Mayor Greg Nickels has announced new proposed regulations for building townhomes, spurring concern from builders worried about the impact on future developments.

Covering 10 percent of the city, newer townhomes have been an ongoing sore spot for single-family homeowners who oppose what they call cookie-cutter designs.

Nickels' proposal aims to ease these concerns by creating policies for townhome construction that increase community bonds and accessibility to more affordable housing. Townhomes are often more affordable than other newer residential construction.

Along with these new regulations, the mayor is promoting green, environmentally friendly building through the new design standards.

"We can grow in ways that enhance and enrich our lives," Nickels said in a statement. "These regulations will help us make sure that new multifamily housing is attractive, sensible, and fits in with their neighborhoods, while also supporting affordable housing."

Through a new administrative design review process overseen by the city, Nickels is looking to encourage more artful townhomes that will blend in rather than stick out like sore thumbs in mixed housing communities. He also hopes to create more open space, require wider driveways and larger parking spots, have entrances facing the street and require more windows and doors to fill up potentially blank walls.

Currently a bonus program, or workforce housing incentive, is already in place for denser zones such as areas zoned low-rise, mid-rise and high-rise. If builders seek additional height they must build under the Leadership in Energy and Environmental Design (LEED) or Energy Star construction that saves both energy and water and uses recycled materials.

"Much of the green building is focused on saving energy and water, both which can add significant financial gains in the long run for the owners of the project," said Alan Justad, deputy director for the city's Department of Planning and Development.

"We balance protecting the planet with affordability and livability," he said. "We need all three."

Justad believes the city will be able to generate 4,000 more units with the new design review and the bonus program, 75 percent of which are expected to be built in urban villages and centers including downtown Ballard.

But Jay Kechloain of JS & J Builders, Inc. and Miklos Kohary of Kohary Construction, Inc., both long-time builders in the community for over 25 years, see potential downfalls.

Nickels' plan will add another required design review for builders. On average, Kechloain and Kohary wait eight months to one year for a design to be reviewed and approved. They worry that if the new review follows this time pattern it will be more costly and inefficient in the end, for builders and buyers.

"This is insane; the proposal is insane because of the cost factors involved," said Kohary. "The mayor had an agenda to create more affordable housing in Seattle, but they need to make up their minds, do they want to do it or do they not?"

"The time restraint [of a design review] is adding more cost, which is causing builders to spend more money while they wait, which causes them to bump up the price of the finished home."

For a $1.5 million piece of property with the potential to develop 10 units, builders would pay about seven percent interest plus the loan for the property, amounting to about $9,000 more in interest per month, Kechloain said.

With design reviews lasting eight months to a year, the interest would add up to between $72,000 and $80,000, and tack on additional $10,000 per unit to the home's selling price.

"That won't cost me anything that costs the consumer," said Kechloian. "We're not worried about it personally. I'm worried about it for my kids, my grandson, or for any young buyer who wants to live in the city."

Justad said the city would be reviewing its design review process in conjunction with the mayor's proposal with the goal of adding on no more than an additional one to two months.

Another concern for experienced builders lies in the costs younger builders will have to face with the added design review. Young builders just starting up their companies don't typically have the funds that more experienced companies have.

Buying property, asking for loans, getting charged for interest and then waiting another eight months to a year while still paying interest could stop inexperienced builders from moving forward with a project.

Local carpenter Justin Sakounthong of IKKA Construction General Contracting, LLC, an independent construction company, said the design review process is already too long.

"For the community these new designs would be better, making homes less out of place," said Sakounthong. "But before they can add on another design review, the city needs to be capable of reviewing this in a proper manner to be effective and cost efficient."

Currently IKKA Construction is subcontracting for a Ballard-based company but hopes to build townhomes elsewhere in the city.

IKKA Construction project manager Jonas De Guzman said his company is committed to creating townhomes that are aesthetically conducive to the community and is hoping the city will be able to expedite the process. However he does anticipate added costs if the proposal were to be approved.

Brittani Ard, a zoning-consultant who files permit applications for townhouse developers, is not only aware of the time that could be added onto projects but also sees the costs that requirements for an additional review will give developers.

"When you have a project go through design review, they ask for PowerPoint presentations, full models of neighborhoods, a 10 to 15 page packet with modeling of neighborhoods, mapping of what the project will look like and you have architectural service fees," Ard said. "Even just the cost of producing a packet is about $900 to $1,000."

Holding costs, affordability to buy property and design review requirements are all possible financial consequences if the additional design review is approved.

However Nickels' idea of making townhomes more economically sustainable aren't being opposed by most Seattle builders.

"Most builders today use Energy Star building to promote being green," Kechloain said. "It does cost more to build green than not to ... but that's not an issue. The issue is whether the design review is going to happen or not."

The mayor's proposal will go to the council's land-use committee for review later this summer.

Justad said the new design review proposal is complex and doesn't expect adoption until early 2009, allowing the council and the public the rest of the year to review it.

"Design review is an art but we'll look for ways to turn it around and out because housing prices are expensive as it is," said Justad.

Allison Espiritu may be reached at allisone@robinsonnews.com.