Higher values, fewer permits

Barbara Diamond

The city issued fewer building permits in the first six months of

2005 than in the comparable period last year -- but the valuation is

higher.

A record of permits is issued monthly by the building division of

the Community Development Department, listing the number, kinds and

valuation of permits issued and the totals to date.

“Valuation is the calculation we use to determine the building

permit fees,� building official John Gustafson said. “It has nothing

to do with actual market value. The buildings will cost way more.�

All told, by June, the city issued a total of 818 permits with a

valuation of $37,862,400, compared to 830 permits valuated at almost

$9 million less issued in the first six months of 2004.

Ten years ago, in fiscal year 1994-95, the majority of the 151

permits issued for residential construction -- 125 -- were fire rebuilds, with a valuation of $36,500,480.

Twenty years ago, in 1984-85, 52 residential and 26 commercial

projects were valuated at a total of $8,173,640, slightly less than

the valuation for permits issued in June this year. The June

residential permits were valuated at $5,591,063, the commercial

permits at $2,582,577.

Valuation, not construction costs or completed project value, also

determines the amount a developer of a commercial property or a

residential project with more than four lots or units must pay for

public art or into the Art-in-Lieu Fund, for those who do not wish to

include public art in their projects.

“That’s why so few projects reach the $225,000 threshold that

triggers the art-in-lieu requirement,� city Cultural Arts Manager

Sian Poeschl said.

The city ordinance requires developers to pay 1 percent of the projects valuated at $225,000 or more.

In April, three permits were issued for alterations or additions

to commercial non-residential units with a total valuation of

$169,340 -- comfortably under the trigger for one public art

donation.

By the end of June this year, the city had valuated 22 commercial

projects at $2,988,809 -- an average of $135,855 per project.

The city charges fees for plan checks, grading, building

construction tax, sewer connections and drainage. In some cases,

park-in-lieu fees are assessed.

Diamond Crestview construction has its own fee category.

Permit fees are not a city charity, and the fees must be in line

with the costs.

This year to date, the Community Development Department has

collected $1,647,197.11, about one-third of which is planning and

zoning revenue.

Plan checks have cost residential and commercial builders

$248,028.31 so far this year. Construction taxes totaled $115,680 for

the first six months; drainage fees, $20,316.68

Permits are issued for new dwelling units, new construction other

than dwellings, alterations or additions and miscellaneous projects,

which included re-roofing, fire protection systems, sandblasting,

signs, temporary tents, and demolition.

Special permits are required for doing weekend work.

The city handed out 150 building permits in June, compared to 145

a year ago June. Four of the permits were for single-family

dwellings; 23 for hardscape, including walls and fences, and two for

pools/spas. Fifty permits were issued for alterations or additions to

dwellings and eight for commercial or non-residential projects.

Fifteen demolitions permits were issued in June, one of them for

the Robert Powers home, destroyed in the Flamingo Landslide June 1.

The Powers home was the first home in the slide area to be

demolished. At least another 10 will be demolished to make way for

winterizing the slope and blocked drainage created by slide.

Fourteen new residential structures have been completed since

January and 13 demolition completed.