With the Cochise County Planning Commission members now giving their approval, Tucson-based Diamond Ventures only needs the support of the county's Board of Supervisors to begin work on Smith Ranch, a proposed 1,983-acre master planned community near Benson.

The company will be asking for that at the next meeting of the board on April 5. If the answer is yes, the Diamond Ventures will become the third major land developer to set its sights on this area at the extreme western edge of Cochise County, near the interchange of I-10 and the state highways to Benson and Sierra Vista.

With the growth in the Sierra Vista area, fueled by Ft. Huachuca, as well as metropolitan Tucson's march to the east, the open ranch lands around the small community of Benson are becoming an important crossroads, said Diamond Ventures spokeswoman Linda Welter Cohen.

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Along with Smith Ranch, there is the 10,000-12,000 home Whetstone Ranch project within the Benson city limits, as well as Red Hawk Ranch, a community of acreage homes straddling the Pima-Cochise county line.

"We're looking at market demand resulting from the population increase in Southern Arizona," Cohen said. "Major employers in the metropolitan Tucson area, like the University of Arizona Science and Technology Park and Raytheon, are located within a 30-minute commute to the Smith Ranch property."

She said Ft. Huachuca is also less than 30 minutes away. "So, some of the residents will be commuting to Tucson and others to Sierra Vista. An economic analysis we did predicts it will be about 60 percent Tucson and 30 percent Sierra Vista, with another 10 percent relocating from out of state, including retirees, seasonal visitors and others."

Cohen said, "There's a need for quality housing in Cochise County."

Smith Ranch will be providing a lot of that housing. Starting in 2006 and continuing over the next 18 years, the developer will be constructing between 4,500 and 5,300 single and multi-family homes, as well as schools, a fire and sheriffs substation and 107 acres of commercial and office space.

"There will be higher density in the north end, near I-10, and the least density at the southern edge," Cohen said. "However, 50 percent of the land will be preserved as open space with natural preservation around the washes, a trail system, public parks and private neighborhood (green space)."

When it is completed in 2024, the subdivision will be more than twice the size of Benson, as it exists today. However, that will be changing, largely as a result of new residents at Whetstone Ranch, as well as the economic impact of the developments on local business, said Benson City Manager Boyd Kraemer.

The economic impact of Smith Ranch alone is predicted to be $1.6 billion in local income, generating between 3,306 and 4,021 new jobs, as well as $105.8 million in additional local taxes. Whetstone Ranch could more than double those numbers.

"We're looking at a(metropolitan area) population of about 57,000 by 2025," he said. For a rural city that has sustained a population between 4,000 and 5,000 for decades, Kraemer said the impact on Benson will be immense. "It won't happen all at once. There's time to prepare and adapt, but like every other community in a similar situation, you put in place the financial and planning and infrastructure tools to manage the growth as it happens."

He said, "It's workable, but you have to do a lot on the front end."

As the master-planned communities grow, Kraemer said the retail and office market will increase. "Benson's going to gain some shopping, but we won't have a lot until the developments reach the critical mass of about 1,300 to 1,500 homes."

Meanwhile, Kraemer said, Class A office space is already in the planning stages. "Whetstone Ranch has a business park along Genella Road, and some of the land has already been sold."

Beyond initial interest in commercial property, Whetstone Ranch remains undeveloped. However, developers Ernie Graves and Dr. Mark Kartchner have yet to announce a home builder for the property, Kraemer said. "I understand that there has been some interest from Pulte Homes, but nothing is certain yet."

Jacque Petroulakis, director of public affairs for Pulte Homes in Tucson, said the company is considering several locations, including Benson. "We're definitely looking at the area because there's a great opportunity there for affordable housing, but there's nothing to announce at this time."

Philip S. Moore may be contacted at pmoore@azbiz.com or at (520) 295-4238.