Would that it were so simple

I don’t know all that much about Lennar Homes except what I read in the financial news and what I see on the ground. What I read in the financial news is good. What I see on the ground is not so good.

First the good. Lennar Corp.’s revenue and earnings per share both topped the highest of expectations, it was reported just last week, and its new home orders surged 62 percent compared to the same period last year. The national average for new home orders is a plus 55 percent. "Even with questions about rising interest rates, labor shortages, rising construction cost, and the macro international trade tensions, the housing market has remained resilient," Lennar Chairman Stuart Miller was quoted as saying on the company’s earnings call this past Tuesday. "There continues to be a general sense of optimism in the market."

Lennar’s shares climbed as much as 9.5 percent to $53.87 in New York trading, helping the Miami-based homebuilder bounce back from months of performances generally described as "lackluster." The stock had dropped 22 percent this year through the close of the markets last Monday. Lennar’s "orders and margins exceeded projections while management’s commentary was upbeat, noting strong housing fundamentals and an ability to manage higher interest rates and construction costs," Jade Rahmani, an analyst at Keefe, Bruyette & Woods, wrote in a note to clients. "We expect a positive reaction."

So much for the good news. Now about that product on the ground, which can be seen in the Cool Springs subdivision off Highway 150 east of I-35 and which is represented in the home pictured here — exactly the style of home Kyle officials want to see a whole lot less of: front-loaded, garage-dominated structures.

And now Lennar is preparing to build a whole bunch of new homes in a rather large residential development known as Plum Creek North planned between 1626 and Jack Hays Trail north of Kohlers Crossing.

Which could be the reason why Item No. 11, labeled as "Addendum Number 4 to the Plum Creek Development Agreement with Lennar Homes for Plum Creek North," is part of Tuesday’s city council agenda. This development agreement states quite emphatically "The City of Kyle will have the authority to deny any building permit that does not conform to the design standards contained in this document." So there.

Specifically, the development agreement calls for the creation of something called the Plum Creek North Design Committee the purpose of which is "to review the design standards contained in this document."

Now the "design standards contained in this document" appear to be exactly what is outlined in the city’s Design Guide which specifically states that the garage-dominated homes like the ones Lennar built in Cool Springs are now a ‘no-no" in Kyle and if Lennar dares try to build one of these ugly ducklings in this Plum Creek subdivision, the PCNDC will inflict its wrath upon thee. According to the agreement, the PCNDC is going to consist of four persons — two to be appointed by City Manager Scott Sellers and the other two by Lennar — and each one of the committee members must be either a professional engineer, a land planner, a landscape architect, any other kind of architect, or a land use attorney and they must have five years worth of credentialed experience in their chosen profession. It also states "No member of the PCNDC may be: (a) an employee of the Master Developer or employee of elected official of the City of Kyle, or (b) a resident or property owner of Plum Creek Section 1 or Plum Creek North." This prohibition makes no sense to me unless the word "of" between "employee" and "elected official" should actually be the word "or." Then it makes sense because I really don’t know that any elected official of the city has an employee, per se. But this is only the beginning of the confusion created by this document.

Of course if you think additional confusion could be caused by a four-member committee being perpetually deadlocked by 2-2 votes, fear not. If Lennar wanted to deviate from the city’s Design Guide, as I understand this document, it would need to obtain a variance from the PCNDC and the only way such a variance would be approved is by a unanimous vote from all four members.

So, at first glance, it would seem that this PCNDC would have final say over what each and every home Lennar wanted to build in Plum Creek North looked like. But, as the Ralph Fiennes character in the movie Hail, Caesar! tried to teach the Alden Ehrenreich character say "Would that it were so simple."

See, the agreement also calls for the creation of something called the Architectural Review Committee. According to the agreement "Each new residential unit in Plum Creek North will be subject to such additional design criteria that will be detailed in design guidelines to be described in the Declaration of Covenants, Conditions, and Restrictions (CCRs) enforced by the Architectural Review Committee (ARC) which will be created pursuant to the CCRs."

By the time I got to this part of the agreement, my head was spinning. What or who has the final say into what these homes will look like — the Design Guide, the Plum Creek North Design Committee or the Architectural Review Committee?

But wait, There’s more. The agreement also states "A Master Homeowner Association shall be created and maintained for the community, empowered to govern and establish design guidelines, review architectural and landscape designs and enforce regulations and design guidelines."

By now, I’m thinking this has got to be a joke. The city is trying to put one over on us. Perhaps this entire agreement was written on April 1. So on Friday I dashed off the following e-mail to city spokesperson Kim Hilsenbeck:

"I am curious about that proposed Plum Creek North Design Committee that is outlined in Exhibit B of Item 11 on Tuesday's City Council Agenda. If I understand it correctly, this will be a four-person committee whose purpose is ‘to review the design standards contained in this document.’ What does that mean? Must it approve the design of any and all residential structures erected in this community or is it in place only to grant variances for those structures that don't adhere to the city's Design Guide?

"It says two of the four members of the board will be appointed by the City Manager, but it doesn't specify that those appointees be city employees. Does the city manager plan to appoint city staff members or will he be looking outside City Hall for possible appointees to the PCNDC?

"What will be the difference in the duties of this PCNDC and the Architectural Review Committee that is also called for in this item?

"The provisions of this item also state ‘The City of Kyle will have the authority to deny a building permit that does not conform to the design standards contained in this document.’ How does that authority either conflict or co-exist alongside the PCNDC?

"It also states ‘A Master Homeowner Association shall be created and maintained for the community, empowered to govern and establish design guidelines, review architectural and landscape designs and enforce regulations and design guidelines.’ What happens if a ruling by this Master Homeowner Association directly conflicts the city's denial of a building permit which, in turn, conflicts with a decision from the PCNDC, that is directly opposite of a decision from the Architectural Review Committee? Who has the ultimate authority here?

"In short, what say or veto power do each of these entities — the Plum Creek North Development Committee, the Architectural Review Committee, the City of Kyle, and the Master Homeowner Association — have in the design of the homes, either single or multi-family, planned for this development.

"Thanks for helping me make sense of all this."

I have yet to receive a reply to this e-mail. I’m attributing it to this.