Mount Rushmore
October 7, 2020

Spearfish breaks ground on Sky Ridge, a workforce housing development

SPEARFISH, SD (September 30, 2020) – Sky Ridge, a workforce housing development, is officially under construction. The City of Spearfish hosted a groundbreaking ceremony today with various local officials, dignitaries, and community stakeholders for Sky Ridge, which is located south of Colorado Boulevard and west of U.S. Highway 85 in the Exit 17 area off of Interstate 90.

“We are excited to be here today to begin construction on this project and bring the dream of home ownership one step closer for 150 families,” Mayor Dana Boke said, explaining that developing more affordable housing has long been a priority for the City. 

A 2013 housing study showcased the need for more affordable housing options in Spearfish and recognized that the City would have to take an active role in developing workforce housing. In 2019, the groundwork was laid, and property purchased, to make that priority a reality. Since then, the Mayor and City Council, in collaboration with the private industry, have worked to establish a plan that allows a public-private partnership between the City and developer, Dream Design International, Inc., to improve the supply of affordable housing in Spearfish. 

Sky Ridge will feature 150 lots, developed in phases over five years, and no homes will be sold at a price point that exceeds the South Dakota Housing Development Authority’s First-Time Homebuyer Program, which is $275,000. The current contract requires 80 percent (or 120) of the homes to be sold at or below $225,000. The square-footage of the home designs varies from 800-1,700 square feet, and Dream Design International, Inc., is responsible for constructing the homes.

“We are thrilled to be part of this project,” Hani Shafai, president of Dream Design International, Inc., said. “Sky Ridge is one more place where we can live out our desire to be a helping hand in community growth, and we look forward to constructing a beautiful neighborhood on this site.”

The timeline for the buildout of homes makes 30 lots available for construction each August, beginning in 2021, with the first houses in the development ready for occupancy in Fall 2021. The City is responsible for building the public infrastructure at Sky Ridge.

While homes are under construction, there are income qualifications for potential buyers: Category 1 homes (those in the $175,000 price range), are restricted to buyers in the 12 percent federal income tax bracket, and Category 2 and 3 homes (those in $225,000 price range), are restricted to buyers in the 22 percent federal income tax bracket. Once a certificate of occupancy is issued, the home becomes available to all buyers. Interested homebuyers can get on the waitlist at For more information, contact Dream Design International at (605) 348-0538 or This email address is being protected from spambots. You need JavaScript enabled to view it.

Also included in Sky Ridge’s design is space for a possible sports complex adjacent to the residential subdivision that, if constructed, could feature seven regulation soccer fields and four regulation softball fields.

“Sky Ridge will be an incredible addition to Spearfish in so many ways,” Kory Menken, executive director of Spearfish Economic Development Corporation, said. “Workforce housing is a major need almost everywhere, and I applaud the City of Spearfish and its partners for being proactive, leading the conversation, and making Sky Ridge a reality.”