Ameya Preserve: Part V

The Race to House the Super-Rich


By David Nolt, 12-24-07

 
 

Editor's Note: This is the final installment of a series about the proposed Ameya Preserve development near Livingston, Montana.



 
  The gate to Bullis Creek and the Ameya Preserve. Photo by David Nolt.
There are many unique aspects to the proposed Ameya Preserve development south of Livingston, but in one key respect the project is almost commonplace in the New West: it's aimed at the ultra-rich, those who can afford to spend many millions of dollars on a second or third or fourth home.

There is a lot of competition in this niche. In Montana alone, there is, famously, the Yellowstone Club, which boasts a private ski resort and what may be the world's most expensive single-family home (and which was, not incidentally, made possible by timber trader Tom Blixseth's shrewd swap to acquire what was once public land). There is neighboring Spanish Peaks, where the price of entry is a bit lower. Just up the road is the new Moonlight Basin ski resort and accompanying real estate development (the owners there recently announced they were seeking partners to speed the build). There is the Rock Creek Cattle Company near Deer Lodge, where the amenities include a working cattle ranch (and whose owner, Fidelity National Financial chairman William Foley, counts Whitefish Mountain Resort and several restaurant chains among his Montana holdings).

There is Saddlehorn, near Bigfork, which is also touting its environmental friendliness. There is the Wilderness Club, near Eureka, the Iron Horse Ranch, outside of Whitefish, and the venerable Stock Farm, the Charles Schwab-driven development in the Bitterroot Valley.

Indeed, the biggest challenge for the Ameya Preserve may have less to do with local opposition and state land politics than with basic business issues. With the real estate market in a slump and so many developments aimed at the same high-end demographic, will Ameya sell?

On one level, the Ameya Preserve and its developer, Wade Dokken, are taking a risk by not including some standard luxury second-home amenities, especially a golf course. Ameya also lacks any kind of waterfront; man-made ponds are part of the plan, but there are no lakes or on-site river access. Nor is there a ski resort nearby; the closest one, Bridger Bowl, is almost an hour away.

What the developers hope will set Ameya apart are its eco-friendliness and its emphasis on cultural amenities. Call it the thinking-man's second-home community, or, if you're more cynical, the liberal elite's luxury retreat. “It’s not an escape hatch for the pampered and privileged,” an Ameya brochure insists. “It’s a gathering place for the curious and accomplished.” A recent Wall St. Journal story referred to a competition to equip developments with "PC Amenities," and Ameya Preserve topped the charts.

 
  A rare green view of the meadows at Ameya Preserve. The area near where this picture was taken will include 35,000 square feet of community buildings. Photo courtesy of Ameya Preserve.
The cultural features will include the restaurant and cooking classes, courtesy of Alice Waters, the reknowned Berkeley-based chef. There will be the dinosaur digs with Jack Horner. Readings, lectures, and what Dokken says will be the largest observatory telescope in the state. Ameya has done an impressive job of recruiting interesting people to be a part of its programs, even if some of them are less than fully committed (former Metropolitan Museum of Art Director Thomas Hoving, who is featured in Ameya literature, told NewWest.Net he was only considering it).

Certainly, the demographic forces driving the high-end home market in the Rockies are very powerful. Wealthy baby-boomers are retiring, or semi-retiring, and looking for less-hectic lifestyles. Technology and the Internet have made work less location-dependent than ever before, bringing a wave of upscale, educated telecommuters to the region. And macro-economic policies over the last two decades have helped create an ever-larger group of people with very large fortunes.

Nowhere have these forces been more powerful than around Bozeman, once a sleepy ski/cow-town. According to the Bozeman Planning Department, the city was approximately 6,210 acres (9.7 square miles) in size in 1990. By the end of 2007, it will be approximately 11,540 acres (18 square miles). That's an 86 percent increase in 17 years.

The resort community of Big Sky is 50 miles south of Bozeman near the west entrance to Yellowstone National Park, and it is responsible for a fair share of the growth around Bozeman. Big Sky is home to Big Sky Ski Resort, the Moonlight Basin and a whole lot of luxury homes including the Spanish Peaks and Yellowstone Club developments.





The median price of a single family home in Big Sky soared from $452,750 in 2004 to $1,625,000 in 2006, according to the Gallatin Association of Realtors, and since transaction prices don't have to be reported in Montana those numbers may not even include some of the most expensive sales. (The median price has dropped to a mere $1,411,000 in 2007.) If Big Sky is emblematic of one aspect of the new Montana, the Yellowstone Club is emblematic of the new Big Sky. “The world’s only private ski and golf community” includes 13,400 acres replete with a $155 million home, a Tom Weiskopf-designed golf course and a private ski resort plush with open bowls of “Private Powder™.” Membership in this club is invitation only, with a $250,000 membership fee and homesites starting at over $2 million.

The Yellowstone Club makes few environmental claims – in fact, it was fined by the state and the EPA for pollution violations during its construction – but it does incorporate conservation easements, a model developers across the state are beginning to utilize more. Property owners can give up certain rights of ownership by protecting portions of their land as open space. Owners receive income tax deductions in return, although the IRS is increasing its scrutiny on easements because of some serious abuses.

Conservation easements like those at the clubs in Big Sky not only preserve valuable land and water, but they also give developers a valuable selling tool. Properties with access to open space easements are hot commodities in the housing market, particularly in places like Montana where potential buyers come to enjoy big skies.

The new Saddlehorn development on Flathead Lake near Bigfork, Montana is also citing environmental friendliness as a key selling point. The developers quote World Green Building Council Past President Kath Williams in their promotional materials, stating that “Saddlehorn has made the strongest commitment to sustainability for a rural community that I have ever seen.” Phase One at Saddlehorn includes about 70 homesites ranging in price from $237,000 to $844,000.

 
  Another high-end home up goes up in the Spanish Peaks subdivision near Big Sky. The median price of a single family home in Big Sky soared from $452,750 in 2004 to $1,625,000 in 2006. Photo by David Nolt.
The looming question is, are there buyers for all these developments? So far, the real estate bust appears to have hurt the very high end of the market less than other segments, but there are certainly signs of weakness. Figures on actual lots sold at these developments can be hard to come by, with county records often showing only inscrutable transactions among corporate entities.

And will environmental-friendliness turn out to be an effective selling tool? Or will it fall by the wayside in favor of more conventional luxury amenities?

Paradoxically, it's hard not to get the sense that some of the opposition to the Ameya Preserve is because of, not in spite of, all the environmental claims. Most Montanans are instinctively sympathetic to people's right to make money from their property, and while they may not like seeing so much land being sold off to the wealthy, they accept it. But when a developer insists that he's not a developer at all, and that he's developing the land in order to conserve it, people begin to wonder.

Is it realistic to say that building up to 300 luxury homes on an arid and infamously windy greenfield site rich in wildlife can result in environmental balance and also pencil out economically? Wade Dokken is betting a lot of money, time and energy that the answer is yes.

“It’s totally realistic,” Dokken emphatically argues. “One-hundred percent of the evidence supports that.”

But like other grandiose statements made by Dokken, “100 percent” will be a tough claim to prove.

Editor's Note: This is the final installment of a series about the proposed Ameya Preserve development near Livingston, Montana.



Like this story? Get more! Sign up for our free newsletters.

NEW WEST FEATURES                                                                 More>>

Advertisement

Comments

By Ceng1, 12-24-07
By steve kelly, 12-24-07
By Jason Brininstool, 12-24-07
By Dave Skinner, 12-24-07
By Craig Moore, 12-24-07
By bearbait, 12-25-07
By jburnham, 12-25-07
By Jason Brininstool, 12-25-07
By Larry Kralj, Environmental Rangers!, 12-25-07
By Dave Skinner, 12-25-07
By Larry Kralj, Environmental Rangers!, 12-25-07
By Not Indigenous, 12-26-07
By Jason Brininstool, 12-26-07
By Jason Brininstool, 12-26-07
By Jason Brininstool, 12-26-07
By Phyllis Becker, 12-26-07
By Sharon Webb, 12-26-07
By Marion, 12-26-07
By Larry Kralj, Environmental Rangers!, 12-26-07
By Dave Skinner, 12-26-07
By Craig Kenworthy, 12-27-07
By jwscotch, 12-28-07
By Dave Gardner, 12-28-07
By Sharon Webb, 12-28-07
By Ceng1, 12-28-07
By Ted Leight, 12-28-07
By Jan, 12-28-07
By Timothy Border, 1-11-08
By Colette, 8-27-09

Your Comment

Comment policy:

NewWest.Net encourages robust and lively, but civil participation from our readers. By posting here, you agree to the NewWest.Net terms of service. You agree to keep your comments on topic, respectful and free of gratuitous profanity. Contributions that engage in personal attacks, racism, sexism, bigotry, hatred or are otherwise patently offensive will be subject to removal.

Other than using a filter that scans for comment spam, we do not moderate contributions before they are posted and we do not review every thread, so we ask that you help us in keeping the discussions civil and appropriate. Please email info@newwest.net to notify us of comments that may violate these guidelines. Thanks for your help and cooperation. Click here for some tips on how to best interact on NewWest.Net.

You must be a registered user to submit comments, if you are not, register here for free.


Name

Email

Remember my name and email address.

Notify me of follow-up comments.

Advertisement
 

Marketplace