In a Twist, Builder Asks to Scale Down Project : Development: The developer of Rancho San Rafael asks to reduce the size of homes to make a ‘more salable product.’

GLENDALE — Polygon Communities of Irvine, builder of the giant Rancho San Rafael development, wants to scale down the size of houses it builds on the final 77 lots in the 588-unit subdivision.

The economy was better when developer J. M. Peters bought graded lots from Polygon for the final phase of the project and won city permission in 1989 to increase the size of proposed houses to allow such amenities as four and five baths and a “teen room” bonus space.

But the final phase of the project hit hard times after just four models were built and was taken over by the federal Resolution Trust Corp., which sold it back to Polygon.

Polygon, which won City Council approval to build the entire hillside development in 1986, pledged to complete the 316-acre development east of the Glendale Freeway (2) at Mountain Street.

Polygon officials Tuesday asked the council for permission to reduce the size of homes by an average of 425 square feet, or 12%. The homes would still range from 2,700 to 3,200 square feet and include three or four bedrooms, convertible dens and three or four baths.

Polygon consultant Marlene Roth said the reduced size is considered “to be a more salable product” under current economic conditions.

She declined to speculate on the price range of the homes but indicated that the savings could be as much as $100,000.

Rancho homes have ranged from $290,000 for townhouses to more than $600,000 for large houses on view lots.

“Are we getting back to normal where people are willing to live in a house with less than 5,000 or 6,000 square feet?” Mayor Carl Raggio asked.

He was referring to so-called “mansionization,” in which homes were being built that nearly filled their lots. The city last year adopted rules to halt the practice.

The council postponed action until next week. Model homes for the final project are expected to be open by next March, with completion of the entire Rancho San Rafael development scheduled for June, 1996, Roth said.