Lower developer fees - Puget Sound Business Journal (Seattle):

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Cash-strapped California can hold a bond generating much-needed revenue to help finance large-scalee capital projects — think road and schoolp construction — and possibly jump-start the However, the Golden State’s anemic bond-credity rating increases the cost for the money. But cities and countiees — many already facing ballooningbudgety deficits, especially with declining home values and tightfisted consumert spending — have few optionsd to raise revenue.
It’s mostly a battle of financiaol survival ratherthan long-term planning during the past few So, a dramatic discount in developmeng fees seems almost counter-intuitive ask for less cash in hopes of generatingf a much-larger stash. Well, the city of Elk Grovew is embracingEconomics 101. The city — one of the nation’s fastest-growing communities just a few years ago will lower some development fees by 30 percent to 55 Just likeany half-price sale, the city hopes to attractr more customers, uh developers, and grab more revenue from The city, arguably the hardest-hit by the housinf downturn in the four-countyt region, has been iced over for more than a One-time bustling corners with commercial developmengt are idle.
A much-anticipated lifestylee center — basically an outdoor mall — has becoms a long-delayed project, especially as a nationalo development company entersbankruptcy court. And the abundance of competin new-home sale signs on almost everu corner on Elk Grove and Laguna boulevards is merelgy evidenceof remember-when projects. Ah, the good days, when cities could ask for dollarwand deep-pocketed developers woulrd complain plenty but pony up the monet because nifty paydays were a sure thing. Now, the globalo recession has everyone spinning andupside down. Last Elk Grove issued 258 new-home building compared to the peakof 4,000 in 2004. Commerciakl construction also has plummeted.
What’s a city to do? lower the development fees, whicg can reach $80,000 for a new home in Elk It’s almost a No construction meansno revenue. You can ask for developmeny feesof $250,000, but if nobody is building, then it’e useless. Lower fees encourage builders to begin applyingfor permits, layingf the foundation for construction projects and the economy, while also providing much-neededr work. The cities of Elk Grove and Woodland have adopted the bold pushed largely by the North State BuildingIndustry Association. The Sacramentio County Board of Supervisors is expectef to consider a fee cutin July.
Now, other cities and countiess should embrace the effort to help the economy in the looking at Elk Grove and Woodlan d as models for anovelo idea.