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Builders grateful for vote |
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Wednesday, 11 March 2009 |
Local homebuilders said they appreciate the Benton City Council’s decision on Monday night to place a six-month moratorium on building fees.
“It willd save us some money, and I think that is great,” said Rich Hesley, owner of Homes By Hesley in Alexander.
“Ninety percent of all my homes are built in Benton, and it will definitely help with my costs.”
The moratorium applies to both residential and commercial development in the city. The suspension of fees takes effect immediately.
Nine council members voted for the moratorium. Alderman Larry Wolf casting the only “no” vote.
Wolf did not return telephone calls to explain the reason behind his vote.
A majority of the council, meeting last week in a joint meeting of the council’s Finance and Economic Development committees, agreed that the action is needed in order to spark new building and remodeling projects in today’s sagging economy.
Alderman Doug Stracener, the senior council member who chairs both panels, said inspection fees and associated fees still will apply while the building permit fees are lifted.
Jim Towe, city building inspector, said that for an average 2,500-square-foot home, the permits normally would cost around $2,138 for all fees. With the six-month moratorium, a homebuilder would save $453.
“Our plan is to help builders,” Stracener said. “We want to measure what effect this has. We wanted to eliminate as many fees as possible for a homebuilder, and it could make the difference between them choosing to build here or somewhere else.”
Ray Gabbard with R&J Homes in Benton said he believes the moratorium will cause more builders to look at Benton.
“I think it will give us a little jump in the market,” he said. “Home sales have been down and we’ve pulled inventory down on new homes, but interest rates are the lowest I have ever seen. Saline County has seen a lot less decline than other places and I think we probably need to build up inventory, but this action by the city psychologically shows that they support the home builders.”
Kevin Steed with K&S Homes in Benton said he is grateful for saving nearly $500 in fees, but he also said the city can do more to help.
“I don’t want to be negative because $500 is great,” he said.
“Don’t get me wrong, I am glad that the did that, but they could do more. It’s going to help, but they charge me $1,000 to connect to the city sewer and $200 for Benton Utilities connection and that’s $1,200 right there. I would rather them wave those connection fees. Plus, that will make the city money for many, many years.”
Gabbard agreed with Steed, but said that decision is not up to the City Council.
“We would also like to see ... the same thing on the utility fees,” Gabbard said of waiving fees.
“That will have to come from the Public Utility Commission, but maybe they might lower their fees, too. I do think it is helpful moratorium on permit fees is helpful and maybe it will help get new houses built. We’ll have to wait and see.”
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Razorbacks
