News/Press Releases

April 28, 2009 - Home-Grown Economic Stimulus

We live in a nation where we hear almost daily about the plight of the housing industry in the US.  We hear of slow new housing starts statistics, increases in foreclosures, and increasing housing resale inventories.  At the same time, we have been learning about a new somewhat unfamiliar term referred to "Economic Stimulus.

Brookings South Dakota is fortunately bucking the national housing trend and literally seeing "home-grown" economic stimulus. The insightful vision of governmental leaders in Brookings prompted a new development of affordable housing in the southwest part of Brookings thru the creation of Brookings’ first residential TID or Residential Tax Increment Financing District.  The district is known as "Valley View" and is a project of local developer Scott & Nancy Hodges and Keith and Cathy Rounds, all of Brookings.  The results have been nothing less than amazing.  The development broke ground in August of 2008.  Following infrastructure work, the first foundation was dug in early October of 2008 and the first residents moved into Valley View in December of 2008.  To date, 18 new homes have been sold and completed or are currently in various stages of completion. According to James Drew, Project Manager of Clark Drew Construction of Brookings who is acting as the General Contractors for the development, approximately 50 workers of various services are working at Valley View each day.  This consists of plumbers, electricians, framers, concrete finishers, roofers, carpet layers, finish carpenters, excavators, landscapers, material suppliers and more.  According to Drew, the positive economic impact to Brookings is tremendous.  "This development has had an unbelievable positive impact on the Brookings community.  It goes way beyond the  wages added to the community.  Sales tax revenues are being generated, excise tax is being generated, and properties are being added to the real estate tax rolls, all of which would likely not be happening without the vision of the developers and the Brookings City leaders who saw the need for affordable housing and made this happen.

According to Hodges, "This is Home-grown Economic Stimulus in the truest sense. I read real estate industry publications and visit with other agent throughout the US.  Eighteen new homes, in a small subdivision in a small town in South Dakota, is almost unheard of in these times.  Valley View's success has been further enhanced by the $8,000 tax CREDIT for first-time homebuyers which is a part of President Obama's Economic Recovery Plan.  It's a real rarity for economic stimulus to be created with housing these days.  It goes way beyond Brookings, too.  Seventeen of the buyers have purchased new appliances, many have purchased new home furnishing and window treatments, just to mention a few.  American workers, outside of our area, are benefiting from our Valley View project and it is both exciting and rewarding to be part of it."

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