Creating a place in a tough economy

South Main in Buena Vista, Colorado, began construction in January 2007, just as the nationwide housing bubble was bursting. It was bad timing for the 315-home development, located in a small former mining town 35 miles from the nearest ski resort. Yet cofounders and first-time developers Jed Selby and Katie Urban have nevertheless managed to create a sense of place and generate buzz recently. An August 12 article in the Denver Post describes a tavern and a boulder-climbing park, two new amenities that have helped to make South Main an attraction. Designed by Dover, Kohl & Partners, South Main extends the street grid of Buena Vista to the Arkansas River. A whitewater park and a riverfront green, where outdoor events and kayaking competitions are held, were built at the start. The project now has 26 houses and live-work units built or under construction. To survive, the developers have had to branch out in new business directions. South Main Development now designs and constructs most of the buildings in the project — which was not part of the original plan for Selby and Urban, who began by selling lots to other builders. They also own and operate vacation rental units. They plan to build and own a 14,000-square-foot commercial building in the town center that will have at least one restaurant, a bar, and a boutique hotel. “When you do mixed use, new urban development, you end up wearing many hats,” says Selby. “If the need is a bar, we open a bar. If the need is vacation rentals or construction, we do that. I find it overwhelming at times, but it is also challenging and fun.” Selby, who is the company president, had no idea what he was getting into. “I never read anything that accurately describes the job of town founder,” he explains. More revenues from building The construction business has helped South Main survive. The company sold two houses in 2008, but built eight (mostly houses that were sold in 2007). The development started with outside builders, but construction costs were high and unpredictable, says Katie Urban. Also, it was difficult to get them to meet design guidelines — the design review process was brutal, she says. “We’d rather not have the buyer go through that and then lose the buyer,” she says. South Main’s company architect, Kenny Craft, helps to “keep houses on time and on budget,” she adds. Business has picked up a bit. Six house contracts were recently signed, but these are contingent on the buyers getting financing — which is by no means assured in this financial climate, Selby says. Three houses are under construction, which is in itself unusual in this economy, he says. “The town’s other major developer went out of business,” he adds. The vacation rentals and the planned mixed use building are part of an effort to profit from the growing popularity of the neighborhood. “We’re looking at diversification,” Selby says. “We created this really cool place. Lots of people come here and use the boulders and the whitewater park and picnic, but we don’t get financial benefit from that.” In this economy, Selby adds, “Selling beer is more profitable and predictable than building houses.” He hopes to get eventually sell between 12 and 20 houses a year in South Main. The company has a total of about 500 units to build — they also purchased 84 residential lots and commercial properties in the historic downtown, mostly from 2005 to 2007. The idea is to eventually seamlessly connect the new and the old urbanism. Also, when the real estate market recovers, prices will go up in South Main, Selby predicts, and the old town lots will provide a more affordable option for buyers.