$1.79 Billion Grand List Reflects

Decrease In Home Building Pace

By Steve Bigham

A shortage of available building lots is being attributed to the slowing of the town’s building boom over the past year. This phenomenon has also resulted in a drop in the town’s grand list increase.

According to Tax Assessor Denise Hames, the shortage of prime land has resulted in a significant decrease in the number of new homes being built. In turn, that has had a direct impact on the town’s grand list. The growth in the grand list dropped from 4.94 percent in 1999 to 3.97 percent (or $68.5 million) in 2000. It was the first time since 1997 that the grand list increase fell below the four-percent level.

The grand list, which this year tops out at $1.79 billion in Newtown, measures the assessed value of all taxable property in town, including personal property and motor vehicles. Two years ago, the grand list showed an increase of five percent, a reflection of both the building boom and the booming economy.

“Land has now become more of a commodity. Developers are now paying a premium for land,” noted Tax Assessor Denise Hames, who believes the slowdown should help the town avoid becoming completely overbuilt.

Mrs Hames said larger parcels such as farms are no longer being sold off at the same rate as before. People want to keep the land as open space, she said.

A total of 103 new homes were constructed during 2000, which was the lowest total since 1991. The busiest year came in 1998, when 238 new homes were built. As Ro Glantz of Landmark Homes points out, the cost to purchase the few lots that are available has increased significantly, forcing builders to construct large, expensive homes. However, she adds, there are only so many customers in the $500,000 and up range.

“The lot dictates the price of a finished house,” she said this week. “I have people who are ready to build a house in the $300,000 to $400,000 range. But if you pay $150,000 for the lot, by the time you build the house and pay the closing fees, there’s no room for the builder to make any money. It’s very  difficult.”

There has, however, been an increase in the amount of commercial construction. According to Building Official Tom Paternoster, the number of commercial building permits is up due to projects like Homseteads, the proposed 165,000 square foot 5/6 school, and a lot of small projects in the 3,000 to 4,000-square-foot range. Fairfield Hills is also expected to keep the town’s building department busy.

“No matter what happens, I don’t see much of a slowdown as far as the building department goes, because the slowing of residential construction will be made up by these things,” Mr Paternoster said.

The grand list totals out of the assessor’s office show real estate is up $45 million to 1.54 billion. Personal property assessments of $73.2 million increased $9.9 million. Motor vehicle assessments – up $13.9 million – now total $172.3 million. Records in the assessor’s office indicate there are a total of 23,270 taxable vehicles in Newtown, up 769 from the year before.