City report traces drop in building, home sales

Construction and real estate sales in Kalispell dropped significantly in 2008, according to an annual city government report.

Building permits, home construction, commercial construction, new lots and sold homes all declined last year.

The city's annual Construction, Subdivision and Annexation Report is available on the Internet at www.kalispell.com, City Planning Director Tom Jenz told the Kalispell City Council on Monday.

The report estimates that Kalispell's population now is about 20,600, compared to an estimated 20,298 on July 1, 2007, and 14,223 in 2000.

Geographically, Kalispell has more than doubled since 2000.

In 2000, the city covered 5.46 square miles. In 2008, Kalispell reached the 11.39-square-mile mark, which does not count Monday's annexation of 207 acres in Siderius Commons.

Kalispell grew by 570 acres in 2008 - mostly from the additions of the 485-acre Glacier Town Center site on the city's northern border and the 81-acre Gardner Investments commercial site on the south.

Those 570 acres compared to 1,117 acres annexed in 2007.

However, Kalispell's economy shrank as the boundaries grew.

The annual report says:

n Building permits dropped from 432 in 2007 to 272 in 2008. These permits cover new construction, additions and remodeling for homes and businesses.

n Building permits for new homes -including townhouses and apartments - dropped from 322 in 2007 to 186 in 2008. This continues a steady decline from a high of 480 permits in 2005. Actual single-family houses dipped from 146 in 2007 to 78 in 2008. The greatest number of new 2008 homes were built in the Three Mile Drive area.

n Commercial building permits nose-dived from 16 projects totaling 196,598 square feet in 2007 to three projects totaling 10,750 square feet in 2008. The three 2008 projects were expansions of the Flathead Health & Fitness Club and Eastside Brick, plus the construction of a new Sizzler's restaurant at Hutton Ranch Plaza.

However, a 186,000-square-foot Wal-Mart Supercenter is expected to begin construction at Hutton Ranch Plaza this year.

n Building permits for offices held at four each in 2007 and 2008. But the space dipped from 39,265 square feet in 2007 to 22,683 square feet in 2008.

n No industrial construction permits were issued in 2007 or 2008.

n Public and quasi-public construction dropped from seven projects totaling 78,098 square feet in 2007 to one 14,050-square-foot project in 2008. That one project is adding the third floor to the Earl Bennett Building.

n The total value of all construction shrank from $112.46 million in 2007 to $44.22 million in 2008.

n Preliminary plats are on file - awaiting requests for final plats - for 22 subdivisions totaling 860 acres with 1,645 homes, including 1,185 single-family houses.

n Home sales in Flathead County dropped from 1,357 in 2007 to 984 in 2008.

The median home prices were $245,000 in 2006, $250,000 in 2007 and $239,000 in 2008.

n Home sales in Kalispell dropped from 355 in 2007 to 275 in 2008. The median price also dipped from $190,000 in 2007 to $188,500 in 2008.

n Home sales in Kalispell and within 3.5 miles of the city went from 583 in 2007 to 444 in 2008. The median price dropped from $207,000 to $199,450.

Reporter John Stang may be reached at 758-4429 or by e-mail at jstang@dailyinterlake.com