting in January laid it out,
get the homes ready or we cant do
it. Time is not a friend to a show like
this as the planning included logistics
most people would shy away from.
The good news was that Frank
Torres, aka Mr. Parade, was willing to
handle the deep duty of the preview
party, set up the location and move
the ticket booth in place. The
development was gearing up and the
homes were being finished. And like
magic, on April 17 the street came

alive with the preview party and was

jammed from the gate opening to the
closing. Frank, his wife Isela,
Margaret and me worked all day to
put the event on, then until nearly
1am Saturday cleaning and adjusting
for the public opening at 11 that
morning. The weather cooperated in
spite of the cool it wasnt windy.
Food was good, as was the music.
But the stars were and are the
Homes, those beautiful man-made
structures many want but few will
ever have. A Parade Home, shining
with new stuff, mixed with old stuff,
and a show stopping mix of both.
Our first weekend was HUGE and
even through the first full week the
visitors came. Weather forced us to
tighten down the hatch a few days,
but going into the last week of the
show were happy to report good
traffic, a contract on a home, and lots
of happy visitors. Like I said a show
like this requires a lot of different
things to go right, and thank God,
most have this time around. We owe

our volunteer ticket takes lots of

Kudos; the builders agents have
been truly professional and
supportive; and of course we wouldnt
have a Parade without Edgar,
Edmundo, Carlos, Sergio, Antonio,
Mark, Herschel, Scott and Jack
Winton. Nope wouldnt have a
Parade without the continuous help
from Margaret, who makes sure the
gate and ticket booth is ready and
manned even if she has to do it
herself. Thanks to our Partners,
Sierra Title; Foxworth Galbraith;
Morrison Supply; Interceramic and
Builders Source. Our special
sponsors First Light FCU, Inter
National Bank, and Dominguez
Insurance Agency who stepped up to
the plate. Our agency EP Mass
Media for the advertising work. Like I
said, the plan eventually comes
together. Without folks like these Ive
mentioned however, nothing would
be done or could be done. Thats
the plan and Im sticking to it.

2015 issue 4

Remodelers
Confident
The National Association of Home
Builders (NAHB) Remodeling Market
Index (RMI) posted a reading of 57 in
the first quarter of 2015, off slightly
from the historically high level of 60 in
the last quarter of 2014, but above the
key break-even point of 50.
An RMI above 50 indicates that
more remodelers report market activity
is higher (compared to the prior
quarter) than report it is lower. The
overall RMI averages ratings of
current remodeling activity with
indicators of future remodeling activity.
The RMI was 59 in the Northeast, 54
in the Midwest, 56 in the South and 62
in the West.
Remodelers remain positive about
the gradual pace of market
improvement, but that confidence was
tempered by a severe winter and
continued labor shortages, said
NAHB Remodelers Chair Robert
Criner, GMR, GMB, CAPS, a
remodeler from Newport News, Va.

Builders Outlook
Clients continued to call for
consultations for home remodeling
jobs at the beginning of 2015.
Small renovation jobs continued to
show strength. The home
maintenance and repair component of
the RMI increased four points to 64 in
the first quarter, the highest reading on
record. Overall, the current market
conditions of the RMI declined two
points to 58 this quarter.
The RMIs future market conditions
index fell to 55 from 60 in the previous
quarter. All four of its
subcomponentscalls for bids,
amount of work committed for the next
three months, backlog of jobs and
appointments for proposals
decreased slightly from the previous
quarters reading.
Like the rest of the home building
industry, remodelers are facing the
pressure of increasing costs for labor
and materials, but an RMI above 50
indicates that they still feel positive
about the market on balance, said
NAHB Chief Economist David Crowe.
The strength of the RMIs
maintenance and repair component

was likely due in part to the harsh

weather conditions that struck many
parts of the country during the first
quarter and necessitated repairs.
For more information about
remodeling, visit nahb.org/remodel.

Housing Production
Up 2 Percent
Nationwide housing starts rose 2
percent to a seasonally adjusted
annual rate of 926,000 units in March
from an upwardly revised February
reading, according to newly released
data from the U.S. Commerce
Department.
Single-family housing production
rose 4.4 percent to a seasonally
adjusted annual rate of 618,000 in
March while multifamily starts dropped
2.5 percent to 308,000 units.
Todays reading demonstrates that
the housing industry continues to
make gains at a gradual pace, said
NAHB Chairman Tom Woods, a home
builder from Blue Springs, Mo. There
are still some price sensitive buyers

who remain on the fence.

Builders are being careful not to
add inventory beyond expected
demand, especially as they struggle
with increasing costs for lots, labor
and materials, said NAHB Chief
Economist David Crowe. However,
pent-up demand, low mortgage
interest rates and a growing economy
should keep the housing industry
moving forward throughout the rest of
the year.
Regionally, combined single- and
multifamily starts increased the
Northeast and Midwest, with
respective gains of 114.9 percent and
31.3 percent. Housing production
dropped 3.5 percent in the South and
19.3 percent in the West.
Led by a drop in the volatile
multifamily sector, overall permit
issuance declined 5.7 percent in
March to a rate of 1.039 million.
Multifamily permits fell 15.9 percent
to a rate of 403,000 while single-family
permits rose 2.1 percent to 636,000.
Regionally, the Northeast registered
a permit gain of 39.8 percent, while
the Midwest, South and West posted
respective losses of 4.4 percent, 14.2
percent and 4.3 percent.

Builder Confidence
Rises Four Points

A W A R D E D

TEXAS BUILDER OF THE YEAR

2013

We build so you can GROW

Builder confidence in the market for

newly built, single-family homes in
April rose four points to a level of 56
on the National Association of Home
Builders/Wells Fargo Housing Market
Index (HMI) released today.
As the spring buying season gets
underway, home builders are confident
that current low interest rates and
continued job growth will draw
consumers to the market, said NAHB
Chairman Tom Woods, a home builder
from Blue Springs, Mo.
The HMI component index
measuring future sales expectations
rose five points in April to its highest
level of the year, said NAHB Chief
Economist David Crowe. This uptick
shows builders are feeling optimistic
that the housing market will continue
to strengthen throughout 2015.
Derived from a monthly survey that
NAHB has been conducting for 30
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 registered
gains in April. The component charting
sales expectations in the next six
months jumped five points to 64, the
index measuring buyer traffic
increased four points to 41, and the
component gauging current sales
conditions rose three points to 61.
Looking at the three-month moving
averages for regional HMI scores, the
South rose one point to 56 and the
Northwest held steady at 42. The
Midwest fell by two points to 54 and
the West dropped three points to 58.

Builders Outlook

2015 issue 4

The Economy

2% is the new 3%
Last year, GDP growth was a
mediocre 2.4%. While it was the
best growth
since 2010
when GDP
growth was a
sparkling
2.5%, it means
yet another
year, the ninth
in a row, of sub
3% GDP
growth. There
Elliot Eisenberg
has never been
a run of such weak GDP growth
since record keeping began in
1930. Yes, there were terrible
periods but they were all blessedly
brief, never lasting more than two
or three years and they always
occurred during recessions. In our
case, the recession ended in June
2009. What is going on? The fact
is that our weak GDP growth is not
surprising at all, let me explain.
GDP growth is composed of two
things, growth in the labor force
and growth in labor productivity.
GDP rises when more people work,
and better yet, when they work
more productively. Productivity
growth is particularly important
because it boosts living standards.
GDP growth was very good
following WWII because annual
labor force growth grew
dramatically from 0.5% in 1950 to
almost 2.5% in 1975. As a result,
the prime-aged working population,
those between the ages of 25 and
54, grew from 60 million to almost
80 million in 25 short years. While
population growth then began to
decline, it remained above 1%
through 2003. As a result, the
prime-aged population continued
growing, hitting 122 million in 2003.
As a matter of fact, the labor force
grew much faster than the
population during the 1970s and
1980s due to the huge influx of
women into the labor force. As a
result, the prime-aged working
population grew by over 3% per
year during the 1980s.
Since 2003, population growth
has slowed further and is now
barely 0.7%. Moreover, the

Boomers have begun retiring in

large numbers and the number of
working men and women has, for a
number of reasons, continued to
slowly decline. As a result, the size
of the prime-aged working
population has essentially flat-lined
since 2003. As a matter of fact, it
peaked in 2007. If the size of the
prime-aged working population is
flat, its hard to experience rapid
GDP growth even if labor
productivity growth is good.
Regrettably, labor productivity
growth has not been particularly
good of late. But first some history:
from 1948 through 1973 labor
productivity grew at an amazing
average annual rate of 2.8%. Add
to that rapid labor force growth, and
its no wonder GDP growth
averaged 4.1% per year. Between
1974 and 1990, labor productivity
grew by an anemic 1.4% percent
but given good population growth,
GDP growth was a solid 3.0% per
year. From 1991 through 2007,
productivity perked up to a very
respectable 2.4%, and despite
weak population growth, GDP still
averaged 3% per year.
Since the start of the Great
Recession, however, we have
experienced anemic labor
productivity growth of, again, 1.4%
per year and a trivial increase in
the working population. As a result,
GDP growth has averaged a dismal
1.2% per year. Luckily the primeaged working population is again
starting to rise, which is good. The
million dollar question is How will
labor productivity growth perform?
Will it be a replay of the boom
years of 1974 through 1990, the
crummy years since 2007, or more
likely something in between?
While nobody knows for sure, GDP
growth should drift upwards as
demographics become more
favorable and labor productivity
hopefully rises.

Elliot Eisenberg, Ph.D. is President of

GraphsandLaughs, LLC and can be
reached at Elliot@graphsandlaughs.net.
His daily 70 word economics and policy
blog can be seen at www.econ70.com

ElPasoDisposal

772-7495

r
e
h
s
a
W
T

n
e
m
a
n
r
u
o
T
Thursday May, 21
3PM EPAB Parking Lot

Join us for an afternoon of good,

friendly washer throwing competition!
$35.00 per 2 man team

Sponsorships
are available
Proceeds benefit:

ome
Your New H va

Su Casa Nue
best time
NOW is the w
ne
to buy your o!
Pas
El
in
home

Ahora es el
ra
tiempo pa
comprar
eva
una casa nu
en El Paso!

Help support the El Paso

Association of Builders and reach
your target market!

Your New Home

Su Casa Nueva
The most complete home buying
guide in both English & Spanish

This issue will include:

New mortgage information
Unique dual language layout
Great advertising opportunities
Call Margaret today at 778-5387

2015 ISSUE 4

Builders

Builders Outlook

utlook on the scene |

Parade
Continued from page 1

By Ray Adauto, EPAB

Its a wonderful night with so much to

see, said Belinda Velasquez, one of the
guests enjoying the preview. I think there
are some favorites, but my big surprise is
how different each home is to the others
making the site really unique, she
continued. Her husband, Roger was also
really happy with the show. I agree, the
different styles and colors are really great to
look at, fun too, he said. The theme, if
there is one, is that this subdivision will not
look like a cookie cut plan, but rather offer
unique architectural styles in each block.
What this new urbanism really showcases
is that you can have homes look different
yet function well in a new design like what
we have here, said Scott Winton,
developer of Rio Valley. The night is full of
party, but the true stars of the show are the
homes, he continued.
The Winton Group is responsible for the
subdivision where there will be single
homes, duplexes, quadraplexes, multifamily and light retail all within walking
distance of each other. This neighborhood
where the Parade Homes are has small
front and back yards, and rear entry through
and alley. What we enjoy about this is that
cars are parked in the back of the home
and dont clutter the streets, said Edmundo
Dena, President of Accent Homes. We
built our Rio Valley parade home to best
utilize the tighter lots, yet give the
customers a sense of expanse, he
continued. The Rio Valley home is a
Craftsman style home, reminiscent of
homes found in Kern or Manhattan Heights
in Central. We want this to be the new
version of something comforting, something
most have either lived in or visited
sometime in the past, Dena said.
The Parade of Homes is sponsored by
Sierra Title, Foxworth Galbraith,
Interceramic Tile and Stone, Morrison
Supply and Builders Source. I think that
these homes are what people are looking
for, especially those young professionals
looking for a little something different, said
Angelique Roman of Sierra Title. The
evidence in her statement was the traffic
count for the first weekend of the Parade,
as over 1700 people trekked through the
gates to see the homes.
The homes continue their run open
weekdays 4-7 pm and on Saturday and
Sunday 11 am to 7 pm. Its easy to find as
you travel on I-10 to Artcraft, turn west onto
Artcraft and head to Westside Drive. Make
a right turn and stay on Westside until you
see the Parade site on your left. Tickets are
only $5 adults, kids 12 and under free.
Active and retired military are free
compliments of First Light FCU. School
employees, teachers, administrators,
custodial and office staff also free
compliments of Inter National Bank. Police,
fire, EMTs and other Law enforcement are
sponsored by Dominguez Insurance
Agency. All must show I.D. for the free
admission.
Additional information can be found by
logging on to
www.elpasoparadeofhomes.com or
www.elpasobuilders.com

el paso development news

north Hills Crossing to Open in June

Rendering

Northeast El Paso's largest retail

development in years is scheduled to
open in June. North Hills Crossing, at
the corner of Gateway South and Martin
Luther King Jr Boulevard, has been
under construction since August and will
add over 200,000 square feet of retail
space.
The power center will include retailers
including Walmart Market, Ross,
Marshall's, and Big Lots.
River Oaks Properties, the developer
for the project, made the announcement
in a press release highlighting an overall
$200 million, five-year retail expansion
plan within the Sun City.
Phase I of the plan is expected to be
completed by the end of 2015 and
includes 500,000 square feet of space,
which includes North Hills Crossing but
most of which is spread across four new
shopping centers opening in East El
Paso.
They include: Las Tiendas located at
Zaragoza and Edgemere; Shops at
Tierra Este, located at Tierra Este and
Montana; Tierra Del Norte located at
Tierra Este and Zaragoza; and a Home
Depot anchored Shopping Center
located at Zaragoza and Montwood,
according to the press release.
No specific opening date in June was
disclosed for North Hills Crossing and
most likely depends on grand opening
for individual retailers.

Dig In!
'Fountains' Announces Chuy's Mexican Restaurant Location
A Tex-Mex restaurant popular in
central and east Texas's metros will
open its first El Paso location in
June. Chuy's Mexican Restaurant
will have a location at the Fountains
at Farah on the East Side.
According to a press release, the
restaurant will include an Elvis
Shrine, the La Chihuahua Bar with
framed photos of dogs, a "school" of
hand-carved wooden fish, metal
palms trees, and a hubcap-covered
ceiling.
We are thrilled to open our doors
in El Paso, states Fabian Alba,

Area Supervisor for Chuys El Paso,

in the press release. Were looking
forward to sharing the Chuys
experience with El Pasoans and Im
positive this community will
appreciate our passion for food and
our fun and quirky style.
Its Fountains location will be along
the lifestyle Promenade section in
the lower part of the center. Chuy's
was founded in Austin in 1982 and
has more than 60 locations in 14
states. The El Paso restaurant will
be the furthest west for the
company.

Sample Location

LAnD StuDy:
nE El Paso neighborhoods in Franklin Mountain Foothills possible
The foothills of the Franklin
Mountains in Northeast El Paso
could see more residential
development in the coming years
after the City Plan Commission
approved a land study for the area.
"Sierra del Puerte" includes about
175 acres of land just west of
Magnetic Street.
According to the land study, the
developer plans to construct 319
residential units on 70 acres. The

site plan shows residential streets

winding through the development,
with arroyos interspersed
throughout.
Another 87.7 acres will be
dedicated to open space, which
includes the arroyos.
Access to the neighborhoods may
come from an extended Hondo
Pass Drive which currently ends
just west of Magnetic. The
extension will turn south and

eventually connect to Edgar Park

Drive. Zircon Drive, which currently
contains a sizable gap, will connect
its two halves and continue
westward to the inner
neighborhoods.
The development will be built in
phases, with possible completion in
2019.

Builders Outlook Issue 4 2015

Content provided by
El Paso Development News
visit: elpasodevnews.com

Developing Story:
Will City of El Paso Buy Controversial Kern View Estates?
The City of El Paso will consider a
proposal this week to purchase a
15.57 acre property on a hill
overlooking the Kern and Mission
Hills neighborhoods. A developer had
previously put forward controversial
plans to construct housing on the
plot of land.
Kern View Estates includes 60
attached single family homes on the
side of Crazy Cat Mountain, just east
of Piedmont Drive.
The City Plan Commission
approved the site development plan
in July 2014, but it was never
considered by City Council despite
multiple appearances on the agenda
in the last few months, including a
separate item this week. The City
received letters and a petition
opposed to the project.
According to the agenda item, the
City is poised to pay the owner
$405,000 for the property, which is
lower than the appraised value of
$450,000. The City considers the
difference of $45,000 a "donation" by
the owner for tax purposes.
Funds for the purchase come from
the 2012 Quality of Life bonds
approved by voters, ensuring the
land will be used as open space. It
also provides connectivity to the
adjacent Palisades open space area
previously acquired by the City.

More about Kern Place Estates

Previously posted uly 21, 2014

Will City Green-Light

Latest Proposed Kern
View Estates Design?
A date has been set for a City
Council decision regarding a hillside
development in West El Paso. The
developer is seeking approval for
changes to the detailed site
development plan for the property, a
project which is slated for the slopes
of Crazy Cat mountain overlooking
the historic Kern Place district.
Kern View Estates Unit Two will
now contain 60 attached singlefamily residences, under the new
plan, which will line a small loop,
according to a site plan included in
the latest application. There will also
be a clubhouse located at the site.
The change comes years after City
Council approved a previous
development plan, which contained a
proposal for 17 single-family
residential lots, with the smallest lot
occupying 16,357 square feet. The
smallest lot in the new plan will be
986 square feet in size.
Setbacks in the new plan will be
reduced to zero, while the maximum

allowable structure height will

increase to 37 feet. Parking will be
available via ground level garages at
the base of the residential buildings.
Another change is the access point
to the neighborhood. The newest
plan indicates that Metetuye Lane
will be the street used to access the
development, off of Okeefe Drive.
Previously, plans were to extend
Piedmont Drive northward into the
development.
The City has received two letters
of opposition and a petition with 107
signatures against the latest
proposal by the developer, which

received similar opposition for the

previous development plan four
years ago. City Plan Commission
members were split when they voted
on the new plan in May, approving
the plan on a 4-3 vote.
City Council will consider the item
at its August 19, 2014 meeting. The
property is owned by Piedmont
Group of El Paso. There is no
mention of a timeline within the
application.

10

Builders Outlook

2015 issue 4

Expert Advice

Affordable Care Act Update

Joe Bernal
Employees
Benefits of
El Paso

As this issue went to press, the Supreme

Court was hearing arguments in King v.
Burwell, which could decide the fate of the
Affordable Care Act (ACA). Meanwhile,
other changes have affected administration
of the ACA.
No More Skinny Plans: In past issues,
weve discussed so-called skinny plans, or
medical plans that large employers have
argued would fulfill their requirement to
provide affordable medical coverage to
employees. The ACA requires individual
and small group health plans to cover
certain preventive services and to cover a
list of essential health benefits. Large
employer plans dont have this requirement.
Instead, they must provide coverage that is
affordable and meets minimum value
standards, which means covering at least
60 percent of the total cost of medical
services for a standard population.
Skinny plans cover the required
preventive services, but do not provide
hospitalization benefits, which is one of the
most costly essential benefits. These
plans save moneyand some meet the
minimum value standard.
In late February, the Department of
Health and Human Services (HHS)
finalized a proposed rule that requires
employer-sponsored health plans to cover
hospitalization benefits. It said a plan that
does not offer hospital benefits is not a
health plan in any meaningful sense. This
means large employers offering only a
skinny plan would be subject to the ACAs
penalties of up to $3,000 per employee.
Employees covered by these plans now
officially lack qualifying coverage, which
would make them subject to penalties.
Many of these workers are in low-wage
industries, such as restaurants and retail.
HHS is granting them relief, allowing them
to receive subsidies to buy comprehensive
individual coverage.
HHS is allowing employers that signed
contracts before November 4, 2014 to
retain these plans for this year.
Health Reimbursement Arrangements
Okayfor a Few More Months: Small
employers with health reimbursement
arrangements (HRAs) have gotten a
temporary reprieve from the Obama
administration. In late February, the Internal
Revenue Service and Treasury Department
announced that they will not levy
penalties against small businesses that use
standalone HRAs until July. This will give
small employers more time to change their
plans.
HRAs allow employers to reimburse
employees for qualified healthcare costs
with before-tax dollars, benefitting both
employer and employee. Since the
implementation of the Affordable Care Act
(ACA), though, employers using standalone
HRAs are subject to fines. HRAs have
annual limits, which violates the ACAs
prohibition on health plans with annual
limits.
The federal agencies overseeing the
ACAthe Departments of Health and
Human Services, Treasury and the IRS
determined that employers can offer an
HRA to active employees if they are also
covered by a group health plan that
complies with ACA rules. Under the new
rules, an HRA can reimburse non-essential
health benefits, such as premium

expenses. Employers can offer

standalone HRAs to retirees.
IRS Begins Working on Details of
Cadillac Plan Tax: To fund coverage
subsidies, the ACA includes a tax on
so-called Cadillac health plans. These
high-cost health plans insulate
individuals from the cost of their health
care.
The ACA specifies the 40 percent
excise tax will apply to plans that cost
more than $10,200 for self-only
coverage and $27,500 for family
coverage. In insured plans, the health
insurer will pay the tax; in self-insured
plans, the plan sponsor, usually the
employer, will pay. The IRS must create
rules implementing the tax, which goes
into effect in 2018, so many details
remain unknown at this point.
In a notice issued on February 23, the
IRS defined applicable coverage for
purposes of the tax. The notice clarified

that it does not matter whether the

employer pays all, or any premiums, for
the plan. Even if the employee pays for
coverage with after-tax dollars, if the
employer sponsors the plan, the tax will
apply. Types of plans the Cadillac tax
will apply to include:
Health FSAs (flexible spending
arrangements)
Archer Medical Savings Accounts
Health Savings Accounts (not
including certain contributions by
individuals)
Government group health plans
covering civilian employees. (This
excludes military coverage.)
Coverage for on-site medical clinics,
except for clinics that provide only
de minimis medical care
Retiree coverage
Multiemployer plans
Indemnity plans, when payment for
coverage is excluded from gross

income or a deduction is allowed.

This would include most critical
illness coverage, dread disease
insurance (such as cancer
insurance), and hospital indemnity
plans or other health plans that pay
a specified amount per occurrence
or claim.
The IRS also states that it expects
that executive physical programs and
health reimbursement arrangements
(HRAs) will likely be included in the
definition of applicable coverage.
The Department of the Treasury and
IRS are inviting comments on this initial
notice and will issue further notice on
the calculation and assessment of the
tax.
For more information on the
Affordable Care Act and how it affects
your organizations benefits programs,
please contact us.

2015 issue 4

Builders

11

Builders Outlook

utlook on the scene |

Spring Golf
tournament
played in
beautiful
weather
By Ray Adauto, EPAB

The 2015 Spring golf tournament

presented by Haskins Electric was a
resounding success according to golf
chairman Sam Shallenberger. We were
able to enjoy a beautiful day that just got
better with all the friends who joined us at
Horizon Golf Club, Shallenberger told the
Outlook. Over 20 four man teams
competed in a par-is-your-friend round of
18. I had a wonderful time out here
today with all the great members and new
folks I got to meet, said Chuck Haskins,
owner of Haskins Electric. I cant believe
how nice the day turned out, he
continued.
While golf was the excuse for getting
together a lot of on the course antics
provided for some entertainment. This
format is for fun, not the real serious
PGA-type guy who thinks nothing of
coming in with a new course record even
though they have a 30 handicap, one
anonymous golfer said. The course is in
really good shape where just a year ago
the course was challenged due to a long
time abuse. I think the course will be to
your liking, quipped Julio Hernandez,
golf pro who took over the course
recently. Employee Benefits of El Paso
sponsored the $10,000 hole in one
contest, which unfortunately no one hit
this year. I hope that one day well be
able to award the money because this is
a fun time with friends, not just a golf
tournament, Joe Bernal said.
There were a lot of first time
participants, especially some of the
newest members including Henry Bankey,
President of Summerlin Energy out of Las
Vegas and now El Paso. What a
wonderful experience today with getting
to know some of our fellow members and
finding out that the truth is we are
amongst good people, Bankey told the
Outlook. Summerlin provided some
dazzling optic yellow t-shirts to everyone
who signed in. Also new to the event
was Montez Love from Love Engineering.
He said he was amazed at the turnout
and the comradery everyone showed.
This is a fun event and I for one am
happy to be out here with everyone.
Great time and awesome weather, Love
told the Outlook.
This was a fun time as so many have
found out through the years. I enjoy
being able to visit with my builder friends
and customers who are out here. I had a
great time and was able to enjoy the time
with them, Henry Tinajero from WestStar
Bank said.
In the end the scores were turned in,
the tally made then the prizes were
awarded. Long drives sponsored by
Pioneer Bank; Target on the fairway
sponsored by HUB International; and of
course the hole in one which once again
was sponsored by Employee Benefits of
El Paso, which again went unclaimed.
Plans are already in motion for next
spring. If you missed this one make sure
to make plans to join us then.

12

Builders Outlook

General meeting features talk on

newspapers presented by El Paso Inc.
The April general meeting
featured the owner and
editors of the El Paso Inc., the
only independent business
newspaper in the El Paso
area. Representing the paper
Wherrett
was Publisher Tom Fenton,
Editor Wendy White Polk, and
the Associate Publisher
Secret Wherrett. All three
gave a rousing description of
the demise of newspapers
Polk
except in very special
circumstances like those
presented by specialty newspapers like
the El Paso Inc... Mr. Fenton showed the
audience how the circulation for the only
daily English language newspaper, the El
Paso Times, has steadily declined while
costs have increased and revenue
decreased. Subscriptions, he said, lead to
advertising which is the lifeblood of any
newspaper. Ms. Polk talked about her
years in broadcasting including stints with
NBC on the east coast where she worked
and managed personalities that you would
recognize even today. Her trip to being El
Paso Inc.s editor has been interesting she
said, something of learning curve to make
sure the stories are accurate and timely.
She pointed out how the El Paso Inc.s
reporters often break news that is
repeated and sometimes borrowed by
other media outlets without crediting the
Inc... Overall the presentation was well
received as Secret told some facts about
how the Inc. is evolving and growing,
making sure not to lose its audience.
Transitions in names, copy and style is
about surviving in the print news business
she told the group. Over 65 members and
guests were in attendance at the El Paso
Club for the meeting.

2015 issue 4

Give your customers

the option of the sun
Now more than ever,
El Paso home buyers
are planning for the
future.

Border Solar can help

you oer your
customers solar power
as a sensible
alternative.

Crossing to Clean Energy

7365 Remcon Circle

El Paso, TX 79912
(915) 6134168

The future starts

today.
follow us on twitter and
facebook:
BorderSolar

2015 Issue 4

13

Builders Outlook

www.elpasobuilders.com
www.epbuilders.org

Membership News
UPCOMING EVENTS |
MAY 13
BOARD MEETING
12 NOON
EPAB OFFICE

MAY 21
WATCHA TOURNAMENT
EPAB OFFICE

JUNE 10
BOARD MEETING
11:00
GENERAL MEETING
12:00
EL PASO CLUB CHASE BANK
BUILDING

MAY 21
WASHER WATCHA TOURNAMENT
3:00
EPAB PARKING LOT

RENEWALS |
DALTILE
GOODMAN DISTRIBUTION
FIRST LIGHT FCU
JAMES L. ELLIS, CPA, PC
POST TENSION STEEL
TEXAS TITLE
GARNER TURFGRASS
BANK OF TEXAS

SODA SPONSOR

ROCKY MOUNTAIN MORTGAGE

BELLA HOMES
FORTUNE CUSTOM HOMES
CROWN HERITAGE HOMES
EPT LAND COMMUNITIES
JOE BERNAL,
EMPLOYEE BENEFITS OF EL PASO
D. R. HORTON

HAKES BROTHERS TEXAS, LLC

NEW START INSULATION
GC MIRROR CO.
CMF ENTERPRISES
BAIN CONSTRUCTION
FRANK X. SPENCER

|
Thanks to our APRIL SODA SPONSOR: JOE BERNAL
EMPLOYEE BENEFITS OF EL PASO

Your Online Showroom for

New Homes
brought to you by:

Jaimes
Courier
Service,Inc.

915-549-4533
or
915-478-2404
Bonded, insured for
your peace of mind.

14

Builders Outlook

2015 issue 4

Associates Council

Sam Shallenberger
Morrison Supply

The golf tournament at Horizon Golf

course went off like wed hope for. It
was a beautiful day with just enough
breezes to make the heat go away, the
greens a little friendlier and the food
taste that much better at the end. I
want to say thanks to the Professional
Womens Council and Margaret for
signing us in. Gina Avila and Kathy
Rose and Terry Martin were so ably
assisted by Patrick Tuttle, who by the
way, came out and helped in spite of his
banged up right hand. Our friends at
Summerlin and so many others gave us

a really cool little goody bag. And the

course was in real good shape. The
beer flowed, and I hear so did the
jungle juice, that by the midafternoon
we were all happy happy and ready for
prizes. We changed things up a little
and did drawings for the prizes, that
way everyone had a good time and
everyone had a chance to win
something nice.
To the tee box
sponsors thank you. Thanks to Joe
Bernal for the hole in one; to Luis
Rosas for the Target fairway; and to
Kathy Carrillo for the long drives. My

Atrium Homes wins International

Metalcraft Competition
FAYETTEVILLE, GA Atrium
Homes of El Paso, and member of the
El Paso Association of Builders has
won an award for outstanding
craftsmanship in an international
competition sponsored by the National
Ornamental & Miscellaneous Metals
Association (NOMMA). The event was
open to over 500 member firms
throughout the U.S. and in 7 foreign
countries.
Atrium Homes received the GOLD
for forged gates and doors.
The presentation was made at a
special banquet in Valley Forge, PA,
March 14, during NOMMA's 57th
annual conference. The Ernest

Wiemann Top Job Awards Competition

is an annual contest that recognizes
outstanding work in the ornamental
and miscellaneous metals industry.
To win an award, entrants must
submit photos and a description of
their work. This material is then
publicly displayed in a gallery where
NOMMA member firms then vote.
Winning a Top Job award has special
meaning, since it represents a "voice
of approval" from industry peers.
Atrium Homes can be reached at
915-490-0839. Congratulations to
Atrium Homes.

buddies at WestStar Bank did the

driving and putting range. To our Big
Sponsor Chuck Haskins, Haskins
Electric, man you out did yourselves.
Thanks for the support. To everyone
who played thank you. Get ready for
the fall tournament; weve got
something special for that one. By the
way, if you dont know already, Ray had
a spill and is still working his way
through a broken knee cap. Good thing
he couldnt play. Come to think of it that
was good for us. Just kidding.

Advertise your
business to the
home building
industry
The Builders Outlook is the official publication of the El Paso Association of
Builders. Our award winning monthly newspaper is the only publication to target
El Paso home builders and related businesses.
Widely distributed throughout the city and available to readers online, the
Builders Outlook is an important advertising medium for any business that want
to reach this valuable market.

Call 778-5387 today for more information

The options builders asked

for are right here.
Developed with the backing of the strongest insurance carriers
serving the Texas building industry, the exclusive TAB endorsed
insurance program offers new flexible options and rates that are
more competitive than ever before.

Program Highlights
t
i"w
SBUFE
BENJUUFE
JOTVSBODF
DPNQBOJFT
TFWFSBM
PQUJPOT
BWBJMBCMF
t
(-
PFSJOH
DPWFSBHF
GPS
QSPQFSUZ
EBNBHF
UIBU
SFTVMUT
GSPN
GBVMUZ



defective, or poor workmanship in your work
t
(-
MJNJUT
PG
VQ
UP

NJMMJPO
BOE
IJHIFS
BWBJMBCMF
t
&YQBOEFE
QPMJDZ
GPSN
GPS
DPNNFSDJBM
QSPKFDUT
t
#VJMEFST
3JTL
NBTUFS
QPMJDJFT
NPOUIMZ
SFQPSUJOH
BOOVBM
BOE
POF
TIPUT
t
8PSLFST
$PNQ

UXP
IJHIMZ
DPTUFFDUJWF
QSPHSBNT

t
&YDFTT
-JBCJMJUZ
GPS
DPNNFSDJBM
HFOFSBM
DPOUSBDUPST
t
$PNNFSDJBM
6NCSFMMB

Contact your local approved agent today!

El Paso, Permian Basin and Surrounding Area
)6#
*OUFSOBUJPOBM
*OTVSBODF
4FSWJDFT
-BODF
7BO
%FNBO
$-$4

www.builderagentnetwork.com
www.hubinternational.com

2015 Issue 4

15

Builders Outlook

Builders

utlook
www.elpasobuilders.com
www.epbuilders.org

6046 Surety Dr. El Paso, TX 79905

915-778-5387 Fax: 915-772-3038
execuTive oFFicerS
edgarmontiel,President
Palo Verde Homes
carlosvillalobos,vicePresident
Pointe Homes
Donrassette,Secretary/Treasurer
Rassette Homes
SamShallenberger,Associateschair
Morrison Supply

TABSTATeDirecTorS
Randy Bowling
Greg Bowling
Sam Shallenberger
NATioNALDirecTorS
Demetrio Jimenez
NATioNALASSociATioNoF
HomeBuiLDerS
(800) 368-5242

TexASASSociATioNoF

JayKerr-Attorneyofrecord
Firth, Johnston, Bunn & Kerr
couNciL/commiTTeecHAirS
Associatescouncil
Sam Shallenberger
BuildPac
Randy Bowling
Landusecouncil
Linda Troncoso
YoungDesignerAward
John Chaney
remodelerscouncil
Rudy Guel
membershipretentiion
Patrick Tuttle
Financecommittee
Kathy Carrillo
Henry Tinajero

ADviSorYToTHeBoArD
Jay Kerr, Firth, Johnston, Bunn & Kerr
James Martinez, Law Office of James Martinez

BuiLDerS
(800)252-3625

2014BuildermemberofTheYear
FrankTorres
GMf Homes
2014PatcoxAward
BretThompson
foxworth Galbraith Lumber
2014AssociatedofTheYear
JoeBernal
Employee Benefits Of El Paso
2014JohnShatzmanAward
Cindy Bilbe, Stewart Title
HonoraryLifemembers
Mark Dyer
Wayne Grinnell
Don Henderson
Chester Lovelady
Cliff C. Anthes
Anna Gill
Brad Roe
Rudy Guel
E H Baeza
PastPresidents
committedtoServe
Greg Bowling
Bobby Bowling, IV
Kelly Sorenson
Rudy Guel
Mark Dyer
Anna Gil
Mike Santamaria
Bradley Roe
John Cullers
Bob Bowling, III
Randy Bowling
Edmundo Dena
Doug Schwartz
Hershel Stringfield
Robert Baeza
Pat Woods

BoArDoFDirecTorS

Antonio Cervantes, BIC Homes

Beverly Clevenger, Automated Div. 6 Builders
Bret Thompson, foxworth Galbraith Lumber
Bud foster, Southwest Land Development Servises
Dan Ruth, Millienium Homes
Henry Tinajero, West Star Bank
Joe Bernal, Employee Benefits Of El Paso
John Chaney, Passage Supply

ePABmissionStatement:
The El Paso Association of Builders is a
federated professional organization representing
the home building industry, committed to
enhancing the quality of life in our community by
providing affordable homes of excellence and
value.
The El Paso Association of Builders is a
501C(6) trade organization.

John Dorney, Dorney Security

Kathy Carrillo, Pioneer Bank
Kathy Parry, Hunt Companies
Leti Navarette, Custom Dream Homes
Linda Troncoso, TRE & Associates
Robert Najera, Joseph Homes
Ruben Orquiz, MTI Ready Mix
Walter Lujan, Dawco Builders

Residential Specialists
Tract Homes Custom Homes

Bobby Bowling IV.

FrankTorres,immediatePastPresident
GMf Homes
rayAdauto,executivevicePresident
Executive Vice President

For All Your Electrical Needs

2015 Builders Outlook

is published and distributed for the
El Paso Association of Builders
by Ted Escobedo, Snappy Publishing
ted@snappypublishing.com
El Paso Texas 915-820-2800

Total Customer
Satisfaction

915-208-9313
602-708-7560