Northpinellas: Pinellas property values up 6.9%

Property values in Pinellas County rose 6.9 percent in the past year, a smaller increase than in the previous year, but still a boost to local governments' tax revenues.

In North Pinellas, lots of new construction meant that property values showed more robust growth in Tarpon Springs, Oldsmar and East Lake than they did for the county as a whole. Palm Harbor's growth lagged slightly behind the countywide pace.

Elsewhere in Pinellas, increases ranged from 4.6 percent in Largo and 6.2 percent in Clearwater to 17.4 percent in Indian Shores.

The change was good news for local officials, who said they didn't know how Sept. 11 and last year's economic downturn would affect county real estate values.

"We weren't sure in the fall how the residential market was going to react to the events of September," said Pam Dubov, assistant county property appraiser. "Now it seems safe to say, if it slowed down at all, it was very brief."

Last year, countywide tax values increased by 9.1 percent.

If values stayed low, governments would be more likely to raise tax rates or cut services. Many local governments already are worried about budgeting next year because other revenues, such as sales taxes, have dropped with the poor economy. But costs keep going up.

"Our goal has been all along to hold the line on our taxes," said County Commission Chairman Barbara Sheen Todd. "This enhances our opportunity to do that."

The increase will mean an extra $16.7-million in property tax revenue for Pinellas County, said Administrator Steve Spratt. But that doesn't stretch far in a $1.5-billion budget.

"It's not really that significant when you consider the increased cost of providing services next year," he said.

Last year, Pinellas County had $42.4-billion worth of taxable real estate. That figure increased nearly $3-billion, to $45.3-billion. That includes $562-million worth of new construction that was added to the tax rolls this year.

Around the county, the biggest increases were near the water. Many beach towns posted double-digit increases, including 14.6 percent in Madeira Beach and 15.5 percent in Redington Beach.

Annexations helped some cities add to their bottom lines. Largo pulled in $15-million worth of annexed property, while Pinellas Park added $25-million to its values.

For many homeowners, the increase in value doesn't translate to the same increase in their tax bills. That's because the state's Save Our Homes tax cap limits the amount that a home's value can rise in one year. This year, the limit is set at 1.6 percent.

Tarpon Springs crosses $1-billion mark

In Tarpon Springs, property values went up by 9.6 percent, in part because of new homes, a new Walgreens on Pinellas Avenue and improvements to Classic Corvettes, said Charlie Attardo, business services specialist for the city.

Housing developments such as North Lake off Keystone Road, and Whitcomb Pointe and Lansden Court along Whitcomb Bayou have been a big boost to the tax base, he said.

"We're hoping that property values in general will continue to go up, as people continue to develop not only in these areas but also north of the Anclote River," Attardo said.

The value of taxable real estate in Tarpon Springs rose from $954.6-million to nearly $1.05-billion. That growth included $40.1-million in new construction.

Developers and others continue to talk to the city about potential home developments and new businesses, which is a good sign for future growth, he said.

"Tarpon probably has more developable land than any other city in the county," Attardo said.

Big spenders waiting in Palm Harbor?

The taxable property value in Palm Harbor rose 5.9 percent, lagging slightly behind the countywide increase of 6.9 percent.

Mike Smith, chairman of Palm Harbor Community Services Agency, said Palm Harbor real estate values jumped just after Palm Harbor University High School opened in 1996.

"It could be the home values are now leveling off," Smith said.

The total value of property in the Palm Harbor community services taxing district rose from $2.7-billion to nearly $2.86-billion. Of the increase, $38.6-million came from new construction.

Paul and Deborah Langrock, who specialize in homes sales in Palm Harbor with Re/Max Realtec Group, said the downturn in the economy appears to have hit hardest the higher-priced home market.

"I think with the economy the way it is, the buyers for the higher priced homes are less," Mrs. Langrock said.

Because of the economic uncertainty, she said, people thinking about jumping up to a home in the $325,000 range may be holding off.

That has not been the case for homes selling for under $200,000, which are appreciating very quickly, they said.

"It appears to me the lower priced homes are selling for more," Mrs. Langrock said.

In Oldsmar, building drives growth

Fueled by $40.2-million worth of new construction, Oldsmar's property values jumped by 10.2 percent.

Citywide, the estimated value of real estate jumped from $630-million last year to $694-million this year. Big projects such as the new Wal-Mart Supercenter and a new Holiday Inn helped drive that growth, Dubov said.

Factor out that new construction, however, and the growth in property values shrinks to 3.8 percent, which is below the 5.5 percent county average. Oldsmar's overall increase in values last year was 14.2 percent.

In downtown Oldsmar's tax-increment financing district, new construction helped propel property values up nearly 31 percent. The value of property in the district jumped from $21.4-million to $28-million.

East Lake crosses $2-billion mark

In the East Lake fire district, the overall increase in property values was 8.6 percent, from $1.87-billion last year to more than $2.03-billion this year.

When new construction is factored out, the bump in property values equals the county's 5.5 percent average.

East Lake resident and local real estate agent Don Flynn sees the 8.9 percent increase in East Lake property values as an indication that more investors are choosing to put their money in real estate rather than other investments.

"People are staying out of the stock market right now," said Flynn, who is vice chairman of the civic group East Lake 2020.

-- Staff writers Julie Church, Katherine Gazella and Robert Farley contributed to this report.

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