Town, SHAH Development plan 174-acre housing development for Pulaski

shah development planShah Development plan for 174 acres in Town

 

By WILLIAM PAINE

Patriot Publishing

The Pulaski Town Council voted to allow Town Manager Todd Day to work with Shah Development for the purpose of developing 174 acres in town. This was the first meeting of the Town Council this year and the three newly elected council members were present. Mayor Shannon Collins did not attend, so Vice Mayor Brooks Dawson led the meeting.

The vote came after Town Manager Todd Day announced that on December 17, 2024, the Town of Pulaski was given an unsolicited bid by Shah Development regarding the 174-acre parcel of land owned by the town, which sits just behind LewisGale Hospital – Pulaski between Memorial Drive, Pepper’s Ferry Road and Lee Highway .

The Town of Pulaski acquired 150 acres of undeveloped property in December 2023 for $1.2 million. In May of 2022, the Town acquired 14 acres of property that adjoins the 150 acres, for a total of 174 acres.

Day referenced a study by Virginia Tech made in 2021 that found the New River Valley, and especially the Town of Pulaski, was in need of additional housing to spur economic development.

Day went on to explain the plan put forth by Shah which would see the development of the 174-acre tract. The plan calls for 187 detached single-family dwellings, 102 Townhome units, 18 acres of commercial development and 72 acres of open space for recreation. Day noted that the 72 acres designated as open space was “terrain related.”

It is estimated that the project would occur in six phases over a 6-to-10-year time span.

“We’ve got $1.4 million invested in these two properties and we’re looking for a positive ROI (Return on Investment),” said Day. “We feel that this project is going to be the difference in Pulaski being successful in the future for economic development and will support more family sustaining businesses.”

Day then went on to estimate the revenue generated for the town by this development, noting that the real estate tax rate was 36 cents per $100 of property value.

Day then put forth a scenario where an average home in the development would cost about $220,000 and would have two vehicles worth $40,000 each. This would result in an average of $1,432 per dwelling in revenue for Town of Pulaski.

“I’m trying to be as conservative as I can,” said Day of these estimates.

The development plan consists of 289 homes and Day estimates that when all are built, the Town would receive an additional $413,000 in annual revenues. Building fees for the first year alone would total $152,000 in revenue for the Town.

“In a ten-year payout, this purchase will be paid for,” said Day of the $1.4 million spent on the purchase of these properties. “If you can buy a piece of property and have an ROI direct from the property, I don’t think your constituents could ask for any more than that. So, kudos to the previous council that pulled that trigger on that deal.”

Day added that the development would give Pulaski County approximately $1 million in real estate and personal property taxes under the current tax code.

Town Manager Day added that Shah Development is currently working on contractual documents, which will be presented to the Town, but that the council would have to approve these before they were made official.

“Some may ask, why didn’t we design it and then put it out for bid?” said Day. “In doing that we would have anywhere from $600,000 to $1 million invested in engineering and we would still be responsible for the outcome of a subdivision. To be honest, it’s not too many employees at the local level that do that every day for a living. Having a developer come in and say we’ll build the roads, we’ll build sidewalks, we’ll build the curb and gutter, we’ll build the homes, we’ll sell the lots and the locality can sit back and capitalize at a rate depending on the speed of development. I don’t think you could ask for a better transaction.”

Shah Development has also offered a direct trade for the structure that houses the Pulaski Fire Department’s ladder truck behind the fire department building on Jeferson Avenue if the deal goes through.

“I believe this will 100% grow our economy,” said Day. “We have a lot of vacant buildings. The old saying is ‘Build it they will come’ and we’re building homes for all levels of society including two other projects involving the schools in Town.”

Day asked for the Town Council’s unanimous support in continuing to negotiate with Shah Development to make this project a reality. The council agreed and all present voted to allow Day to continue to work with Shah Development. Councilman Tyler Clontz abstained because of a potential conflict of interest.

At meeting’s end, Vice Mayor Dawson said, “There’s two things I’ve heard the most is that we need more housing, improved housing and we need to support our businesses and we need new businesses. All of those things are addressed with us trying to grow our population by improving our housing stock. This gives opportunity for more business and support of existing business at the same time. As near as I can tell that’s what everybody is looking for in some form.”

Newly elected council member Joel Burchett Sr. said, “One of the main themes that I’ve heard from my constituents is that we need more income for the town. We need more affordable housing. We own that land and we’re not getting any income off of that land now and to me this looks like a great opportunity for the Town. I give it my full support.”

1 10 Proposed single family street rendering

Proposed single family street rendering for Shah Development project

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