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Greater Huron Development Corp. proposes three-year pilot to sell CTE-built houses in new Dogleg Court development
Summary
Greater Huron Development Corporation presented a plan to partner with the Huron School District to finance, market and sell houses built by the district’s CTE program over a three-year pilot, paying the district a flat fee plus a share of profits and aiming to keep property tax revenue in Huron.
Ted Hader, representing the Greater Huron Development Corporation, presented a three-year pilot proposal on Jan. 13 to partner with Huron School District 02-2 and the district’s career and technical education (CTE) program to finance, site and sell houses the students build as part of their construction curriculum.
Under the proposal, Greater Huron would provide financing, design, site work, marketing and sale services. The district’s CTE program would continue to build the houses in the school’s indoor facility; completed homes would then be transported to buildable lots in a new subdivision called Dogleg Court north of the postal sorting facility and west of Peaceful Pines. Greater Huron proposed to pay the district a flat fee of $6,000 in year one plus 10% of profits from each sale; the flat fee would increase by 3% in years two and three, with the 10% profit share remaining constant.
Why it matters: under the current practice, recent CTE-built homes were moved out of the city and generated property tax revenue elsewhere. Hader said the pilot aims to retain those property tax revenues and to support local housing development while keeping CTE educational opportunities intact.
Program details and logistics
- Who: Huron School District CTE program will build the houses; Greater Huron Development Corporation will provide financing, design, site work, marketing and conduct sales. - Term: proposed three-year pilot to align with an existing contract with Builders First Source for materials and CTE support. - Compensation: proposed year-one flat fee of $6,000 to the district plus 10% of sale profits; flat fee escalates 3% in years two and three. - Sites: initial lots proposed in Dogleg Court (new cul-de-sac under construction); if that development fills, future lots could be in Southtown near Coborns. - Construction process: houses are built in the district’s indoor CTE facility and then moved to the permanent lot; moving costs were acknowledged as an expense in the plan. - Local subcontractors: Hader said the project would use local subcontractors for concrete, plumbing, electrical, dirt work, sprinkler systems and sidewalks as much as possible.
Hader said the CTE-built homes that remain in city limits generate ongoing property tax revenue to the district. He presented a five-year average of district shares of property tax for earlier CTE homes, citing figures of roughly $2,000–$3,700 for the examples shown, and said losing recent homes to locations outside the city was “a little bit of heartburn” because of the foregone property-tax and housing growth opportunities.
Board response and next steps
Board members reacted positively; one member called it “a win win for both entities.” The board did not take action on the proposal at the Jan. 13 meeting; the item was presented as a report and Hader said he would bring it back as new business on Jan. 27 with a formal recommendation for board approval.
Ending: If the board approves the pilot at an upcoming meeting, the district and Greater Huron plan to proceed with site selection, local subcontractor agreements and sale preparations for homes built by the CTE program.
