Area Development Improving

— Residential and commercial construction declined sharply in 2009 after the housing bubble burst. Based on building permits and large-scale development plans, however, 2012 has seen improving conditions in Rogers.

“I think we are doing much better,” said Derrel Smith, senior city planner.

“We went for several months in 2009 without one permit for a single-family home. There are a lot of homes being built in the southwest section of the city now,” Smith said.

Carl Walker, a partner in ARC Construction, said his company has had success building single-family homes this year.

“We are building custom and spec homes in the $150,000 to $225,000 range and doing pretty well,” Walker said.

Spec homes are homes built on speculation with hopes the homes will sell.

Walker’s company also builds homes valued at $400,000 and up in the Pinnacle Country Club subdivision.

Many of the homes his company is building are in platted subdivisions he said he bought from banks.

“Most of those subdivisions that the banks got in foreclosures already have streets, water and sewer in place. Most of the houses we build are already sold. We build a couple of houses on spec to have something to show, but we don’t keep a big inventory,” Walker said.

Chris Bradley, one of the owners of Landmark Construction, said his business never slowed during the recession.

“Since 2006, we have built about 30 homes a year through 2011, and normally sold at least 27 of them. Eighty percent of those homes were built on spec,” Bradley said.

This year, Bradley said he noticed a turn in the market — his company has built 55 to 60 homes.

“We built half of the homes on spec and half custom homes. We doubled the number of houses we built last year,” Bradley added.

The homes his company builds range from $269,000 to $499,000.

Devon Ross, owner of Ross Construction, said in 2009 he built just 35 homes.

“This year we are building 120 homes. I definitely think the housing market is turning around in this area,” Ross said. “I don’t think the market will slow down next year. I think we will continue to see the market expand. Most of the old inventory is sold and new construction is picking up.”

His company builds homes ranging in price from $114,900 to $399,000.

Commercial building construction is increasing as well, Smith said.

“If we look at large-scale development plans as a measure of whether we are turning the economic corner, I think we can say we are doing better,” Smith said.

The Planning Commission in 2008 approved 30 large-scale plans. The number dropped to nine plans in 2009 and to eight in 2010.

“We started trending up last year with 13 approved plans. This year we have already approved 19 large-scale plans and we have several more that will probably be approved before the end of the year,” Smith said.

The revenue the city receives from building permits tumbled in 2009, rose in 2010 only to slide again in 2011.

Building permit revenue on commercial and single-family construction stands at $340,000 with nearly two months left in the year, according to figures from the city Inspection Department.

The city charges $78 per square foot of heated space for a building permit on a single-family home.

Commercial building permits are based on the cost of the building. The city uses a formula that sets the price of the permit. Additionally there is a surcharge fee on commercial buildings that goes to the state. The maximum surcharge is $1,000, according to inspection officials.

“We have more national retail and restaurant chains taking an interest in locating in Rogers, housing starts for new homes are up as is commercial development. I’m cautiously optimistic at this point,” Smith said.

“I’d say our economy is picking up,” Smith said.

Upcoming Events