Private construction grows, but other building stagnant

Some Long Island builders are expressing cautious optimism about increased private construction here as the federal government Tuesday said construction spending nationwide grew in April by the largest amount in nearly a decade.

However, local and state groups said public construction in New York was at a standstill and commercial real estate markets, especially office properties, were still struggling.

Nationally, the Commerce Department said construction spending rose more than expected by 2.7 percent in April compared with March, the largest bump since August 2000. There are no local figures for comparison.

Ira Tane, president of the Long Island Builders Institute, said compared to all the "doom and gloom" two years ago, more customers seem willing to start spending again.

Tane, a developer based in Huntington Station, said he would soon begin work on a house that he expected to presell. He said he was "seeing a lot more activity" among other builders.

Len Axinn, who has been marketing a new housing development in Port Jefferson for a couple of years, said the pace of working on only one deal at a time has gradually picked up. "Now, we're working with four or five different serious customers," said Axinn, a partner at Ronkonkoma-based Island Estates Homes. "There's enough confidence in the marketplace that they can sell their homes," and buy up.

Alan Ehl, regional director for the Empire State Regional Council of Carpenters, said its union members have recently been getting more work. For the past six months compared with the previous year, "there is a slight increase in hours," he said, but he added that the numbers were still lower than two years ago.

The Associated General Contractors of America cited federal stimulus money for helping to drive growth nationally. But in New York State, officials have not approved new contracts while a budget dispute drags on. "The events of the past couple months have wasted any impact" from the stimulus, said Steve Stallmer, vice president for government and public affairs for the New York chapter of the group.

Marc Herbst, executive director of the Long Island Contractors' Association, said, "On the public works side, municipal spending, it's stagnant. We're still in a bad situation."

Mitchell Rechler, president of the Association for a Better Long Island, said as values of office properties continue to sink, "Things are going to get worse over the next three to four years before they get better" in that segment of construction.