Yankton’s Construction Value Plummets To Lowest Since 1998 - Yankton Press & Dakotan: Community

Yankton’s Construction Value Plummets To Lowest Since 1998

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Posted: Tuesday, January 14, 2014 10:35 pm | Updated: 10:35 pm, Wed Jan 15, 2014.

The estimated value of building permits issued by the City of Yankton in 2013 were at a 15-year low. Meanwhile, the value of those issued by Yankton County continued a multi-year downward slide.

The total estimated value of the 321 permits issued by the city came in at $12.8 million. In 2012, the estimated value of permits was just more than $30 million.

The 2013 figure was the lowest the city has recorded since 1998 when the estimated value of the permits was $11.2 million.

“I think part of the reason (for the sharp decline) was, we started some big projects toward the end of 2012,” said Joe Morrow, Yankton’s building official. “One of them was the Northern Lights project at Avera Sacred Heart Hospital.

“The other thing that kind of grinded to a halt in 2013 was residential shingling,” he added. “We had some hail storm damage on two different occasions in the last several years that led to a lot of home renovations.”

The value of permits issued for residential additions, remodels, garages and shingling plummeted from $8.8 million in 2012 to $1.9 million in 2013.

The value of new commercial building was up in 2013. It rose from $1.9 million to $2.6 million. At the same time, commercial additions and remodels fell from $14.9 million in 2012 to $4.1 million. In 2012, the Northern Lights project accounted for $11.7 million of the value under commercial additions and remodels.

Among the larger projects permitted in 2013 were a Mount Marty College cafeteria remodel, the AutoZone retail tenant finish, the Hy-Vee customer service area remodel, the GNC retail tenant finish, the South Dakota Magazine addition, the Mount Marty College science complex renovation, a 59-unit motel, the Yankton County EMT storage building, the Yogurt City tenant finish, the Shur-Co office renovation, the Avera Sacred Heart dental office finish and the Yankton Area Progressive Growth spec building.

One bright spot in the annual building permit report was the number of single-family houses built, according to Morrow.

“We built 20 single-family homes during 2013 versus 12 in 2012,” he said.

It’s the highest number of single-family homes built since 2009, when 28 homes were built.

The 10-year average for the number of single-family homes built annually is 31.2.

The average value of the homes permitted in 2013 was $186,106.

Meanwhile, the total estimated value of the 135 permits issued by the county in 2013 came in at $8.8 million. It is a 14 percent decline from 2012, when the estimated value of permits was just more than $10.3 million.

“I think the number one cause was a lack of large projects,” Planning and Zoning Administrator Patrick Garrity said. “This was probably the first year in quite a while that we didn’t have a single large project.”

The 2013 valuation is the lowest since 2009, when the value of permits issued was estimated at $7.7 million.

“We’ve had worse and we’ve had better,” Garrity said of the year.

Just as with the city, single-family home construction in the county inched upward. A total of 28 single-family homes were built — the highest since 2007. In 2012, there were 26 such structures constructed.

“I think we’re going to continue to see single-family homes being built (at a similar pace),” Garrity said. “I think we’re going to see more of a shift toward what we call vacation homes, where people come in and do a $90,000-$130,000 home.”

As work is done on the Highway 52 corridor plan, he said groundwork is being done for such developments in the lake area.

“It looks like we’re going to see more and more multi-family units, too,” Garrity added.

While construction of grain bins slowed in 2013, he said the value of ag structures built was still up 8 percent over the previous year.

“The ag economy remains strong,” Garrity stated.

You can follow Nathan Johnson on Twitter at twitter.com/AnInlandVoyage. Discuss this story at www.yankton.net/.

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