Frequently Asked Questions for South End Row at Stapleton

What is live/work? For many reasons, consumer trends indicate more and more people are working from home or would like to. Yet, most residential products often lack the space, layout or location to accommodate a full scale home-based business. Although new to Denver, live/work has been around for a long time. South End Row is a fresh interpretation of the shopkeeper living above the store in centuries old New England and European towns. Most new developments featuring live/work have resulted in a compromise, rather than a value-added fusion, of the two concepts. We believe we have created a design that honors both the live and the work aspect of the home.

Tell me more about the South End Row project. Three buildings of twenty-two live/work residential units are planned to include:

• Fourteen fee-simple live/work townhomes of 2 to 3 bedrooms plus offices, basements and ground floor Flex Space suitable for a variety of home-based enterprises or other uses.
  
• Eight condominiums of 1 to 2 bedrooms plus offices above 6,000 square feet of retail space.
  

Each home will be unique and finished space will range from 1,600 to 2,900 square feet, with all units having 2-car attached garages, outdoor living decks and 13 of 22 units having penthouses/rooftop decks.

Is retail space available? A total of 6,000 square feet of ground floor retail space in various sized bays is available for lease among the three buildings. The lease rate is to be determined and will be triple net, not including common area charges, taxes and utilities. The space will be delivered in a shell condition, with a tenant finish allowance.

Where is South End Row located? South End Row is located in Stapleton, on the East side of South Central Park Boulevard, between Xanthia and 23rd. This unique enclave of residences, shops, restaurants and small businesses will contribute significantly to the urban design, growth and vitality of the southern gateway to Stapleton. The surrounding land uses include existing and planned residential to the East, planned commercial to the West, the existing Bladium Sports Club to the North, and the existing Police Academy Training Center to the South.

Is there a Homeowners Association and what are the fees? The Stapleton Master Community Association (MCA) maintains property common to Stapleton and provides community services. The Master Community Association assessment is currently $36.00 per unit per month. In addition, a Community Assessment Fee is assessed at each sale or resale based on ¼ of 1 percent of the total purchase price, less $100,000. A transfer fee of $150 is collected from the buyer at each closing to cover title transfers. A working capital fee of $200 is charged to the buyer to provide initial capitalization for the MCA. There will be a specific association for South End Row, although the assessments have not yet been determined. For more information about the Stapleton MCS, please visit http://www.StapletonCommunity.com.

Are there restrictive covenants at Stapleton? To make the Stapleton Community reflect the character of Denver, there are few restrictions or rules beyond those that exist in other neighborhoods throughout the City. The primary requirement is that owners maintain their property in a clean, sightly and wholesome condition. Landscaping must be installed within one year of occupancy. Design Review is limited to residential units and is only for material changes to the exterior of a home.

Are there special taxes associated with living at Stapleton? The City of Denver approved metropolitan districts to fund local infrastructure improvements such as pocket parks, local streets and wet utilities within Stapleton. The Westerly Creek Metropolitan District (WCMD) builds the improvements and sells bonds to fund those improvements. WCMD establishes an annual mill levy that is currently 54 mills and is adjusted annually and is applied to the assessment established each year by the County Assessor under state law. Increases are limited by agreements with the City and the bondholders. The advantages of this method of funding the infrastructure include: 1) lower lot prices and therefore lower home prices; 2) the ability to finance debt at lower interest rates; 3) the application of the mill levy to all property at Stapleton; and 4) the ability of the taxpayer to deduct the payment on their federal and state tax returns.

What schools serve South End Row? Two Denver Public Schools are located in Stapleton, within walking distance of South End Row: Westerly Creek Elementary at 8800 East 28th Avenue (Early Childhood Education to Grade 3) and Bill Roberts School 2100 Akron Way (Grades 4 to 8). The public high school serving Stapleton is George Washington High School, 655 South Monaco Parkway (Grades 9 to 12). Other schools nearby include the Odyssey Charter School (K-8); Denver School of Science and Technology (6-8 and 9-12); and the Denver School of the Arts (6-12).

Can I rent out my live or work space? According to the City of Denver, no. The zoning definition 59-2(159) of South End Row Residential is a combination of residential occupancy and commercial activity located within a dwelling unit. The intent of this definition was to limit the use to commercial activity by the occupant(s) of the dwelling. The definition, in specifying a dwelling unit, differentiates it from functioning as two separate units.

How do I reserve a home? Interested prospects should register on the website, www.southendrow.com, to receive information as it becomes available. Homes will be introduced to the interest list at sales events, prior to release to the general public. Details on the event will be sent to those on the interest list. Priority in the selection of a South End Row home will be based on: 1) when prospects sign up on the interest list; 2) whether or not there is a house to sell contingency; and 3) whether or not they are pre-qualified.

How do I get pre-qualified? Because South End Row is a unique project, New Providence Company has established a relationship with Wells Fargo Private Client Services to pre-qualify interested prospects and provide unique mortgage financing products and service. Representatives from Wells Fargo will be available at sales events to answer questions about financing options for live/work. A pre-qualification letter can be obtained from: Michael Tapp, Private Mortgage Banker, Wells Fargo Private Client Services at 303-863-5210 or michael.tapp@wellsfargo.com.

Are there unique tax benefits to live/work? Yes. If you're self-employed and work out of an office in your home, and if you satisfy the strict rules that govern those deductions, you will be entitled to favorable "live/work" deductions-that is, above-the-line business expense deductions. In addition, Stapleton is within Denver's Urban Enterprise Zone, giving businesses the potential to save on their Colorado business income taxes each year. Of course, a tax or legal advisor should be consulted to answer specific questions. But, to help prospects and purchasers understand the unique tax benefits of live/work we have consulted an accounting firm. Representatives from Fay, CPA have researched the provisions of the tax code as it pertains to live/work and will be available at our sales events to answer questions. Or, you may contact Brian Chase, CPA, President, Fay CPA, at 303-573-9219 or brian@faycpapc.com.

New Providence Company
Revised June 1, 2008

• the "direct expenses" of the home office-e.g., the costs of painting or repairing the home office, depreciation deductions for furniture and fixtures used in the home office, etc.; and
  
  
• the "indirect" expenses of maintaining the home office-e.g., the properly allocable share of utility costs, depreciation, insurance, etc., for your home, as well as an allocable share of mortgage interest, real estate taxes, and casualty losses.
  
  

1. Principal place of business. You're entitled to home office deductions if you use your home office, exclusively and on a regular basis, as your principal place of business. (What "exclusively and on a regular basis" means is not entirely self-evident. We can help you figure out whether your home office satisfies this make-or-break requirement). Your home office is your principal place of business if it satisfies either a "management or administrative activities" test, or a "relative importance" test. You satisfy the management or administrative activities test if you use your home office for administrative or management activities of your business, and if you meet certain other requirements. You meet the relative importance test if your home office is the most important place where you conduct your business, in comparison with all the other locations where you conduct that business.

2. Home office used for meeting patients, clients, or customers. You're entitled to home office deductions if you use your home office, exclusively and on a regular basis, to meet or deal with patients, clients, or customers. The patients, clients or customers must be physically present in the home office.

3. Separate structures. You're entitled to home office deductions for a home office, used exclusively and on a regular basis for business, that's located in a separate unattached structure on the same property as your home-for example, an unattached garage, artist's studio, workshop, or office building.

4. Space for storing inventory or product samples. If you're in the business of selling products at retail or wholesale, and if your home is your sole fixed business location, you can deduct home expenses allocable to space that you use regularly (but not necessarily exclusively) to store inventory or product samples.