Some Facts About Growth

Figured I’d weigh in with some facts, to respond to recent comments, mostly about impact fees.

First, while I think impact fees are worth considering, I haven’t said they’re the greatest idea since sliced bread. There are other, probably better ways to find money to build schools and repair streets and fund parks and deal with growth’s costs to local government. Problem is, so far our elected officials aren’t looking at those other ways, either, or using tools they already have (primarily property tax increases) or reallocating existing money.

Second, yes, impact fees would require lengthy political effort. That’s one reason they may not be worth fighting for. Another option is some places are using is to adopt adequate public facility ordinances, which need no blessing from Raleigh. Under an APFO, developers can develop in areas where infrastructure’s adequate, or wait to develop until infrastructure catches up, or pay a fee toward creating the infrastructure.

Third, Charlotte-Mecklenburg Schools are not “in the toilet.” Test scores are rising, not sinking, for black, white and Hispanic students. Is that the only way to measure a good education? Of course not. But it’s the only way we have. CMS has some excellent schools, with excellent and hard-working teachers, delivering excellent educations. I’m tired of people acting as if those places don’t exist.

Fourth, there are no proposals before county commissioners or City Council to adopt impact fees. There’s a lot of talk about looking at new revenue options because of a belief that the property tax shouldn’t be the only mechanism with which to raise money. But so far there’s only vague talk.

Fifth, “almost all the new development uptown is because of tax policy and government subsidy.” Say what? Most development uptown is residential and gets no incentives. All over the U.S., urban living became “cool” again in the 1990s and a market arose that didn’t exist 25 years ago, or more likely, a market that existed all along was rediscovered, and with red-lining outlawed it was allowed to flower again.

Yes, the arena and the stadium got healthy boosts from public money. So did the Coliseum on Tyvola Road, by the way. So did the old Coliseum (now Cricket Arena) on Indy Boulevard back in the late 1950s. If you’re tracking subsidies, don’t overlook the outerbelt and its numerous, clogged-with-development interchanges – way more than are needed for transportation purposes. We all paid to build those interchanges, in order to enrich developers and landowners. Remember, too, that Charlotte-Mecklenburg Utilities plans to put sewer service in every square inch of the county, paid for by all off us who pay water-sewer fees. Talk about incentives to develop! Without sewer and water, no development. You may not like government spending that lures development, but it’s been going on for years, all over the place.

Last, “It’s well documented that new urbanism gets legs not because people want to live in urban areas (in fact this year’s realtor survey and recent census survey say the exact opposite) but because of financial and tax policy incentives.” Any of you new urbanist developers out there want to set the record straight?

Impact Fees: Public Loves ‘Em

An anonymous poster (and sorry, poster-named-Rick, but it doesn’t bug me if they’re anonymous) had this to say about my March 27 post “Developers 1 – Everyone Else, O” (see below): “Impact fees get no traction with the public because we know we pay TOO much already and GovCo makes too many bad decisions.”

Hate to break it to you, but a recent survey just released found overwhelming support for impact fees. Now, the fees may or may not make sound public policy – that’s a whole other question. But they’re enormously popular with the public.

The poll results, released Friday, were plastered all over the Observer’s front page. If you missed Saturday’s Observer, here’s a link.

It was taken by MarketWise, for Mecklenburg County’s School Building Solutions Committee, a.k.a. the Martin Committee, chaired by Republican former Gov. Jim Martin, who, before he was governor was a county commissioner, then a U.S. House representative. The survey was Feb. 21-March 17, and involved 623 phone interviews.

Respondents were asked about four possible alternative revenue sources, worded exactly this way: increasing local sales tax, increasing cigarette tax, a tax on the sale of land, charging impact fees to developers.

On page 30 of the PowerPoint presentation, you’ll find an interesting graph showing their replies: 79 percent of respondents who voted in last fall’s school bond referendum, and 76 of those who hadn’t voted, said they’d support impact fees.

The way it’s worded makes it sound as if developers paid the fees and didn’t pass the costs on to homebuyers, which is what’s more likely to happen, although not always. After all, to compete on price, developers sometimes will eat a percentage of the impact fee costs, or choose to lower costs in some other way.

Anyone who isn’t planning on buying a new house is going to think impact fees are a great idea, and a sales tax – which everyone would pay – is a crummy idea. The poll results show exactly that: 25 percent of voters and 23 percent of nonvoters liked the sales tax idea. The tax on the sale of land (also known as a real estate transfer tax) got support from 39 percent of voters, 36 percent of nonvoters, and the increase in cigarette taxes got 76 percent support among voters and 79 percent support among nonvoters.

Reality checks: The cigarette tax is a state tax, not locally adopted. All three other local option taxes require the N.C. General Assembly to give its blessing.

If you’re among the many who think impact fees are a good idea, don’t be beating up on your school board members. They have nothing to do with impact fees. They can’t levy any taxes at all.

Find your state representatives in the N.C. House and N.C. Senate (Here’s a link to help you find your representatives. You’ll need your Zip Code-plus-four) and beat up on them. THEN call Charlotte City Council members and Mecklenburg County commissioners . They’re the ones who’d have to adopt the fees if the state allowed it. And they’d surely have to lobby the state, too, just for permission.

And if you don’t like impact fees, tell them that, too. I’d rather they be listening to the whole realm of public opinion than just to the developers.

Trains to Planes? Not Here

The planning commissioners practically pounced on the CATS guy.

CATS Deputy Director John Muth had just finished briefing the Charlotte-Mecklenburg Planning Commission on Monday on the status of the transit system. (Headlines: South Corridor trains running by fall 2007, many decisions to be made summer and fall on which corridor goes next, whether the West corridor gets light rail, bus rapid transit or streetcars, etc.)

Then several commissioners began suggesting to Muth oh so nicely that CATS really, really, really needs to make sure the West transit line goes to the airport.
Because right now, with the still-tentative plans, it wouldn’t. The likely route would go down Wilkinson Boulevard, not to the airport terminal.

Planning commissioner George Sheild, a developer, probably summed up the sentiments of many others: “I think a really good rail connection from the airport to downtown would do more for Charlotte than the whole South Corridor.”

Anyone who’s ever traveled in or out of a city with good transit connections to its airport – Washington, London, even St. Louis – knows how easy it is to arrive, walk down the hall or down some stairs, and get into a train or bus or tram. Cheaper, too.

Muth was pleasant, but noncommittal.

There’s just one problem with everyone’s wishes on this: The federal money for transit comes with strings attached. One string – more like a rope – is that the project has to meet a cost-effectiveness test. The feds set the rules for how you calculate cost-effectiveness, involving projected ridership, time saved by riders, etc. Those federal rules got even stricter in the past year.

The early numbers on the West Corridor showed light rail to the airport wouldn’t pass the cost-effectiveness test. That’s because not enough people go to and from the airport. Most of the people using our airport – a longtime US Airways hub – are just switching planes.

Muth said some new pots of federal transit money are available for smaller-scale projects, and CATS is looking at whether it might be able to use those pots to fund streetcars in the West corridor as well as the “Streetcar” project it plans for Trade Street and out Central Avenue. Streetcars cost less to build, because they run in the street, but they’re slower – because they run in the street, with the other traffic. And the federal money in those newer pots don’t pay as big a percentage of costs.

Transit to the airport? I’m all for it. I hope CATS and the airport and the city can figure out how to make it happen.

But I don’t think it’s likely, at least not in the next 20 years.

Trains to Planes? Not Here

The planning commissioners practically pounced on the CATS guy.

CATS Deputy Director John Muth had just finished briefing the Charlotte-Mecklenburg Planning Commission on Monday on the status of the transit system. (Headlines: South Corridor trains running by fall 2007, many decisions to be made summer and fall on which corridor goes next, whether the West corridor gets light rail, bus rapid transit or streetcars, etc.)

Then several commissioners began suggesting to Muth oh so nicely that CATS really, really, really needs to make sure the West transit line goes to the airport.
Because right now, with the still-tentative plans, it wouldn’t. The likely route would go down Wilkinson Boulevard, not to the airport terminal.

Planning commissioner George Sheild, a developer, probably summed up the sentiments of many others: “I think a really good rail connection from the airport to downtown would do more for Charlotte than the whole South Corridor.”

Anyone who’s ever traveled in or out of a city with good transit connections to its airport – Washington, London, even St. Louis – knows how easy it is to arrive, walk down the hall or down some stairs, and get into a train or bus or tram. Cheaper, too.

Muth was pleasant, but noncommittal.

There’s just one problem with everyone’s wishes on this: The federal money for transit comes with strings attached. One string – more like a rope – is that the project has to meet a cost-effectiveness test. The feds set the rules for how you calculate cost-effectiveness, involving projected ridership, time saved by riders, etc. Those federal rules got even stricter in the past year.

The early numbers on the West Corridor showed light rail to the airport wouldn’t pass the cost-effectiveness test. That’s because not enough people go to and from the airport. Most of the people using our airport – a longtime US Airways hub – are just switching planes.

Muth said some new pots of federal transit money are available for smaller-scale projects, and CATS is looking at whether it might be able to use those pots to fund streetcars in the West corridor as well as the “Streetcar” project it plans for Trade Street and out Central Avenue. Streetcars cost less to build, because they run in the street, but they’re slower – because they run in the street, with the other traffic. And the federal money in those newer pots don’t pay as big a percentage of costs.

Transit to the airport? I’m all for it. I hope CATS and the airport and the city can figure out how to make it happen.

But I don’t think it’s likely, at least not in the next 20 years.

Developers, 1 — Everyone Else, 0

At bottom the problem with what happened Friday wasn’t even that the developers’ lobby – as usual – got to tell a group of elected officials why, in their opinion, adopting impact fees to help pay for Mecklenburg County schools would lead to economic collapse and quite possibly the end of life as we know it. (I’m exaggerating less than you might think.) The problem was that most of the rest of the citizenry, many of whom think the county is insane not to have impact fees, didn’t get equal time.

The song and dance from the developers was as inevitable as the azaleas popping into bloom in spring. The intergovernmental planning committee that’s been looking at growth and schools and trying to devise recommendations had, months back, included the words “impact fees” and “adequate public facility ordinance” on a long list of recommendations to consider.

I knew the developers’ lobby doesn’t even want those words to surface on the committee’s list of options to consider. Friday, it got to make its case.

The Planning Liaison Committee meets monthly at the inhospitable hour (at least for night-owl journalists) of 7:45 a.m. Its members are two or three representatives each from the city-county planning commission and all the elected bodies in Mecklenburg County.

I’m interested in how this community deals with – or doesn’t – rapid growth that has outstripped its ability to build schools, so I’ve been attending fairly regularly for two years. Usually I’m an audience of one. But when they started mentioning impact fees, Mary Thomsen and Tim Morgan of the Real Estate and Building Industry Coalition began showing up.

Friday the room was packed. The PLC had invited REBIC, the Charlotte Chamber’s land use committee and the local chapter of the American Institute of Architects to offer thoughts. (Aside: The architects’ presentation was organized, thoughtful and deserves more publicity than I’m giving it in this posting.)

Key fact coming: The PLC has no authority to do anything. They just talk, and suggest that members take ideas or recommendations back to their respective governing bodies. So essentially, this was a way to give REBIC and the Chamber an audience that you and the rest of the public didn’t get and won’t.

Mark Cramer, REBIC’s executive director, showed a cheery video from the state homebuilders’ lobby. (“Does homebuilding actually pay for itself?” the video intones. “The answer is an emphatic yes,” and the screen shows a “YES!!” in large capital letters.)

REBIC contends impact fees raise the cost of housing so much they drive away affordable housing and send development to outlying counties, which is a legitimate issue that ought to be considered during any pros-and-cons discussion. (So, I might add, should the possibility of structuring impact fees so they apply differently to apartments and smaller houses, so low-income families aren’t as seriously affected.)

And so should the concept that having a crumbling, overcrowded school system will drive away just as much development – and be just as bad for lower-income families – as slightly higher home prices will.

Here’s the real problem: Building enough schools will take money and it must come out of somebody’s pocket. The questions for the community ought to be: Whose pocket, and how much, and what is the fairest and – important point here – most politically feasible way to find the money?

All the options have pros and cons, and they should all be discussed openly. The developers should not be allowed to pull off the table the one or two options they happen not to like.

I’m not even sure impact fees are the best way to go. A land transfer tax will raise more money and be more broadly based. But developers and real estate lobbyists hate that one, too.

The elected officials treat the developers’ lobby and the Chamber as if their opinions are more important than everyone else. But we all have skin in this game, not just REBIC.

Raise your hand if your kids or grandkids go to an overcrowded school. Raise your hand if your kids’ school is in terrible need of renovation and repair. Raise your hand if you moved here from a place where impact fees are routine and the place hasn’t suffered from total economic collapse. Raise your hand if you think Mecklenburg County should consider them as a way to raise a bit of money to build more schools.

Guess what? You are cordially NOT invited to make a presentation to the Planning Liaison Committee. They’re too busy hearing from the developers.

Developers, 1 — Everyone Else, 0

At bottom the problem with what happened Friday wasn’t even that the developers’ lobby – as usual – got to tell a group of elected officials why, in their opinion, adopting impact fees to help pay for Mecklenburg County schools would lead to economic collapse and quite possibly the end of life as we know it. (I’m exaggerating less than you might think.) The problem was that most of the rest of the citizenry, many of whom think the county is insane not to have impact fees, didn’t get equal time.

The song and dance from the developers was as inevitable as the azaleas popping into bloom in spring. The intergovernmental planning committee that’s been looking at growth and schools and trying to devise recommendations had, months back, included the words “impact fees” and “adequate public facility ordinance” on a long list of recommendations to consider.

I knew the developers’ lobby doesn’t even want those words to surface on the committee’s list of options to consider. Friday, it got to make its case.

The Planning Liaison Committee meets monthly at the inhospitable hour (at least for night-owl journalists) of 7:45 a.m. Its members are two or three representatives each from the city-county planning commission and all the elected bodies in Mecklenburg County.

I’m interested in how this community deals with – or doesn’t – rapid growth that has outstripped its ability to build schools, so I’ve been attending fairly regularly for two years. Usually I’m an audience of one. But when they started mentioning impact fees, Mary Thomsen and Tim Morgan of the Real Estate and Building Industry Coalition began showing up.

Friday the room was packed. The PLC had invited REBIC, the Charlotte Chamber’s land use committee and the local chapter of the American Institute of Architects to offer thoughts. (Aside: The architects’ presentation was organized, thoughtful and deserves more publicity than I’m giving it in this posting.)

Key fact coming: The PLC has no authority to do anything. They just talk, and suggest that members take ideas or recommendations back to their respective governing bodies. So essentially, this was a way to give REBIC and the Chamber an audience that you and the rest of the public didn’t get and won’t.

Mark Cramer, REBIC’s executive director, showed a cheery video from the state homebuilders’ lobby. (“Does homebuilding actually pay for itself?” the video intones. “The answer is an emphatic yes,” and the screen shows a “YES!!” in large capital letters.)

REBIC contends impact fees raise the cost of housing so much they drive away affordable housing and send development to outlying counties, which is a legitimate issue that ought to be considered during any pros-and-cons discussion. (So, I might add, should the possibility of structuring impact fees so they apply differently to apartments and smaller houses, so low-income families aren’t as seriously affected.)

And so should the concept that having a crumbling, overcrowded school system will drive away just as much development – and be just as bad for lower-income families – as slightly higher home prices will.

Here’s the real problem: Building enough schools will take money and it must come out of somebody’s pocket. The questions for the community ought to be: Whose pocket, and how much, and what is the fairest and – important point here – most politically feasible way to find the money?

All the options have pros and cons, and they should all be discussed openly. The developers should not be allowed to pull off the table the one or two options they happen not to like.

I’m not even sure impact fees are the best way to go. A land transfer tax will raise more money and be more broadly based. But developers and real estate lobbyists hate that one, too.

The elected officials treat the developers’ lobby and the Chamber as if their opinions are more important than everyone else. But we all have skin in this game, not just REBIC.

Raise your hand if your kids or grandkids go to an overcrowded school. Raise your hand if your kids’ school is in terrible need of renovation and repair. Raise your hand if you moved here from a place where impact fees are routine and the place hasn’t suffered from total economic collapse. Raise your hand if you think Mecklenburg County should consider them as a way to raise a bit of money to build more schools.

Guess what? You are cordially NOT invited to make a presentation to the Planning Liaison Committee. They’re too busy hearing from the developers.

He spoke for the trees

I popped in at the City Council’s zoning meeting last Monday night. When you do that, you almost always stumble over some great tidbit.

Monday’s came during a public hearing on a request to rezone about 5 acres off Tuckaseegee Road for an office and a self-storage facility. The planning staff was recommending against the rezoning, because it doesn’t match the plan for the area. One area of contention was that the planners want the developers to save 17 percent of the trees on the site. The developers say that isn’t feasible.

At that point council member Michael “The Lorax” Barnes spoke for the trees. He said he found it unacceptable to disregard the city’s tree-save requirements and suggested the developer consider options for mitigating the damage, such as planting trees elsewhere. It’s a novel idea – who knows if it’s workable? – and I loved hearing a politician offer such a thought.

Then the developers’ lobbyist, Bob Young, spoke up: “I like trees,” he avowed. “We all like trees.”

Well, yes.

It reminded me of when the city, in 1998, was proposing requiring developers to build sidewalks on both sides of subdivision streets, a proposal that drew sharp opposition from the Real Estate and Building Industry Coalition. They just loved sidewalks, of course. But at one council meeting, after pleas for good sidewalks on behalf of children, the elderly and people in wheelchairs, REBIC executive Mark Cramer warned council: “You can have too much of a good thing.”

Like trees, I suppose.

House Bloat

Today’s topic: Bloated houses.

It’s on my mind for a couple of reasons. First, the City Council on Monday night had a public hearing on whether to created a local historic district for the Hermitage Court area of Myers Park. The majority of the property owners on the street support the historic district, which would bring the possibility of up to a year’s wait if someone wanted to demolish a home. So it wouldn’t stop the teardown frenzy, but might slow it some. And Myers Park is being ravaged by teardowns. Consider the “starter castle” (above) on Queens Road West.

But here’s the other reason it’s on my mind. A friend sent me this link to something the alternative weekly Austin Chronicle has put online: Its Bloat-O-Meter. People send in photos and then online voters rate it 1 to 10, a 10 being “McMansion.”

What’s a McMansion? We all have different definitions, I suppose. To me it’s a pretentious new house built in a place where it’s too big for its neighbors, in many cases too big for the lot, and typically with a national-franchise predictability to its architecture (using the term loosely). Just being new and ugly doesn’t make something a McMansion. Being oversized and too show-offy are key ingredients.

I confess to having heightened sensitivity, because I live in a neighborhood where ’50s ranch houses are being torn apart, house by house, and replaced by houses with upwards of 6,000, or even 8,000 square feet. To my knowledge, only one of the families moving into the big new houses has enough kids to truly need that many bedrooms.

The construction has been unrelenting for five years. Builders rip out huge trees. They allow eroding dirt to pollute our creek. Construction trucks block the street, crack the pavement and gouge tracks in our lawns. While our property value has soared, that’s only worth something to us if we sell our house and move. Meanwhile, it means our property taxes have also soared. We used to think we could retire there. No more. The taxes will drive us out.

But enough about me. Take a look at the Austin Bloat-O-Meter. Don’t you think our McMansions can beat their McMansions any day of the week?

House Bloat

Today’s topic: Bloated houses.

It’s on my mind for a couple of reasons. First, the City Council on Monday night had a public hearing on whether to created a local historic district for the Hermitage Court area of Myers Park. The majority of the property owners on the street support the historic district, which would bring the possibility of up to a year’s wait if someone wanted to demolish a home. So it wouldn’t stop the teardown frenzy, but might slow it some. And Myers Park is being ravaged by teardowns. Consider the “starter castle” (above) on Queens Road West.

But here’s the other reason it’s on my mind. A friend sent me this link to something the alternative weekly Austin Chronicle has put online: Its Bloat-O-Meter. People send in photos and then online voters rate it 1 to 10, a 10 being “McMansion.”

What’s a McMansion? We all have different definitions, I suppose. To me it’s a pretentious new house built in a place where it’s too big for its neighbors, in many cases too big for the lot, and typically with a national-franchise predictability to its architecture (using the term loosely). Just being new and ugly doesn’t make something a McMansion. Being oversized and too show-offy are key ingredients.

I confess to having heightened sensitivity, because I live in a neighborhood where ’50s ranch houses are being torn apart, house by house, and replaced by houses with upwards of 6,000, or even 8,000 square feet. To my knowledge, only one of the families moving into the big new houses has enough kids to truly need that many bedrooms.

The construction has been unrelenting for five years. Builders rip out huge trees. They allow eroding dirt to pollute our creek. Construction trucks block the street, crack the pavement and gouge tracks in our lawns. While our property value has soared, that’s only worth something to us if we sell our house and move. Meanwhile, it means our property taxes have also soared. We used to think we could retire there. No more. The taxes will drive us out.

But enough about me. Take a look at the Austin Bloat-O-Meter. Don’t you think our McMansions can beat their McMansions any day of the week?

East, West Charlotte treated unfairly?

Not surprising, really, but the two most affluent City Council districts, 6 and 7, have only a tiny proportion of the city’s federally subsidized Section 8 voucher rentals. The vouchers help low-income households pay for rents they otherwise couldn’t afford.

The breakdown of where the vouchers go has been eagerly sought by East Charlotte neighborhood activists, among others, who think their part of town holds a disproportionate share of government-funded affordable housing. The Observer’s Karen Cimino acquired the breakdown – which is public information – from a GIS analyst in the city’s Neighborhood Development department.

Her article Thursday in the Neighbors of University City section ought to generate some interesting talk.

(Cimino tells me her earlier requests to the Charlotte Housing Authority for Section 8 vouchers sorted by Zip code still haven’t produced the data. Guess it takes a City Council member – in this case District 4 rep Michael Barnes, who asked city staff for it – to spur some public agencies to make public information public.)

The breakdown is by City Council district, which makes it a bit tough to analyze in an East Charlotte v. West Charlotte v. South Charlotte kind of way. That’s because District 2, for instance, covers chunks of what would be considered West Charlotte as well as University City (northeast Charlotte); District 5 covers parts of East Charlotte and South Charlotte; and District 1 covers all the way from Dilworth to chunks of East Charlotte.

But the numbers are stark: The affluent, predominantly white District 7 (far south Charlotte) has 34 Section 8 vouchers. District 6 (closer-in south Charlotte) has 193. Even their combined total of 227 is dramatically less than any other single district.

District 3 (generally west and southwest Charlotte) leads with 921. District 2 (generally northwest, north and northeast, and with more than 5,000 more housing units) is next with 917. The predominantly east Charlotte District 5 has 757, with District 1 close behind at 754. (Note that District 5 holds 4,500 fewer housing units than District 1). District 4, which is most of University City, has 588.

Some caveats: Landlords have to voluntarily apply to receive Section 8 vouchers from renters, so those in high-demand, more affluent parts of town have little incentive to enroll in the program.

Federal policy supposedly is to try to spread Section 8 housing around, so as not to overburden one neighborhood. It doesn’t seem particularly effective, from what the numbers show. The city says it wants to do the same. But the marketplace, left to its devices, isn’t accomplishing that.

Why care? Because when too much low-income housing gets too concentrated, property values throughout that area drop, undercutting the the city tax base. And that means higher taxes for all of us.

Experience has shown that a small percentage of affordable housing units sprinkled lightly through affluent areas don’t affect property values. Why doesn’t the city require all housing developments to include a small percentage of affordable units? Other cities do this, and it works well.

It prevents the stark economic segregation we’re now seeing in Charlotte.