Wednesday, April 7, 2004

Valley construction boom unabated

‘It’s going to be a very busy year’

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By GREGORY FOLEY
Express Staff Writer

With warm weather and low interest rates prevailing this spring, Blaine County’s developers and builders are gearing up for a busy construction season in 2004.

Construction is under way at Copper Ranch, a new 135-unit condominium project on Woodside Boulevard in Hailey. It is on one of the largest projects this year in the fast-growing town, and its plans also call for a new athletic center. Express photos by Willy Cook

In Sun Valley, 24 building permits have been issued this year, up from 13 at the same time in 2003. In Hailey, several large commercial projects loom on the horizon. And in Carey, population 525, city planners are reviewing a proposed pair of projects that could establish nearly 100 new residential lots.

"The buzz going around is that it’s going to be a very busy year," said Willy Hammond, Sun Valley building official.

Dave Wilson, owner and president of Ketchum-based Wilson Construction, concurred.

"It seems to be shaping up strong," he said. "I haven’t seen any indication that it’s not."

Indeed, despite a somewhat stagnant national economy and lofty prices for construction materials, building in Blaine County appears to be on the rise.

Figures compiled by the Building Contractors Association of the Wood River Valley indicate that 132 building permits have been issued this year, up from 127 through the first three months of 2003. (The figures pertain only to the Wood River Valley area and do not include Carey.)

The estimated value of Wood River Valley construction projects permitted through the first three months of 2004 is approximately $35.7 million, up from $26.2 million during the same time period in 2003.

In March, Blaine County issued 30 permits for new residential and repair projects worth an estimated $11.8 million.

Eric Adams, Ketchum building official, said construction in Ketchum appears to be "on par" with last year but will likely surge when numerous proposed projects complete the city’s design-review process.

"It’s picking back up again," he said, noting that building activity was fast and furious in the late 1990s and then tapered off somewhat in recent years. "The projects coming through design review make it seem like it will be a busy year."

So far this year, the city of Ketchum has issued 22 building permits. However, several large residential projects proposed for parcels in downtown Ketchum and southern Ketchum could provide a late-season boost to local construction activity.

In addition, Ketchum developer Brian Barsotti is expected to apply later this year for a building permit to construct an approved 80-room luxury hotel on the site of the defunct Bald Mountain Lodge on Main Street. That project alone has been valued at $35 million, money which Barsotti is still seeking to raise.

City officials also expect that the approved 32-unit Pineridge residential project—proposed for the site of the Heidelberg Inn on Warm Springs Road—will be commenced this year.

Dave Ferguson, Hailey building official, said building activity there is expected to be considerable again, following a pair of strong construction years in 2002 and 2003.

In 2003, construction in Hailey was valued at $31.7 million. A total of 307 building permits were issued in the city that year.

"I feel it is a boom time for us," Ferguson said. "I feel property values in the North Valley are so high many people cannot afford to build there."

One of the largest projects in Hailey this year will be at Copper Ranch, a new 135-unit condominium project on Woodside Boulevard. Plans also call for a new athletic center.

Ferguson said an overall decline in the availability of residential lots in Hailey could drive new residential development southward, while many light-industrial projects seem to be moving from Ketchum to Hailey.

New commercial activity in Hailey will likely include a new hotel on Main Street and several new projects in the Airport West subdivision.

Wilson—who is also the first vice president of the National Association of Home Builders, a Washington D.C.-based trade association—said the building industry is strong nationwide.

"Nationally, we’re going to have 1.8 million housing starts," he said. "The West continues to be very strong. Resort communities tend to be very strong."

Wilson said he believes an overall lack of available land for development could be the only sizable impediment to the construction industry in the Wood River Valley.

"Land is the issue," Wilson said.

With interest rates on housing loans hovering around 5 percent the last year, other regions of Idaho also are experiencing strong growth in the construction sector.

In 2003, the value of all construction in the state was estimated at $2.36 billion, an increase of approximately 12 percent over 2002.

The Idaho Mountain Express is distributed free to residents and guests throughout the Sun Valley, Idaho resort area community. Subscribers to the Idaho Mountain Express will read these stories and others in this week's issue.