Moses Lake sees building boom

by Brad W. Gary<br>Herald Staff Writer
| January 12, 2006 8:00 PM

Building permits up 16 percent, residential permits 47 percent

MOSES LAKE — The hammers are pounding in Moses Lake, and show no sign of slowing down following higher than normal 2005 building numbers in the city.

A combination of residential building permit increases and discussion of increased industrial development factor in the surge, in which the estimated value of city building permits in 2005 leapt nearly $11 million above 2004.

"I guess it just reflects an upcoming strength in our economy here," Moses Lake City Manager Joe Gavinski said,

The city saw quite an increase in 2005, and Gavinski said the interest remains at the start of the new year in single family housing.

In 2005, the city limits saw a total of 206 residential building permits, up nearly 47 percent from 110 residential building permits in 2004. Overall building permits increased approximately 16 percent from 476 in 2004 to 568 in 2005.

The overall value of those permits has also risen by over $10 million from year to year, with an estimated building permit valuation of approximately $35 million listed in 2005 compared to close to $25 million in 2004.

"All of that translates into more jobs and to additional projects," Gavinski said of development, noting that a few city departments could see much-needed funding if the trend continues.

One of the driving forces behind such development, Gavinski said, has been industrial development interest in projects like Solar Grade Silicon and Yahoo!

The city's population has increased in the last few years, and as that population increase continues he predicted commercial and retail will follow. The city points to retail expansion possibilities surrounding sectors like Yonezawa Boulevard and Central Drive.

The boom leaves fewer lots available in the city's boundaries for development, but officials also point to a handful of annexation requests that could increase those boundaries.

And while the national market may see a burst in the real estate bubble, Gavinski said local development may buck that trend.

"Construction costs are going to determine what new buildings are going to run you," Gavinski said. "If new construction is more expensive, it's going to make what exists more valuable also."

The costs of construction seem to also be on the rise, Moses Lake Community Development Director Gilbert Alvarado said, meaning the price range of those homes being built is pushing up toward the $150,000 range from $100,000.

In terms of single family construction, Alvarado said, 2005 was higher than normal. Alvarado pointed to a considerable amount of subdividing in the city as well, which could lead to additional construction in future years.

Rich Engelmann feels he is in the prime location as a real estate agent, and said a recent building boom has impacted the whole of Grant County. Home prices are sliding up, but at not nearly the same rate as the western half of the state, he said. Engelmann is the outgoing president of the Moses Lake/Othello Association of Realtors, and said he is looking for the same steady boom in 2006.

"We have the weather, we have the prices and people are looking for something that's not so hectic," Engelmann said. "And we have the recreation."