Commercial building permits slow in 2008

By Carolyn Cole/Staff Writer
published Jan. 17, 2009

Commercial building permits continued to trickle into city offices in 2008, giving officials hope Mustang could make some headway in its sales tax base to support years of record housing booms.

Eleven commercial permits were issued in 2008 bringing Cosby Ranch and Family Video to town, while construction continues on a Taco Mayo store, three general office buildings, a medical office and a title company. Sonic and 7-Eleven stores shed their former homes and moved across state Highway 152 into larger buildings.

Mustang School District started construction on a health and wellness facility at its high school campus, which is scheduled to be completed in June.

While 11 building permits falls below a nine-year average of 14 projects in a year, it still represented an increase from nine permits issued in 2007.

However, the total value of 2008 projects is $7.1 million, or $2.4 million below the total value of projects in 2007, which brought Lowes Home Improvement Store, Aaron’s Rents and Cornerstone Bank to town.

Senior City Planner Melissa Helsel said steady commercial growth is necessary for Mustang, which uses sales tax to fund city operations and services, ranging from the library and senior center, police and fire protection to road repairs and water and sewer use.

“We need the commercial development to keep up with the pace of housing development,” she said. “You need to have a balance.”
Housing starts slowed in 2008 to 78 permits issued, down from 197 in 2007 and a record peak of 308 in 2006.

While Mustang charges residents a fee for sewer and water use, she said it doesn’t come close to covering the city’s operational costs.

“What makes up the difference is sales tax,” Helsel said.

There are several companies on the verge of building in Mustang, she said, including Canadian State Bank and Boomerang Car Wash, both on state Highway 152 near Castle Rock Lane, as well as Swadley’s Barbecue on state Highway 152 and Quentin Lane.

Construction is set to begin on a $37.7 million armory near state Highway 4 and state Highway 152, which won’t draw any taxes into city and school coffers by itself, but is expected to bring more than 1,000 soldiers to Mustang to train at the facility, which will also employ 100 people. It is expected to be finished in spring 2010.

Comparison:

  • 2008: 11 permits, total value $7.1 million.
  • 2007: 9 permits, total value $9.5 million.
  • 2006: 15 permits, total value $14.1 million.
  • 2005: 7 permits, total value $1.2 million.
  • 2004: 24 permits, total value $11.5 million.
  • 2003: 23 permits, total value $5.6 million.
  • 2002: 13 permits, total value $14.1 million.
  • 2001: 21 permits, total value $5.9 million.
  • 2000: 7 permits, total value $13.4 million.

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