Housing construction in Roseville dropped during the first quarter of 2008, but nonresidential development overall outpaced activity levels for the same period last year, city staff members told City Council members last week.
In December, the council approved increases for two developer fees, established a new animal control facility fee and reinstated Roseville Electric's "backbone recovery" fee to pay for rising construction costs and rapid growth.
The North State Building Industry Association and Roseville Chamber of Commerce representatives raised concerns about the timing of the fees and asked that they be delayed until the economy picks up. Instead, council members asked staff members to prepare a new report on the city's development activity before the fees take effect July 1.
Community Development Manager Chris Robles told the council that during the first quarter of 2007, the city had issued 248 single-family home permits, compared with 102 for the same quarter in 2008. Single-family occupancy levels, however, are higher.
Robles also said that many builders pulled more permits before Jan. 1 to avoid code changes, resulting in an increase in final inspections during the first quarter of 2008.
In addition, nonresidential development is up this year, compared with last year's, Robles said.
During the first quarter of 2007, the city issued building permits for 442,871 square feet of business professional, commercial and industrial space.
Although no permits were issued for business and professional space during this year's first quarter, the city issued permits for 532,575 square feet of commercial and industrial space.
"While the comparisons look strong, staff cautions drawing any significant conclusions due to the short duration we've sampled," Robles said.
Another 700,000 to 800,000 square feet of commercial space will be added this year with the expansion of the Galleria at Roseville mall, Fountains shopping center and two new hotels.
Robles also said the city's developer fees remain competitive in the region and that home builders have responded to a new fee-deferral program for single-family residential construction.
The new program, which allows builders to delay paying city-controlled fees until the final building inspection or close of escrow, went into effect May 1. Since then, the city has received 84 applications for fee deferrals.
Call The Bee's Jennifer K. Morita, (916) 773-7388.
