Low Cost Ownership @ the Village on Sewanee Creek

The jewel of the Village has always been what we called phase II.  Pristine, forested, rolling land, with the most dramatic views, cascading creeks and water falls.  It’s all there, untouched and waiting for this moment and the right people to build a community of caring, sharing and prepared people.

In 2006, when we got started, I expected to quickly sell out on Phase I, then move to the best part.  Then the sub-prime mortgage crisis hit in 2007, followed by a total economic melt-down, led by Real Estate in 2008.  It’s been slow going, but our unique approach to community building creates value that goes far beyond the land.  So, we survived in slow growth mode.  Slow is good when you are striving to build a community with solid roots.  Sort of like nurturing a Japanese bonsai tree.

Fast forward to 2012.  The forests are 6 years older and the wildlife has cycled through several generations, but phase 2 is otherwise unchanged.  Meanwhile, the cost of building paved roads and other infrastructure required by the government, has sky-rocketed to the point that traditional development of Phase II is not feasible.  And, on Phase I, we have grown a community of self-sufficient folks.  Our gardens are maturing, along with our gardening skills and our bees.  We have weathered seasons of drought and plenty with our rainwater catchment systems; we have experimented with various types of low-cost alternative energy, from wood gasification to Lister Diesel generators, to simple wood stoves, solar ovens and micro-hydro-electric generators.  We have built six lovely homes, some traditional construction, log, SIP, cast concrete and experimented with ultra low cost CONEX shipping container construction at the amphitheater, for storage, for workshops and finally, for guest houses.  The learning from all of this and expertise from highly skilled people who have joined us over the years continues to raise the level of self-sufficiency and preparedness of the Village community.

Cost of ownership in difficult economic times has been the primary obstacle for most people who wanted to join us in living a simple, frugal life.  So, here’s the low-cost alternative:

Land on Phase II is to be owned by an LLC with shareholders. Through a shareholder’s agreement, co-owners allocate personal plots within the community.

This method of ownership has several advantages:

  1. Lower cost per acre (In the $4,000 range)
  2. Lower taxes: Blocks of land over 16 acres can remain in “green belt” status, with close to zero tax rates.
  3. As there is one owner, it is not a “development”, hence no need for Government Planning to interfere.
  4. Lower development costs for roads, and other infrastructure.
  5. Full membership in the established Village on Phase 1 with access to commons, hiking trails, community gardens, and other infrastructure.
  6. Shared cost of self-sufficiency infrastructure (well(s), rainwater catchment, alternative energy systems, etc.)
  7. Enhanced sense of community, but still not a commune.

Purchase size would be from 50 to 100 acres.
So, hypothetically, 50 acres, shared equally in 5 acre lots = 10 owners (could be more owners and lower total cost with smaller lots).  Out of that, each contributes an acre for a highly functional 10-acre commons. This is all usable plateau top land. Cost per household would be in the neighborhood of $20,000 plus the shared legal cost of setting up the LLC.  Add a low cost home, like the guest house from Shipping Containers I built for under $10,000 to, say, a 2-acre piece of Phase II and you could have a great life in a gorgeous, sustainable community for about $18,000.

I know there are a lot of you out there who desperately want to own land in the Village, but simply can’t afford it in this economy. And I can’t afford to sell Phase I land for much less and even cover my sunk development costs.  But I have no development costs in Phase II other than the interest I have been paying on it for six years.

If this sounds interesting, please let me know. We can start doing some serious planning and marketing if there is enough interest.

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