A large hole in the ground will become a water feature in a new housing development being built on the east side of Aberdeen.
The pit is the result of tons of dirt that were moved to build up the land that is now home to Central High School. For decades, property surrounding the hole has been barren. Now, rumbling equipment is getting it ready for new homes.
Pine Haven Estates has 30 lots, all of which will eventually have new houses.
Aberdeen real estate agent Larry Hanson has been involved with the project for about two and a half years. He said the substantial hole was originally a challenge to developing the land. Converting it to a water feature that will be behind some of the homes was the solution, he said.
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Retired Aberdeen engineer Lonnie Anderson has also been helping with the Pine Haven project.
He estimated that roughly 70,000 yards of dirt were hauled to Central decades ago. Through the years, developers have looked at the land trying to find a way to make it work for housing, Anderson said.
Finally, there’s a plan that will get the job done.
The hole is about 10 feet deep, but there’s about 4 feet of water in it, so it’s not like a slough, Anderson said. The slopes will be made gentler and seeded, he said, and there will be capacity for some local runoff, if needed.
Hanson said it’s possible the water feature could be used for ice skating in the winter months.
Hanson, Anderson both love working on housing developments
Hanson said he enjoys working on contiguous developments like Pine Haven as opposed to stand-alone sales. The project has reinvigorated him, he said.
“This kind of stuff is my passion,” he said.
The same can be said for Anderson. He helped the owners of the property, Jerry and DeAnn Reif, come up with a feasible development plan. The process wasn’t simple given the hole and spiraling construction costs, Anderson said.
Grant, TIF critical to Pine Haven housing development
Pine Haven would never have been possible without a grant and tax increment financing, said Hanson, who is charged with selling the 30 lots. The cost of the development has increased considerably, he said.
Originally it was expected to cost about $1.38 million to develop the land, Hanson said. The actual cost is going to be around $2.25 million, Anderson said.
That’s what made the grant and TIF critical, Hanson said.
A housing infrastructure program was created by state legislators in 2023. The South Dakota Housing Development Authority is overseeing the program, which will issue $200 million in grants to housing projects statewide. As of Feb 23, about half of the money had been awarded. Of that, Pine Haven got $750,000.
“This development would not have happened without the grant,” Hanson said.
The Aberdeen City Council also approved a $1.5 million TIF for the project.
With a TIF, the increased amount in property taxes resulting from development is used for qualified infrastructure improvements within the district instead of immediately going to local governments. TIF bonds have to be paid off within 20 years. When they are, the higher property tax total goes to local governments.
Hanson said he is confident the Pine Haven Estates TIF was done both properly and conservatively.
Anderson agrees that without the grant and TIF, the development wouldn’t have been a financial reality. Without TIFs, private developers wouldn’t be able to get anything done nowadays, he said.
Pine Haven isn’t the only local housing development that’s needed a grant and TIF help to move forward, Hanson said.
A market survey was needed to tap the grant money. Hanson, Anderson and the Aberdeen Development Corp. worked on the survey and it has been used by other housing developments, Hanson said.
Hanson, Anderson worked on Ashwood Heights in early ’90s
Hanson credits Anderson with being an important part of increasing housing options in Aberdeen. During his career as an engineer and time as member of the Aberdeen Housing Authority and Homes Are Possible Inc. boards, Anderson has had a hand in plenty of projects in town, including the Ashwood Heights development.
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Ashwood Heights has always been a satisfying project for Anderson. He used to drive through the development when he was having a down day.
“It always calms me down and gives me a good feeling, and now I live out here,” he said.
Anderson and Hanson first worked together on that project in 1993, Hanson said.
Pine Haven housing development has many benefits, Hanson and Anderson say
Access to Pine Haven will be via 12th Avenue Northeast on the south, 15th Avenue Northeast on the north and Kettering Drive on the west. It will be surrounded on three sides by trees with the city dike on the west side and is close to the bike path, parks and schools, Hanson and Anderson said.
The entire development is within the city limits.
Sidewalks need to be built along the water feature and in and beyond the development, not including on the east side near the dike, Hanson said.
He is selling only the lots. Buyers will have to build their own home within roughly two years of purchasing the land. For instance, he said, somebody who closes on a lot now will have to be finished building by the end of 2026.
If that doesn’t happen, the lot has to be sold back to the developer at a 10% discount, Hanson said.
He said three of the lots are sold with another transaction nearly finalized and that he gets regular inquiries about Pine Haven. There aren’t a lot of covenants within the development. But, Hanson said, a single-level house has to be at least 1,600 square feet, a home with a foyer has to have 1,092 square feet per level and a two-level house must have 1,000 square feet per level. All homes must have a two-stall garage.
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There are a lot of costs in housing developments that potential buyers don’t necessarily see or think about, Hanson said. They include all of the infrastructure that winds up underground, connecting necessities like electricity and water, soil testing, engineering and planning costs and tying into features like cable and internet services.
Construction of homes could begin in late summer, early fall
At first, the hope was that Pine Haven would be ready for home construction in November. But, Hanson said, the mild winter has helped and he believes the land will now be ready by late summer or early fall.
Dahme Construction is currently installing sewer and water on the land.
Anderson said the Reifs first reached out to him in August 2021. While it’s been a lot of work with ups and downs, Anderson said the process has been fun. He goes out to Pine Haven Estates regularly to check on the progress.
He’s happy everything has worked out for the Reifs, who live just to the west.
“It’ll be nice in their backyard to look right back and see what they’ve done,” Anderson said.