FeedsHome building hits low
New home construction has taken a hit in Romulus because of the overall state economic situation, but ideas about how to lure more residents into new and existing homes also seem to have hit a snag among city officials.
Once the mainstay of development activity in the city, more than 1,500 homes were built in Romulus from 2000 to 2006, but as economic fortunes changed, so did the level of residential building activity in the city, according to city estimates.
Now, the level of residential construction in the city is creating a quandary for the city, which needs to increase the number of residents to attract commercial projects.
“For years we have heard that we need more rooftops for developers to come in here, and we got more rooftops,” said Mayor Alan Lambert. “Now we have more homes, and the economy just tanked.”
Residential development and commercial development – both of which have been a matter of intense efforts at city hall – are tied together because commercial businesses prefer more populous areas in which to set up shop. A higher number of residences guarantee a certain number of customers and workers for the business.
But because residential building has faltered, some are openly wondering if commercial development will also falter.
Councilman William Wadsworth said it’s fruitless to actively seek new residential projects right now.
“The bottom line is that we want to see the homes that are already here sell for the good of our residents,” he said. “The demand for new homes was largely based on mortgage companies giving people huge loans – it’s tragic what is happening to those folks now.
“The economy in Michigan is going to have to turn around for anything to get better,” he said. “I do think the car industry will have to turn around – people need to start buying more American cars.”
Lambert said development picture in the city for both residential and commercial development is beyond frustrating.
“If a developer thinks he can build new homes and sell them, of course were going to listen to them,” he said. “there’s not much activity right now, but we’re going to just keep trying. One thing I would like to see happen is consideration of the airport – there are 30,000 people that go through the airport every day, and they’re not counted as potential customers.
“But if you go to the Merriman Road area, where Leonardo’s is, there’s people waiting outside to get in because there’s no where else in the area to eat,” he added.
Two highly-publicized developments have either fallen apart or experienced setbacks. A race track operator pulled out of a deal to build a harness racing track in Romulus about 18 months ago, and a bill that would have paved the way for an Indian casino to open in Romulus was voted down in Congress.
About 6,000 jobs would have been created if those developments came to fruition, and the city was counting on those jobs to generate new and used home sales in the city, Lambert said.
There is a silver lining, however. Only one of about four new home projects was delayed because of a lack of sales, Lambert said. He also said the city has avoided laying off building inspectors, as other cities have, due to the lack of new construction.
Despite the cloudy picture, Lambert said the economic development staff is exploring new projects.
“We’re hoping to attract new businesses and employers that may not be as dependent on the number of homes we have,” he said.
