By Sean Hauser
s.hauser@krdo.com

Canon City - Officials are in a face off with homebuilders, this after the City announces an increase on building permit fees.

Members of the Fremont Homebuilders Association say they've dealt with the increased fees in the past, but with this latest fee coming at a time when the housing market is in a crunch, local homebuilders in Canon City say they've had enough.

"Why are you asking us to increase the fee's when we cant even sell the homes for the prices we have them listed at now?" said Chris Jenkins, owner of Jenkins Homes Inc.

"It's terrible timing, obviously construction has slowed down," said John Fontecchio, Vice President of Johnny's Plumbing and Hydronics.

Both men are members of the Fremont Homebuilders Association.  They say, the 8% increase in building permit fee's handed down by Canon City, City Council will drive both their businesses, as well as their customers out of Canon City.

"There's such a small pool of buyers out there today that the few that are coming in are very dollar-wise," said Jenkins.

According to Jenkins, a building permit costs $1,700 in Canon City.  Just down the road in Pueblo County, the same exact permit would cost $850.  And who absorbs those costs?  It's usually the homebuyer.

"Those numbers just don't work in today's economy," said Jenkins.

City Administrator Steve Rabe denied our requests to go on camera.  He says this is a non-issue, and that he would be wasting taxpayers' money by spending time talking about it.  However, he did say that the City was forced to show an increase in revenue by TABOR.  In turn, they decided to raise the cost of the permit fees, but will the homebuilders will receive some of the money back in a rebate.  Rabe says the rebate will actually result in decreased fees when it's all said and done.

But the Homebuilders Association isn't buying it.

"The building community is not looking for a rebate, what they are looking for is a reduction of fees," said Fontecchio.

"Were opposed to the rebate," said Jenkins.  "That really isn't something we can pass along to the home buyer at the very beginning."

The Homebuilders met with City Council Wednesday to try and come to some sort of resolution in the battle.