City issued $15.08 million

in building permits in 2000

Valuation up due to MTS, Microtel construction

By CHRIS VETTER

Journal Staff Writer

NEW ULM -- The number of building permits issued in town was down in 2000, but the overall valuation of permits climbed.

For the year, the city issued 512 building permits, compared with 666 in 1999 and 671 in 1998.

However, the value of the permits for 2000 was $15.08 million. The city collected $107,000 in permit fees, which is placed in the general fund.

In 1999, the city collected $84,100 in permit fees on $10.65 million of new construction.

Al Gag, city building inspector, said he was not surprised to see the number of building permits fall to 500. He said the overall number of permits has been inflated over the past three years due to recent wind storms. He said several homeowners replaced roofs or re-shingled in the past couple of years.

Typically, the city has issued 500 building permits annually, Gag said. In 1995 and 1996, the city issued 572 and 490 permits, respectively.

Valuation climbed this year largely due to a handful of projects. MTS Automation is building a $3 million plant, while a new Microtel hotel adds $1 million to the total, Gag noted.

"Value-wise, it was a good year, particularly in industrial," Gag said. "But it was a slow year in residential. We didn't build a lot of houses this year or the past couple of years."

In 2000, only 16 new single family houses were constructed in town. House construction has fallen each year from 1995 (30 new homes) through 1999 (18 new homes).

Gag expects that trend to end this year, as several new houses are being planned in the North Highland corridor.

In a typical year, the city will receive permits totally $15 million-$17 million, and New Ulm fell within that range this year, Gag added.

Of the total $15.08 million valuation, industrial and commercial construction was $10.3 million, or two-thirds of the year total. There were 390 home repairs totalling $2.2 million, six houses demolished, and 51 new or repaired garages, totalling $534,000.

Gag predicts that 2001 will see a marked rise in both housing and commercial construction.