October 28, 2001 - Although he's known as the building industry's point man in the
battle against construction-defect litigation, Mick Pattinson says he
won't be a one-issue president as he assumes leadership of the
California Building Industry Association.
For years, Pattinson has been at the forefront of a conflict
between builders and attorneys who represent condominium owners. He
holds that unnecessary lawsuits brought condo construction to a
virtual halt in the mid-1990s, creating a housing shortage that
helped drive prices to their present record highs. Attorneys contend
that it was poor building practices that opened the floodgates to
litigation.
Although his crusade will continue, the British-born president of
Carlsbad-based Barratt American says he plans to use his new office
to draw attention to a wide array of housing issues, including the
deepening home-affordability crisis.
Without more housing for middle- and low-income families, "we're
not going to have a work force," he warned. "We're already at the
point where companies are having to think seriously about coming to
California, or growing or reinvesting in California."
Veteran San Diego developer Sherm Harmer of the Olson Co. says
Pattinson is responsible for raising the industry's profile in recent
years through newspaper op-ed pieces and radio appearances. He holds
that the builder is well-suited to head the CBIA, a trade association
that represents nearly 6,000 companies and more than a half-million
home industry employees.
The energetic Pattinson works out of an office building near
Palomar-McClellan Airport. He said that it's important for builders
to take an active role in civic affairs.
"I think the bully pulpit is an important aspect to this,"
Pattinson, 53, said of his new CBIA job. "You have a very limited
period of time and the train is often in motion. What the individual
can do is use that to affect the future of the association, to draw
attention to the important issues of the day."
Pattinson, who served last year as vice president of the state
association, took the CBIA presidency last month. He is a past
president of the group's San Diego chapter. He is the fifth San
Diego County builder to take the CBIA presidency since 1970,
officials say.
The developer from Great Britain maintains that unreasonable
government fees are fueling the rise in home costs. The median price
recently hit $275,000 in San Diego County. He also finds the
government permitting process to be "too slow, too cumbersome, too
expensive" to encourage housing construction.
"What other industry would allow itself to be put through all of
these hoops and hurdles?" he asked. "Everywhere you turn, there is
another regulation, there is another restriction, there is another
anti-housing component."
A housing shortage
According to the CBIA, there has been a shortfall of more than a
million new homes within the state over the last 10 years. As a
result, California's urban centers are among the nation's most
expensive. Teachers, firefighters and other middle-income people are
finding it increasingly difficult to locate homes they can afford to
buy. At the same time, rental rates have risen to an average of more
than $1,000 per month for a two-bedroom unit in the San Diego region.
"In this county only one in four people can afford to buy the
median-priced house," Pattinson said. "In the Bay Area it is less
than one in five people. These are shocking statistics . . . What
this tells me is we have a bias against housing. Big government is
using the backs of home buyers to fund some of the infrastructure
needs that should be funded out of general taxation."
While government often views the home-construction industry as
having deep pockets, the average builder has a margin of profit of
only 6.35 percent, Pattinson said.
"A lot of people wouldn't get out of bed in the morning for 6.35
percent. Certainly the trial lawyers wouldn't get out of bed for
that money."
The new CBIA president is an advocate of "smart growth," a term
used to describe the clustering of residential construction near
employment centers and along transportation corridors. The idea is
to slow urban sprawl, reduce traffic and revitalize existing business
centers. It also calls for greater housing densities.
Higher density
Most San Diegans may never take to high-rise living, but economics
dictate that people are going to have to live closer together, he
said. "I think we are going to see higher density. I would put my
money on more midrise than high-rise, but certainly we are going to
see densification of our cities."
Density is not a bad thing if it is accompanied by such amenities
as expanded public transportation and adequate open space, he said.
At the same time, not everyone will want to live in a dense urban
environment.
"We have to accommodate those people who prefer rural living.
Housing is not a one-size-fits-all commodity."
Although zoning in San Diego County discourages the sprawl of
development into the suburbs, building in the urban core is much more
costly. To make it financially feasible, there need to be incentives
such as density bonuses for residential projects, he said.
Pattinson has the right vision for California builders, said
Harmer.
"Multifamily housing is indeed important to California because
it's the most affordable housing we have. Mick's efforts have led to
a reversal in the decline" of such construction. "What he has been
incredibly successful at is building coalitions so everyone who is
interested in housing can work together."
Not everyone appreciates Pattinson's hard-driving style.
According to Thomas Miller, one of the state's leading
construction-defect attorneys, Pattinson tends to view issues in
terms of "black and white." He sees only the builder's side, Miller
asserted.
A need for compromise?
Because of their reluctance to compromise, Pattinson and other
building industry leaders have failed to win approval for legislation
that would significantly reduce the threat of construction-defect
lawsuits, Miller said. To do that will require the cooperation of
attorneys, he holds.
"It is all coming down to compromise legislation," Miller said.
"I don't know that he can compromise but I think leveler heads will
prevail."
Pattinson offers no apologies for being a champion of home
builders.
"I got involved in this because of my shock and disgust at the
construction-defect situation," he said. "For any of us who
volunteer, there is a defining moment that pushes you over the edge."
A professional detour
Perhaps Pattinson's competitiveness has its roots in his youth.
He attended Luton College of Technology in Bedfordshire, England, but
briefly considered a career as a professional soccer player.
"I never made it as a full-time professional but I played in the
youth league of a professional club," recalled Pattinson, who still
enjoys the sport.
Instead of taking to the field, he chose a conventional career,
eventually joining a company that was bought out by Barratt.
Barratt Developments PLC opened an office in Southern California
in 1980. Pattinson came to the Golden State in 1983. He became
president of Barratt San Diego in 1984 and took the top post at
Barratt American in 1991.
One of Pattinson's goals as CBIA president is to change the
perception that developers don't always care about communities they
serve. That image couldn't be more false, he said.
"You cannot change public perception overnight," he said. "Our
opponents have done a hell of a job in painting us into the corner.
To a certain extent, we have been our own worst enemy by not being
fully engaged in the public debate. We are changing that. We are
much more engaged now."
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