One manufacturer of pre-engineered buildings that wants to expand into the Southeast market plus one Southeast city that has a need for the company’s product equals an opportunity for Jacksonville possibly to have a new type of affordable housing.
City Council members Bill Gulliford, Reggie Gaffney and John Crescimbeni met Wednesday with representatives of Kairos Development International Inc. and Energy Panel Structures Inc. to consider whether homes built in a factory in Graettinger, Iowa, then shipped to Jacksonville and assembled on-site could be a way to provide more people the opportunity to own a home.
Also present at the first public meeting on the subject were representatives from the city Neighborhoods Department, Ability Housing and LISC Jacksonville, the local affiliate of a national organization that specializes in restoring challenged neighborhoods.
The council members will introduce legislation Tuesday to transfer abandoned property owned by the city to Kairos, which intends to facilitate a relationship between the city and EPS.
The plan is a pilot project in which prefabricated homes would be assembled on three sites in council District 7, which is represented by Gaffney.
The sites are on East Third, Spearing and Van Buren streets in East Jacksonville.
“There is a tremendous need (for affordable housing) in my district,” said Gaffney.
Gulliford said the city owns a substantial inventory of abandoned and vacant property and has an equal need for more affordable housing.
“I think there would be a tremendous market here in Jacksonville,” he added.
Chris Spaeth, EPS vice president of sales and marketing, said what the company manufactures should not be confused with a house trailer.
“Don’t get hung up on the type of construction,” he said.
Spaeth described the product as “structural insulated panels.”
For a 1,200-square-foot home, 10-12 wall and roof panels would be constructed to local building code requirements in the factory, then shipped to the home siteand assembled in one day.
Subcontractors then would install electric, plumbing and HVAC components.
“It has curb appeal that’s affordable,” he said.
The first step will be to determine the maximum price point for the Jacksonville affordable housing market. Then, a structure will be engineered to meet the price.
Gulliford said financing will be a key element of the project and suggested a “mortgage pool” should be created, possibly administered by the city.
The second phase of the concept is to help EPS build a factory in Jacksonville, said Kairos President and CEO Alex Itkin.
“If they’re going to spend $20 million to build a factory, mass production is the key,” he said.
He said EPS would have to manufacture about 120 homes per month for the Southeast market for an additional production facility to make sense.
Spaeth said the company is looking at Jacksonville because of the need for affordable housing and for its location. With a factory in Jacksonville, EPS could sell its homes throughout Florida and north to Atlanta, he said.
Gulliford said he plans to “push the legislation through” and will request the transfer of property to Kairos be taken up Tuesday as an emergency in order to get the project underway and avoid delay that would be caused by the council’s annual summer break, July 5-15.
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