An efficient building-permits process is a key component of economic development, and economic development helps drive city revenues, says John Pilcher, the city of Spokanes economic development director.


Thats why Mayor Dennis Hession listed continued funding for nine new building department positions approved this year, adding seven more growth-related positions next year, and launching an online permit application system as key city investments in his 2007 budget addresses last month, Pilcher says.


The City Council earlier this year authorized funding for the nine new positions at a total of roughly $700,000 annually, Pilcher says. The new online permitting system is expected to cost $1.5 million to launch.


All that money would come from an enterprise fund that relies on fees paid by building department customers, rather than from the citys cash-strapped general fund. Its the general fund, however, that gets the payback. The city expects new construction to boost general-fund property tax revenue by $900,000 next year.


Were seeing a dramatic increase in activity, and were staffing to keep up with demand, much like private business, says Pilcher.


Among the nine new positions approved this year, the department is adding four field inspectors, two plan reviewers, a permit clerk, an accountant, and a deputy building official.


Were changing the department in big ways the average customers will see, Pilcher says.


Thats good news, say those in the industry, who claim theyve had to adjust their construction schedules to account for the increased time it takes to get a permit through the city these days.


The reality is the building department has more business than a few years ago and needs more people to take care of increased customers, says Spokane developer Ron Wells, of Wells & Co. The mayor and Pilcher listened to those who expressed concerns and are doing something positive.


In addition to the new building department employees, the mayor is proposing to hire seven employees, at a cost of about $550,000 annually, who will deal with growth-related issues, including planning, engineering services, and fire codes.


Marlene Feist, city spokeswoman, says the growth positions would be funded through the citys general fund.


Pilcher expects the city building department to process permits this year valued at around $500 million, compared with $183 million back in 2000. Last month alone, the city performed 3,342 building inspections, compared with 2,564 in October of 2000, he says.


As the workload increased, the building department staff remained at around 40 employees in recent years, before expanding by three new positions in 2005 and nine more positions this year. As new employees are helping to catch up with a backlog of permit requests and inspections, Pilcher says hes seeing continuing strong demand in the pipeline for building department services.


The life cycle for a larger project may begin two years ahead of when its built, Pilcher says.


There is still a lot of pre-development activity with new projects coming in, he says. We expect it to level off at some point, but it seems like its still strong now. If it drops off, well have to make staff adjustments.


Currently, it generally takes six to eight weeks to process and issue a building permit after an application is submitted.


That timeline has been longer because of demands on staff, Pilcher says. Its making it hard to be the most effective we can be. We would like to see it shorten.


Brandon Spackman, a project manager with Spokane-based Baker Construction & Development Inc., says the city needs to do more than just speed up processing of building permits. He says its also important to increase the number of inspectors available to visit construction sites after a permit is issued.


The city is slammed with permits, he says. The big item is the certificate of occupancy.


Because of the backlog, Spackman says, inspectors are issuing temporary permits so buildings can open, but the paperwork that makes it official can take weeks to be processed. The problem isnt with any one individual, but with a lack of needed personnel, he says.


Improving the process


Pilcher says that the city is taking steps to improve the permitting process, but its ability to screen and approve applications often is hindered by the quality of the plans it receives. He says the days of submitting drawings and building plans on a napkin are over.


We can turn around clean plans that are up to codes more quickly, he says. Some people come in with incomplete plans, thinking they can get started quickly. At the end of the day, that doesnt serve anyone well.


One of the improvements the city currently is working on is an enhanced Web site, which will feature an online system intended to make the permit application process easier, says Joe Wizner, building department director.


Clients will be able to get some permits from their home or office without having to come down here, Wizner says.


The system will allow people to use the site to track their permit applications, and communicate via e-mail with appropriate department employees, as they wind through the permitting process.


The online permitting system is being developed under a $1.5 million contract by Accela Inc., a San Ramon, Calif.-based software company.


With the new system, building inspectors will carry rugged laptops, with which they will be able to enter notes about a project from the field. Currently, field inspectors must come back to the office to write up their notes, which cuts down on the time they can spend doing inspections. They typically spend 1.5 hours a day documenting their field inspections, he says.


Pilcher says the mayor has established an aggressive goal to have the Accela system online beginning in January. He says the system will be phased in, beginning with building permits.


As other city departments come online, they will help share the expense of managing the system.


Eventually residents will be able to file municipal code complaints online. You will be able to watch a complaint being followed up on, he says.


Pilcher underscored the link between an efficient building department and a growing economy.


If we can get a project on the ground one month sooner, thats one month earlier it will be contributing taxes to the general fund and helping to pay for services, including police, libraries, and parks.


Wells says that compared with most cities, the city of Spokane is doing a good job, but it used to do better. In the good old days, we used to get a quick turnaround, he says of the permit process.


Without improvements, the process itself could slow economic development.


There is literally a backlog, he says. I think some people have expectations. If they come to town and dont get a reasonable degree of service, they might take their ventures elsewhere.


Baker Constructions Spackman says hes looking forward to the online permit system.


In Bellevue, which has such a system, You can get on daily and find out who inspected that day, what time, and what their comments were, he says.


Bellevue also has a quick e-mail system that contractors can use to contact anyone who handles a permit.


Under Spokanes current system, Spackman says he has to call the city and find out who hasnt signed off on a permit. Then, either he or the city has to track and guide the permit through each remaining step.


I think it will free up people at the city if they arent making all those calls, Spackman says of the planned online system.


Spackman rates Spokane building services as above average in the West, especially when it can keep the building permit approval process to six to eight weeks.


The problem is, all of a sudden, we went from four weeks to 10 weeks for commercial permits in just a couple of months, he says.


Contact Mike McLean at (509) 344-1266 or via e-mail at mikem@spokanejournal.com.