97-house subdivision in works by Greystone

Signature Homes is moving forward with plans for a new 97-home subdivision off Shelby County 41 next to Greystone and Shoal Creek.

The city of Hoover annexed the 103-acre parcel in early November. The subdivision, to be called Brock Point, would be just east of The Cove at Greystone and The Crest at Greystone. Shoal Creek is directly across Shelby County 41 from the site.

Signature Homes President Jonathan Belcher said the housing market in north Shelby County off U.S. 280 is ripe for a new high-end development such as this.

Signature plans to build homes between 3,000 and 5,000 square feet that would sell for between $500,000 to $800,000, with an average price of $600,000, Belcher said.

That price range is underserved right now from a new construction standpoint, Belcher said.

Kyle Murphy, president of the Greater Birmingham Association of Home Builders, agreed.

There are still some new homes being built in the Village at Highland Lakes, Shoal Creek and Mt Laurel, but most of those are $350,000 or below, Murphy said.

And for anyone wanting to get in the Hoover school system on the eastern side of Hoover, “there’s been nothing really new there,” Murphy said. Those people have had to look for an existing home rather than a new one, he said.

Murphy said he has talked to Belcher and Signature Homes CEO Dwight Sandlin about their plans, and said, knowing them, they have probably done a lot of homework about the market demand before moving forward with this project.

When Signature came to the Hoover City Council for annexation, a couple of residents expressed concerns about the impact such a development might have on the Hoover school system.

Councilman John Lyda said he analyzed numbers with Hoover Finance Director Robert Yeager and determined Hoover schools would receive more in property taxes from the proposed subdivision than it would cost to educate the number of students expected from it.

History has shown that 97 homes in that price range would produce 32 students at most, Belcher said. Yeager, who formerly was chief financial officer for the Hoover school system, confirmed those numbers are historically accurate.

Lyda and Yeager estimated Hoover City Schools would receive $2,032 per home in Brock Point on average, for a total of about $197,000. The Hoover school system pays $4,184 of its own money to educate each student on average, so 32 students would cost Hoover about $134,000, Lyda said. That would mean a $63,000 surplus for Hoover City Schools.

Hoover schools Superintendent Kathy Murphy said Belcher informed her about Signature’s plans for Brock Point. While every new home development does have an impact on the school system, Murphy said she feels comfortable that Hoover City Schools can handle 20 to 30 more children on that side of town.

“That’s not a deal-breaker for us,” she said.

Councilman Gene Smith, chairman of the council’s Annexation Committee, said the land in question is on the eastern side of Hoover and “there are no overcrowding issues when it comes to the education system out there.”

Smith said he would be surprised if Brock Point produces 30 children for Hoover schools. Most people who can afford a home at that price are older and don’t have children in K-12 schools, he said.

Plus, police and fire services already are in place, Smith said. 

“We wouldn’t have to add anything,” he said.

Councilman Jack Natter said he saw no reason not to annex the property.

Lyda said the city stands to gain $660,000 in sales tax revenues from construction of the homes, as well.

Bluff Park resident Dan Fulton questioned the reliability of the numbers provided by Lyda and Yeager, saying they are only estimates. He believes the city of Hoover has not been giving enough money to Hoover schools, limiting its contribution to the school system to $2 million a year since fiscal 2009.

“I consider that unacceptable. I think you can do better,” Fulton said.

A 1 percentage point increase in the city’s sales tax could bring in an extra $20 million, which could be used to help the school system address budget deficits and build more schools, Fulton said.

“They’ve done it in Trussville very successfully. They’ve done it in Gardendale very successfully,” he said.

Lyda said Fulton is the only Hoover resident he knows who is in favor of a sales tax increase.

Bluff Park resident Robin Schultz said he is concerned that Hoover would need to build another fire station to serve Brock Point. Getting a fire truck from Hoover Fire Station No. 8 in Greystone up and over Double Oak Mountain to Brock Point is quite a haul, he said.

Lyda said it’s only about three miles and the fire chief isn’t concerned about the annexation. 

“We trust our experts,” he said.

Belcher said the late Compass Bank founder Harry Brock formerly owned the property and donated it to Samford University, and now Signature Homes is working with Samford to develop it.

The 103 acres includes a 13-acre lake that Signature Homes plans to leave in place, Belcher said. Plans call for 33 houses to be on the lake. At the planned price point, Signature Homes expects to build two to three homes per month and complete the subdivision in three to four years, Belcher said.

Lot sizes would be comparable to The Cove at Greystone next door, he said. He described the average lot size as being 120-140 feet in width and 200 feet deep.

The developer’s zoning petition estimates initial land disturbance to be 9 acres, with homes sites designed to preserve the natural features of the property.