OR bucking housing trend

Developers looking toward future for city with a storied past
By Bob Fowler (Contact)Saturday, June 28, 2008

OAK RIDGE - Nationally, the economy is struggling, with housing starts down, foreclosures up, the stock market sinking like a rock and joblessness on the rise.

But in Oak Ridge, there are more than 5,000 housing units in the pipeline, or nearly half of the Atomic City's current 12,000 homes and apartments.

What's going on?

Developers sense there's an opportunity to grab a bigger share of residents from new hires at federal facilities in Oak Ridge, said Parker Hardy, president of the city's Chamber of Commerce.

"That's the challenge we have," he said. "That's the generational opportunity we must address."

Hardy said there are an estimated 6,000 to 7,000 employees at Department of Energy facilities in Oak Ridge or who work for DOE contractors that are either eligible to retire or will be soon.

The challenge, Hardy said, will be to convince those new hires - "that bubble in the hiring curve" - to live in Oak Ridge rather than Farragut or elsewhere.

There are hurdles in that game plan, officials acknowledge.

Oak Ridge is a city with an unusually large number of older residents.

It's burdened with a lingering nuclear legacy and the perception by some that the landscape is tainted with radioactive debris.

Faced with a stagnant retail environment, empty store fronts and the resulting lack of sales tax growth, there is intense pressure on an already high city property tax rate.

Officials are forecasting tax hikes of 12 cents a year for the next few years.

Still, some parts of the troubled national economy may work in favor of Oak Ridge's now-frenzied pace of housing development.

"High gas prices mean higher commuting costs, making it more attractive to live where you work," Hardy said.

There are 14 housing development projects under way or in the planning stage in Oak Ridge.
They range from $100,000 homes for up to 40 low-income families in the Scarboro community to $600,000-plus villas in a gated community called Rockbridge Green.

The biggest development, Rarity Ridge in deep west Oak Ridge, could have as many as 3,000 homes.

Developer Mike Ross recently acknowledged that the project is moving at a slower-than-expected pace.

Chamber statistics show there are 32 homes in Rarity Ridge and 44 units under construction.
Developers of Centennial Bluff, condominiums for residents age 50 and older, report they've already had brisk sales even before construction begins.

That "lifestyle community" with about 400 units will be at Edgemoor Road and Melton Lake Drive.

The latest developers to showcase plans amid much fanfare Thursday were the parties behind Groves Park Commons.

That 325-unit project bills itself as a "traditional neighborhood development" and is taking shape off Tuskegee Drive on the former South Hills Golf Course.

Prices will range from $250,000 to $490,000, and the development will feature a commons area, walking trails and lakes.

"So far, all the doors have opened," said developer Walter Wise of the efforts to date. "I'm very excited about this."

Timing may play a crucial role in the ultimate success of the new homes that are projected to be under construction soon in Oak Ridge, Hardy said.

Developers are doing what he called the "horizontal" work for their projects. They're putting in streets, sidewalks and utilities.

By the time their new homes come on line, the national economy may be on the rebound.
"When the market strengthens, we can be ready," he said.

Bob Fowler, News Sentinel Anderson County editor, may be reached at 865-481-3625.