Volusia County's construction boom continues in full gear, unaffected by the recent trend of interest rates creeping upward.

Morgan Gilreath, who keeps the records on construction permits as the county’s property appraiser, said there are no indications the construction explosion will slow anytime soon.

“I can tell you from the analysis we’ve seen, we don't see a slow down at all,” he said. “I believe we're going to see an increase in construction for some time to come.”

Current figures substantiate that prediction. Early this year, Gilreath reported that 2002 had been a record year for construction, racking up the largest dollar amount in value of building projects, and he predicted it would continue this year. Figures for the first two quarters bear out that prediction. Commercial building project values in Volusia County for the first quarter of the year (January-March) were $31 million. The value of the commercial building projects reported for the second quarter (April-June) went up to $38.8 million. Residential permits rose from $197 million for the first quarter to $198.5 million for the second quarter.

While there've been periods when construction was hot and builders and developers prospered, Gilreath believes this time the trend runs deeper. He explained that the boom is fueled by a combination of factors, changes that will have a permanent impact on the county's future.

The most obvious factor, according to Gilreath, is the improved I-4 corridor to Orlando. The change is as much psychological as physical, he believes. "The paradigm shifted and how that happens . . . I'm not sure anyone knows the formula," he said. "Distance is a relative thing, and while five years ago people viewed the distance to Seminole County and Orlando as just too far to commute, now it's starting to look more normal to people. Perception is 90 percent of reality."

The new perception for Volusia residents is that the area is part of Greater Metropolitan Central Florida - which means we feel we are in the same basic area as Orlando. Gilreath said a commute of 30 minutes to an hour has become something people regard as doable now, while just five years ago that would have been considered impossible.

Dave Castagnacci, executive director of VCARD (Volusia County Association for Responsible Development), agrees construction starts are accelerating with no slow down in sight. He, too, sees the change as encompassing almost every corner of the county.

Construction projects are popping up throughout West Volusia, in conjunction with the opening of the I-4 corridor, he reports. And eastern Volusia is equally active with a number of projects along the western fringe of Daytona Beach, particularly centered around the interchange of LPGA Boulevard and I-95 and in Port Orange, where the Super Target opened at 1-95 and Dunlawton Boulevard just this July.

In West Volusia, once sleepy small towns are undergoing transformations into a 21st century boom.

In the center of the activity is Orange City, where Chester Murray, director of development services, said the city’s location is putting Orange City at the center of a new commercial and residential building hub.

Murray reports that permits have been approved for almost twice as many new housing units as the official population of the city. Construction of four new schools in the area can be expected to attract even more new residents in the future. In Daytona Beach, Greg France, the city's permit and licensing administrator, said the city has "$182 million in building projects going on right now." This includes the continuation of the Ocean Walk Redevelopment Project, with construction of the planned north tower, and a $50 million Atlantic Beach condominium project, also on South Atlantic Boulevard.

"I'd says it's a healthy and robust economy," he said.

While most of the commercial expansion is occurring around either the I-4 or I-95 interchanges, residential growth is not so limited. The prime locations are waterfront properties - with the value of both existing and developing properties soaring.

Scott McCarthy, president of Volusia County's Home Builders Association, agrees the construction boom is here to stay.

While popular wisdom may dictate that the rise in mortgage interest rates should have a chilling effect on home construction projects, McCarthy said he doesn't see that happening here. “People who have been teetering on the edge might get off the fence and decide to go for it,” he speculated. “It might spark a little more action in the short term.”

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