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PO Box 1212 Tampa, FL 33601 Pinellas Updated January 2006
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Building Beyond $1,000,000,000.00 TAMPA - -- Builders have been busier than ever this year in the city.
More than $1 billion -- a record -- in residential and commercial projects were cleared for construction during the city's fiscal year that ended Sept. 30, a report released Monday says. The numbers, which include only projects within the city limits, represent a 91 percent jump from 2004, according to the city of Tampa.
The huge increase is proof that some of the large-scale projects announced in recent years are finally moving forward, said Cynthia Miller, the city's director of Business and Housing Development.
"When you get to the point of pulling permits, you're moving dirt around and starting construction," Miller said. "It doesn't mean the project will definitely happen, but it's a good sign."
Miller said the big numbers for the year were driven largely by condominium projects in downtown Tampa and the Channel District, as well as increased residential construction in the New Tampa area.
Projects such as the $52.2 million Trump Tower Tampa and the $31.6 million Skypoint condominiums, both issued building permits this year, contributed to the billion-dollar building boom, she said.
The figure reflects $689 million in commercial and $356 million in residential construction. The commercial numbers are higher in part because the city considers condominiums commercial projects, said Nick D'Andrea, the city's manager of commercial development services.
"The condo boom has a lot to do with this, no doubt," he said. "The developers felt the market was right and that it was a good time to start pulling permits."
In compiling the year-end report, the city included only so-called "hard construction costs," such as foundation work and materials. Such figures are typically lower than the total construction costs reported by builders, namely because the city uses a 1988 cost index to calculate the cost per square footage.
Miller said this is done so that other variables, such as the recent spike in construction materials, don't skew the numbers.
Randy Simmons, chairman of Tampa-based R.R. Simmons Construction Corp., points to job growth and relatively low interest rates as reasons for the surge in building permits. Also, he said, some builders sought permits early this year to beat a new city building code that took effect in October.
"Suddenly the faucet turned back on for construction," Simmons said.
Simmons' company is building a training center and alumni center at the University of South Florida, which were issued permits this year. His list of city projects planned for next year, he said, is growing.
The $1 billion figure is impressive but doesn't reflect the full effect the projects will have on the city, said Tony Polito, director of the Tampa and Sarasota division of MetroStudy, which tracks construction trends.
Because construction costs have risen, new projects will likely cost more to build than the city estimated, he said.
Plus, the projects will spur more job growth and add to the city's property tax revenue.
"Those projects may be 12 to 36 months away from being finished and on the tax rolls," Polito said. "The full benefit won't be felt until then."
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