Building returns to normal in Weld, Larimer counties

Building returns to normal in Weld, Larimer counties

Susan de Castro McCann

Business Report Correspondent
It’s been a hectic few years for the building industry in Northern Colorado, but the home-building industry appears to be poised to catch its breath.Starting in 1993, Northern Colorado saw an explosion in the building industry due to growth from people moving to Colorado from other states for better jobs and a lower cost of living.
That surge in growth lasted through 1996, but now there are signs that housing construction has peaked and is beginning to drop or — as some builders say —return to normal.
"It (construction) is nothing like it was in 1995,˜˜ said Aletha Langham-Godwin, owner of Mark Twain Homes in Fort Collins and past president of the Home Builders Association of Northern Colorado. "It has slowed to a manageable rate.˜˜
Mark Twain Homes specializes in maintenance-free buildings and attracts many retired people who are moving closer to their children. The company has building projects in Thornton, Littleton, Loveland, Greeley and other sites along the Front Range and builds homes in the $140,000 to $160,000 range.
"Things are just leveling off,˜˜ Langham-Godwin said. "You can˜t get building permits in Boulder, Lafayette or Louisville, and that has pushed the growth out of those cities to the northern counties.˜˜
Bill Gurski, manager at Kem Homes in Fort Collins, agrees.
"Construction is still good, but we have seen a little softening starting at the end of 1996. But now it (construction) is kind of normal," he said. Gurski is current president of the Home Builders Association of Northern Colorado.
"Houses may sit on the market a little longer now,˜˜ he said. "It sits until it is done, whereas before it was sold before it was finished.˜˜
About 50 percent of Kem Homes are presold before building, and about 50 percent are built without a buyer in mind. Houses range from $150,000 to the low $200,000s, and some custom homes sell in the low $300,000s. Kem builds about 70 homes a year in Fort Collins, Loveland, Windsor and Larimer County.
Larimer County building-permit applications have been gradually decreasing over the last few years. In 1996, 691 building permits were issued, which includes both residential and commercial. In 1995, 739 permits were issued, and in 1994, 839 permits were issued.
"Total permits peaked in 1994,˜˜ said Richael Michels, planner with Larimer County. "In 1997, 496 total building permits were issued through Oct. 31, so we might be real close to last year with the number of permits issued. I can˜t draw any conclusions about the number of building permits issued from year to year, because there are many factors which can lead to the drop in permits.˜˜
Weld County, at least in select areas, is still experiencing a boom in growth. For a five-mile radius around the intersection of Interstate 25 and Colorado Highway 119, the area known as Del Camino is still growing by leaps and bounds, along with the area in and around Windsor.
"We have hired two new building inspectors this year just to keep up with all the building going on,˜˜ said Kerri Keithley, planner with the Weld County planning department. "Southwest Weld and Windsor are where all the growth is occurring. I am now processing a 1,600-lot subdivision in that area for mixed use that will include housing, commercial and modular housing. It is proposed for a location at Weld County Road 1 and Weld County Road 20 1/2 (in Del Camino) called Sherwood Village.˜˜
Weld County encourages annexations because it would prefer that the growth stay in the incorporated areas where services can be provided and agricultural land can be preserved. Keithley said that in the last six months, there have been eight annexations by small towns in the area.
"Firestone has had two annexations,˜˜ she said. "Evans and Milliken are looking at annexing. These towns want to increase their tax base. We want to encourage good annexations, and we don˜t want to see flagpole annexations.˜˜
Windsor has also experienced a huge growth boom and has doubled its size with annexations. Windsor now extends into both Weld and Larimer counties.
"A lot of people are moving from Fort Collins to Windsor,˜˜ Keithley said. "The prices for housing are comparable, but the appeal is the country lifestyle and the small-town atmosphere.˜˜
There is some concern in Weld County that a lot of prime farm land is being eaten up by growth.
"We hope that growth will slow down, because we want to preserve the agricultural areas,˜˜ Keithley said. "It is disheartening to see so much of the valuable farmland going into development. Once it˜s gone, you can˜t get it back.˜˜
The total number of building projects in Weld County through September last year ,was 1,333 and through the same period this year was 1,284 total building projects. So there is some indication that permits are down slightly countywide. But Keithley said that so far in 1997, the planning department in Weld has reviewed 137 more plans than last year for the same period. So the number of plans reviewed is up by 37 percent.
And not all builders see the industry dropping off.
"We are ahead of where we were last year and the year before,˜˜ said Scott Bray, owner and president of Glen Cos., a residential construction company in Loveland. "Activities for us have been higher than last year by 20 percent, and 1995 was a great year.˜˜
Bray has two developments, Emerald Glen with 320 units and Mariana Glen with 210 units, under construction in the Loveland area. But he admitted that in 1996, he did not have many lots ready for building, and that slowed the company down.
"Home builders are still saying that they are really busy, and we all have trouble getting our subs (subcontractors) in on time because they are so busy,˜˜ Bray said. "We are all waiting for the other shoe to drop, but so far it hasn˜t happened yet.˜˜

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