Thriving Tetons- Resisting Recession in the Rockies
by COLLEEN BIRCH MAILE
From Main Street to Wall Street, the nation seems awash in economic gloom. However, in the shadow of the Teton Mountains on either side of the Idaho-Wyoming line, talk of downturns and recession is met with little more than a shrug and a smile. This is paradise, after all, a territory encompassing Jackson Hole and Grand Targhee ski resorts, Grand Teton National Park and thousands of acres of wild, wooded places and blue-ribbon fishing streams. Here, only positive thoughts permeate the communal mindset.
“We are positive people. We don’t listen to the nay-sayers,” interior designer Sharon Jackson explained. After forging a successful career in Chicago, the Utah native moved to Jackson Hole a dozen years ago with her husband and business partner Dwayne Jackson. They continue to depend upon real estate for their livelihood and express no concerns about the health of the local business community. “This is just a real strong market; no two ways about it. The Rockies are a stronghold economically. People know that they can protect their investment by purchasing in the Rockies. If they buy here they just watch their dollars grow. It has to do with our quality of life.”
David Taylor agrees. The former investment portfolio manager from Cincinnati retired to Jackson Hole ten years ago at the age of 38. “I wanted to spend more time with my kids.” His family did plenty of hands-on research before deciding on the Wyoming cowboy town. “We rented a van in Salt Lake City and drove around. We went to Park City, [Utah] Vail and Breckenridge [in Colorado], up to Kalispell [Montana] and down to McCall and Boise [in Idaho]. One of the most appealing things to me, being from back east, was how green Jackson is. It’s heavily forested. I liked that. It also had a very vibrant economy but it wasn’t ostentatious at all. When I moved here, you did not see a Mercedes Benz. I think that was the way it has been since the beginning. Going all the way back to when the Rockefellers donated all that land to form Teton National Park, Jackson has always been low key. We liked that. I was not looking for something to do when we got here,” he said. “I just wanted to enjoy the place.”
Despite his intentions to retire, Taylor soon found himself busy again. When the general contractor he hired to build a custom home was unable to complete the job, Taylor took over. “It was great. The guys I hired to do the job had so much fun they wanted to do it again. I discovered I really liked designing houses.”
In the past decade, he’s built eight homes. They all sold for more than $3 million. “We’re seeing surprising strength right now. I have an $11.5 million spec home that has been on the market for a year-and-a-half. Last week I got two offers and now it’s under contract.”
Taylor’s optimism carries over to a new townhouse development he’s pursuing in downtown Jackson. Pine Glades includes 27, 3-bedroom, 3-bath townhomes located seven blocks from Jackson’s historic town square. They also border Bridger-Teton National Forest and Snow King Ski Mountain. “It’s a great product. The target market appears to be empty-nesters who don’t want to maintain a house anymore but want a ski-in, ski-out property that’s close to town and all the amenities it has to offer,” Taylor said.He also expressed pleasant surprise at the level of enthusiasm for the project’s eco-friendly characteristics. “It’s an LEED certified project and we anticipated that might appeal to about 5% of the market. Instead, we’ve discovered that more than 25% of our potential buyers have expressed a strong interest in the certification and what it means. We are very pleased with the project’s progress,” he continued.
“As I travel around the country, I don’t think things are as bad as the media makes it out to be. I was in Santa Barbara recently, and there’s very little at the high-end for sale. The asking prices there remain nosebleed high. Here in the Jackson area, land and [building] lots are particularly strong because there’s just so little left,” Taylor said.
Clayton Andrews, executive vice president of Sotheby’s International Realty, serves as managing broker responsible for daily operations of 11 real estate offices in Jackson and surrounding communities. He maintains that Jackson has always been a safe place to purchase property and will remain that way for a variety of reasons. “Wyoming has the advantage of not having a state income tax. That’s appealing. Also, the buyers who come to Jackson choose it for the lifestyle. You have people from all around the world who want to live here. Remember, the average home price is $1.2 million. This is a community that is not over-built or over-developed so there are fewer properties to choose from and that means there’s still plenty of demand here.”
The dearth of bare ground in Jackson proper fuels a healthy real estate market thirty minutes to the west in Idaho’s Teton Valley. In the area billed as “the quiet side of the Tetons” around Driggs and Victor, Idaho demand for vacation property holds steady.
The Moores moved their residence to the Idaho side two years ago. Sharon has an office in Driggs, population under 2,000. Dwayne holds real estate licenses in both Idaho and Wyoming. “We move between the two communities and are very positive about the Teton Valley as well as Jackson. We felt that what was happening here [in Idaho] really fit in with what we were doing. We have now combined construction management with interior design. There’s a lot happening over here in places like Huntsman Springs. We wanted to have a presence.”
Tiny Driggs, Idaho is rapidly transitioning from ranching community to second-home and vacation spot thanks in part to Huntsman Springs, named for John Huntsman, the billionaire philanthropist and industrialist behind the project. It promises to make a dramatic difference in Driggs. Bill Reid, director of the development, explained, “So far we’ve donated well over $2 million to the county for a new courthouse. There have also been donations to the local high school for athletic facilities. It’s a wonderful thing to be involved in. Once the Huntsman family puts their name on something, there’s no question about the quality and the integrity,” he said. “John Huntsman, Sr. grew up in Blackfoot, Idaho (about 100 miles to the west) and he’s loved the Teton Valley for a very long time. As an avid fly fisherman, he has a home here. This project helps ensure that the valley develops in such a way that it will be all the things it can be.”
The 1,350-acre project, just off Driggs’ Main Street, is billed as “smart growth” for its inclusion of open space and conservation efforts. When completed, it will include 650 residences including townhouses, cabins and single-family homes, an 18-hole golf course designed by David Kidd and a 300-room hotel. Approximately 500-acres will remain open space. A small buffalo herd will continue to roam the property. Reclamation efforts are rehabilitating former cattle grazing lands.
Reid comes to the project after a long career developing golf course properties throughout the nation. He said that the project is being well received by people “reaching out for a quieter time and the opportunity to have control in their lives. I’ve lived in lots of places, Florida, Arizona, California, Connecticut. Here, the quality of air, the reduction in traffic, the ability to see stars in the night sky is unsurpassed.”
The project also has an altruistic side. Reid explained, “In recent years John Huntsman, Sr.’s “passion has turned from building his businesses to philanthropic efforts.” Huntsman and his wife, Karen, funded the University of Utah cancer institute that bears their name with a gift of $25 million.
“This partnership [Driggs nurseryman and landscape contractor Mike Stears is also involved] has committed that if we are fortunate enough to make money a substantial portion will go to cancer research,” Reid said.
Huntsman Springs is not the only area development with a benevolent aspect. Five miles south of Driggs and just two miles from equally tiny Victor, Idaho, Teton Reserve is a golf-centric development that benefits higher education. Project Manager Mike McCarthy explained, “We are partners with Pepperdine University.” The 448-acre parcel was gifted to the school. “Rather than sell the property and put the proceeds into a conservative investment, [Teton Reserve] is part of the endowment.” he said.
The unusual partnership benefits developers and future property owners according to McCarthy. “Having what is essentially free land means we don’t have to worry about critical velocity. We can take our time and pay a great deal of attention to details.”
Homes are replete with all the high-end amenities typical of real estate in more exclusive resort markets. Prices are significantly less. “We have homes that are similar to what you’d find in Jackson or Sun Valley for $799,900,” he explained. Fractional ownerships—fully deeded one-eighth interests in turnkey cabins start at $139,000.
All owners benefit from players’ privileges at the nation’s only 18-hold reversible golf course. Designed by Hale Irwin, it includes 16 greens with alternate tee boxes. “Approached from different directions, they still have to be receptive. So, Hale Irwin had to create a primary routing that also could be played in the opposite direction. On any given day, the course actually changes directions. The grounds people are trained to make the switch. Signage has to change, too. Our 18-holes are actually four different courses. It’s an old tradition. The Old Course at St. Andrews is also reversible. This is the first in the U.S. We’re quite proud of it,” he said.
While McCarthy acknowledges that the valley is not experiencing the same “land rush we saw in late 2006 and 2007, it’s still a healthy market. There is so much to do here—hiking, biking, world-renown fly-fishing. Of course skiing. I am so glad to be in Idaho.”