Construction work is scheduled to resume this summer on Carey’s 66-lot Waterford Park subdivision, which is attracting investors interested in “enterprise philanthropy.”

Lots are being sold at a fraction of their original cost, and cost of construction is down, which allows homebuilders to build and compete in this otherwise depressed market, said Rick Ryerson of  Sun Valley Intermountain Management, LLC.

Homes will be priced at $165,000 to $200,000 and provide amenities unavailable in any other neighborhood within 30 miles. In addition, developers are putting the final touches on a plan under which qualified homebuyers will need no down payment, sharing appreciation with outside investors.

Although many construction projects are still stalled by the economic downturn, Carey’s location makes it an ideal place to resume building from both business and philanthropic points of view, Ryerson added. “The timing is right,” he added, noting that the economy is beginning to move forward and that housing prices across the nation rose for the seventh straight month in December.

Carey is 39 miles southeast of the ski resort area of Sun Valley, where five hotels and a new rodeo stadium are in various stages of the approval process. It also is 45 miles west of the Idaho National Laboratory, where a $2 billion expansion project is expected to require more than 1,000 workers over the four-year construction phase and 400 additional permanent employees.

Most of the infrastructure at Waterford Park already is in place. As a result, investors are able to buy into the development at approximately 55 percent of the replacement cost and 66 percent of the current market value of $65,000.  

“This minimizes the financial risk for investors, and offers the side benefit of helping teachers and other public employees find affordable housing,” he added. “We want to follow a model that one of our partners, John Scherer, brought from his father’s family in California. His father twice helped a key employee with the down payment and then shared in the profit when the home was sold.”

Ryerson noted that there are an estimated 3,000 workers in the area who earn less than $40,000, which is the threshold to qualify for a loan of $150,000. “Their jobs are necessary to the stability of the local economy, supporting schools and other public services as well as the hospitality, food service, medical and retail sectors,” he said.

“‘Enterprise philanthropy’ helps everyone. We think there are enough investors who will be attracted by a competitive rate of return coupled with the opportunity to do good,” he added. Discussions already have begun with the Blaine County school district on the specifics of a program for its employees, he noted.

The school district offers a number of programs to help new teachers acquire their own homes or to subsidize their rent. There also are a number of other incentive programs that offer “affordable housing” but most limit how much profit people can receive, or specify who future buyers of the home may be. 

This new program, matching “patrons” with qualified homebuyers, has none of those types of restrictions, Ryerson explained. “It is totally based on profit sharing. The bulk of the benefits go to the home buyer, but it still is a good deal for the investing patron,” he said.  “In short, we believe that where there is a will there is a way, and we can work to mix or match these programs.”

The first step this summer will be to complete improvements to the city water system, fulfilling the development’s obligations to the city.

 The 66-home subdivision has quarter-acre lots, half of which surround a 3-acre community park with a custom play structure and picnic tables, city water and sewer, fully landscaped open spaces, and a lighted walkway to the adjacent K-12 Carey School, completed in 2008. Carey is part of the Blaine County school system, rated as one of the best in Idaho. The lots also are close to an airstrip and an adjacent 33-acre site where commercial and industrial development is planned.

Ryerson noted that many of the workers in the Sun Valley area already commute from 50 to 80 miles because of the high cost of housing, with prices over the past 12 months averaging more than $1.3 million in Ketchum, $315,000 in Hailey and $282,000 in Bellevue.

“Carey is closer to Sun Valley than the current homes of many people who work there. The commuting distance to the INL is the same as for the nearly 9,000 employees who now travel from Pocatello and Idaho Falls,” Ryerson added. “However, the cost of housing will be lower, and residents will be much closer to the recreational and cultural opportunities in the Sun Valley area. It makes sense as a housing location both for INL workers and Sun Valley area workers.

“Carey is a family-oriented community that has planned for positive growth,” he said. “This project is especially attractive to the town as it is expected to bring in almost 300 new residents, approximately half the current population of 600. The project also is attractive to the school district, which has a special program training students for the construction trade.”

Lots are for sale with prices starting at $55,000. There also are openings for  investors in  the overall  enterprise philanthropy program, as qualified homebuyers seek housing under this program.

“Relatively low land prices and low construction costs give us the ability to create affordable housing,” Ryerson said. “Our goal is to offer affordable home ownership without having to compromise on the quality of community, or be hamstrung by onerous requirements that take away incentives.  Most the government programs, although are well-meaning, are flawed. This is one that will appeal to risk-adverse investors, looking for long-term economic gain.

 “We believe that this is an exceptional opportunity. Waterford Park is a model planned community, and buyers have the ability to create a custom home, choosing floor plans, architectural features, colors, finishes and other amenities. There are very few places in the country offering comparable, quality housing at this price.”

With today’s low mortgage rates, he noted, people often can own a home for the cost of rent, assuming they have the down payment.  “Enterprise philanthropy programs have enormous benefits for people who lack down payments or whose income is not high enough to qualify for conventional loan programs,” he said.

Waterford Park was developed by Waterford Partners III, LLC.

The general partner in Waterford is Sun Valley Intermountain Managers, LLC, which is owned by longtime local businessmen Charlie Holt, Rick Ryerson and John Scherer.  Holt is a 39-year resident of the Wood River Valley and an established builder and developer. Ryerson is president and CEO of Charter Equities, Inc., which has built and developed industrial, retail and multi-family projects in Washington and Southern California. Previously an executive officer of the company that was Boeing’s largest landlord, he began visiting the Sun Valley area 40 years ago. Scherer is a 31-year resident of the area, working in real estate investment and development, agriculture and landscaping.

Additional information about Waterford Silver Creek is available by calling (208) 806-0385 or visiting the Web sites at www.waterfordsilvercreek.com and www.enterprisephilanthropy.org.

Jo Murray is a public relations consultant to Waterford Park.