2009 permits drop sharply

A weak year of growth in Anderson's commercial sector added weight to the significant drop in year-end building permit valuation totals in 2009, city records show. With 2009 permit totals at $5,576,804.85, the city felt an $11.7 million drop in valuations from 2008 to 2009. The city tracks building permit valuations as an indication of upcoming shifts in property tax revenues, City of Anderson Planning Director John Stokes said.

To explain the sharp drop, Stokes said the volume of commercial activity in Anderson is relatively small, so the construction of a couple commercial structures can make a considerable deviation to the norm - which involves businesses moving in and out of pre-existing structures.

The opening of the Rite Aid on McMurray Drive this year yielded the only new building built for commercial purposes in the city, Stokes said.

Demand for regional commercial growth fueled the surge in commercial activity in Anderson in previous years, Stokes said. Businesses such as Shasta Outlets and Wal-Mart fulfilled some of the regional demand, Stokes said, which relies more on non-local shoppers.

That demand has since slowed considerably, Stokes said, pointing out business vacancies in Redding such as buildings that formerly housed Mervins and Gottschalks.

"There's not a demand for new square footage," Stokes said, adding that he expects little commercial growth in the near future.

While commercial activity was depressed, the number of new houses built rebounded to 15 in 2009 from only three built in 2008, according to city records. With 11 permits submitted in December for single family dwellings in the Silvergate subdivision alone, Stokes said he expects low-priced housing to drive the permit valuation totals in 2010.

"Low cost, single family dwellings, I think, will continue to ... dominate building activity," Stokes said. "Moderately priced housing at the Vineyards may come in as well."

Stokes said he expectes about 20 to 25 low-priced houses to get built this year. That total, he said, doesn't include any build-out of medium-priced houses constructed at the Vineyards housing development.

While lower priced housing units continue to out sell higher priced counterparts, Stokes said that sales at the Vineyards might not be held back as much by continued high unemployment. Shasta County unemployment percentage was 15.9 percent in December 2009, according to California Employment Development Department records. The city also collects permit fees from building permits to pay for services such as sewer and parks.