It’s time once again to look back at the top economic stories of the past year. Leading the way was the severe housing market correction. From January through September, new single-family residential construction in Cochise County was down 49.5 percent, compared to the same period of 2006. From January through November, single-family residential home sales declined by 9.2 percent. Although the median home price was up 1.2 percent to $192,300, the average price per square foot was down 3.7 percent to $115.13.

Although residential construction slowed, Sierra Vista saw another extraordinary year of commercial construction. From January through November, permits were issued for projects totaling $38.9 million. Although this was down 3.6 percent from the same period of 2006, it was 45 percent higher than 2003, 2004, and 2005 combined. The boom in commercial construction in Sierra Vista over the past 2 years is evident in new hotels, restaurants, large retailers, office complexes, and other businesses throughout the city.

Another top economic story was Cochise County’s low unemployment rate, which hit a record-low of 3.6 percent in September. From January through November, the county’s unemployment rate averaged 4.2 percent, compared to 4.5 percent during the same period of 2006. The county also saw extraordinary growth in accommodation receipts, which include hotel, motel, and other temporary lodging stays. In the first 9 months of the year, countywide receipts were up 26.4 percent after inflation.

In January, the Benson City Council approved a zoning change to allow the 300-acre, 850-home San Pedro Partners development to move forward.

In February, the Willcox City Council approved $1.26 million for the construction of a new justice complex; and Great Lakes Airlines ended 2 years of air service to Sierra Vista upon expiration of a federal grant.

Also in February, Algonquin Water Resources Inc. completed its purchase of seven water companies in Cochise County. The companies were plagued with service delivery problems for several years prior to the sale.

February also saw Trauma Telemedicine equipment installed at the Copper Queen Community Hospital in Bisbee, providing a real-time connection to trauma doctors at the University Medical Center in Tucson. Later in the year, the equipment was added to the Sierra Vista Regional Health Center and the Benson Hospital, which also saw a major expansion and upgrades to its emergency room in 2007.

In March, the Board of Supervisors approved rezoning for the 300-acre, 800-home Shadow Mountain development in Sunsites. Also, Freeport-McMoRan purchased Phelps Dodge. The firm is currently exploring the possibility of resuming mining operations in Bisbee. Also in March, National Geographic released the Arizona-Sonora Region Geotourism MapGuide. The bi-national MapGuide includes several sites in Cochise County.

In April, Pulte Homes announced it was pulling the plug on its Anthem project in Benson, which would have added 13,750 homes to the city.

In May, El Rey Foods announced plans to expand, creating an additional 400 jobs in Elfrida. Also, Wal-Mart Stores Inc. purchased the 54-acre lot that previously was home to the Sierra Vista Riding Club, with plans for a new Wal-Mart Supercenter, and a Sam’s Club at the present site of Wal-Mart

In June, the U.S. Fish and Wildlife Service issued a new biological opinion regarding Fort Huachuca’s impact on water use in the Sierra Vista sub-watershed. The opinion reduced the fort’s share of responsibility for mitigating the water deficit. In August, the Center for Biological Diversity and the Maricopa Audubon Society filed intent to sue Fort Huachuca as a result.

Also in June, Bisbee was awarded a $2.2 million grant from the Arizona Department of Transportation to fund the city’s Arizona Street Project. June also saw Gov. Napolitano sign into law a measure that creates the Upper San Pedro water district, which is still subject to voter approval. The focus of the district is to bring the water deficit into balance through conservation and other efforts. Also in June, the Better Business Bureau opened a branch office in Sierra Vista and the Arizona Department of Environmental Quality awarded a $60,000 grant to Cochise County to fund a recycling study.

In July, the new, 10,000 square-foot VA Outpatient Clinic opened in Sierra Vista. Previously, the clinic was located in a 2,600 square-foot area on Fort Huachuca.

Also in July, the Bisbee Planning and Zoning Commission heard a proposal regarding a 2,000-home development on 1,000 acres near Bisbee, including some commercial construction, a resort and golf course, and medical facilities.

It was announced in July that the state would provide $3 million to purchase two lots, totaling 1,400 acres, abutting Fort Huachuca to set up conservation easements, restricting growth in the area.

In August, the Board of Supervisors approved a tentative plat for a 285-acre, 95-home conservation subdivision in Palominas. Also, construction was completed on the 65-unit, Sonora Vista Apartments in Douglas, an affordable housing project.

Also in August, Sierra Vista broke ground on a new fire station, expected to be operational by the summer of 2008; and Bisbee launched its first water reuse project, to send effluent from the wastewater treatment plant to the Turquoise Valley Golf Course for irrigation use. August also saw the Board of Supervisors approve rezoning for the 260-acre, 600-home Saddleview Estates development, located near Douglas.

In September, the new, 12-station Douglas Dialysis Center was completed. Also, SouthWestern Power Group II announced it would abandon plans for a controversial coal-gasification power plant in Bowie and revert to its original plans for a natural gas facility at the site.

September also saw former Benson Mayor George Scott create the Southeast Arizona Economic Development Group as part of an initiative to bring new businesses to Benson and Cochise County. In December, the Benson City Council voted to create its own economic development sub-committee, following a request to support the initiative launched by Scott.

Also in September, it was revealed that an accounting error by the Sierra Vista School District resulted in a $4.3 million revenue shortfall in 2006. In response, the district more than doubled its primary property tax rate for 2007.

September also saw Sundt Construction, Inc. win a $28.5 million contract to build 90 housing units on Fort Huachuca. Also, the Benson City Council approved the final plat for the 375-home Canyons III at Whetstone Ranch; and the Sierra Vista City Council approved Ventana De Flores, a 335-acre, 1,500-home residential development. Also in September, construction began on the new 50-room Best Western Hotel in Douglas.

In October, construction began on the new 100-room Holiday Inn Express in Willcox; and the Center for Academic Success broke ground on a new $7 million, 9-acre campus in Sierra Vista. October also saw Bisbee’s Copper Queen Community Hospital open its new 2,900 square-foot Palominas/Hereford rural health clinic.

In November, voters approved a $14.8 million bond for remodeling and facilities improvements and a budget override for the Benson School District. Also, voters in the Bisbee Unified School District approved a budget override.

In December, groundbreaking was held for the $750,000 Sierra Vista Kiwanis skate/BMX park to be located in Veterans’ Memorial Park. Also in December, the Boys & Girls Club of Sierra Vista announced it would not build its new 29,000 square-foot facility at the Village Meadows Elementary School site, following protests from area residents. Also, Sonic Drive-In in Douglas announced it would be closing, following more than 30 years of service to the Douglas community.

December also saw the Sierra Vista City Council approve the 6.5 acre, 80-unit Rancho Sendero townhouse development to be located at Tacoma Street, near Seventh. Also in December, the Cochise County Planning and Zoning Commission voted to recommend denial of the Easter Mountain LLC rezoning request for 350 homes on about 560 acres near Benson, citing water, interference with public access to the Whetstone Mountains, and fire concerns due to the close proximity to the Coronado National Forest.

There were innumerable major economic stories in Cochise County in 2007; unfortunately, space limitations and an effort to include all areas of Cochise County preclude capturing all of them in a single article.

If you have any questions on the economy, please contact the CER at (520) 515-5486 or email the CER at cer@cochise.edu. Be sure to check out the CER’s website at www.cochise.edu/cer.