INC NEWS - Premise of development industry's column isn't so simple

[John Schelp]

This week, the development industry wrote a column in
the Herald-Sun saying we need to find a "quicker way"
to get projects through because "new development
creates much-needed property tax revenue for our city
and county governments" (H-S, 5/22/08).

Really? Were it so simple... 

New residential development doesn't pay for itself.

Here's text from a Wake County/TJCOG/NCSU report...

"The ratio for the residential sector is 0.65,
implying that for each dollar in property tax and
other revenues generated by residential land uses, the
county spends $1.54 to provide services supporting
those land uses. In other words, the residential
sector is on balance a net user of local public
finances... This contradicts claims that are sometimes
made that residential development is a boon to county
finances due to its expansion of the property tax
base."

You can read the full report here...

http://www.onencnaturally.org/pages/obj/WAKE-COCS.pdf

I'd only add that the more expensive the house, the
better is the revenue/expenditure ratio.
Unfortunately, the logical conclusion of many would be
to build more Macmansions while discouraging
affordable housing. (Another reason why we need a good
mix of housing types in Durham.)

Finding a "quicker way" to sprawl our way into the
future won't address our growing problems with
congested roads and kids going to school in trailers. 

Faster sprawl will only make things worse.

best,
John