Karp Associates - Custom Homes, Renovations, Construction Management


		Homebuilding in Fairfield County: Land and labor costs, over-regulation force developers to be more creative By Joanne Carroll Excerpt from Fairfield County Business Journal, July 17, 2000 A matter of scale Another million-dollar builder, Arnold M. Karp, develops entire neighborhoods of luxury houses. His firm, Karp Associates, was ranked No. 16 in Business Journal's 1999 list of Fairfield County construction companies. One of Karp's development is Fox Run in Stamford, where 13 $750,000-plus custom homes are being purchased by executives and business owners working in Stamford and New York City. Cindy and Dave Grafstein are two attorneys with three young children. The Grafsteins both commute to different law firms in New York City. However, she works from her home office several days a week. The couple closed on a 3,400-square-foot home at Fox Run in April. "We wanted new construction, and most of the new houses we saw were huge. The thing that appealed to us about Fox Run was the smaller scale of the houses. It was also more affordable," Grafstein said. In lower Fairfield County, new construction starts at $750,000 and reaches $5 million and more. The driving factor is the cost of land which rises by $150,000 to $300,000-plus per lot from New Haven County to Fairfield County. According to top-selling broker Ruth Jones of Coldwell Banker, new construction in New Canaan starts at $2 million and there are multiple offers on virtually every house - many going for more than the asking price. All towns are experiencing an inventory crunch and new houses are getting top dollar. Raze or restore? The scarcity and high price of building lots is fueling the tear-down phenomenon prevalent in towns such as Greenwich and New Canaan. According to town building department figures, 95 houses in Greenwich, 35 in New Canaan, 28 in Westport and 25 in Darien were demolished last year. "Some tear-downs are warranted," said Karp. "But if a house is restorable, we want to restore it." Karp Associates is restoring Nestledown, a unique 18-room mansion on Smith Ridge Lane in New Canaan. It was built in 1910 for Ernest L. Conant, a former advisor to President William McKinley. While a number of developers looked at the possibilities of tearing down the mansion and subdividing the 10-acre property, Karp saw a rare opportunity to preserve New Canaan's largest remaining parcel of land, as well as a unique piece of its past. In making the new blend with the old, Karp used reclaimed wood from upstate New York for flooring while a Vermont contact supplies him with old beams. He combined antique vanities with new sinks, faucets and plumbing. The completely renovated $4.9 million mansion will combine the best of both worlds - 21st- century luxury with 19th-century craftsmanship. His firm has recently taken on another New Canaan restoration project. This early shingle style gem had been owned by one family since 1922, when it was built as a wedding gift. Over-regulations's price A 1997-98 survey conducted by the National Association of Home Builders found that in highly regulated markets, such as Connecticut, needless red tape and delays account for 20 percent or more of the cost of a typical new home. In Connecticut, before a builder puts a shovel in the ground, he needs an average of 20 to 25 approvals. At the same time, each town has its own procedures and interpretations of code. "It's an eight-week process to get any kind of building permit. It's hard to tell the industry leaders we work for that their house is delayed because the town in being difficult." said Karp. Some towns have adopted well-thought-out land-use plans to preserve their towns. But others are using open space acquisition to prevent housing development and growth, without any plan. Since the suburbs remain the leading choice for new home location, accommodating population increases and housing demand will require innovative land-use techniques and reasonable, market sensitive regulations that adapt to suburban growth.