Construction on the first house at Sky Ridge, a workforce housing development and adjacent sports complex near Exit 17 in Spearfish, began last week in a groundbreaking ceremony on December 9 to create affordable housing for Spearfish.
âThe need for more affordable housing has long been a concern for communities across the country, and I am proud that Spearfish has worked to make this priority a reality,â said Mayor Dana Boke. âSeeing the start of construction on what will become a home for a local family is exciting, and I am grateful to everyone who worked hard to bring this project to fruition. “
Sky Ridge, located south of Colorado Boulevard and west of US Highway 85, consists of 150 labor housing lots, developed in phases over five years. The current contract requires that 40% – or 60 homes – be sold for $ 197,000 or less; 40% more for sale at $ 247,000 or less; and the remaining 30 homes sold up to the maximum price established by the South Dakota Housing Development Authority’s First-Time Home Buyers Program.
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The square footage of home designs ranges from 800 to 1,700 square feet. Dream Design International, Inc., based in Rapid City, is responsible for the construction of the houses.
âWe are delighted to begin building these stunning homes,â said Hani Shafai, President of Dream Design International, Inc. âWe have worked hard to provide high quality, efficient homes at an affordable price, and we are look forward to starting construction and strengthening our relationship with the Spearfish community. “
The first three residential building permits have been issued, and 27 more homes are expected to be under construction over the next year.
Spearfish Economic Development Corporation executive director Kory Menken said one of the main concerns for Spearfish employers is the growing difficulty in finding reasonably priced housing for middle-income workers.
âThe development of Sky Ridge is a big step in the right direction to help provide homeownership opportunities for our skilled workers, police, educators, healthcare workers, retail professionals and more. others who wish to both work and live at Spearfish, âMenken said. noted. âSEDC congratulates the Town of Spearfish and Dream Design International for making this project a reality, and we are proud to have been a part of it.
Ownership of the development was purchased in 2019 and construction began in fall 2020. In addition to housing, the development includes a sports complex that will include six regulatory soccer fields and four regulatory softball fields.
A 2016 housing study in Spearfish highlighted the need for more affordable housing options in Spearfish and indicated that the city should take an active role in developing housing for the workforce. The mayor and city council, working with private industry, worked to establish a plan that enabled a public-private partnership between the city and Dream Design International to improve the supply of affordable housing in Spearfish.
The city is responsible for the construction of streets and utilities in Sky Ridge, with these costs to be recovered through an established tax escalation district. A TIF district is a public financing system that uses future property tax increases to reimburse the costs of public improvements built within the boundaries of a designated TIF district.
As the real estate value increases in this demarcation area, higher tax revenues result. This tax increase is then used to reimburse the costs of public improvements created to support the project and is returned at source.
Construction at Sky Ridge will be on view over the next five years, with the approximately 40-acre sports complex set to open for play in the spring of 2023.