Local construction costs hint at recovery
South Portland's total construction costs more than doubled last year, and Portland also saw a sizeable increase, possibly indicating that the local economy is slowly starting to pick up.
The total estimated construction costs in 2010 from 782 building permits was a little more than $27.2 million, up from about $13.8 million in 2009. The permits include new residential and commercial construction, as well as alterations, installations and small building changes such as adding sheds, signs, pools and garages. From building permit fees, the city earned $348,440 last year, up from $213,194 in 2009.
While promising, this level of activity is still sluggish compared to past years. In 2003, total construction costs in South Portland amounted to a high of about $66 million, dropping to $45 million in 2006 and 2007, and then to roughly $35 million in 2008, according to Cathy Counts, who works for the city's planning and development department.
South Portland's jump in construction costs was helped by a new retail project at 85 Western Ave., which will house a Buffalo Wings-N-Things restaurant and half a dozen other commercial tenants, according to Erik Carson, the city's assistant manager.
In Portland, construction costs for all building permits issued -- from the largest projects to the smallest, such as adding awnings -- came to about $124 million in 2010. In 2009, the total was about $93 million, and building permit revenue to the city also dipped that year to $800,000, down from a high of more than $1.5 million in fiscal year 2007. This year, the city expects to see about $1.05 million in building permit revenue, according to Nicole Clegg, the city's spokeswoman.
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