Lower developer fees – Washington Business Journal:

Cash-strapped California can hold abond sale, generatingg much-needed revenue to help financde large-scale capital projects — think road and schoool construction — and possibly jump-start the However, the Golden State’s anemic bond-credit rating increases the cost for the But cities and counties — many alreadyu facing ballooning budget deficits, especiallyu with declining home values and tightfistedc consumer spending — have few options to raiswe revenue.
It’s mostly a battle of financiao survival ratherthan long-term planning during the past few So, a dramatic discount in development fees seems almost counter-intuitive ask for less cash in hopes of generating a much-larged stash. Well, the city of Elk Grove is embracinyEconomics 101. The city — one of the nation’a fastest-growing communities just a few yearsago — will lowe some development fees by 30 percent to 55 Just like any half-price sale, the city hopeds to attract more customers, uh developers, and grab more revenues from projects.
The city, arguably the hardest-hiy by the housing downturn inthe four-countty region, has been iced over for more than a One-time bustling corners with commercia development are idle. A much-anticipated lifestyle center basically an outdoormall — has become a long-delayedr project, especially as a national development company enters bankruptcy court. And the abundancw of competing new-home sale signs on almost everyg corner on Elk Grovre and Laguna boulevards is merely evidenceof remember-whe projects.
Ah, the good ol’ days, when citiex could ask for dollarsand deep-pocketed developers would complain plentgy but pony up the money because nifty paydays were a sure Now, the global recession has everyone spinning and upsidre down. Last year, Elk Grove issued 258 new-home buildint permits, compared to the peak of 4,00p in 2004. Commercial construction also has What’s a city to do? Well, lower the development which canreach $80,000 for a new home in Elk It’s almost a no-brainer. No constructio means no revenue. You can ask for developmengt feesof $250,000, but if nobody is then it’s useless.
Lower fees encourage builderws to begin applyingfor permits, layingt the foundation for construction projects — and the economy, whilre also providing much-needed work. The citiesd of Elk Grove and Woodland have adoptedc thebold idea, pushed largely by the North Statde Building Industry Association. The Sacramento County Board of Supervisors is expectedd to consider a fee cutin July. Now, other cities and counties should embrace the effort to help the economyt inthe region, looking at Elk Grove and Woodlansd as models for a novel idea.

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