Anyone looking to build a new home in Crown Point now will have to pay a non-refundable deposit to receive a building permit.
Joe Cash, building administrator, requested the fee Friday before the Board of Public Works and Safety in an effort to prevent speculation developers from requesting permits that staff must take through the planning review process and then are never picked up and paid for by the requester.
“We had a few last year and already a few this year,” Cash said. Building department employees must do a planning review of the permit before it can be issued, which takes time. Other departments, such as planning and legal, may also expend manpower on a permit application.
“Time is money. We are just looking to cover our end,” Cash said.
New home building permits typically cost about $5,000. The board of works approved a non-refundable $500 deposit, roughly 10 percent of a permit cost, to be assessed at the time an application for the permit is made. If the home builder proceeds with the building permit, the deposit will be deducted from the final cost. If the home builder does not pick up the permit, the $500 will be forfeited.
Mayor David Uran said the deposit will discourage speculative corporate applications and cover the cost of the manpower it takes to bring a building permit through the planning review process.
“At least it covers the time and effort of the staff to put together the permit. It protects the city and it protects the staff,” Uran said. The deposit also will help keep the process efficient.
David Nicholls, city attorney, said he was “really disturbed” to hear about what was taking place in the building department regarding permits.
“I don’t believe that number is high enough from my perspective,” Nicholls said.
Deposits only will be required for new construction and not for home improvements like remodeling, fences and decks.
Carrie Napoleon is a freelance reporter for the Post-Tribune.
