Casper is going after state money to get the ground ready for one of the city's bigger workforce housing projects.
On Tuesday, Oct. 20, the Casper City Council agreed to apply for a $15,845,349 grant to pay for public infrastructure on a proposed housing development near the intersection of Wyoming Boulevard and Poplar Street, Oil City News reported.
The application goes to the Wyoming Business Council's Building Resilient Communities program.
What the money would build
The grant would cover water lines, sanitary sewer, storm sewer and street improvements needed to prepare the 20-acre infill site for construction, according to Oil City News.
Community Development Director Liz Becher told the council the work would support a planned mixed-use neighborhood with more than 158 housing units. The mix includes single-family homes, twin homes, fourplexes and tiny homes.
Becher said housing availability and affordability remain major economic development hurdles, both for Casper and for Wyoming as a whole, Oil City News reported.
Who pays for what
The city is partnering with private developer Harmony Hills Development. The state program requires a 25% local match, which comes to $3,961,337.25. Oil City News reported that the city and the developer will split that match through cash and in-kind contributions.
The city's share is capped at $198,066.86, or 1.26% of total eligible project costs. That money would come from Casper's water fund balance, sewer fund balance and its Streets 1% tax revenue.
Harmony Hills Development would cover 23.11% of project costs, estimated at $3,627,958.85. The developer would also dedicate about 8.175 acres of land for right-of-way, valued at $135,311.54.
One detail stands out for anyone who has watched a public works budget creep: under the development agreement, the developer is solely responsible for 100% of any cost overruns above the grant award.
A follow-up to the hearing
Hello Contractor News previewed this hearing earlier. The council's vote on Oct. 20 means the application now moves to the state. The grant still has to be approved by state officials before any dirt moves. Oil City News did not report a timeline for a state decision.
A familiar problem in a small market
Infrastructure is often the line item that kills a workforce housing deal in a smaller Western city. Water, sewer and streets have to be in before the first foundation is poured, and those costs land on every lot whether the house is a fourplex or a tiny home. When a city can get the state to carry that load, the math on entry-level homes gets a lot easier.
Infill sites like this one also tend to be easier to serve than land on the edge of town, because they can tie into existing mains and roads. That said, 20 acres of new streets and utilities is still a sizable civil job.
The mix of product types matters too. Single-family homes, twin homes, fourplexes and tiny homes call for different crews and different schedules. A project with all four could keep framers, plumbers, electricians and finish carpenters busy across several phases rather than in one short burst.
What comes next
If the state approves the grant, the next steps would include design and bidding for the infrastructure work, followed by lot development and home construction by Harmony Hills Development. Contractors interested in the civil work should keep an eye on Casper's bid postings, since a city-administered state grant usually means a public bid.
Builders and trades interested in the vertical construction would likely work through the developer.
Why it matters for contractors
This is a real project with real numbers behind it: a $15.8 million infrastructure ask, a 20-acre site and more than 158 planned homes in a city where housing is short. For Casper-area excavation, utility and paving contractors, a grant award would mean a public works job worth millions. For home builders and trades, it would mean a pipeline of lots and a range of home types over several years.
The cost-overrun clause is worth noting for anyone bidding later. With the developer on the hook for anything above the grant, expect close attention to change orders and budgets on the civil side.
Watch for the Wyoming Business Council's decision. Until then, this remains a proposal, not a sure thing.