Before the final decision is made to spend a total of $43 million in sales taxes to open the area north of 55th St. to long-range economic development, experts need to look at planning and housing statistics.
The problem is that no one person or department provides the combined expertise in Rochester to this kind of analysis. (See previous postings.) The Rochester Public Works Department wants $13 million to create an interchange at 65th St. and another $30 million for the required
sewer service, according to Public Works Director Richard Freese in his presentation to the sales tax committee.
But housing numbers and planning maps appear to indicate this northern area doesn’t need to be opened now.
Just over 10,000 platted lots were available in 2008, according to the Olmsted County Planning Department. This is a combination of residential lots, townhome lots, apartments and senior facilities. Residential lots available at that time totaled 5,643.
Recalling this was just after the economic downturn got started, it would seem logical that few of these platted lots turned into sold homes. And that still seems to be the case today.
As of Oct. 31, 2010, only 153 building permits were sought for single family homes in the city.
The sale of homes for 2010 also doesn’t support the idea that the city needs more built for quite a while. The Southeast Minnesota Association of Realtors provided this data.
The realtor association data for January through September mirrors the housing situation we are hearing about nationally.
In January the city had 880 active residential listings, which has now grown on a steady upward curve to 2,920. At the same time new listings reached a high of 423 in March and then steadily declined to 131 in September. Sales continued to increase. Cumulative total for the year through September was 1,074.
At the same time median prices moved downward every month by comparison to 2009. Median price means half were sold above the median number and half were sold under the number.
For January through September, median prices ranged from a low of $141,200 in March to a high of $154,500 in September (but still a decline when compared to 2009).
In opening the north area, the first thought might be a line-up of retail stores would be near Highway 52 and houses would be seen in back.
The reality is that the area, according to the planning department, is zoned agriculture/residential at least on the east side of the highway. A SMRA official in the organization newsletter said that prices will decline if new homes come onto the market.
Other than the already announced Menards which will build on the west side of Highway 52, it’s going to be a very long time before similar businesses would move to the area.
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