Published: January 23, 2009 01:54 am      

Issuance of city permits above average

PALESTINE — Construction may have slumped in other parts of the country in 2008 but not around Palestine.

The city’s development code office, which issues permits related to building, stayed busy throughout the year, said development code director Warren Oakley, to the tune of $25.7 million.

That figure, which includes new construction and remodeling, is nearly $3 million more than in 2007, which also was considered above average, Oakley said recently.

During 2008, the city issued 1,304 permits totalling $25,717,656. In 2007, it issued 1,182 permits worth $22,919,463 in new construction and remodeling.

“2008 appears to be one of the better years the City of Palestine has on record,” Oakley said. “Better than $22 million was commercial business and the rest was residential.”

Oakley said he sees three factors as key to Palestine’s ability to buck the national downward trend last year — available land, workers and water.

“People are asking what is driving this. I think we’re seeing that we have the raw land area, we have the workforce and the main thing is water,” Oakley said, noting the area’s rainfall, rivers and lakes combine to produce plenty of available water.

The area also offers an available workforce.

“Our workforce here has been real good,” Oakley said. “Our service industry has held up well. Drilling for exploration for oil and gas has been well.”

While the oil and gas industry has begun to slow, the area hasn’t yet seen the layoffs well-publicized in other industries in other areas, he said.

“Here in Palestine, there are people that make their living in electrical, plumbing, mechanical, builders, they depend on the construction industry to be strong to make a living,” Oakley said. “The last few years that industry has been very good.”

That runs contrary to many parts of the country.

According to the American Institute of Architecture Billing Index released Wednesday, which is considered a leading indicator of construction nine months to a year ahead, new construction nationally remains low, in large part due to the credit crisis.

The billing index represents activity in non-residential construction and is based on whether the number of architectural firms billing for planned construction projects is up or down since the prior month’s index.

“The inability to get financing for construction projects is a key reason that business conditions continue to be so poor at design firms,” said AIA chief economist Kermit Baker, PhD, Hon. AIA. “It will be important to see what the proposed economic stimulus package includes that is geared towards the construction industry, and how quickly developers who have had to put projects on hold can get them moving again.”

Locally, though, projects continue to move forward.

“I think in 2009 we will see even another good year,” Oakley said. “We’ve got a lot of things that we know about that are going to happen here.”

Comfort Inn and Suites will begin construction this year in the Willow Creek Business Park, while construction continues on the Hampton Inn and Suites nearby on Loop 256 across from Lowe’s.

Other projects on tap include a large medical office for Dr. Don Jackson in the Willow Creek Business Park; a new nursing home on S. Sycamore Street behind the doctors’ offices on Medical Drive; a small strip shopping center beside Wal-Mart off of Old Elkhart Road; a new 9,000-square foot facility for the Social Security office; expansions at Cartmell Home for Aged and Dogwood Trails Assisted Living; renovations and additional classroom space at Westwood ISD; and continued renovation of buildings in the downtown area.

“The main thing I believe is a lot of the other larger cities have built out and the developers have found East Texas is a place that is ready for growth,” Oakley said. “I don’t think it’s going to slow down. I think we’re going to see a continuous growth pattern.”

————

Beth Foley may be contacted via e-mail at bfoley@palestineherald.com

————

On the Net:

American Institute of Architecture, http://www.aia.org