Property Prospectors: Choosing where to build

The decision is based on numerous factors, including the cost of infrastructure, such as utilities and roads, and access to services.

Most developers employ reverse engineering – they start by figuring out what type of homes they want to build and then, after a location is picked, they make sure the land is zoned properly.

“If (the plan) is for single-family (homes), it’s less difficult than going multifamily or commercial,” said Tom Lacey of Lacey Brothers Construction, which has developed several area subdivisions including Shyanne Estates and Fox Hollow in Springfield. “Sometimes it goes easily and sometimes you see resistance.”

Infrastructure

Access to infrastructure is a recurring theme among developers. Stu Stenger of Ron Stenger Realtors Inc. said that’s part of the reason his company stays within or near Springfield’s urban service area – the area that reaches outside city limits, where City Utilities will extend underground sewer and water services.

“You can’t get too far out (from the city) because it becomes cost-prohibitive to extend the utilities to the development,” said Stenger, who is currently developing several subdivisions in and around Springfield, including Wild Horse, Lions Gate and Bent Tree.

“Either you buy the land and wait for the infrastructure to come to you, or you see if you can bring the infrastructure to you in a cost-effective way,” Stenger added.

Developing land that already has infrastructure in place can save money, but buying that land may be more expensive, developers say.

“Even if the land is in the urban service area, but you have to extend a sewer line to that property, that infrastructure cost is going to determine what you can pay for that land,” said Bob Fitzgerald of First Venture LLC, which has built developments such as Cobblestone Creek, Plainview Oaks and Frisco Trails, all just outside Springfield’s city limits.

“A piece of property that has sewer running to it is worth more than a property that you have to run sewer a quarter-mile,” Fitzgerald added.

Building in Springfield can alleviate the need for infrastructure – nearly all of the city already has utilities and infrastructure in place. But land is scarce.

Springfield comprises about 80 square miles of land, and only a few hundred acres remain for residential development, according to city Planning & Development Director Ralph Rognstad, who added that available land in the city may not be big enough for single-family residential developments.

With the amount of land shrinking inside Springfield, Lacey said he’s a proponent of infill – and so is the city.

“Developers should be focused on infilling – typically utilities are there, so you don’t have that hurdle,” Lacey said. “The big thing with infill is cooperation with the city and the neighbors.”

Outside the city

Because of the scarcity, other developers have looked to outlying communities for infrastructure needs.

Greg Huntsman, along with development partner Tim Pedigo, is building The Columns at Century Park in Nixa, the first phase of which comprises 105 lots just east of Main Street.

Huntsman said he wanted to build in Nixa because of the schools and the community’s growth – but even there, finding infrastructure was key when searching for property.

“There were a lot of great sites out there, but they didn’t have sewer, or utilities, or they were right between Nixa and Ozark and the two were trying to figure out who would supply (services for) the land,” Huntsman said. The Columns development is getting its utilities from Nixa.

Huntsman said cheaper land outside of Springfield is part of the reason that developments with less-expensive homes are cropping up in outlying communities such as Republic and Rogersville.

Developers must strike a balance between access to amenities – schools, transportation, hospitals and shopping – and the cost of land, which in Springfield is steadily increasing due to decreasing supply and strength of the local economy.