Charlotte-Shelburne Rotary - Newsletter

"I became a true Rotarian. It was that GSE experience. It was a defining moment. I came back and realized that the Foundation was my charity of choice and that I had to convince others that it should be theirs also."

The visit to a makeshift school during a Group Study Exchange in South Africa helped to change Rotarian John Tomalson from Canada. He learned that real teaching is about the love of teaching; he also learned what it meant to be a Rotarian. As the team leader of his GSE team he was already a dedicated Rotarian but what he saw in South Africa made him not just a Rotarian but a cheerleader for the Rotary Foundation. He saw first hand the importance of the Rotary Foundation's programs and the impact they have on the world. Through John's efforts and the Rotary Club of Bolton, ONT, Canada that makeshift school he visited has now benefited from two matching grants. Meanwhile John is busy telling everyone about The Rotary Foundation and why Every Rotarian, Every Year is his charity of Choice.

Announcements

We are serving lunch to the members of the Charlotte Senior Center at noon.
Club members are judging the Future Business Leaders of America competition at the Sheraton on April 2 and 3. If you would like to be a judge, call John Beal.
The Church Street Marketplace is offering a series of lectures on the subject: “Ramping Up Revenue.” For information call John Beal.
We will be serving a Pancake Breakfast to raise funds for the Shelburne Community School Wind Ensemble trip to Disney World in the spring of 2010, on Sunday, April 5. There will be two shifts, 8 to 10 and 10 to 12. The Wind Ensemble needs to raise $40,000 to $50,000 for the trip which will be from march 22 to 27 next year. They will play at Disney World every day while they are there.
Bowl-a-thon – send in your 20 names each to Ric Flood and he will handle the hard part: sending out the letters and compiling all the lists.
We received a thank you letter from the Epilepsy Foundation for the opportunity to speak to our meeting recently.
Board will meet on Thursday, March 26 at 7:30 a.m.
The Double-Match Challenge has been met. The 20^th donor of $50 to the Rotary Foundation for Polio Plus, matched by the club, gave John a check at the meeting. John will ask the board to discuss the possibility of continuing to offer the match through the end of the month of March.

Sergeant at Arms

Kris Engstrom assessed birthday fines for Gary Bergeron and Linda Barker, and an anniversary fine for Bob Sanders. Members also paid pin fines and scoot fines.

Happy fines:

Terrell Titus – for John Hammer stepping in to lead the Senior Luncheon project
John Hammer – looking forward to the Senior Luncheon
John Hancock – the arrival of their 14^th great grandchild
Trafton Crandall – he’s trying to catch up to John – he’s expecting his second grandchild
Rosalyn Graham – for Chanel coming to Shelburne Farms for a photo shoot – for three days
Chuck Dunham – a scoot fine
Debby Hanley – thankful the real estate market is picking up – and leaving for the British Virgin Islands on vacation
Michael C—Don Rathbone is recovering well after spending several days in intensive care following heart attacks – and he talked to his friend John Dupee who is sailing in sunny warm climes – and thankful for his neighbor Trafton Crandall who has been helping him with sugaring
John Beal – great attendance at the meeting
Eric Hanley – a sailing vacation next week

Lucky draw: Debby’s card was drawn but she chose the wrong card

Guest Speaker

John Beal and Mark Brooks

Mark Brooks of Allen and Brooks, Real Estate Appraisers, shared very interesting information on the current status of residential real estate in Chittenden County, putting the current market into the perspective of more than 20 years of history. His company publishes a detailed report on commercial and residential real estate picture twice a year.

Residential sales peaked in 2005 with 2,000 sales, compared to 990 last year, and a 20 year average of 1,500.

Residential prices were flat in the 1990s, began ramping up at a rate of abut 11% in 2000. Peaked in 2005 with a median price of $286,000. The median is now $262,000. He expects prices to remain flat for several years.

Lack of new construction

New construction was highest in 2995 with an average of 384 permits issued. In 2008 there were only 186 because of the oversupply. There continues to be an undersupply of lower priced homes with multiple offers typical on lower priced housing. However the stimulus of lower mortgage rates may start the chain of buying.

There are currently 1,225 lots in the permitting process, or approved, or under construction. This includes 900 approved or ready to be built, including 81 in Shelburne and 20 in Charlotte.

Condo market

The condo market peaked in 2005. Sales of condos, which appeal to empty nesters and first time buyers, run about 690 a year. The prices follow a similar pattern to houses – level in 1990s, and peaked in 2005.

Permits for multi-family projects average 340 a year though they were higher in 2004 and 2006. Now they are down to 290 but that is mostly for apartments.

Proposed condos in the county total 2,900 of which 242 are in Shelburne. They are typically new construction and the market might push them to be switched to rentals instead of condos. As the demand revives there is lots of potential.

Currently there is a lot of demand, but mostly by “tire kickers” waiting to see if the market will get stable.

Apartment market

The apartment vacancy rate is trending down from a peak of 2.7% in 2003. In the 1990s the vacancy rate was as low as ½%. In 2008 the rate was 1.5%. More apartments are coming on line in 2009 and the demand will slacken. Nationally the vacancy rate is 20% and in New England it is 7.5%.

Apartment sales peaked in 2005 with 90 sales. In 2008 there were 40 sales. There is demand but not much inventory.

The price per bedroom (a comparison measure) was up in 2000 and 2005 and maxed at $59,000 per bedroom. Now it is at $54,000 per bedroom.

Student housing ranges from $575 to $675 per bedroom for June rentals. Demand continues to be strong. This may be impacted by a large number of units coming into the market: Eagles Club 200, Ethan Allen 250, Champlain College 320, Trinity 115, Redstone 200. The goal is to have more students living on campus and that would soften the market.

Commercial real estate

The market is currently balanced. An increase in vacancies might result if a drop in rents and that would be healthy. Retail space is in balance in spite of the apparent vacancies. There is an oversupply. A vacancy rate of 4.6% has risen to 7.8% in downtown Burlington and rents need to drop.