By Linda Lipp, Greater Fort Wayne Business Weekly
lindal@fwbusiness.com
Despite a boost from downtown Fort Wayne's big Harrison Square redevelopment project, the total value of all construction permits issued in Allen County in 2008 was down 9 percent from the previous year.
The total value of all permits issued in 2008 - commercial and residential, new construction and all manner of repairs, additions and renovations - was $474 million, down from $521.6 million in 2007, according to figures from the Allen County Building Department.
The nation's credit crisis, recession and housing slump helped drag the total value of all residential construction in Allen County down nearly 27 percent in 2008, to $169.6 million from $232.3 million in 2007.
Commercial permit value was up $16.2 million, or 5.6 percent, in 2008, to $304.5 million, from $288.3 million the year before. But that included a $20-million permit issued for the Courtyard by Marriott scheduled to be built by White Lodging Services at Harrison Square, a portion of the project that now may be on shaky ground.
Construction of the six-story, 250-room hotel was supposed to have begun before the end of 2008, but has been delayed by White's problems obtaining financing for the project.
Work is progressing on the baseball stadium and parking-garage portions of the downtown development, but construction of the condo and retail segment by Atlanta-based Barry Real Estate Co., delayed by slow condo sales, also has not begun.
For some contractors, small projects were the meat and potatoes of 2008.
Contractor Randy Strebig, president of Strebig Construction, said his company opened about the average number of job files in 2008 and probably had average to slightly above-average sales.
The business has kept active with smaller projects and some more unusual and more service-related work. "It's work I feel is going to be the root of the 2009 season," Strebig said.
"We're doing our best to capitalize on every opportunity, which is no different than usual, but it just seems more magnified," he said.
The contractor, who started his company 28 years ago while still in high school, has been calling customers he's worked for previously, just to say hello and check on their plans. He also tries to impress upon his workers that the way they represent the company when they're on a job is a part of what brings in other jobs.
The competition for projects going out to bid has gotten tougher, Strebig said, with contractors who weren't interested in smaller jobs a year or two ago throwing their hats in the ring now.
"And we've actually seen a couple of startups (contractors) in the midst of this," he said. There are 18 contractors vying for a $300,000 to $400,000 project Strebig is bidding on right now.
Among the other significant commercial projects that got under way last year in Allen County is the renovation of the former Nishakawa Standard plant in New Haven for Vera Bradley Designs. The $4.2-million project includes a $2-million investment in facility improvements by building owner Hanning & Bean Enterprises and another $2.2 million for machinery and equipment by Vera Bradley.
Also begun last year were Wayne Pipe & Supply's new, $3.1-million office and warehouse building at Summit Industrial Park II, and a $1.8-million renovation of Parkwest Center for Centennial Wireless.