John Stone: An affinity for building

Riverstone developer, John Stone, is an unexpectedly soft-spoken man with an unpretentious office overlooking Riverstone's man-made pond, which is now covered with snow. "You should see it in the spring," he said. "It's really beautiful with all the people around there."

It would be easy enough to assume Stone has been a lifelong Realtor and developer, but that wouldn't be entirely true.

How did it all start?

I've had an affinity for building that started when I was six. I've always loved being around lumber and building and tools.

When I was a kid, I was always building tree forts. First I built a single-level one and I liked it, but then I thought it was too small, so I tore it down and replaced it with a two-story structure. Pretty soon I ended up with a three-story fort with a deck. There was just something about architectural work I loved.

Give me a number. Over the next half century, what became of the little boy who built that tree-house?

Over $1 billion in development in 25 to 30 cities - I just have a passion for building.

What exactly happened in your life between the treehouse and a billion dollars?

Education was almost always the most important thing to our family. After I graduated from Gonzaga, I went into the computer field and taught for seven years.

In 1971, I was teaching computers at NIC (North Idaho College) and doing their computer work. Nights and weekends I had my own computer business on the side and used the money from that to buy land. The land I bought eventually turned into developable land.

When did your big break come?

I discovered this idea of mini-storage and it was a new concept at the time. I had a hard time getting money because when I went to the banks, they'd say, "So, you're telling us you want our money to build side-by-side garages?"

The first facility I contracted out to build was to two guys who drank a lot. I figured if they could do it drunk, I could do it better sober.

In 1976, I quit NIC to build mini-storages until the early 80's. I ended up doing about four or five over here and then some more in California and Seattle.

Did you ever stop what you were doing to catch your breath?

I finally quit for a while to take some time out to coach my kids in football and soccer. Previously, I'd taken time away from my kids and then thought it really important to try to spend that time with them. I enjoyed it a lot.

Four years later, I got into the mid-80's gold mining business as well as Triple-A baseball.

Not that gold mining and baseball aren't the real deal, but what made you dive back into the world of building and development?

I guess I always knew I wanted to be in business and development, so soon after I pulled out of gold mining, I started building apartment complexes - retirement communities.

Most of us have no idea what's involved in building a complex. How about some enlightenment on this?

Well, first I found a piece of land in a good location. Then I worked with an architect to design it. I hired people to help me and looked for someone to finance it. The financing involved partnerships and investors.

You know, the thing for me was that it was never about the money. I knew the money would take care of itself. I knew I was competent at what I did, so that took some of the risk out of it. I knew I could do what I really wanted to do.

Why were you so sure that you were competent?

I don't know how to explain it. Maybe it was that I wasn't afraid of new things and I've always done really well with change. You're only as good as the risk you take. Someone said that the biggest risk of all is not taking risks.

I had a very loving upbringing and I don't fear a lot of things. I felt confident to fly out of the nest because things are good. I also have older sisters who have been hugely supportive and important in my life.

When did you figure out you were a career risk-taker?

When I quit a very stable job at NIC making $19,000 a year and then turned down a job working for the Air National Guard. I had a couple of other good offers but they didn't interest me, either.

But Riverstone, now that was something that interested you, yes?

I had the vision - it was to do this development - and it was to create a lifestyle I really liked. I wanted a "live, work and walk" environment because it seemed to me to be a far better way to live than to be driving seven to 10 miles to a house out on the prairie.

The dream. It was amazing how it happened. Fifteen years ago when I came to develop it, the design we had then is so amazingly close to what we have here now.

It's 160 acres. When I was teaching at the college, I'd drive by the location and think what a great piece of property it was. I always thought this property was special.

I started by buying two pieces - an abandoned sawmill that was 75 acres and a gravel pit that was 80.

And then came 2008.

2008 to 2011 was a horrifying period for most people in America. Real-estate-related folks lost 40 percent of what they typically had.

I've never had anything that major in my life before that and I'd never lost any money in real estate until that happened. The only thing I'd lost at was gold mining.

I had to give back four buildings here, but I'm buying two of them back.

There were definitely some bleak moments. I wasn't sure - I wasn't even sure we'd have a U.S. economy for a while. But then things got better one brick at a time.

What kind of turnaround would you say it was for Riverstone?

A dramatic turnaround. Our retail is healthy today and restaurants are doing well. Residential sales are probably up 15 percent from last year and that was 15 percent from the year before.

We have some lots left and there are four properties that haven't been sold yet.

The money is coming back a little bit at a time, but it will probably be another 10 to 12 years before we get it all back.

What do you do to relax and let the rest of the world go by?

I'm an avid golfer. I also did my first Ironman at the age of 64 and my second when I was 66. I love to bike and swim.

I'm a serious traveler as well. I've been to 58 countries and am not finished yet.

What do you see happening in your professional future?

I'm working now with high-tech companies trying to attract them to Coeur d'Alene. There's more money here than in Spokane for the right idea.

I'm helping incubate companies - helping them raise money to pay for their employees. I get investors interested and put them all together. Investors invest in concepts.

It's an art and I want to see job growth here.

How do you know you're on the right track?

I've always been able to trust my instincts. I've been lucky. If I think something's a good idea, it usually works out.