Money spent on building construction rose in 2015

Published 12:03 am Thursday, March 31, 2016

NATCHEZ — Fewer construction projects were begun in Natchez in 2015, but far more money was spent on construction and renovation.

Trade permits in the City of Natchez show a 54-percent increase in 2015 in property valuations and a 3.4-percent increase in fees paid to the city over the previous year.

The city issued 552 permits for building, electrical, mechanical and plumbing projects in 2015 compared to 750 in 2014. That decrease did not translate to a drop in added property value or fees to the city.

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In 2014, the value of the building and trade projects that went on in the city was more than $15 million. In 2015, $23.4 million in buildings and construction projects was added to the city.

The high valuations were likely the result of some large private projects, Building Inspector Jody Rutter said.

Rutter said the renovations to Merit Health Natchez alone could account for more than $12 million of the 2015 valuations.

Rutter said the increase in permit fees could be further explained by changes in the permit fee schedule.

Permit fees paid to the city increased from $84,000 in 2014 to $87,000 in 2015. The amounts of the fees are based on the cost of the projects, which increased in 2015, but may also be due to increases in fee rates and changes in how the rates are calculated.

The permit fee for a $3,000 project, for example, would have been $20 in 2014 and $45 in 2015. A $100,000 project would cost $505 in fees in 2014 and $520 in 2015.

Rutter said in the past, small projects would sometimes be underreported in order to lessen the permit fees.

“If somebody comes in and tells us a number, basically it’s an honor system,” Rutter said.

Now, all permits for projects costing up to $5,000 have a $45 permit fee, eliminating the reason to undervalue the project. This could lead to a more accurate number in the future, Rutter said.

Natchez Mayor Butch Brown said the board of aldermen voted to change the permit fee rates because they were out of date.

“The fees were basically nothing, so we put them on a more realistic schedule,” Brown said. “They’re still not as high as other communities in the state.”

Brown said building projects by the city and county are not charged fees for their building permits, so 2015 building projects such as the Bridge of Sighs and park renovations do not count toward these totals.

Brown said the big-ticket items for construction could be expected to continue into 2016 with construction anticipated on projects including the renovations of Brumfield Apartments and the former Eola Hotel.