SPEARFISH, S.D. – The Spearfish City Council has approved a reduction in the financial assurance required from the developer of the Sky Ridge workforce housing project, citing the company’s progress and compliance with its development agreement.
On Monday, council members unanimously voted to lower the financial assurance requirement for Hills View Homes from $600,000 to $450,000. Financial assurances, such as performance bonds or letters of credit, are used to guarantee a developer completes its contractual obligations.
Hills View Homes took over development of the Exit 17 workforce housing project in 2025 and has since made significant progress. City officials noted that 30 new homes were completed during the company’s first year with the project, while 56 building permits were issued within the Sky Ridge subdivision.
Spearfish City Administrator Peter Wysocki told council members that Hills View Homes has remained in full compliance with its agreement and has consistently purchased lots from the city as required under the development contract.
Under the agreement, the developer purchases lots from the city for $21,800 each and builds homes designed to provide more affordable homeownership opportunities. The project includes three tiers of housing with price limits tied to South Dakota Housing’s first-time homebuyer program. Current maximum sale prices range from approximately $297,000 for Tier 1 homes to $410,000 for Tier 3 homes.
City officials said the reduction reflects the developer’s continued performance and the substantial progress already made toward meeting the workforce housing development goals.
