Housing boom projected in Quincy

QUINCY — Local officials here fully expect to experience a housing boom in the next two years as 800 new homes are constructed, jumping sharply from the past when a robust year of growth meant 15 homes were built.

The city is also trying to expand its growth management area to gain more control of valuable real estate surrounding this community of about 5,400 people, enabling it to supply municipal services to future industrial residents.

In less than a year, the city has been thrust into a technology explosion. It has become the envy of economic development boosters throughout the Northwest.

Yahoo! Inc. broke ground here last week on a jumbo data center. Microsoft Network is already well under way building its largest ever data center. The two Internet heavyweights, along with others who are considering a move to Quincy, are attracted to the area's inexpensive power. But Quincy also has cheap land, sits 10 miles north of Interstate 90, and has a 40-acre intermodal facility with direct rail links to Seattle and Tacoma.

Quincy Mayor Dick Zimbelman says the city has spent the last several years dealing with a constant housing shortage. With the recent interest by large companies, the shortages have been magnified.

"I would say approximately 50 percent of the people who work here in Quincy live out of town," he said.

He said the city will need as many as 800 homes in the next two years. And that's a conservative estimate, he said. The soaring housing demand is fueled by the industrial and business growth.

"Right now, I think the (Quincy) port district is almost daily looking at some new company calling about locating here," the mayor said. Zimbelman can't reveal what businesses have shown an interest, but not all are from the high-tech field, he said. "One of them is in medicine."

Each permanent job creates additional support jobs within the community, he said.

"With housing, that's going to bring other businesses, restaurants, stores, and you name it," he said.

So far, city officials know one builder already plans a housing development with 450 new homes, Zimbelman said. Another is set to construct 190 homes. A third will add 90. Two other developments are on the drawing board, but city leaders haven't learned the exact number of homes planned.

Grant County Commissioner LeRoy Allison said he recognizes Quincy has a big need for housing. The city has asked for an expansion of growth boundaries. Within the city's expansion proposal, they seek to add a 400-acre residential neighborhood to the north of town. They plan to add a 181-acre neighborhood to the south.

"They're exceeding their growth estimates by a long shot, already," Allison said. "Now, having these large industries come with major business, major housing needs; it's incredible."

The housing needs are varied, too, he said.

"They've got short-term housing needs for construction and they're going to have some ongoing needs, also," Allison said.

City Administrator Tim Snead said Quincy and the county have always worked well together. He expects the city will be able to expand its growth boundaries to accommodate the potential businesses and industries with the necessary municipal services.

"I think the commissioners realize with Microsoft and Yahoo! coming here that there are some real possibilities in Quincy," Snead said. A decision on growth boundaries should be made by early next year.

For now, the city still has a housing shortage. Many teachers working in Quincy commute from the Wenatchee area. Some construction workers, who are coming to Quincy to build the Internet data centers, are staying at Potholes State Park near Moses Lake. Others are living in communities like Ephrata and Soap Lake. Quincy has half the average number of vacancies needed to ensure housing is available at reasonable rates.

"We're running out of inventory right now," said Cindie Conklin, the managing broker with TEC Real Estate Inc. in Quincy. "But we're solving that situation with some of these developments."

Jose Saldana, a Quincy City Council member and the owner of Quincy Realty, said the community needs more homes priced for middle-income buyers. He said Quincy needed the homes long before Microsoft and Yahoo! focused their attention on the Basin.

Saldana has lived in Quincy for 26 years and spent 10 years working as a real estate agent. He said home builders need to consider that most shoppers are looking to spend around $125,000.

"Most of the homes that are for sale right now are out of the reach of the low- to middle-income people," he said.

"We need affordable housing," Saldana said. "When you build a 1,200-square-foot home for around $125,000, those homes are going to sell fast."

He predicts considerably more modest growth in the future, saying 50 homes per year might be likely. Most importantly, though, more homes must be built, he said. Demand must be met. Skyrocketing prices must drop.