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Adding to the growing list of incentives to try to convince developers to build and people to buy a new house, Liberty City Council voted Jan. 25 to heavily discount 30 single-family building permits.

Depending on the price of the house, builders could save more than $5,000, or 80 percent of the cost of a permit. For an $180,000 house, for example, that would be a $4,500 savings, said Steve Anderson, director of planning and development. The regular price would have been $5,900 for the permit, but with the discount it would cost $1,500.

Last year, Liberty issued 11 single-family building permits, he said. Several years ago, the city routinely issued 200 single-family permits, but in recent years that number declined sharply as the economy tumbled.

Councilman Jeff Watt proposed the discounted permits several months ago as a way to jump-start the city’s sluggish housing market.

“I was very happy with the vote,” Watt said. “Now we need to get the word out to the builders, contractors, suppliers and banks.”

Although he said he was generally supportive of the program, Councilman Lyndell Brenton was the lone holdout in the 6-1 vote.

Brenton said by discounting the roadway development tax portion of the permit, the city was breaking a covenant with voters who in 2001 approved a quarter-cent transportation sales tax coupled with a roadway impact fee paid by developers. In 2008, voters raised the transportation sales tax to a half-cent, which will sunset in 2030. The roadway tax sunsets in 2015.

According to Assistant City Administrator Dan Estes, the sales tax in 2009 generated about $1.15 million and the roadway tax generated approximately $250,000, mostly from commercial construction.

The discounted housing permits come with some conditions. A builder is limited to three permits, and the houses must be completed and ready for occupancy within a year from the date the permit is issued. The permits must also be used on existing lots.

While not mandating it, the city encourages builders to buy materials, services and supplies from local firms. Watt said the program would be evaluated in six months.

Randy Waits of Longhorn Construction Co., a developer of the 16-lot Camelot Commons, said he was disappointed attached patio homes were not included in the program.

“There’s no inventory out there, and we don’t want to be behind when the market breaks,” he said. “We were ready to pull some permits.”

Waite said they were also ready to discount their first home by $8,000 and with federal tax credits thrown in the mix, homebuyers could be attracted to buy a new home.

In other business, the council:

• approved a second amendment to the tax-increment-financing agreement between the city and Rogers Plaza to allow Rogers to capture one-half of the 1 percent general sales tax that would have gone to the city to help Rogers pay for public infrastructure improvements. Because of the economy, the TIF bond market has collapsed, forcing Rogers to seek alternative financing.

• recognized Corbin Theatre Company as the city’s official community theater, allowing the theater and city to partner on entertainment projects.

• commended three parks department employees, Donna K. Taylor, Charles Anderson III and Debbie Abernathy, for action they took during a critical incident at the community center when two women were injured.

City issues three permits

Three down and 27 to go. The city has issued three single-family permits within days of the City Council’s decision to discount 30 building permits by 80 percent.Permits for three houses valued at more than $750,000 to be constructed on existing infill lots were issued by Tuesday, Feb. 2, according to Jeremy Adams, chief building inspector. One house will be built in Creekwood, one in Claywoods and one in Bent Oaks.Adams said the city had issued a total of 11 single-family building permits last year, none in January. He said he had also had a few other inquiries. The houses must be completed within one year of pulling a permit. The discount could save the builders approximately $4,500 to $5,000 per house. Builders are limited to three permits each. Adams said the builders were also given a list of local businesses that offered building materials, services and supplies. “We’re not mandating it, but we’re encouraging them to use local people,” Adams said.

Liberty Editor Angie Anaya Borgedalen can be reached at 781-4941 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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