The City Council rejected earlier this month new restrictions on the minimum size of homes in partly completed subdivisions after builders warned that the measure could hinder a turnaround in their industry. The vote was 7-3.

The bill was pushed by Councilman Bob Kneemiller, who said some constituents were worried that their home values would drop when significantly smaller residences were built nearby.

“These residents have invested substantial amounts of money, and they want their investments protected,” Kneemiller said.

Officials with the Home Builders Association of St. Louis and Eastern Missouri argued that size alone didn’t determine values.

They said size restrictions actually could hurt the worth of current homes if the limits resulted in a neighborhood with large gaps for years and years.

“It’s going to cause a lot more harm than any potential good,” said one councilman who agreed with the builders, Richard Veit. He also questioned if government should limit “the free market-place.”

The controversy was centered on newer areas of the city south of Interstate 70. It was amoung several in St. Charles County in which builders’ efforts to respond to a recession-spurred demand for smaller homes have clashed with current residents’ desire to protect property values.

The council in O’Fallon, Mo., rejected a similar bill in February. But in Wentzville, neighborhood opposition spurred aldermen last month to turn down one builder’s request to significantly lower the square-footage minimum for homes in a particular subdivision.

Under the St. Charles proposal defeated, size restrictions would have increased as a subdivision moved closer to completion.

The touchest standard was for projects at least 60 percent finished. In those areas, a new home could be no more than 10 percent smaller than the smallest current residence.

City officials say St. Charles already sets minimums for the size of lots, but in many cases current ordinances don’t bar builders from reducing the size of the homes it sells for those lots.

Councilwoman Laurie Feldman, one of the bill’s supporters, said the chances of passage were hurt by the low turnout for a public meeting called by the council Monday night with area builders.

About 40 people attended, but officials said only about a third expressed concerns about the size of new homes. The rest were there on other issues.

“That sent a message, ” Feldman said.

Kneemiller had a different view. “You always have people that are really passionate about something who will come out” to a meeting and other supporters who don’t, he said.

By: Mark Schlinkman * mschlinkmann@post-dispatch.com * 636-255-7203