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I\\u2019m often asked by both friends and listeners to the show how we decide to take on a specific project versus passing on an opportunity.
\\nThe fact is, there is no exact science. But we are looking for certain characteristics.
\\nIt starts with the people. Are the right people involved? If not, there is no sense starting on the project. Then we need to look at the market and then finally the specific deal.
\\nLet me give you a an example.
\\nOur latest project is the design of a new residential subdivision in the outskirts of Boise Idaho. Boise is a city that seems to be attracting people from higher density communities on the west coast. They\\u2019re moving for access to the outdoors, for the lower cost of living. The city is #4 in the country in terms of growth. There is a massive mismatch between demand and supply.
\\nA recent survey of the home listings found only 154 homes for sale of any description. The average days on market was 5.5 days. Prices were up on average 13.5% in 2020.
\\nWhen we found 45 acres across the street from a brand new high school, with new infrastructure including roads, a water treatment plant across the street and ample electric supply we saw a lot of potential. We are not fans of auction situations because we always end up paying more in those situations. In some cases we will engage in the auction if the numbers make sense. This was one of those rare cases.
\\nThe property is located on the edge of the suburb of Middleton. Middleton has grown by nearly 50% in the past few years. Future growth will require the annexation of more land from the county into the city. Even with the tremendous growth, there is nothing for sale. Any development land has sold out very quickly.
\\nWe saw this project as an opportunity to participate in community building. We had direct talks with the planning department and with the Mayor. We understood what the sentiment was within city council. We felt that we could develop a winning concept for the area, that would truly add value to the community.
\\nI know what you\\u2019re thinking. How is it that some guy up in Ottawa Canada is having conversations over zoom with the Mayor in Idaho about developing a new neighborhood thousands of miles away?
\\nMiddleton has another problem. 85% of the people who live in the community, don\\u2019t work there. How could we be part of the solution? We are not talking about necessarily building lots of commercial property. The work from home phenomenon is not just a temporary pandemic solution. Even once the pandemic is over, there will be a residual and substantial portion of the population who will want to work from home.
\\nWhen you consider the design of most homes, even recently designed homes, the question of work space has been largely ignored. This particular project represents a unique opportunity to create a live work play community.
\\nWe held our first community meeting last week with local residents where we shared many of the design concepts. It was an opportunity to hear first hand from local residents how they felt about development in the area.
\\nFinally, is this going to be an isolated project or does it form part of an ongoing stream of investment projects?
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