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HomeMy WebLinkAboutItem 04.dMemorandum To: Mayor and City Council From: Steve Mielke, City Administrator Dennis Feller, Finance Director Dave Olson, Community and Economic Development Director Daryl Morey, Planning Director Date: November 12, 2013 Subject: Community Growth. If new residential construction continues at its current pace, permits will be issued for approximately 350 -370 dwelling units this year thereby exceeding the July estimates by approximately 15 -20 %. The 2014 budget was premised on the following growth assumptions. As of Budget Estimates 31 -Oct 2013 2014 Building permits - number of dwelling units Single family 304 315 345 Town homes 21 16 20 Multifamily - - Total units 325 331 365 Developer confidence in future growth continues with 397 new single family lots approved in the first 10 months of the year. There has also been heighted planning activity with more than 146 single family lots currently in the preliminary plat review phase and approximately 800 single family lots in the subdivision sketch plan review phase. Development activity has historically been a key indicator of near term permit activity and community growth. Actual As of Budget Estimates 31 -Oct 2013 2014 Development Process Number of residential dwelling units Approved Final Plats Single family 397 293 320 Townhomes /multi - family 0 0 0 Total units 397 293 320 ITEM 4.d City of Lakeville As such, the 2013 General Fund permit revenues and development related fees are expected to exceed estimates by approximately half a million dollars. The capital improvement funds for water and sanitary sewer will also have increased revenues as result of connection charges collected with building permits. 2014 growth projections If building permits are issued for new single family homes is as estimated in the budget (345 building permits), staff estimates there will be will be approximately 374 to 412 vacant lots in available inventory throughout the coming year. Single Family Lot Inventory Projections Estimated number of Permits issued for single family homes Estimated number of lots in "New" subdivisions which are ready for building permits Estimated number of vacant single family lots I 2014 I 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr (75) (90) (90) (90) 108 100 100 374 392 402 412 The number of vacant single family lots shown above does not include lots in plats which have been finaled but are not ready for permits due to incomplete infrastructure.