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Housing starts lag in Geauga County
(by Joan Demirjian - December 03, 2008)
Housing starts lag in Geauga County
By JOAN DEMIRJIAN
Activity definitely has slowed for the Geauga County Building Department with the lagging economy, but there's still enough business to keep busy, according to department head Michael Mihalisin.
While new housing starts have declined from previous years, "commercial work is still active," Mr. Mihalisin said. "We're busier than I thought we would be."
In Bainbridge, the South Franklin Circle retirement development between South Franklin Street and Chagrin Road is in full swing. The building department has a satellite office at Bainbridge Town Hall, with most of its attention centered on South Franklin Circle.
"Most of the homes in the county being built are west of Route 44," Mr. Mihalisin said, noting that the Canyon Woods subdivision in Bainbridge added several new houses in 2008.
In comparing housing starts in the past few years, he said his office has issued 120 new housing permits countywide so far in 2008, compared to 186 permits issued for 2007, 256 in 2006, 360 in 2005 and 432 in 2004. Some higher numbers date back to 1999, when 562 permits were issued for new houses, and 1996, when 557 were issued.
The department issues building permits throughout Geauga County, except in South Russell Village, which has its own building department.
Building permits provide income for the county building department. Permits for new houses average $300 to $400. The department also issues permits for remodeling and additions, which provide additional income.
"We have enough work to keep us busy," Mr. Mihalisin said.
Bainbridge Zoning Inspector Michael Joyce said home starts are "way down in the township. It's half of last year and slightly down from the previous year, he said.
"When the economy is slow, fewer homes are built, and the more modifications of houses take place," Mr. Joyce said.
In 2008 so far, there were 20 housing starts in Bainbridge. In 2007, there were 31, and in 2006, there were 35 starts, Mr. Joyce said. "We're down about 35 percent of last year and down 43 percent of 2006."
When new-housing activity slows, there is usually an increase in additions and remodeling, he said.
The South Franklin Circle development of over 300 units was given approval at one time, prior to when Mr. Joyce took over the position in Bainbridge. It was never recorded as individual housing starts, he said.
Russell Township does not usually have a lot of new houses, and there has been a decline, Zoning Inspector Richard Machnics said. "Several new developments have not been completed."
Assistant Zoning Inspector Diana Steffan said four permits were issued for new houses in Russell this year, compared to five in 2006 and 2007 and 13 in 2005. In 2008, the office issued 54 permits for garages, decks, pools and additions, she said. There are six new subdivisions in the township, but not much activity is taking place, she said.
Auburn Zoning Inspector Frank Kitko said the township issued 23 permits for new houses in 2008. "A couple of years ago, it was 100 or more in a year. It's definitely a major slowdown, and it's affecting everyone," he said.
There are 10 subdivisions in Auburn where activity has slowed, he said.
As a contractor doing concrete work for several builders, he has seen the slowdown firsthand, Mr. Kitko said. "And this is the time of year when the trades need the work."
In South Russell, only two new houses were built in 2008, and one of those replaced a burned-out house, according to the building department. In 2007 and 2006, three houses were built, and in 2005, five houses were started.
Geauga County Planning Director David Dietrich said there is very little housing activity. "The prognosis for 2009 is even worse," he said.
"In Bainbridge, Canyon Lakes subdivision continues in some phases. There is no activity in Russell and Chester," Mr. Dietrich said.
"It affects trades, engineering, construction and design," he said. "And 2009 is going to be difficult for new development activity. It's going to be a difficult years from the standpoint of the economy," he said.
"We have little in the pipeline for new development." There is a good inventory of land and lots in the county to develop, according to Mr. Dietrich, but the outlook for new subdivision activity in 2009 is not optimistic.
In 2010, there might be light activity, but some are even pessimistic about that, Mr. Dietrich said.
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