City Planning Director Kip Green said building permits are down considerably from last year, with the slowdown beginning back in August 2007. But there's some good news, as the commercial sector takes a long-term view and anticipates the end of economic hard times.

Last month, the city issued only four permits for residential construction, which Green described as "well below average." Last year, the city was issuing 10 to 14 permits a month.

As for subdivisions, Green says there are a great many lots where the preliminary plats have been granted, but construction has not begun. However, some of these are "starting to come online," Green noted.

"The thing we have noticed is, we have not seen a big rush to bring those preliminarily approved plats online to a final plat (for the beginning of construction)." Green explained.

However, no new subdivisions are being proposed and none have come before the city's planning commission in the past few months.

Some of the subdivisions that have already been approved by the planning commission have begun grading work on the properties, "but they are not trying to push as in paying for utilities instillation, which is one of the larger expenses in starting a development."

Green agreed that developers are likely waiting to see if they will be able to sell the homes before committing to building them.

But work is continuing at three of the largest subdivisions: Briarwood on Fairfield Pike will soon be starting its grading work. Stones Throw on the southern part of town is still being constructed and Lexington Cove will soon come on line.

The housing slow down should not impact the city tax base at all, Green explained, because services tend to grow along with the housing growth. The city is seeing an increase in housing and duplex construction, which tends to offset any growth in expenses to Shelbyville due to the fact that it puts more people in a higher density area.

Another item noticed by the planning department is that infield lots, property that has been vacant over time, are now being purchased and homes are being built on those lots.

But Green said that an expansion in commercial permits have replaced the housing slow down, with businesses expecting the economic situation to turn around, which is projected to occur in late summer.

"We are seeing new commercial businesses that are recognizing our traffic flow, which we have still maintained," Green said. "With the bypass coming in, there will be an increased interest both in the eastern and northern extremity of Shelbyville."

Green says he has been watching financial projections and says that some businesses are expecting an upswing to occur in August of 2008 while others are looking forward to the spring of 2009.

"With the industrial boom that we've had, the interest in commercial activity that we're experiencing now ... that injection of interest and increase in commerce could spur our local economy sooner than later," Green said.