Demopolis councilman says city must attract homebuilders to address housing shortage

Demopolis City Councilman Hugh Overmyer said he wants the city to do more to get homebuilders to come to the Jewel of the Black Belt.

Overmyer told the Black Belt News Network that he and other city leaders have made several road trips over the last four years to encourage homebuilders to construct some much-needed houses in Demopolis.

“So far, homebuilders are satisfied to stay in bigger cities and make their money,” Overmyer said. “We need to do something about it.”

Demopolis needs as many as 500 homes, according to some estimates. Overmyer said the last subdivision in Demopolis was built in 2008, and that was only about 15 homes.

One problem is that builders look at activity when deciding which community to build in, “and there hasn’t been much” in the way of “home starts” for years, Overmyer said.

The inventory of homes in Demopolis was sufficient for a small Black Belt city, but the city now has the good problem of housing new residents coming to staff the Alabama School of Healthcare Sciences and the West Alabama Corridor construction project.

“We need builders who have experience building subdivisions,” Overmyer said. “There’s no telling how many people we have lost to other cities because we have not got the inventory of homes. People can’t find a place to live.”

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Overmyer, who is a developer, said if Demopolis wants to attract builders, the city must take on some of the preparation work developers typically do.

At the city council’s Aug. 20 meeting, Overmyer proposed that the city hire a construction engineer to evaluate up to six potential subdivision sites. The engineer would assess the property based on location, soil, drainage and accessibility to utilities.

The expense of hiring an engineer to evaluate a site is typically handled by the developer, but Overmyer said having reports already in hand might help entice builders. The report should cost between $10,000 and $15,000, he said.

Some of the proposed sites are on the west side of Demopolis, some are central to Highway 80, and some are south of Highway 80, according to Overmyer. The sites are undeveloped land of 20 to 200 acres.

In addition to doing the engineering, the city may even have to purchase land and put in the infrastructure – water, sewer, streets and curbs, Overmyer said. That would leave the homebuilder only at risk for the cost of building the house, he said. The city would get its money back when the house sells.

Again, the subdivision developer normally takes on that upfront expense, but Overmyer said Demopolis must “think outside the box” to entice home builders to the market.

Overmyer said at the next city council meeting he will ask the mayor and city council to first consider hiring the construction engineer. He hopes the council will discuss purchasing property and placing infrastructure into a subdivision site later.