Building activity sags

2004 valuation lowest in decade, but late surge builds hope for 2005

Lawrence issued permits for $117.7 million in construction, renovation, remodeling and related work last year, the city’s lowest total in a decade.

The permit valuation fell $32.8 million short of last year’s total, despite a flurry of activity during November and December — an especially strong two months for residential builders, who snapped up lots in new subdivisions and scrambled to start building in time to make the spring sales season.

The city’s Department of Neighborhood Resources issued permits in December for 53 new single-family homes, the year’s highest monthly total and enough for an estimated $8.3 million in work.

For the year, the city issued 313 permits for new homes, down from 317 in 2003 but otherwise the highest since 393 permits were issued in 1999.

Home builders have been anxious to build, as mortgage interest rates continue to stay low. But they’ve been held back by a scarce supply of lots in town.

Two new developments — Fairfield Farms West at the southeast edge of town, and Foxchase South just east of Langston Hughes School in west Lawrence — have given contractors room to build and offered businesses who depend on them reason to be optimistic heading into 2005.

Todd Gragg, owner of Gragg’s Paint Co., recently opened a new store in Lawrence with hopes for building on the city’s strong market for construction and remodeling. While he already has a store and warehouse in Kansas City, Kan., and a retail store in Overland Park, he’s finished out his Lawrence location with tile floors, TV sets and other amenities to soak up as much of the city’s contractor and consumer demand as possible.

“It’s going to be really busy,” Gragg of his store at 1520 Wakarusa Drive, where he boosted the city’s annual permit valuations with $150,000 of his own tenant finishes. “It’s definitely on the upswing.”

Permits for duplex development also continued to pick up as the year drew to a close.

Work continues on the Hobbs Taylor Lofts at the northeast corner of Eighth and New Hampshire streets. The project by Harris Construction Co. Inc. accounted for two of the 21 building permits for new commercial construction in 2004, the city's lowest total in that category since 1992. The lofts project -- featuring street-level retail space, second-floor office and residential condos upstairs -- accounted for million of the 17.7 million in construction, remodeling and related work permitted in Lawrence during 2004.

Builders signed on for 32 new duplexes in December, many of them in Fairfield Farms West, for a total of $6.1 million.

More than half — or 61 of 110 — duplex permits for the year came in November and December. The year’s total fell short of the 157 permits issued in 2003 and represented the lowest total since 46 permits were issued in 2000.

Apartment construction also dropped in 2004. The city issued three permits for a total of 102 apartment units, the lowest total since permits for 55 units were issued in 1997.

Commercial construction also sagged for the year, with 21 permits issued for new businesses — the lowest total since 18 such permits were issued in 1992.