Bettendorf sees jump in growth

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By Wayne Ma | Thursday, July 27, 2006 9:50 AM CDT | () comments

John Schultz/QUAD-CITY TIMES Jason Birks, of DeWitt, Iowa, and employed with Nagle Builders out of Long Grove, uses a nail gun to secure two walls together while building a house at 5905 Hope View Court in Bettendorf.

Due to sharp economic growth, the value of building permits issued in Bettendorf this year could well exceed the $72 million record set in 2002, city officials say.

By June, the value of permits issued in the first six months of 2006 was more than $67 million, which is more than the amount for all of 2005, according to city records.

If the current pace keeps up, the total value of permits could exceed $100 million this year, community development director Bill Connors said.

This is the third straight year the total value of permits issued in the city has hovered close to $70 million, mostly because of residential development.

Building permits are a leading indicator of economic growth, according to the U.S. Census Bureau and the Department of Housing and Urban Development. And new construction is seen as one of the first sectors to rise or fall depending upon economic conditions.

The rate of development has the potential to increase the city’s overall tax base, but because of the Iowa state tax rollback, Bettendorf saw revenue decrease last year even though new construction grew, Connors said.

Meanwhile, the appeal of nearby amenities and new features could be a reason for the sharp rise in demand for newly built homes, said David Horan, a real estate agent with Ruhl & Ruhl.

Horan, who has sold properties in Bettendorf for the past five years, said homebuyers are more interested these days in features such as living around a golf course. As a result, he has had success selling homes near such places as the Pebble Creek Golf Course — located between LeClaire, Iowa, and Bettendorf.

“People are watching (Home and Garden Television) and they want every gizmo and gadget,” he added. “People are more aware of the latest, greatest products.”

Another indication of demand for new homes is that existing homeowners are having a tougher time selling their houses this summer, he said.

Meanwhile, the total value of building permits could be partially attributed to the increased cost of construction materials, he said.

“New construction costs are going through the roof,” he added.

Although it is no surprise that residential development is Bettendorf’s bread and butter, the sheer number of permits is on track to be the second-highest in 15 years, said Deb Mildt, the city permit technician.

There were 103 permits issued for new residential homes from January to June 30, compared with 85 for that same period last year. If the pace stays the same, the final number will exceed last year’s total of 194. The record, though, was set in 1991 with 294 permits.

“The numbers in the past two years have been astronomical for us,” Mildt said. “This year has just continually gotten better.”

Wayne Ma can be contacted at (563) 383-2360 or wma@qctimes.com.