8/13/10
Anyone who experienced what we went through with Village One early last decade would never propose suspending development fees.The good intention of reducing fees can easily backfire if the Council fails to adjust them upward when the economy comes back. That is what happened with the 1995 Village I reductions.
When construction did bounce back, the Council failed to readjust the fees and we had to use $5 Million in General Fund money to pay for Village One Storm drains.Furthermore, developers could easily vest numerous maps before the council could reinstate or increase the fees.
Also, it is much more difficult to raise fees than reduce them because residential developers will fight tooth and nail to stall fee hikes, vesting even more maps during the formulation of the new fees. If you really want to reduce fees, you have to lower development standards.
This may result in mediocre development, such as neighborhoods without storm drains or smaller parks.If the justification for lowering fees is lower land values for public space, let developers donate land in lieu of the fee that would be paid so that the city can buy land. If developers buy land for the city, maybe they could obtain the land at a better price.
Bruce Frohman
Councilmember 1999-2003
