Called the McCormick Urban Village, the subarea, which includes the existing McCormick Woods neighborhood, envisions a total of 4,100 housing units, open space, commercial and office use as well as a 60-acre site that was sold to the school district.

The development will be done in several phases. The total buildup of the master-planned community will depend on the market, and it may take about 10 years, according to Doug Skrobut, president of McCormick Land Co. The county approved earlier this year a preliminary plat for 346 acres that will include 471 homes. The first phase of this new subdivision is being developed by Quadrant Homes, which will build close to 300 homes. Quadrant officials could not be reached for details, but Skrobut said a good portion of the site development has been complete, and construction could start as early as September.

Bellevue-based Quadrant Homes, which is owned by Weyerhauser, is the state’s largest single-family homebuilder, is one of three regional builders who are planning new communities in McCormick. D.R. Horton, a nationwide builder traded on the NYSE, plans a 51-home neighborhood called Rutherford, which will be followed by 72-home Strathmore. Rutherford, which is close to starting vertical construction, will have homes 2,500 square foot to 3,200 square foot in size, with high-end finishes and priced in the $400,000 to $500,000 range, according to Bill Salvesen, regional sales manager for the Kirkland-based developer. Strathmore, which will start construction next year, will include smaller homes.

“We’ve got a number of people, including real estate agents, inquiring,” he said. “We’re seeing a lot of interest.”

Rick LaBow, with the Silverdale office of Kirkland-based Chaffey Homes, said their plans are for a 32-lot gated community. He said Chaffey, a well-known regional builder, has been building in Kitsap County for 40 years, and builds about 20 to 40 homes per year in this market. The new community is geared toward empty-nesters, and many of the buyers will be moving over from the existing McCormick Woods development.

The project is in the design phase and will go out for bid as soon as specs are developed, with construction planned to start by early next year.

“We look at ourselves as somewhat of a small builder,” said LaBow when asked about discussions that only big builders are developing lots in the area. “We’ve been here in good markets and down markets, and I hope to be here for another 40 year and continue to do what we do.”

The McCormick master-planned community is attractive to developers not only due to its beautiful setting and proximity to the golf course, but also because it has infrastructure and site approvals in place. Although bigger developers have previously built in Kitsap, their interest had waned when the market became soft.

Art Castle, executive vice president with the Kitsap Home Builders Association, said there had been a market shift when the regional builders lost interest in the area during a down market, and the trend had moved toward spec homes. Now that the market is good and they are buying big subdivisions, the dynamics will change once again.

“The local builders will thrive when they find their own niche that doesn’t compete with the big builders,” he said. “The big folks will only build one type of product… Quadrant builds mostly entry level homes; not many small builders do.”

Jeff Davison of Port-Orchard based Yee Construction Corp. said it’s a bit early to say what the long-term impact on the smaller builder would be. He said he used to be able to buy three to four lots in McCormick Woods because there was inventory available, but now a builder needs to buy 30 to 40 lots at a time.

“We’ll be forced to go outside like everyone else,” said Davison, who actually lives in McCormick Woods.

Skrobut said the way new lots are developed now is a matter of economics, and they need to be able to sell groups of lots at a time. “You really need a big builder to come in and schedule a bunch of lots,” he said. “The business model requires (that).”

Davison said while he and other local builders could not compete with companies like Quadrant based on square-foot pricing, he doesn’t see the new trend “putting people out of business.”

“The small builders like us, we have to make a niche market. We have to be a little bit unique,” he said. “They (regional builders) have to rely on speed and repetitiveness; I have to offer service and unique product.” He said people who like to live in neighborhoods with personalities and own homes with individuality are a different niche from those looking for the lowest square foot pricing.

Brad Reid of Port Orchard-based B. Reid Construction agrees that while it’s harder to find land and they have to look farther for it, the company’s style and niche will allow it to remain competitive. “We’ve always tried to do something just a little bit different. Each development dictates a different style,” he said. “There is always opportunity; you just have to be willing to look for it.”.