Even if we’re not done with all of them, they can take them as we get them. And so, you’ll see some phased incremental deliveries on that on 2b. 2c, the best thing you can do in the winter, temperature wise, is the grading, which is the dirt work. And those guys are in those nice big yellow pieces of iron and they’re moving around in a comfy cozy cabin, digging and moving dirt and that doesn’t bother them so much. So, you’re going to see a lot of that activity over the winter, and we really did want to capitalize on that this winter. So, we pulled the trigger on that one, just making sure that we could do that seasonality aspect and then start being in a position to deliver lots end of next calendar — end of this calendar year in 2024 on 2c as well.
Bill Cunningham: Okay. That’s great. I assume on 2b that there’s — you’re probably going to — there’s probably no roads paved interior yet, but you’ll probably be doing some of that in the spring once the weather improves?
Mark Harding: Yeah. Exactly right. We’ll be grading it. We’ll be getting it fully prepped. And then that goes superfast. It’s stunning how quickly the site goes from looking like a dirty mess to a fully lot-driven streets, curbs and gutters. So — but it is temperature driven. We do have to — that’s going to probably start in April timeframe and hopefully finish that one up within the 60-day timeframe.
Bill Cunningham: Great. Thank you very much, Mark.
Mark Harding: Thank you, Bill.
Operator: [Operator Instructions] Your next question for today is coming from Geoffrey Scott with Scott Asset Management.
Geoffrey Scott: Good morning, Mark. How are you?
Mark Harding: I’m great, Goeff. How are you?
Geoffrey Scott: Very well. Thank you. What is the timing on commercial development? We’ve talked about this for an awful long time and it’s always “Out there in the future, it will happen, but we don’t know when.” Can you give us some color on current plans and projections? Thanks.
Mark Harding: You bet. And that is a high value component for us. And we continue to talk with commercial developers. And I would say that there’s a little more interest on the industrial side, necessarily than the retail or the big box stores. It really is a function of the number of rooftops. And while we’ve delivered 700 rooftops that are captive market for them, I think they’re looking at closer to a couple of thousand rooftops. And there’s two things that would be adding to that connectivity. One of them is, as we’ve talked about in the past, is the interchange. We’ve got that — we’re going to be building a new interchange right at the highway there. And we’ve got some mill levy set aside so that we can bond that out. We’re in the middle of the 1601, which is the permitting process with CDOT to get that done.
We should have that done towards the end of this year. The second component of that is extension of one of the roadways. One of our major arterials is 6th Avenue and have that extend west to connect up to another north-south arterial to add that link into some of the development that’s in the City of Aurora directly south of us. That particular roadway is the responsibility of the developer south of us. They’re looking at starting that corner of activity sometime this year, and so that connectivity again will add some more connections in there. And I would say, we’re still probably looking at late ’25 for some of that commercial activity, Goeff. As much as I’d like to accelerate that and have tried, have tried by providing some incentives out there and otherwise, I think that that’s going to roll sometime in that ’25 calendar year timeframe.
Geoffrey Scott: Okay. So, if I understand correctly, by end of ’25, some of the infrastructure will be completed. How many rooftops will you have by the end of ’25?
Mark Harding: If we can — if we maintain our current pace, we’re probably taking down about 200 homes a year. So that’s another 400 homes in that connection. So that’s getting pretty close to a couple of thousand connections.
Geoffrey Scott: Okay. So, you’re really looking at pretty much 2027 for real commercial developments. Well, I think because most of that infrastructure is already there, you’re going to see transactions. You’re going to see lot transactions. You’re going to see tap transactions. You’re going to see us making — participating in some of that development where we can hold the equity value of the land and partner with someone to go vertical on that and then exit when a particular facility/structure is fully leased. So, we’re looking at pursuing all of those avenues in commercial.
Geoffrey Scott: Okay. Thanks, Mark.
Mark Harding: You bet.
Operator: [Operator Instructions] Your next question is coming from Elliot Knight with Knight Advisors.
Elliot Knight: Good morning, Mark.
Mark Harding: Good morning, Elliot. Good to hear from you.
Elliot Knight: Well, you have done a beautiful job today of outlining the values that are in Pure Cycle’s control. It’s a question as always as how rapidly they can be monetized. One thing we’ve talked about before, and that’s paying a cash dividend. The — you’ve always said, well, the Board wants to be sure that there are adequate recurring revenues, before they initiate a dividend. Aren’t you really already there where you could begin a dividend, even if small, even if an annual dividend? Would you give us your thoughts on that, please?
