Government officials who handle the approval process for Nevada’s booming commercial real estate sector know they are in a race. In a sense, the race is a marathon because there is much to accomplish, but it is also a sprint, because speed is vital.
Their agencies, especially in the Las Vegas and Reno areas where the commercial growth is strongest, face deadlines and pressure from builders and developers who need their projects approved and finished as quickly as possible. Some commercial real estate executives in Las Vegas, which has led the nation in population growth for more than 20 years, complain the process often takes nine months or longer. For a builder or developer who has promised tenants their facilities will be ready at a certain time, this can be a disaster.
The officials who head the building departments and development agencies that approve plans and permits and inspect projects vow they are working to make the process faster, easier and more efficient. They explain that new procedures are starting to have a positive impact. These include: online computer tracking of the approval process; programs to review plans for flaws before they are submitted; meetings with builders, developers and trade groups to hear their problems; and new departmental standards for meeting deadlines for project reviews.
“Development has occurred at a breakneck pace for the past two years and longer,” said Dean Friedli, assistant director of the Clark County Development Services Department, about the volume of permit requests for both commercial and residential construction.
“The staffing (of our department) has been an issue. We have had to rely on outside plan checkers to do our reviews, which have been doubling and tripling in volume. Our employees have put in a tremendous amount of overtime, but you have to be careful you don’t burn people out.”
Other municipalities have had to add staff and utilize the services of consultants and outsider reviewers to keep up with the volume. “The volume (of requests) has created a furor,” said Diana Bossard, a principal with B2 Development Services, which acts as a consultant to the construction industry. “In any development, time is money. You have to do whatever it takes to get the development done quickly.”
Ron Patterson, manager of development services for Henderson, noted, “We are in one of the fastest – if not the fastest – growing areas of the country and we are working hard to put systems in place to do our best for the development community. We have spent a lot of time trying to reinvent our process.”
The department has deadlines for completing the review in each permit category. Patterson said his staff meets these goals 99 percent of the time. Developers and builders can go on-line and track what is happening in their permit review process and read the comments of the reviewers. “This cuts down on the blame game,” Patterson said. “Our customers can see where their projects stand.”
Paul Wilkins, director of building and safety for the city of Las Vegas, said his agency has a similar percentage in reaching its goals of reviewing a plan within five days, and dealing with revised plans in 10 days.
“One of the big problems we have is incomplete plans,” he said. “We fax the plans back to the design professionals and wait for their responses.” Officials and developers both agree that flawed plans back-up the system. Those who submit complete plans are affected and experience delays.
“Our staff is geared toward running the building department like a business,” Wilkins said. “We want to be receptive to our customers and make sure we respond. We want to make sure the money we make goes back toward helping the builders.” He explained that building and development service departments are funded by fees paid by their customers; no taxpayer money is involved.
Wilkins said other major problems include scheduling inspections for projects that are not ready to be inspected, and violations of the building code or other regulations. He said his department speeds up the process by reviewing plans for free before they are officially submitted. He is proud of the city’s Express Plan Check service, implemented about a decade ago, in which builders, developers and their civil engineers and design staff meet with the city’s plan checkers for the architectural, structural, electrical, plumbing and mechanical systems and other facets of a project to get immediate approvals. The city has a similar system for speedy inspections.
The Express Plan Check service costs customers $600 an hour, but customers in a hurry are willing to pay, Wilkins said. The costs cover the additional staff needed to implement the service.
Friedli, whose agency covers more territory, admits that Clark County Development Services reaches its goals for approvals only about 60 percent of the time, but said the county is working hard to catch up. The county tries to conduct an initial review of a project 21 days after applications are submitted.
The county launched a “Walk in Their Shoes” program more than three years ago that involved meeting with developers and builders and trade associations to learn about their financing, construction deadlines and other issues that affect the building industry. Friedli’s staff visited building sites to become better acquainted with the industry.
North Las Vegas is also seeing a boom fueled by the business parks that have sprung up along its Cheyenne Technology Corridor and by its residential growth. The city has one of the marquee residential developments in Southern Nevada in Aliante.
The city’s building development staff tries to get an early start working with builders before their projects are started, said Maryann Ustick, assistant city manager of development. Building officials work closely with the city’s economic development staff, who are active in bringing in new industry, to smooth the way for their projects, Ustick said.
North Las Vegas has hired an outside reviewer to help with its fast-track service for reviewing plans and expediting permits. “We have an open-door policy at the city that welcomes people to make appointments with our staff to go over the development permit process,” said Tony Vibabul, manager of the city’s permit application center.
The city tries to speed up the process by issuing permits allowing builders to begin construction, while other permits, such as landscaping and lighting approvals, are still awaiting approval, he said.
Reno and Sparks are also coping with a commercial boom fueled by residential growth. “Our valuations (of commercial and residential projects) have doubled over the past fiscal year,” said Curt Weagel, Sparks building official. “We have had to rely heavily on outside plan-checking firms to keep up. Our employees are also putting in overtime.”
He said the community has had a large increase in “big-box” warehouse projects and in large retail centers with the development of the Sparks Galleria, Sparks Crossing and Spanish Springs Town Center. “This mix has been very healthy for Sparks,” he said.
Sparks has a goal of completing initial plan reviews in three weeks, said Weagel. Sparks officials quickly review applications at the front counter to make sure the paperwork is in order. The city also has a program to review projects before they are officially submitted. Builders, developers and their staffs meet with building officials every other Wednesday to critique proposals.
Washoe County’s boom has been in residential development, which accounts for 95 percent of its permits, said Jess Traver, county building official. County land with commercial potential has been snapped up by the cities of Reno and Sparks, which have land annexation programs.
The county does have warehouse and office development in the Spanish Springs area, he said. Building officials try to get a headstart with developers of big projects by working with them as much as six months before their plans are officially submitted.
Bossard and others involved with the approval process say that conforming to the International Building Code can be confusing, both for municipalities and building design professionals. They say municipalities apply the code differently.
The Southern Nevada Building Officials Association has formed committees to review the codes and help municipalities prepare to adopt the 2006 version of the code. Previously, the city of Las Vegas operated under the 2000 code and other agencies were using the 2003 code. Builders say this has been confusing.
“Our purpose is to talk about common code issues and problems,” said Mike Bouse, chairman of the association. “We want to make sure we interpret and apply the code in the same manner. We are strong proponents of regional uniformity. ”
Bouse, who is also building and fire safety director for Henderson, said the association’s goal is to have the review of the new code completed by August or September 2006 and hold public meetings to discuss the findings. He recommends building departments give builders a six-month grace period to comply with the new code after its adoption.
