A local developer warned the Mexico Planning and Zoning Commission last week the city of Mexico cannot compete with neighboring cities when it comes to the cost of building.

Developer Jack Creason made the warning at a meeting of the P&Z on Tuesday, Sept. 5, at City Hall. 

“We have a lot of challenges monetarily,” Creason said.

Creson’s warning came during a discussion about the city’s ordinance that requires sidewalks in new subdivisions. The ordinance is just one issue builders have that increases the cost of construction in Mexico. Creason said it can cost between $5,000 and $10,000 more to build a house in Mexico than it is in neighboring Centralia.

“Builders moved there because they were building the house with less upfront costs,” Creason said.

Creason said in other cities things are streamlined for a builder to make things easier. In Mexico, a builder has to deal with several different entities including utilities like water. Creason said the decision by Mexico to go with Missouri American Water for services makes it harder on builders.

“They are not easy to deal with from any standpoint,” Creason said about the water company.

Creason said in other towns there’s a contact person or office that handles everything.

“It just makes it more difficult for the builder,” Creason said. “They essentially go to one person who is an employee of the city and is there to help and encourage the builder and make it as easy as possible for the builder to handle all of the problems. Normally we go to one or two people in those communities and that’s all you do.”

Creason said it can take five to 10 years for a developer to begin a project when the last house is sold. 

“It’s turned off once a developer suddenly decides he cannot afford to build a house or build infrastructure and put it in Mexico,” Creason said. “This takes a long time.”

Commissioner Mike Beardslee said he would like to see more of a comparison with cities that have the same challenges as Mexico as opposed to places like Centralia or Fulton. Beardslee said they were not comparing apples to apples.

“It’s not apples to apples and that’s the problem,” Creason said. “The builder has to deal with that. He has a choice to go to Centralia or Fulton where he doesn’t have to deal with that and has a monetary incentive to build there. What’s he going to do? Stay in Mexico? We’ve got to make this apple a strawberry or something and bring them back over here and not discourage them to leave.”

Last year the city of Mexico used American Rescue Plan Act (ARPA) funds to begin an incentive program for developers. The city along with Audrain County  will pay a developer up to $10,000 per new home to help pay for infrastructure costs. The money must be used to help pay for water and sewer costs. However, those funds were a one-time shot and will run out. Public Works Director Drew Williford said if the city is going to continue the program the council will have to find the money.

“Any future funding that would be greatly considered by the city council to set aside, it would have to figure out how that would work,” Williford said.

When the subject of sidewalks was brought up Creason said that’s another issue that will keep builders away.

“We won’t be doing it if we can’t afford to,” Creason said. “It’s kind of important which way you go. We’ve got to keep the momentum going.”