Building mutually — Beneficial relationships exist between city and its builders

Editor’s note: This is the second in a series of articles looking at residential growth in O’Fallon.

O’Fallon isn’t just the place where home developer Denny Blumberg wears his hard hat.

It’s also where the president of Huntington Chase Homes hangs his hat at night, when he goes home after a long day at work in the home development industry.

“I have builders from St. Louis and other areas call me up asking what it’s like building in O’Fallon, and I tell them,” said Blumberg who develops about 50 houses in O’Fallon annually. “Is it easy? No. Is it cheap? No. But the city of O’Fallon is consistent with its ordinances and building codes. You know what you’re getting into before, and it isn’t a surprise, and that’s one big thing I like about it here is the consistency in the processes.”

Blumberg said while O’Fallon’s building fees are high and its ordinances and building codes are strict, they ensure a better product, keeping the quality high.

“It’s been good, the city’s been good. I mean the city has controlled growth,” Blumberg said. “Their inspections are extremely thorough and good. These homeowners are investing a lot of money into these homes, so why not give them top notch.”

So, newer and less established builders who think they are going to come here and just set up shop and throw some houses together, can think again, he said.

“I don’t think we have any homes that are the same, honestly,” Blumberg said. “We do custom builds based on a library of housing plans, and I sit with everybody from the homeowner multiple times until it’s what they want throughout the build. If they want to add something, take something away or alter it, you name it, I’ve done it.”

According to Blumberg’s website, he “prefers doing business the old fashioned way; with a handshake.”

Since the establishment of his company, Huntington Chase Corporation in 1993, he has been quietly building homes in the O'Fallon area. Nearly all of his customers have come to him via word-of-mouth. In fact, he currently has many repeat customers building homes with him.

“Developing and building houses became Denny's passion in the late 1980's while working for a relocation company in St. Louis,” Huntigton’s website statess. “His first step was to open his own relocation business when he realized that no one was concentrating on the Illinois side of the river. A few years later he partnered with William Alberternst, who already built several houses for Denny, to form Huntington Chase Corporation.”

Alberternst and Blumberg purchased 22 lots in what is now called Cambridge Commons off Aladar Drive in O’Fallon. That was in early 1993 and according to Blumberg, “We took people out in pickup trucks to show them where the lots were going to sit. It was pouring down rain and there were no roads, no sewers, and no water. I couldn't believe it.”

Ultimately, they built 119 homes. From there they bought Nolin Creek Estates and built 134 homes.

Blumberg was also the first builder of the homes in The Landings at Far Oaks, which is located on the Far Oaks Golf Club near Fairview Heights. The homes averaged from about $400,000 to $800,000. He loved building there because of the creativity involved in the design. It was also his first subdivision to include a display home. That house was so popular it sold within 60 days.

Another subdivision Blumberg developed was Witte Farms Estates, consisting of 81 lots developed on 125 acres. Blumberg added two lakes, which were stocked with fish and landscaped with natural grasses. The entrance is beautifully beamed and lined on both sides with trees.

Huntington Chase also built Windermire Ridge located on the west side of O'Fallon off Milburn School Road and the Parcs of Arbor Green off Simmons just north of the Family Sports Park in O’Fallon. The homes ranged from $260,000 to $600,000.

Blumberg said his company doesn’t use sales people or advertising, instead he and his short list of vital employees are the ones getting thier hands dirty. Plus, Blumberg estimates that close to all of his customers find him by means of referral, word of mouth and returning customers.

“Truly, the work speaks for itself, and they come to us,” he said.

Take Blumberg’s current development project at The Reserves of Timber Ridge, for instance. Blumberg plans to build 157 homes on this 100 acre parcel.

“And these are larger lots, plus I put in a lake too, and there’s just a lot of green space which homeowner’s love and the city likes too,” Blumberg said.

Currently there are five occupied homes in the subdivision, with another two to be occupied by the end of next month, he said.

Blumberg has one word for how fast his latest subdivision is taking off — “amazing.”

The three-phase project started at the beginning of the year with 32 lots, which 31 are already sold. The second phase was just started recently with 26 lots, and 19 are on hold by buyers now. The last phase which will start most likely by spring of 2017 has 46 lots, and 18 are on hold thus far.

According to Blumberg, aside from the importance of a stong relationship with the city staff who must approve plans, give building permits and do inspections, the relationship with the homeowner is high priority to him, too.

“We aren’t just building homes here, we are building communities and foundations for people’s families,” Blumberg said. “We design and build every home. We gear everything toward family.”

Although the city doesn’t offer tax breaks or financial incentives for developers, Blumberg said he appreciates the city raising the bar.

“The city is tough. I’m gonna tell you, this is a very strict town to develop and build in. Thier zoning inspectors, engineers, planning and development department are all extremely thorough, and that’s what makes it very, very tough, but what I do like about them is they are consistent as I mentioned before,” Blumberg said.

The Big 3

Blumberg, along with State Construction and Fulford Homes, are three major players on the O’Fallon housing front.

State Construction State Construction started in 1967 with the concept of building quality luxury homes at an affordable, competitive price. State presently builds between 20-25 custom homes a year in the O'Fallon.

Rich Gorazd, president of State Construction, has lived in O’Fallon since youth. His father, also Rich, started the development company in 1967, and handed over the reigns to his son in the late 1980’s.

“I’ve been at it ever since, and our goal that has been met is to build 20-25 custom homes a year,” Gorazd said.

To date State Construction has built over 1,000 homes since its inception in O’Fallon, including in Cobblestone, Forest Hills and Hearthstone subdivisions.

“The city of O’Fallon has always been very accomodating to us,” Gorazd said.

Gorazd bought the remaining 18 plots of land in Hearthstone Estates from St. Louis area builder, Taylor-Morely Homes, once one of the largest home builders in the St. Louis area, ceased operations May 30, 2008, after 56 years in business.

Gorazd said he only has three lots left to build on in Hearthstone Estates.

“I think it’s refreshing seeing new home construction continue to rise because a lot of people were nervous in 2008, but now it seems those fears have been eased some,” he said.

Gorazd said the rapport between the city and builders is strong and can be seen by how the city offered support to his latest endeavor — Bethel Ridge Farms, off of Simmons Road.

Infrastructure like sewer and water lines, storm water drainage and roads are being implemented now so home builds can ideally begin this fall, he said.

“It’s the best piece of land I’ve ever been associated with,” Gorazd said. “We’ve owned that 100-acre farm land for 12 years, and have been waiting for the right time to develop the site.”

New hospitals bring new houses

Gorazd said the new two hospitals in the area were the tipping point for him to get started.

“There’s 100 lots and 70 are wooded walk out lots, which is highly desirable — we’ve already sold 10 lots so far so I’m very excited,” Gorazd said.

Memorial East Hospital in Shiloh opened in April, and St. Elizabeth’s will open in 2017.

In Cobblestone Ridge, another of Gorazd’s projects, building is still underway on the 30 lots left of the 170 he started with.

“We even have 20 acres behind those (lots) to develop still,” Gorazd said.

Fees come at a price

But not every builder is happy about O’Fallon’s building fees, including Dennis Weiman owner of Weiman Homes, who builds about five houses a year in the O’Fallon area.

Making his start in the construction business in 1995, Weiman said the majority of his work has always been in O’Fallon, in fact while he was building in Braeswood Trails years ago he lived there for seven years too.

“The hard years from like 2010 to 2014 are behind me, an now things are picking up and it’s looking brighter finally,” Weiman said.

Unlike Blumberg, Weiman said the higher fees and taxes in O’Fallon and St. Clair County have affected his business, negatively.

“Now, O’Fallon has an annexation fee of $2,500, a sewer and water tap on fee of $3,000, then anywhere from $1,000 to $1,500 for the application fee for the types of custom homes I build,” Weiman said. “So builders are faced with increasing costs that the city is imposing, which means we are hit with about $10,000 in fees before I even start to build the home.”

Weiman noted that doesn’t always apply though because not every subdivision will be subject to annexation fees because a developer has already come in and covered it.

“Some developers will roll it into the cost of the lot, but either way it’s still going to cost more,” he said.

Weiman said he has three contracts right now — two in Far Oaks subdivision and one in Braeswood Trails.

“Sometimes, I’ll have people come to me with a lot they purchased and they want me to build them a home, or other times it’s a lot that I’ve purchased to build a house on it for someone, but I don’t develop subdivisions,” Weiman said.

A good working relationship with the city

O’Fallon Community Development Director Ted Shekell said it’s good to see local companies and builders like Huntington Chase Homes, Fulford Homes, State Construction and H & L Builders, and others who are invested in the community because they live around here so they’re invested in O’Fallon.

“They build great homes and neighborhoods that are going to be here long after we’re gone,” Shekell said.

Working with the construction contractors is important part the process, Shekell said.

“Having a good relationship with them to help them with the layout of their development so all parties involved are happy — it’s a partnership,” Shekell said.

Shekell said with that partnership comes contributions from the city like helping with infrastructure like building the streets and the roads so developers and contractors can get into the subdivisions they are going to build in with expediency.

“For example, streets like Milburn School Road where the city is rebuilding and improving, which is critical to serve the schools and the growing neighborhoods, and so far the partnership has worked well for us,” he said.

Shekell said the cooperative efforts between city staff and developers is done in several ways, one of which is the off site road and utility improvements, which often are too large for any one developer to do on their own.

“So, we help make those improvements, but we usually require the developers to pay a portion of those improvements thru either annexation fees per home or as in the instance of new off site utility service, they would have to cost share those services with the city,” Shekell said.

This story was originally published July 25, 2016 at 1:39 PM with the headline "Building mutually — Beneficial relationships exist between city and its builders."