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Economic group takes control of housing development
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| Win-win: The property at House Ridge Estates in its current form. SEAED, a non-profit group, says the community will benefit from affordable housing after it gained control of the property after the original owners filed bankruptcy last year. (Thelma Grimes/Photo.) |
Thelma Grimes/San Pedro Valley News-Sun
Instead of watching bankrupt housing developments sit empty, George Scott of the Southeast Arizona Economic Development Organization (SEAED) has decided to do something about it.
SEAED was created in 2008 to bring economic development to Benson and Cochise County. Without funding, Scott said that mission has stalled. But he is now optimistic about the future.
That optimism starts with the House Ridge Estates off Pearl Street in north Benson.
After about a year of negotiating with the National Bank of Arizona, Scott got the property turned over to SEAED, a non-profit organization.
House Ridge Estates currently has 17 empty lots, and one unfinished home sitting on it.
City Manager Glenn Nichols said after the original owners filed bankruptcy last year and the bank took ownership, the unfinished lots started causing drainage problems and other issues.
Scott said the bank will benefit from the proposal because now the property will be developed as originally planned and the bank will receive a percentage of home sale proceeds. SEAED will be able to raise needed funds, and the community will be the ultimate beneficiary because the plan will bring low-priced housing to first-time home buyers.
"One of the things we've wanted to do in Benson is help people get affordable housing," Scott said. "The banks have tried to sell the property, and they couldn't. We've talked to the bank, and they've agreed to allow our non-profit organization to complete the project with houses that are worth between $120,000 and $140,000."
Tucson developer Jim Bloodworth, who will finish the first home and build 17 others, is excited about the project.
Bloodworth, of Dycon Inc., has already signed on to begin construction, and said he is excited about working on a project aimed completely at entry-level housing.
"With the economy the way it has been, I think smaller communities have more of a market for first-time buyers," he said. "But, the problem is there is no market under $150,000."
Bloodworth said he and Scott have made House Ridge Estates a community project, and reached out to local real estate agencies, asking what is needed in Benson.
Local Realtor David DiPeso, who also serves on the SEAED board, said this is a great opportunity for Benson.
DiPeso said home buyers right now cannot get into a new home for less than $150,000, and in this economy, that is a tough sell.
"This is a project that will help the city more with finished houses rather than a bunch of vacant lots," he said. "Low-cost housing would be of help, and we know there is a market for new houses in that price range."
Bloodworth said local real estate agencies weighed in, telling him they could sell low-priced homes that were at least three-bedroom, two bathrooms without a problem.
"We started out with 20 housing plans, and boiled that down to four," he said. "These houses are a great opportunity to rebuild the city's market."
Bloodworth said he will work to finish the four-bedroom home as early as this week, and hopes to start on the others within the next 30 days. The houses will be cottage-style, and not stucco.
Scott and Bloodworth said they are anxious to get started because the federal government is still offering up to $8,000 in tax initiatives for first-time home buyers.
Nichols said SEAED, which officially owns the land, will still have to go through the proper permitting process, but the city will help the project move forward.
Scott said SEAED is already looking at other opportunities outside Benson, with the House Ridge Estates being the test project.
DiPeso said if this experiment goes well, SEAED would like to expand into other communities and bring not only economic growth to the county, but also providing an opportunity for young couples and families to purchase affordable housing.
Instead of watching bankrupt housing developments sit empty, George Scott of the Southeast Arizona Economic Development Organization (SEAED) has decided to do something about it.
SEAED was created in 2008 to bring economic development to Benson and Cochise County. Without funding, Scott said that mission has stalled. But he is now optimistic about the future.
That optimism starts with the House Ridge Estates off Pearl Street in north Benson.
After about a year of negotiating with the National Bank of Arizona, Scott got the property turned over to SEAED, a non-profit organization.
House Ridge Estates currently has 17 empty lots, and one unfinished home sitting on it.
City Manager Glenn Nichols said after the original owners filed bankruptcy last year and the bank took ownership, the unfinished lots started causing drainage problems and other issues.
Scott said the bank will benefit from the proposal because now the property will be developed as originally planned and the bank will receive a percentage of home sale proceeds. SEAED will be able to raise needed funds, and the community will be the ultimate beneficiary because the plan will bring low-priced housing to first-time home buyers.
"One of the things we've wanted to do in Benson is help people get affordable housing," Scott said. "The banks have tried to sell the property, and they couldn't. We've talked to the bank, and they've agreed to allow our non-profit organization to complete the project with houses that are worth between $120,000 and $140,000."
Tucson developer Jim Bloodworth, who will finish the first home and build 17 others, is excited about the project.
Bloodworth, of Dycon Inc., has already signed on to begin construction, and said he is excited about working on a project aimed completely at entry-level housing.
"With the economy the way it has been, I think smaller communities have more of a market for first-time buyers," he said. "But, the problem is there is no market under $150,000."
Bloodworth said he and Scott have made House Ridge Estates a community project, and reached out to local real estate agencies, asking what is needed in Benson.
Local Realtor David DiPeso, who also serves on the SEAED board, said this is a great opportunity for Benson.
DiPeso said home buyers right now cannot get into a new home for less than $150,000, and in this economy, that is a tough sell.
"This is a project that will help the city more with finished houses rather than a bunch of vacant lots," he said. "Low-cost housing would be of help, and we know there is a market for new houses in that price range."
Bloodworth said local real estate agencies weighed in, telling him they could sell low-priced homes that were at least three-bedroom, two bathrooms without a problem.
"We started out with 20 housing plans, and boiled that down to four," he said. "These houses are a great opportunity to rebuild the city's market."
Bloodworth said he will work to finish the four-bedroom home as early as this week, and hopes to start on the others within the next 30 days. The houses will be cottage-style, and not stucco.
Scott and Bloodworth said they are anxious to get started because the federal government is still offering up to $8,000 in tax initiatives for first-time home buyers.
Nichols said SEAED, which officially owns the land, will still have to go through the proper permitting process, but the city will help the project move forward.
Scott said SEAED is already looking at other opportunities outside Benson, with the House Ridge Estates being the test project.
DiPeso said if this experiment goes well, SEAED would like to expand into other communities and bring not only economic growth to the county, but also providing an opportunity for young couples and families to purchase affordable housing.
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The following are comments from the readers. In no way do they represent the view of bensonnews-sun.com.
WTH wrote on Feb 5, 2010 10:04 AM:
" Two ex-mayors of Benson are involved. The city manager says “ the city will help the project move forward.” Benson’s present mayor is a builder. How many other good old boys are involved? Taxpayers beware. "
Gary Reighard wrote on Feb 9, 2010 2:25 PM:
" Just think if this housing project works out then there will be a couple more stop lights in town because of the population growth & then we will really have something to complain about Huh? & by the way congratulations to Scott for doing something constructive to help Benson and Cochise county more power to you. yeaaa "
J - 6 wrote on Feb 3, 2010 5:32 PM: