Last week, I wrote about the dog days of August, when times are usually slower, and we wait for school and football. But I had some interesting conversations with a few area builders this week that gave me a whole new outlook on this traditionally slow month. The builders I talked to said they were seeing an increase in traffic in theirs models. Then we talked to some Realtors, who said they are selling new homes. They all say the reason for this little upswing in activity is that the market is perfect right now for buyers. Interest rates are still relatively low, and builders are ready to work with homebuyers. It is a great time for buyers to get value, and that can only be good for the industry.
Of course, one thing that could not only slow this little bit of progress, but bring it to a grinding halt, is the imposition of higher impact fees. We have been reporting for a few months now about the impact fees being considered across North Central Florida. With only three more weeks until the impact-fee hearing in Alachua County, you would expect The Gainesville Sun to begin its anti-building-industry rhetoric on its news pages. It is fascinating that the most accurate information in The Sun is not on its news pages, but on its editorial page.
The piece this past Saturday that attempted to answer the question of who should pay for growth is another example of The Sun's effort. While the story was accurate, it left many questions unanswered. The biggest of those questions is where is all the money that new growth brought into this community over the last decade. Commissioner Lee Pinkoson gave a good answer, when he said that if we have about two percent new growth each year, than at least two percent of that revenue should go to pay for infrastructure needs created by that growth. The second question is what will happen to the local economy when impact fees are raised as much as is being considered. Commissioner Mike Byerly would have you believe that builders and developers will simple swallow the increases. But would any business person in any field cut into their margin, which in this case is already not that much, to satisfy the needs of government. No, as we all know, these fees will be passed along, and become a drag on our local economy. The real looming question is whether this county government can be trusted to put the money where it is supposed to go. Based on past history, the answer is a resounding no.
So, as we have said before, it is critical that we continue to educate the community about what these fees rally mean, and if the commission does not act responsibly, than we must at election time. |
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www.BuildingEdgeMagazine.com
Our August 2007 issue is online, and should be received within a week. The cover story is on Ocala's Adams Homes. The National feature is Curb Appeal: Entry doors, brick and siding, roofing, lighting, landscaping, paving. The online version is now available.
The September issue, which includes a feature on The Palms, an exciting new downtown Gainesville condominium development being brought to you by Mitch Glaeser, Greg Trunnell and Miles Kinsell, is now in production. For more information, please contact us at (352) 372-3958 in Gainesville, or (352) 368-1707 in Ocala. The national feature is Interior Design: Lighting, hardware, trim millwork, interior doors, fireplaces, stairs, closet systems. We are spotlighting in this issue Griffis Tile and Flooring.
Sales are open for our October issue, which will be featuring Isaac Construction in Lake City. The National Feature will be on Weathering the Elements: HVAC, insulation, house wrap, anti-mold products, siding and brick, roofing, pest control.
Our Summer 2007 issue of Commercial Building Edge is now available. The cover feature is on Gray Construction Services. The National Feature is on Green Building.
Sales are now open on the Fall 2007 issue, which will include a cover feature on Ocala's Ausley Construction . The Winter issue will feature Trunnell Construction on the cover.
HOME™: Living in the Heart of Florida Resource Guide
Home: Living in the Heart of Florida, a new magazine from Advantage Publishing is open for sales. Our website will be up in the next few days. I encourage you to bookmark the link, as we aim to make this the number one website for the North Central Florida Community. It is www.LivingInTheHeartOfFlorida.com. Part of this new publication will be our newcomer/relocation resource guide. It will include just about everything anyone looking to move to our area or relocate within the 12-county market will need. To be listed in the resource guide, please call us today to discuss. I am pleased to note that we have formed some terrific partnerships with local establishments to insure success through the delivery of the publication. Just to name a few, we are working closely with Gainesville Regional Airport , Gainesville Chamber of Commerce and the Newberry/Jonesville Chamber of Commerce. Coming this fall will be a publication for the consumer unlike anything out there today!
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Who Should Pay for Growth?
The question that doesn't seem to have an answer is again being debated at Alachua County Commission meetings - does new growth pay for itself? With roads growing ever more crowded and money for them growing ever more scarce, some suggest the question should be reframed: It's not whether new growth pays for itself, but how much money is needed to cope with the growth. It's an issue the County Commission will face soon when it considers increasing the impact fees charged on new development.
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Kennedy Homes to Become a Memory
Excavating equipment tearing through the walls of Kennedy Homes apartments Wednesday began the slow process of putting the affordable-housing complex's troubled history to rest. The demolition also began clearing the way for what city commissioners hope will be a new vision for southeast Gainesville.
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Developer to Ocala: Project on Track
The developer of the Downtown Shops & Walk says the seemingly stagnant project will soon be back on track. For weeks Ocala city officials have tried, without success, to reach developer and JJH Investments owner Jorge Gutman by phone. Tuesday afternoon he began returning their calls. Gutman advised officials of his plans to satisfy his two contract defaults by Friday. He also asked to address city council at its next meeting, said Marc Mondell, building director for the city of Ocala.
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Authorities say Copper Thefts on Rise
Among the many crimes committed within the past year, police have had to crack down on a rash of copper wire thefts, with thieves taking the pricey material from construction sites and other locations and selling it for scrap. After Ocala police and Marion County sheriff's deputies gained some success by forming a task force, the problem is once again making its way to the top of the police blotter.
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Marion County Adopts Tentative Tax Rate
The Marion County Commission has set tentative property tax rates for 2007-08 that are expected to generate almost the maximum amount of revenue the state will allow in this year of Tallahassee-mandated property tax cuts. The county commission unanimously adopted the tentative tax rates last Tuesday after about an hour of debate. Commissioner Charlie Stone lamented that voters will feel they did not make deep enough budget cuts to offer significant tax relief.
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Landscaping Started on S. Main Street in Gainesville
The Florida Department of Transportation has launched a road beautification project on S. Main Street in Gainesville. The project, which began last Monday, will involve landscaping with a variety of plants including the sabal palm, live oaks, crape myrtles and wild date palms. The plants were selected for their low maintenance needs and hardiness, according to the department.
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Area's UF Ties Offer Economic Pros, Cons
The good news is that Gainesville's economy is largely dependent on the University of Florida. That also happens to be the bad news. Such contradictions abound in an economic outlook report by Moody's Economy.com, a financial research firm.
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Alachua County, Small Cities Debate Who Pays for Services
While Gainesville and Alachua County have been picking over the dollars to figure out how they can comply with state-mandated tax cuts, a few of the smaller cities actually will have more money to spend in 2008. The situation could spark debate over payments by those cities for services provided by Alachua County, including fire and police protection.
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Columbia County Property Tax Savings Expected to be Minimal
Columbia County property owners expecting huge savings on their property tax bill this fall may want to brace themselves. All the hype probably won't mean much more than a couple hundred dollars, or less on most homesteads. Local taxpayers expecting a reduced tax notice because of the lowered millage rates, will only notice a slight decrease, averaging just over $100, in their taxes as a result of the property tax reform legislation, though the law was highly touted and hyped by state legislators.
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Belleview Officials Trimming Budget
A request to renovate several city-owned buildings, doing without some technology upgrades, and putting off creation of some new city jobs are some of the topics Belleview city leaders are weighing as they plan the budget for the coming fiscal year. The first task for Belleview commissioners is to cut expenses by $185,700 from the nearly $6 million budget. Commissioners trimmed $67,700 during the first workshop session Monday. Budget workshops are scheduled through Thursday.
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Lake County Group Fights Impact Fees
A political action group called for the rollback of impact fees on Wednesday and plans to address the Lake County Board of County Commissioners later this month. Citizens for Better Government, L.L.C., headed by Leesburg businessman Donald Magruder, said the group feels strongly that the commission should also take any increases in impact fees off the agenda.
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MCBA Calendar of Events
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BANCF Calendar of Events
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Lawmakers Call Third Special Session
With tax collections falling short by hundreds of millions of dollars, Senate President Ken Pruitt and House Speaker Marco Rubio have announced that they will hold a special legislative session in September to cut the state budget. The session is scheduled to begin Sept. 18. Lawmakers are hoping to patch a budget that only went into effect on July 1. One of the primary factors affecting Florida's declining revenue is the state's depressed housing market.
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Lawmakers Demand Hearings on Insurance Rates
Lawmakers are increasingly demanding answers from the private insurance companies that sell homeowners coverage in Florida. On Thursday, state Sen. Steven Geller, D-Hallandale Beach, urged Senate President Ken Pruitt to launch hearings, as early as possible, to bring insurance executives to Tallahassee and put them under oath to explain why the promised premium reductions haven't materialized.
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Higher Fees Will Hurt, Builders Say
Pasco school district officials want to raise school impact fees to $10,477, more than twice the current rate of $4,356 per new home. The proposal provoked an outcry from home builders, who say it will set back Pasco's efforts to produce more affordable homes and hurt an already sluggish residential market. Floated at a joint workshop last Monday among district officials and county and municipal leaders, the proposed tax increase is part of a larger package of state-mandated changes.
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Sales Incentives Add Value to Property, Fuel Tax Debate
In Tampa, condo builders will pay for a semester at the University of South Florida. In Pensacola, home sellers offer plasma TVs, golf carts, pools and plane tickets. Florida's real estate slump has led to some extraordinary enticements, which add up to great news for buyers. But these oddities are causing headaches in Tallahassee and a debate over how they may be artificially increasing property taxes at a time when taxes are supposed to be going down.
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Trends in Commercial Real Estate
Most Florida markets are seeing a robust wave of office construction. "The commercial market has been strong both in Tampa and Orlando, even though the recent residential condo craze has driven up land costs for both office and industrial products," says Jerry Shaw, senior vice president of Opus South in Tampa, which has two 103,000-sq.-ft. office buildings under construction in Florida, one in Tampa and one in Orlando.
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Catastrophe Fund Bill Would Lower Premiums
Consumers in Florida and other disaster-prone areas across the country would see their homeowners' insurance premiums drop under a bill introduced in Congress Friday.
The bill would create a voluntary, market-driven national catastrophe fund designed to ultimately lower the cost of insuring homes in areas where the threat of hurricanes, floods and earthquakes can send premiums skyrocketing. It also would make federal loans available to assist in the rebuilding of states hit by natural disasters.
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NAHB Updates Warranty Book
The National Association of Home Builders has released "Warranties for Builders and Remodelers, Second Edition" where builders and remodelers can find expert advice on how to use warranties properly and avoid costly mistakes. This edition features clear explanations of different types of warranties, sample warranty language and formats, recommended practices and procedures, tips for drafting warranties and state-specific lists of cases and statues applicable to construction claims.
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Prices are Rising and Homes are Selling Fast in Sioux Falls, S.D.
Home sales in Sioux Falls, the largest city in South Dakota, are on track to set a record this year. Prices are rising, too, yet remain affordable compared with most of the country. Another sign of strength in the market: the average home is selling in 88 days, down from 109 last year. Sales activity has really picked up in the past six weeks, after rainy and cool weather in the spring kept some home buyers indoors.
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Immigrants' Homebuying Dreams Lift Housing Market
With rising purchasing power, the nation's growing number of foreign-born residents are keeping the bottom of the housing market from falling out. And amid slow demand from an aging and slow-growing native population, immigrants are fueling predictions of a rebound. Assuming Congress does not impose further restrictions, immigrants, both legal and illegal, and their native-born children are forecast to provide the bulk of coming years' growth in homebuying demand, nudging the market back up and aiding the broader economy.
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Smart Materials Growing in Popularity
Smart materials have one or more properties that can be significantly altered to generate controlled reaction to external stimuli in real time. So by changing the external conditions in which a smart material is placed, one can expect the material to intelligently alter its properties on its own, resulting in a change in their structure or composition or function. Although only few products have emerged incorporating the smart material technology, their variety in the building industry is small but will surely grow to be significant.
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FHBI Extends Coverage to Commercial Builders
Florida Home Builders Insurance, Inc. has expanded eligibility for its roofers program to include commercial as well as residential roofing contractors who are members of the Florida Home Builders Association. The program provides general liability coverage to roofers and subcontractors involved with insulation work, sheet metal work, siding installation and waterproofing.
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Paddock Mall to Get Face-lift, Addition
Don't be surprised if the area around the Paddock Mall looks like a construction zone in the near future. The mall itself is about to undergo a renovation and expansion for the first time in a decade, and one or two new outlying shopping centers nearby are about to start construction. On its Web site, mall owner Simon Property Group says the mall is due for a renovation and expansion next year. The company's Development of Regional Impact, or DRI, plan is up for reapproval by the Ocala City Council next Tuesday.
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Carpet One Location is Expanding
Carpet One Floor & Home is signing a lease today to expand into the space vacated by Mattress Zone USA at the Tower Center, off of Tower Road near Newberry Road in Gainesville. The move will nearly triple the store's size to 3,000 square feet, according to leasing agent Mitch Glaeser. Owner Harriet Whitehurst-Jones said the expansion will allow the store to carry most of the same stock as its 227 NW 23rd Ave. location. Carpet One carries flooring, furniture, window treatments and decor.
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Newberry May Become Home to Archery Facility
The National Archery Development Association sits in a nondescript building in the Newberry Industrial Complex, unnoticed by most everyone who isn't looking for it. Now, thanks in part to the work of NADA President Doug Engh, archery may be moving to the forefront of public life in the city. City Manager Keith Ashby said Newberry is in negotiations with the Easton Sports Development Foundation to build a regional archery training center in the city, a prospect that could make the city the host of national and international archery tournaments and training camps.
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New Home Depot Store Opens Its Doors
Edward Clifford was first in the door when The Home Depot opened its new store Friday on NW 13th Street and 53rd Avenue. He was dropping by to pick up drywall and supplies for renovations at Town Park Apartments, where he is manager, when store manager Bert Miller decided to open 20 minutes before the scheduled noon start time after a handful of people had gathered outside.
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ABC Urges House to Vote Against Farm Bill
The U.S. House of Representatives voted to pass "The Farm, Nutrition and Bioenergy Act of 2007". In a letter sent to the House before the vote, the Association of Builders and Contractors urged representatives to oppose the bill because it contained a provision that would expand Davis-Bacon prevailing wage requirements. The legislation will now be considered in the U.S. Senate.
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AGC of Greater Florida Calendar of Events
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Residential August 2007
Commercial Summer 2007
HOME: Living in the Heart of Florida
Fall 2007
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