Archive for Saturday, March 14, 2009
Mixed tides: Developers give different forecasts for housing market
A Bower Brothers Construction dump truck hauls dirt Thursday at the Frazier East development site. Crews have moved about 140,000 yards of dirt in the past three months in anticipation of construction work starting later this year. A new apartment complex is expected to be the first building project in the area, followed by affordable housing and commercial developments.
March 14, 2009
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By the numbers
City officials expect to see progress on two new residential developments in Craig this year. They are:
Frazier East annexation, 208 acres south of the Pineridge subdivision
• About 96 apartment units built this year
• Between 200 and 300 duplexes and town homes built as the lots sell
• About 12 single-family homes to be built at a later date
• More than 360,000 square feet of available commercial real estate
Hillside, 22 acres south of Moffat County High School
• Nine single-family home lots on Ninth Street developed and ready to sell this year
• About another 86 single-family homes to be developed and sold later
Although the economy always is a concern, investors with Las Vegas-based 9 Cent LLC do not plan to delay building a new apartment complex in Craig this year.
The Bluffs Apartments is expected to be the first of an eight-phase process at the Frazier East annexation on Colorado Highway 13, south of the Pine Ridge subdivision.
"We'll probably be a little bit more cautious, but we shouldn't have to slow down," said Blair Hadley, 9 Cent operating manager.
His is one of two residential developments city officials called "active pursuits" for this year.
The other, Hillside, is planned to eventually be a new 95-home neighborhood south of Moffat County High School.
Together, the two ventures could add almost 100 apartment units, more than 100 single-family houses, and 200 to 300 duplexes and town homes to the community when completed.
Dave Costa, Craig community development director, said he's pleasantly surprised to see such a gung-ho attitude among investors.
"We don't know how long the doggone economy is going to be down, but whenever it comes back, these guys will be right there," Costa said.
It is "absolutely" smart for developers to start building now, he added. Along with everything else in this struggling economy, construction and material costs are down.
A little bit of everything
Although the national housing market has been reduced to rubble in many American cities, Craig has room to grow, Hadley said.
He's not worried about convincing people to move to Craig or about natural gas companies shutting down and moving their workers elsewhere.
Moffat County has a built-in market - the people who already live here - for affordable housing and apartments
"The apartments are being built for the citizens already in Craig," Hadley said. "It never had anything to do with the natural gas companies or a big, attractive housing market. We can just see that people want new apartments. There aren't enough."
The 96 apartment units are only the beginning, Hadley said.
He and his partners next plan to build 200 to 300 affordable twin homes, which will be built as people buy them.
About 363,000 square feet of commercial space also will be available along Colorado Highway 13. Hadley said people representing a broad range of developments - including a church, a convenience store, a motel and a restaurant - have called for information.
By May, Hadley hopes to finish the city's planning process and have Colorado Department of Transportation approval to build a new access off Colo. 13. After that, crews could begin building the apartment complexes, which should take 180 days to finish after they're started.
For more information on the project, see its newly launched Web site at http://thebluffsatcraig.com.
In-town living
Westminster-based Diversified Consulting Solutions has an extensive role in the Frazier East project. The business' two partners, John Sattler and Dan Giroux, worked with the city on the development's annexation, civil engineering and architecture work for the apartment buildings.
They also have their own project in the works under a different company called Havrilla Meadows LLC.
Hillside, a neighborhood of about 95 single-family homes, is the pair's chance to build something in Craig exactly like they want, Sattler said.
Their company has been a part of nearly every major construction project in the area for the past two years, including work with Moffat County School District, The Memorial Hospital, Colorado Northwestern Community College and Frazier East.
Sattler said the work they've done recently has given the duo a strong sense of Craig and what its future could hold.
Because of that, they're not too nervous about the housing market.
"We've been involved in this industry for a lot of years," Sattler said. "We've seen downturns in the market and seen markets recover. It never seems to take as long as people are afraid of before things get better again."
On top of that, Craig real estate is markedly different from the rest of the country, he said.
"The national trends, in our view, don't reflect the reality of Craig," Sattler said. "Craig's a pretty key location, in our opinion, for a lot of continuing growth."
Others not so sure
Two other residential developments in Craig are on hold, at least one of which because the developers don't trust the market.
Mike Anson, who is developing the Overlook subdivision near Ridgeview with Craig resident Jay Oxley, said his project will stand still for the time being.
"We just don't think there's a market for it," Anson said. "We need to see there's going to be an influx of people coming to Craig and that people are willing to make big purchases again."
The other development - Western Skies, located west of Ridgeview - has fallen off the city's radar, officials said. The contact person, Fred Blum, of Denver, could not be reached for this story.
Whether or not Anson continues the Overlook project this year, his livelihood is somewhat tied to the strength of the local housing market. His business, Anson Excavating & Pipe, depends on a healthy construction industry to have work.
Anson said he's optimistic for the future, but he has no way of knowing his industry's stability until springtime, when the building season starts.
Joe Bower, who co-owns Craig-based Bower Brothers Construction, said the same thing while working at the Frazier East site.
Bower and his crew have been doing most of the needed dirt work there during the past three months.
If construction does pick up, there will be plenty of people ready for a job, he said.
"I get five cars a day drive through here, looking for work," Bower said. "Sometimes whole families."
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Question of the week
Should the Craig Chamber of Commerce revise its State of the County attendance policy to allow people to hear speakers without paying for a ticket?
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