Hammer Flat Subdivision Siting Considerations – An Brief Economic Overview

The proposed Hammer Flat subdivision provides something of a rarity in the economics of real estate, a readily apparent conclusion. In particular, siting a subdivision on Hammer Flats is a solution that yields 40 – 100 fewer jobs, and $1,500,000 - $3,500,000 less in aggregate demand per year for Boise City and Ada County, than would be the case if the subdivision were to be located anywhere else.

Typically, there is very little difference, economically, between one or another locations of prospective subdivisions. For instance, the relative difference between siting a 100 unit subdivision on, say, the west side of Five Mile near Victory, versus the siting of a very similar size and type of subdivision on the East side of Five Mile Near Victory is very small.

However, the difference between siting the proposed Hammer Flats subdivision just about anywhere else in the county, versus its currently intended location, is economically large. This is so because, unlike most other potential subdivision sites, the best alternative economic use for Hammer Flats is unique, has reasonably large economic potential, and the potential is reasonably certain.

The factor that makes Hammer Flat unique is its potential as a wild life refuge. In particular, Hammer Flats is a site that consistently supports a large number of big game and other wildlife. It is also a site where it is relatively easy to view the wildlife. It is a site that is readily accessible to a large number of people. And finally, wildlife watching is an activity for which there demand that is well documents at a number of wildlife refuges across the nation. The combination of these factors means that, given a modicum of development and promotion, Hammer Flats could stimulate job creation and income levels on par with other nationally known wildlife refuges.

A few comparative statistics. At the National Elk Refuge in Jackson, Wyoming, during a 3 1/2 month season, 24,000 persons (An average of 228 persons per day.) pay about $18 for a hayride through the elk herd. That amounts to $432,000 for hayrides during a very short season, in the midst of some of the harshest winter weather on the planet, near a town that is very difficult to get to in winter. On a full year basis, the National Elk Refuge sees over 65,000 visitor days. These visitors sustain 41 jobs, and pump about $1.5 million into the local economy.

As another example, the Charles M. Russell National Wildlife Refuge in Montana, receives over 107,000 visitor days each year. The tourism attributable to this refuge sustains 102 jobs and pumps more than $3.4 million into the local economy each year.

Given the reliable presence of animal herds for viewing on Hammer Flats, with relatively good viewing weather, a large local population base, and excellent access to regional and national transportation systems to facilitate non-resident visitors, it seems reasonable to think that a wildlife refuge on Hammer Flats would be able sustain jobs and generate income for the local economy at levels comparable to the other wildlife refuges detailed above.

A summary sheet detailing the economic benefits associated with 17 wildlife refuges located in various parts of the United States is available at the following link. Banking on Nature: The Economic Benefits to Local Communities of National Wildlife Refuge Visitation.

It has been known for some time that Hammer Flats provides valuable winter range for deer and elk. The State of Idaho has been actively pursuing the acquisition of land in the vicinity for many years. And, the site has been attracting visitors for some time as well. From November through February, it is common for as many as 30 – 50 people per day to park on the roads surrounding the plateau area to watch and photograph the deer, elk, eagles, etc. The fact that this many people are learning about this resource by word of mouth and making the most of the viewing opportunity serves to emphasize the inherent validity of the wildlife refuge concept.

By comparison, constructing a subdivision on Hammer Flats will create jobs during the construction phase of the project. The subdivision will also provide housing for Boise’s growing population base. However, if the same subdivision were to be constructed anywhere else in the valley, the number of additional jobs and homes created would be exactly the same. The difference between the two situations is that the local economy will have the potential of 40 – 100 additional jobs, and $1,500,000 to $3,500,000 in additional income, if the proposed subdivision is located someplace other than Hammer Flats..

As mentioned in the first paragraph, the economic conclusion is straightforward. If the county allows a subdivision to be built on Hammer Flats, it will preclude the possibility of the site becoming a job and income generating wildlife refuge. However, if the developer’s efforts can be directed toward other locations in the area, a Hammer Flats wildlife refuge has the potential to stimulate the creation of 40 – 100 additional jobs, and $1,500,000 to $3,500,000 in additional income for the local economy.