Construction values are 50% of what they were last year at this time;
The number of building permits issued in Sioux Falls through August this year is up from the same time in 2008, though the value of that construction is down significantly.
Sioux Falls has issued 4,308 permits this year, up from 4,242 in 2008 but still down substantially from the 4,564 permits issued in 2007, according to city records.
But the total construction value in 2009 of $176.7 million is down from 2008, when the numbers through August were at $294.1 million.
There have been 681 new single-family, two-family and multiple-family permits issued in 2009 at a value of $71.3 million.
That compares to 1,016 new residential permits approved through August of 2008 at a value of $114.6 million.
This is no surprise to me, if you have been following the local economy as I have since last fall, you could have seen this coming a mile away. But city hall put their blindfolds on and approved a tax increase to build new roads anyway. While this is bad news for our local economy, it is good news to taxpayers. It means we can hold off on building new roads until it picks up, therefore saving us millions in the CIP budget, money we can either put in reserves or use on infrastructure upgrades (which should be the priority anyway). If developers can’t pony up their 50% towards new roads, taxpayers shouldn’t pony up either. According to the July financial report, taxpayers have put in $1.6 million into the new fund this year while developers have put in a whopping $90,000. Yes, we have put in 17x more money then the devolpers. Yet, the SD MSM doesn’t see a story here? Go figure. Of course this would require a new council that isn’t spend happy. In the informational meeting on Monday, councilor Beninga had a pity party about not having enough time to offer amendments to 2010’s budget, which probably means he will offer very few if any at all. The funny part of the conversation was when clerk Owen informed all the councilors that Staggers already turned in his (he was absent from the meeting). They seem shocked, and one councilor joked, “He has been probably working on them for a year.” Not quite. Then they asked if they could see them, and she replied that she would have to get permission from Staggers to show them. The city attorney’s office apparently is unaware of the new open records bill that started July 1. Quen Be De also got on her soapbox about wanting to raise the retail tax by a penny, and joked that not all the wisdom in the state resides in Pierre in the winter. While I do agree with her statement, I would have to say most legislators probably have more intellect in the tip of their little toe then she has in her whole body.
I can’t wait for the retail tax increase legislation to fail. Maybe I will throw a party.