Last week, Forbes Magazine released ten US cities that it deems “recession proof,” listing Raleigh at number five. Meanwhile, at yesterday’s Planning Commission meeting in Raleigh, commission member and Real Estate agent, Waheed Haq was quoted saying “We are practically in recession,” as the planning commission voted down raising impact fees 8-4.
The fact is simple: Raleigh is in demand, and growing at a “recession-proof” rate. Raleigh is the third fastest growing metro area in the entire country. We are the number one place to start a business, according to Forbes, and on many lists, one of the best cities to live. Raising impact fees will help pay for Raleigh’s record-breaking growth trends. Bigger fees mean better parks and roads, and will attract more people to our area: Raleigh is in such high demand, people will pay whatever it takes to build, and live here. It’s not as if we’re struggling with impact fees; Marah Chambliss of the planning commission was quoted by the N&O as saying, “If you look at the neighboring communities, they are all well above us. We are a deal. Raleigh is a deal.”
It has been proven time and time again that impact fees don’t affect growth. Especially in a place like Raleigh. And growth has been booming--builders are building like we are at a peak. The Forbes article says about Raleigh:
Stable home prices and growth across the different sectors of its economy have kept Raleigh strong. In the last 12 months, all industries measured by the U.S. Department of Labor have grown except for the city’s small information sector.
The commission is weighted with Real Estate and building constituents. These members aren’t looking to help the city, they are looking to help their industry. What’s more funny about Mr. Haq’s statement is that Agents have bragged that 2008 has been better than 2007. We aren’t in anything like a recession.
Lunsford Lane has recently showed how Planning Commissions member, and life-long (He worked for Reuters before his Dad hired him- see below.) developer, Brad Mullins behavior to deceitful and alludes to government collusion. Lunsford quotes the Koopman from the March 18th City Council Meeting:
“Mr. Mayor, I would like to enter a comment into the record. Two weeks ago during the last City Council meeting I moved to approve a specific zoning case and I was given incorrect information. And for the record I want to just mention my displeasure with that situation because we are a part time Council, and if we cannot rely on the information given to us and then make decisions based on that we’re hurting the Citizens.”
Mr. Mayor tried to end it there, but Mullins was not amused. Mullins said yeah, he did give incorrect information, so what, if the Council didn’t like it, it could take another vote. The one thing that he was careful not to say was that he was sorry. Not a word, not even a hint of apology. The Mayor was quick to dismiss the whole incident as minor, and said that the Council doesn’t revote.
And that was that.
And for the record, the official minutes of the meeting say, “Planning Commission Chairman Brad Mullins admitted the Planning Commission had made a mistake and apologized for the error.” He did no such thing (the video doesn’t lie).
Whose side is this government on? Why all the deceit? Why do existing home owners have to be saddled with the cost of new homes? Observationally--building is happening at an amazing pace--have you been to places that aren’t growing like Raleigh? The market has to be good when tiny old neighborhoods have a dozen new construction projects happening on any given street. We don’t need to incentivize new building, and impact fees are the best way to pay for the growth. Builders want you to believe these impact fees would hurt our market. But other NC counties that have implemented Impact Fees and transfer taxes and have faired just fine.
Despite allegations from homebuilders and realtors, these counties have not suffered adversely from the implementation of these taxes. For each of these counties,
- home values remain affordable,
- job and retail growth remains robust,
- residential growth is vibrant,
- schools are benefiting immensely,
- property taxes remain stable.
These counties have benefited tremendously from the transfer tax because they have embraced three key principles: 1) taxpayer protection through tax limitation; 2) multipronged efforts aimed at Economic Development, 3) continuous monitoring of the effects of the local tax structure on citizens.
Later on that Same Report Concludes:
Adhering to the three Guiding Principles has allowed these counties to contend with the challenges of growth while simultaneously exhibiting sound fiscal stewardship.
1. Taxpayer Protection through Tax Limitation
2. Focus on Continued Economic Development
3. Maintain cognizance of total tax pictureIt is evident that North Carolina’s experience with the land transfer tax shows this is a valuable tool for counties. Because the revenues have been targeted to infrastructure development and because officials have adhered to the principles above, concerns that transfer taxes inhibit growth, lead to skyrocketing home prices and unduly burden homeowners can be allayed.
A balanced approach to taxation clearly benefits elderly citizens and those on fixed incomes by lessening the pressure on property taxes. This allows these citizens to remain in their homes without fear of losing them to increasing tax rates or tax values.
But then again, what does Waheed care for old Raleigh residents? The tiniest bit of friction has this guy scared in one of the strongest real-estate markets in the country. Don’t believe the hype.