Kitsap Peninsula Business Journal
9-9-2003
SPECIAL REPORT - CONSTRUCTION ON THE PENINSULA
Kitsap Peninsula’s construction
demand continues strong
By Rodika Tollefson

Just like commercial construction, residential building is healthy around the Peninsula, even if more difficult to spot.

In unincorporated Kitsap County alone, 113 more single-family homes were built through July of this year than last, with a total value of more than $90 million. All around the Kitsap, a few subdivisions are also in progress here and there.

“The residential market is really good,” said Mike Brown of FPH Construction, Inc., whose niche in the residential market is custom homes. “But lots are difficult to come by because GMA (Growth Management Act) has cut off a lot of good developable land.”

Bainbridge Island is booming with multi-use projects that incorporate housing units and retail or other commercial space.

“Most of our newer projects are residential,” said city’s Senior Planner Bob Katai. “We definitely have a lot more multi-family and mixed use projects now than I’ve seen in the last six years I’ve been here.”

One of the largest, Harbor Square, would have 180 units and 22,150 square feet of commercial use on 4.5 acres. “It’s right next to the ferry terminal and the idea is to have a lot of people walking right off to the complex,” Katai said.

Despite site approval, the fate of Harbor Square is unknown due to some contractor changes. “The project is on hold for us,” said a representative of Bainbridge Architects Collaborative.

Also on Bainbridge, the Island Commons will feature 61 condominium units along with 50 hotel rooms and 27,000 square feet of commercial use in an all-in-one complex. The building permits are currently in process. The Winslow, with nine condominiums and good size retail and office space will be completed this fall. Sakai Village, a 93-unit multi-family residential community with some single homes, is building through phase one while phase two is under review. Several other similar projects are also in the works.

“I think when the economy was doing really well, a lot of people applied but it took this long to get them built,” Katai explains the boom.

In Port Orchard, the number of residential homes is small, but has doubled since last year nonetheless. “We’ve been seeing steady growth based on available lots,” said city Planner Rob Wenman.

In Poulsbo, with the Wal-Mart getting underway, other parts of the Olhava development are expected to move forward, including the 215 acres of mixed use that has been in the works since 1995. Three parcels will have 490 units of single and multi-family homes of lots half an acre or more.
  “Everybody is going to a smaller lot size,” said Olhava developer Mark Zenger. “We’ll probably have a mix of single homes with town homes and condominiums.” City planners say they expect applications for the residential part to start flowing in early fall.

Another Planned Unit Development in Poulsbo, Meredith Heights, was finished up in late spring by Captsone Homes.
  With more regulations adding to the expense of home building and the second Tacoma Narrows Bridge likely increasing land values at least in part of Kitsap, developers see the residential market becoming increasingly expensive. “It primarily will impact entry-level buyers because it will shift the values and fees up,” Brown said. “People will be buying less of a house for the money.”
 Even so, there is no slowdown in sight for the industry as of now.