This is an archived article that was published on sltrib.com in 2011, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
A slew of Farmington Crossing homeowners object to the developer's plans to build the final phase of their subdivision as lease-to-own units.
However, Bryson Garbett, president of Garbett Homes, said it's the only way his company can get financing to finish the last 93 townhouses.
"We're in a tough situation because its really hard to get financing for new buildings," said Garbett, a former state lawmaker who served two terms on Utah's Capitol Hill in the mid-1980s.
Garbett's company faces competition on several fronts due to the floundering economy — foreclosures have unleashed a glut of homes and vacant land for sale. And since the first of 370 Farmington Crossing townhouses hit the market in 2006, some purchasers are trying to sell their units.
Part of the original deal was that all units would be owner-occupied except in hardship situations. At present, Farmington Crossing has 24 such cases where homeowners received approval to rent out their units, Garbett said.
Garbett's lease-to-own proposal for the 93 units the company seeks to build would assign up to $400 of each month's rent, over 18 months time, toward a tenant's purchase.
In history-steeped Farmington, the concept of rentals rubs some the wrong way. Last week, 20 Farmington Crossing residents told the city's Planning Commission how they felt — all but two opposed the idea of erecting rental units nearby.
"Farmington is unique. Its a small town located in the midst of urban sprawl," said Farmington Crossing resident Rodney Johnson. "We have a basic philosophical difference of opinion here."
Johnson, 74, moved to Utah from Southern California two years ago, when he purchased his Farmington Crossing townhouse for $208,000. Its most recent tax assessment came in at $191,000, Johnson said.
Several of his neighbors view Garbett's lease-to-own proposal as "a violation of the spirit of the place," Johnson said.
So far, the developer hosted four open houses to discuss the proposal with current homeowners. Farmington Crossing nestles near the city's commuter rail station and a blossoming retail hub called Station Park.
"We have some homeowners who don't like the (lease-to-own) idea," Garbett said. "Our message is that this would be much better for the community than what's happening now."
Since last November, sales slowed to a trickle, he said, adding that construction on one multi-unit building halted for several months and the foundation sits vacant.
"I can't get money to build the rest of it," Garbett said.
Without the lease-to-own financing, Garbett projects a 10-year timeline to complete the subdivision. With it, final construction could finish in 18 months, he said.
"Right now the for-sale market is weak," Garbett said, "and the for-rent market is strong."
Randy Hillier chairs Farmington's Planning Commission and said the panel seems almost evenly split on the issue. Of seven members, six were present last week and voted 3-3, so discussion continues June 30. The City Council will review the matter after the Planning Commission forwards its recommendation.
"Its a hard pill for a lot of the residents to swallow," Hillier said. "There's a fear that if you're renting, you're not motivated to take care of (the place)."
However, the uncertain economy has created unusual circumstances and the future holds several questions, Hillier added.
"We find it difficult to say things will turn around in just a few years," Hillier said. "Things could get worse or better, no one knows."
Todd and Rainey Christofferson moved from Manhattan to Farmington Crossing 18 months ago. Rainey Christofferson said she shares her neighbors's concerns but believes Garbett's proposal could be the best option at this point.
"We have a big field of dirt and weeds," Christofferson said. "None of us have a crystal ball, but a completed community would be better than seeing Garbett walk away."
twitter: @catmck —
What's next:
Farmington Planning Commission will vote June 30 on a lease-to-own option for Garbett Homes to build its final 93-unit phase of Farmington Crossing.
So far, the subdivision has 370 townhomes and eight single-family homes. Located near the Farmington FrontRunner station and a developing retail hub called Station Park, Farmington Crossing features several amenities, including a clubhouse, swimming pool, hot tub, fully equipped gym, children's play areas, trails and a splash pad
For more information, visit garbetthomes.com/farmington.html