After an economic drought, 2012 promises more commercial construction activity in the lakes area.
The Costco building project is expected to take center stage in Baxter, near Home Depot. And there are a few other examples already in progress, such as the North Pointe Centre expansion and the nearly completed Essentia Health clinic in Baxter.
A look back at residential homestead and commercial construction numbers to show what kind of effect the Great Recession’s toll has taken in Baxter.
“New construction” in Baxter is listed with the year it affects in regard to the property tax collection based on the previous year’s construction. This means in 2011, the “new commercial construction” added for 2012’s taxes was just $282,200.
• 2005: Residential homestead, $7,556,000; commercial, $9,608,400.
• 2006: Residential homestead, $9,733,600; commercial, $25,587,800.
• 2007: Residential homestead, $6,602,700; commercial, $22,708,800.
• 2008: Residential homestead, $4,151,700; commercial, $12,057,600.
• 2009: Residential homestead, $3,489,600; commercial, $13,909,100.
• 2010: Residential homestead, $1,156,700; commercial, $6,476,000.
• 2011: Residential homestead, $967,200; commercial, $663,400.
• 2012: Residential homestead, $1,788,300; commercial, $282,200.
While Baxter posted construction numbers for residential homes, non-homestead residential construction and apartment buildings, the commercial building was the major generator of millions of dollars until 2011 and 2012. Construction dollars generated for the city, which spiked in 2006 at $25.5 million, began dropping, by about $2.6 million between 2006 and 2007. By 2008, it took a major tumble to nearly half of its previous high, to about $12 million. While the numbers increased a little in 2009, they fell into the cellar by 2012. But Baxter reported the total “new construction market value added” in 2011 for 2012 was $4.8 million.
The city’s net tax capacity, which reached a high of $13,104,334 in 2009, dropped to $10,616,026 in 2012.
Single-family residential building permits fell from nearly 90 in 2003 to barely making a bump on the graph in 2011.
Property taxes provide 41 percent of Baxter’s 2012 budget revenues, with 2 percent coming from the lodging tax and 14 percent from the sales tax. Charges for services makes up the second largest revenue block at 26 percent.
RENEE RICHARDSON may be reached at 855-5852 or firstname.lastname@example.org.