CALUMET CITY | In spite of a national slump in the housing market, a developer plans to break ground on a model home in Calumet City next month and develop 17 lots in the near future.

The Calumet City Council recently approved an agreement with Davis Development Corp.

The company purchased 17 lots on Sibley Boulevard from the city for $85,000 as part of the Cook County Tax Reactivation Program, Davis Development's owner John Davis said.

"Basically, it's vacant property that's tax delinquent," he said. "The county goes in and purchased the property for the municipality, and the municipality finds developers willing to invest time and money and expertise to build on these lots."

Hopefully, the development will generate property tax revenue for the city, he said.

Although the cost of the land is subsidized, it can be risky for the developer with the state of the housing market and other variables, Davis said. The company has 90 days to conduct due diligence, and environmental and soil testing, he said.

The lots are on the north and south sides of Sibley Boulevard between Mackinaw Avenue and the abandoned railroad tracks near Johnson Avenue, Davis said.

Mayor Michelle Markiewicz Qualkinbush said Davis Development will offer a different type of housing than the slab houses and bungalows in town.

"I'm excited he still wants to proceed (despite the housing market)," she said. "It makes me feel the housing market is starting to level out from the nationwide housing crisis. We are looking forward to that development."

Davis Development plans to break ground on a model home in October and hopes to have the home ready for walk-throughs in March, Davis said. The homes will be priced from the mid-$180,000s to $200,000 and will range from 1,750 square feet to 2,100 square feet, Davis said. The company plans to build five models, he said.

"It's a viable market for an affordable house," Davis said. "Calumet City is well located. It's easy to get to different places."

Davis, 62, who is a Thornton Fractional North High School alum who lives in Flossmoor, said it means a lot to him to be able to build in the community in which he grew up.

"I was born and raised in Calumet City, so the thought of doing something that is going to improve the city is appealing to me," he said. "Hopefully, we'll be able to do more beyond this. That's what our intention is also continue to work with Calumet City in a long-term relationship."