Anchorage Daily News

PALMER -- While many property owners' renovations are giving downtown Palmer a face-lift, that may be a bit deceiving regarding construction overall.

At the City Council's meeting July 8, Sandra Garley, director of community development, gave the mayor, city manager and the council some grim news: The number of building permits issued so far this year is at a 10-year low.

Through June, only 50 permits had been issued to builders. That compares to a high of 80 for the same period in 2003.

Beyond being bad for builders, the slowdown has hurt the city's pocketbook.

The city charges for those permits, and the first half of this fiscal year has brought in $22,583 compared to the same time frame last year totalling $63,821.

And even though there weren't many permits granted in 1999, the value of the property being built was $14.5 million compared to this year's $2 million.

"It's a reflection of the economy at the state and federal level," Garley said Friday. "We've had few housing starts, and that's part of that low number. Palmer's always had peaks and valleys."

The story's similar in Wasilla.

"We're experiencing the same thing," city planner Jim Holycross, said Monday. "In June we had six permits, and this month we have two. Of course the month isn't over."

He said the Primrose Retirement Community has been a bright spot with its four duplexes, 32 assisted living units and 36 single-family homes. He said multiple-family units like duplexes are helping out, as well as additions to established businesses such as Fred Meyer and the Alaska Club.

Wasilla also has attracted some big-box-type stores, Sportsman's Warehouse among them.

That's where Garley thinks Palmer is hurting, in addition to the home construction slump.

"We're not getting the big stores," she said. "They're waiting for the economy to turn around."

Garley said bigger businesses are showing an interest in locating in the hub of government in the Valley but not this year. She said advance people have been stopping in to get information about building codes and other compliance data, but they're telling her they're waiting for better financial conditions.

With building in slow mode, those who supply lumber, paint, wiring and all the other stuff, are feeling it as well.

"It's less than before, but everybody's not doing as much business as last year," said Jason Crist, assistant manager at Spenard Builders Supply in Palmer.

"We had two or three good years there."

As for this cycle, "We'll have to wait 'til the end of the year to know for sure" how business turns out.

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