GOSHEN —
Construction in Goshen and Elkhart County remained bleak in 2011, but Mark Brinson says he has a hunch that things will improve in 2012.
Brinson, the director of community development for the city of Goshen, said his insight comes from conversations he has every other week when he meets with representatives of the building, planning and engineering departments.
“Based on the discussions we’re having with builders and developers, we’re expecting a large uptick in new permits,” Brinson said. “It will be significantly more than we’ve seen in the past two years.”
Most of the talk involves industrial and commercial building, he said.
Meanwhile, a report from the City of Goshen conveys statistically what most of us already know — economic activity in terms of construction in 2011 was abysmal and was in some ways slightly worse than 2010.
The city issued just 15 building permits for new home construction in 2011, compared to 24 in 2010.
Non-residential construction, which ranges from recreational buildings to commercial buildings, was even slower. In 2011, only nine permits were issued. In 2010, the department issued 17 permits.
Figures from Elkhart County Planning and Development were generally consistent with Goshen’s.
The county department recorded 130 permits for new residential, which was six less than the previous year. In comparison, the county recorded 505 permits for new residential in 2007.
The county issued 22 permits for new industrial or commercial construction, more than twice as many in 2010 when the office issues just nine.
Despite the fluctuations, Chris Godlewski, Elkhart County’s plan director for planning and development, said he considers the trend to be “flat.”
Godlewski said he’s also hearing a sense of optimism.
“My hunch is it will be slightly higher than last year,” he said. “If you look at national or local sources, everything indicates it will be better.”
Adlai Schrock, owner of Schrock Homes Inc., said his business has seen gradual improvement in recent years and believes 2012 will be better. Buyers appear more confident, but remain cautious, he said.
Schrock Homes began as a construction company in 1975. Ten years later, they expanded to include real estate development.
While the recession in 1984 was difficult, he says the recent economic downturn — much of which involved the housing industry — has been “the toughest, the hardest and the longest” his company has ever seen.
But he said he’s hearing more optimism.
“People are more positive looking forward,” Schrock said. “They’re seeing it as a great window to actually build their dream home because interest rates are so low.”
Vacant buildings
As for existing structures, Brinson said one way the city has worked to pare down the number of vacant industrial buildings in the city was to offer tax abatement.
In May of 2010, the city began offering tax abatement within the industrial corridor on the city’s south side specifically for property with vacant buildings. The plan provides 100 percent abatement for the first year and 50 percent for the second year for owners who can actively begin using the buildings.
In less than two years, property owners representing eight vacant buildings have taken advantage of the program.
“Anecdotally, what we heard from commercial real estate brokers is that that was a very effective marketing tool for them,” Brinson said.
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