Anyway, I love returning to the wired world and reading in a magazine about "Sustainable Erie Inc." Anyone know the principals? I see this excerpt from ColoradoBiz Magazine:
"It’s certainly not sustainable to be so heavily reliant on construction to pay the bills. That obviously can’t continue forever," says Brendan Ruiz, president of Sustainable Erie Inc., a nonprofit interest group.
Erie’s budget estimates 2007 tap/impact fees will have plunged by half in just two years, to $13.1 million in 2007, from $17.2 million in 2006 and $26 million in 2005. That $26 million represented almost 55 percent of all of Erie’s revenues, while this year’s projected $13.1 million in tap/impact fees would add up to just 26 percent of this year’s $50.4 million in revenue.
The housing market meltdown that's already started will stagnate any future residential growth anyway; if commercial development hasn't seen a critical mass to locate in/next to yet they probably aren't going to be rushing in any time soon. Erie is caught in the inevitable position of relying on impact fees yet said fees make them less attractive to dwindling interest. Doh!
1 comment:
Tap/impact fees are half what they were, and respresent half the percentage they once did, but the total revenue stayed the same? If my math skills are working, it appears Erie has been able to replace dwindling tap/impact fees with other sources.
Depending on what those other sources are, they may be able to continue to replace dwindling tap/impact fees.
In the past several years commercial development has not waited for critical mass before building. Larkridge is a prime example of a commercial development built before it's time. Not high traffic volumes in those stores yet. But, they wanted to pre-empt other developers.
These pre-emptive strikes were easy to do when credit was easily available. Let's see what impact tighter credit has on this.
Also easier to justify building when local towns help subsidize the development with fee waivers, rebates, etc.
The fact Erie is not falling all over themselves to attract commercial development is to be commended. They may just be building a more sustainable budget in Erie than some of the surrounding cities.
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