New residential construction is on the rise in Oxford Township.
A total of 106 building permits were applied for in 2014 and 95 were issued, according to figures supplied by the building department.
That’s two-and-a-half times the number of housing starts in 2012. Back then, building permits were pulled for 33 single family homes and four townhouses with two units each.
‘People know this is a nice place to live,? said township Trustee Jack Curtis, who serves on the planning commission and chairs the Economic Development Subcommittee.
Curtis said he’s talked to lots of folks who have moved here from cities like Grosse Pointe, Ferndale and Warren, and they were attracted by features such as the parks and schools.
‘They buy here because of the amenities Oxford has to offer,? he said. ‘People love this town once they get here.?
The diversity of the available land is another selling point, according to Curtis.
Whether it’s 1-acre lots or 10-acre lots, he said, ‘There’s something for everyone. You can live right in the village or in a newer subdivision or on some acreage off a dirt road.?
Combined, all of the 2014 residential development has a construction value of $25.3 million, according to figures provided by the building department. Individual construction values range from $170,317 to $566,070.
The lowest value belongs to a 1,636-square-foot detached condominium with a 400-square-foot attached garage. It’s located on Bridge Water.
The highest value belongs to a 3,839-square-foot single family home with a 1,277-square-foot attached garage and a 3,231-square-foot finished basement. It’s located on N. Coats Rd.
The second highest construction value is $513,393 for a 4,978-square-foot single family home with a 1,082-square-foot attached garage on Ottawa Trail Ct.
Two residential projects have construction values in the $440,000 range while 17 houses have construction values between $300,000 and $400,000.
Curtis believes Oxford is going to continue to experience more residential growth ‘as people get fed up? with high taxes and overspending in other communities.
He pointed out how the township’s 0.95-mill operating tax has remained the same since the 1990s due to the ‘frugality? of the township board.
‘People see that. People know that we’re looking out for their money,? he said.
It should be noted that although the township board has maintained the same operating rate, other township millages, such as police and fire, have experienced voter-approved increases over the years.
The good news for the township’s water and sewer funds is the 95 building permits that were issued last year generated a total of $669,225 in water tap and sewer connection fees plus water construction fees.
The township charges $6,075 per Residential Equivalent Unit (REU) to hook up to the municipal water system and $3,500 per REU to hook up to the sewer system. It also charges a $100 water construction fee.
A single family home equals 1 REU.
It’s not all gravy for the township
Even though the township has new homes coming on the tax roll, Treasurer Joe Ferrari said it’s not a 100 percent gain for the municipality because tax revenue is being lost in other areas.
For example, last year, Oakland County Equalization took another look at Independence Village of Waterstone, a 145-unit retirement community located on W. Market St., and is lowering its assessed and taxable values by approximately $1.7 million for 2015.
The 148,898-square-foot facility had a value of $6.2 million. It’s being reduced to $4.5 million.
Based on the non-homestead tax rate of 52.213 mills, Ferrari estimated the value reduction will result in a loss of almost $90,000 for the township, public library, police, fire, parks and recreation, school districts (local and intermediate), county, community college and state combined.
‘They’re like one of (the township’s) top 10 taxpayers,? he said.
Dave Hieber, manager of Oakland County Equalization, explained his division took another look at Independence Village’s value at the request of its owner, the Brighton-based Senior Village Management.
Senior Village Management purchased the retirement community in December 2010 for $7.84 million or approximately $54,000 per unit.
But the county had the true cash value set at $85,500 per unit, which gave the whole facility a true cash value of $12.4 million and an assessed value of $6.2 million.
‘They never noticed (the difference), never appealed it when they bought the thing,? Hieber said.
Senior Village Management brought the issue to the county’s attention last year, but missed the deadline to appeal the value.
‘So, there was nothing we could do for 2014, but they wanted to try to work with us for 2015 to see if we would review the property,? Hieber said.
In determining the property’s value, the county factored in the sale price, the facility’s income and expenses for the past few years, and the sale prices for similar facilities around the county, he explained.
The closest similar property the county had to compare Independence Village to was Milford Park Place, a 113-unit assisting living community in Milford that sold for $6.1 million or approximately $54,000 per unit.
‘There’s not a lot of comps. It’s not like doing a house,? Hieber noted. ‘I would call Milford and Oxford similar communities.?
Ultimately, Senior Village Management agreed to a true cash value of $62,000 per unit, which Hieber said ‘is a sizeable reduction.?
‘We made a determination that the property was overvalued,? he said.
Hieber noted Independence Village’s new value only affects its property taxes going forward. It’s not retroactive.
‘So, there will be no paybacks,? he said.
Besides Independence Village, the township is also losing property tax revenue due to changes made by the state, according to Ferrari.
‘Everybody thinks all these new homes just means increased value (for the township) and that used to be the way it was, but you’ve got the state now tinkering with a lot of things (related to local finance),? he explained.
For instance, in 2013, the state created a 100 percent exemption from all property taxes for disabled veterans. This does not apply to special assessments.
According to the law, the veteran must be a Michigan resident and meet certain criteria such as being ‘permanently and totally disabled as a result of military service? or rated by the U.S. Department of Veterans Affairs as ‘unemployable.?
Hieber said there were 16 disabled veteran exemptions in Oxford in 2014. Fourteen were in the township and two in the village.
The combined taxable value of all the exempt properties equals $1.092 million, which breaks down to $978,350 in the township and $113,970 in the village, according to Hieber.
Ferrari’s also unsure how the state’s elimination of personal property taxes ? the taxes paid on equipment, machinery, tools and furniture used for commercial and industrial purposes ? is going to ultimately impact the township’s coffers.
‘It’s a phase out and none of us really knows exactly how it’s going to work,? he said. ‘Supposedly, (the revenue is) going to be replaced. That’s what we’re told. Whether that happens or not is another issue.?