Citing poor grounds care and unmet conditions, the Austin Planning Commission denied a request from Fox Pointe developers to modify and expand their plans for a local senior housing site.

“It seems to me we should be entertaining the conditions that haven’t been met,” commission chairwoman Lynn Spainhower said.

Developer Roger Derrick sought two approvals for the 20-acre development during the meeting Thursday: first, to adjust the land use in the comprehensive plan from low-density to high-density housing district; second, to amend their development plan to allow six-plex units instead of the approved four.

Derrick, of Edina-based Derrick Investors L.L.C., said the company is making moves now despite sluggish housing sales because of unbeatable construction prices offered by their sub-contractors.

“If we can build some units that are smaller and build them with a lot less money, we’ve already met with them, and we have some dynamite prices from them,” he said.

Located south of the Murphy Creek housing development and north of Wal-Mart, the site was originally slated to include 25 four-plexes when approved in 2004.

Edina-based Cottage Homesteads, which built Oak Park Village in the same region of Austin, was also responsible for public right-of-way extensions at Eighth Street Northwest and 22nd and 23rd Avenues Northwest, as well as a private road to Wal-Mart, though thus far has not completed the first phase of the development.

“Unfortunately, early on we ran into a situation where individuals were worried about selling their houses,” he said. “The biggest problem we had was having the unit ready by the time they sold their home. Now, it’s the opposite, of course.”

Derrick said in order to accommodate seniors skittish about selling their home, Cottage Homestead decided to build smaller, cheaper housing at the Fox Pointe site, with the hope that lower prices would encourage those concerned about acquiring debt.

“They are going to see that they can get a big discount, and, in turn, can pass that discount to the other side,” he said, noting that the six-plexes proposed are $10,000 cheaper to build than the four-plex counterparts.

“We’ll still have a variety of different sizes and prices,” he said.

The final product would include immaculate landscaping and a fountain, with an entry way similar to Oak Park Village.

Commissioners, however, expressed concern over the current condition of the development, which they said looks neglected.

One local man, who said he was representing his in-laws, asked that the commission deny the request or stipulate conditions because of state of the grounds.

“They do not have the funds to make it what they wanted in the first place,” he said.

Derrick conceded that the lawn “looks terrible,” and agreed the only excuse was a failed lending deal last fall.

“We made a mistake,” he said. “We’re going to clean that up, and do a much better job.”

Community development director Craig Hoium said the company did provide “security” to guarantee completion of its conditions.

Commissioner Suzanne McCarthy recommended the board refuse to approve the new plans or the land use adjustment until Cottage Homestead’s first phase conditions were met.

Both motions were approved 8-0.