| Editorial: Dying to Develop | |
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The developer's war cry, "My property rights are being denied!" sounds very much like an equities investor whose stock is not doing as well as they would like. That whiny cry is becoming irritatingly tired and trite these days. Complaints from owners run the gamut from the costs associated with procuring the admittedly- and seemingly-endless studies required by our various governmental agencies, permit fees, and the various mitigation fees, to the ever-increasing lead times associated with this process. While I am not unsympathetic to those cries of frustration, the perspective on the other side of this issue deserves closer inspection, especially when one considers the fact that owners desiring to develop their land are in the minority, not majority. Here are a few perspectives, some new, some not…. Developing property is a personal choice: While it's true the cost can be high for developing property, the decision to do so is a selection and personal option, not a mandatory requirement. When an owner decides to develop their property, they do so because they have estimated the costs and decided they will make a profit by doing so, despite the onerous regulations. Most of the time development can be accomplished in a relatively short time period and close to budget, if realistic forecasts were used. Future "Nest Egg" Value: Most private individuals invest in real estate because they plan on living on the property, renting it, or holding it as a "sure bet" that over time it will result in the historical 10% annual increase. Counting on one's home and property as a windfall portion of their retirement portfolio indicates flawed and irresponsible financial planning. Guaranteed Profit?: An owner feeling that he or she is "owed" or guaranteed an obscene profit simply because they own it, is the same as someone expecting a guaranteed profit when they buy a stock. Once you invest your money by purchasing something -- whether it be land or equities -- you OWN it, and your investment is then subject to the vagaries of the market and other influences upon which you have little or no control. Other Taxpayers pay for your development: At some point development results in other taxpayers having to financially support the strain on and improvements to the existing infrastructure. No matter whether it's 5, 10 or 500 new homes being built, an additional burden is placed upon current roads, parks, schools, sewer, water, police and other city functions. And this is a vital fact: At some point the new development(s) will necessitate that new infrastructure be built (water and sewer capacity, roadway, etc.), which had heretofore been adequate for the existing population until the newcomers arrived on the scene. Development results in a profit to the city: This last point is the worst rationalization of them all. What little revenue received from permit and mitigation fees does not offset the cost of building new infrastructure to accommodate the increased level of development. The rationale that new development will "create additional tax base" for the city is equally faulty. If this were so, why is the city having such financial difficulties? And why do government agencies constantly struggle to keep their head above water, even when they do not provide basic services which keep pace with the development they have allowed, even encouraged, to run rampant? I will answer my own question. Development is welcomed with open arms because of the flawed assumption that the revenue received will go toward the infrastructrual improvements that seldom occur. In the case of Sultan, its financial resources were simply not capable of adding 300 homes and approximately 900 people within an 18-month period. This has resulted in a financial burden too great to bear. And the "tax base" those homes will provide will only partially defray the cost of paying for outstanding bonds on already-existing debt. The financial struggle because of the LID 97 (a.k.a., "Wagley Creek LID") has been monumental. Despite what the city is trying to tell residents now, it is the single most relevant reason the city is in such dire budgetary circumstances. The city was already burdened with the cost of paying for a new city hall, when shortly thereafter it faced the challenge of researching, planning and constructing a $2.5 million LID to the east end of town. But into this atmosphere came the little matter of the city's neglect by ignoring mandatory construction guidelines, thereby decimating sensitive Wagley Creek stream buffer and wetland areas. The currently-estimated cost burden of $4.5 million will now force property to be developed at its most dense level in order to attempt to achieve a profit,,,which will increase the need for new infrastructure…which will increase the need for higher taxes and utility bills. A change is required in order to stop this Catch-22 cycle. It's like the old ditty, "The Bear Went Over the Mountain." When the bear gets to the top, all he sees is another mountain to climb, endlessly repeating the same tired and fruitless effort. It amazes me that there are so many militant property rights' proponents in Sultan, when one considers these points. It's bad enough that so large a proportion of the development seems to be initiated by the same people over and over again; different day, same greed, but to make it worse, the taxpayers of Sultan will receive no benefit except increased taxes and utility bills. The burden of paying for requirement infrastructure improvements will simply be passed along to those people least able to shoulder the burden. But the worst thing is, we let it happen. Perhaps this Catch-22 scenario can be "excused" somewhat when a poverty-stricken elderly couple sells their homestead to enable them to live frugally someplace on a meager income. But should we excuse or overlook the gluttony of someone in their mid-years trying to develop their property so they can sell out at an obscene profit, spend the rest of their life in quiet, relaxing retirement while the rest of us pay for the mess they left behind???
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Check out our Population and Growth Pages Learn more about the Wagley Creek (LID 97) disaster Learn more about the planned $3.5 million LID for North Wagley (on 132nd Street between Rice and Sultan Basin Roads) |