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Building permits down, but city expects to collect more fees

OLIVE BRANCH — Olive Branch may record fewer residential building permits this year than ever before, but the city still expects to collect more in permit fees because of big-box business development.

The Commercial Appeal reports city officials collected $296,000 in building permit fees last year but expect to collect $375,000 this year, an increase of $79,000.

The bulk of fees are collected through new or renovated businesses and industries. Permit fees are based on the value of the building being constructed.

Mayor Sam Rikard said revenue would be up for 2011 because of companies like Anda Distribution, a generic pharmaceuticals distributor, decided to invest in Olive Branch.

Meanwhile, the city is on track to issue about 90 single-family building permits this year, seven fewer than the smallest amount on record.


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