Power tools will come alive and home improvement outlets will be
bustling as Castle Rock waives building permit fees for remodeling
projects.
The “Rock Your Renovation” program is part of a stimulus package
designed to boost retail sales and help homeowners save cash while
adding value to their homes. Other ideas to stimulate the local
economy are still under consideration, but the improvement program,
which started July 1 and runs through September, was implemented
with the expectation that residents will take advantage of cheaper
upgrades and spend money on materials at Castle Rock stores.
Based on a one-year evaluation of building permits submitted to
the town, homeowners will save an average of $780 on each project,
enabling them to purchase more quality materials or tackle another
item on the to-do list, said Bill Detweiler, the town’s director of
development services.
Castle Rock staffers have contacted hardware centers informing
them about a possible jump in sales and to get them ready to
promote merchandise that could assist do-it-yourselfers or
contractors.
An increase in sales will generate more tax revenue for the town
at a time when it needs it most, and mayor Randy Reed says he
expects the concept will create a win-win situation for all
involved.
“In these tough financial times, it’s important for the town to
help residents, but this program is about more than that,” he
said.
As a third benefit, the renovation program helps homeowners
build value in their investments.
“It’s increasing the value of homes in the area and that will go
a long way as things get better over the next several years,”
Detweiler said. “It’s investing in your home and investing in local
businesses.”
Officials anticipate a spike in the number of permits submitted;
more than 40 people attended a town sponsored seminar on basement
refinishing last month. A temporary 24-hour maximum review and
approval period for applications was implemented to expedite the
improvements and reduce staff time dedicated to the process.
Permits are valid for 180 days with one extension of up to another
180 days allowed. Council placed a total cap on the free permits at
$100,000 over the three-month duration of the fee exemption.
Staff will monitor the progress of the program and report to
town council on its performance. Depending on the level of success,
there is a chance the incentives could be extended, Detweiler
said.
Council members are also exploring the potential benefits of an
incentive program for consumers to shop locally. That initiative
would offer gift cards for Castle Rock stores for amounts equal to
a percentage of purchases. Essentially, shoppers who total $500 in
receipts in one month on local purchases – excluding food, alcohol
and utilities – would receive $50 worth of certificates good at any
store licensed by Castle Rock.
“We didn’t think it would be good to look at the things people
were already buying, so it was geared toward new purchases,” said
Charles Montoya, finance director.
If approved, however, the program would take some time to roll
out. With help from the Castle Rock Chamber of Commerce, stores
would have to be notified of the gift cards and be willing to
accept them as currency.
“It’s not an easy thing, but it could be a great thing,” said
town manager Mark Stevens. “We are going to need a lot of
help.”
Planners are still trying to determine whether it would be more
beneficial to dole out the gift cards in $10 increments to
encourage spending in multiple stores.
Lone Tree is already considering its own version of the stimulus
plan, which was born out of the southern Colorado town of
Lamar.
A separate proposal to create a new policy that would give
preference to local businesses on Castle Rock project bids was shot
down. Councilman Ryan Reilly opted to leave the existing
vendor-preference policy in place because he said a new, more
restrictive policy might negate the advantages of the free trade
system.
Qualifying projects include:
Kitchen or bath remodels
Basement remodeling
Roof repair or replacement
Decks
Home exterior siding
Bedroom remodel
Solar panel installation