In a recent government meeting, officials discussed a significant housing development project that will introduce 156 single-family homes to the area, with a focus on affordability and infrastructure improvements. The project, which is set to adhere to the South Dakota Housing Authority's maximum selling price of $385,000 for 72 of the homes, aims to support first-time homebuyers.

The development will be located in a low-density residential zone, with key road improvements planned, including the grading of East Anemosa and enhancements to Reservoir Road, classified as a principal arterial. The total estimated cost of the project is approximately $11 million, which includes capital costs, professional fees, and contingencies amounting to about $3.6 million, alongside financing interest costs of around $4.4 million.

Projected completion of the homes is scheduled between 2028 and 2030, with an anticipated increase in property valuation of $63.8 million upon completion. The development is expected to generate over $12.8 million in tax revenue, providing a robust financial return that will allow for the repayment of project financing within approximately 15 years.

The project will utilize Tax Increment Financing (TIF) to bridge funding gaps, ensuring that the development can proceed without shortfalls. The anticipated rate of return for the developer is estimated at just under 10%, translating to about $7,400 per lot sale.

Overall, this initiative not only aims to enhance housing availability for first-time buyers but also promises to stimulate local economic growth through increased property values and tax revenues.