Hobart sees decline in home construction in 2008

BY DEBORAH LAVERTY, Times of Northwest Indiana 
dlaverty@nwitimes.com

HOBART | Home construction took a hard hit in Hobart this past year, reflective of what happened throughout most of the country, Building Commissioner Carroll Lewis said.

Permits in 2008 were issued for seven houses and one duplex unit compared to 58 houses and eight duplexes in 2007.

Lewis said he doesn't see home construction improving until the negative mind-set becomes more positive.

"Until the economy gets a positive attitude, this year won't be any better than last year," Lewis said.

Of those seven new house permits issued in 2008, three received residential tax abatements.

Overall, construction in Hobart was way down, roughly one-third of what it was the previous year.

The total estimated construction amount in 2008 in Hobart was $24.2 million, down substantially from $72.3 million in 2007.

There were some bright spots in commercial construction including new growth on U.S. 30, Lewis said.

Momax Marble built a 15,000-square-foot office/warehouse building and Hobart Mini Storage Depot built four new storage buildings on U.S. 30.

Other commercial projects included Luke Gas Station on 37th Avenue; County Line Orchard Welcome Center on County Line Road and St. Mary Medical Center's MRI/CT addition.

"We have things moving; we're not dead. But we are way down in comparison to last year," Lewis said.

He said the city was affected negatively last year when some developers asked for extensions on big projects now on hold.

The fact that developer Robert Stiglich is going forward with his project, Silverstone Crossing, is something Lewis sees as a positive step for construction this year.

Stiglich at the Jan. 8 Plan Commission meeting said he's going forward this spring with his 230-acre project located at the northeast corner of Mississippi Street and U.S. 30.

Last October, Stiglich received a one-year extension on his project citing the current housing market and tough economic times.

His completed development will entail 1 million square feet of residential, commercial and retail space and will include an entertainment component accessible from U.S. 30.

It will represent a $140 million investment, not including $6 million in infrastructure costs, developers said.