Memorandum

City of Lawrence

Planning & Development Services

 

TO:

David L. Corliss, City Manager

 

FROM:

Barry Walthall, Building Codes Manager

 

CC:

Scott McCullough, Planning & Development Services Director

 

Date:

April 8, 2013

 

RE:

Building Permit Trends

 

The purpose of this report is to provide information concerning trends for building permits issued compared to previous years and to other area jurisdictions.  Staff surveyed the other area permit issuing jurisdictions within Douglas County, including Douglas County, Eudora, and Baldwin City as well as Topeka, De Soto, Olathe, Salina, Ottawa, Emporia, and Lenexa.

 

Total Number of Permits

Permit activity in Lawrence has trended up the past three years following a twenty year low of 1,998 permits issued in 2009; 2,377 permits were issued in 2012, the most since 2,398 permits were issued in 2007.  The line graph below shows the trend for permits issued in Lawrence since 1990:

 

 

The number of permits issued in Lawrence in 2012 increased 9% from 2011, from 2,172 to 2,377.  Lenexa reported the largest increase in permit activity (40%), followed by Olathe (30%), Topeka (14%), Lawrence (9%), and Douglas County (5%).  The other area jurisdictions surveyed reported decreases in permit activity in 2011, ranging from 1% to 42%.

 

 

The comparison of 2012 to the 5-year average number of permits issued is another tool to compare permit activity.  The average number of permits issued in Lawrence over the past five years (2008 through 2012, inclusive) was 2,196; the 2,377 permits issued in 2012 were 8% above the average for this time period.

 

 

Total Permit Valuation

The total value of construction projects decreased by 13% in Lawrence, $100.6M in 2012 compared to $115.7M in 2010.  The total valuation of construction has exceeded $100M every year since 1993, except 1995 and 2009.

 

 

The top ten projects in permit value for 2012 accounted for $30,269,203 or 30% of the total value of construction.  In 2011 the top ten projects in permit value accounted for $63,004,325, or 54% of the total value of permits issued.  The top ten projects in 2012 were:

 

Address

Project Description

Project Value

1

204 Eisenhower Dr

Westfield Place Apartments

8,325,652

2

707 Vermont St

Public Parking Garage

4,808,051

3

4660 Bauer Farm Dr

Lawrence Community Theatre

4,000,000

4

1043 Indiana St

Varsity House Apartments

3,986,500

5

727 N Iowa St

Del Monte Addition

1,900,000

6

2300 W 29th Terrace

Briggs Dodge Remodel

1,645,000

7

325 Maine St

LMH North Wing remodel

1,500,000

8

4601 Clinton Pkwy

Raintree Montessori School Addition

1,400,000

9

3900 W 24th Pl

Hy-Vee C Store

1,400,000

10

1545 N 3rd St

Advantage Metal Recycling

1,304,000

 

Valuation for public projects was $8,971,027, compared to $7,968,156 in 2011.  The project to construct a new public parking garage at 707 Vermont Street accounted for $4,808,051, or 53% of the value of public projects, and improvements at Lawrence Memorial Hospital at 325 Maine Street accounted for another $2,673,900, or 30%.  Annual statistics for public projects for which tracking began in 2008 are provided in the following table:

 

Year

Public Projects Valuation

Number of Permits

2008

$10,642,761

9

2009

$7,010,333

46

2010

$16,857,156

17

2011

$7,968,156

24

2012

$8,971,027

31

 

Permit Valuation

Five of the other area permit agencies surveyed reported increases in valuation for 2012, with Lenexa (+169%) and Eudora (+149%) reporting increases in permit valuation of more than twice their 2011 totals.  Baldwin City reported the largest percentage decrease, -89%.

 

 

The average annual valuation of permits issued over the past five years for Lawrence was $108M.  Permit valuation for 2012, $100.6M, was 7% below average when compared to the five year period from 2008 through 2012.  Only three of the surveyed jurisdictions reported permit valuation in 2012 that exceeded the average for the previous five-year period, Lenexa (+53%), Salina (+33%), and Olathe (+9%).  Unusually large projects in Douglas County (Westar Energy project valued at $339M in 2010), and Emporia (Hills Pet Food Plant in 2009 valued at $89.6M) influence the average annual permit valuation for those permit agencies.

 

 

New Residential Permits

The number of permits issued for new one- and two-family dwellings increased in 2012, from 99 permits issued in 2011 to 126 in 2012, an increase of 27%.  The only jurisdictions reporting decreases in one- and two-family dwelling permit activity were Baldwin City (-67%), Ottawa (-67%), De Soto (-47%), and Eudora (-20%).  Lenexa reported the highest percent increase (+64%).

 

 

The percent difference for 2012 compared to the five-year average (2008 through 2012) for number of permits issued for one- and two-family dwellings was +1%, with an average of 124 permits issued the last five years compared to 126 permits in 2012.  Lenexa (+82%) and Olathe (+29%) had the highest percentage of permits issued above their five-year averages; Ottawa (-87%), Baldwin City (-72%), and Eudora (-49%) were the lowest.

 

 

Despite the increase in new one- and two-family dwellings, the total number of dwelling units constructed in Lawrence in 2012 decreased 21% from 2011, from 466 units to 313.

 

The number of dwelling units constructed in Lawrence in 2012 was 33% lower than the average number of units constructed over the last five years, with 313 units constructed in 2012 compared to the 432 units averaged for the years 2008 through 2012.

 

 

Historically, more one- and two-family dwelling units are constructed annually than multi-family units, however 2012 was the sixth consecutive year in which the number of multi-family dwelling units exceeded one- and two-family units.

 

New Commercial Permits

There were 12 permits for new commercial projects in 2012, compared to 15 in 2011; which is a decrease of 20%, but the second highest annual number of permits issued over the past five years.

 

 

Lenexa reported an increase of 1,033% in the number of permits issued for new commercial  projects, 3 permits in 2011 to 34 in 2012.  The increase is largely attributed to 27 permits issued for apartment buildings and associated accessory buildings, which are not included in commercial permit statistics for the City of Lawrence.  The other commercial permits included one apartment clubhouse/office and six warehouse projects.  Discounting the apartment projects Lenexa’s increase in commercial permits issued for 2012 was 133%.  Emporia reported the largest decrease in new commercial projects (-82%, from 11 to 2), followed by Baldwin City (-47%, from 17 to 9).

 

Remodel/Addition Permits

For the third consecutive year there was a record number of commercial remodel permits issued in Lawrence; 180 in 2012, an 8% increase over the 165 permits issued in 2011, and a 22% increase over the 147 permits issued in 2010.  The trend for commercial building addition projects remained steady in 2012; 7 commercial addition projects each in 2012 and 2011.

 

 

The number of residential remodel permits increased 7% from 2011, from 151 to 163.  The number of residential addition permits increased 22% from 25 to 32.