Building values up in Park Rapids
By Anna Erickson
Park Rapids building values are up significantly from previous years.
Park Rapids Building Inspector Ronald Dick said that several large projects have boosted the total valuation in the first half of 2013. He presented a mid-year building report to the Park Rapids City Council this week.
In 2012, 87 permits were issued through June 30 with a total building valuation of $2,650,300. In 2013, 66 permits were issued with a total building valuation of $5,308,600.
“Although there were 21 more permits issued through June in 2012, the average project valuation increased by 164 percent from $30,460 to $80,430,” Dick said in his report. The Park Plaza office (DaVita Dialysis), Pleasant Court Apartments and Thielen Motors are large projects underway this year.
Other projects in the city have included re-roofs, small residential and commercial remodeling and a small commercial storage building, Dick said.
On a national level, the activities of Congress and miscellaneous regulatory agencies are increasingly difficult to predict, he said. On the state level, the actions of the legislature have set the revenue sharing guidelines for the next fiscal year, so plans can be made for the use of public funds. At the local level, the trickle down effect from the national and state political decisions will still have an effect on the decision making of local citizens and businesses, the report indicated.
Private financing through banks and credit unions generally appears available for mortgage lending, Dick noted. There appears to be an effort at the federal level to loosen some regulations to make loans more available. Conversely, recent action by the federal bank may start to drive up interest rates, he said.
Dick’s projection for the next six months are estimates at best, but he said the building shell for Park Plaza is on schedule to be finished near the end of July and the DaVita Dialysis clinic will be finished near the end of August.
Lamb Weston indicated they will add a second floor to a portion of the office wing as Phase I of a two phase office expansion, Dick added. Phase II is tentatively scheduled for 2014.
Hubbard County will be starting a major remodel of the Courthouse that is expected to start later this summer. Heritage Living Center is also considering a major remodel to their facility, which could begin in 2014, Dick said.
Single family construction doesn’t appear to be stronger this year, but two developers have each indicated they may start spec homes later this summer, he said.
“The value of construction activity in Park Rapids during the remainder of this year will likely be significantly higher than last year,” Dick said. “I would expect that the total number of permits would be somewhat lower than last year based on action so far this year.”