Within 10 years, the developers of The Estates at Cheyenne Pass hope to create a community of more than 900 affordable, high-quality homes on over 200 acres south of Box Elder.

Currently, 20 lots are available in the development along Radar Hill Road, and developer Kent Hagg said about 100 should be available by the beginning of next year. Houses will be priced in the $117,000 to $200,000 range, Hagg said during a Friday afternoon ribbon cutting at the site.

Hagg, his brothers Brian and Rex, and Stan Scheurer are partners in the development. Hagg said he doesn't like to use the term "affordable housing" because of the stigma that label tends to bring of lower-quality building.

Cheyenne Pass homes are anything but low quality, Hagg said.

The houses feature engineer-certified foundations, 2-by-6 framing, hard-board, maintenance-free siding and shingles rated to withstand 110 mph gusts.

"The materials used in these homes are many of them used in million-dollar homes," Hagg said. "Just because some of the homes are going to be 'affordable' doesn't mean they're going to be cheaply built."

However, all of the lots and many of the homes will be eligible for South Dakota Housing Authority funding and for Rural Development funding, which cannot be used within Rapid City's city limits. Box Elder does qualify for Rural Development funding because of its size.

"The Rural Development loan packages are just phenomenal," Hagg said. "The homes are going to be in a price range where people can afford them, and in fact, probably have a payment that's lower than their current rent payment."

Unlike an affordable housing development, Cheyenne Pass will not offer row upon row of "cookie-cutter" homes. Hagg said the subdivision's covenants only allow every seventh home to be of the same model or design.

Hagg believes there is an increasing market demand for quality housing that people can afford - a demand likely to increase because of the growth taking place along Interstate 90 with Cabela's and Rushmore Crossing.

"It's very centrally located between the new retail areas and Ellsworth Air Force Base, which is also experiencing significant growth," Hagg said.

Box Elder officials are excited about the development's potential for Box Elder and the area.

Kathleen Sheets, director of the Box Elder Economic Development Corporation, said she appreciates developers who think progressively about people who aren't always represented across the board. She said creating Cheyenne Pass has been a collaborative effort to bring affordable housing to the community.

"This will affect Box Elder very positively by allowing us to more easily establish retail, commerce and improve the quality of life for our community," she said.

Box Elder Mayor Al Dial said he believes the development, with its focus on quality building that is still affordable, will set standards for development in the future.

"They're great to work with, and that's something we try real hard to do," Dial said. "This is a great thing for us, and a positive note. I like to see the diversity that's happening in this subdivision in the range of housing."

The development will be a high quality, affordable community that includes strong covenants, a community park and ponds and a playground and sheltered picnic areas. Because the goal is to create a family-friendly and retiree-friendly community, sex-offender background checks will be performed before homes are sold.

"We have done things that are going to make that neighborhood feel upscale," Hagg said. "We're probably the only subdivision that I'm aware of in the state that requires an engineer's certification of every foundation. In any homeowner's situation, the main thing is the protection and growth of their equity."

For more information about Cheyenne Pass, call Kent Hagg at 391-2205 or Stan Scheurer at 390-6571.

Contact Scott Aust at 394-8415 or scott.aust@rapidcityjournal.com