An illustration from the proposal submitted by Tradition by Donnay Homes shows a two-story home on Flag Avenue in New Hope. It would cost at least $648,000 on the open market.
(Submitted rendering)
New Hope’s city council members must wear both their public official and property investor hats as they consider proposals to build a brand new home on Flag Avenue through the Scattered Site program.
The next project, replacing a demolished home at 4632 Flag Ave. N., is likely to bring a towering two-story home and three-car garage to a street with more modest homes after a 3-2 Economic Development Authority vote.
Through Scattered Site, the EDA purchases dilapidated buildings, tears them down, and contracts a developer to build and sell a single-family home on the open market. Having a more expensive home helps raise property values around the new construction, and larger homes mean more tax revenue for the city and the EDA which is funded through tax dollars.
When a request for proposal was sent out in May, seven developers sent in their blueprints and budgets including the $90,000 lot sale price. Dean Johnson Homes offered $100,000 to purchase the property, also providing plans for a split level home for the lowest price tag of $495,000.
But city staff suggested the EDA, operated by city council members, approve a $648,900 home constructed by Traditions by Donnay Homes. It’s a two story home with a three car garage, and will stand between two split-level homes. Proceeding with the Donnay proposal would cost the city $198,000 in tax dollars out of the EDA budget.
The assessed value of the property in 2026 was $268,600, meaning its value would increase by nearly threefold with the Donnay proposal. Its estimated taxes payable to the city would increase by roughly $2,300 in 2029, adding to the tax base in the area.
But neighbors have protested the mockups, saying the design resembles a mansion in a neighborhood of modest vintage homes. Neighbor Richard Terrill testified against the Donnay design, though his minutes at the public forum podium quickly became an elevated argument from the council.
Terrill’s argument, one that the Sun Post published in a Letter to the Editor prior to the city council meeting, was that the home is simply too large for the area.
“The city doesn’t have a lot of 3,500 square foot homes,” Commissioner Jonathan London said.
“Good,” Terrill interjected. “Move to Plymouth if you don’t like it, Jonathan. You don’t have to stay here. People live here because of what New Hope is. This program, as it’s being implemented, is not in our best interests.”
An illustration of a split-entry proposal for New Hope’s next Scattered Site project. This proposed house would cost $495,000 on the open market.
(Submitted rendering)
Council Member Brock Ray suggested proceeding with the split-entry blueprint that would sell for $495,000 because the neighborhood largely disagrees with the large home option.
“I have spoken to many people on Flag,” Ray said, before Council Member Michael Isenberg added, “And I have as well. I think he’s the only one that’s actually shown up to this,” referring to Terrill.
“In my opinion, the proper role of government is not to come out and use taxpayer dollars to build homes that don’t necessarily fit in with the neighborhood,” Ray said. “We’re using taxpayer dollars to subsidize the building of very expensive homes, when we have other options. … There is an option for a home here that both better fits in with the neighborhood, it’s a split entry. … That idea of matching what’s there so that it blends in doesn’t tower over the existing homes is important.”
Building a brand new home in 2026 is not cheap, but going with the lowest sale price would build something closer to what the median taxpayer could afford.
When it came time to vote, the commission approved the Donnay design 3-2, with Ray and commissioner Kyle Coryell in opposition. “These split entry homes that have been proposed are plenty good,” Ray said. “We have that choice.”