Building Fee Increases Raise Local Concerns

Increases in local home and business sales are just a couple of ways to breathe life into a struggling economy. However, increases in various fees have some people out of breath.

From empty store fronts, to decreases in start up home numbers, Great Falls struggles to see the other side of the economic downturn.

"Starting a business in Great Falls is very challenging. Getting into a space, getting all of your permits...it's very costly," says local developer, Melissa Anderson.

Mike Haynes, Director of Planning and Community Development for the city of Great Falls, disagrees with that sentiment. "It's relatively easy to open a business in Great Falls. Compared with other cities in the US and other cities in Montana, it's pretty inexpensive to do business here. Our building fees are certainly no higher than other communities."

A comparative look at building fees in other Montana communities tell a different story. For example, a structure valued at $100,000 in the city of Great Falls would, in fact, asses a larger building fee than if the same structure was built in Billings, Bozeman, or Helena.

"There's been a lot of fee changes that have made it profoundly difficult for small business that are coming to town," adds Chris Kelly of Kelly's Signs. The same fees business owners and developers feel are high enough already, are set to increase again in the year 2012.

Haynes explained the reason for the fee increase saying, "The increase in fees is simply to be able to operate the department." He adds, " What we're doing is just working with the development community, giving them the best service that we can."

The services Haynes refers to include building inspections and putting together concepts for new development such as the new Downtown Master Plan.

Businesses aside, a few home builders are also feeling the impact of the increase in costs. "We also think the costs are keeping people out of the market. The builders have raised prices on permit fees and plan review fees," says Katie Hanning of the Home Builders Association of Great Falls.

According to Haynes, the increases in building fees are quite minimal. "They're significant increases for sure, but in the context of the development of a project, it's a small fraction of 1% of the project," he explains.

Hanning adds, "We have to remember that this trickles down to our whole economy in Great Falls. If a builder doesn't build, a painter doesn't get the job to paint, the painter doesn't go to the grocery store. It trickles down, so if you think this doesn't affect you, you're wrong. It affects all of us."

To some, the answer to the question of stimulating Great Falls home and business development is simple. "What I would say the solution is, getting with the business people of town, the contractors, the sign industry. Open up communication lines [who] have been doing business around here for a long time, and find out what works and what doesn't," says Kelly.