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Smithville city officials cautiously optimistic about future

“That creates a significant revenue shortfall,” Community Development Director Jack Hendrix said.

The average cost per new housing permit is about $1,430, he said.

When preparing the city’s budget, officials must predict how many new housing permits they think the city will issue for a fiscal year, which runs from November through October.

Hendrix said two of the main factors considered when predicting new housing permits are studying the previous five-year history and keeping an ear to the ground about the housing market.

“We’re starting to hear rumbles that we’re coming out of (the housing slump) in Smithville,” Hendrix said.

The city issued 123 new housing permits just a few years ago during the 2005-2006 fiscal year.

“It was fairly easy (for builders) to get money,” Hendrix said.

The following year, the city budgeted for 120 new housing permits. But the housing market took a dive, and the actual number of permits issued for 2006-2007 tumbled to 69.

City officials attempted to get a grip on the busting housing bubble and budgeted for 75 permits last year. However, only 32 permits were issued, a dismal figure not seen since 1988.

“Builders started having trouble getting money,” Hendrix said. “That was the end of spec homes.”

The shift from spec homes, or inventory homes, to custom-built homes is just fine by Tim Dougherty, developer for Grayhawke at the Lake.

“We just finished three new houses, and we have about 10 to 12 that will be under construction in 30 to 45 days,” Dougherty said.

The current development sits on 225 acres, and all of the homes back up to green space with mature treed lots. Hendrix said the city requires 7 percent of green space in a development, but Grayhawke has 38 percent. Dougherty said he wanted to leave the property in its natural state, complete with flora and fauna.

“Whoever has the prettiest land wins,” Dougherty said, referring to the competition.

Houses in Grayhawke range from $230,000 to $500,000. Dougherty said he plans to build about 90 more houses next year, which will add more price ranges, when he expands the development to include The Hills of Grayhawke.

Hendrix said he is optimistic about the future of new housing in Smithville.

“It’s going to be a slow process,” he said. “I anticipate slow growth.”

For the current fiscal year, the city dropped the budgeted amount of new housing permits to 50. So far, four have been issued.

Staff writer Kathy Crawford can be reached at 532-4444 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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written by Phil Silvers, May 12, 2009

Wow look at the elevation difference between those two houses. You would think that would pose a codes violation based on drainage concerns? Who let that one slip through the codes office? I wouldn't want to be the people in the brown house they are going to get a basement full of water.

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