Local bankers and contractors see the planned increase of employees at the U.S. Army Corps of Engineers Engineering Research and Development Center as major boom for the city that could provide a needed economic boost and a potential market for new and existing homes in the city.

Addressing the Vicksburg-Warren Chamber of Commerce Oct. 27, ERDC commander Col. Bryan Green said he would be hiring an additional 800 people during the next five years, telling an assembled group of business and government leaders, bankers and developers and urging them to begin building new homes.

“They’ve got to have homes. They have to have some place to go,” he said.

“I thought it was a great presentation, and I think we have a great opportunity to take Vicksburg to a higher level,” BancorpSouth president Mark Buys said Wednesday. “Obviously, we are down in inventory in new housing. There is a good inventory on the market, but maybe not in the price range these new millennials may be looking for.

“It’s an opportunity out there in the building industry for us to take advantage of, and that would just lead to greater economic development, greater tax base, more things we can do for our community, and I think its great.”

Buys, who is the chamber’s incoming president, believes the area is in the verge of an economic boom the city can respond to from an infrastructure stand point.

“In addition to that, we have continental tire coming in and the economic growth in this part of the state that is already happening,” he said. “I think any financial institution would be firmly supportive of this type of growth without question. The banks would be chomping at the bit to support that kind of growth in the community.”

Robbie Cowart of Richard Cowart Inc. and Paul Campbell of Paul Campbell Development, also agree Green’s news can provide a boost for the area.

“The best thing I heard was he was going to be hiring 800 people over the next three years,” Campbell said. “I think that basically speaks for itself, as far as that’s what we need —jobs in Vicksburg to heighten the demand for new development, and that’s what we’ve been lacking. We need 800 and couple of thousand more, is what we desperately need to spur economic development.”

“It sounded great, bringing that many professional people into Vicksburg, which hasn’t happened in a long time,” Cowart said. “We’ll do the best we can to accommodate the housing for people coming.”

Cowart, however, said he was not sure what type of new housing will be needed to accommodate the new workers.

“It depends on what the breakdown’s going to be, whether it’s single family housing or apartment units,” he said. “I haven’t got my pulse on the vacancy rate in town, but listening to him, it sounds like there will be some need for some more rental property, whether houses or apartments.

Looking at the time frame, (and) what the absorption rate of the property would be, we may keep up with it. Right now I don’t know if there’s enough of us or enough land to be developed.”

And there is the matter of Vicksburg’s and Warren County’s topography, which is highlighted by hills, ravines and hollows.

“The construction isn’t a problem,” said developer George Jabour. “The quality of lots is going to be the biggest problem. There’s not a lot of lots to work with … existing lots.”

“Vicksburg is a challenge as far as the terrain is concerned,” Cowart said. “It does cost a lot of money to get buildable areas and put roads and infrastructure in, much more so than Madison, where there’s 500 acres of pasture that’s pretty much all flat.”

“I does create a problem,” Campbell said. “It’s a lot more expensive to develop hills and hollows than a flat piece of ground, but that’s what we’ve got and that’s what we’ve got to build with, it’s tough to develop, but that’s what we’ve got so we’ve got to deal with it.”

And the cost of preparing that property for homes could cause problems developing the $200,000 to $250,000 starter homes Green said will be needed for many of the new workers.

As one alternative, Jabour said he is looking into locating vacant homes that can be rehabilitated and fit into the price market some of the new comers would be looking for.

“There’s a lot of vacant houses in Vicksburg that can be rehabbed at the right location and be desirable to some of the people,” he said.

“I love to see them come, and I’ve talked to Col. Green a couples of times, he wants to do everything he can to help the community, and I want to do the best I can to help him. But I do see a considerable lack of what we can furnish for the needs of those people coming.”

He added the housing market in Vicksburg has been slow for a long time, but the potential is there to rehab the older homes to attract potential buyers.

“Local banks have worked with the local people very easily,” he said.

Campbell also believes the local banks will work with the builders to provide the funding for new construction.

“If you bring a good project to the bank; they’re in the business of lending money, and if they see there’s a demand and you’ve got a good project, I believe you can get it financed,” he said.

“That was very exciting and encouraging news to hear what was said about the potential housing situation in our community,” said David Blackledge senior vice president at RiverHills Bank.

“There will certainly be a nice increase in our home loans and in construction.

“The banks will do some work with local contractors and builders to get these houses built.”

Buys said Green’s comments have developed some conversation in the business community, adding he believed local officials have given the colonel some information about the local housing market he was unaware of.

“And I think there’s greater interaction that’s taking place both ways. I think great things are going to come from it.”