The Bryan city council at its last meeting continued an incentive program started last year for companies that build what is considered a mid-sized house, something that is considered to continue to be in short supply.
Those who build new detached single family homes between 2,200 and 3,000 square feet are eligible to pay no building permit fees and no water and sewer fees.
In the first year of the incentive, 76 homes were built, compared to 27 the year before.
30 homebuilders participated in the program, seven of them new to Bryan.
The city gave up $116,875 in revenue in the first year of the incentive. City staff estimated revenue generated from property taxes over the life of the homes was projected at $72,776 per year, resulting in the payback for the incentive was determined to be 1.6 years.
In the first year, homebuilders could qualify for up to $4,900 in rebates. That included a waiver of fees to enter the Parade of Homes. The council approved changes explained by city business/development liaison Frank Clark to separate the Parade of Homes entry fee, in order for homebuilders to show new homes of all sizes throughout the city.
Clark told councilman Rafael Pena it’s up to the homebuilder whether they pass any of the rebates, totaling an average of $1,500 dollars, to the homebuyer. Clark also told Pena it’s up to the council whether to extend the rebate to all new homes.
Mike Southerland, who said over the last 14 years Bryan was getting 25 percent of the new home market compared to 75 percent in College Station, asked if homebuyers could receive incentives similar to homebuilders or even what is offered to businessowners to locate in Bryan. City Manager Kean Register said he would look into the legalities.
Click HERE to read the presentation given to the city council.
Click HERE to read the background information and the ordinance approved by the council.