An annual study of new construction in the county has indicated that for the first time in almost a decade, building permits issued for traditional, stick-built houses and mobile homes are almost equal.

According to the recently released 2000 Building Report compiled by the Otsego County Planning Department, the number of building permits for mobile homes dropped to 48 percent last year, its lowest level since 1990 when the planning department began tracking annual building statistics.

Over that period, mobile home permits climbed at one point to 90 percent of the total for single family residential permits. Mobile homes accounted for 113 of the residential permits issued last year; down from a high of 173 in 1998.

Increasing numbers of mobile homes can shift the property tax burden onto other properties because, according to the report authored by Planning Director Diane Carlton, mobile homes generate fewer tax dollars per square foot than similarly sized stick/modular homes.

Carlton said Tuesday she would not dare to hazard a guess as to what is driving the decline in mobile homes, but said it was a "good trend."

Growth in stick built/modular homes was seen in the towns of Middlefield and Hartwick last year. Middlefield had the highest number - 13 - of stick built/modular permits.

Hartwick was a close second with 12. Together, the two towns accounted for 47 permits or 20 percent of all single-family construction in the county during 2000.

One factor which may account for the growth in stick built homes is the low home mortgage rate. Modular homes are also not as affordable as they were once touted to be, Carlton said.

By the time new home builders purchase a lot, drill a well and put a septic system the difference in cost between stick built and modular is not that great.

"Many people decide they might as well stick build," she said.

The most serious issue stemming from the findings is the lack of commercial development to offset residential development - particularly mobile homes - which take more in taxes than they generate, the report stated.

"Clearly, economic development is a major priority for the county, not just for job creation, but also to stabilize the property tax which is becoming more and more of a burden to the middle class who own stick built/modular residential property. The county's efforts in economic development are essential for the long-term vitality of the region," Carlton wrote in the report.

The figures show a trend of slow commercial and industrial growth in the county. New businesses are concentrated on the south side of Oneonta and along Route 28 in Milford and Hartwick. Those businesses generally are retail and service establishments and include grocery stores, fast food restaurant and chain stores. They make a contribution to the tax base, but typically provide low wage jobs and in the case of absentee corporate ownership, the bulk of the profits are often shifted out of the area.

"In contrast, a new local entrepreneur contributes to that tax base, and a larger share of the profits are reinvested into the local economy rather than exported out of the county," the report states.

There were 500 permits issued during the year for additions or modifications to residences that totaled close to $8 million and almost half the total for all new residential construction which was $16.5 million.

Copies of the report are available from the department.