Growth management has created high costs for real estate in Washington. With a less robust employment market, and the potential migration of large employers like Boeing (can Microsoft be far behind?) out of state, we could be in for some slow times in Washington State. But, we’ve gotten the government that has been voted for, so the public will have to change their minds on priorities before we see change.
Dan Beardslee of Erlandsen Engineering has been writing some great articles on impact fees, funding infrastructure and potential solutions in the Wenatchee Business Journal. Unfortunately, the articles are not available on their web site so I cannot link to them. Dan runs the local office in Chelan and often contributes
Yesterday, there was an Associated Press article about states and local governments dumping impact fees during the recession. They’re finding impact fees are a big deterrent to construction, which is an industry that is one of the country’s largest employers.
Average 2008 fees were $1,520 in Texas; California’s average was $19,536, up 38 percent from 2004 excluding sewer and water fees, according to a 185-city survey by Duncan Associates, an Austin, Texas-based planning consultancy.
The trend to suspend or lower fees has prompted debate over whether spurring a construction resurgence is more important than forcing new businesses or residents to pay upfront for services, or if these communities are laying the groundwork for haphazard development and higher taxes for current residents. – Associated Press
Chelan County is looking at implementing a transportation impact fee this year. The City of Chelan is likely increasing its impact fees and adding new ones this year. So, while much of the rest of the country is trying to help their local economies recover by reducing or eliminating impact fees, our local governments are raising theirs!
According to www.impactfees.com the increase in impact fees in Washington State, on average, from 2004 to 2008 was a whopping 63%. Is the the change you were hoping for?
