At last night's Hamlet meeting there was lengthy discussion by residents in the middle of the Board meeting on if Development Pays for Itself.
Duh! Of course it does!
This was the viewpoint promoted in detail last night by lawyer Ed Trompke from Lake Oswego. And he's correct.
IF you are building this:
Or this:
or this:
Yes, Industrial, Commercial and
Farms are the three types of new construction that can either generate enough revenue or cost the cities so little that they're profitable.
But Residential is a loss leader. There are many studies online that support this which some of which I'll list below. They are mainly looking at it from the viewpoint of a city, not that of the fractured neighborhoods, the happy developer or the carpenter who has a new temporary job. But when it comes time to develop we will be city-zens and affected by their viewpoints.
One paragraph:
This study concludes that population growth pays for its fiscal costs only in the most carefully controlled and unrealistically isolated scenarios.
In Florida they tried to pass a law that allowed residents to vote to allow or deny large developments in their cities. The ads on TV were extreme of course, and they showed how Growth and Development costs the taxpayers. Forida Politifact wrote:
Politifact Florida found through an investigative report that “generally, studies suggest that new large single family developments do not pay for themselves. But infill development (taking an empty lot in an urban area) or redevelopment is much more likely to pay for itself. So are commercial and industrial development projects.” Research suggests that sprawling residential development costs taxpayers $1.40 to $1.50 for every $1.00 of revenue raised by the new tax base. Sustainable growth including infill and redevelopment are more likely to reap a net positive for for the taxpayers because the infrastructure, roads and facilities are already provided to the area.
So when making the argument of whether on not Growth or Development pays for itself
it's important to specify just what kind of development you're talking about. Small clustered housing developments in among the trails? Not likely.
When a Developer says that new projects pay for themselves, they are talking about paying SDCs (System Development Charges) and they are talking about today's limited construction zone reality. Maybe it will, but it won't pay for what changes need to happen a mile or three away or that there will be future costs not covered.
And of course added costs for current residents include the fact we'll be city-zens then and will pay city taxes.
But happily the Developer has a solution for that too - let's put in some industrial land and commercial towers to help pay the taxes for the services generated by the housing growth you didn't want in the first place!
The only study I saw that contradicts this is predictably from the Homebuilder's Association.Which brings me back around to Mr. Trompke. Who is he and why is this non-resident pontificating at our meetings and why is he co-writing the Stafford Plan?
WHO: He is an attorney and specializes in land-use law. So he knows more about all of this than any of us. He's also involved with the Homeowner's Association, Clackamas County Business Alliance and works with local Stafford developers. I'm pretty sure it's fair to say he has a bias towards helping those organizations and individuals to achieve their stated goals of bringing us into the UGB and proceeding with developing us.
There's one case written up in legaleeze online where he is intimately involved in West Linn SDCs. In fact he's trying to get them lowered for his client. Fine, no one wants to pay something more than what they think is fair. But it's also a reminder that development will pay SDC's only if they can't get out of them. It's Business. They are not benevolent organizations that want to create a better world for your kids.
WHY is he writing our Stafford Plan? I don't know that. Maybe because none of us stepped up to do it ourselves?
So here are a few links. Any google search will bring you more here, in Canada, in Europe and everywhere.
http://betterchelmsford.com/inconvenient-truth.htmlWhile the results might shock someone like Rick Santorum, who believes perpetual growth is somehow possible, they nonetheless serve to corroborate work done by Eban Fodor earlier in 2012 – namely, that the widely held notion that growth "pays for itself" is one of the most incorrect notions circulating in the popular consciousness.
See more at:
http://reason.org/blog/show/does-growth-pay-for-itself#sthash.zDLn0Q50.dpuf
http://caselaw.findlaw.com/or-court-of-appeals/1079991.html
By the way, Shameless self promotion: I'm Carol Yamada and I'm
running for Stafford Hamlet Board. I would really appreciate your vote!