This week’s Fountain Hills History Lesson takes a look at the year 1978. Construction really took a turn for the better that year.

The supply of new homes had dwindled during the recession of the late 1970s.

Interest rates were at an all-time high.

I remember paying $35,000 for a four bedroom, 2,000 sq. ft. home near Paradise Valley Mall in 1975. Then I bought a three bedroom, 1,800 sq. ft. home in Courtside Villas in 1978 for $67,000. I thought I made a real deal getting a loan at a 10-7/8 percent interest rate. The going rate at that time was around 14 percent.

Suddenly, both builders and buyers were anxious to expand. In addition to Courtside Villas, there were eight other projects that were started in Fountain Hills during the year 1978.

Developer Lorne Pratt predicted that the growth would continue as Phoenix residents continued to search for more secluded and peaceful surroundings.

“There is a continuing demand for the environmental protection and good values and family homes provided in Fountain Hills,” he said.

Within months, the school board approved a $750,000 addition to the elementary school.

Enrollment at Fountain Hills Elementary was up to 255 students.

The Sanitary District approved resolutions to initiate the sale of $520,000 in district bonds to finance continuing sewer line installations in the community.

Construction began in February on a $350,000 recreation vehicle and mini-storage complex in the Science and Industry Park.

Shepherd of the Hills Lutheran Church announced in February that it was starting work on a new church building on the northwest corner of El Lago and Fountain Hills boulevards.

Construction also began on a $510,000 expansion of the McDowell Switching Station in Fountain Hills, doubling its capacity.

Nine builders announced they would build model homes in the new 605A subdivision. Cable TV, it was announced, was now available to all Fountain Hills residents.

The Civic Association, under the leadership of Paul May, began making floats for entry into the Fiesta Bowl Parade in Phoenix and the Parada Del Sol in Scottsdale. They did not have a losing entry in all the years in which they participated. All were built with volunteer labor.

Entertainment made its return in 1978. The American Big Top Circus came to town in January.

Count Basie and his big band joined the Phoenix Symphony for a concert in Fountain Park in May. There was a surprise guest singer performing that evening when Ella Fitzgerald showed up and performed with the band. She was visiting in Phoenix and just happened to see an article in the Phoenix newspaper that told of Basie’s concert at Fountain Park.

Well, that’s where I’m going to stop on this Fountain Hills History Lesson for the first half of 1978.

I wanted to wish everyone a Merry Christmas from The Times staff and my family.