Building Permits Way Down

AVON PARK - The national economic disaster that was 2007 also whacked Highlands County's home building industry.

According to figures released by Building Official S.Y. Moseley's office, the value of building permits dropped 30 percent last year.

About twice as many single family homes were built two years ago, 1,156 in 2006 versus 563 building permits in 2007.

It's affecting contractors and their subcontractors, said County Commissioner Don Bates: "There are a lot of guys who are looking for work, who are ready to go to work, and they're out of work."

Because they're skilled tradesmen, some are taking lower wages than they were earning in good times, Bates said. Others are moving to other states which aren't affected by the home building slowdown.

"So they may not show up in the unemployment numbers, but they do in the economic numbers," Bates said.

Florida's seasonally adjusted unemployment rate was 4.3 percent in November 2007. The national unemployment rate was 4.7 percent.

Highlands County's rate was 5.1 percent. It was 3.8 percent in November 2006.

"I have a friend who just closed his concrete and block laying business and went north to take a job that he could not find here. He had been in business for several years," Darrel Johnston of Sebring wrote in a letter to the editor, "employing about 12 people, he is now out of business and having to change his life and his family's lives."

Last year, Ronnie Payne, the store manager of W&W Lumber Ace Hardware in Sebring, said he had laid off much of his staff while the building industry declined.

"I've got half of my fleet parked on Redi-Mix," said Fred Jahna jr. president of Jahna Concrete Inc. There are 38 mixers.

Only one full time and one part-time truck is delivering concrete blocks, Jahna said.

That's meant laying off a third of his workforce, now down to 63.

"Some of those truck drivers are going on the road to put in more hours," Jahna said. "They just can't get in enough hours here."

Real estate agents and construction industry watchers have blamed the county commissioners in part for the slowdown.

Bates said he will bring up impact fees in Tuesday's commission meeting. He's heard a suggestion that committee should consider the impact of impact fees.

"Certainly, that ought to be on the table," Bates said. "I don't think impact fees have much to do with it. But it is an emotional and psychological factor."

Jahna, also a member of the Industrial Development Authority, agreed, thinking that only low-income housing will be affected if impact fees are lowered.

Highland's building department also issues 28 other permits, for electrical and plumbing work, additions, in-ground pools, fire alarms and sprinklers. In 2006, 11,389 total permits were issued, last year, the total was down to 7,743.

One category is boathouses, docks and seawalls. There were 166 permits issued in 2007 versus 277 in 2006.

The Dock Doctor employed six workers in the summer of 2006, said owner J.D. Barrett.

"Now, I have none," said Barrett. He said he used to be retired, now he claims to be recessed, as in recession.

"My last job was four to five weeks ago, and it was a small job," Barrett said.