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Read more about how downtown and base-area construction is transforming Steamboat Springs.

Steamboat Springs — Routt County and Steamboat Springs flirted with a new record for construction valuation in 2006 but never put it over the top. But Chief Building Department Official Carl Dunham says a record is more certain in 2007.

Dunham's department anticipates it could review plans this year representing 3 million square feet of new construction near the base of the ski mountain and another 500,000 square feet in downtown Steamboat Springs.

A significant portion of the 3.5 million square feet wouldn't be built until second and third phases in future years. But that number doesn't include single-family homes.

"If most of that gets built, this year will be the banner year," Dunham said.

Steamboat's record year was 1998 when the valuation of new construction for building permit purposes was $203.6 million. That was the year the Steamboat Grand Resort Hotel, Yampa Valley Medical Center, Hayden Station power plant retrofit and Steamboat Springs High School remodel all went forward.

Construction year 2005 came within $1.5 million of the record, and 2006 ended at $188.5 million, but last year's total is a little misleading, Dunham said.

"At the end of the year, there were some infrastructure delays on a $20 million project that carried over to the 2007 books," he said. "So we started this year with $20 million."

Additional permits through the end of February are a relatively modest $10 million (2006 had already seen $20 million in new permit applications by the end of February), but that trend is due to change.

"It starts to ramp up now," Dunham said.

It's important to understand that valuation for building permits isn't the same as the retail price of new real estate product in Steamboat's market, nor is it always the equivalent of builders' construction costs.

Large building projects are valued based on national standard's Dunham said. His department bases valuation on average cost per square foot for different types of buildings. In the case of single-family and duplex homes, the local building department adjusts the valuation closer to the contracted cost.

A trio of mixed residential-commercial projects are at the front of the line this spring. Alpenglo is under construction at Lincoln Avenue and Sixth Street. Two more similar projects under separate development groups, The Victoria and The Olympian, have applied for permits. Dunham expects to see the permit documents for Trailhead Lodge at Wildhorse Meadows early in May and is aware that the development team for One Steamboat Place in Gondola Square is working hard on its infrastructure plans.

One Steamboat Place would create 500,000 square feet of luxury condominiums and commercial space. Trailhead Lodge would comprise 173,000 square feet.

This early in the season, Dunham said, turnaround time for building permits is fast.

"Right now, we're only a week out on plan review," he said. "We have a competent plan review staff that can handle the load."

Dunham said he's looking forward to the return of a seasonal worker and has asked for two more employees on his field inspection staff.

Despite the drama of a half-dozen large new projects moving forward in downtown Steamboat this summer, Dunham thinks the existence of about 5,000 new single-family building lots on Routt County's horizon has far more potential to change the valley. He said the Brown property in the West of Steamboat zone holds the potential for about 1,500 lots, there are another 2,500 envisioned for Hayden and between 800 and 1,000 in Stagecoach, all outside the existing city limits.

"When you hear that a 40,000-square-foot building is being built in downtown, we'll probably feel the impact for a year or two, but we hope that it blends into the community," he said. "But when you think about 5,000 new lots coming, that's a major impact. How many new vehicles does that represent? Are we looking at 10,000 more cars in the valley?"