Andover is well ahead of last year’s pace for new home building permits.
City Administrator Jim Dickinson told the Andover City Council Dec. 4 that 75 new housing permits have been approved to date in 2012.
There were 58 permits issued in 2011, according to Community Development Director David Carlberg.
Dickinson said that the 75 new home building permits do not even count the 70 new units being constructed in the three-story Arbor Oaks senior living facility, which include a mix of one and two-bedroom assisted living units, studio memory care units and one and two bedroom independent care units.
This 74,569 square-foot facility is currently under construction at the southwest corner of Hanson Boulevard and 155th Avenue N.W. and is contractually supposed to be “substantially completed” by Dec. 31, 2013, according to the contract between the Andover Economic Development Authority (EDA) and Arbor Oaks, LLC.
“We’re growing and we’re going to continue to grow,” Dickinson said.
Carlberg said the city is budgeting for 35 new home building permits in 2013.
When asked why revenue projections for permits are not more than estimated for the 2013 budget even though the revenue came in much better than projected in 2012, Dickinson said, “We hope for a good year in 2013, but we budget the revenues conservatively. We don’t want to over-budget the revenues, commit to expenditures and then not have the revenue stream.”
The 75 new residential building permits in 2012 are similar to those in 2010 when 71 permits were issued, according to city records. There were 49 permits issued in 2008 and 47 in 2009.
However, Andover once issued over 200 building permits each year in four out of five years between 2001 and 2005 with the peak coming in 2001 with 285 building permits issued.
Capstone development going well
On the same day he shared this news, Dickinson and Carlberg informed the council that Ramsey-builder Capstone Homes is ahead of schedule on purchasing lots from the Andover EDA in the Parkside at Andover Station North development.
The two parties had reached an agreement in late April that required Capstone to initially buy two residential lots in this development by May 1 and then buy another lot within 120 days and then one lot every 45 days until all 35 lots were bought from the EDA.
According to Dickinson, Capstone Homes and the EDA closed on the sale of a seventh lot Nov. 30.
Carlberg said the agreement reached last spring would have only required Capstone to buy five properties by the end of December.
“They are well ahead of schedule,” Carlberg said.
Dickinson previously said if Capstone purchases all lots according to the terms of the agreement, the city would receive approximately $1,221,000. The price for the first 10 lots is $32,000 per lot, according to Dickinson, and then the price escalates. He said the average price per lot would ultimately be about $35,000.
Eric Hagen is at email@example.com